Fiscal Full Year 2023 Revenue Increased 57% to
$66.3 Million
Fiscal Full Year 2023 Gross Profit Increased
134% to $17.1 Million
Fiscal Full Year 2023 Net Cash Used in
Operating Activities Decreased 85%
Strong Fortune 500 Customer Order Backlog
Management to Host Conference Call Today at
4:30 p.m. Eastern Time
Flux Power Holdings, Inc. (NASDAQ: FLUX), a developer of
advanced lithium-ion energy storage solutions for electrification
of commercial and industrial equipment, has reported its financial
and operational results for the fiscal fourth quarter and year
ended June 30, 2023.
Key Financial & Operational Highlights for the Fourth
Quarter and Fiscal Year 2023
($ millions)
Full Year Comparison
Q4 Comparison
FY 2023
FY 2022
$ Change YoY
% Change YoY
Q4-2023
Q4-2022
$ Change QoQ
% Change QoQ
Revenue
$66.3
$42.3
$24.0
57%
$16.3
$15.2
$1.1
7%
Gross Profit
$17.1
$7.3
$9.8
134%
$4.3
$3.0
$1.3
43%
Gross Margin
26%
17%
--
9%
27%
20%
--
7%
Adjusted EBITDA
-$3.7
-$14.1
$10.4
--
-$0.6
-$2.2
$1.6
--
- Net cash used in operating activities decreased 64% in
Q4’23 compared to Q4’23 and 85% for the year ended June 30, 2023,
compared to the year ended June 30, 2022.
- Adjusted EBITDA loss decreased 73% in Q4’23 compared to
Q4’22 and decreased 74% for the year ended June 30, 2023, compared
to the year ended June 30, 2022.
- Secured a new $15 million credit facility from Gibraltar
Business Capital (“GBC”) to fund working capital and to repay its
existing credit facility with Silicon Valley Bank (“SVB”).
- Commenced implementation of Artificial Intelligence (AI)
features for SkyBMS® Telematics Platform to drive more informed
decision-making and maximize operational efficiency.
- Opened a new Atlanta facility to supplement customer
support services in response to growth in nationwide sales of
lithium-ion battery packs, enabling faster response times to Flux
Power’s nationwide customer base.
- Strategic Supply Chain & Profitability Improvement
Initiatives continued to accelerate the path to cash flow
breakeven.
- Completed UL Solutions compliance testing to obtain
third-party, safety and durability certification for its
next-generation clean energy battery technology.
- Added three new customers having large fleets this past
quarter and 8 new customers in 2023, reflecting customers
desire to fulfill long-term fleet needs of replacing lead acid
battery packs with lithium-ion.
Backlog Summary
The backlog status is a point in time measure but in total
reflects underlying pacing of orders:
Fiscal Quarter Ended
Beginning
Backlog
New Orders
Shipments
Ending
Backlog
March 31, 2022
$
31,415,000
$
20,495,000
$
13,317,000
$
38,593,000
June 30, 2022
$
38,593,000
$
11,622,000
$
15,195,000
$
35,020,000
September 30, 2022
$
35,020,000
$
9,678,000
$
17,840,000
$
26,858,000
December 31, 2022
$
26,858,000
$
20,652,000
$
17,158,000
$
30,352,000
March 31, 2023
$
30,352,000
$
9,751,000
$
15,087,000
$
25,016,000
June 30, 2023
$
25,016,000
$
19,780,000
$
16,252,000
$
28,544,000
CEO Commentary
“A high priority for us remains reaching cash flow breakeven,
and we made good progress during fiscal 2023 by improving Adjusted
EBITDA from a loss of $14.1 million in fiscal year 2022 to a loss
of $3.7 million in fiscal year 2023, an improvement of $10.4
million. We executed on our initiatives to improve gross margins
while continuing to grow our revenue at an annual rate of 57%. We
added on average two new major customers each quarter while
maintaining orders from existing customers.
“Managing our business growth and margin expansion has required
careful priorities as part of our strategy to protect shareholder
value. We migrated from our Silicon Valley Bank facility to a new
$15 million credit facility with Gibraltar bank which provides
lower interest rates, a two-year term, and the potential to expand
the facility to $20 million to accommodate higher working capital
needs as our business grows. This facility, along with our
improvement in operating cash requirements, supports our current
business growth. Additional credit support is provided by our
unused $4.0 million subordinated line of credit (“Subordinated
LOC”).
“Turning to near-term developments, firstly, we are now working
to implement Artificial Intelligence features and capabilities into
our SkyBMS Telematics platform, which delivers insight into
equipment fleet’s usage so customers can make more informed
decisions to maximize operational efficiency. With AI, we can
anticipate and resolve issues before they happen, addressing the
number one driver in fleet management - minimizing downtime of the
equipment. Secondly, we have begun a staged launching of our
updated product platform that includes the rollout of “heavy duty”
models for more demanding performance, which should provide added
revenue opportunities.
“To supplement our customer support for almost 20,000
lithium-ion battery packs deployed nationwide we recently announced
the opening of our new Atlanta facility. This facility will enable
faster response times to our customer base with an effective
service and call center capability. Investment in the Atlanta
office broadens our geographic footprint to bring comprehensive and
responsive services to customers in the eastern half of the U.S.
while also, and importantly, resulting in significantly lower
service logistics costs.
“As global supply chain disruptions have lessened, we decreased
our inventory balance to $19.0 million as of June 30, 2023. We did
experience a lengthening of forklift OEM delivery timelines in the
material handling sector that partially offset our reductions to
inventory levels. To address disruptions and reduce excess
inventory we have improved lean manufacturing processes and supply
chain management. We have launched an automated cell module
production initiative to streamline cell module SKU management and
facilitate adoption of future cell suppliers that have lower costs
and new technologies.
“Looking ahead, we believe our current growth and cash
initiatives provide the solid operating base to build the scale
necessary to be the leading provider to large Fortune 500 material
handling fleets. To leverage this growth strategy we are in the
early stages of exploring and developing partnerships with vendors,
technology partners, and opportunities to expand our business
footprint. I look forward to additional announcements in the months
to come as we strive to create long-term sustainable growth and
shareholder value,” concluded Dutt.
Q4’23 Financial Results
Revenue for the fiscal fourth quarter of 2023 increased
by 7% to $16.3 million compared to $15.2 million in the fiscal
fourth quarter of 2022, driven a higher volume of units sold with
higher average selling prices, including a higher mix of Airport
Ground Support Equipment “GSE” sales.
Gross profit for the fiscal fourth quarter of 2023
increased to $4.3 million compared to a gross profit of $3.0
million in the fiscal fourth quarter of 2022. Gross margin was 27%
in the fiscal fourth quarter of 2023 as compared to 20% in the
fiscal fourth quarter of 2022, reflecting higher volume of units
sold with greater gross margin and lower cost of sales as a result
of the gross margin improvement initiatives. Gross margin was
sequentially lower in fiscal fourth quarter of 2023 than the third
quarter, primarily reflecting a higher mix of lower margin
products.
Adjusted EBITDA was a loss of $0.6 million in the fiscal
fourth quarter of 2023 as compared to a loss of $2.2 million in the
fiscal fourth quarter of 2022, driven by the improved gross
margins.
Selling & Administrative expenses remained unchanged
at $4.1 million in the fiscal fourth quarter of 2023, reflecting
improving operating leverage for our ongoing revenue growth.
Research & Development expenses decreased slightly to
$1.3 million in the fiscal fourth quarter of 2023, compared to $1.4
million in the fiscal fourth quarter of 2022, primarily due to
lower expenses related to the development of new products.
Net loss for the fiscal fourth quarter of 2023 was $1.5
million as compared with a net loss of $2.7 million in the fiscal
fourth quarter of 2022, with improvement principally reflecting
increased gross profit, slightly offset by increased operating
expenses and interest expense.
FY’23 Financial Results
Revenue for the fiscal year 2023 increased by 57% to
$66.3 million compared to $42.3 million in the fiscal year 2022,
driven by sales of energy storage solutions with higher average
selling prices and a higher volume of units sold, driven by
significant increases in GSE sales.
Gross Profit for the fiscal year 2023 increased to $17.1
million compared to a gross profit of $7.3 million in the fiscal
year 2022. Gross margin was 26% in the fiscal year 2023 as compared
to 17% in the fiscal year 2022, reflecting a higher volume of units
sold with greater gross margin and lower cost of sales as a result
of the gross margin improvement initiatives.
Adjusted EBITDA was a loss of $3.7 million in the fiscal
year 2023 as compared to a loss of $14.1 million in the fiscal year
2022, driven by the improved gross margins.
Selling & Administrative expenses increased to $17.6
million in the fiscal year 2023 from $15.5 million in the fiscal
year 2022, primarily attributable to increases in outbound shipping
costs, depreciation expense, insurance premiums, severance
expenses, new hires, partially offset by decreases in commissions,
bad debt expenses, consulting fees, public relations expenses, and
stock-based compensation.
Research & Development expenses decreased to $4.9
million in the fiscal year 2023, compared to $7.1 million in the
fiscal year 2022, primarily due to lower expenses related to the
development of new products.
Net loss for the fiscal year 2023 was $6.7 million as
compared with a net loss of $15.6 million in the fiscal year 2022,
with improvement principally reflecting increased gross profit,
partially offset by increased operating expenses and interest
expense.
Cash was $2.4 million at June 30, 2023, as compared to
$0.5 million at June 30, 2022. Available working capital includes:
our line of credit as of September 8, 2023, under our $15.0 million
credit facility from Gibraltar Business Capital with a remaining
available balance of $4.0 million; and $4.0 million available under
the subordinated line of credit (“Subordinated LOC”).
Net cash used in operating activities decreased to $3.6
million in fiscal year 2023 compared to $23.9 million in fiscal
year 2022, primarily due to a decrease in net loss and an increase
in accounts payable.
Fourth Quarter & Full Fiscal Year 2023 Results Conference
Call
Flux Power CEO Ron Dutt and CFO Chuck Scheiwe will host the
conference call, followed by a question-and-answer session. The
conference call will be accompanied by a presentation, which can be
viewed during the webcast or accessed via the investor relations
section of the Company’s website here.
To access the call, please use the following information:
Date:
Thursday, September 21, 2023
Time:
4:30 p.m. Eastern Time, 1:30 p.m. Pacific
Time
Toll-free dial-in number:
1-877-407-4018
International dial-in number:
1-201-689-8471
Conference ID:
13739638
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact MZ Group at 1-949-491-8235.
The conference call will be broadcast live and available for
replay at
https://viavid.webcasts.com/starthere.jsp?ei=1622559&tp_key=bfd2206c1f
and via the investor relations section of the Company's website
here.
A replay of the webcast will be available after 7:30 p.m.
Eastern Time through December 31, 2023.
Toll-free replay number:
1-844-512-2921
International replay number:
1-412-317-6671
Replay ID:
13739638
Note about Non-GAAP Financial Measures
A non-GAAP financial measure is a numerical measure of a
company’s performance, financial position, or cash flows that
either excludes or includes amounts that are not normally excluded
or included in the most directly comparable measure calculated and
presented in accordance with accounting principles generally
accepted in the United States of America, or GAAP. Non-GAAP
measures are not in accordance with, nor are they a substitute for,
GAAP measures. Other companies may use different non-GAAP measures
and presentation of results.
In addition to financial results presented in accordance with
GAAP, this press release presents adjusted EBITDA, which is a
non-GAAP measure. Adjusted EBITDA is determined by taking net loss
and adding interest, taxes, depreciation, amortization, and
stock-based compensation expenses. The company believes that this
non-GAAP measure, viewed in addition to and not in lieu of net
loss, provides additional information to investors by providing a
more focused measure of operating results. This metric is an
integral part of the Company’s internal reporting to evaluate its
operations and the performance of senior management. A
reconciliation of adjusted EBITDA to net loss, the most comparable
GAAP measure, is available in the accompanying financial tables
below. The non-GAAP measure presented herein may not be comparable
to similarly titled measures presented by other companies.
US-GAAP NET INCOME (LOSS) TO
ADJUSTED EBITDA RECONCILIATION
(Unaudited)
Years Ended June 30,
2023
2022
Net loss
$
(6,741,000
)
$
(15,609,000
)
Interest, net
1,339,000
252,000
Income tax provision
-
-
Depreciation and amortization
899,000
575,000
EBITDA
(4,503,000
)
(14,782,000
)
Stock-based compensation
798,000
711,000
Adjusted EBITDA
$
(3,705,000
)
$
(14,071,000
)
About Flux Power Holdings, Inc.
Flux Power (NASDAQ: FLUX) designs, manufactures, and sells
advanced lithium-ion energy storage solutions for electrification
of a range of industrial and commercial sectors including material
handling, airport ground support equipment (GSE), and stationary
energy storage. Flux Power’s lithium-ion battery packs, including
the proprietary battery management system (BMS) and telemetry,
provide customers with a better performing, lower cost of
ownership, and more environmentally friendly alternative, in many
instances, to traditional lead acid and propane-based solutions.
Lithium-ion battery packs reduce CO2 emissions and help improve
sustainability and ESG metrics for fleets. For more information,
please visit www.fluxpower.com.
Forward-Looking Statements
This release contains projections and other "forward-looking
statements" relating to Flux Power’s business, that are often
identified using "believes," "expects" or similar expressions.
Forward-looking statements involve several estimates, assumptions,
risks, and other uncertainties that may cause actual results to be
materially different from those anticipated, believed, estimated,
expected, etc. Such forward-looking statements include impact of
COVID-19 on Flux Power’s business, results and financial condition;
Flux Power’s ability to obtain raw materials and other supplies for
its products at competitive prices and on a timely basis,
particularly in light of the potential impact of the COVID-19
pandemic on its suppliers and supply chain; the development and
success of new products, projected sales, cancellation of purchase
orders, deferral of shipments, Flux Power’s ability to improve its
gross margins, or achieve breakeven cash flow or profitability,
Flux Power’s ability to fulfill backlog orders or realize profit
from the contracts reflected in backlog sale; Flux Power’s ability
to fulfill backlog orders due to changes in orders reflected in
backlog sales, Flux Power’s ability to obtain the necessary funds
under the credit facilities, Flux Power’s ability to timely obtain
UL Listing for its products, Flux Power’s ability to fund its
operations, distribution partnerships and business opportunities
and the uncertainties of customer acceptance and purchase of
current and new products, and changes in pricing, and Flux Power’s
ability to negotiate and enter into a definitive agreement in
connection with the Letter of Intent. Actual results could differ
from those projected due to numerous factors and uncertainties.
Although Flux Power believes that the expectations, opinions,
projections, and comments reflected in these forward-looking
statements are reasonable, they can give no assurance that such
statements will prove to be correct, and that the Flux Power’s
actual results of operations, financial condition and performance
will not differ materially from the results of operations,
financial condition and performance reflected or implied by these
forward-looking statements. Undue reliance should not be placed on
the forward-looking statements and Investors should refer to the
risk factors outlined in our Form 10-K, 10-Q and other reports
filed with the SEC and available at www.sec.gov/edgar. These
forward-looking statements are made as of the date of this news
release, and Flux Power assumes no obligation to update these
statements or the reasons why actual results could differ from
those projected.
Flux, Flux Power, and associated logos are trademarks of Flux
Power Holdings, Inc. All other third-party brands, products,
trademarks, or registered marks are the property of and used to
identify the products or services of their respective owners.
Follow us at:
Blog: Flux Power Blog News Flux Power News Twitter: @FLUXpwr
LinkedIn: Flux Power
FLUX POWER HOLDINGS,
INC.
CONSOLIDATED BALANCE
SHEETS
June 30,
2023
June 30,
2022
ASSETS
Current assets:
Cash
$
2,379,000
$
485,000
Accounts receivable
8,649,000
8,609,000
Inventories, net
18,996,000
16,262,000
Other current assets
918,000
1,261,000
Total current assets
30,942,000
26,617,000
Right of use asset
2,854,000
2,597,000
Property, plant and equipment, net
1,789,000
1,578,000
Other assets
120,000
89,000
Total assets
$
35,705,000
$
30,881,000
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
9,735,000
$
6,645,000
Accrued expenses
3,181,000
2,209,000
Revolving line of credit
9,912,000
4,889,000
Deferred revenue
131,000
163,000
Customer deposits
82,000
175,000
Finance lease payable, current portion
143,000
-
Office lease payable, current portion
644,000
504,000
Accrued interest
2,000
1,000
Total current liabilities
23,830,000
14,586,000
Long term liabilities:
Finance lease payable, less current
portion
273,000
-
Office lease payable, less current
portion
2,055,000
2,361,000
Total liabilities
26,158,000
16,947,000
Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000
shares authorized; none issued and outstanding
-
-
Common stock, $0.001 par value; 30,000,000
shares authorized; 16,462,215 and 15,996,658 shares issued and
outstanding at June 30, 2023 and June 30, 2022, respectively
16,000
16,000
Additional paid-in capital
98,086,000
95,732,000
Accumulated deficit
(88,555,000
)
(81,814,000
)
Total stockholders’ equity
9,547,000
13,934,000
Total liabilities and stockholders’
equity
$
35,705,000
$
30,881,000
FLUX POWER HOLDINGS,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
Years ended June 30,
2023
2022
Revenues
$
66,337,000
$
42,333,000
Cost of sales
49,237,000
35,034,000
Gross profit
17,100,000
7,299,000
Operating expenses:
Selling and administrative
17,620,000
15,515,000
Research and development
4,890,000
7,141,000
Total operating expenses
22,510,000
22,656,000
Operating loss
(5,410,000
)
(15,357,000
)
Other income (expense):
Other income
8,000
-
Interest expense
(1,339,000
)
(252,000
)
Net loss
$
(6,741,000
)
$
(15,609,000
)
Net loss per share - basic and diluted
$
(0.42
)
$
(1.01
)
Weighted average number of common shares
outstanding - basic and diluted
16,055,256
15,439,530
FLUX POWER HOLDINGS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Year ended June 30,
2023
2022
Cash flows from operating activities:
Net loss
$
(6,741,000
)
$
(15,609,000
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation
899,000
575,000
Stock-based compensation
798,000
711,000
Fair value of warrants issued as debt
discount cost
-
253,000
Amortization of debt issuance costs
482,000
-
Noncash lease expense
512,000
438,000
Allowance for inventory reserve
-
61,000
Changes in operating assets and
liabilities:
Accounts receivable
(40,000
)
(2,512,000
)
Inventories
(2,734,000
)
(5,810,000
)
Other current assets
(170,000
)
(802,000
)
Accounts payable
3,090,000
(530,000
)
Accrued expenses
972,000
(374,000
)
Deferred revenue
(32,000
)
139,000
Accrued interest
1,000
(1,000
)
Office lease payable
(518,000
)
(436,000
)
Customer deposits
(93,000
)
4,000
Net cash used in operating activities
(3,574,000
)
(23,893,000
)
Cash flows from investing activities
Purchases of equipment
(1,032,000
)
(797,000
)
Proceeds from sale of fixed assets
8,000
-
Net cash used in investing activities
(1,024,000
)
(797,000
)
Cash flows from financing activities:
Proceeds from the issuance of common stock
in registered direct offering, net of offering costs
-
13,971,000
Proceeds from the issuance of common stock
in public offering, net of offering costs
1,556,000
1,602,000
Proceeds from revolving line of credit
63,400,000
8,450,000
Payment of revolving line of credit
(58,377,000
)
(3,561,000
)
Payment of financed leases
(87,000
)
-
Net cash provided by financing
activities
6,492,000
20,462,000
Net change in cash
1,894,000
(4,228,000
)
Cash, beginning of period
485,000
4,713,000
Cash, end of period
$
2,379,000
$
485,000
Supplemental Disclosures of Non-Cash
Investing and Financing Activities:
Initial right of use asset recognition
$
855,000
$
-
Common stock issued for vested RSUs
$
417,000
$
21,000
Supplemental cash flow
information:
Interest paid
$
1,127,000
$
151,000
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230921638873/en/
Media & Investor Relations: info@fluxpower.com
External Investor Relations: Chris
Tyson, Executive Vice President MZ Group - MZ North
America 949-491-8235 FLUX@mzgroup.us www.mzgroup.us
Flux Power (NASDAQ:FLUX)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Flux Power (NASDAQ:FLUX)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024