Press-Releases

iPower Reports Fiscal Fourth Quarter and Full Year 2023


– Fiscal 2023 Revenue up 12% to Record $88.9 Million, with Cash Flow from Operations of $9.2 Million –

– iPower Management to Host Conference Call Today at 4:30 p.m. Eastern Time –

DUARTE, Calif, Sept. 14, 2023 (GLOBE NEWSWIRE) — iPower Inc. (Nasdaq: IPW) (“iPower” or the “Company”), a tech and data-driven online retailer and supplier of consumer home and garden products, as well as a provider of value-added ecommerce services, today announced financial results for its fiscal fourth quarter and full fiscal year ended June 30, 2023.

Fiscal Q4 2023 Results vs. Year-Ago Quarter 

  • Total revenue increased 6% to $23.4 million as compared to $22.1 million.
  • Gross profit remained flat at $9.1 million, with gross margin of 38.7% as compared to 41.2%.
  • Net loss attributable to iPower was $3.0 million or $(0.10) per share, as compared to net loss of $1.3 million or $(0.05) per share.
  • As of June 30, 2023, net debt (total debt less cash) was reduced by 43% to $8.1 million as compared to net debt of $14.2 million as of June 30, 2022.

Fiscal 2023 Results vs. Fiscal 2022

  • Total revenue increased 12% to $88.9 million as compared to $79.4 million.
  • Gross profit increased 5% to $34.8 million as compared to $33.2 million, with gross margin of 39.1% compared to 41.8%.
  • Net loss attributable to iPower was $12.0 million or $(0.40) per share, as compared to net income of $1.5 million or $0.06 per share. The fiscal 2023 period includes approximately $3 million related to a goodwill impairment incurred earlier in the fiscal year.
  • Cash flow from operations improved significantly to $9.2 million as compared to cash used of $16.6 million.

Management Commentary 

“Fiscal 2023 marked our third consecutive year of double-digit revenue growth driven by consistent, strong demand for our in-house products and continued expansion of our non-hydroponic portfolio,” said Lawrence Tan, CEO of iPower. “Throughout the fiscal year, we emphasized in-house products sales which accounted for over 90% of revenue while continuing to diversify our product offerings beyond hydroponics, which grew to more than 75% of sales in fiscal 2023. We believe that our ability to generate double-digit growth while shifting our product mix into new categories demonstrates our superior product research, design and merchandising capabilities.”

iPower CFO, Kevin Vassily, added, “During the year, we continued to work through high-cost inventory buildup from prior periods, which has weighed on our gross margin in recent quarters. However, we have now sold through most of the excess inventory and expect gross margin to improve in fiscal 2024. With an improved supply chain, normalized inventory levels and continued demand for our in-house products, we believe that we are well positioned to execute on our growth and profitability objectives in fiscal 2024.”

Fiscal Fourth Quarter 2023 Financial Results 

Total revenue in the fiscal fourth quarter of 2023 increased 6% to $23.4 million as compared to $22.1 million for the same period in fiscal 2022. The increase was primarily driven by greater product sales to the Company’s largest channel partner, as well as strong demand for iPower’s non-hydroponic product portfolio which now accounts for over 75% of revenue.        

Gross profit in the fiscal fourth quarter of 2023 remained flat at $9.1 million compared to the same quarter in fiscal 2022. As a percentage of revenue, gross margin was 38.7% as compared to 41.2% in the year-ago period. The decrease in gross margin was primarily driven by a higher cost of goods sold related to inventory that previously incurred higher freight charges, as well as normal variations in product and channel mix.

Total operating expenses in the fiscal fourth quarter of 2023 were $12.0 million as compared to $10.6 million for the same period in fiscal 2022. The increase was driven in part by higher selling, fulfillment, and marketing costs related to the sale of inventory built up in prior quarters.

Net loss attributable to iPower in the fiscal fourth quarter of 2023 was $3.0 million or $(0.10) per share, as compared to a net loss of $1.3 million or $(0.05) per share for the same period in fiscal 2022. The decline was driven in part by the aforementioned higher operating expenses.

Cash and cash equivalents were $3.7 million at June 30, 2023, as compared to $1.8 million at June 30, 2022. Total debt as of June 30, 2023 was $11.8 million as compared to $16.0 million as of June 30, 2022. As a result of the Company’s debt paydown, iPower’s net debt (total debt less cash) position was reduced by 43% to $8.1 million as compared to $14.2 million as of June 30, 2022.

Conference Call 

The Company will hold a conference call today, September 14, 2023, at 4:30 p.m. Eastern Time to discuss the results for its fiscal fourth quarter and full fiscal year ended June 30, 2023.

iPower’s management will host the conference call, which will be followed by a question-and-answer session.

The conference call details are as follows:

Date: Thursday, September 14, 2023
Time: 4:30 p.m. Eastern Time
Dial-in registration link: here
Live webcast registration link: here

Please dial into the conference call 5-10 minutes prior to the start time. If you have any difficulty connecting with the conference call, please contact the Company’s investor relations team at [email protected].

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 a tech and data-driven online retailer and supplier of consumer home and garden products, as well as a provider of value-added ecommerce services for third-party products and brands. iPower offers thousands of stock keeping units from its in-house brands as well as hundreds of other brands through its ecommerce channel partners and its websites, www.zenhydro.com and www.simpledeluxe.com. iPower has a diverse customer base that includes both commercial businesses and individuals. For more information, please visit iPower’s website at www.meetipower.com.

Forward-Looking Statements 

All statements other than statements of historical fact in this press release 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 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 and performance in iPower’s Annual Report on Form 10-K, as filed with the SEC on September 14, 2023, and in its other SEC filings.

Investor Relations Contact:

Sean Mansouri, CFA
Elevate IR
(720) 330-2829
[email protected]

iPower Inc. and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2023 and 2022
 
  June 30,   June 30,
  2023   2022
         
ASSETS          
Current assets          
Cash and cash equivalent $ 3,735,642     $ 1,821,947  
Accounts receivable, net   14,071,543       17,432,287  
Inventories, net   20,593,889       30,433,766  
Other receivable – related party         51,762  
Prepayments and other current assets   2,858,196       5,444,463  
Total current assets   41,259,270       55,184,225  
           
Non-current assets          
Right of use – non-current   7,837,345       10,453,282  
Property and equipment, net   536,418       544,633  
Deferred tax assets   2,155,250        
Non-current prepayments   531,456       925,624  
Goodwill   3,034,110       6,094,144  
Investment in joint venture   33,113       43,385  
Intangible assets, net   4,280,071       4,929,442  
Other non-current assets   427,254       406,732  
Total non-current assets   18,835,017       23,397,242  
           
Total assets $ 60,094,287     $ 78,581,467  
           
LIABILITIES AND EQUITY          
Current liabilities          
Accounts payable   13,244,957       9,533,408  
Credit cards payble   366,781       807,687  
Customer deposit   350,595       273,457  
Other payables and accrued liabilities   4,831,067       5,915,220  
Advance from shareholders   85,200       92,246  
Investment payable         1,500,000  
Lease liability – current   2,159,173       2,582,933  
Long-term promissory note payable – current portion   2,017,852       1,879,065  
Income taxes payable   276,683       299,563  
Total current liabilities   23,332,308       22,883,579  
           
Non-current liabilities          
Long-term revolving loan payable, net   9,791,191       12,314,627  
Long-term promissory note payable, net         1,781,705  
Deferred tax liabilities         939,115  
Lease liability – non-current   6,106,047       8,265,611  
           
Total non-current liabilities   15,897,238       23,301,058  
           
Total liabilities   39,229,546       46,184,637  
           
Commitments and contingency          
           
Stockholders’ Equity          
Preferred stock, $0.001 par value; 20,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2023 and 2022          
Common stock, $0.001 par value; 180,000,000 shares authorized; 29,710,939 and 29,572,382 shares issued and outstanding at June 30, 2023 and 2022   29,712       29,573  
Additional paid in capital   29,624,520       29,111,863  
(Accumulated deficits) Retained earnings   (8,702,442 )     3,262,948  
Non-controlling interest   (24,915 )     (13,232 )
Accumulated other comprehensive income (loss)   (62,134 )     5,678  
Total equity   20,864,741       32,396,830  
           
Total liabilities and equity $ 60,094,287     $ 78,581,467  
iPower Inc. and Subsidiaries
Consolidated Statements of Operations
For the Years Ended June 30, 2023 and 2022
 
  For the Three Months Ended June 30,   For the Years Ended June 30,
  2023   2022   2023   2022
  (Unaudited)   (Unaudited)        
                   
REVENUES $ 23,399,166     $ 22,117,831     $ 88,902,048     $ 79,418,473  
                       
TOTAL REVENUES   23,399,166       22,117,831       88,902,048       79,418,473  
                       
COST OF REVENUES   14,348,668       12,998,903       54,104,587       46,218,580  
                       
GROSS PROFIT   9,050,498       9,118,928       34,797,461       33,199,893  
                       
OPERATING EXPENSES:                      
Selling and fulfillment   8,133,299       6,842,363       32,427,972       19,180,390  
General and administrative   3,913,672       3,767,117       12,792,998       11,707,466  
Impairment loss – goodwill               3,060,034        
Total operating expenses   12,046,971       10,609,480       48,281,004       30,887,856  
                       
(LOSS) INCOME FROM OPERATIONS   (2,996,473 )     (1,490,552 )     (13,483,543 )     2,312,037  
                       
OTHER INCOME (EXPENSE)                      
Interest expenses   (265,497 )     (231,017 )     (1,066,280 )     (458,159 )
Other financing expenses                     (80,010 )
Loss on equity method investment   (1,376 )     5,673       (10,001 )     (6,616 )
Other non-operating income   (306,874 )     210,893       (107,749 )     296,366  
Total other expenses, net   (573,747 )     (14,451 )     (1,184,030 )     (248,419 )
                       
(LOSS) INCOME BEFORE INCOME TAXES   (3,570,220 )     (1,505,003 )     (14,667,573 )     2,063,618  
                       
PROVISION FOR INCOME TAX (BENEFIT) EXPENSE   (605,374 )     (146,570 )     (2,690,500 )     558,975  
NET (LOSS) INCOME   (2,964,846 )     (1,358,433 )     (11,977,073 )     1,504,643  
                       
Non-controlling interest   (2,805 )     (9,162 )     (11,683 )     (13,232 )
                       
NET (LOSS) INCOME ATTRIBUTABLE TO IPOWER INC. $ (2,962,041 )   $ (1,349,271 )   $ (11,965,390 )   $ 1,517,875  
                       
OTHER COMPREHENSIVE LOSS                      
Foreign currency translation adjustments   (21,090 )     8,904       (67,812 )     5,678  
                       
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO IPOWER INC. $ (2,983,131 )   $ (1,340,367 )   $ (12,033,202 )   $ 1,523,553  
                       
WEIGHTED AVERAGE NUMBER OF COMMON STOCK                      
Basic   29,747,497       29,662,448       29,713,354       27,781,493  
                       
Diluted   29,747,497       29,662,448       29,713,354       27,781,493  
                       
(LOSSES) EARNINGS PER SHARE                      
Basic $ (0.100 )   $ (0.045 )   $ (0.403 )   $ 0.055  
                       
Diluted $ (0.100 )   $ (0.045 )   $ (0.403 )   $ 0.055  

IPOWER



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