oesx-8k_20220209.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

 

Date of Report (Date of earliest event reported):

 

February 9, 2022

 

 

 

 

ORION ENERGY SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

 

 

Wisconsin

01-33887

39-1847269

(State or other

jurisdiction of

incorporation)

(Commission File

Number)

(IRS Employer

Identification No.)

 

2210 Woodland Drive, Manitowoc, Wisconsin, 54220  

(Address of principal executive offices, including zip code)

 

(920) 892-9340  

(Registrant’s telephone number, including area code)

 

Not Applicable  

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)

Securities registered pursuant to Section 12(b) of the act:

Title of Each Class

 

Trading Symbol (s)

 

Name of Each Exchange on Which Registered

Common stock, no par value

 

OESX

 

The Nasdaq Stock Market LLC

(NASDAQ Capital Market)

Common stock purchase rights

 

 

 

The Nasdaq Stock Market LLC

(NASDAQ Capital Market)

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company    

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 


 

 

Item 2.02 .        Results of Operations and Financial Condition.

On February 9, 2022, Orion Energy Systems, Inc. (the “Company”) issued a press release announcing its quarterly financial results for its fiscal 2022 third quarter ended December 31, 2021. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

Item 9.01(d) .    Financial Statements and Exhibits.

 

 

Exhibit 99.1

Exhibit 99.1 Press Release of Orion Energy Systems, Inc. dated February 9, 2022

 

 

Exhibit 104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

2


 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

ORION ENERGY SYSTEMS, INC.

Date: February 9, 2022

By: /s/ J. Per Brodin

 

J. Per Brodin

 

Chief Financial Officer

 

3

oesx-ex991_6.htm

EXHIBIT 99.1


Orion Energy Systems Reports FY 2022 Nine Months Revenue of $102.3M,

EPS of $0.23, a 28% Gross Profit Percentage and $41M of Liquidity

 

Manitowoc, WI – February 9, 2022 – Orion Energy Systems, Inc. (NASDAQ: OESX) (Orion Lighting), a provider of energy-efficient LED lighting, controls and IoT systems, including turnkey project implementation, program management and system maintenance, today reported results for its fiscal 2022 third quarter (Q3’22) and nine months (9M’22) ended December 31, 2021. Orion will hold an investor call today at 10:00 a.m. ET – details below.

 

Q3 & 9M Financial Summary

Prior Three Quarters

$ in millions except
per share figures

Q3’22

Q3’21

Change

9M’22 (1)

9M’21

Change

Q2’22 (1)

Q1’22

Q4'21 (2)

Revenue

$30.7

$44.3

-$13.6

$102.3

$81.3

+$21.0

$36.5

$35.1

$35.5

Gross Profit

$7.6

$11.0

-$3.4

$28.7

$20.9

+$7.8

$10.8

$10.2

$9.2

Gross Profit %

24.9%

24.9%

Unch.

28.0%

25.7%

+230 bps

29.5%

29.1%

26.0%

Net Income

$1.1

$4.3

-$3.2

$7.3

$4.0

+$3.3

$3.7

$2.5

$22.1

EPS

$0.04

$0.14

-$0.10

$0.23

$0.13

+$0.10

$0.12

$0.08

$0.71

EBITDA (3)

$1.7

$4.9

-$3.2

$10.9

$5.5

$5.4

$5.4

$3.8

$2.9

Cash & Equivalents

$17.3

$12.3

+$5.0

$17.3

$12.3

+$5.0

$14.7

$15.9

$19.4

(1)Results include a $1.6M employee retention payroll tax credit provided under the American Rescue Plan Act of 2021. The credit increased gross profit in the period by $0.8M and reduced operating expense by $0.8M.

(2)Q4’21 Net Income and EPS include a non-cash income tax benefit of $20.9M and $0.67 per diluted share, respectively, for the release of the valuation allowance against Orion’s deferred tax assets.

(3)EBITDA reconciliation table follows this earnings release.

 

As anticipated, Orion reported Q3’22 revenue of $30.7M versus Q3’21 revenue of $44.3M, reflecting anticipated year-over-year reductions in project activity principally related to the Company’s largest customer, as well as the impact in the current period of customer delays on several larger LED lighting and controls projects. Delays in the quarter were primarily caused by the response of customers to supply chain disruptions and COVID-19 related impacts to their businesses. Revenue for the first nine months of FY 2022 increased to $102.3M versus $81.3M in the year-ago period.

 

Highlights

Q3’22 gross profit percentage remained unchanged at 24.9% despite lower sales, and 9M’22 gross profit percentage improved to 28% versus 25.7% in the year ago period, benefitting from higher sales. Both FY 2022 periods benefited from improved pricing, product mix and production cost efficiencies.

Q3'22 net income decreased to $1.1M, or $0.04 per share, and 9M’22 net income increased to $7.3M, or $0.23 per share, versus the year ago periods.

Orion generated EBITDA of $1.7M in Q3’22 and $10.9M in the first nine months of FY 2022.

Orion ended Q3'22 with over $41M of liquidity, including $17.3M of cash and cash equivalents and $24M available on its credit facility and no debt outstanding.

 

1

 


Orion also expanded its maintenance service business with the acquisition of Stay-Lite Lighting and now expects in excess of $20M in maintenance services revenue in FY 2023.

 

 

CEO Commentary

Mike Altschaefl, Orion’s CEO and Board Chair, commented, “As we indicated last month, our FY 2022 performance is being impacted by customer delays on several larger LED lighting and controls projects, primarily caused by the response of customers to supply chain disruptions and COVID-19 related impacts to their businesses. Nonetheless, the Orion team has delivered improved year-to-date results, both on the top and bottom line, and remains on track to achieve double digit revenue growth in FY 2022. We continue to see significant long-term growth opportunities with current and prospective major national accounts.

 

“To expand the scope and growth potential of our newly launched Orion Maintenance Services business, in early January we acquired Stay-Lite Lighting, a nationwide lighting and electrical maintenance provider. With the addition of Stay-Lite, we have created a solid nationwide lighting and electrical maintenance service platform that complements our LED lighting capabilities, while providing a growing base of recurring services revenue. We believe this business should generate revenue in excess of $20M in our maintenance services business FY 2023.”

 

“Our revenue growth during the first nine months includes some bright spots. Importantly, $12.0M of the growth in revenues, or 57.5%, came from customers excluding our largest customer. In addition, our ESCO business grew $7.2M, or 91.5%, and our Distribution business grew $2.2M, or 13.7%, demonstrating growing strength in those segments.

 

“Orion generated $10.9M in EBITDA through the first nine months of FY 2022, nearly double the level achieved last year, and we are well funded to support our growth goals. While business and economic uncertainties related to supply chain and COVID-19 issues are expected to impact customer project timelines in the near term, we remain confident in our competitive position and in our long-term growth potential. Moreover, as a domestic manufacturer of LED lighting fixtures, we are well-positioned to respond quickly to customer needs, particularly compared to competitors who have been experiencing challenges and delays in sourcing fixtures from Asia.

 

Business Outlook

Given the current pace of large-customer activity, Orion anticipates FY 2022 revenue of approximately $130M, representing growth of 11% over revenue of $116.8M in FY 2021. Long-term, Orion’s Board and management team are committed to and confident in achieving the Company’s strategic plan which seeks to grow the business, via organic and external growth initiatives, into a $500M annual revenue business over approximately five years. Orion’s strategic plan envisions organic growth averaging at least 10% per year, augmented by external growth, including strategic acquisitions, business partnerships and other initiatives.

Orion cautions investors that its business outlook is subject to a range of factors that are difficult to predict, including but not limited to supply chain disruptions, shipping and logistics issues, component availability, rising input costs, labor supply challenges, the COVID-19 pandemic, and other potential business and economic impacts.

 

Financial Results

As previously announced, Orion’s Q3’22 revenue decreased to $30.7M from $44.3M in Q3’21, a period that had benefitted from a rapid rebound in major account activity, primarily with Orion’s largest customer, following initial COVID-19-related project disruptions. Revenue through the first nine months of FY 2022 increased $21.0M or 25.8% to $102.3M, compared to the first nine months of FY 2021 which were more impacted by COVID-19 disruptions.

 

Gross profit declined to $7.6M in Q3’22, as compared to $11.0M in Q3’21, due to lower business volume, however gross profit percentage remained steady at 24.9% in both periods. Orion’s 9M’22 gross profit increased to $28.7M versus

 

2

 


$20.9M in 9M’21, reflecting an improved gross profit percentage of 28.0% versus 25.7% in the year ago period, due to higher revenue, an improved revenue mix and active supply chain, product and cost management.

 

Total operating expenses decreased to $6.3M in Q3’22 vs. $6.5M in Q3’21, benefitting from lower compensation costs which were partially offset by acquisition related costs of $0.2M.

 

Q3’22 net income decreased to $1.1M, or $0.04 per share, as compared to Q3’21 net income of $4.3M, or $0.14 per share, primarily due to lower revenue. Q3’22 net income included an income tax provision of $0.2M, though the Company does not expect to pay meaningful cash taxes due to significant net operating loss carryforwards of approximately $69M as of March 31, 2021.

 

Net income improved to $7.3M, or $0.23 per share, in the first nine months of FY 2022, from $4.0M, or $0.13 per share, in the first nine months of FY 2021. The year-to-date improvement principally reflects higher revenue and related operating leverage benefits.

 

Orion generated EBITDA of $1.7M in Q3’22 and $10.9M in 9M’22, compared to EBITDA of $4.9M in Q3’21 and $5.5M in 9M’21.

 

Cash Flow & Balance Sheet

Orion generated $6.3M of cash from operating activities in Q3’22, as compared to $8.5M in Q3’21. The decrease was primarily attributable to lower earnings, partially offset by working capital management.

 

Orion ended Q3'22 with over $41M of liquidity, including $17.3M of cash and cash equivalents and $24M of availability on its credit facility. The Company funded its acquisition of Stay-Lite Lighting, Inc. on December 31, 2021. That funding is included in Other long-term assets in the accompanying balance sheet.

 

Orion’s net working capital balance improved to $32.0M at December 31, 2021, as compared to $26.2M at its fiscal year-end March 31, 2021 and $23.3M at December 31, 2020.

 

Webcast/Call Detail

Date / Time:

Today - Wednesday, February 9th at 10:00 a.m. ET (9:00 a.m. CT)

Call Dial-In:

(877) 754-5294 or (678) 894-3013 for international  

Webcast/Replay:

https://edge.media-server.com/mmc/p/e4f2dbid

Audio Replay:

(855) 859-2056, ID# 5728078 (available shortly after the call through 2/16/22)

 

About Orion Energy Systems

Orion provides innovative LED lighting systems and turnkey project implementation including installation and commissioning of fixtures, controls and IoT systems, as well as ongoing system maintenance and program management. We help our customers achieve energy savings with healthy, safe and sustainable solutions, enabling them to reduce their carbon footprint and digitize their business.

 

Non-GAAP Measures

In addition to the GAAP results included in this presentation, Orion has also included the non-GAAP measures, EBITDA (earnings before interest, taxes, depreciation and amortization), net income excluding the income tax benefit and diluted earnings per share excluding the tax benefit. The Company has provided these non-GAAP measures to help investors better understand its core operating performance, enhance comparisons of core operating performance from period to period and allow better comparisons of operating performance to its competitors. Among other things, management uses these non-GAAP measures to evaluate performance of the business and believes this measurement

 

3

 


enables it to make better period-to-period evaluations of the financial performance of core business operations. The non-GAAP measurements are intended only as a supplement to the comparable GAAP measurements and Orion compensates for the limitations inherent in the use of non-GAAP measurements by using GAAP measures in conjunction with the non-GAAP measurement. As a result, investors should consider these non-GAAP measurements in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with generally accepted accounting principles.

 

Consistent with Regulation G under the U.S. federal securities laws, the non-GAAP measures in this press release have been reconciled to the nearest GAAP measures, and this reconciliation is located under the heading “Unaudited EBITDA Reconciliation” and “Unaudited Earnings Per Share Reconciliation” following the Condensed Consolidated Statements of Cash Flows included in this press release.

 

COVID-19 Impacts

The COVID-19 pandemic has disrupted business, trade, commerce, financial and credit markets, in the U.S. and globally. Orion’s business has been materially adversely impacted by measures taken by government entities and others to control the spread of the virus. As part of the Company’s response to the impacts of the COVID-19, management has taken a number of cost reduction and cash conservation measures. While restrictions have lessened in certain jurisdictions, stay-at-home, face mask, and lockdown orders remain in effect in others, with employees asked to work remotely if possible. Many customers and projects require Orion employees to travel to customers and project locations. Some customers and projects are in areas where travel restrictions have been imposed, certain customers have either closed or reduced on-site activities, and timelines for the completion of multiple projects have been delayed, suspended, or extended. As of the date of this release, it is not possible to predict the overall impact the COVID-19 pandemic will have on the Company's business, liquidity, capital resources or financial results.

 

Safe Harbor Statement  

Certain matters discussed in this press release, including under the headings “Highlights”, “CEO Commentary”, "Business Outlook", and "Financial Results" are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may generally be identified as such because the context of such statements will include words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" or words of similar import. Similarly, statements that describe our future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause results to differ materially from those expected, including, but not limited to, the following: (i) our ability to manage general economic, business and geopolitical conditions, including the impacts of natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as the COVID-19 pandemic; (ii) the deterioration of market conditions, including our dependence on customers' capital budgets for sales of products and services, and adverse impacts on costs and the demand for our products as a result of factors such as the COVID-19 pandemic and the implementation of tariffs; (iii) our ability to adapt and respond to supply chain challenges, especially related to shipping and logistics issues, component availability, rising input costs, and a tight labor market; (iv) our ability to recruit, hire and retain talented individuals in all disciplines of our company; (v)our ability to successfully launch, manage and maintain our refocused business strategy to successfully bring to market new and innovative product and service offerings; (vi) our recent and continued reliance on significant revenue to be generated in fiscal 2022 from the lighting and controls retrofit projects for two major global logistics companies; (vii) our dependence on a limited number of key customers, and the potential consequences of the loss of one or more key customers or suppliers, including key contacts at such customers; (viii) our ability to identify and successfully complete transactions with suitable acquisition candidates in the future as part of our growth strategy; (ix) the availability of additional debt financing and/or equity capital to pursue our evolving strategy and sustain our growth initiatives; (x) our risk of potential loss related to single or focused exposure within the current customer base and product offerings; (xi) our ability to sustain our profitability and positive cash flows; (xii) our ability to differentiate our products in a highly competitive and converging market, expand our customer base and gain market share; (xiii) our ability to manage and mitigate downward pressure on the average selling prices of our products

 

4

 


as a result of competitive pressures in the light emitting diode ("LED") market; (xix) our ability to manage our inventory and avoid inventory obsolescence in a rapidly evolving LED market; (xx) our increasing reliance on third parties for the manufacture and development of products, product components, as well as the provision of certain services; (xxi) our increasing emphasis on selling more of our products through third party distributors and sales agents, including our ability to attract and retain effective third party distributors and sales agents to execute our sales model; (xxii) our ability to develop and participate in new product and technology offerings or applications in a cost effective and timely manner; (xxiii) our ability to maintain safe and secure information technology systems; (xxiv) our failure to comply with the covenants in our credit agreement; (xxv) our ability to balance customer demand and production capacity; (xxvi) our ability to maintain an effective system of internal control over financial reporting; (xxvii) price fluctuations (including as a result of tariffs), shortages or interruptions of component supplies and raw materials used to manufacture our products; (xxviii) our ability to defend our patent portfolio and license technology from third parties; (xxix) a reduction in the price of electricity; (xxx) the reduction or elimination of investments in, or incentives to adopt, LED lighting or the elimination of, or changes in, policies, incentives or rebates in certain states or countries that encourage the use of LEDs over some traditional lighting technologies; (xxxi) the cost to comply with, and the effects of, any current and future industry and government regulations, laws and policies; (xxxii) potential warranty claims in excess of our reserve estimates, and (xxxiii) the other risks described in our filings with the Securities and Exchange Commission. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at http://www.sec.gov or at http://investor.oriones.com/ in the Investor Relations section of our Website.

 

Twitter: @OrionLighting and @OrionLightingIR

StockTwits: @Orion_LED_IR

###

Investor Relations Contacts

Per Brodin, CFO

William Jones; David Collins

Orion Energy Systems, Inc.

Catalyst IR

pbrodin@oesx.com

(212) 924-9800 or OESX@catalyst-ir.com


 

5

 


 

ORION ENERGY SYSTEMS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

 

 

 

December 31, 2021

 

 

March 31, 2021

 

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

17,264

 

 

$

19,393

 

Accounts receivable, net

 

 

12,287

 

 

 

13,572

 

Revenue earned but not billed

 

 

3,859

 

 

 

2,930

 

Inventories, net

 

 

18,722

 

 

 

19,554

 

Prepaid expenses and other current assets

 

 

2,308

 

 

 

1,082

 

Total current assets

 

 

54,440

 

 

 

56,531

 

Property and equipment, net

 

 

10,832

 

 

 

11,369

 

Other intangible assets, net

 

 

1,774

 

 

 

1,952

 

Deferred tax assets

 

 

17,445

 

 

 

19,785

 

Other long-term assets

 

 

7,407

 

 

 

3,184

 

Total assets

 

$

91,898

 

 

$

92,821

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

Accounts payable

 

$

11,771

 

 

$

17,045

 

Accrued expenses and other

 

 

10,502

 

 

 

13,226

 

Deferred revenue, current

 

 

175

 

 

 

87

 

Current maturities of long-term debt

 

 

15

 

 

 

14

 

Total current liabilities

 

 

22,463

 

 

 

30,372

 

Revolving credit facility

 

 

 

 

 

 

Long-term debt, less current maturities

 

 

23

 

 

 

35

 

Deferred revenue, long-term

 

 

583

 

 

 

640

 

Other long-term liabilities

 

 

2,774

 

 

 

3,700

 

Total liabilities

 

 

25,843

 

 

 

34,747

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value: Shares authorized: 30,000,000 at

   December 31, 2021 and March 31, 2021; no shares issued and outstanding at

   December 31, 2021 and March 31, 2021

 

 

 

 

 

 

Common stock, no par value: Shares authorized: 200,000,000 at December 31, 2021

   and March 31, 2021; shares issued: 40,573,654 at December 31, 2021 and

   40,279,050 at March 31, 2021; shares outstanding: 31,097,433 at

   December 31, 2021 and 30,805,300 at March 31, 2021

 

 

 

 

 

 

Additional paid-in capital

 

 

158,197

 

 

 

157,485

 

Treasury stock, common shares: 9,476,221 at December 31, 2021 and 9,473,750 at

   March 31, 2021

 

 

(36,242

)

 

 

(36,240

)

Retained deficit

 

 

(55,900

)

 

 

(63,171

)

Total shareholders’ equity

 

 

66,055

 

 

 

58,074

 

Total liabilities and shareholders’ equity

 

$

91,898

 

 

$

92,821

 

 

 

6

 


 

ORION ENERGY SYSTEMS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

 

 

 

Three Months Ended December 31,

 

 

Nine Months Ended December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Product revenue

 

$

22,203

 

 

$

31,929

 

 

$

78,260

 

 

$

61,890

 

Service revenue

 

 

8,511

 

 

 

12,322

 

 

 

24,065

 

 

 

19,453

 

Total revenue

 

 

30,714

 

 

 

44,251

 

 

 

102,325

 

 

 

81,343

 

Cost of product revenue

 

 

16,427

 

 

 

23,203

 

 

 

54,724

 

 

 

44,834

 

Cost of service revenue

 

 

6,646

 

 

 

10,042

 

 

 

18,942

 

 

 

15,605

 

Total cost of revenue

 

 

23,073

 

 

 

33,245

 

 

 

73,666

 

 

 

60,439

 

Gross profit

 

 

7,641

 

 

 

11,006

 

 

 

28,659

 

 

 

20,904

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

2,873

 

 

 

3,030

 

 

 

8,737

 

 

 

8,079

 

Acquisition costs

 

 

178

 

 

 

 

 

 

178

 

 

 

0

 

Sales and marketing

 

 

2,862

 

 

 

3,120

 

 

 

8,794

 

 

 

7,306

 

Research and development

 

 

396

 

 

 

391

 

 

 

1,169

 

 

 

1,230

 

Total operating expenses

 

 

6,309

 

 

 

6,541

 

 

 

18,878

 

 

 

16,615

 

Income from operations

 

 

1,332

 

 

 

4,465

 

 

 

9,781

 

 

 

4,289

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

 

 

 

12

 

 

 

1

 

 

 

56

 

Interest expense

 

 

(26

)

 

 

(1

)

 

 

(59

)

 

 

(51

)

Amortization of debt issue costs

 

 

(15

)

 

 

(20

)

 

 

(46

)

 

 

(142

)

Loss on debt extinguishment

 

 

 

 

 

(90

)

 

 

 

 

 

(90

)

Total other expense

 

 

(41

)

 

 

(99

)

 

 

(104

)

 

 

(227

)

Income before income tax

 

 

1,291

 

 

 

4,366

 

 

 

9,677

 

 

 

4,062

 

Income tax expense

 

 

189

 

 

 

51

 

 

 

2,406

 

 

 

52

 

Net income

 

$

1,102

 

 

$

4,315

 

 

$

7,271

 

 

$

4,010

 

Basic net income per share attributable to

   common shareholders

 

$

0.04

 

 

$

0.14

 

 

$

0.23

 

 

$

0.13

 

Weighted-average common shares outstanding

 

 

31,084,710

 

 

 

30,735,722

 

 

 

30,992,475

 

 

 

30,586,196

 

Diluted net income per share

 

$

0.04

 

 

$

0.14

 

 

$

0.23

 

 

$

0.13

 

Weighted-average common shares and share

   equivalents outstanding

 

 

31,234,925

 

 

 

31,320,427

 

 

 

31,273,703

 

 

 

31,289,359

 

 

7

 


 

ORION ENERGY SYSTEMS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

Nine Months Ended December 31,

 

 

 

2021

 

 

2020

 

Operating activities

 

 

 

 

 

 

 

 

Net income

 

$

7,271

 

 

$

4,010

 

Adjustments to reconcile net income to net cash provided by (used in)

operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

936

 

 

 

889

 

Amortization of intangible assets

 

 

158

 

 

 

225

 

Stock-based compensation

 

 

591

 

 

 

611

 

Amortization of debt issue costs

 

 

46

 

 

 

142

 

Loss on debt extinguishment

 

 

 

 

 

90

 

Deferred income tax

 

 

2,340

 

 

 

 

(Gain) loss on sale of property and equipment

 

 

(77

)

 

 

6

 

Provision for inventory reserves

 

 

426

 

 

 

185

 

Provision for bad debts

 

 

8

 

 

 

 

Other

 

 

30

 

 

 

9

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

1,276

 

 

 

(13,208

)

Revenue earned but not billed

 

 

(930

)

 

 

(959

)

Inventories

 

 

383

 

 

 

(4,196

)

Prepaid expenses and other assets

 

 

(1,292

)

 

 

339

 

Accounts payable

 

 

(5,231

)

 

 

(304

)

Accrued expenses and other

 

 

(3,651

)

 

 

6,555

 

Deferred revenue, current and long-term

 

 

31

 

 

 

(38

)

Net cash provided by (used in) operating activities

 

 

2,315

 

 

 

(5,644

)

Investing activities

 

 

 

 

 

 

 

 

Cash to fund acquisition

 

 

(3,697

)

 

 

 

Cash paid for investment

 

 

(500

)

 

 

 

Purchases of property and equipment

 

 

(465

)

 

 

(658

)

Additions to patents and licenses

 

 

(8

)

 

 

(43

)

Proceeds from sale of property, plant and equipment

 

 

122

 

 

 

 

Net cash used in investing activities

 

 

(4,548

)

 

 

(701

)

Financing activities

 

 

 

 

 

 

 

 

Payment of long-term debt

 

 

(11

)

 

 

(32

)

Proceeds from revolving credit facility

 

 

 

 

 

8,000

 

Payments of revolving credit facility

 

 

 

 

 

(18,013

)

Payments to settle employee tax withholdings on stock-based compensation

 

 

(7

)

 

 

(22

)

Deferred financing costs

 

 

(4

)

 

 

(212

)

Net proceeds from employee equity exercises

 

 

126

 

 

 

152

 

Net cash provided by (used in) financing activities

 

 

104

 

 

 

(10,127

)

Net decrease in cash and cash equivalents

 

 

(2,129

)

 

 

(16,472

)

Cash and cash equivalents at beginning of period

 

 

19,393

 

 

 

28,751

 

Cash and cash equivalents at end of period

 

$

17,264

 

 

$

12,279

 

 

8

 


 

ORION ENERGY SYSTEMS, INC. AND SUBSIDIARIES

UNAUDITED EBITDA RECONCILIATION

(in thousands)

 

 

 

Three Months Ended

 

 

 

December 31, 2021

 

 

September 30, 2021

 

 

June 30, 2021

 

 

March 31, 2021

 

 

December 31, 2020

 

Net income (loss)

 

$

1,102

 

 

$

3,659

 

 

$

2,510

 

 

$

22,124

 

 

$

4,315

 

Interest

 

 

26

 

 

 

14

 

 

 

19

 

 

 

76

 

 

 

1

 

Taxes

 

 

189

 

 

 

1,343

 

 

 

874

 

 

 

(19,668

)

 

 

51

 

Depreciation

 

 

314

 

 

 

313

 

 

 

309

 

 

 

301

 

 

 

302

 

Amortization of intangible assets

 

 

45

 

 

 

46

 

 

 

67

 

 

 

65

 

 

 

73

 

Amortization of debt issue costs

 

 

15

 

 

 

15

 

 

 

16

 

 

 

15

 

 

 

20

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

90

 

EBITDA

 

$

1,691

 

 

$

5,390

 

 

$

3,795

 

 

$

2,913

 

 

$

4,852

 

 

 

 

 

 

ORION ENERGY SYSTEMS, INC. AND SUBSIDIARIES

UNAUDITED EARNINGS PER SHARE RECONCILIATION

 

 

 

For the Three Months Ended March 31, 2021

 

Numerator: (dollars in thousands)

 

 

 

 

Net income

 

$

22,124

 

Impact of tax benefit - valuation allowance release

 

 

20,949

 

Net income excluding tax benefit

 

$

1,175

 

Denominator:

 

 

 

 

Weighted-average common shares and share equivalents outstanding

 

 

31,294,900

 

Net income per common share:

 

 

 

 

Diluted

 

$

0.71

 

Diluted excluding tax benefit

 

$

0.04

 

 

 

9