Earnings call transcript Q4 2022

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Operator

Good morning everyone and welcome to the Minim Reports Fourth Quarter and Full Year 2022 Financial Results Conference Call.

All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today’s presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one using a touchtone telephone. you star question, two. your withdraw may and press To

recorded. event Please today’s being also note is

At like go time, James this I’d Carbonara, over conference Investor to call Relations. Please ahead. to turn the

James Carbonara

welcome Officer. Thank you, XXXX call. and Patel, me With Dustin Minim’s Mehul and the are Executive full earnings call to on Chief and year QX Tacker, again once Officer, Chief Financial

company’s for reminder, live presentation the all on ir.minim.com. at materials today’s investor a website As available relations are

today’s conference want I to that forward-looking remind begin, may we statements. call everyone Before contain

include statements margins, materially these statements or outlook. regarding Forward-looking by expected the could revenue, expenses Actual future, operating differ trends business contemplated statements. including from those and future forward-looking results

expressed and which filed with forward-looking contained such well to a the company Form time actual XX-K, as factors report or and statements, of other please For in files see reports in those as in on could on implied the the uncertainties annual Commission. Exchange discussion that the subsequent Form XX-Q, company’s time Securities from reports risk in results risks cause detailed from to differ

Please utilizes note company’s the most analyze call too most the A use with SEC. include measures numbers press available comparable recent performance. as non-GAAP of to to reconciliation such the in release, filings that periodic numbers GAAP that of non-GAAP our as the is today’s management may in well

Mehul, of like would proceed. Minim. CEO I to Now please Patel, over turn call Mehul the to

Mehul Patel

Thanks year to James. XXXX conference QX morning Good and welcome call. Minim’s full and

realities align improve our number of to the position, our and steps advance better of capital At initiated with market. working consumer the a midyear, we competitive business management,

more intelligent portfolio, exited balance and product an distribution we channel, ecommerce result, robust a XXXX improved sheet. with a As all

supply end, retailers a to combat evenly the decline for were XX%, of year risks. traditional operating was annual up cost actions through Subsequent goods economic challenging XX.X% X% approximately Fourth $XX.X and of reduction $XX.X will down conditions X.X% cost stockpiled revenue to work high sequentially we year-over-year persist to that split initiated and we chain that between quarter million, as inventories million. to of continue was and generate Revenue savings expenses. year sold expect additional cost

of includes and a spend have well better categories, economic the realities as market professional Through the scale business and that reductions in environments. workforce actions reductions of with as other aligned series size current and of services our we

sustainable Importantly, basis. we expect our profitability will EBITDA this path achieve an also Adjusted accelerate to on

current our with continue networking we Across the see consumer maintaining XX% on position on the channel the are share with preference our we of audience [indiscernible] a are and Amazon addition in to market purchasing of ecommerce expanded scaling XXXX our market, with same market-leading these to the few. a significantly time, but large we a offering addition the customer base. officedepot.com, online name At wider category. in HSN homedepot.com, reaching Through channels, product

mission Core to to our our is software-enabled products. intelligent mobile commitment

The later for and free-of-charge ISP we currently schedule on customers been year attention and services. to premium shift a our cash ISP on down purchases, flow. are resources our wind business, this business unlimited our to We the margins has as drag support subscription of complete which provides

and beginning revenue near impact to Support+, QX service, will positive into gross incremental support end head our will the of we establish we as of new launch the premium believe QX. With an we subscription a which have our stream margin

support experience. beginning app enhanced end-to-end subscription available Support+ a in offers will be service to customer June. The greatly users

users will to annual XX/X an and queuing, priority tech fee, have access support, call-back For requests.

shifting sunk new resources in support we our investment are this no this offering. Importantly, and cost there the are to ISP to is virtually from incremental as internally business service technology

XXXX. of features launch, for road second technology our initial additional includes map in this Beyond half rollout the

of household. to we points and their a tools. gives more control for attractive network threat and consumers mind These top around bundle and peace the Specifically, that create diagnostics pain highly and management, features protection plan solutions address [indiscernible] consumers add of

in Since to have to sheet. the million strengthen vigilant second payable balance by by quarter, reduced to we efforts of our remain QX. end inventory XX% end at and accounts our reduced We million $X.X $XX.X XX% our of

AP accounts have We level more of our business. size a adequately aligned is maintenance achieved of and payable turnover the with that

cash end we prior quarter taken the actions to year have of compared resulted balance the working lower end. expected, the efficiency improve capital As in to at

at of importantly, More of end capital working to QX. X.X X.X end the at QX though, our from ratio improved

inventory We further head into as and of XXXX. QX $XX to we million low in reduction expect a exit QX

million month, lender. this $XX we for a is year, new new subject with execution facility definitive asset-backed of three sheet a signed final documents. Earlier a The to credit credit term facility non-binding

facility the We through working business our have credit agreed and completed. on steps terms with The Bank. Valley terms replace Silicon final are existing new be agreement will legal to

us agreement this on global basis reduces More terms more risk. financing importantly, provides borrowing new additional though, at overall capacity and favorable a our

soon. a We final agreement to expect execute

with tell much it months ago. six than that you balance was our I position sheet great is improved It confidence a is in

create ahead new capital, and further channels. distribution Looking our on channel, XXXX, to of prudent map ecommerce we focused executing revenue on product remain to expanding our a road allocation particularly stream,

of our now turn review a Dustin? financial for results. will to I it Dustin

Dustin Tacker

on that the earnings A Relations site the reminder Thank ir.minim.com. that posted financials been at presentation Mehul. I you are will our cover in Investor has friendly depicted

million prior $XX.X from revenue XX.X% totaled in net $X.X million, the revenue quarter, down quarter the Our which is over prior fourth quarter. million deferred and the to for $X.X increased

adjusting by fourth mortar sales and on-hand and brick demand their inventory. impacted net retailers were consumer Our quarter

was down prior in XX.X%, from XX.X% the For gross quarter, the quarter. our margin

$X.X cost charge increases. from reserve XX% of approach inventory continues component impact to negative an our gross Excluding million, inflation and margin despite

basic third XXXX. negative Our diluted $X.X XXXX, basic This of million $X.XX and per net net loss in $X.X QX diluted for $X.XX share. the a was compares negative of per and or million share with loss or quarter

compared Adjusted $X.X our negative million EBITDA $X.X to For negative of EBITDA in Adjusted the million prior quarter. the was quarter,

$X a $X.X and the cash cash cash in for decrease end quarter. look equivalents quarter-over-quarter balance we in accounts decrease prior sheet, The expenses. to million quarter, on driven had at largely $X.X paying by the and basis of million, down compared Now of a at a million the was the of payable accrued

to the compared close of quarter. Inventory million at decreased third million $XX.X $XX.X at the the of to the end quarter

our on three inventory closely. returning four year We production to we are inventory as turns levels focused and a our monitor on to very

million the and $XX in with ended quarter XX, of XXXX. million We loan. $X.X with from debt million This $X of compares million company’s comprises debt of as bridge $X.X of million, credit outstanding $X.X the which a outstanding September line

December we of XX, on XXXX, As $XX,XXX the credit in availability had line.

the to to reverse primarily move split approved The requirements stock a regain to capital company’s X. increase shareholders ratio with per our listing stock continued stock XXXX, XX, March X the split. compliance forward will is be common intended anywhere The the reverse price to on XX board NASDAQ with market of the from of Lastly, to to XX share markets. the

open my would financial questions. like to the remarks. for That lines With Operator, that, I concludes

Operator

time and a [Operator we and open session. question at Ladies for this gentlemen, the instructions] lines will answer

Tim go your from comes ahead Savageaux question. Markets. from with today question first Northland Our Capital Please

Tim Savageaux

of A morning. questions. good couple Hi,

give some where that achieved, a timeline that here. you revenue you and in profitability. us be cost and achieved a could reduction and could level efforts mentioned a toward feel like path be calendar I You maybe could ’XX whether wonder if

terms in the as Then the company this side? and somewhat of you year growth maybe the say to of on in about mortar that, you feel do correction prospects where at you and the Thanks. ahead, ’XX related look would you--how were inventory do we brick overall,

Mehul Patel

let are get into question, is This doing? Thanks Hey Tim, for how it. the you Mehul. me and

was first question the around reductions. think workforce I

including have booked April - the XX% we anticipate The of been that mentioned, that’s future roughly this X been into quarter, numbers, result done. executed implemented into that’s one savings should have and forward, going around so of all closed already workforce they point annualized, savings that as restructuring reductions already and so forward the the go we QX been at aspect this so costs, were all end effective

The I that do where it. company foremost second our question call, and of first you the think see and of deliver. to as the we we execution We was continue software strategy I on around the growth the mentioned is have, had do

in We the us through are incremental that on as late QX, those first don’t on Support+ to then review path revenue It All and us QX, will top margins our and hardware the the line allows to hardware solutions also other of into our release deliver ’XX. improve help our will on bundle well. margins be have which along today. we going streams

growth. year XX on year the Shopify, also hand. of that they All our maybe anywhere inventory last of down hand executed half had we have our to of terms from Last towards channels, the In sales they where full brick to company, maybe and we we maybe down took mortar weeks weeks a our we on year ecomm year, growth year, have Wal-Mart, direct four of consumer full those, a have. second of Motorola, we

think past build be again, we’re we’ll to to I weeks to X that. at we’ll think but be and I XX continue that all them manage we’ll X to ever to starting back X closer up. and don’t we’re

incremental on that we also we that volume the other the didn’t I last where think with places of I that some year. the that’s growth help and mentioned won call have will have

as believe still a so get near this last are confidence those sorry. I next here future be grow they’ll this We with year and the places to us few still but have in able have say we should we the year--I this that year, them to done close we’ll are where help other year, year to the well, all of accounts where on

Tim Savageaux

we in Well, a has commentary any QX and with that how where up? given mind, time shaped it. on from are up following perspective, Got

Mehul Patel

board. be Dustin, But forecasted is you think where had anticipated want we to internally overall, QX our initially to take with I that?

how but for surprises still to see We’re waiting seeing as weren’t land; of we major now, and not course any March close, right anticipating. we of we’ll the of that month

Dustin Tacker

time still level of in but At in reflective embedded levels what more exit will we’ve QX, so probably we QX past. our seen we’ll cost that improvement, see were too, as exactly. Right, the was cost through as still--historical be mentioned, the Mehul same QX,

Tim Savageaux

Thanks.

Mehul Patel

Sure.

Operator

then and would ask that Again, you question. is star may please and one. Once ask press question, and one To a like again, you press two. then star question, if star your withdraw a to to

your Our next go Rosenfeld. Please question. from Donald with comes ahead question

Donald Rosenfeld

My do What’s time question what the a profit, the coming with you see is at period-- a making profit? point through company

Mehul Patel

Donald, thanks--I’m sorry, go ahead?

Donald Rosenfeld

period What’s possibility you the could that that anticipate happen? time

Mehul Patel

with align that Based around our Donald, done--you we knew this staff year, for pushing Yes our were we the and have the we do portfolio question. for reduction on in that thanks to something we to everything know, had line.

have with cost of which higher we of We done the terms remove portfolio everything revenue the product and gross in realigning that to would margins, sunk have get new also us some streams, portfolio. our allow and

We’re our always to to execute there. end is that’s that our the doing trying to there but road in meantime of get everything before in going taking terms [indiscernible] again every the something get the we’re but goal year, our path, of improve profitability down measure to

Donald Rosenfeld

where see happening? happening? do do Time-wise, that When though, you you that see

Mehul Patel

year. Our second to still the of by so the get year right in is second goal now, of half the half there

Donald Rosenfeld

Thank you.

Operator

if press you question, one. please ask and a again, like Once to would star

next go ahead your question. [ph] Please [ph]. Lacario from Charlie comes with Our with GTM question

Charlie Lacario

your job gentlemen. of on on Yes, put two I and taking questions, can obviously getting inventory hopefully selling just it you thank you Excellent and it. some for color some have down. call, just my

at prices? that The a decent guys it amount first that’s the technology Do is you marketable? changes you know I inventory see being or question and left, market fast is and any still sellable marketable of that of have left. obsolete inventory know basically I still is guys current

still There it front next I know for contract you guys and amount be you have part years. money with of forward? obviously Motorola. that you I a Is question have them that the back the that a a is numerous would goes in contract you guys know guys that position kicked going you sell. in I that’s place of renegotiate of or are The in for to large them with can revenue where

Mehul Patel

in can back ahead, for then I’ll Dustin. of and as Charlie, Go in chime thanks kind let the I questions. jump well. Dustin initially

Charlie Lacario

you. Thank

Dustin Tacker

do out opportunity Motorola have so underneath to agreement, Motorola there’s the a are so contract very of quality to run, until have--when manufacturers tests to obviously have or a to the we the I’m fixed so company. any sure a manufacturing go comes advantage that issues the material market there’s at of so through to XXXX. arrangement as a is released that’s lot to Yes, it. it’s the to as name, branded products just relationship They meet earlier, product, to we that ensure the Then arrangement. lot beneficial will selling have take on this If address benefits don’t standards, us a in that into contract it rely that’s time negotiate us Motorola we stringent are beneficial been certain we long of--and an

Mehul Patel

term Yes, inventory this most time of not it get in and anything valid year I thanks, plenty us from have, inventory have that anything we’ll is Everything be continue that of near sell. even no - which this add to again, from end have Wi-Fi DOCSIS our do on inventory of after and before believe that Most we the is is--I Dustin, the able year. this obsolete about end at other numbers. hand, so there continue hand. number confident in we of which to we I’m DOCSIS obsolete. X only be of able inventory to we question our about should X.X is in we to for and that come, long I’ll terms portfolio for we around inventory, required inventory this before But feel forecast current want say not any want our your of onto there to so we being is and at is that point, tooth to in years still that do of was life based that of on is least the DOCSIS three two salable inventory on to away end that worried rid the X.X, drive down inventory years a to have to but year good still

Charlie Lacario

structure the and thank be you that you you you as you far obviously loan structure. for Great, going take Will guys another raise? loan guys you get capital into will negotiating flow as that going need Do is will that, still mess? are loan final getting getting cash to that forward, question help capital more your through through positive feel or

Mehul Patel

Dustin, do you want to answer that?

Dustin Tacker

focus we Obviously business capital and to raise no positive. so expect this right direction one at on intend get we’re in the all there financial do the this the the all focus and of our is we cash it’s right there, obviously balance, consideration so AP, there’s of as year, statements. our worked cash to of a point sheet time. coming we this we’ve worked to and inventory on Yes, our get right we’ve for as to flow it obviously we and our working intention that to try balance P&L, get to We on

Charlie Lacario

off end. for it good pays all Great, Keep the in Hopefully everybody thank up gentlemen. job, you. Excellent work. the

Mehul Patel

Charlie. you Thank

Operator

well for we today’s We and and thank presentation. today’s joining call. today’s conclude as conference Ladies answer question session, you as will gentlemen,

disconnect may lines. your now You

Mehul Patel

Thank you.

Minim (MINM) 29 Mar 232022 Q4 Earnings call transcript