– Record Quarterly Revenue, Driven In-Part by Ramp of New SuperSuite Supply Chain Business –
– iPower Management to Host Conference Call Today at 4:30 p.m. Eastern Time –
DUARTE, Calif., Nov. 14, 2023 (GLOBE NEWSWIRE) — iPower Inc. (Nasdaq: IPW) (“iPower” or the “Company”), a tech and data-driven online retailer and supplier of consumer home and garden products, as well as a provider of value-added ecommerce services, today announced financial results for its fiscal first quarter ended September 30, 2023.
Fiscal Q1 2024 Results vs. Fiscal Q1 2023 (unless otherwise noted)
- Total revenue increased 2% to $26.5 million compared to the Company’s record $26.0 million in Q1 2023.
- Gross profit increased 18% to $11.8 million, while gross margin increased 600 bps to 44.4% compared to 38.4%.
- Net loss attributable to iPower improved 69% to $1.3 million or $(0.04) per share, compared to net loss attributable to iPower of $4.2 million or $(0.14) per share.
- As of September 30, 2023, net debt (total debt less cash) was reduced by 48% to $4.3 million compared to net debt of $8.1 million as of June 30, 2023.
“We continued to generate revenue growth during the quarter, surpassing the challenging comp against our record revenues in fiscal Q1 2023,” said Lawrence Tan, CEO of iPower. “Sales of our non-hydroponic products remained strong at more than 75% of revenue, largely driven by categories such as fans, shelving and outdoor patio furniture. Business generated by our SuperSuite supply chain partnerships has reached an annualized revenue run-rate of approximately $7.0 million and continues to gain momentum as we work through our growing pipeline of prospective partnerships. We are pleased with the early financial results as well as the invaluable insights that we are gaining from this accelerating area of our business.”
iPower CFO, Kevin Vassily, added, “As highlighted last quarter, we have continued to drive reductions to our supply of higher cost inventory and are now beginning to realize the benefit of our efforts through gross margin expansion, which has reached our highest level in nearly two years. Additionally, we made material improvements to our capitalization during the quarter, with net debt decreasing 48% as compared to the close of fiscal 2023. These actions place us in a good position to capitalize on prospective acquisition opportunities as we continue to drive growth and target a return to profitability in fiscal 2024.”
Fiscal First Quarter 2024 Financial Results
Total revenue in the fiscal first quarter of 2024 increased 2% to $26.5 million as compared to $26.0 million for the same period in fiscal 2023. The increase was driven in-part by growth from the Company’s SuperSuite supply chain offerings, which is generating approximately $600,000 in revenue per month, as well as favorable seasonality in the Company’s product mix.
Gross profit in the fiscal first quarter of 2024 increased 18% to $11.8 million as compared to S10.0 million in the same quarter in fiscal 2023. As a percentage of revenue, gross margin increased 600 basis points to 44.4% compared to 38.4% in the year-ago period. The increase in gross margin was primarily driven by a favorable product mix.
Total operating expenses in the fiscal first quarter of 2024 improved 11% to $13.0 million compared to $14.6 million for the same period in fiscal 2023. The decrease was driven primarily by a $3.1 million decrease in impairment loss on goodwill, partially offset by increased selling and fulfillment expenses.
Net loss attributable to iPower in the fiscal first quarter of 2024 improved to $1.3 million or $(0.04) per share, as compared to a net loss attributable to iPower of $4.2 million or $(0.14) per share for the same period in fiscal 2023. The improvement was driven by the aforementioned higher gross profit and lower operating expenses.
Cash and cash equivalents were $2.7 million at September 30, 2023, as compared to $3.7 million at June 30, 2023. Total debt as of September 30, 2023 was $7.0 million as compared to $11.8 million as of June 30, 2023. As a result of the Company’s debt paydown, net debt (total debt less cash) was reduced by 48% to $4.3 million compared to $8.1 million as of June 30, 2023.
The Company will hold a conference call today, November 14, 2023, at 4:30 p.m. Eastern Time to discuss the results for its fiscal first quarter ended September 30, 2023.
iPower’s management will host the conference call, which will be followed by a question-and-answer session.
The conference call details are as follows:
Date: Tuesday, November 14, 2023
Time: 4:30 p.m. Eastern time
Dial-in registration link: here
Live webcast registration link: here
Please dial into the conference call 5-10 minutes prior to the start time. If you have any difficulty connecting with the conference call, please contact the Company’s investor relations team at IPW@elevate-ir.com.
The conference call will also be broadcast live and available for replay in the Events & Presentations section of the Company’s website at www.meetipower.com.
About iPower Inc.
iPower Inc. is a tech and data-driven online retailer and supplier of consumer home and garden products, as well as a provider of value-added ecommerce services for third-party products and brands. iPower offers thousands of stock keeping units from its in-house brands as well as hundreds of other brands through its ecommerce channel partners and its websites, www.zenhydro.com and www.simpledeluxe.com. iPower has a diverse customer base that includes both commercial businesses and individuals. For more information, please visit iPower’s website at www.meetipower.com.
All statements other than statements of historical fact in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that iPower believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. iPower undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, except as may be required by law. Although iPower believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and iPower cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results and performance in iPower’s Annual Report on Form 10-K, as filed with the SEC on September 15, 2023, its Quarterly Report on Form 10-Q, as filed with the SEC on November 14, 2023, and in its other SEC filings.
Investor Relations Contact:
Sean Mansouri, CFA
|iPower Inc. and Subsidiaries|
|Unaudited Condensed Consolidated Balance Sheets|
|As of September 30, 2023 and June 30, 2023|
|September 30,||June 30,|
|Cash and cash equivalent||$||2,729,161||$||3,735,642|
|Accounts receivable, net||13,237,282||14,071,543|
|Other receivable – related party||–||–|
|Prepayments and other current assets||1,811,499||2,858,196|
|Total current assets||32,834,565||41,259,270|
|Right of use – non-current||7,763,712||7,837,345|
|Property and equipment, net||496,901||536,418|
|Deferred tax assets||2,432,439||2,155,250|
|Investment in joint venture||32,088||33,113|
|Intangible assets, net||4,117,728||4,280,071|
|Other non-current assets||417,639||427,254|
|Total non-current assets||18,755,651||18,835,017|
|LIABILITIES AND EQUITY|
|Credit cards payble||693,327||366,781|
|Other payables and accrued liabilities||3,292,581||4,831,067|
|Advance from shareholders||84,718||85,200|
|Lease liability – current||2,169,603||2,159,173|
|Short-term loan payable – related party||1,006,060||2,017,852|
|Long-term promissory note payable – current portion||1,149,961||–|
|Income taxes payable||275,117||276,683|
|Total current liabilities||21,065,516||23,332,308|
|Long-term revolving loan payable, net||4,808,322||9,791,191|
|Long-term promissory note payable, net||0||–|
|Deferred tax liabilities||–||–|
|Lease liability – non-current||6,023,813||6,106,047|
|Total non-current liabilities||10,832,135||15,897,238|
|Commitments and contingency||–||–|
|Preferred stock, $0.001 par value; 20,000,000 shares authorized; 0 shares issued and|
|outstanding at June 30, 2023 and 2022||–||–|
|Common stock, $0.001 par value; 180,000,000 shares authorized; 29,710,939 and|
|29,572,382 shares issued and outstanding at June 30, 2023 and 2022||29,712||29,712|
|Additional paid in capital||29,742,402||29,624,520|
|(Accumulated deficits) Retained earnings||(9,988,957||)||(8,702,442||)|
|Accumulated other comprehensive income (loss)||(62,841||)||(62,134||)|
|Total liabilities and equity||$||51,590,216||$||60,094,287|
|iPower Inc. and Subsidiaries|
|Unaudited Condensed Consolidated Statements of Operations|
|For the Three Months Ended September 30, 2023 and 2022|
|For the Three Months Ended September 30,|
|COST OF REVENUES||14,749,529||16,036,957|
|Selling and fulfillment||10,063,471||8,418,812|
|General and administrative||2,964,051||3,100,176|
|Impairment loss – goodwill||–||3,060,034|
|Total operating expenses||13,027,522||14,579,022|
|(LOSS) INCOME FROM OPERATIONS||(1,268,677||)||(4,593,306||)|
|OTHER INCOME (EXPENSE)|
|Other financing expenses||–||–|
|Loss on equity method investment||(1,025||)||(3,390||)|
|Other non-operating income||(67,166||)||211,760|
|Total other expenses, net||(296,556||)||(39,671||)|
|(LOSS) INCOME BEFORE INCOME TAXES||(1,565,233||)||(4,632,977||)|
|PROVISION FOR INCOME TAX (BENEFIT) EXPENSE||(275,882||)||(447,796||)|
|NET (LOSS) INCOME||(1,289,351||)||(4,185,181||)|
|NET (LOSS) INCOME ATTRIBUTABLE TO IPOWER INC.||$||(1,286,515||)||$||(4,182,376||)|
|OTHER COMPREHENSIVE LOSS|
|Foreign currency translation adjustments||(707||)||(111,475||)|
|COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO IPOWER INC.||$||(1,287,222||)||$||(4,293,851||)|
|WEIGHTED AVERAGE NUMBER OF COMMON STOCK|
|(LOSSES) EARNINGS PER SHARE|
- A2 Lactose-free Milk Market to Surge at a CAGR of 19.7% through 2033 Amid Growing Prevalence of Lactose Intolerance Worldwide | Future Market Insights, Inc. - December 11, 2023
- LIVEPERSON ALERT: Bragar Eagel & Squire, P.C. Reminds Investors that a Class Action Lawsuit Has Been Filed Against LivePerson, Inc. and Encourages Investors to Contact the Firm - December 10, 2023
- BLUE RIDGE BANKSHARES ALERT: Bragar Eagel & Squire, P.C. Reminds Investors that a Class Action Lawsuit Has Been Filed Against Blue Ridge Bankshares, Inc. and Encourages Investors to Contact the Firm - December 10, 2023