Usio, Inc. (Nasdaq: USIO), an integrated electronic payment solutions provider, today announced financial results for the second quarter of 2019, which ended June 30, 2019.
Louis Hoch, President and Chief Executive Officer of Usio, said, “Results for the second quarter reflect the strength of the broad FinTech platform we have built and the wide range of payment solutions we offer. Revenue growth accelerated modestly from the previous quarter, reflecting entirely organic growth and full integration of our previous acquisitions. Total dollars processed in the second quarter were $876 million. We experienced growth in all of our business segments, including nearly triple digit year-over-year growth within our prepaid card business line. ACH revenues were up as transaction volume continues to run at nearly double the rate of overall industry growth. This quarter we also recorded initial revenue from certain new products and incremental revenues from some of our other promising growth initiatives. Usio has a long history of technological innovation, and it is encouraging to see the investment in our growth initiatives taking root. We have maintained our financial strength, although the bottom line was impacted by continued investment in our growth initiatives. The new branding introduced at the July 1 Nasdaq Closing Bell ceremony represents the start of a new era at Usio, and we are confident that we will mark this historic occasion with a strong year of building shareholder value.”
Financial Results for Second Quarter Ended June 30, 2019
Revenues were $7.2 million for the second quarter, up 14% compared to the same period last year. Revenues were up in all of our business segments, ACH, card and prepaid.
Gross profits were $1.6 million, up 19% from $1.3 million in the same period last year and gross margins expanded to 21.9% in the second quarter, nearly a full point better than 21.0% in the same period last year.
Operating loss was $1.3 million for the quarter compared to a $1.0 million operating loss in the second quarter of last year.
Adjusted EBITDA was a loss of approximately $400,000, up marginally from a year ago.
Net loss for the quarter was $1.3 million, or ($0.10) per share, compared to a net loss of $1.0 million or ($0.09) per share in the same year ago period.
Total dollars processed in the quarter were up 7% to a quarterly record $876 million.
Usio continues to be in solid financial condition. Cash and cash equivalents at June 30, 2019 were $3.3 million and the Company remains debt free.
Financial Results for the First Six Months of Fiscal 2019
Revenues for the six months ended June 30, 2019 were $13.7 million, up 13.3% from the same period of fiscal 2018. All of the growth in fiscal 2019 is organic growth. Gross profits in the first six months of 2019 were $3.0 million, up 14% from the first half of fiscal 2018. Gross margins over the first half of this fiscal year were 21.5%, an improvement over gross margins for the first half of 2018 and driven by product mix. The operating loss for the first six months of 2019 was $2.3 million, compared to $2.1 million for the first six months of 2018. Adjusted EBITDA for the first six months of 2019 was a loss of $0.7 million, up just slightly from $0.5 million for the comparable period in 2018. The net loss for the six months ended June 30, 2019 was $2.3 million or ($0.18) per share compared to a net loss of $2.1 million or ($0.17) per share compared for the first half of 2018.
Conference Call and Webcast
Usio’s management will host a conference call with a live webcast on Wednesday, August 14, 2019 at 5:00 p.m. Eastern time to provide a business update. To listen to the conference call, interested parties within the U.S. should call 1-844-883-3890. International callers should call +1-412-317-9246. All callers should ask for the Usio conference call. The conference call will also be available through a live webcast, which can be accessed via the company’s websites: www.usio.com/invest.
A replay of the call will be available approximately one hour after the end of the call through August 28, 2019. The replay can be accessed via the Company’s website or by dialing 1-877-344-7529 (U.S.) or +1-412-317-0088 (international). The replay conference playback code is 10133679.
About Usio, Inc.
Usio, Inc. (Nasdaq: USIO), a leading integrated payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to their clients. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the prepaid sector. Usio is headquartered in San Antonio, Texas, and has offices in Austin, Texas and Franklin, Tennessee, just outside of Nashville.
Websites: www.usio.com , www.singularpayments.com, www.payfacinabox.com, www.akimbocard.com, and www.ficentive.com. Find us on Facebook® and Twitter.
About Non-GAAP Financial Measures
This press release includes non-GAAP financial measures, EBITDA and adjusted EBITDA, as defined in Regulation G of the Securities and Exchange Act of 1934, as amended. The Company reports its financial results in compliance with GAAP, but believes that also discussing non-GAAP measures provides investors with financial measures it uses in the management of its business. The Company defines EBITDA as operating income (loss), before interest, taxes, depreciation and amortization of intangibles. The Company defines adjusted EBITDA as EBITDA, as defined above, plus non-cash stock option costs and certain non-recurring items, such as acquisitions. These measures may not be comparable to similarly titled measures reported by other companies. Management uses EBITDA and adjusted EBITDA as indicators of the Company’s operating performance and ability to fund acquisitions, capital expenditures and other investments and, in the absence of refinancing options, to repay debt obligations.
Management believes EBITDA and adjusted EBITDA are helpful to investors in evaluating the Company’s operating performance because non-cash costs and other items that management believes are not indicative of its results of operations are excluded. EBITDA and adjusted EBITDA are supplemental non-GAAP measures, which have limitations as an analytical tool. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Non-GAAP financial measures do not reflect a comprehensive system of accounting, may differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies. For a description of our use of EBITDA and adjusted EBITDA, and a reconciliation of EBITDA and adjusted EBITDA to operating income (loss), see the section of this press release titled “Non-GAAP Reconciliation.”