DecisionPoint Systems Reports Results For The Quarter Ended September 30, 2016

IRVINE, Calif., Nov. 30, 2016 /PRNewswire/ -- DecisionPoint™ Systems, Inc. (Other OTC: DPSI), a leading provider and integrator of Enterprise Mobility and Wireless Applications solutions, today reported its unaudited financial results for the third quarter and nine months ended September 30, 2016.  The third quarter and nine month results are reported for continuing operations only, as the recapitalization which was approved by stockholders September 30, 2016 created a new equity structure that eliminated significant preferred stock overhang, preferred stock dividend obligations and other expenses and obligations.  Condensed tables reporting operating results for the first quarter ended March 31, 2016 and the second quarter ended June 30, 2016 are appended to this announcement as well.

For the three months ended September 30, 2016, revenues were $8.0 million with net income from continuing operations of $136,000, as compared to revenues of $8.0 million and net income from continuing operations of $53,000 in the comparable quarter of 2015.  Gross profit margin ticked up to 20.2% for the quarter, as compared to 19.1% in the third quarter of the previous year.  Adjusted EBITDA for the quarter ended September 30, 2016 was $223,000, as compared to $77,000 for the same period of the prior year.

For the nine months ended September 30, 2016, revenue was $22.4 million with net income from continuing operations of $339,000, as compared to revenue of $26.5 million and a net loss from continuing operations of $405,000 in the comparable nine months of 2015, an improvement year-to-year of almost $750,000.  Adjusted EBITDA for the nine months ended September 30, 2016 was $658,000, as compared to $84,000 for the same quarter of the prior year. A reconciliation of EBITDA and adjusted EBITDA to our GAAP financial measures is provided in the tables appended to this announcement.

CEO Steve Smith commented, "We were pleased with our results in the third quarter, both on the top and bottom line.  This was a breakthrough quarter for DecisionPoint, as our profitability picture continues to improve.  Going forward, we anticipate that an expanding top line, coupled with the culmination of our recapitalization efforts, will improve operating results in the year ending 2016 and on into 2017.  It was good to see the gross profit margin inch up this quarter after several quarters of tightening.  Most of all, it is good to see our new balance sheet and clean capital structure.  We have shed a heavy burden of expense that affected the holders of our common stock, including about $10 million per year of dividends due on the four series of our old preferred stock, which have now been completely converted into common stock.

"I am pleased to say that our customer base is solid, due to our quality products and services and the excellent relationships that our team has developed with our customers. We believe we have the best mobility solutions in the business," Mr. Smith added.

CFO Michael Roe commented, "Our dramatically simplified, recapitalized balance sheet as of September 30, 2016 reflects the previously outstanding preferred stock offerings which have been converted into common stock.  At September 30, 2016 there are 6,006,980 shares of common stock issued and outstanding.  Importantly, our cash on hand at September 30, 2016 was $2.6 million, compared to $821,000 as of December 31, 2015.  Starting on October 1, 2016, we are out from under the preferred stock dividend obligations which had put us in the position of further diluting our shareholder base through payment-in-kind (or "PIK") dividends.

"We have also eliminated our convertible debt.  The remaining term debt on the balance sheet is from our new revolving credit line, which carries much more favorable terms than our previous credit line, and restructured term debt from a Canadian bank.  For the most part, our cash flow now follows our EBITDA which, although it is not a GAAP measurement, is very useful in managing the company's cash flow.  We are confident that between our cash on hand, our ability to generate operating cash flow, and our availability on the revolving credit line, we have the liquidity we need to support our organic growth for the foreseeable future.  Our EBITDA has been improving over the last several quarters, and we expect that trend to continue, however we are planning on making investments in our sales and marketing departments, which we expect will drive growth in future years," Mr. Roe said.

About DecisionPoint Systems, Inc.

DecisionPoint Systems, Inc. delivers improved productivity and operational advantages to its clients by helping them move their business decision points closer to their customers.  We do this by making enterprise software applications accessible to the front-line worker anytime, anywhere.  DecisionPoint utilizes all the latest wireless, mobility, and RFID technologies.  For more information about DecisionPoint Systems, Inc., visit www.decisionpt.com.

Forward-Looking Statements

Except for historical information contained herein, the statements in this news release are forward-looking statements.  Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievements in the future to differ materially from forecasted results, performance, and achievements.   The Company undertakes no obligation to publicly release the results of any revisions to its forward-looking statements to reflect events or circumstances after the date hereof, including without limitation unanticipated events or changes in the Company's plans or expectations.

DecisionPoint™ Systems, Inc.
Michael Roe
Chief Financial Officer
(949) 465-0065

DresnerAllenCaron
Joe Allen
212-691-8087
[email protected]

Non-GAAP Financial Measures:

To supplement the Company's consolidated financial statements presented on a GAAP basis, the Company has provided non-GAAP financial information, namely earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA.  The Company's management believes that these non-GAAP measures provide investors with a better understanding of how the Company's results relate to the Company's historical performance, and reflect the essential operating activities of the Company.  Non-GAAP information is not meant to be considered in isolation from, or as a substitute for GAAP information.  A reconciliation of our GAAP financial measures to our non-GAAP financial measures appears below:

SOURCE DecisionPoint Systems, Inc.

Related Links

http://www.decisionpt.com