DecisionPoint Systems Announces Fourth Quarter and Full Year 2020 Results
04/07/2021 - 08:00 AM
IRVINE, Calif. , April 7, 2021 /PRNewswire/ -- DecisionPoint Systems, Inc. (OTCQB: DPSI), today announced financial results for the fourth quarter and 2020.
Fourth Quarter 2020
Sales for the fourth quarter of 2020 were $18.3 million $6.2 million 50.7% from the fourth quarter of 2019. Net income for the fourth quarter of 2020 was $0.6 million 8.3% from the fourth quarter of 2019, and earnings per diluted share for the fourth quarter of 2020 and 2019 were flat at $0.04 per diluted share. EBITDA increased 22.3% to $1.3 million Full Year 2020
Sales for the full year 2020 were $63.4 million $19.5 million 44.4% , from 2019. Net income for 2020 was $2.9 million $0.18 per diluted share, compared with net income of $0.9 million $0.06 per diluted share in 2019. For 2020, diluted earnings per share increased 200.0% versus 2019. EBITDA increased 92.9% to $5.1 million "2020 was a remarkable year for DecisionPoint Systems, said Steve Smith , chief executive officer. "Despite the pandemic, we grew the business to $63.4 million
Balance Sheet and Liquidity
Our cash and accounts receivable were $18.4 million December 31, 2020 , compared to $11.3 million December 31, 2019 . Cash provided by operations in 2020 was $4.2 million $2.5 million $1.1 million
About DecisionPoint Systems
DecisionPoint Systems Inc. delivers mobility-first managed service and integration solutions to healthcare, supply chain, and retail customers, enabling them to make better and faster decisions in the moments that matter—the decision points. Our mission is to help businesses consistently deliver on those moments—accelerating growth, improving worker productivity, and lowering risks and costs.
For more information about DecisionPoint Systems, Inc., visit www.decisionpt.com .
Forward-Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 that are based on management's beliefs and assumptions and on information currently available to management. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by forward-looking statements. Forward-looking statements in this press release may include statements about our plans to obtain funding for our current and proposed operations and potential acquisition and expansion efforts; the ultimate impact of the COVID-19 pandemic, or any other health epidemic, on our business, our clientele or the global economy as a whole; debt obligations of the Company; our general history of operating losses; our ability to compete with companies producing products and services; the scope of protection we are able to establish and maintain for intellectual property rights covering our products and technology; the accuracy of our estimates regarding expenses, future revenue, capital requirements and needs for additional financing; our ability to develop and maintain our corporate infrastructure, including our internal controls; our ability to develop innovative new products; and our financial performance. In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. We qualify all of our forward-looking statements by these cautionary statements. Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our periodic filings with the Securities and Exchange Commission.
Investor Relations Contact: Carol Arakaki ir@decisionpt.com
DecisionPoint Systems, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except per share data)
December 31,
2020
2019
ASSETS
Current assets:
Cash
$
2,005
$
2,620
Accounts receivable, net
16,438
8,710
Inventory, net
884
3,825
Deferred costs
1,744
2,201
Prepaid expenses and other current assets
67
268
Total current assets
21,138
17,624
Operating lease assets
583
516
Property and equipment, net
751
239
Deferred costs, net of current portion
2,097
1,258
Deferred tax assets
1,973
2,659
Intangible assets, net
4,663
2,394
Goodwill
8,128
6,990
Other assets
22
19
Total assets
$
39,355
$
31,699
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
12,852
$
10,589
Accrued expenses and other current liabilities
2,807
2,222
Deferred revenue
4,617
3,630
Line of credit
1,206
3,177
Current portion of debt
—
144
Due to related parties
34
124
Current portion of operating lease liabilities
261
140
Total current liabilities
21,777
20,026
Deferred revenue, net of current portion
3,140
1,979
Long-term debt
1,361
390
Noncurrent portion of operating lease liabilities
340
388
Other
873
—
Total liabilities
27,491
22,783
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value; 10,000 shares authorized; no shares issued or outstanding
—
—
Common stock, $0.001 par value; 50,000 shares authorized; 13,576 and 13,576 shares issued and outstanding, respectively
14
14
Additional paid-in capital
38,229
38,142
Accumulated deficit
(26,379)
(29,240)
Total stockholders' equity
11,864
8,916
Total liabilities and stockholders' equity
$
39,355
$
31,699
DecisionPoint Systems, Inc.
Unaudited Condensed Consolidated Statements of Income and Comprehensive Income
(in thousands, except per share data)
Fourth Quarter Ended
Year Ended
2020
2019
2020
2019
Net sales:
Product
$
14,733
$
9,154
$
50,673
$
31,990
Service
3,568
2,994
12,687
11,899
Net sales
18,301
12,148
63,360
43,889
Cost of sales:
Product
11,550
7,150
40,129
25,866
Service
2,264
1,987
8,413
7,267
Cost of sales
13,814
9,137
48,542
33,133
Gross profit
4,487
3,011
14,818
10,756
Operating expenses:
Sales and marketing expense
1,586
1,232
5,587
4,907
General and administrative expenses
1,971
958
5,203
3,999
Total operating expenses
3,557
2,190
10,790
8,906
Operating income
930
821
4,028
1,850
Interest expense
87
77
319
649
Other income
1
1
213
-
Income before income taxes
844
745
3,922
1,201
Income tax expense
244
191
1,061
310
Net income and comprehensive income attributable to common stockholders
$
600
$
554
$
2,861
$
891
Earnings per share attributable to stockholders:
Basic
$
0.04
$
0.04
$
0.21
$
0.07
Diluted
$
0.04
$
0.04
$
0.18
$
0.06
Weighted average common shares outstanding
Basic
13,576
13,576
13,576
13,415
Diluted
15,623
15,642
15,622
15,341
DecisionPoint Systems, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Years Ended
December 31,
2020
2019
Cash flows from operating activities
Net income
$
2,861
$
891
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
891
809
Amortization of deferred financing costs and note discount
157
304
Share-based compensation expense
87
324
Acquisition earn-out adjustment
-
(110)
Deferred income taxes, net
686
265
Provision for doubtful accounts
25
5
Changes in operating assets and liabilities:
Accounts receivable
(5,853)
(503)
Inventory, net
2,945
(3,469)
Deferred costs
(382)
(746)
Prepaid expenses and other current assets
254
(148)
Other assets, net
(8)
21
Accounts payable
585
4,047
Accrued expenses and other current liabilities
294
275
Due to related parties
(90)
16
Operating lease liabilities
6
(163)
Deferred revenue
1,738
717
Net cash provided by operating activities
4,196
2,535
Cash flows from investing activities
Purchases of property and equipment
(93)
(175)
Cash paid for acquisitions, net of cash acquired
(3,409)
(500)
Net cash used in investing activities
(3,502)
(675)
Cash flows from financing activities
Repayment of term debt
(646)
(1,636)
Line of credit, net
(1,971)
(19)
Proceeds from issuance of term debt
1,361
—
Debt issuance costs
(53)
(36)
Proceeds from exercise of stock options
—
1
Net cash used in financing activities
(1,309)
(1,690)
Change in cash
(615)
170
Cash, beginning of year
2,620
2,450
Cash, end of year
$
2,005
$
2,620
Non-GAAP Financial Measure:
This press release includes information relating to EBITDA which the Securities and Exchange Commission has defined as a "non-GAAP financial measure." EBITDA is defined as net income before interest expense, net, income tax expense, and depreciation and amortization (EBITDA). We believe EBITDA may provide investors with useful information of how our current primary operating results relate to our historical performance. The non-GAAP financial measure provided is not meant to be considered as a substitute for GAAP financials. We caution investors that amounts presented in accordance with our definitions of EBITDA may not be comparable to similar measures disclosed by other companies, because not all companies calculate EBITDA in the same manner.
The following is a reconciliation of net income to EBITDA (unaudited and in thousands):
Fourth Quarter Ended
Year Ended
2020
2019
2020
2019
Reconciliation of Net Income to EBITDA
Net income
$
600
$
554
$
2,861
$
891
Interest expense
87
77
319
649
Income tax expense
244
191
1,061
310
Depreciation and amortization (1)
324
203
888
809
EBITDA
$
1,255
$
1,025
$
5,129
$
2,659
(1) Recorded within general and administration expenses within our Unaudited Condensed Consolidated Statements of Income and Comprehensive Income.
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SOURCE DecisionPoint Systems, Inc.
DecisionPoint Systems Inc.
DPSIP Rankings
N/A Ranked by Stock Gains
DPSIP Stock Data
Industry
Data Processing, Hosting, and Related Services
Sector
Information
Tags
Internet Software/Services, Technology Services, Information, Data Processing, Hosting, and Related Services
Country
US
City
Foothill Ranch
About DPSIP
decisionpoint systems believes that your mobile workforce is the face of your company and that the impressions they make on your customers are lasting. for over 25 years, decisionpoint’s reason for being is to empower these workers to make better and faster decisions. utilizing the industries’ best mobile computing technologies, decisionpoint designs, develops, deploys and maintains enterprise class mobile computing solutions that connect your mobile workforce to one another as well as your enterprise system(s). whether your mobile workforce consists of retail store associates, truck driver, field service/ sales associates or delivery personnel, decisionpoint understands your company’s unique mobile needs and can provide mobile a solution that enhances customer satisfaction and accelerates your business’ growth.
