- Fiscal 2023 Revenue up 12% to Record $88.9 Million, with Cash Flow from Operations of $9.2 Million -
- iPower Management to Host Conference Call Today at 4:30 p.m. Eastern Time -
DUARTE, Calif, Sept. 14, 2023 (GLOBE NEWSWIRE) -- iPower Inc. ( 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 fourth quarter and full fiscal year ended June 30, 2023.
Fiscal Q4 2023 Results vs. Year-Ago Quarter
- Total revenue increased 6% to $23.4 million as compared to $22.1 million.
- Gross profit remained flat at $9.1 million, with gross margin of 38.7% as compared to 41.2%.
- Net loss attributable to iPower was $3.0 million or $(0.10) per share, as compared to net loss of $1.3 million or $(0.05) per share.
- As of June 30, 2023, net debt (total debt less cash) was reduced by 43% to $8.1 million as compared to net debt of $14.2 million as of June 30, 2022.
Fiscal 2023 Results vs. Fiscal 2022
- Total revenue increased 12% to $88.9 million as compared to $79.4 million.
- Gross profit increased 5% to $34.8 million as compared to $33.2 million, with gross margin of 39.1% compared to 41.8%.
- Net loss attributable to iPower was $12.0 million or $(0.40) per share, as compared to net income of $1.5 million or $0.06 per share. The fiscal 2023 period includes approximately $3 million related to a goodwill impairment incurred earlier in the fiscal year.
- Cash flow from operations improved significantly to $9.2 million as compared to cash used of $16.6 million.
Management Commentary
“Fiscal 2023 marked our third consecutive year of double-digit revenue growth driven by consistent, strong demand for our in-house products and continued expansion of our non-hydroponic portfolio,” said Lawrence Tan, CEO of iPower. “Throughout the fiscal year, we emphasized in-house products sales which accounted for over 90% of revenue while continuing to diversify our product offerings beyond hydroponics, which grew to more than 75% of sales in fiscal 2023. We believe that our ability to generate double-digit growth while shifting our product mix into new categories demonstrates our superior product research, design and merchandising capabilities.”
iPower CFO, Kevin Vassily, added, “During the year, we continued to work through high-cost inventory buildup from prior periods, which has weighed on our gross margin in recent quarters. However, we have now sold through most of the excess inventory and expect gross margin to improve in fiscal 2024. With an improved supply chain, normalized inventory levels and continued demand for our in-house products, we believe that we are well positioned to execute on our growth and profitability objectives in fiscal 2024.”
Fiscal Fourth Quarter 2023 Financial Results
Total revenue in the fiscal fourth quarter of 2023 increased 6% to $23.4 million as compared to $22.1 million for the same period in fiscal 2022. The increase was primarily driven by greater product sales to the Company’s largest channel partner, as well as strong demand for iPower’s non-hydroponic product portfolio which now accounts for over 75% of revenue.
Gross profit in the fiscal fourth quarter of 2023 remained flat at $9.1 million compared to the same quarter in fiscal 2022. As a percentage of revenue, gross margin was 38.7% as compared to 41.2% in the year-ago period. The decrease in gross margin was primarily driven by a higher cost of goods sold related to inventory that previously incurred higher freight charges, as well as normal variations in product and channel mix.
Total operating expenses in the fiscal fourth quarter of 2023 were $12.0 million as compared to $10.6 million for the same period in fiscal 2022. The increase was driven in part by higher selling, fulfillment, and marketing costs related to the sale of inventory built up in prior quarters.
Net loss attributable to iPower in the fiscal fourth quarter of 2023 was $3.0 million or $(0.10) per share, as compared to a net loss of $1.3 million or $(0.05) per share for the same period in fiscal 2022. The decline was driven in part by the aforementioned higher operating expenses.
Cash and cash equivalents were $3.7 million at June 30, 2023, as compared to $1.8 million at June 30, 2022. Total debt as of June 30, 2023 was $11.8 million as compared to $16.0 million as of June 30, 2022. As a result of the Company’s debt paydown, iPower’s net debt (total debt less cash) position was reduced by 43% to $8.1 million as compared to $14.2 million as of June 30, 2022.
Conference Call
The Company will hold a conference call today, September 14, 2023, at 4:30 p.m. Eastern Time to discuss the results for its fiscal fourth quarter and full fiscal year ended June 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: Thursday, September 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 [email protected].
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.
Forward-Looking Statements
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 14, 2023, and in its other SEC filings.
Investor Relations Contact:
Sean Mansouri, CFA
Elevate IR
(720) 330-2829
[email protected]
2022
ASSETS Current assets Cash and cash equivalent$3,735,642 $1,821,947 Accounts receivable, net 14,071,543 17,432,287 Inventories, net 20,593,889 30,433,766 Other receivable - related party - 51,762 Prepayments and other current assets 2,858,196 5,444,463 Total current assets 41,259,270 55,184,225 Non-current assets Right of use - non-current 7,837,345 10,453,282 Property and equipment, net 536,418 544,633 Deferred tax assets 2,155,250 - Non-current prepayments 531,456 925,624 Goodwill 3,034,110 6,094,144 Investment in joint venture 33,113 43,385 Intangible assets, net 4,280,071 4,929,442 Other non-current assets 427,254 406,732 Total non-current assets 18,835,017 23,397,242 Total assets$60,094,287 $78,581,467 LIABILITIES AND EQUITY Current liabilities Accounts payable 13,244,957 9,533,408 Credit cards payble 366,781 807,687 Customer deposit 350,595 273,457 Other payables and accrued liabilities 4,831,067 5,915,220 Advance from shareholders 85,200 92,246 Investment payable - 1,500,000 Lease liability - current 2,159,173 2,582,933 Long-term promissory note payable - current portion 2,017,852 1,879,065 Income taxes payable 276,683 299,563 Total current liabilities 23,332,308 22,883,579 Non-current liabilities Long-term revolving loan payable, net 9,791,191 12,314,627 Long-term promissory note payable, net - 1,781,705 Deferred tax liabilities - 939,115 Lease liability - non-current 6,106,047 8,265,611 Total non-current liabilities 15,897,238 23,301,058 Total liabilities 39,229,546 46,184,637 Commitments and contingency - - Stockholders' Equity 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 29,573 Additional paid in capital 29,624,520 29,111,863 (Accumulated deficits) Retained earnings (8,702,442) 3,262,948 Non-controlling interest (24,915) (13,232)Accumulated other comprehensive income (loss) (62,134) 5,678 Total equity 20,864,741 32,396,830 Total liabilities and equity$60,094,287 $78,581,467
2022
2023
2022
(Unaudited) (Unaudited) REVENUES$23,399,166 $22,117,831 $88,902,048 $79,418,473 TOTAL REVENUES 23,399,166 22,117,831 88,902,048 79,418,473 COST OF REVENUES 14,348,668 12,998,903 54,104,587 46,218,580 GROSS PROFIT 9,050,498 9,118,928 34,797,461 33,199,893 OPERATING EXPENSES: Selling and fulfillment 8,133,299 6,842,363 32,427,972 19,180,390 General and administrative 3,913,672 3,767,117 12,792,998 11,707,466 Impairment loss - goodwill - - 3,060,034 - Total operating expenses 12,046,971 10,609,480 48,281,004 30,887,856 (LOSS) INCOME FROM OPERATIONS (2,996,473) (1,490,552) (13,483,543) 2,312,037 OTHER INCOME (EXPENSE) Interest expenses (265,497) (231,017) (1,066,280) (458,159)Other financing expenses - - - (80,010)Loss on equity method investment (1,376) 5,673 (10,001) (6,616)Other non-operating income (306,874) 210,893 (107,749) 296,366 Total other expenses, net (573,747) (14,451) (1,184,030) (248,419) (LOSS) INCOME BEFORE INCOME TAXES (3,570,220) (1,505,003) (14,667,573) 2,063,618 PROVISION FOR INCOME TAX (BENEFIT) EXPENSE (605,374) (146,570) (2,690,500) 558,975 NET (LOSS) INCOME (2,964,846) (1,358,433) (11,977,073) 1,504,643 Non-controlling interest (2,805) (9,162) (11,683) (13,232) NET (LOSS) INCOME ATTRIBUTABLE TO IPOWER INC.$(2,962,041) $(1,349,271) $(11,965,390) $1,517,875 OTHER COMPREHENSIVE LOSS Foreign currency translation adjustments (21,090) 8,904 (67,812) 5,678 COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO IPOWER INC.$(2,983,131) $(1,340,367) $(12,033,202) $1,523,553 WEIGHTED AVERAGE NUMBER OF COMMON STOCK Basic 29,747,497 29,662,448 29,713,354 27,781,493 Diluted 29,747,497 29,662,448 29,713,354 27,781,493 (LOSSES) EARNINGS PER SHARE Basic$(0.100) $(0.045) $(0.403) $0.055 Diluted$(0.100) $(0.045) $(0.403) $0.055
