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DecisionPoint Systems Announces Fourth Quarter and Full Year 2020 Results
[April 07, 2021]

DecisionPoint Systems Announces Fourth Quarter and Full Year 2020 Results


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, an increase of $6.2 million, or 50.7% from the fourth quarter of 2019.
  • Net income for the fourth quarter of 2020 was $0.6 million, an increase of 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 for the fourth quarter of 2020 versus the fourth quarter of 2019.

Full Year 2020

  • Sales for the full year 2020 were $63.4 million, an increase of $19.5 million, or 44.4%, from 2019.
  • Net income for 2020 was $2.9 million, or $0.18 per diluted share, compared with net income of $0.9 million, or $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 for 2020 versus 2019.

"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 in 2020 and completed an acquisition during the fourth quarter of 2020 to help accelerate our geographic expansion into 2021 and beyond. This acquisition further solidifies DecisionPoint's commitment to innovating, growing, and looking for investment opportunities that create shareholder value and make a difference for our customer' partners and employees. DecisionPoint is committed to providing customers with the best solutions on the market that will create easy, end-to-end support for their entire global operations. Our goal is to continue bringing together the best people, applying the best processes, and combining the best products and services, so we continue to be a relevant and valued partner for our customers while preparing them to meet the demands of tomorrow's tech-driven world. As we look ahead, we are confident our business will continue to thrive over the long-term given the progress we made over the last year and our continued and planned investments."

Balance Sheet and Liquidity

Our cash and accounts receivable were $18.4 million at December 31, 2020, compared to $11.3 million at December 31, 2019. Cash provided by operations in 2020 was $4.2 million, as compared to $2.5 million in 2019.  Overall debt is lower by $1.1 million than it was at the beginning of the year.

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
December 31,



Year Ended
December 31,




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
December 31



Year Ended
December 31




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.


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