L-1 Identity Solutions Inc (fka ID)

[makinezmoney]

$ID: Can't believe this is down to $1.20



WOW.......... this is unbelievable



GO $ID



**********************************************************************************


First Quarter 2022 Financial Summary (Comparisons versus First Quarter 2021 and 2020*)

Net revenue was $94.9 million, a decrease of 13.0% compared to 2021 and an increase of 34.2% compared to 2020.
Gross margin was 19.5% as compared to 20.9% in 2021 and 21.4% in 2020.
Operating expenses as a percent of net revenue were 24.6% as compared to 21.7% in 2021 and 23.1% in 2020.
Operating loss was $(4.8) million as compared to $(0.8) million in 2021 and $(1.1) million in 2020.
Net loss was $(4.0) million as compared to $(0.6) million in 2021 and $(0.8) million in 2020.
Adjusted EBITDA was $(1.7) million compared to $1.2 million in 2021.
*Note: The Company has included comparisons against the first quarter of 2020 since consumer demand in the first quarter of 2021 was significantly impacted by COVID-19 and stimulus payments.

Management Commentary

“Our first quarter revenue compared to 2020 underscores the progress we have made expanding our business inclusive of the lift we experienced from the tailwind related to record stimulus in early 2021,” said Nino Ciappina, Chief Executive Officer of PARTS iD. “In addition to the difficult year-over-year comparison, macroeconomic factors and global supply chain disruptions are impacting our current results. Despite the challenging operating environment, we remain focused on executing the initiatives aimed at strengthening our customer relationships, broadening our product and service offerings, and increasing brand awareness.”

The first quarter financial results show a continuation of the Company’s investment designed to increase revenue of its adjacent verticals, original equipment, and repair parts businesses. While these investments in the short term reduced overall margin, management remains confident that the opportunities in these markets bode well for long-term growth and profitability. To this end, during the first quarter of 2022, among other achievements, the Company further expanded its product catalog and established new direct-to-manufacturer relationships. In addition, the Company increased margins by 15.1% in the adjacent verticals and by 6.2% in repair parts and original equipment and enriched its fitment data in these categories. Furthermore, to complement its existing strength in the DIY segment, the Company continues to build an omnichannel customer experience to attract customers in the $225+ billion do-it-for-me (DIFM) segment of the industry by adding over 5,000 new locations to its tire installation network, a foundational step in capturing the DIFM market.

First Quarter 2022 Financial Results

First quarter 2022 revenue decreased 13.0% to $94.9 million, compared to $109.1 in the first quarter of 2021. This decrease was attributable to a 14.9% decline in traffic and a 13.9% decrease in the conversion rate, partially offset by a 9.4% increase in average order value.

Gross profit for the first quarter of 2022 decreased to $18.5 million compared to $22.8 million in the same prior year period. Gross margin was 19.5% for the first quarter of 2022 compared to 20.9% in the first quarter of 2021. The decrease in gross margin was attributable to a year-over-year increase in product and shipping costs associated with the ongoing global supply chain disruptions and change in the product category revenue mix.

Operating expenses were $23.3 million for the first quarter of 2022 compared to $23.6 million for the first quarter of 2021. The decrease in operating expenses was primarily attributable to $0.8 million decline in advertising expenses due to lower traffic and clicks, along with a $0.3 million decrease in public company costs and a $0.3 million decrease in merchant services provider processing fees, partially offset by a $0.8 million increase in non-cash share-based expenses. Operating expenses as a percent of net revenue were 24.6% compared to 21.7% in the same prior year period.

Operating loss for the first quarter of 2022 was $(4.8) million compared to $(0.8) million for the first quarter of 2021.

Net loss for the first quarter of 2022 was $(4.0) million compared to a net loss of $(0.6) million in the same prior year period.

Adjusted EBITDA was $(1.7) million in the first quarter of 2022 compared to $1.2 million in the same prior year period.

Balance Sheet

As of March 31, 2022, the company had cash of $15.8 million compared to $23.2 million at December 31, 2021. The decrease in cash was primarily driven by net cash used in operating activities of $5.5 million and cash used in investing activities of $1.9 million, primarily related to website and software development expenditures.

Conference Call

PARTS iD’s Chief Executive Officer, Nino Ciappina, and Chief Financial Officer, Kailas Agrawal, will host a live conference call to discuss financial results on May 10, 2022 at 4:30 p.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial [phone] (domestic) or [phone] (international).

The conference call will also be available to interested parties through a live webcast at https://www.partsidinc.com/. A telephone replay of the call will be available until May 24, 2022, by dialing [phone] (domestic) or [phone](international) and entering the conference identification number: 13729670.

In addition, the investor presentation to be reviewed during the call will be posted on the Company’s website at https://www.partsidinc.com.