IRVINE, Calif., March 19, 2015 /PRNewswire/ -- DecisionPoint™
Systems, Inc. (OTCQB: DPSI and OTCQB: DPSIP), a leading provider
and integrator of Enterprise Mobility and Wireless Applications
solutions, today reported financial results for the fourth quarter
and year ended December 31, 2014.
Sales increased by 17.5% for the quarter and by 6.4% for the year
compared to the comparable period in 2013. The Company
reported net income for the quarter versus a net loss in the
comparable quarter of the prior year, and net income for the full
year compared to a net loss in 2013. EBITDA for the year
increased by $5.4 million and
Adjusted EBITDA increased by $4.4
million.
Interim CEO James De Socio
commented, "The strong performance in the fourth quarter is an
indicator of the success we are having from the combination of
increasing sales and careful expense control. Now our
challenge is to report a continuing trend of growth and
profitability."
For the year ended December 31,
2014 net sales were $64.5
million with net income of $524,000; after taking into account preferred
dividends paid or imputed, we had a loss of $817,000 or $0.07
loss per share. For 2013, we had sales of $60.7 million, with a net loss of $5.2 million or $0.80 loss per share after accounting for
preferred dividends. For the fourth quarter of 2014, sales
were $17.2 million with net income of
$1.2 million or $0.03 per share fully diluted after accounting
for preferred dividends, compared to sales of $14.6 million in the fourth quarter of 2013, with
a net loss of $1.8 million or
$0.32 loss per share after
dividends. The sales increase is attributable to hardware
sales, professional services and support solutions from our
relationships with our existing customers and a number of new
customers through our software development group.
CFO Michael Roe said, "We paid
all preferred dividends declared in 2014 in cash in 2014 and early
2015. Debt was more than $1
million lower at December 31,
2014 than at December 31,
2013. Silicon Valley Bank extended our credit line for
another two years, with the potential for further decreases in the
interest rate based on milestones. Interest expense was down
year-to-year, as a result of the decreased debt.
"We are particularly pleased to report that SG&A expense for
the year decreased by over $5.0
million", Mr Roe said, "dropping to $13.3 million from $18.3
million. In addition, gross profit margin for 2014
increased to 22.0%, vs 21.0% in 2013. As a result of our
internally generated cash flow our balance sheet continued to
improve. Cash was $1.6 million
at December 31, 2014, compared to a
year-earlier balance of $641,000. Accounts receivable was up, as
was inventory."
EBITDA and Adjusted EBITDA are non-GAAP measurements that are
commonly used in our industry to gauge performance. A
reconciliation to GAAP is provided in the tables that follow the
report. For 2014, EBITDA was $2.9
million versus $(2.5 million)
a year earlier. Adjusted EBITDA was $2.7 million, compared to $(1.7 million) for 2013.
Conference Call:
The Company's management team will
host a conference call to discuss its results for fourth quarter
and year ended December 31, 2014
today, at 9:00 am ET.
Participants should dial into the call ten minutes before the
scheduled time using the following numbers: 1-888-348-3873
(USA) or +1-412-902-4234
(international) to access the call.
Audio Webcast:
There will also be a simultaneous live
webcast through the Company's website, www.decisionpt.com and
selecting the investor tab. Participants should register on the
website approximately ten minutes prior to the start of the
webcast.
Replay:
An audio replay of the conference call will be
available for seven days and can be accessed by dialing
1-877-870-5176 (USA) or
+1-858-384-5517 (international) and using passcode 10061634.
For those unable to attend to the live webcast, it will be archived
shortly following the event for 30 days in the Investors section of
the Company's website.
About DecisionPoint™ Systems, Inc.
DecisionPoint
Systems, Inc. delivers improved productivity and operational
advantages to its clients by helping them move their business
decision points closer to their customers. They do this by
making enterprise software applications accessible to the
front-line worker anytime, anywhere. DecisionPoint utilizes
all the latest wireless, mobility, and RFID technologies.
For more information about DecisionPoint Systems, Inc., visit
www.decisionpt.com.
Forward-Looking Statements
Except for
historical information contained herein, the statements in this
news release are forward-looking statements that are made pursuant
to the safe harbor provisions of the Private Securities Act of
1995. Forward-looking statements involve known and unknown
risks and uncertainties, which may cause a company's actual
results, performance and achievements in the future to differ
materially from forecasted results, performance, and achievements.
Known risks and uncertainties are described in the Company's
periodic filings with the Securities and Exchange Commission.
The Company undertakes no obligation to publicly release the
results of any revisions to its forward-looking statements to
reflect events or circumstances after the date hereof, including
without limitation unanticipated events or changes in the Company's
plans or expectations.
Contacts:
DecisionPoint™ Systems, Inc.
Michael Roe
Chief Financial Officer
(949) 465-0065 ext. 25
Allen & Caron, Inc.
Rudy Barrio (investors)
r.barrio@allencaron.com
(212) 691-8087
Len Hall (media)
len@allencaron.com
(949) 474-4300
-FINANCIAL TABLES FOLLOW-
DECISIONPOINT
SYSTEMS, INC.
|
|
Unaudited
Condensed Consolidated Balance Sheets (In thousands,
except share and per share data)
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
2014
|
|
2013
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
|
|
$ 1,616
|
|
$ 641
|
|
Accounts receivable,
net
|
|
11,497
|
|
10,504
|
|
Due from related
party
|
|
-
|
|
188
|
|
Inventory,
net
|
|
2,035
|
|
1,533
|
|
Deferred
costs
|
|
3,177
|
|
3,809
|
|
Deferred tax
assets
|
|
13
|
|
49
|
|
Prepaid expenses and
other current assets
|
89
|
|
188
|
|
|
Total current
assets
|
|
18,427
|
|
16,912
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
145
|
|
136
|
Other assets,
net
|
|
124
|
|
165
|
Deferred costs, net
of current portion
|
1,314
|
|
1,807
|
Goodwill
|
|
|
8,202
|
|
8,395
|
Intangible assets,
net
|
|
2,045
|
|
3,907
|
|
|
Total
assets
|
|
$ 30,257
|
|
$ 31,322
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' DEFICIT
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
|
$ 10,000
|
|
$ 9,774
|
|
Accrued expenses and
other current liabilities
|
2,755
|
|
2,804
|
|
Lines of
credit
|
|
5,811
|
|
3,883
|
|
Current portion of
debt
|
|
813
|
|
1,474
|
|
Due to related
parties
|
|
73
|
|
77
|
|
Accrued earn out
consideration
|
-
|
|
319
|
|
Unearned
revenue
|
|
6,918
|
|
7,481
|
|
|
Total current
liabilities
|
26,370
|
|
25,812
|
|
|
|
|
|
|
|
|
Long term
liabilities
|
|
|
|
|
|
Unearned revenue, net
of current portion
|
2,015
|
|
2,481
|
|
Debt, net of current
portion and discount
|
1,580
|
|
1,961
|
|
Accrued earn out
consideration, net of current portion
|
-
|
|
149
|
|
Deferred tax
liabilities
|
|
460
|
|
740
|
|
Warrant
liability
|
|
519
|
|
803
|
|
Other long term
liabilities
|
|
226
|
|
249
|
|
|
Total
liabilities
|
|
31,170
|
|
32,195
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
-
|
|
-
|
|
|
|
|
|
STOCKHOLDERS'
DEFICIT
|
|
|
|
|
|
Cumulative
Convertible Preferred stock, $0.001 par value, 10,000,000
shares
|
|
|
|
|
|
authorized, 1,547,845
and 1,514,155 shares issued and outstanding, including cumulative and imputed preferred dividends of $2,295
and $1,956, and with a liquidation
preference of $13,640 and $13,232 at December 31, 2014 and 2013,
respectively
|
12,822
|
|
12,193
|
|
Common stock, $0.001
par value, 100,000,000 shares authorized,
|
|
|
|
|
|
12,883,446 issued and
12,729,563 outstanding as of December 31, 2014, and December 31, 2013
|
13
|
|
13
|
|
Additional paid-in
capital
|
|
17,252
|
|
17,231
|
|
Treasury stock,
153,883 shares of common stock
|
(205)
|
|
(205)
|
|
Accumulated
deficit
|
|
(30,292)
|
|
(29,475)
|
|
Unearned ESOP
shares
|
|
(484)
|
|
(629)
|
|
Accumulated other
comprehensive income
|
(19)
|
|
(1)
|
|
|
Total
stockholders' deficit
|
(913)
|
|
(873)
|
|
|
Total liabilities
and stockholders' deficit
|
$ 30,257
|
|
$ 31,322
|
DECISIONPOINT
SYSTEMS, INC.
|
Unaudited
Condensed Consolidated Statements of Operations and Comprehensive
Loss(In thousands, except share and per share
data)
|
|
|
|
|
Three Months Ended
December 31,
|
|
Years ended
December 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$ 17,181
|
|
$ 14,625
|
|
$ 64,546
|
|
$
60,692
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
13,383
|
|
11,749
|
|
50,372
|
|
47,965
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
3,798
|
|
2,876
|
|
14,174
|
|
12,727
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
3,170
|
|
4,357
|
|
13,331
|
|
18,338
|
Adjustment to
acquisition earn-out and bonus obligations
|
(86)
|
|
-
|
|
(86)
|
|
(820)
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
714
|
|
(1,481)
|
|
929
|
|
(4,791)
|
|
|
|
|
|
|
|
|
|
Other expense
(income):
|
|
|
|
|
|
|
|
|
Interest
expense
|
209
|
|
236
|
|
867
|
|
959
|
|
Fair market value
adjustment of warrant liability
|
(30)
|
|
(130)
|
|
(284)
|
|
(296)
|
|
Other income,
net
|
31
|
|
(21)
|
|
19
|
|
(37)
|
|
Total other expense
|
210
|
|
85
|
|
602
|
|
626
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
504
|
|
(1,566)
|
|
327
|
|
(5,417)
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
(716)
|
|
267
|
|
(197)
|
|
(199)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
1,220
|
|
(1,833)
|
|
524
|
|
(5,218)
|
|
|
|
|
|
|
|
|
|
Common stock deemed
dividend
|
-
|
|
(263)
|
|
-
|
|
(263)
|
Cumulative and
imputed Series A and B
|
|
|
|
|
|
|
|
preferred stock dividends
|
(27)
|
|
(27)
|
|
(108)
|
|
(108)
|
Accrued paid-in-kind
dividends
|
|
|
|
|
|
|
|
on
Series D and Series E preferred stock
|
-
|
|
(289)
|
|
-
|
|
(289)
|
Cash and Imputed
dividends on Series D preferred stock
|
(312)
|
|
-
|
|
(1,233)
|
|
(580)
|
Imputed contingent
beneficial converion
|
|
|
|
|
|
|
|
on
Series D preferred stock
|
-
|
|
(1,343)
|
|
-
|
|
(1,343)
|
|
|
|
|
|
|
|
|
|
Net income(loss)
attributable to common shareholders
|
$
881
|
|
$
(3,755)
|
|
$
(817)
|
|
$
(7,801)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per share -
|
|
|
|
|
|
|
|
|
Basic
|
$
0.07
|
|
$
(0.32)
|
|
$
(0.07)
|
|
$
(0.80)
|
|
Diluted
|
$
0.03
|
|
$
(0.32)
|
|
$
(0.07)
|
|
$
(0.80)
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding -
|
|
|
|
|
|
|
|
|
Basic
|
12,397,511
|
|
11,834,999
|
|
12,356,270
|
|
9,802,810
|
|
Diluted
|
31,422,108
|
|
11,834,999
|
|
12,356,270
|
|
9,802,810
|
DECISIONPOINT
SYSTEMS, INC. Unaudited Condensed Consolidated
Statements of Cash Flows (In thousands)
|
|
|
|
December
31,
|
|
2014
|
|
2013
|
Cash flows from
operating activities:
|
|
|
|
Net income
(loss)
|
$ 524
|
|
$ (5,218)
|
Adjustments to
reconcile net income (loss) to net cashprovided by (used in)
operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
1,754
|
|
1,967
|
|
|
Amortization of
deferred financing costs and note discount
|
153
|
|
181
|
|
|
Employee and Director
stock-based compensation
|
119
|
|
76
|
|
|
Adjustment to
acquisition related earn-out and bonus obligations
|
(86)
|
|
(820)
|
|
|
Change in fair value
of warrants
|
(284)
|
|
(296)
|
|
|
Loss on disposal of
property and equipment
|
5
|
|
13
|
|
|
ESOP compensation
expense
|
47
|
|
138
|
|
|
Allowance for
doubtful accounts
|
(46)
|
|
142
|
|
|
Deferred taxes,
net
|
(197)
|
|
(271)
|
|
|
Changes in operating
assets and liabilities, net of assets and liabilities
acquired:
|
|
|
|
|
|
|
Accounts receivable,
net
|
(976)
|
|
1,615
|
|
|
|
Due from related
parties
|
181
|
|
-
|
|
|
|
Inventory,
net
|
(502)
|
|
(723)
|
|
|
|
Deferred
costs
|
1,123
|
|
462
|
|
|
|
Prepaid expenses and
other current assets
|
106
|
|
126
|
|
|
|
Other assets,
net
|
11
|
|
(18)
|
|
|
|
Accounts
payable
|
314
|
|
(1,296)
|
|
|
|
Accrued expenses and
other current liabilities
|
6
|
|
(103)
|
|
|
|
Due to related
parties
|
(84)
|
|
76
|
|
|
|
Unearned
revenue
|
(983)
|
|
(284)
|
Net cash (used in)
provided by operating activities
|
1,185
|
|
(4,233)
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
(63)
|
|
(45)
|
Net cash used in
investing activities
|
(63)
|
|
(45)
|
Cash flows from
financing activities
|
|
|
|
|
(Repayments)
borrowings from lines of credit, net
|
1,931
|
|
459
|
|
Proceeds from the
issuance of term debt
|
-
|
|
1,000
|
|
Repayment of
debt
|
(1,153)
|
|
(2,082)
|
|
Issuance of
convertible series E preferred stock
|
-
|
|
4,090
|
|
Paid financing costs
associated with convertible preferred stock offering
|
-
|
|
(597)
|
|
Dividends
paid
|
(748)
|
|
(423)
|
|
Paid financing
costs
|
(100)
|
|
(119)
|
|
Payments for
contingent acquisition liability
|
(84)
|
|
-
|
|
Common stock issued
in private placement, net of costs
|
-
|
|
403
|
|
Warrants classified
as a liability in connection with common stock private
placement
|
-
|
|
1,099
|
Net cash provided
by (used in) financing activities
|
(154)
|
|
3,830
|
|
Effect on cash of
foreign currency translation
|
7
|
|
(14)
|
Net increase
(decrease) in cash
|
975
|
|
(462)
|
Cash at beginning
of year
|
641
|
|
1,103
|
Cash at end of
year
|
$ 1,616
|
|
$ 641
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
Interest
paid
|
$ 803
|
|
$ 1,019
|
|
Income taxes
paid
|
89
|
|
258
|
Supplemental
disclosure of non-cash financing activities:
|
|
|
|
|
Accrued and imputed
dividends on preferred stock
|
$ 340
|
|
$ 265
|
|
Imputed dividends as
contingent beneficial converion on series D preferred
stock
|
-
|
|
1,343
|
|
Accrued PIK dividends
on series D and Series E preferred stock
|
-
|
|
289
|
|
Warrants issued in
connection with common stock private placement
|
-
|
|
1,099
|
|
Warrants issued in
connection with convertible series E preferred stock
|
-
|
|
278
|
|
Settlement of
earn-out obligation with convertible note payable
|
291
|
|
-
|
|
Payment of accrued
dividends through issuance of PIK shares
|
289
|
|
-
|
Non-GAAP Financial Measures:
To supplement the Company's consolidated financial statements
presented on a GAAP basis, the Company has provided non-GAAP
financial information, namely earnings before interest, taxes,
depreciation and amortization (EBITDA). The Company's
management believes this non-GAAP measure provides investors with a
better understanding of how the results relate to the Company's
historical performance. The additional adjusted information
is not meant to be considered in isolation or as a substitute for
GAAP financials. Management believes that these adjusted
measures reflect the essential operating activities of the
Company. A reconciliation of non-GAAP financial measures
appears below:
|
|
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
EBITDA
Calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
|
$ 1,220
|
|
$ (1,833)
|
|
$ 524
|
|
$ (5,218)
|
Depreciation and
amortization
|
|
423
|
|
470
|
|
1,754
|
|
1,967
|
Interest
expense
|
|
|
209
|
|
236
|
|
867
|
|
959
|
Income tax provision
(benefit)
|
|
(716)
|
|
267
|
|
(197)
|
|
(199)
|
|
EBITDA
|
|
|
$ 1,136
|
|
$ (860)
|
|
$ 2,948
|
|
$ (2,491)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
1,136
|
|
(860)
|
|
2,948
|
|
(2,491)
|
Stock
compensation
|
|
|
30
|
|
45
|
|
119
|
|
76
|
ESOP
compensation
|
|
|
10
|
|
59
|
|
47
|
|
138
|
Deferred
taxes
|
|
|
(188)
|
|
(266)
|
|
(197)
|
|
(271)
|
Fair market value
adjustment of warrant liability
|
(30)
|
|
(130)
|
|
(284)
|
|
(296)
|
Adjustment to
earn-out obligations
|
|
(86)
|
|
-
|
|
(86)
|
|
(820)
|
Restructuring
costs
|
|
|
-
|
|
430
|
|
142
|
|
430
|
Capital raising
costs
|
|
|
-
|
|
270
|
|
-
|
|
1,570
|
|
Adjusted
EBITDA
|
$ 872
|
|
$ (452)
|
|
$ 2,689
|
|
$ (1,664)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/decisionpoint-systems-reports-results-for-fourth-quarter-and-year-ended-december-31-2014-300052977.html
SOURCE DecisionPoint Systems, Inc.