Usio Announces First Quarter 2024 Financial Results
Total payment dollars processed through all payment channels up 19% versus the prior year period
Reiterates Full Year 2024 Expectation of 10 – 12% Revenue Growth
Separately, Usio Today Announced Entry into Contract with Potential to Ultimately Add
For the first quarter, ACH & Complementary Services revenues were up 16% on strong processing volume growth, with electronic check dollars processed up 22% and returned check transactions processed up 9% as compared to the same quarter in 2023. Credit card revenues were also up primarily due to PayFac revenue growth of 14%. Total credit card dollars processed were an all-time record, and were up 8% with transactions up 18%, also a new all-time record, with Payfac volume and transactions up 12% as compared to the same quarter in 2023. The decrease in Prepaid card services revenues is attributable to the planned wind down of a large New York City COVID Incentive Program. Notably, in the quarter, prepaid card load volume more than doubled from a year ago this quarter, to a record
Gross profit for the quarter ended
Quarterly Processing and Transaction Volumes
Total payment transactions processed in the first quarter of 2024 were 9.8 million, an increase of 14% over the same quarter of last year. Total payment dollars processed through all payment channels in the first quarter of 2024 were
We set all-time records in operating metrics for both our Credit card and Prepaid business units. In our Credit card segment, dollars processed were up 8% and transactions processed were up 18% from a year ago. Prepaid card load volume was up 108%, transactions processed were up 26% and purchase dollars processed were up 42%, in each case, from the same quarter a year ago. ACH electronic check transaction volume was up 4%, electronic check dollars processed were up 22% and return check transactions processed were up 9%, all compared to the same quarter a year ago.
First Quarter 2024 Revenue Detail
Revenues for the quarter ended
|
|
Three Months Ended |
|
|||||||||||||
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACH and complementary services |
|
$ |
3,881,734 |
|
|
$ |
3,340,722 |
|
|
$ |
541,012 |
|
|
|
16 |
% |
Credit card |
|
|
7,560,734 |
|
|
|
7,339,898 |
|
|
|
220,836 |
|
|
|
3 |
% |
Prepaid card services |
|
|
3,341,224 |
|
|
|
4,807,404 |
|
|
|
(1,466,180 |
) |
|
|
(30 |
)% |
Output Solutions |
|
|
5,537,923 |
|
|
|
5,958,220 |
|
|
|
(420,297 |
) |
|
|
(7 |
)% |
Total Revenue |
|
$ |
20,321,615 |
|
|
$ |
21,446,244 |
|
|
$ |
(1,124,629 |
) |
|
|
(5 |
)% |
Gross profit for the first quarter of 2024 was
Other selling, general and administrative expenses were
For the quarter, we reported an operating loss of
Adjusted Operating Cash Flows1 (excluding merchant reserve funds, prepaid card load assets, customer deposits and net operating lease assets and obligations) was
We continue to be in solid financial condition with
1 |
Please see reconciliation of GAAP to Non-GAAP Financial Measures |
Conference Call and Webcast
A replay of the call will be available approximately one hour after the end of the call through
About
Comparisons
Unless otherwise indicated, all comparisons and growth rates represent year-over-year comparisons, with the quarterly period of this year compared to the corresponding quarter of the prior year.
About Non-GAAP Financial Measures
This press release includes non-GAAP financial measures, as defined in Regulation G adopted by the
Management believes EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flows 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, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flow should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. They are not measurements of our financial performance under GAAP and should not be considered as alternatives to revenue, net income, or cash provided by (used in) operating activities, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flow have limitations as analytical tools and you should not consider these non-GAAP financial measures in isolation or as a substitute for analysis of our operating results as reported under GAAP.
1 |
See reconciliation of non-GAAP financial measures below |
FORWARD-LOOKING STATEMENTS DISCLAIMER
Except for the historical information contained herein, the matters discussed in this press release include forward-looking statements which are covered by safe harbors. Those statements include, but may not be limited to, all statements regarding management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. These forward-looking statements are identified by the use of words such as "believe," "should," "intend," "look forward," "anticipate," "schedule,” and "expect" among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results to vary, including such risks related to an economic downturn, the realization of opportunities from the IMS acquisition, the management of the Company's growth, the loss of key resellers, the relationships with the Automated Clearing House network, bank sponsors, third-party card processing providers and merchants, the security of our software, hardware and information, the volatility of the stock price, the need to obtain additional financing, risks associated with new legislation, and compliance with complex federal, state and local laws and regulations, and other risks detailed from time to time in the Company's filings with the
CONSOLIDATED BALANCE SHEETS |
||||||||
|
|
|
|
|
|
|
||
|
|
(Unaudited) |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
7,053,812 |
|
|
$ |
7,155,687 |
|
Accounts receivable, net |
|
|
4,862,227 |
|
|
|
5,564,138 |
|
Settlement processing assets |
|
|
41,030,860 |
|
|
|
44,899,603 |
|
Prepaid card load assets |
|
|
28,698,878 |
|
|
|
31,578,973 |
|
Customer deposits |
|
|
1,808,263 |
|
|
|
1,865,731 |
|
Inventory |
|
|
429,577 |
|
|
|
422,808 |
|
Prepaid expenses and other |
|
|
687,415 |
|
|
|
444,071 |
|
Current assets before merchant reserves |
|
|
84,571,032 |
|
|
|
91,931,011 |
|
Merchant reserves |
|
|
5,322,095 |
|
|
|
5,310,095 |
|
Total current assets |
|
|
89,893,127 |
|
|
|
97,241,106 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
3,478,654 |
|
|
|
3,660,092 |
|
|
|
|
|
|
|
|
|
|
Other assets: |
|
|
|
|
|
|
|
|
Intangibles, net |
|
|
1,535,366 |
|
|
|
1,753,333 |
|
Deferred tax asset, net |
|
|
1,504,000 |
|
|
|
1,504,000 |
|
Operating lease right-of-use assets |
|
|
2,318,388 |
|
|
|
2,420,782 |
|
Other assets |
|
|
335,357 |
|
|
|
355,357 |
|
Total other assets |
|
|
5,693,111 |
|
|
|
6,033,472 |
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
99,064,892 |
|
|
$ |
106,934,670 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
896,293 |
|
|
$ |
1,031,141 |
|
Accrued expenses |
|
|
2,778,067 |
|
|
|
3,801,278 |
|
Operating lease liabilities, current portion |
|
|
490,184 |
|
|
|
633,616 |
|
Equipment loan, current portion |
|
|
180,906 |
|
|
|
107,270 |
|
Settlement processing obligations |
|
|
41,030,860 |
|
|
|
44,899,603 |
|
Prepaid card load obligations |
|
|
28,698,878 |
|
|
|
31,578,973 |
|
Customer deposits |
|
|
1,808,263 |
|
|
|
1,865,731 |
|
Current liabilities before merchant reserve obligations |
|
|
75,883,451 |
|
|
|
83,917,612 |
|
Merchant reserve obligations |
|
|
5,322,095 |
|
|
|
5,310,095 |
|
Total current liabilities |
|
|
81,205,546 |
|
|
|
89,227,707 |
|
|
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
Equipment loan, net of current portion |
|
|
630,913 |
|
|
|
718,980 |
|
Operating lease liabilities, net of current portion |
|
|
1,955,333 |
|
|
|
1,919,144 |
|
Total liabilities |
|
|
83,791,792 |
|
|
|
91,865,831 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
197,194 |
|
|
|
197,087 |
|
Additional paid-in capital |
|
|
97,632,948 |
|
|
|
97,479,830 |
|
|
|
|
(4,406,973 |
) |
|
|
(4,362,150 |
) |
Deferred compensation |
|
|
(6,561,728 |
) |
|
|
(6,907,775 |
) |
Accumulated deficit |
|
|
(71,588,341 |
) |
|
|
(71,338,153 |
) |
Total stockholders' equity |
|
|
15,273,100 |
|
|
|
15,068,839 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity |
|
$ |
99,064,892 |
|
|
$ |
106,934,670 |
|
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
||||||||
|
|
Three Months Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
20,321,615 |
|
|
$ |
21,446,244 |
|
Cost of services |
|
|
16,116,691 |
|
|
|
16,544,429 |
|
Gross profit |
|
|
4,204,924 |
|
|
|
4,901,815 |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses: |
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
499,273 |
|
|
|
504,574 |
|
Other SG&A |
|
|
4,060,225 |
|
|
|
3,873,219 |
|
Depreciation and amortization |
|
|
576,154 |
|
|
|
518,029 |
|
Total selling, general and administrative |
|
|
5,135,652 |
|
|
|
4,895,822 |
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
(930,728 |
) |
|
|
5,993 |
|
|
|
|
|
|
|
|
|
|
Other income and (expense): |
|
|
|
|
|
|
|
|
Interest income |
|
|
764,125 |
|
|
|
92,928 |
|
Interest expense |
|
|
(13,585 |
) |
|
|
(662 |
) |
Other income, net |
|
|
750,540 |
|
|
|
92,266 |
|
|
|
|
|
|
|
|
|
|
Income (Loss) before income tax expense |
|
|
(180,188 |
) |
|
|
98,259 |
|
Income tax expense |
|
|
70,000 |
|
|
|
83,426 |
|
|
|
|
|
|
|
|
|
|
Net income (Loss) |
|
$ |
(250,188 |
) |
|
$ |
14,833 |
|
|
|
|
|
|
|
|
|
|
Income (Loss) Per Share |
|
|
|
|
|
|
|
|
Basic income (loss) per common share: |
|
$ |
(0.01 |
) |
|
$ |
0.00 |
|
Diluted income (loss) per common share: |
|
$ |
(0.01 |
) |
|
$ |
0.00 |
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
Basic - common stock |
|
|
19,990,862 |
|
|
|
20,122,972 |
|
Basic - restricted stock awards |
|
|
6,384,900 |
|
|
|
6,385,900 |
|
Weighted average shares used to compute basic earnings per share |
|
|
26,375,762 |
|
|
|
26,508,872 |
|
Diluted |
|
|
26,375,762 |
|
|
|
27,454,471 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
|
|
Three Months Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Operating Activities |
|
|
|
|
|
|
|
|
Net (loss) |
|
$ |
(250,188 |
) |
|
$ |
14,833 |
|
Adjustments to reconcile net income (loss) to net cash (used in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
358,187 |
|
|
|
300,061 |
|
Amortization |
|
|
217,967 |
|
|
|
217,968 |
|
Employee stock-based compensation |
|
|
499,273 |
|
|
|
504,574 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
701,911 |
|
|
|
(846,609 |
) |
Prepaid expenses and other |
|
|
(243,344 |
) |
|
|
(10,616 |
) |
Operating lease right-of-use assets |
|
|
102,394 |
|
|
|
(31,459 |
) |
Inventory |
|
|
(6,769 |
) |
|
|
12,898 |
|
Accounts payable and accrued expenses |
|
|
(1,158,059 |
) |
|
|
1,128,251 |
|
Operating lease liabilities |
|
|
(107,243 |
) |
|
|
4,548 |
|
Prepaid card load obligations |
|
|
(2,880,095 |
) |
|
|
(1,357,807 |
) |
Merchant reserves |
|
|
12,000 |
|
|
|
(164,886 |
) |
Customer deposits |
|
|
(57,468 |
) |
|
|
20,953 |
|
Net cash (used in) operating activities |
|
|
(2,811,434 |
) |
|
|
(207,291 |
) |
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(176,750 |
) |
|
|
(217,735 |
) |
Net cash (used in) investing activities |
|
|
(176,750 |
) |
|
|
(217,735 |
) |
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
Payments on equipment loan |
|
|
(14,431 |
) |
|
|
(13,488 |
) |
Purchases of treasury stock |
|
|
(44,823 |
) |
|
|
(8,529 |
) |
Net cash (used in) financing activities |
|
|
(59,254 |
) |
|
|
(22,017 |
) |
|
|
|
|
|
|
|
|
|
Change in cash, cash equivalents, prepaid card loads, customer deposits and merchant reserves |
|
|
(3,047,438 |
) |
|
|
(447,043 |
) |
Cash, cash equivalents, prepaid card loads, customer deposits and merchant reserves, beginning of year |
|
|
45,910,486 |
|
|
|
32,343,501 |
|
|
|
|
|
|
|
|
|
|
Cash, Cash Equivalents, Prepaid Card Loads, Customer Deposits and Merchant Reserves, End of Period |
|
$ |
42,863,048 |
|
|
$ |
31,896,458 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information |
|
|
|
|
|
|
|
|
Cash paid during the period for: |
|
|
|
|
|
|
|
|
Interest |
|
$ |
13,585 |
|
|
$ |
662 |
|
Income taxes |
|
|
— |
|
|
|
13,426 |
|
Non-cash financing activity: |
|
|
|
|
|
|
|
|
Issuance of deferred stock compensation |
|
|
— |
|
|
|
2,444,054 |
|
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) |
||||||||||||||||||||||||||||
|
|
Common Stock |
|
|
Additional Paid- In |
|
|
|
|
|
Deferred |
|
|
Accumulated |
|
|
Total Stockholders' |
|
||||||||||
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Stock |
|
|
Compensation |
|
|
Deficit |
|
|
Equity |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
|
28,671,606 |
|
|
$ |
197,087 |
|
|
$ |
97,479,830 |
|
|
$ |
(4,362,150 |
) |
|
$ |
(6,907,775 |
) |
|
$ |
(71,338,153 |
) |
|
$ |
15,068,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock under equity incentive plan |
|
|
107,600 |
|
|
|
107 |
|
|
|
153,118 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
153,226 |
|
Deferred compensation amortization |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
346,047 |
|
|
|
— |
|
|
|
346,047 |
|
Purchase of treasury stock costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(44,823 |
) |
|
|
— |
|
|
|
— |
|
|
|
(44,823 |
) |
Net (loss) for the period |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(250,188 |
) |
|
|
(250,188 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
|
28,779,206 |
|
|
$ |
197,194 |
|
|
$ |
97,632,948 |
|
|
$ |
(4,406,973 |
) |
|
$ |
(6,561,728 |
) |
|
$ |
(71,588,341 |
) |
|
$ |
15,273,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
|
27,044,900 |
|
|
$ |
195,471 |
|
|
$ |
94,048,603 |
|
|
$ |
(3,749,027 |
) |
|
$ |
(5,697,900 |
) |
|
$ |
(70,863,049 |
) |
|
$ |
13,934,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock under equity incentive plan |
|
|
1,421,250 |
|
|
|
1,421 |
|
|
|
2,638,529 |
|
|
|
— |
|
|
|
(2,444,054 |
) |
|
|
— |
|
|
|
195,896 |
|
Deferred compensation amortization |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
308,676 |
|
|
|
— |
|
|
|
308,676 |
|
Purchase of treasury stock costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,529 |
) |
|
|
— |
|
|
|
— |
|
|
|
(8,529 |
) |
Net income for the period |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,833 |
|
|
|
14,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
|
28,466,150 |
|
|
$ |
196,892 |
|
|
$ |
96,687,132 |
|
|
$ |
(3,757,556 |
) |
|
$ |
(7,833,278 |
) |
|
$ |
(70,848,216 |
) |
|
$ |
14,444,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) |
||||||||
|
|
Three Months Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
|
|
|
Reconciliation from Operating income (Loss) to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
Operating income (Loss) |
|
$ |
(930,728 |
) |
|
$ |
5,993 |
|
Depreciation and amortization |
|
|
576,154 |
|
|
|
518,029 |
|
EBITDA |
|
|
(354,574 |
) |
|
|
524,022 |
|
Non-cash stock-based compensation expense, net |
|
|
499,273 |
|
|
|
504,574 |
|
Adjusted EBITDA |
|
$ |
144,699 |
|
|
$ |
1,028,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Adjusted EBITDA margins: |
|
|
|
|
|
|
|
|
Revenues |
|
$ |
20,321,615 |
|
|
$ |
21,446,244 |
|
Adjusted EBITDA |
|
$ |
144,699 |
|
|
$ |
1,028,596 |
|
Adjusted EBITDA margins |
|
|
0.7 |
% |
|
|
4.8 |
% |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) |
||||||||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
Reconciliation from net cash (used in) operating activities to Non-GAAP Adjusted Operating Cash Flows: |
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
|
$ |
(2,791,434 |
) |
|
$ |
(207,292 |
) |
Operating cash flow adjustments: |
|
|
|
|
|
|
|
|
Prepaid card load obligations |
|
|
2,880,095 |
|
|
|
1,357,807 |
|
Customer deposits |
|
|
57,468 |
|
|
|
(20,953 |
) |
Merchant reserves |
|
|
(12,000 |
) |
|
|
164,886 |
|
Operating lease right-of-use assets |
|
|
(102,394 |
) |
|
|
31,459 |
|
Operating lease liabilities |
|
|
107,243 |
|
|
|
(4,548 |
) |
Total adjustments to net cash provided by operating activities |
|
$ |
2,930,412 |
|
|
$ |
1,528,651 |
|
Adjusted operating cash flows provided |
|
$ |
138,978 |
|
|
$ |
1,321,359 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240515351868/en/
Senior Vice President, Investor Relations
paul.manley@usio.com
612-834-1804
Source: