Fiscal Full Year 2022 Revenue Increased 61% to
a Record $42.3M
Strategic Initiatives Drive Increased Backlog
Conversion, Higher Inventory Turns & Improved Gross Margins
Resulting in Progress to Profitability
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, 2022.
Financial Highlights
- FY’22 revenue increased 61% to $42.3M compared to
FY’21 revenue of $26.3M.
- Q4’22 revenue increased 83% to $15.2M compared to
Q4’21 revenue of $8.3M.
- FY’22 gross margin was 17% compared to 22% in
FY’21.
- Q4’22 gross margin was 20% compared to 21% in
Q4’21.
- Achieved 16th consecutive quarter of year-over-year
revenue growth.
Operating Highlights
Received customer purchase orders of $11.6M in Q4’22 for
deliveries in coming months from both existing and new customers.
Received $65M in customer purchase orders in the fiscal year ended
June 30, 2022, which was an 83% increase compared to fiscal year
ended June 30, 2021.
- Customer order backlog totaled $35.0M as of June 30,
2022.
- Shipments (Revenue) increased 61% to $42.3M in FY’22
compared to $26.3M in FY’21.
- New purchase orders increased 83% to $65.1M in FY’22
compared to $35.5M in FY’21.
- Introduced three new products in March 2022 at MODEX
material handling trade show:
- L36 lithium-ion battery pack, a 36-volt option for high growth
3-wheel forklifts;
- C48 lithium-ion battery pack for Automated Guided Vehicles
(AGV) and Autonomous Mobile Robots (AMR); and
- S24 lithium-ion battery pack providing twice the capacity
(210Ah) for Walkie Pallet Jacks for heavy duty applications
- Strategic Supply Chain & Profitability Improvement
Initiatives accelerating path to cash flow breakeven,
including:
- Utilized qualified, lower cost steel suppliers;
- Improved manufacturing capacity and production processes
(including implementing Lean Manufacturing) to increase throughput,
reduce the time to fulfill customer orders and improve gross
margins;
- Increased inventory turns from 2.6x to 3.4x during the quarter
ended June 30, 2022, reducing inventory to $16.3M;
- Introduced new product designs to lower costs, simplify part
count and cost, and improve serviceability;
- Launched in-house automated modular production initiative to
manage module SKUs and accommodate diversification among cell
suppliers;
- Expanded customer base, particularly among Fortune 500
companies.
Backlog Summary
Fiscal Quarter Ended
Beginning Backlog
New Orders
Shipments
Ending Backlog
March 31, 2021
$
2,759,000
$
9,977,000
$
6,826,000
$
5,910,000
June 30, 2021
$
5,910,000
$
15,053,000
$
8,339,000
$
12,624,000
September 30, 2021
$
12,624,000
$
13,122,000
$
6,313,000
$
19,433,000
December 31, 2021
$
19,433,000
$
19,819,000
$
7,837,000
$
31,415,000
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
CEO Commentary
“Ongoing customer demand produced $11.6 million in purchase
orders received from new and existing customers during the fourth
quarter. For fiscal year 2022, order volume increased 83% from the
prior year to $65 million. With nearly 74% of revenue from
customers with whom we have had long-term relationships in fiscal
2022, we believe the combination of existing customer orders and
continued acquisition of new customer business can drive revenue
growth in the next several years,” said Ron Dutt, Chief Executive
Officer of Flux Power.
“Our strategic focus on relationship business with an emphasis
on price, service and quality, continues to provide ongoing new
purchase needs and service requirements. Progress with new accounts
has been substantial, adding six new customers, several of which
have fleet potential and at least six-figure revenue potential. We
believe business from our installed base will represent the future
of expanding revenues as these relationships help drive new
customers to our technology and owning that technology also ensure
our customers have the most updated products and services.
“During the quarter ended June 30, 2022, we continued our focus
on fulfilling orders to reduce our backlog of $35.0 million as of
June 30, 2022, down from $38.6 million in the prior quarter. Our
reduced backlog has been helped by improvement in sourcing actions
to mitigate part shortages and to increase confidence in future
supplier performance. Our strategic initiatives to accelerate
backlog conversion to shipments and increase inventory turns are
also driving revenue results and gross margins that we believe will
lead toward profitability.
“During the quarter, global supply chain disruptions have
improved, and concurrently we have improved production process
improvements and better supply chain management. We have worked to
leverage increased pack volumes to re-source steel and board
components to low-cost regions and to high volume local suppliers;
and also identify more competitive carriers to reduce shipping
costs. We plan to ship backlog and reduce inventory levels; as of
the end of the fourth quarter, inventory levels had not yet
decreased materially, but we anticipate reductions in the current
quarter as we get traction on our plan.
“To date, cell supply from China has not been a problem, with
our manufacturer, EVE Energy Company, standing as the 8th largest
cell producer in China. At the same time, competitive lithium cell
production is expanding in U.S., serving as a potential alternative
in the future with the potential to reduce reliance in offshore
sourcing. Combined with our transition to in-house, automated
modular production and increased sourcing of domestic produced
cells, this flexibility helps mitigate risk for both our Company
and our customers.
“Looking ahead, we continue to focus on expanding sales of our
energy storage solutions to new and existing customers who want the
benefits of lithium-ion technology. We are seeing strong growth
from both the material handling equipment sector and the airport
ground support equipment sector. We continue to see customer
interest in our SkyBMS Telematics product for remote fleet
management and monitoring. Additional interest from the emerging
robotic material handling equipment vertical is also driving demand
as these customers look to improve their productivity and equipment
integration.
“As we move into fiscal 2023, we are encouraged by strong
purchase orders from both new and existing customers, improving
backlog and continued expansion of margins through pricing.
Supported by the accelerating ‘economy-wide’ renewable energy
transition and supply chain improvements, we believe our growth
trajectory in 2023 is positioned for another record revenue year,
building long-term value for our shareholders,” concluded Dutt.
Q4’22 Financial Results
- Revenue for the fiscal fourth quarter of 2022 increased
by 83% to $15.2 million compared to $8.3 million in the fiscal
fourth quarter of 2021, driven by increased sales volumes and
models with higher selling prices.
- Gross profit for the fiscal fourth quarter of 2022
increased to $3.0 million compared to a gross profit of $1.8
million in the fiscal fourth quarter of 2021. Gross margin was 20%
in the fiscal fourth quarter of 2022 as compared to 21% in the
fiscal fourth quarter of 2021, reflecting ongoing actions to offset
price increases from vendors and address supply chain disruption
impacts.
- Selling & Administrative expenses increased to $4.1
million in the fiscal fourth quarter of 2022 from $3.4 million in
the fiscal fourth quarter of 2021, reflecting increases in outbound
shipping costs, personnel expenses related to new hires and
temporary labor, and an increase in insurance premiums.
- Research & Development expenses decreased to $1.4
million in the fiscal fourth quarter of 2022, compared to $2.0
million in the fiscal fourth quarter of 2021, primarily due lower
special third-party expense to support product development
stages.
- Adjusted EBITDA loss was $2.2 million for the fiscal
fourth quarter of 2022, an improvement from an adjusted EBITDA loss
of $3.5 million for the fiscal fourth quarter of 2021.
- Net loss for the fiscal fourth quarter of 2022 decreased
to $2.7 million from a net loss of $3.7 million in the fiscal
fourth quarter of 2021, principally reflecting gross margin profit
from higher revenue.
FY’22 Financial Results
- Revenue for the fiscal year of 2022 increased by 61% to
$42.3 million compared to $26.3 million in the fiscal of 2021,
driven by increased sales volumes and models with higher selling
prices, including greater sales to existing customers as well as
initial sales to new customers.
- Gross profit for the fiscal year 2022 increased to $7.3
million compared to a gross profit of $5.8 million in the fiscal
year of 2021. Gross margin was 17% in the fiscal year of 2022 as
compared to 22% in the fiscal year of 2021, impacted by higher
costs for steel, electronic parts, and common off the shelf parts
during the year, partially offset by higher revenues associated
with increased sales of energy storage solutions.
- Selling & Administrative expenses increased to $15.5
million in the fiscal year of 2022 from $12.6 million in the fiscal
year of 2021, reflecting increases in outbound shipping costs,
personnel expenses related to new hires and temporary labor, and an
increase in insurance premiums.
- Research & Development expenses increased to $7.1
million in the fiscal year of 2022, compared to $6.7 million in the
fiscal year of 2021, primarily due to expenses related to
development of new models and UL certifications.
- Adjusted EBITDA loss was $14.1 million for the fiscal
year of 2022 compared to $11.1 million for fiscal year of
2021.
- Net loss for the fiscal year of 2022 increased to $15.6
million from a net loss of $12.8 million in the fiscal year of
2021, principally reflecting increased operating expenses,
partially offset by an increase in gross profit and a decrease in
interest expense.
- Cash was $0.5 million at June 30, 2022, as compared to
$4.7 million at June 30, 2021. Our working capital line of credit
outstanding balance was $4.9 million at June 30, 2022. Cash
requirements during the quarter were higher due to the pre-purchase
of inventory to support increasing sales orders.
Fourth Quarter and Full Fiscal Year 2022 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.
The Flux Power 10-K is on track to be filed prior to SEC
reporting final date of September 28, 2022.
To access the call, please use the following information:
Date:
Thursday, September 22, 2022
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:
13732630
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=1567702&tp_key=84c06cde95
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 22, 2022.
Toll-free replay number:
1-844-512-2921
International replay number:
1-412-317-6671
Replay ID:
13732630
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.
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,
2022
2021
Net loss
$
(15,609,000
)
$
(12,793,000
)
Interest, net
252,000
622,000
Income tax provision
-
-
Depreciation and amortization
575,000
274,000
EBITDA
(14,782,000
)
(11,897,000
)
Stock-based compensation
711,000
797,000
Adjusted EBITDA
$
(14,071,000
)
$
(11,100,000
)
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 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, 2022
June 30, 2021
ASSETS
Current assets:
Cash
$
485,000
$
4,713,000
Accounts receivable
8,609,000
6,097,000
Inventories
16,262,000
10,513,000
Other current assets
1,261,000
417,000
Total current assets
26,617,000
21,740,000
Right of use asset
2,597,000
3,035,000
Property, plant and equipment, net
1,578,000
1,356,000
Other assets
89,000
131,000
Total assets
$
30,881,000
$
26,262,000
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
6,645,000
$
7,175,000
Accrued expenses
2,209,000
2,583,000
Revolving line of credit
4,889,000
-
Deferred revenue
163,000
24,000
Customer deposits
175,000
171,000
Office lease payable, current portion
504,000
435,000
Accrued interest
1,000
2,000
Total current liabilities
14,586,000
10,390,000
Long term liabilities:
Office lease payable, less current
portion
2,361,000
2,866,000
Total liabilities
16,947,000
13,256,000
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; 15,996,658 and 13,652,164 shares issued and
outstanding at June 30, 2022, and June 30, 2021, respectively
16,000
14,000
Additional paid-in capital
95,732,000
79,197,000
Accumulated deficit
(81,814,000
)
(66,205,000
)
Total stockholders’ equity
13,934,000
13,006,000
Total liabilities and stockholders’
equity
$
30,881,000
$
26,262,000
FLUX POWER HOLDINGS,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
Three Months Ended June 30,
(Unaudited)
Years Ended June 30,
2022
2021
2022
2021
Net revenue
$
15,195,000
$
8,325,000
$
42,333,000
$
26,257,000
Cost of sales
12,196,000
6,574,000
35,034,000
20,467,000
Gross profit
2,999,000
1,751,000
7,299,000
5,790,000
Operating expenses:
Selling and administrative expenses
4,113,000
3,422,000
15,515,000
12,599,000
Research and development
1,373,000
2,045,000
7,141,000
6,669,000
Total operating expenses
5,486,000
5,467,000
22,656,000
19,268,000
Operating loss
(2,487,000
)
(3,716,000
)
(15,357,000
)
(13,478,000
)
Other income
-
-
-
1,307,000
Interest expense
(166,000
)
(4,000
)
(252,000
)
(622,000
)
Net loss
$
(2,653,000
)
$
(3,720,000
)
$
(15,609,000
)
$
(12,793,000
)
Net loss per share - basic and diluted
$
(0.17
)
$
(0.30
)
$
(1.01
)
$
(1.08
)
Weighted average number of common shares
outstanding - basic and diluted
15,995,199
12,499,870
15,439,530
11,796,217
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220922005826/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)
Historical Stock Chart
From Jun 2024 to Jul 2024
Flux Power (NASDAQ:FLUX)
Historical Stock Chart
From Jul 2023 to Jul 2024