– Fiscal Q3 Revenue up 74% to a Record $22.8 Million –
– iPower Management to Host Conference Call Today at 4:30 p.m. Eastern Time –
DUARTE, Calif., May 16, 2022 (GLOBE NEWSWIRE) — iPower Inc. (Nasdaq:IPW) (“iPower” or the “Company”), a leading online hydroponic equipment suppliers and retailers, today announced financial results for its fiscal third quarter ended March 31, 2022.
Fiscal Q3 2022 Results vs. Year-Ago Quarter
- Total revenue increased 74% to $22.8 million.
- Gross profit increased 59% to $9.2 million.
- As a percentage of revenue, gross margin was 40.3% as compared to 43.9%.
- Net income increased significantly to $1.2 million or $0.04 per share as compared to $(0.01) per share for Q3 2021.
“During our fiscal third quarter 2022 we experienced another period of significant growth with record revenue and gross profit,” said Lawrence Tan, CEO of iPower. “We continued to emphasize in-house product sales, which made up approximately 82% of revenue for the quarter, while driving additional sales velocity through our largest online channel partner. Our continued strong growth and in-house product mix speaks to our superior product research, design and merchandising expertise.
“We began multiple new strategic initiatives this past quarter, including the launch of our business in Europe as well as the launch of two new joint ventures targeting the eCommerce, logistics and social media markets. In addition, we closed our first ever M&A transaction by acquiring our largest global co-engineering partner, serving to expand our production capacity and deepen our R&D capabilities.”
iPower CFO Kevin Vassily added, “Although we experienced record high freight costs in the supply chain, we managed to maintain gross margin above 40% by leveraging our diversified supplier network. We also expanded operating margins despite adding new warehouse capacity during the quarter that is still ramping up to support higher volumes. We expect to close out the year on a strong note as we deliver on our business and operational objectives in fiscal 2022.”
Fiscal Third Quarter 2022 Financial Results
Total revenue in the fiscal third quarter of 2022 increased 74% to $22.8 million compared to $13.1 million for the same period in fiscal 2021. The increase was driven by greater product sales to the Company’s largest channel partner as well as strong demand for iPower’s ventilation products, commercial fans and shelving products.
Gross profit in the fiscal third quarter of 2022 increased 59% to $9.2 million compared to $5.8 million for the same quarter in fiscal 2021. As a percentage of revenue, gross margin was 40.3% compared to 43.9% in the year-ago quarter. The decrease was driven by product mix as well as higher freight costs.
Total operating expenses in the fiscal third quarter were $7.8 million compared to $5.0 million for the same period in fiscal 2021. As a percentage of revenue, operating expense improved 360 basis points to 34.3% compared to 37.9% in the year-ago quarter. The increase in operating expenses were primarily driven by additional warehouse, selling and fulfillment costs.
Net income in the fiscal third quarter of 2022 increased to $1.2 million or $0.04 per share, compared to net loss of $(0.2) million or $(0.01) per share for the same period in fiscal 2021.
Cash and cash equivalents were $2.6 million at March 31, 2022, compared to $6.7 million at June 30, 2021. The decrease was attributed to the timing of accounts receivables and is not an indication of any other business or operating trend. Long term debt as of March 31, 2022 was $13.4 million compared to $0.5 million as of June 30, 2021. This increase was also a function of timing as the Company utilizes its revolving credit facility to manage working capital.
The Company will conduct a conference call at 4:30 p.m. Eastern time on Monday, May 16, 2022, to discuss the results for its fiscal third quarter ended March 31, 2022.
iPower management will host the conference call, followed by a question-and-answer period. The conference call details are as follows:
Date: Monday, May 16, 2022
Time: 4:30 p.m. Eastern time
Toll-free dial-in number: (888) 705-0179
International dial-in number: (833) 730-3981
Conference ID: 6364931
Webcast: iPower FQ3 Earnings Call
Please call the conference call dial-in 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 Elevate IR at (720) 330-2829.
The conference call will also be broadcast live and available for replay in the Events & Presentations section of the Company’s website at www.meetipower.com.
About iPower Inc.
iPower Inc. is one of the leading online retailers and suppliers of hydroponics equipment and accessories. iPower offers thousands of stock keeping units from its in-house brands as well as hundreds of other brands through its website, www.zenhydro.com, and its online platform partners. iPower has a diverse customer base that includes both commercial businesses and individuals. For more information, please visit iPower’s website at https://ir.meetipower.com/.
All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that iPower believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. iPower undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although iPower believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and iPower cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in iPower’s registration statement and in its other filings with the SEC.
Investor Relations Contact:
Sean Mansouri, CFA
iPower Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
As of March 31, 2022 and June 30, 2021
|March 31,||June 30,|
|Cash and cash equivalent||$||2,641,584||$||6,651,705|
|Accounts receivable, net||19,083,554||7,896,347|
|Other receivables – related party||20,746||–|
|Prepayments and other current assets||7,813,772||4,693,000|
|Total current assets||51,970,592||32,306,793|
|Right of use – non current||9,095,158||1,819,421|
|Property and equipment, net||165,071||55,659|
|Investment in joint venture||37,711||–|
|Intangible assets, net||5,091,785||–|
|Other non-current assets||300,346||99,645|
|Total non-current assets||21,817,756||3,332,017|
|LIABILITIES AND EQUITY|
|Credit cards payable||745,585||584,311|
|Other payables and accrued liabilities||4,895,528||2,487,441|
|Advance from shareholders||97,476||–|
|Short-term loans payable||–||162,769|
|Lease liability – current||1,790,688||731,944|
|Long-term loan payable – current portion||29,244||29,244|
|Long-term promissory note payable – current portion||1,826,564||–|
|Income taxes payable||864,109||790,823|
|Total current liabilities||18,296,519||9,024,902|
|Long-term loan payable||434,201||458,571|
|Long-term revolving loan payable, net||11,166,577||–|
|Long-term promissory note payable, net||1,800,315||–|
|Deferred tax liabilities||836,330||–|
|Lease liability – non-current||7,573,610||1,169,552|
|Total non-current liabilities||21,811,033||1,628,123|
|Commitments and contingency||–||–|
|Preferred stock, $0.001 par value; 20,000,000 shares authorized; 0 shares issued and outstanding at March 31, 2022 and June 30, 2021||–||–|
|Common stock, $0.001 par value; 180,000,000 shares authorized; 29,572,382 and 26,448,663 shares issued and outstanding at March 31, 2022 and June 30, 2021||29,573||26,449|
|Additional paid in capital||29,046,300||23,214,263|
|Accumulated other comprehensive income (loss)||(3,226||)||–|
|Total liabilities and equity||$||73,788,348||$||35,638,810|
iPower Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income
For the Three and Nine Months Ended March 31, 2022 and 2021
|For the Three Months Ended March 31,||For the Nine Months Ended March 31,|
|COST OF REVENUES||13,598,563||7,369,127||33,219,677||23,073,000|
|Selling and fulfillment||5,030,267||3,071,897||12,338,027||9,070,320|
|General and administrative||2,802,395||1,904,144||7,940,349||4,486,621|
|Total operating expenses||7,832,662||4,976,041||20,278,376||13,556,941|
|INCOME FROM OPERATIONS||1,376,989||788,734||3,802,589||2,718,213|
|OTHER INCOME (EXPENSE)|
|Interest income (expenses)||(152,030||)||(60,118||)||(227,142||)||(109,656||)|
|Other financing expenses||(71,010||)||(60,692||)||(80,010||)||(98,139||)|
|PPP loan forgiveness||–||175,500||–||175,500|
|Gain (Loss) on equity method investment||(12,289||)||–||(12,289||)||–|
|Other non-operating income (expense)||75,882||(812,434||)||85,473||(794,582||)|
|Total other (expenses), net||(159,447||)||(757,744||)||(233,968||)||(826,877||)|
|INCOME BEFORE INCOME TAXES||1,217,542||30,990||3,568,621||1,891,336|
|PROVISION FOR INCOME TAXES||39,855||237,813||705,545||760,687|
|NET INCOME (LOSS)||1,177,687||(206,823||)||2,863,076||1,130,649|
|NET INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC.||$||1,181,757||$||(206,823||)||$||2,867,146||$||1,130,649|
|OTHER COMPREHENSIVE LOSS|
|Foreign currency translation adjustments||(3,226||)||–||(3,226||)||–|
|COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC.||$||1,178,531||$||(206,823||)||$||2,863,920||$||1,130,649|
|WEIGHTED AVERAGE NUMBER OF COMMON STOCK|
|EARNINGS (LOSSES) PER SHARE|