Laser Photonics Announces Fourth Quarter and Full-Year Fiscal 2022 Results
Full-year revenue growth of 18%; Full-year GAAP Net Loss (including $1.9 million of costs tied to IPO) of $1.0 million; Full-year Adjusted EBITDA of $1.2 million (+21%)
ORLANDO, FL / ACCESSWIRE / April 17, 2023 / Laser Photonics Corporation (NASDAQ:LASE), ("LPC"), a leading global developer of CleanTech laser systems for laser cleaning and other material applications, today announced results for its fourth quarter and full-year fiscal ended December 31, 2022.
"The fourth quarter was our first as a public company following our successful early October IPO where we raised net proceeds of $12.9 million," said Wayne Tupuola, chief executive officer of Laser Photonics. "During the quarter, we shipped to several new customers as we continued to introduce our disruptive CleanTech systems to new and potential customers and expand the range of potential applications for our technology."
Select Financial Metrics: Fiscal 2022 versus Fiscal 2021* | ||||||
(in $M except for EPS) | 4Q22 | 4Q21 | Change | FY22 | FY21 | Change |
Revenue | $1.2 | $1.2 | (3.1%) | $5.0 | $4.2 | 18.2% |
Gross Margin | 49.9% | 30.0% | 57.9% | 50.9% | ||
Operating Income (Loss) | ($1.9) | ($0.1) | nm | ($1.0) | $0.6 | nm |
Net Income (Loss) | ($1.9) | $0.0 | nm | ($1.0) | $0.6 | nm |
Diluted Earnings/Loss per Share | ($0.36) | $0.01 | nm | ($0.18) | $0.12 | nm |
Adjusted EBITDA | n/a | n/a | nm | $1.2 | $1.0 | 20.8% |
*numbers may not add due to rounding Nm - non-measurable | ||||||
2023 Commentary
"As we discussed in the SEC filings for our IPO, we plan on making significant investments in 2023 to capture the tremendous market opportunity over the mid to long term for our CleanTech systems. During the fourth quarter, we recognized that we needed to broaden and deepen our executive team to accomplish these goals. The recent hiring of senior executives with relative industry experience now allows us to move forward with our investment plans.
"Given the disruptive nature of our technology and still being in the top of the first inning for laser blasting, we expect to see some lumpiness on a quarter-to-quarter basis. Additionally, when combined with a more uncertain economic environment and a heightened geo-political landscape, we are seeing an elongated sales cycle at many existing and potential customers. Given the recent change at the CFO-level, we are going to postpone providing guidance until we report our first quarter results in about a month," concluded Tupuola.
Conference Call and Webcast Information
Management will host a conference call and webcast to review the Company's results and forward expectations. Investors can submit questions ahead of time to laser@haydenir.com.
Conference Call Date/Time: Monday, April 17, 11:00 a.m. Eastern Time
Toll Free: 1-877-407-3982
Toll/International: 1-201-493-6780
Call me™ Call me™
Participants can use Guest dial-in #s above and be answered by an operator OR click the Call me™ link for instant telephone access to the event. Call me™ link will become active 15 minutes before the scheduled start time.
Webcast Location: https://viavid.webcasts.com/starthere.jsp?ei=1610088&tp_key=de84b3235f
Replay
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 13737159
Replay Start: Monday, April 17, 2023, 2:00 p.m. Eastern Time
Replay Expiry: Monday, April 24, 2023, at 11:59 p.m. Eastern Time
About Laser Photonics Corporation
Laser Photonics is a vertically-integrated manufacturer and R&D Center of Excellence for industrial laser technologies and systems. LPC seeks to disrupt the $46 billion, centuries-old sand and abrasives blasting markets, focusing on surface cleaning, rust removal, corrosion control, de-painting and other laser-based industrial applications. LPC's new generation of leading-edge laser blasting technologies and equipment also addresses the numerous health, safety, environmental, and regulatory issues associated with the old methods. As a result, LPC has quickly gained a reputation as an industry leader for industrial laser systems with a brand that stands for quality, technology and product innovation. Currently, world-renowned and Fortune 1000 manufacturers in the aerospace, automotive, defense, energy, industrial, maritime, space exploration and shipbuilding industries are using LPC's "unique-to-industry" systems. For more information, visit www.laserphotonics.com.
Cautionary Note Concerning Forward-Looking Statements
This press release contains "forward-looking statements" (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), including statements regarding the Company's plans, prospects, potential results and use of proceeds. These statements are based on current expectations as of the date of this press release and involve a number of risks and uncertainties, which may cause results and uses of proceeds to differ materially from those indicated by these forward-looking statements. These risks include, without limitation, those described under the caption "Risk Factors" in the Registration Statement. Any reader of this press release is cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release except as required by applicable laws or regulations.
Laser Photonics Investor Relations Contact:
laser@haydenir.com
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value data)
Year Ended December 31, | ||||||||
2022 | 2021 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 12,181,799 | $ | 615,749 | ||||
Accounts Receivable, Net | 1,347,494 | 84,365 | ||||||
Inventory | 1,693,810 | 1,790,952 | ||||||
Total Current Assets | 15,223,104 | 2,491,066 | ||||||
Other Assets | 72,527 | 3,000 | ||||||
Property, Plant, & Equipment, Net | 627,848 | 698,580 | ||||||
Intangible Assets, Net | 2,939,041 | 3,167,945 | ||||||
Operating Lease Right-of-Use Asset | 832,072 | 499,758 | ||||||
Total Assets | $ | 19,694,592 | $ | 6,860,350 | ||||
Liabilities & Stockholders' Equity | ||||||||
Current Liabilities: | ||||||||
Accounts Payable | $ | 190,386 | $ | 113,443 | ||||
Deferred Revenue | - | 91,775 | ||||||
Current Portion of Operating Lease | 344,510 | 171,757 | ||||||
Loans Payable, Current Portion | - | - | ||||||
Sales Tax Payable | - | 15,456 | ||||||
Total Current Liabilities | 534,897 | 392,431 | ||||||
Long Term Liabilities: | ||||||||
Loans Payable | - | 579,012 | ||||||
Operating Lease Liability, less Current Portion | 487,562 | 328,001 | ||||||
Total Long Term Liabilities | 487,562 | 907,013 | ||||||
Total Liabilities | 1,022,459 | 1,299,444 | ||||||
Stockholders' Equity: | ||||||||
Common Stock Par Value $0.01: 100,000,000 shares authorized; 7,878,419 issued and outstanding as of December 31, 2022; and 4,878,419 issued and outstanding as of December 31, 2021 | 78,783 | 48,783 | ||||||
Additional Paid in Capital | 17,650,520 | 5,242,832 | ||||||
Retained Earnings | 942,830 | 269,291 | ||||||
Total Stockholders' Equity | 18,672,133 | 5,560,906 | ||||||
Total Liabilities & Stockholders' Equity | $ | 19,694,592 | $ | 6,860,350 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(in thousands, except per share data)
3 Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net Sales | $ | 1,164,513 | $ | 1,201,602 | $ | 4,954,689 | $ | 4,190,709 | ||||||||
Cost of Sales | 583,623 | 841,567 | 2,087,703 | 2,059,298 | ||||||||||||
Gross Profit | 580,890 | 360,035 | 2,866,987 | 2,131,411 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Sales & Marketing | 1,426,951 | 125,128 | 1,677,975 | 410,693 | ||||||||||||
General & Administrative | 983,674 | 206,227 | 1,823,643 | 713,339 | ||||||||||||
Depreciation & Amortization | 86,397 | 100,328 | 345,291 | 396,247 | ||||||||||||
Total Operating Expenses | 2,497,022 | 431,682 | 3,846,909 | 1,520,279 | ||||||||||||
Operating Income | (1,916,132 | ) | (71,647 | ) | (979,922 | ) | 611,132 | |||||||||
Other Income (Expenses): | ||||||||||||||||
Interest Expense | - | (6,051 | ) | (24,426 | ) | (49,351 | ) | |||||||||
Other Income | (144 | ) | 119,927 | 6,887 | 22,682 | |||||||||||
Total Other Income (Expense) | (144 | ) | 113,875 | (17,538 | ) | (26,669 | ) | |||||||||
Income (Loss) Before Tax | (1,916,276 | ) | 42,229 | (997,461 | ) | 584,462 | ||||||||||
Tax Provision | (13,825 | ) | - | - | 68 | |||||||||||
Net Income | $ | (1,902,451 | ) | $ | 42,229 | $ | (997,461 | ) | $ | 584,394 | ||||||
Income per Share: | ||||||||||||||||
Basic | $ | (0.36 | ) | $ | 0.01 | $ | (0.18 | ) | $ | 0.12 | ||||||
Fully Diluted | $ | (0.36 | ) | $ | 0.01 | $ | (0.18 | ) | $ | 0.12 | ||||||
Weighted Average Shares Outstanding (December 31, 2021 is reflective of a 1/6 reverse stock split): | ||||||||||||||||
Basic | 7,878,419 | 4,878,419 | 5,628,419 | 4,878,419 | ||||||||||||
Fully Diluted | 8,253,419 | 4,878,419 | 5,726,336 | 4,878,419 | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended December 31, | ||||||||
2022 | 2021 | |||||||
Cash Flows From: | ||||||||
OPERATING ACTIVITIES | ||||||||
Net Income (Loss) | $ | 673,539 | $ | 584,394 | ||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Flow from Operating Activities: | ||||||||
Depreciation & Amortization | 345,291 | 396,247 | ||||||
Net Change, Right-of-Use Asset & Liabilities | - | (28,755 | ) | |||||
Change in Operating Assets & Liabilities: | ||||||||
Accounts Receivable | (1,263,129 | ) | 982,010 | |||||
Inventory | 97,142 | 381,376 | ||||||
Prepaids & Other Current Assets | (69,527 | ) | (3,000 | ) | ||||
Accounts Payable | 76,944 | 57,857 | ||||||
Customer Deposits | (91,775 | ) | (997,633 | ) | ||||
Sales Tax Payable | (15,456 | ) | 2,791 | |||||
Net Cash From (Used In) Operating Activities | (246,971 | 1,375,287 | ||||||
INVESTING ACTIVITIES | ||||||||
Purchase of Equipment | - | (2,750 | ) | |||||
Purchase of Computers | (16,826 | ) | - | |||||
Purchase of Furniture | (24,634 | ) | - | |||||
Purchase of Vehicles | - | - | ||||||
Purchase of R&D Equipment | - | (6,920 | ) | |||||
Purchase of Intangible Assets | (4,195 | (219,795 | ) | |||||
Net Cash From (Used In) Investing Activities | (45,655 | (229,465 | ) | |||||
FINANCING ACTIVITIES | ||||||||
Proceeds from (Repayment of) Notes | (261,684 | ) | (665,084 | ) | ||||
Proceeds from (Repayment of) PPP Loan | (317,328 | ) | 118,578 | |||||
Dividends Paid | - | (310,280 | ) | |||||
Proceeds from Sale of Common Stock | 12,437,688 | - | ||||||
Net Cash From (Used In) Financing Activities | 11,858,676 | (856,786 | ) | |||||
Net Cash Flow for Period | $ | 11,566,050 | $ | 289,036 | ||||
Cash - Beginning of Period | 615,749 | 326,713 | ||||||
Cash - End of Period | $ | 12,181,799 | $ | 615,749 | ||||
EBITDA and Adjusted EBITDA as a Non-GAAP Measure
EBITDA. EBITDA is a non-GAAP financial measure used by management, lenders, and certain investors as a supplemental measure in the evaluation of some aspects of a corporation's financial position and core operating performance. Investors sometimes use EBITDA, as it allows for some level of comparability of profitability trends between those businesses differing as to capital structure and capital intensity by removing the impacts of depreciation and amortization. EBITDA also does not include changes in major working capital items, such as receivables, inventory and payables, which can also indicate a significant need for, or source of, cash. Since decisions regarding capital investment and financing and changes in working capital components can have a significant impact on cash flow, EBITDA is not necessarily a good indicator of a business's cash flows. We use EBITDA for evaluating the relative underlying performance of our core operations and for planning purposes. We calculate EBITDA by adjusting net income to exclude net interest expense, income tax expense or benefit, depreciation and amortization, thus the term "Earnings Before Interest, Taxes, Depreciation and Amortization" and the acronym "EBITDA."
ADJUSTED EBITDA. Adjusted EBITDA is defined as comprehensive income (loss) as reported in our consolidated statements of income excluding the impact of (i) interest expense; (ii) income tax provision; (iii) depreciation and amortization; (iv) stock-based compensation expense; (v) accretion of debt discounts; (vi) other income - forgiveness of Paycheck Protection Program loan; (vii) other financing costs; (viii) loss on extinguishment of debt; (ix) warrant inducement expense; (x) amortization of right-of-use assets; and (xi) change in fair value of derivative liabilities. Our Adjusted EBITDA measure eliminates potential differences in performance caused by variations in capital structures (affecting finance costs), tax positions, the cost and age of tangible assets (affecting relative depreciation expense) and the extent to which intangible assets are identifiable (affecting relative amortization expense). We also exclude certain one-time costs associated with our IPO and non-cash costs.
Year Ended | ||||||||
December 31, | ||||||||
2022 | 2021 | |||||||
Reconciliation of EBITDA: | ||||||||
Net Income (Loss) | $ | (997,461 | ) | $ | 584,394 | |||
Add (deduct): | ||||||||
Interest expense | 24,426 | 49,351 | ||||||
Taxes | 0 | 68 | ||||||
Other | - | - | ||||||
Depreciation & Amortization | 345,291 | 396,247 | ||||||
EBITDA(1) | $ | (627,744 | ) | $ | 1,030,060 | |||
Other adjustments related to the IPO expenses | 1,872,119 | - | ||||||
Adjusted EBITDA(2) | $ | 1,244,375 | $ | 1,030,060 | ||||
SOURCE: Laser Photonics Corp.
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