DecisionPoint Systems Announces Fourth Quarter and Full-Year 2022 Results

Full-year revenue increased 48% to a record $97.4 million

Full-year GAAP net income of $3.1 million (+120%) and diluted EPS of $0.41 (+117%)

Full-year non-GAAP EPS of $0.54 (+165%) and adjusted EBITDA of $7.8 million (+152%)

DecisionPoint™ Systems, Inc. (NYSE:DPSI), a mobility-first enterprise services and solutions company, today announced fourth quarter and full-year 2022 financial results ended December 31, 2022.

"We had a record year and created significant value for shareholders, demonstrating the potency of our strategy and our ability to execute on our playbook, even in challenging macro-economic backdrop," said Steve Smith, chief executive officer. "We saw strength across our businesses, with significant upside driven by multiple new projects from long-term and new customers. Additionally, our strategy for growing our services, software and consumables revenue, which are more recurring in nature, yielded a 19% increase for the year and drove higher gross margins. Finally, these factors, combined with our ability to integrate the two acquisitions we made during the year quickly, led to adjusted EBITDA of $7.8 million, above the high-end of our guidance."

Fourth Quarter Highlights (2022 versus 2021)

• Revenue increased 48.5% to $24.5 million;
• Gross Profit increased 67.6% to $6.3 million;
• GAAP Net Income and diluted EPS increased to $0.4 million and $0.07, respectively;
• Non-GAAP Net Income and non-GAAP diluted EPS increased 113.0% and 181.7% to $0.7 million and $0.10, respectively;
• Adjusted EBITDA increased 274.0% to $1.8 million;

Full-Year Highlights (2022 versus 2021)

• Revenue increased 47.7% to $97.4 million;
• Gross Profit increased 50.9% to $23.1 million;
• GAAP Net Income and diluted EPS increased to $3.1 million and $0.41, respectively;
• Non-GAAP Net Income and non-GAAP diluted EPS increased 164.3% and 165.4% to $4.1 million and $0.54, respectively;
• Adjusted EBITDA increased 151.6% to $7.8 million;
• Backlog as of December 31, 2022, was $30.3 million.

Balance Sheet and Liquidity as of December 31, 2022

Cash and cash equivalents were $7.6 million, compared to $2.6 million on December 31, 2021. Long-term debt was $0.1 million, roughly flat to December 31, 2021.

Net cash from operating activities was $12.3 million compared to $2.4 million in 2021.

2023 Commentary and First Quarter Guidance (ending 3/31/23)

"Over the remainder of the year, we expect to grow our recurring revenue businesses, including services and consumables, book new project orders and acquire at least one company to drive top and bottom-line growth in 2023. Additionally, we have made and will continue to increase investments into developing our intellectual property core, including our Vision portal for managed service delivery, which we believe is a competitive differentiator in the market. Finally, we made some recent additions to our team of sales and business development professionals, which we believe enhances our already solid foundation for continued growth in 2023 and beyond," concluded Smith.

Conference Call and Webcast Information

Management will host an earnings conference call and webcast at 11:00 a.m. Eastern Time. Q&A with investors will follow management's presentation of the results, outlook and strategy.

Live Call Information:

Date: March 29, 2023

Time: 11:00 a.m. Eastern Time

Toll-Free: 1-877-407-3982

Toll/International: 1-201-493-6780

Call me™: Click Call me Link for instant telephone access to the event (Call me™ link will be made active 15 minutes prior to the scheduled start time).

Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1606515&tp_key=37450f0c29

Replay Information:

Toll-Free: 1-844-512-2921

Toll/International: 1-412-317-6671

Replay Pin Number: 13737455

Replay Start: Wednesday, March 29, 2023, 2:00 p.m. ET

Replay Expiry: Wednesday, April 05, 2023, 11:59 p.m. ET

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 https://www.decisionpt.com.

Forward-Looking Statements

In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate, "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

Trended Financial Information

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements presented on a GAAP basis, we have provided non-GAAP financial information, namely non-GAAP Net Income, non-GAAP diluted EPS and Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization adjusted for transaction-related and non-recurring items). We believe that these non-GAAP measures provide investors with a better understanding of how the results relate to our historical performance as well as when comparing our results to other publicly-traded companies. The additional adjusted information is not meant to be considered in isolation or as a substitute for GAAP financials. Management believes that these adjusted measures reflect the essential operating activities of the Company. A reconciliation of non-GAAP financial information appears below:

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