Notable News Spotlight: PowerFleet, Inc. (NASDAQ: PWFL)

On Tuesday, PowerFleet, Inc. (NASDAQ: PWFL) spotted trading -46.47% off 52-week high price. On the other end, the stock has been noted 78.43% away from the low price over the last 52-weeks. The stock changed -1.09% to recent value of $4.55. The stock transacted 188513 shares during most recent day however it has an average volume of 153.01K shares. The company has 29.18M of outstanding shares and 25.8M shares were floated in the market.

PowerFleet, Inc. (PWFL) stated results for the fourth quarter and full year ended December 31, 2019.

Fourth Quarter 2019 Financial Results
Financial results for the quarter ended December 31, 2019 include consolidated results for both I.D. Systems, Inc. and Pointer Telocation Ltd., which was purchased on October 3, 2019. Financial results for the quarter ended December 31, 2018 include only financial results from I.D. Systems, Inc. previous to its acquisition of Pointer Telocation Ltd.

Total revenue increased to $35.1M from $11.5M in the same year-before period. Services revenue was $18.7M (53.2% of total revenue), contrast to $4.3M (37.6% of total revenue) in the same year-before period. Product revenue was $16.5M (46.8% of total revenue), contrast to $7.2M (62.4% of total revenue) in the same year-before period.

Gross profit increased to $16.6M (47.4% of total revenue) from $6.1M (53.3% of total revenue) in the same year-before period. Service gross profit was $11.6M (62.3% of total service revenue), contrast to $3.1M (70.7% of total service revenue) in the same year-before period. Product gross profit was $5.0M (30.4% of total product revenue), contrast to $3.1M (42.8% of total product revenue) in the same year-before period.

Selling, general and administrative expenses were $12.7M, contrast to $6.2M in the same year-before period. Research and development expenses were $3.0M, contrast to $1.9M in the same year-before period. Depreciation and amortization expenses were $2.0M, contrast to $387,000 in the same year-before period. Severance expenses related to the Pointer acquisition were $1.7M, contrast to no severance expenses in the same year-before period. Acquisition-related expenses were $462,000, contrast to $428,000 in the same year-before period.

Net loss attributable to ordinary stockholders totaled $5.2M or $(0.18) per basic and diluted share (based on 28.6M weighted average shares outstanding), contrast to net loss of $2.8M or $(0.16) per basic and diluted share in the same year-before period (based on 17.6M weighted average shares outstanding).

Adjusted EBITDA, a non-GAAP metric, totaled $2.1M or $0.06 per diluted share (based on 35.5M weighted average shares outstanding), contrast to adjusted EBITDA loss of $595,000 or $(0.03) per basic and diluted share (based on 17.6M weighted average shares outstanding) in the same year-before period (See the section below titled “Non-GAAP Financial Measures” for more information about adjusted EBITDA and its reconciliation to GAAP net income/loss).

At quarter-end, the company had $16.4M in cash and cash equivalents. The company’s working capital position at quarter-end was $29.3M.

Full Year 2019 Financial Results
Financial results for the full year ended December 31, 2019 include financial results from Pointer Telocation Ltd., which was purchased on October 3, 2019. Financial results for the year ended December 31, 2018 include only financial results from I.D. Systems, Inc. previous to its acquisition of Pointer Telocation Ltd.

Total revenue increased to $81.9M from $53.1M in 2018. Services revenue was $36.5M (44.6% of total revenue), contrast to $16.2M (30.5% of total revenue) in 2018. Product revenue was $45.4M (55.4% of total revenue), contrast to $36.9M (69.5% of total revenue) in 2018.

Gross profit increased to $38.4M (46.8% of total revenue) from $25.8M (48.6% of total revenue) in 2018. Services gross profit was $22.9M (62.8% of services revenue), contrast to $11.5M (71.4% of services revenue) in 2018. Product gross profit was $15.4M (34.0% of product revenue), contrast to $14.3M (38.6% of product revenue) in 2018.

Selling, general and administrative expenses were $29.8M, contrast to $22.2M in 2018. Research and development expenses were $8.5M, contrast to $6.9M in 2018. Depreciation and amortization expenses were $3.3M, contrast to $1.6M in 2018. Severance expenses related to the Pointer acquisition were $1.7M, contrast to no severance expenses in 2018. Acquisition-related expenses were $5.1M, contrast to $867,000 in 2018.

Net loss attributable to ordinary stockholders totaled $12.0M or $(0.59) per basic and diluted share (based on $20.5M weighted average shares outstanding), contrast to net loss of $5.8M or $(0.34) per basic and diluted share in 2018 (based on 17.2M weighted average shares outstanding).

Adjusted EBITDA, a non-GAAP metric, totaled $3.2M or $0.14 per diluted share (based on 22.3M weighted average shares outstanding), contrast to adjusted EBITDA loss of $23,000 or $0.00 per basic and diluted share (based on 17.2M weighted average shares outstanding) in 2018 (See the section below titled “Non-GAAP Financial Measures” for more information about adjusted EBITDA and its reconciliation to GAAP net income/loss).

Its earnings per share (EPS) expected to touch remained -74.40% for this year while earning per share for the next 5-years is expected to reach at 30.00%. PWFL has a gross margin of 46.80% and an operating margin of -12.40% while its profit margin remained -14.70% for the last 12 months.   According to the most recent quarter its current ratio was 1.7 that represents company’s ability to meet its current financial obligations. The price moved ahead of -1.57% from the mean of 20 days, 1.45% from mean of 50 days SMA and performed -22.02% from mean of 200 days price. Company’s performance for the week was 1.56%, -2.57% for month and YTD performance remained -30.11%.

 

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