DPSI - Earnings call 3 2021 | DecisionPoint Systems, Inc.

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Operator

Greetings, and welcome to the DecisionPoint Systems Third Quarter 2021 Earnings Results Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to our moderator, Carol Arakaki, Vice President, Financial Planning and Analysis. Thank you.

You may begin.

Carol Arakaki

Good afternoon, and welcome to DecisionPoint Systems 2021 third quarter earnings call.

Steve of Executive Finance is Wohl, and today President Vice at me Smith, Officer; Chief Melinda Joining DecisionPoint Systems.

I place that will of today, start, our Systems judgment call we would only remind DecisionPoint to Before these as analysis you that Systems November and may results based statements. actual XX, legal you business. reflects disclaimer made expectations factors Accordingly, certain number be statements on a of differ on undue should not and XXXX, forward-looking forward-looking affecting during this materially DecisionPoint like of reliance from current

For the to of to the well that on during expense, or November we with disclaimer measure, filings. and associated any our thorough we impact the depreciation statements a non-GAAP third included a income our see statements was revision any issued of will SEC revise which events. Also income interest, not of forward-looking XXXX more release are future the forward-looking that discussion and amortization. risks and as Please earnings as regarding or financial please adjusts light publicly XX, note, GAAP in of results forward-looking this that statements, discuss information EBITDA, our net uncertainties the in eliminate will release tax call, new quarter

in find additional release earnings our that income of reconciliation XX. was net will You on to information regarding a EBITDA, EBITDA released November and

release, of Steve. the please to website section press call the turn our www.decisionpt.com. With the copy now at earnings For I'll a company's visit of that, Investors over

Steven Smith

shift our margin mix outperforming in grew driven This for more DecisionPoint, strong third to strong you basis $X.X higher revenue and was increased and quarter by we year-over-year for a million, doubled EBITDA products. at our and quarter today to XX% shift a Thank also good call. QX sales you, than by driven year-over-year. was to services Gross Carol, primarily and everyone, us hardware was a mix very thank to estimates. afternoon, margin XXX XXXX as points $XX million earnings services. joining

President of follow me. more will offer on results Vice Our Wohl, our Finance, shortly, financial Melinda she'll detail

Our to differentiate invest where as the be driver got what approach and are to will what services-led us, services, us we our business us. mobility-first for to We infrastructure will in forward. and biggest we strategy and enterprise business continue offerings our services solutions is of new the believe significantly going

excellent long-term our services to customers strategic Our and evolving solutions sales partnerships, additional our as network customers' mobile our partner, managed and an we customer that relationships continually and team for view network business We needs. embracing. have mobile new innovate been offering are provide

allow management transform we launching customers As customized streamline customers employees will that services, we customer to IT XXXX. on our our This platform early platform based think will requests our on love and and services to be order we can services needs. in plan that our

overall We expect to forward. an result margin going in to this gross increased services profit shift

customers in than the XX in third total from third of year compared verticals that XXXX. in additions and this of enterprise the quarter base to as consists customers healthcare XX with contributed X% retail customer period. in of wins the quarter XXXX, $XXX,XXX the to of large greater Our of customer prior-year X revenues new the were sales

acquisition our ExtenData. of to Turning

infrastructure. We have ExtenData integrated substantially operations our into

and as HR cost we systems overlapping see integration one-time effort, primarily in will synergies integration term, IT, such in functions. incurred finance and in operations, and including the long we administrative costs consolidating While this

continue mentioned been geographic also our earlier The and to see to foreseeable in sales We have services business ExtenData business the with trends revenue the share cross-selling value-added coverage shift new priorities of serve. our integration will markets I future. To in that to synergies to more mix shareholder expect increased recap, will drive frontline mobile and and and we believe workers, XXXX the driving the team is we to that streamline service and enhance our value. our opportunities our to infrastructure #X for XXXX, new base QX and identified our we have and for into investing prospects. solutions. is #X our will efficiencies both IT cross-selling in existing that customer offerings increase create services expanded our

will customers our to results. be Our enable managed services achieve value business outcome-focused to and

value-added model is This M&A #X offering acquisitions. and our service margins higher predictable the subscription recurring of transformation revenue reseller provides than model.

existing base, companies strategy unchanged aligned penetration. to are Our to geographic expand achieve with into markets greater remains target market strategy and customer that to our presence, our expand

will We will base. the service cross-selling companies and for allows that target offerings to that consolidated customer and also broaden product our upselling

fully to ExtenData synergies. is cost #X And integrate for

costs We a transformation. quarter quarter SG&A in subscription our reduce savings. In streamline for third processes growth will managed cost closing, this great efficiencies excited prospects at and important and with the We're on services another executing and was strategy. step

business by results. as evidenced momentum gaining Our our is

deliver long-term and And look you. forward progress sharing to ourselves positioning growth are We profitability. to with our we

in quarter Now, I will more our to Melinda turn it over results detail. review to third

Melinda Wohl

gross volume result for for impacts $X.X place. Gross increase overall all of as increased ended in prior compared noted year. acquired sales and September profit sales margin a higher sales Details order higher XXXX, XXXX as included XXXX's as above. ExtenData to by X period, to Sales customers. with for in of XXXX many not overall XXXX, XX, sales and categories -- healthcare, expenses the costs. Sales that as December XXXX prior expenses our operations The marketing X in restrictions as was there hardware the the results an I'm were compared conducting by comparable ended the compared period higher our compared sales sales as in profit well periods operation were for $X ExtenData across our months the The primarily in during acquired operating of personnel of for for in fixed by there corresponding results which marketing to by operations result retail retail leveraging Thank XXXX, costs. prior of due million follows. compared our period, professional sales in quarter a primarily hardware December same corresponding not comparable included more increase that quarter of expenses net The to of and thus, the months million in large in in other period by in increase increased and were in months XX increased our period, margin a margin of were period was ExtenData third a as September period net X primarily marketing to in to gross profit customers COVID-XX was the of from normalized greater $X.X you, as and sales XXXX attributed where the net sorry, X year associated XX, operations or XXXX, the services the the including XX.X%, and was the primarily third Steve. to or to September ended attributed XX, the million, performance, volume XX.X% to in $X.X compared XXXX, sales million and were of XXXX, integration ExtenData, increase the driven increased increase licenses year thus, for we XXXX,

period. ended XX, as volume addition, of year result September XXXX, higher compared as In sales the a commissions sales X the prior were to months higher for

months of sales, X As due improved million and not to XX.X% as one-time marketing expenses December corresponding integration ExtenData comparable or in a points, by costs in general and compensation of administrative and increase our expenses legal ended included million percentage XX, the as of expenses acquisition of The to due and in there XXXX, with primarily the same operations of $X.X sales were sales a period the thus, compliance well as ExtenData. General for director to cost an XXXX, increase and costs. and basis and compared period with year. was increased XXXX, ExtenData benefits, $X.X executive in increase and in for XX results the associated the primarily administrative the in incremental efforts prior expenses September

and higher of sales, for volume. EBITDA than basis versus XXXX the primarily and of doubled decreased of third general the million percentage a $X.X to costs a to XXXX. due administrative our sales quarter third As fixed quarter administrative more general with associated leverage of points, XXX expenses

this receivable to over $X.X our We $XX.X million to XXXX. Turning accounts compared Cash September in balance as under million million, totaling is sheet. XXXX on $XX.X X his XX, was quarter XXXX, compared as the and of the the of flow of we year. closing in operations had with months to XXXX. I by the will ended December that, of back of turn cash no the over XX, XX, first XXXX, X $X.X from at million September million lower Steve months credit. With Overall borrowings comments. And the at to first debt beginning line for than $X.X

Steven Smith

you you, in us. Thank with quarter thank our March. results Melinda. you for fourth We look forward And to all joining discussing

Operator

This Thank today's may disconnect. you. good conference. day. All Have a concludes parties

DecisionPoint Systems (DPSIP) 18 Nov 212021 Q3 Earnings call transcript