WOODCLIFF LAKE, N.J., Aug. 06, 2020 (GLOBE NEWSWIRE) -- PowerFleet, Inc. (Nasdaq: PWFL), a global leader and provider of subscription-based wireless IoT and M2M solutions for securing, controlling, tracking, and managing high-value enterprise assets, reported results for the second quarter ended June 30, 2020.

Second Quarter Financial and Operational Highlights

• Generated $25.8 million in total revenue, including $16.4 million (63.5% of total revenue) of high margin, recurring and services revenue
• Produced $4.4 million in operating cash for the first six months of 2020
• Maintained healthy on-air subscriber units at over 550,000
• Maintained solid liquidity position with $21.5 million in cash and cash equivalents and $28.9 million of working capital

Management Commentary

“Our performance for the second quarter was solid, especially given the headwinds and challenges presented by COVID-19,” said CEO Chris Wolfe. “We delivered solid top- and bottom-line results, including $25.8 million in revenue, $2.1 million in adjusted EBITDA and $1.7 million in operating cash flow, again demonstrating the resiliency of our financial model.

“Despite the slowdown globally in Q2, we signed several significant deals in our Logistics business, including wins with Rusken Packaging and Day & Ross, one of Canada’s largest fleets. These combined multi-million-dollar deals started shipping in June and July. We also extended and expanded our strategic partnership with Jungheinrich, which continues to exceed expectations. Since launching our white-labeled enterprise solution with Jungheinrich a year ago, sales were 40% higher than planned. We look forward to building on our partnership’s momentum by pursuing new market opportunities for both companies.

“While our business continues to operate according to our post-COVID plan, we are also encouraged by the strength of our financial foundation. Our subscriber base of more than 550,000 has remained very resilient. Our optimized cost-structure coupled with the $21.5 million in cash on our balance sheet, gives us confidence that we will not only weather this storm but come out stronger when the situation recovers. In the face of today’s uncertain and constantly evolving environment, we remain confident in our ability to extend our position as one of the leading global B2B mobile fleet and asset management companies.”

Second Quarter 2020 Financial Results
Financial results for the quarter ended June 30, 2020 include consolidated results for both I.D. Systems, Inc. and Pointer Telocation Ltd., which was acquired on October 3, 2019. Financial results for the quarter ended June 30, 2019 include only financial results from I.D. Systems, Inc. prior to its acquisition of Pointer Telocation Ltd.

Total revenue increased to $25.8 million from $16.3 million in the same year-ago period. Services revenue was $16.4 million (63.5% of total revenue), compared to $5.6 million (34.6% of total revenue) in the same year-ago period. Product revenue was $9.4 million (36.5% of total revenue), compared to $10.6 million (65.4% of total revenue) in the same year-ago period.

Gross profit increased to $14.0 million (54.5% of total revenue) from $7.1 million (43.5% of total revenue) in the same year-ago period. Service gross profit was $10.7 million (65.2% of total service revenue), compared to $3.5 million (62.0% of total service revenue) in the same year-ago period. Product gross profit was $3.4 million (35.9% of total product revenue), compared to $3.6 million (33.6% of total product revenue) in the same year-ago period.

Selling, general and administrative expenses were $10.3 million, compared to $5.6 million in the same year-ago period. Research and development expenses were $2.6 million, compared to $2.0 million in the same year-ago period. Depreciation and amortization expenses were $1.8 million, compared to $443,000 in the same year-ago period.

Net loss attributable to common stockholders totaled $3.8 million or $(0.13) per basic and diluted share (based on 29.4 million weighted average shares outstanding), compared to net loss of $2.6 million or $(0.15) per basic and diluted share in the same year-ago period (based on 17.7 million weighted average shares outstanding).

Adjusted EBITDA, a non-GAAP metric, totaled $2.1 million, compared to adjusted EBITDA of $129,000 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 $21.5 million in cash and cash equivalents. The company’s working capital position at quarter-end was $28.9 million.

Termination of At-the-Market (ATM) Equity Offering Program
The Company has elected to terminate its “at-the-market” equity offering program (“ATM Facility”). The Company initiated the 10-day termination process of the ATM Facility with Canaccord Genuity on August 4, 2020, with the official termination to take effect August 14, 2020. The Company will make no further sales of shares under the ATM Facility. Upon the announcement of the initiation of the ATM Facility’s termination process, the Company had sold 809,846 shares raising approximately $4.2 million in gross proceeds. The Company currently expects to use the proceeds from the ATM Facility to pay down high interest-rate debt.

About PowerFleetPower

Fleet®, Inc. (NASDAQ: PWFL; TASE: PWFL) is a global leader and provider of subscription-based wireless IoT and M2M solutions for securing, controlling, tracking, and managing high-value enterprise assets such as industrial trucks, tractor trailers, containers, cargo, and vehicles and truck fleets. The company is headquartered in Woodcliff Lake, New Jersey, with offices located around the globe. PowerFleet’s patented technologies address the needs of organizations to monitor and analyze their assets to increase efficiency and productivity, reduce costs, and improve profitability. Our offerings are sold under the global brands PowerFleet, Pointer, and Cellocator. For more information, please visit www.powerfleet.com, the content of which does not form a part of this press release.