I.D. Systems, Inc.
(NASDAQ:
IDSY), a leading
provider of enterprise asset management and Industrial Internet of
Things (IoT) technology, reported results for the second quarter
ended June 30, 2019.
Management Commentary“The second quarter of
2019 continued the acceleration of our growth strategy, as we
delivered another quarter of solid results, highlighted by record
revenue, which was up 20% sequentially,” said I.D. Systems’ CEO
Chris Wolfe. “Our financial success was driven by consistent sales
execution across our business, building on the operational momentum
we’ve experienced over the last several quarters.
“The second quarter also marked another milestone period in our
Logistics Visibility Solutions business, where we successfully
integrated the CarrierWeb U.S. assets. With the addition of a
comprehensive refrigerated telemetry product to our suite, we have
substantially bolstered our ability to more effectively sell into
mixed dry van and reefer fleets. In fact, we have several
refrigerated pilots underway, representing a
multi-million-dollar-unit opportunity in total. Additionally, we
secured multiple LVS wins during the period, including deals with
SNL Transportation for in-cab and AIM for chassis tracking, the
latter of which is a 2,700-unit order scheduled to roll out in Q3
2019. We also commercially released our award-winning LV Series
Platform and are actively taking initial orders from several large
enterprise customers. Pilots and field trials of our LV-series
platforms represent significant sales opportunities for our
company.
“It was another productive period in our Industrial Truck
Management business as well. We are off to an encouraging start
with our new partner Jungheinrich, having successfully white
labeled our SaaS solution for them, developed Jungheinrich specific
hardware and began shipping initial units to customers. Beyond this
partnership, we also secured multiple new wins and follow-on orders
across all our geographies. We believe our success demonstrates the
growing demand for I.D. Systems’ solutions and how our technology
empowers our customers to effectively manage their assets, keep
their people safe, and optimize productivity.
“In our rental fleet business, we delivered 18,000 telemetry
units to Avis Budget Group during the second quarter, which was
ahead of schedule. We also made significant progress on the
remaining development programs and began planning for the
certification of Avis-vehicles in Europe, which we expect to
commence in the third quarter. We are encouraged by our initial
success and the positive feedback we’ve received from Avis, giving
us confidence in the near- and long-term prospects for the
relationship as well as the overall opportunity for our connected
car business.
“An integral part of our success with Avis is our collaboration
with Pointer, who is currently assembling the 75,000+ telemetry
units on our behalf. We are also working closely with the Pointer
team on integration planning to ensure a seamless transition once
the acquisition is closed. The special shareholder meeting is
scheduled for August 29 and we expect to close the transaction in
October.
“Our vision of creating PowerFleet, a leading global IoT
telematics software and solutions provider is materializing. We
believe our ability to achieve this vision will translate to
significant shareholder value through global scale, an elevated
market position, sustainable profitability and cash flow
generation.”
Second Quarter 2019
Financial ResultsRevenue
increased 20% to a record $16.3 million from $13.6 million in the
prior quarter and increased 10% from $14.8 million in same year-ago
period.
Product revenue was $10.6 million compared to $10.8 million in
same year-ago period. The decrease in product revenue was due to
the timing of unit and program deliveries with Avis, which will
vary from year-to-year.
Services revenue was $5.6 million compared to $4.0 million in
same year-ago period. The increase in services revenue was due to
increased high-margin recurring revenue and additional development
services revenue related to the 75,000-unit order from Avis.
Recurring revenue increased 10% to $5.4 million from $5.0
million in the same year-ago period. The company expects growth in
recurring revenue to continue as every unit sold comes with a
long-term recurring revenue contract.
Gross profit increased 10% to $7.1 million (43.4% of total
revenue) from $6.4 million (43.3% of total revenue) in the same
year-ago period. The increase in gross profit was primarily due to
an increase in high-margin recurring revenue.
Selling, general and administrative expenses were $6.0 million,
compared to $5.8 million in the same year-ago period. The increase
in selling, general and administrative expenses was primarily due
to the inclusion of expenses from CarrierWeb U.S., which were
absent in the same period a year ago.
Research and development expenses were $2.0 million, compared to
$1.5 million in the same year-ago period. The increase in research
and development expenses was due to development work on 2019 Avis
approved programs and additional development discovered during
LV-series field trials, as well as the inclusion of R&D
expenses from CarrierWeb U.S., which were absent in the same period
a year ago.
Acquisition-related expenses were $1.6 million, compared to
$149,000 in the same year-ago period. The increase was primarily
due to the acquisition-related expenses related to the pending
acquisition of Pointer Telocation (announced on March 13,
2019).
Net loss totaled $2.6 million or $(0.15) per basic and diluted
share (based on 17.7 million weighted average shares outstanding),
compared to net loss of $1.1 million or $(0.07) per basic and
diluted share in the same year-ago period (based on 17.1 million
weighted average shares outstanding).
Adjusted EBITDA, a non-GAAP metric, totaled $129,000 or $0.01
per basic and diluted share (based on 17.7 million weighted average
shares outstanding), compared to adjusted EBITDA of $290,000 or
$0.02 per basic and diluted share (based on 17.1 million weighted
average shares outstanding) in the same year-ago 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 $8.4 million in cash and cash
equivalents.
Investor Conference
CallI.D. Systems management will discuss these
results and business outlook on a conference call today (Thursday,
August 1, 2019) at 4:45 p.m. Eastern time (1:45 p.m. Pacific
time).
CEO Chris Wolfe and CFO Ned Mavrommatis will host
the call, followed by a question and answer session where sell-side
analysts and major institutional shareholders can ask
questions.
U.S. dial-in: (877) 307-1379
International dial-in: (443) 877-4066
Passcode: 6249189
The conference call will be broadcast
simultaneously and available for replay in the investor section of
the company’s website at www.id-systems.com.
If you have any difficulty connecting with the conference call,
please contact I.D. Systems’ investor relations team at (949)
574-3860.
Non-GAAP Financial
MeasuresTo supplement its financial statements
presented in accordance with Generally Accepted Accounting
Principles (GAAP), I.D. Systems provides certain non-GAAP measures
of financial performance. These non-GAAP measures include adjusted
EBITDA and adjusted EBITDA per basic and diluted share. Reference
to these non-GAAP measures should be considered in addition to
results prepared under current accounting standards, but are not a
substitute for, or superior to, GAAP results. These non-GAAP
measures are provided to enhance investors’ overall understanding
of I.D. Systems’ current financial performance. Specifically, I.D.
Systems believes the non-GAAP measures provide useful information
to both management and investors by excluding certain expenses,
gains and losses that may not be indicative of its core operating
results and business outlook. Because I.D. Systems’ method for
calculating the non-GAAP measures may differ from other companies’
methods, the non-GAAP measures may not be comparable to similarly
titled measures reported by other companies. Reconciliation of all
non-GAAP measures included in this press release to the nearest
GAAP measures can be found in the financial tables included in this
press release.
I.D. Systems, Inc. and
SubsidiariesReconciliation of GAAP to Adjusted
EBITDA Financial Measures(Unaudited)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
common stockholders |
|
$ |
(1,116,000 |
) |
|
$ |
(2,585,000 |
) |
|
$ |
(2,106,000 |
) |
|
$ |
(4,779,000 |
) |
Interest (income) expense,
net |
|
|
(15,000 |
) |
|
|
18,000 |
|
|
|
(35,000 |
) |
|
|
(27,000 |
) |
Other (income) expense,
net |
|
|
11,000 |
|
|
|
8,000 |
|
|
|
44,000 |
|
|
|
46,000 |
|
Depreciation and
amortization |
|
|
389,000 |
|
|
|
470,000 |
|
|
|
782,000 |
|
|
|
852,000 |
|
Stock-based compensation |
|
|
595,000 |
|
|
|
601,000 |
|
|
|
1,089,000 |
|
|
|
1,184,000 |
|
Foreign currency
translation |
|
|
277,000 |
|
|
|
4,000 |
|
|
|
96,000 |
|
|
|
30,000 |
|
Acquisition related
expenses |
|
|
149,000 |
|
|
|
1,613,000 |
|
|
|
328,000 |
|
|
|
3,062,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
$ |
290,000 |
|
|
$ |
129,000 |
|
|
$ |
198,000 |
|
|
$ |
368,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted
EBITDA per share - basic and diluted |
|
$ |
0.02 |
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
0.02 |
|
About I.D. Systems Headquartered in Woodcliff
Lake, New Jersey, with subsidiaries in Texas, Florida, Germany and
the United Kingdom, I.D. Systems is a leading global provider of
wireless M2M solutions for securing, controlling, tracking, and
managing high-value enterprise assets such as industrial vehicles,
rental cars, trailers, containers, and cargo. The company’s
patented technologies address the needs of organizations to monitor
and analyze their assets to increase efficiency and productivity,
reduce costs, and improve profitability. For more information,
please visit www.id-systems.com, the content of which does not form
a part of this press release.
Cautionary Note Regarding Forward-Looking
StatementsThis press release contains forward looking
statements within the meaning of federal securities laws.
Forward-looking statements include statements with respect to I.D.
Systems’ beliefs, plans, goals, objectives, expectations,
anticipations, assumptions, estimates, intentions, and future
performance, as well as the timing of the completion of the
proposed transaction with Pointer, and involve known and unknown
risks, uncertainties and other factors, which may be beyond I.D.
Systems’ control, and which may cause its actual results,
performance or achievements to be materially different from future
results, performance or achievements expressed or implied by such
forward-looking statements. All statements other than statements of
historical fact are statements that could be forward-looking
statements. For example, forward-looking statements include
statements regarding: prospects for additional customers; potential
contract values; market forecasts; projections of earnings,
revenues, synergies, accretion or other financial information;
emerging new products; and plans, strategies and objectives of
management for future operations, including growing revenue,
controlling operating costs, increasing production volumes, and
expanding business with core customers. The risks and uncertainties
referred to above include, but are not limited to, future economic
and business conditions, the loss of key customers or reduction in
the purchase of products by any such customers, the failure of the
market for I.D. Systems’ products to continue to develop, the
possibility that I.D. Systems may not be able to integrate
successfully the business, operations and employees of acquired
businesses, the inability to protect I.D. Systems’ intellectual
property, the inability to manage growth, the effects of
competition from a variety of local, regional, national and other
providers of wireless solutions, risks related to the proposed
transactions between I.D. Systems and Pointer, including the
inability to complete the proposed transaction with Pointer for any
reason, and other risks detailed from time to time in I.D. Systems’
filings with the Securities and Exchange Commission, including its
annual report on Form 10-K for the year ended December 31, 2018.
These risks could cause actual results to differ materially from
those expressed in any forward-looking statements made by, or on
behalf of, I.D. Systems. Unless otherwise required by applicable
law, I.D. Systems assumes no obligation to update the information
contained in this press release, and expressly disclaims any
obligation to do s .,o, whether as a result of new information,
future events or otherwise.
I.D. Systems Com pany Contact Ned Mavrommatis,
CFO ned@id-systems.com (201) 996-9000
I.D. Systems Investor Contact Matt Glover
Gateway Investor Relations IDSY@gatewayIR.com (949)
574-3860
I.D. Systems, Inc. and
SubsidiariesCondensed Consolidated Statements of
Operations Data(Unaudited)
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
$ |
10,784,000 |
|
|
$ |
10,643,000 |
|
|
$ |
20,682,000 |
|
|
$ |
17,892,000 |
|
Services |
|
|
4,025,000 |
|
|
|
5,631,000 |
|
|
|
7,506,000 |
|
|
|
11,993,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,809,000 |
|
|
|
16,274,000 |
|
|
|
28,188,000 |
|
|
|
29,885,000 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products |
|
|
7,408,000 |
|
|
|
7,062,000 |
|
|
|
13,250,000 |
|
|
|
11,301,000 |
|
Cost of services |
|
|
986,000 |
|
|
|
2,141,000 |
|
|
|
2,061,000 |
|
|
|
4,495,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,394,000 |
|
|
|
9,203,000 |
|
|
|
15,311,000 |
|
|
|
15,796,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
6,415,000 |
|
|
|
7,071,000 |
|
|
|
12,877,000 |
|
|
|
14,089,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
5,844,000 |
|
|
|
5,993,000 |
|
|
|
11,361,000 |
|
|
|
12,103,000 |
|
Research and development expenses |
|
|
1,542,000 |
|
|
|
2,024,000 |
|
|
|
3,285,000 |
|
|
|
3,684,000 |
|
Acquisition-related expenses |
|
|
149,000 |
|
|
|
1,613,000 |
|
|
|
328,000 |
|
|
|
3,062,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,535,000 |
|
|
|
9,630,000 |
|
|
|
14,974,000 |
|
|
|
18,849,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(1,120,000 |
) |
|
|
(2,559,000 |
) |
|
|
(2,097,000 |
) |
|
|
(4,760,000 |
) |
Interest income |
|
|
74,000 |
|
|
|
8,000 |
|
|
|
151,000 |
|
|
|
73,000 |
|
Interest expense |
|
|
(59,000 |
) |
|
|
(26,000 |
) |
|
|
(116,000 |
) |
|
|
(46,000 |
) |
Other expense, net |
|
|
(11,000 |
) |
|
|
(8,000 |
) |
|
|
(44,000 |
) |
|
|
(46,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,116,000 |
) |
|
$ |
(2,585,000 |
) |
|
$ |
(2,106,000 |
) |
|
$ |
(4,779,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share -
basic and diluted |
|
$ |
(0.07 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic and diluted |
|
|
17,066,000 |
|
|
|
17,678,000 |
|
|
|
17,024,000 |
|
|
|
17,650,000 |
|
I.D. Systems, Inc. and
SubsidiariesCondensed Consolidated Balance Sheet
Data
|
|
December 31, 2018 |
|
|
June 30, 2019 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
10,159,000 |
|
|
$ |
8,098,000 |
|
Restricted cash |
|
|
307,000 |
|
|
|
307,000 |
|
Investments - short term |
|
|
394,000 |
|
|
|
- |
|
Accounts receivable, net of allowance for doubtful accounts |
|
|
9,247,000 |
|
|
|
11,026,000 |
|
Financing receivables - current, net of allowance for doubtful
accounts |
|
|
1,036,000 |
|
|
|
782,000 |
|
Inventory, net |
|
|
4,649,000 |
|
|
|
6,986,000 |
|
Deferred costs - current |
|
|
3,660,000 |
|
|
|
3,800,000 |
|
Prepaid expenses and other current assets |
|
|
3,208,000 |
|
|
|
2,945,000 |
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
32,660,000 |
|
|
|
33,944,000 |
|
|
|
|
|
|
|
|
|
|
Investments - long term |
|
|
4,131,000 |
|
|
|
- |
|
Financing receivables - less
current portion |
|
|
1,254,000 |
|
|
|
1,291,000 |
|
Deferred costs - less current
portion |
|
|
5,409,000 |
|
|
|
5,878,000 |
|
Fixed assets, net |
|
|
2,149,000 |
|
|
|
2,166,000 |
|
Goodwill |
|
|
7,318,000 |
|
|
|
8,373,000 |
|
Intangible assets, net |
|
|
4,705,000 |
|
|
|
6,259,000 |
|
Right of use asset |
|
|
- |
|
|
|
2,004,000 |
|
Other assets |
|
|
177,000 |
|
|
|
497,000 |
|
|
|
$ |
57,803,000 |
|
|
$ |
60,412,000 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
8,027,000 |
|
|
$ |
11,605,000 |
|
Deferred revenue - current |
|
|
7,902,000 |
|
|
|
8,366,000 |
|
Acquisition related contingent consideration payable |
|
|
946,000 |
|
|
|
993,000 |
|
Lease liability - current |
|
|
- |
|
|
|
831,000 |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
16,875,000 |
|
|
|
21,795,000 |
|
|
|
|
|
|
|
|
|
|
Deferred revenue - less
current portion |
|
|
9,186,000 |
|
|
|
9,416,000 |
|
Lease liability - less current
portion |
|
|
- |
|
|
|
1,341,000 |
|
Deferred rent |
|
|
208,000 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
26,269,000 |
|
|
|
32,552,000 |
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Preferred stock |
|
|
- |
|
|
|
- |
|
Common stock |
|
|
192,000 |
|
|
|
195,000 |
|
Additional paid-in
capital |
|
|
138,693,000 |
|
|
|
140,051,000 |
|
Accumulated deficit |
|
|
(101,180,000 |
) |
|
|
(105,959,000 |
) |
Accumulated other
comprehensive loss |
|
|
(435,000 |
) |
|
|
(446,000 |
) |
Treasury stock |
|
|
(5,736,000 |
) |
|
|
(5,981,000 |
) |
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
31,534,000 |
|
|
|
27,860,000 |
|
Total liabilities and stockholders’ equity |
|
$ |
57,803,000 |
|
|
$ |
60,412,000 |
|
* Derived from audited balance sheet as of December 31,
2018.
I.D. Systems, Inc. and
SubsidiariesCondensed Consolidated Statements of
Cash Flow Data(Unaudited)
|
|
Six Months Ended June 30, |
|
|
2018 |
|
|
2019 |
|
Cash flows from
operating activities: (net of assets acquired) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,106,000 |
) |
|
$ |
(4,779,000 |
) |
Adjustments to reconcile net
loss to cash used in operating activities: |
|
|
|
|
|
|
|
Bad debt expense |
|
|
4,000 |
|
|
|
110,000 |
|
Stock-based compensation expense |
|
|
1,089,000 |
|
|
|
1,184,000 |
|
Depreciation and amortization |
|
|
782,000 |
|
|
|
852,000 |
|
Inventory reserve |
|
|
140,000 |
|
|
|
93,000 |
|
Change in contingent consideration |
|
|
112,000 |
|
|
|
47,000 |
|
Other non-cash items |
|
|
4,000 |
|
|
|
(11,000 |
) |
Changes in: |
|
|
|
|
|
|
|
Accounts receivable |
|
|
(3,205,000 |
) |
|
|
(1,697,000 |
) |
Financing receivables |
|
|
363,000 |
|
|
|
217,000 |
|
Inventory |
|
|
582,000 |
|
|
|
(2,231,000 |
) |
Prepaid expenses and other assets |
|
|
(1,156,000 |
) |
|
|
270,000 |
|
Deferred costs |
|
|
(95,000 |
) |
|
|
(609,000 |
) |
Deferred revenue |
|
|
(124,000 |
) |
|
|
694,000 |
|
Accounts payable and accrued expenses |
|
|
299,000 |
|
|
|
3,578,000 |
|
Net cash used in operating activities |
|
|
(3,311,000 |
) |
|
|
(2,282,000 |
) |
Cash flows from
investing activities: |
|
|
|
|
|
|
|
Acquisitions |
|
|
- |
|
|
|
(3,800,000 |
) |
Capital expenditures |
|
|
(150,000 |
) |
|
|
(396,000 |
) |
Purchase of investments |
|
|
(1,963,000 |
) |
|
|
(99,000 |
) |
Proceeds from the sale and
maturities of investments |
|
|
3,915,000 |
|
|
|
4,638,000 |
|
Net cash provided by investing activities |
|
|
1,802,000 |
|
|
|
343,000 |
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
Proceeds from exercise of
stock options |
|
|
190,000 |
|
|
|
177,000 |
|
Common stock repurchased -
vesting of restricted stock |
|
|
(456,000 |
) |
|
|
(245,000 |
) |
Net cash used in financing activities |
|
|
(266,000 |
) |
|
|
(68,000 |
) |
Effect of foreign exchange
rate changes on cash and cash equivalents |
|
|
71,000 |
|
|
|
(54,000 |
) |
Net decrease in cash,
cash equivalents and restricted cash |
|
|
(1,704,000 |
) |
|
|
(2,061,000 |
) |
Cash, cash equivalents and
restricted cash - beginning of period |
|
|
5,403,000 |
|
|
|
10,466,000 |
|
Cash, cash equivalents
and restricted cash - end of period |
|
$ |
3,699,000 |
|
|
$ |
8,405,000 |
|
|
|
|
|
|
|
|
|
I D Systems (NASDAQ:IDSY)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
I D Systems (NASDAQ:IDSY)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024