Aeries Technology (Nasdaq: AERT), a global professional services
and consulting partner, today reported results of Aark Singapore
Pte. Ltd. for the second fiscal quarter and first fiscal half 2024
ended September 30, 2023. On November 6, 2023, Aark Singapore
Pte. Ltd., the parent company of Aeries Technology Group Business
Accelerators Pte. Ltd., completed a business combination with
Worldwide Webb Acquisition Corp., a publicly traded special purpose
acquisition company. Following the business combination, Aark
Singapore Pte. Ltd. became a subsidiary of the resulting public
company, now known as Aeries Technology, Inc.
“We are happy to have successfully navigated the path to our
public listing and are pleased with our results so far this year,”
said Sudhir Panikassery, CEO of Aeries Technology. “I am incredibly
proud of the entire team’s execution, and excited to have welcomed
both Rajeev Nair as CFO and Daniel Webb as CIO this month, adding
to our already deep talent pool. We saw a significant acceleration
in both top and bottom line results in the second fiscal quarter
and believe we are well positioned to execute on our medium to
long-term growth strategy.”
Unaudited Three Months Ended September 30, 2023 (Second
Fiscal Quarter 2024) Financial Highlights
Revenues: Revenues for the second fiscal
quarter of 2024 were $17.6 million, up 38% compared to $12.8
million for the second fiscal quarter of 2023.
Income (Loss) from Operations: Income from
Operations for the second fiscal quarter of 2024 was $1.5 million,
up 475% compared to a loss of $(0.4) million for the second fiscal
quarter of 2023.
Net Income (Loss): Net Income for the second
fiscal quarter of 2024 was $926 thousand, up 517% compared to a net
loss of $(222) thousand for the second fiscal quarter of 2023.
Adjusted EBITDA: Adjusted EBITDA for the second
fiscal quarter of 2024 was $2.9 million, up 107% compared to $1.4
million for the second fiscal quarter of 2023.
Unaudited Six Months Ended September 30, 2023 (First
Fiscal Half 2024) Financial Highlights
Revenues, net: Revenues for the first half of
fiscal year 2024 was $33.9 million, up 34% compared to $25.3
million for the first half of fiscal year 2023.
Income from Operations: Income from Operations
for the first half of fiscal year 2024 was $2.3 million, up 92%
compared to $1.2 million for the first half of fiscal year
2023.
Net Income: Net Income for the first half of
fiscal year 2024 was $1.4 million, up 27% compared to $1.1 million
for the first half of fiscal year 2023.
Adjusted EBITDA: Adjusted EBITDA for the first
half of fiscal year 2024 was $5.8 million, up 71% compared to $3.4
million for the first half of fiscal year 2023.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except
percentages)(Unaudited) |
|
|
Three months ended September 30, |
|
Six months ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues, net |
$ |
17,578 |
|
|
$ |
12,799 |
|
|
$ |
33,908 |
|
|
$ |
25,337 |
|
Cost of revenue |
|
12,755 |
|
|
|
9,454 |
|
|
|
24,637 |
|
|
|
18,312 |
|
Gross
profit |
$ |
4,823 |
|
|
$ |
3,345 |
|
|
$ |
9,271 |
|
|
$ |
7,025 |
|
Gross Margin |
|
27 |
% |
|
|
26 |
% |
|
|
27 |
% |
|
|
28 |
% |
Operating
expenses |
|
|
|
|
|
|
|
Selling, general &
administrative expenses |
|
3,338 |
|
|
|
3,765 |
|
|
|
7,008 |
|
|
|
5,873 |
|
Total operating
expenses |
$ |
3,338 |
|
|
$ |
3,765 |
|
|
$ |
7,008 |
|
|
$ |
5,873 |
|
Income (loss) from
operations |
$ |
1,485 |
|
|
$ |
(420 |
) |
|
$ |
2,263 |
|
|
$ |
1,152 |
|
Operating Margin |
|
8 |
% |
|
|
-3 |
% |
|
|
7 |
% |
|
|
5 |
% |
Other income
(expense) |
|
|
|
|
|
|
|
Interest income |
|
70 |
|
|
|
47 |
|
|
|
134 |
|
|
|
96 |
|
Interest expense |
|
(76 |
) |
|
|
(66 |
) |
|
|
(199 |
) |
|
|
(114 |
) |
Other income (expense), net |
|
127 |
|
|
|
197 |
|
|
|
120 |
|
|
|
411 |
|
Total other income
(expense) |
|
120 |
|
|
|
178 |
|
|
|
55 |
|
|
|
393 |
|
Income before income
taxes |
|
1,605 |
|
|
|
(242 |
) |
|
|
2,318 |
|
|
|
1,545 |
|
Provision for income
taxes |
|
(679 |
) |
|
|
21 |
|
|
|
(897 |
) |
|
|
(408 |
) |
Net
income |
|
926 |
|
|
|
(222 |
) |
|
|
1,421 |
|
|
|
1,137 |
|
Net Margin |
|
5 |
% |
|
|
-2 |
% |
|
|
4 |
% |
|
|
4 |
% |
Less: Net income attributable
to noncontrolling interest |
|
108 |
|
|
|
(30 |
) |
|
|
181 |
|
|
|
170 |
|
Net income
attributable to Aark Singapore Pte. Ltd. |
$ |
819 |
|
|
$ |
(192 |
) |
|
$ |
1,240 |
|
|
$ |
967 |
|
Audited |
|
|
Year Ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
Revenues, net |
$ |
53,099 |
|
|
$ |
41,014 |
|
Cost of revenue |
|
39,442 |
|
|
|
29,007 |
|
Gross
profit |
$ |
13,657 |
|
|
$ |
12,007 |
|
Gross Margin |
|
26 |
% |
|
|
29 |
% |
Operating
expenses |
|
|
|
Selling, general &
administrative expenses |
|
11,326 |
|
|
|
5,423 |
|
Total operating
expenses |
$ |
11,326 |
|
|
$ |
5,423 |
|
Income (loss) from
operations |
$ |
2,331 |
|
|
$ |
6,584 |
|
Operating Margin |
|
4 |
% |
|
|
16 |
% |
Other income (expense) |
|
|
|
Interest income |
|
191 |
|
|
|
284 |
|
Interest expense |
|
(185 |
) |
|
|
(444 |
) |
Other income (expense), net |
|
429 |
|
|
|
(421 |
) |
Total other income
(expense) |
|
435 |
|
|
|
(581 |
) |
Income before income
taxes |
|
2,766 |
|
|
|
6,003 |
|
Provision for income
taxes |
|
(1,060 |
) |
|
|
(1,268 |
) |
Net
income |
|
1,706 |
|
|
|
4,735 |
|
Net Margin |
|
3 |
% |
|
|
12 |
% |
Less: Net income attributable
to noncontrolling interest |
|
260 |
|
|
|
703 |
|
Net income
attributable to Aark Singapore Pte. Ltd. |
$ |
1,446 |
|
|
$ |
4,032 |
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES(In
thousands, except percentages)(Unaudited) |
|
|
Three months ended September 30, |
|
Six months ended September
30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
926 |
|
|
$ |
(222 |
) |
|
$ |
1,421 |
|
|
$ |
1,137 |
|
Income tax expense |
|
679 |
|
|
|
(21 |
) |
|
|
897 |
|
|
|
408 |
|
Interest income |
|
(70 |
) |
|
|
(47 |
) |
|
|
(134 |
) |
|
|
(96 |
) |
Interest expenses |
|
76 |
|
|
|
66 |
|
|
|
199 |
|
|
|
114 |
|
Depreciation and
amortization |
|
334 |
|
|
|
293 |
|
|
|
661 |
|
|
|
588 |
|
EBITDA |
$ |
1,946 |
|
|
$ |
70 |
|
|
$ |
3,044 |
|
|
$ |
2,151 |
|
Adjustments |
|
|
|
|
|
|
|
(+) Stock-based
compensation |
|
252 |
|
|
|
1,057 |
|
|
|
1,626 |
|
|
|
1,057 |
|
(+) Business combination
related costs |
|
741 |
|
|
|
225 |
|
|
|
1,171 |
|
|
|
225 |
|
Adjusted
EBITDA |
$ |
2,939 |
|
|
$ |
1,352 |
|
|
$ |
5,841 |
|
|
$ |
3,433 |
|
Revenue |
|
17,578 |
|
|
|
12,799 |
|
|
|
33,908 |
|
|
|
25,337 |
|
Adjusted EBITDA Margin |
|
17 |
% |
|
|
11 |
% |
|
|
17 |
% |
|
|
14 |
% |
|
Year Ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
1,706 |
|
|
$ |
4,735 |
|
Income tax expense |
|
1,060 |
|
|
|
1,268 |
|
Interest income |
|
(191 |
) |
|
|
(284 |
) |
Interest expenses |
|
185 |
|
|
|
444 |
|
Depreciation and
amortization |
|
1,172 |
|
|
|
1,140 |
|
EBITDA |
$ |
3,932 |
|
|
$ |
7,303 |
|
Adjustments |
|
|
|
(+) Stock-based
compensation |
|
3,805 |
|
|
|
- |
|
(+) Business combination
related costs |
|
946 |
|
|
|
- |
|
Adjusted
EBITDA |
$ |
8,683 |
|
|
$ |
7,303 |
|
Revenue |
|
53,099 |
|
|
|
41,014 |
|
Adjusted EBITDA Margin |
|
16 |
% |
|
|
18 |
% |
|
|
|
|
|
|
|
|
About Aeries Technology
Aeries, a global professional and management services partner
offering a range of management consultancy services for private
equity sponsors and their portfolio companies with engagement
models that are designed to provide a mix of deep vertical
specialty, functional expertise, and digital systems and solutions
to scale, optimize and transform a client’s business
operations.
Non-GAAP Financial Measures
The company uses non-GAAP financial information and believes it
is useful to investors as it provides additional information to
facilitate comparisons of historical operating results, identify
trends in its underlying operating results and provide additional
insight and transparency on how it evaluates the business. The
company uses non-GAAP financial measures to budget, make operating
and strategic decisions, and evaluate its performance. The company
has detailed the non-GAAP adjustments that it makes in the non-GAAP
definitions below. The adjustments generally fall within the
categories of non-cash items. The company believes the non-GAAP
measures presented herein should always be considered along with,
and not as a substitute for or superior to, the related GAAP
financial measures. The company has provided the reconciliations
between the GAAP and non-GAAP financial measures above.
The company defines Adjusted EBITDA as net income from
operations before interest, income taxes, depreciation and
amortization adjusted to exclude stock-based compensation and
business combination related costs. Adjusted EBITDA is one of the
key performance indicators the company uses in evaluating our
operating performance and in making financial, operating, and
planning decisions. The company believes adjusted EBITDA is useful
to the investors of this proxy statement in the evaluation of
Aeries’ operating performance as such information was used by
securities analysts and other interested parties as a measure of
financial information and debt service capabilities, and it was
used by the company’s management for internal reporting and
planning procedures, including aspects of our consolidated
operating budget and capital expenditures.
Safe Harbor Statement
All statements in this release that are not based on historical
fact are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 and the provisions
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
While management has based any forward-looking statements included
in this release on its current expectations, the information on
which such expectations were based may change. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of risks,
uncertainties and other factors, many of which are outside of the
control of Aeries and its subsidiaries, which could cause actual
results to materially differ from such statements. Such risks,
uncertainties, and other factors include, but are not limited to,
the fluctuation of economic conditions, global conflicts, inflation
and other global events on Aeries' results of operations and global
supply chain constraints, Aeries' ability to continue to grow its
business and execute its strategies and plans, the performance of
management and employees, the regulatory landscape as it relates to
privacy regulations and their applicability to Aeries' technology
and services, Aeries' ability to maintain compliance with Nasdaq's
continued listing requirements, the ability to obtain financing if
needed, competition, general economic conditions and other factors
that are detailed in Aeries' periodic and current reports available
for review at sec.gov. Furthermore, Aeries operates in a highly
competitive and rapidly changing environment where new and
unanticipated risks may arise. Accordingly, investors should not
place any reliance on forward-looking statements as a prediction of
actual results. Aeries disclaims any intention to, and undertakes
no obligation to, update or revise forward-looking statements.
Contacts
Ryan GardellaAeriesIR@icrinc.com
Aeries Technology (NASDAQ:AERT)
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