Flux Power Holdings, Inc. (FLUX) on Q3 2021 Results - Earnings Call Transcript
Operator: Good day, and thank you for standing by. Welcome to the Quarter Three 2021 Financial Results and Company Update. At this time all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. And please be advised that today's conference is being recorded. I would like to hand the conference over to your speaker today, Mr. Justin Forbes, Director of Marketing and Investor Relations. Sir, you may begin. Justin Forbes: Thank you. Good afternoon, and welcome to Flux Power's Financial Results Call. I'm Justin Forbes, Director of Marketing and Investor Relations for Flux Power. Ron Dutt, CEO; and Chuck Scheiwe, CFO, will present results of our operations for our third quarter of fiscal year 2021 ended March 31. Ron Dutt: Good afternoon, and thanks, Justin, for the introduction. As we complete a full year of COVID-19, as of the quarter ended March 31, and amidst the ongoing impacts of the COVID-19 pandemic, we're pleased to announce our 11th consecutive quarter of year-over-year revenue growth. Revenue momentum continues from our current customers since they buy new forklifts with Flux Power, lithium-ion battery packs our new customer acquisition efforts are making good progress, reflecting the growing awareness and trend of PMI on value proposition and adoption, lower life cycle costs, higher operational productivity from longer run times and the environmental impact of saving tons of carbon dioxide versus lead acid or propane power sources. The fiscal year '21 Q3 revenue increased by 38% to a record $7.0 million compared to $5.1 million for the same quarter last year. This quarterly increase continues our trajectory of 11 consecutive quarters of year-over-year revenue increases, reflecting our piecing of increased penetration of both current customers and the addition of new customers. The ground support equipment sector is reengaging as air travel is recovering. We have received new orders and further indications of increased activity from one of our customers who is a leading global airline. Chuck Scheiwe: Thank you, Ron. Our operating expenses increased to $3.1 million during Q3 '21 from $2.6 million in Q3 '20, that's primarily due to increases in personnel to support growth, significant increase insurance payment and higher freight expenses that Ron mentioned. Our R&D expenses remained unchanged during the quarter compared with the year ago. And our net loss for the quarter decreased to $1.7 million from a loss of $4 million in Q3 '20, this is reflecting increased gross margin. We had other income due to the PP loan forgiveness and decreased interest expense. We made further progress in strengthening our balance sheet during the quarter converting all of our remaining short-term line of credit debt of $2.4 million to equity. And with the PPP loans forgiveness, we now carry no debt at all. We did raise $1.7 million under the ATM in the aftermarket facility during the quarter, giving us a cash balance of $2.4 million at March 31st quarter end. Our $4 million line of credit with Silicon Valley Bank provide working capital remains unutilized and available to support growth. The borrowing availability on the credit line is tied to Flux Power's outstanding accounts receivable and on hand inventory. To add Ron's mentioned progress with our gross margin initiative, including the current quarter reported at 24.1%, we do believe continued implementation of our cost improvements, supporting higher gross margins, along with our revenue trajectory will drive us to our goal becoming cash flow breakeven. Now I'll turn it back to Ron. Ron Dutt: Thanks, Chuck. To conclude our remarks, I'd like to mention that we are optimistic on the future of the economy our business sector and our own momentum. It's still early in our trajectory to give guidance in the current COVID driven environment and adds its own complexity. But we are excited by our customers' response to the value proposition of our packs to their business. Operator: First question comes from the line of Carl Williams. Your line is open. Unidentified Analyst: I was just wondering, I heard you guys are doing -- or the Company was doing some bidding with Amazon. And I just wondered if that was any thing public, you could share or not, and the status of that. Ron Dutt: Yes. Thanks, Carl, for the question. We get that one every once in a while, Amazon being so on we can't disclose anything publicly on that. I will say what's -- I believe, publicly available information, they announced plans to spend a ton of money on electrification and reducing carbon footprint. And in fact, we have had discussions with them. And understand that they have quite a wide assortment of facilities, including new green facilities and existing facilities and of course, as they've said, analysts have reported, they do have fuel cell facilities that they are that they install in their new greenfield facilities. And we understand they're very interested in lithium as well. So I think they're going down that path at their own speed and priorities. And -- but we're very interested, have great, great discussions with them. But nothing to announce, and I don't expect there will be anything in the imminent future. Operator: Your next question comes from the line of Joe Smith. Your line is open. Unidentified Analyst: I thought it was a very impressive quarter on an independent shareholder. My understanding is you've got extensive capacity in your existing facilities to grow in addition to just growing your own internal product lines. Is that the ability to partner with other folks to build for them if they need additional capacity? And then I guess it ways into a broader question of strategic partnerships and potential M&A type activity and whether that's something that you ever considered into or approved with? Ron Dutt: Yes. Thanks for the question. Yes, we've mentioned in the past, our facility, we estimate we could do probably $100 million annually of revenue here. And of course, we're still ways from that. We do -- we are growing very rapidly and certainly hope to continue that. Operator: There are no further questions at this time. Presenters may continue. Ron Dutt: Okay. I understand there are no more questions. So with that, I'd like to thank everybody for listening. Appreciate your interest. Look forward to continued communication, including not only these calls, but our website and new sellers. We send out that people are interested, please get in touch with us. We believe and we see a very exciting future here for us and look forward to it. So with that, I'll close it off and thank you for your time and attention today. Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
Flux Power Holdings, Inc. (NASDAQ:FLUX) Earnings and Financial Health Overview
Flux Power Holdings, Inc. (NASDAQ:FLUX) is a leading company in the development of advanced lithium-ion energy storage solutions for industrial applications. They are known for their focus on efficient and sustainable power solutions for material handling equipment, including forklifts and airport ground support equipment. As a significant player in the energy storage industry, Flux Power competes with other companies offering similar solutions.
On March 20, 2025, FLUX is set to release its quarterly earnings. Analysts predict an earnings per share (EPS) loss of $0.03, with revenue expected to be around $14 million. Despite these projections, the company's participation in the New Warehouse Podcast at ProMat 2025 demonstrates its commitment to staying ahead in industry trends, particularly in telematics for material handling.
Flux Power's financial metrics reveal some challenges. The company has a price-to-sales ratio of 0.50 suggests that investors are paying $0.50 for every dollar of sales, which may reflect cautious investor sentiment. The enterprise value to sales ratio of 0.74 shows how the company's valuation compares to its revenue. However, the enterprise value to operating cash flow ratio of -9.37 highlights negative cash flow, which can be a concern for investors.
Flux Power's debt-to-equity ratio of 3.67 indicates a higher level of debt compared to equity, which could pose risks if not managed properly. On a positive note, the current ratio of 1.07 suggests that the company has slightly more current assets than current liabilities, providing some short-term financial stability.
Flux Power Holdings, Inc. (NASDAQ:FLUX) Faces Financial Challenges Amid Corporate Investigation
- Flux Power Holdings, Inc. (NASDAQ:FLUX) is under investigation for potential corporate wrongdoing, affecting investor confidence.
- The company reports a negative price-to-earnings (P/E) ratio of approximately -2.40 and a price-to-sales ratio of about 0.33, indicating financial difficulties and market skepticism.
- Despite a challenging financial landscape, Flux Power maintains a current ratio of approximately 1.07, suggesting some level of short-term financial stability.
Flux Power Holdings, Inc. (NASDAQ:FLUX) specializes in developing advanced lithium-ion energy storage solutions for industrial applications. As a key player in the energy storage sector, Flux Power competes with other companies offering similar solutions. The company is preparing to release its quarterly earnings on March 6, 2025, with Wall Street estimating an earnings per share of -$0.03 and projected revenue of around $14 million.
Despite these projections, Flux Power faces scrutiny as Bronstein, Gewirtz & Grossman, LLC has launched an investigation into potential corporate wrongdoing. This investigation targets the company's officers and directors, focusing on actions that may have affected investors who purchased securities before November 11, 2022. Investors are encouraged to participate in this investigation, which is conducted on a contingency fee basis.
Financially, Flux Power is experiencing challenges, as indicated by its negative price-to-earnings (P/E) ratio of approximately -2.40. This suggests the company is currently operating at a loss. The price-to-sales ratio of about 0.33 implies that the stock is valued at roughly 33 cents for every dollar of sales, reflecting market skepticism about its revenue generation.
The company's enterprise value to sales ratio is around 0.57, providing insight into its valuation relative to revenue. However, the negative enterprise value to operating cash flow ratio of approximately -7.24 highlights difficulties in generating cash flow from operations. Additionally, the negative earnings yield of about -41.62% further underscores the financial hurdles Flux Power is facing.
Despite these challenges, Flux Power maintains a current ratio of approximately 1.07, indicating a slightly higher level of current assets compared to current liabilities. This suggests some short-term financial stability. However, the high debt-to-equity ratio of about 3.67 points to a significant reliance on debt financing, which could impact the company's long-term financial health.
Flux Power Holdings, Inc. (NASDAQ:FLUX) Faces Financial Challenges Amid Lawsuit
- Flux Power Holdings, Inc. (NASDAQ:FLUX) anticipates an earnings per share (EPS) of -$0.13 and revenue of $13.5 million for the upcoming quarterly earnings.
- The company is involved in a securities fraud lawsuit, potentially impacting its financial health and investor confidence.
- Key financial metrics indicate challenges: a negative P/E ratio of -4.06, a price-to-sales ratio of 0.45, and a debt-to-equity ratio of 2.52.
Flux Power Holdings, Inc. (NASDAQ:FLUX) specializes in developing advanced lithium-ion energy storage solutions for industrial applications. As it prepares to release its quarterly earnings on December 5, 2024, Wall Street anticipates an earnings per share (EPS) of -$0.13 and revenue of $13.5 million. These figures reflect the company's ongoing financial challenges.
The company is currently embroiled in a securities fraud lawsuit, which could have significant implications for its financial health and investor confidence. The lawsuit, organized by the Law Offices of Howard G., offers investors a chance to lead the legal action. This development may impact the company's stock performance and investor sentiment as the case progresses.
Flux's financial metrics reveal a challenging landscape. The company has a negative price-to-earnings (P/E) ratio of -4.06, indicating ongoing losses. Its price-to-sales ratio of 0.45 suggests that the stock is valued at 45 cents for every dollar of sales, reflecting investor caution. The enterprise value to sales ratio of 0.69 further highlights the company's valuation concerns.
The company's financial difficulties are underscored by an enterprise value to operating cash flow ratio of -16.52, indicating challenges in generating positive cash flow from operations. The earnings yield of -24.61% emphasizes the current financial struggles. Despite these challenges, Flux maintains a current ratio of 1.10, suggesting some short-term financial stability.
Flux's debt-to-equity ratio of 2.52 indicates a higher level of debt compared to equity, which could pose risks if the company cannot manage its liabilities effectively. As the class action lawsuit progresses, investors are encouraged to consider their involvement, with firms like The Schall Law Firm and Pomerantz LLP urging participation before the December 31, 2024 deadline.
Flux Power Holdings, Inc. (NASDAQ:FLUX) Faces Legal Challenges Ahead of Earnings Release
- Flux Power Holdings, Inc. (NASDAQ:FLUX) is set to announce its quarterly earnings with an anticipated EPS of -$0.12 and projected revenue of $13.5 million.
- The company is currently involved in multiple class action lawsuits alleging securities fraud, which could impact investor confidence and financial standing.
- Financial indicators show a negative P/E ratio of -4.65 and a debt-to-equity ratio of 2.52, highlighting potential risks and challenges.
Flux Power Holdings, Inc. (NASDAQ:FLUX) is preparing to release its quarterly earnings on November 28, 2024. Wall Street anticipates an earnings per share (EPS) of -$0.12, with projected revenue of $13.5 million. Flux specializes in providing advanced lithium-ion energy storage solutions for industrial applications. The company faces competition from other energy storage firms, which may impact its market position.
Flux is currently embroiled in multiple class action lawsuits. Pomerantz LLP, The Schall Law Firm, and Bronstein, Gewirtz & Grossman, LLC have filed lawsuits alleging securities fraud and other unlawful practices. These legal actions claim that Flux and certain officers made false or misleading statements, particularly regarding financial metrics like inventory and assets, as highlighted by the lawsuits.
The lawsuits focus on alleged violations of federal securities laws, including sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Investors who purchased Flux securities between November 11, 2022, and September 30, 2024, are encouraged to participate. The legal proceedings could have significant implications for Flux's financial standing and investor confidence.
Financially, Flux presents a challenging picture. The company has a negative price-to-earnings (P/E) ratio of -4.65, indicating negative earnings over the past year. Its earnings yield is -21.50%, further underscoring its unprofitability. Despite these figures, Flux's price-to-sales ratio of 0.52 suggests that investors are paying $0.52 for every dollar of sales, which may still attract some interest.
Flux's debt-to-equity ratio of 2.52 indicates a higher level of debt compared to equity, which could pose risks if not managed carefully. However, the current ratio of 1.10 suggests that Flux has slightly more current assets than liabilities, providing some short-term financial stability. Investors will be closely watching the upcoming earnings release for any signs of improvement or further challenges.
Flux Power Holdings, Inc. (NASDAQ: FLUX) Faces Financial and Legal Challenges Ahead of Earnings Release
- Flux Power Holdings, Inc. (NASDAQ:FLUX) anticipates an earnings per share (EPS) of -$0.13 and revenue of $13.5 million for the upcoming quarterly earnings.
- The company is involved in a securities fraud lawsuit, which could significantly impact its financial stability and investor confidence.
- Key financial metrics indicate challenges, including a negative price-to-earnings (P/E) ratio of -5.26, a debt-to-equity ratio of 2.52, and a current ratio of 1.10, suggesting a modest ability to cover short-term obligations.
Flux Power Holdings, Inc. (NASDAQ:FLUX) specializes in developing advanced lithium-ion energy storage solutions for industrial applications. As it prepares to release its quarterly earnings on November 21, 2024, Wall Street anticipates an earnings per share (EPS) of -$0.13 and revenue of $13.5 million. These figures reflect the company's ongoing financial challenges.
The company is currently embroiled in a securities fraud lawsuit, as highlighted by Rosen Law Firm. This legal action targets investors who purchased FLUX securities between November 11, 2022, and September 30, 2024. The lawsuit, organized by the Law Offices of Howard G., could have significant implications for the company and its investors. The lead plaintiff deadline is set for December 31, 2024.
Flux Power's financial metrics reveal further challenges. The company has a negative price-to-earnings (P/E) ratio of -5.26, indicating negative earnings. The price-to-sales ratio is 0.59, meaning investors pay $0.59 for every dollar of sales. The enterprise value to sales ratio is 0.82, reflecting the company's valuation relative to its sales.
The enterprise value to operating cash flow ratio stands at -19.73, suggesting difficulties in generating positive cash flow from operations. The earnings yield is -19.01%, highlighting the company's earnings challenges. Additionally, with a debt-to-equity ratio of 2.52, FLUX has a relatively high level of debt compared to its equity.
Despite these challenges, the current ratio of 1.10 suggests that FLUX has a slightly higher level of current assets compared to its current liabilities. This indicates a modest ability to cover short-term obligations, which may provide some financial stability amidst ongoing legal and financial hurdles.
