USATP USA Technologies Inc

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MALVERN, Pa. – Sept. 10, 2015 – USA Technologies, Inc. (NASDAQ:USAT) ("USAT"), a leader of wireless, cashless payment and M2M/IoT solutions for small-ticket, self-serve retailing industries, today reported results for the fourth quarter and fiscal year ended June 30, 2015.

 

Fourth Quarter Financial Highlights:

 

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Record net connections of 31,000 for a total on the service of 333,000

 

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Record total revenue of $17.6 million, a year-over-year increase of 57%

 

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Record license and transaction fee revenue of $11.9 million, a year-over-year increase of 26%

 

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Free cashflow  of $2.7 million*

 

*(defined as cash flow from operations less cash used for the purchase of property for the JumpStart rental program.)

 

Fourth Quarter Financial Results:

 

		Three months ended June 30,
		2015				2014				$ Change				% Change
($ in thousands except-per share data)
Revenues:
License and transaction fees		$	11,938			$	9,460			$	2,478				26	%
Equipment sales			5,708				1,747				3,961				227	%
Total revenues		$	17,646			$	11,208			$	6,439				57	%
Operating income (loss)		$	94			$	(568	)		$	662				116	%
Adjusted EBITDA		$	1,701			$	1,266			$	435				34	%
Net income (loss)		$	69			$	(39	)		$	108				277	%
Non-GAAP net income (loss)		$	59			$	(619	)		$	677				109	%
Net earnings (loss) per common share - diluted		$	(0.01	)		$	-			$	(0.01	)			-100	%
Non-GAAP net earnings (loss) per common share - diluted		$	-			$	(0.02	)		$	0.02				100	%

 

USA Technologies Announces Fourth Quarter & Fiscal Year 2015 Financial Results

 

“Our leadership position in mobile and NFC payments, combined with our extensive experience with the self-service retail market, is fueling our growth and propels us toward achieving our long-term goals," said Stephen P. Herbert, USA Technologies’ chairman and chief executive officer.  “With Google’s launch of Android Pay, and our collaboration with them, it is another validation of the broader market acceptance of the mobile payments technology we have championed for more than 10 years.  With a record number of gross connections this quarter coupled with an increase in equipment sales, we ended the quarter with a year-over-year revenue increase of 57%. We continue to strengthen our balance sheet with the success of the QuickStart program which has increased our cash position significantly and are focused on expanding our presence with our current customers and developing a growing list of new customers.”

Fourth Quarter Connection and Transaction Data:

 

		Three months ended 30-Jun
		2015				2014				% Change
Gross New Connections ('000s)			34				25				36	%
% from Existing Customer Base			89	%			84	%			5	%
Net New Connections ('000s)			31				22				41	%
Total Connections ('000s)			333				266				25	%
New Customers Added			675				650				4	%
Total Customers			9,600				7,300				32	%
Total Number of Transactions (millions)			62				47				32	%
Total Volume ($ millions)		$	112.8			$	82.9				36	%

 

Fiscal 2015 Financial Highlights:

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Record net connections of 67,000 for the year

 

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Record total revenue of $58.1 million,  a year-over-year increase of 37%

 

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Year end cash position of $11.4 million

 

Fiscal 2015 Financial Results:

 

		Year ended June 30,
		2015				2014				$ Change				% Change
($ in thousands except-per share data)
Revenues:
License and transaction fees		$	43,633			$	35,638			$	7,995				22	%
Equipment sales			14,444				6,707				7,737				115	%
Total revenues		$	58,077			$	42,345			$	15,732				37	%
Operating income		$	210			$	436			$	(226	)			-52	%
Adjusted EBITDA		$	6,709			$	6,451			$	258				4	%
Net income (loss)		$	(819	)		$	27,531			$	(28,350	)			-103	%
Non-GAAP net income (loss)		$	(20	)		$	189			$	(209	)			-111	%
Net earnings (loss) per common share - diluted		$	(0.04	)		$	0.78			$	(0.82	)			-105	%
Non-GAAP loss per common share - diluted		$	(0.02	)		$	(0.01	)		$	(0.01	)			-100	%

 

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USA Technologies Announces Fourth Quarter & Fiscal Year 2015 Financial Results

 

Forward-looking Statements:

 

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: All statements other than statements of historical fact included in this release, including without limitation the business strategy and the plans and objectives of USAT's management for future operations, are forward-looking statements. When used in this release, words such as "anticipate", "believe", "estimate", "expect", "intend", and similar expressions, as they relate to USAT or its management, identify forward looking statements. Such forward-looking statements are based on the beliefs of USAT's management, as well as assumptions made by and information currently available to USAT's management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, the ability of management to accurately predict or forecast future earnings or taxable income of USAT; the incurrence by us of any unanticipated or unusual non-operational expenses which would require us to divert our cash resources from achieving our business plan; the ability of USAT to retain key customers from whom a significant portion of its revenues is derived; the ability of USAT to compete with its competitors to obtain market share; whether USAT's customers continue to utilize USAT's transaction processing and related services, as our customer agreements are generally cancelable by the customer on thirty to sixty days' notice; the ability of USAT to raise funds in the future through the sales of securities or debt financings in order to sustain its operations if an unexpected or unusual non-operational event would occur; the ability of USAT to use available data to predict future market conditions, consumer behavior and any level of cashless usage; the ability to prevent a security breach of our systems or services or third party services or systems utilized by us; whether any patents issued to USAT will provide USAT with any competitive advantages or adequate protection for its products, or would be challenged, invalidated or circumvented by others; the ability of USAT to operate without infringing the proprietary rights of others; whether USAT would be able to sell sufficient ePort hardware to third party leasing companies as part of the QuickStart program in order to significantly increase cash flows from operations; and whether USAT's existing or anticipated customers purchase, rent or utilize ePort devices or our other products or services in the future at levels currently anticipated by USAT. Readers are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statement made by us in this release speaks only as of the date of this release. Unless required by law, USAT does not undertake to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.

 

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This press release contains certain non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Reconciliations between non-GAAP and GAAP measures are set forth below.

 

The following non-GAAP financial measures are discussed herein: adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net earnings (loss) per common share – basic and diluted. The presentation of these additional financial measures are not intended to be considered in isolation from, or superior to, or as a substitute for the financial measures prepared and presented in accordance with GAAP (Generally Accepted Accounting Principles), including the net income or net loss of USAT or net cash used in operating activities. Management recognizes that non-GAAP financial measures have limitations in that they do not reflect all of the items associated with USAT's net income or net loss as determined in accordance with GAAP. These non-GAAP financial measures are not required by or defined under GAAP and may be materially different from the non-GAAP financial measures used by other companies. USAT has provided below the reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

 

As used herein, non-GAAP net income represents GAAP net income (loss) excluding costs or benefits relating to any adjustment for fair value of warrant liabilities and non-cash portions of the Company’s income tax benefit (provision).

Non-GAAP net earnings (loss) per common share - diluted is calculated by dividing non-GAAP net income (loss) applicable to common shares by the number of diluted weighted average shares outstanding.

 

Adjusted EBITDA represents net income (loss) before interest income, interest expense, income taxes, depreciation, amortization, and change in fair value of warrant liabilities and stock-based compensation expense.  We have excluded the non-operating change in fair value of warrant liabilities, because it represents a non-cash gain or (charge) that is not related to USAT's operations. We have excluded the non-cash expense stock-based compensation as it does not reflect the cash-based operations of USAT. Adjusted EBITDA is presented because we believe it is useful to investors as a measure of comparative operating performance and liquidity, and because it is less susceptible to variances in actual performance resulting from depreciation and amortization and non-cash charges for changes in fair value of warrant liabilities and stock-based compensation expense.

 

Management believes that non-GAAP net income (loss) and non-GAAP net earnings (loss) per common share - diluted are important measures of USAT's business. Management uses the aforementioned non-GAAP measures to monitor and evaluate ongoing operating results and trends and to gain an understanding of our comparative operating performance. We believe that these non-GAAP financial measures serve as useful metrics for our management and investors because they enable a better understanding of the long-term performance of our core business and facilitate comparisons of our operating results over multiple periods, and when taken together with the corresponding GAAP financial measures and our reconciliations, enhance investors' overall understanding of our current and future financial performance.

 

 

USA Technologies Announces Fourth Quarter & Fiscal Year 2015 Financial Results

 

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USA Technologies Announces Fourth Quarter & Fiscal Year 2015 Financial Results

 

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