Usio, Inc: (Nasdaq: USIO), a leading FinTech company that
operates a full stack of integrated, cloud-based electronic payment
and embedded financial solutions, today announced financial results
for the second quarter, which ended June 30, 2024.
Louis Hoch, President and Chief Executive
Officer of Usio, said, “Momentum remains strong, with a backlog of
contracted PayFac integrated software vendors, "ISVs", still
to implement with more than $1.4 billion in potential processing
dollars. Total payment dollar processing volume growth
accelerated to 29% in the second quarter, with all of our
electronic transaction processing businesses generating
double-digit growth across all of their key processing metrics.
However, based on first half revenues, and anticipated future
volumes respective to our initial projections due to PayFac's
contracted ISVs implementing slower than we had previously
forecasted, we are lowering our revenue guidance to 3-7% growth,
and our EPS expectations to $0.0-$0.03 per share.
However, we are raising our expectations for fiscal 2024
Adjusted EBITDA1 to be between $4.25 and $5.0 million, as gross
margins are expected to improve."
Revenues for the quarter were once again in line
with our expectations for the quarter and were down from a year
ago, primarily due to the continued managed wind down of a large
Prepaid program related to the NYC COVID Incentive
program. Excluding that single program, revenues would
have been up for both the quarter and the first half of the year
compared to a year ago. Revenues in the quarter were led by Credit
card, specifically in our Payfac division, where revenues were up
22% on a 25% increase in volumes, overcoming the attrition in our
legacy portfolios to increase total credit card revenues
2%. Prepaid card services, despite the decline in revenues,
has a positive growth trajectory, with card load volume growing
55% from the comparable quarter of 2023, to a record $133
million, and exceeded $100 million for the fourth consecutive
quarter. ACH & Complementary Services also had strong
processing volume growth, although revenues were down marginally
for the quarter, due to the presence of some one-time revenues in
the prior year period, while up over the first half of the
year. Revenues for Output Solutions were down for the quarter,
though underlying volumes were up sequentially versus the first
quarter of 2024. The decrease was due to the comparison with a
strong second quarter 2023 and delays with some new customer
implementations.
We have also reclassified interest revenue
earned on merchant funds held for payment processing, merchant
reserves and prepaid balances to top line revenue. This change
reflects a shift in how the Company reports this income, which was
previously categorized as non-operating income. This
reclassification highlights that this revenue is integral to these
core business segments, aligning it with the Company’s primary
revenue streams. Interest income earned on operating cash continues
to be reported below the line. This adjustment
provides greater transparency into the company's operational
performance and the main drivers of revenue within its key business
lines.
For the quarter ended June 30, 2024,
margins were up sequentially from the first quarter,
although gross profit and margins were down marginally from a
year ago due to a slightly less favorable sales mix, including the
runoff of the NYC COVID Incentive Prepaid Card Program. Other
selling, general and administrative expenses increased modestly
from the same period last year and, on an annual basis, are
expected to be nominally higher versus the prior year to
support the anticipated revenue growth. The Company reported net
income of $0.1 million, or $0.00 per share, compared to
net income of $0.2 million, or $0.01 per share, a year
ago. Adjusted EBITDA1 was $0.8 million,
a $0.5 million decline from the $1.3 million
Adjusted EBITDA1 a year ago. The Company’s financial position
remains strong as the Company generated $1.0 million in
Adjusted Operating Cash Flows1 over the first six months of
this fiscal year with cash at quarter end up over $1.0 million
compared to the same point a year ago.
Mr. Hoch concluded, “The Company is in an
extremely strong position, with a growing portfolio of recurring
revenues, a best-ever financial position, and signed contracts
that will be adding incremental revenue as they come online. Though
the timing of when these large incremental deals will ramp
up remains uncertain, we are confident that it is simply a
question of timing. We believe that this should elevate Usio
to a new level of revenue and earnings while further strengthening
our franchise and creating new opportunities for growth.”
Quarterly Processing and Transaction
Volumes
Total payment transactions processed in
the second quarter of 2024 were 11.1 million, an
increase of 24% over the same quarter of last year. Total
payment dollars processed through all payment channels in the
second quarter of 2024 were $1.7 billion, an improvement
of 29% over last year's second quarter $1.3 billion
in volume.
We set all-time records in Prepaid card load,
processing and transaction volumes in our Prepaid business
unit. Prepaid card load volume was up 55%, transactions
processed were up 58% and purchase volume were up 39%, in
each case, from the same quarter a year ago. In our Credit
card segment, dollars processed were up 10% and transactions
processed were up 19% from a year ago. ACH electronic check
transaction volume was up 10%, electronic check dollars
processed were up 36% and return check transactions processed
was up 13%, all compared to the same quarter a year ago.
Second Quarter 2024 Revenue
Detail
Revenues for the quarter ended June 30,
2024 were $20.1 million, down 6% compared
to the prior year quarter, primarily reflecting a
decrease in Prepaid revenues due to the continued
wind-down of the NYC COVID Incentive program. Similarly,
revenues for the six months ended June 30, 2024 were
down 4% compared the prior year period attributable to
the decrease in Prepaid revenues.
|
Three Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACH and complementary
services |
$ |
3,894,330 |
|
|
$ |
4,079,157 |
|
|
$ |
(184,827 |
) |
|
|
(5 |
)% |
Credit card |
|
7,261,268 |
|
|
|
7,115,884 |
|
|
|
145,384 |
|
|
|
2 |
% |
Prepaid card services |
|
3,673,418 |
|
|
|
5,217,468 |
|
|
|
(1,544,050 |
) |
|
|
(30 |
)% |
Output Solutions |
|
4,686,869 |
|
|
|
4,849,197 |
|
|
|
(162,328 |
) |
|
|
(3 |
)% |
Interest - ACH and
complementary services |
|
190,233 |
|
|
|
40,361 |
|
|
|
149,872 |
|
|
|
371 |
% |
Interest - Prepaid card
services |
|
334,624 |
|
|
|
125,058 |
|
|
|
209,566 |
|
|
|
168 |
% |
Interest - Output
Solutions |
|
39,146 |
|
|
|
9,447 |
|
|
|
29,699 |
|
|
|
314 |
% |
Total Revenue |
$ |
20,079,888 |
|
|
$ |
21,436,572 |
|
|
$ |
(1,356,684 |
) |
|
|
(6 |
)% |
|
Six Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACH and complementary
services |
$ |
7,776,064 |
|
|
$ |
7,419,879 |
|
|
$ |
356,185 |
|
|
|
5 |
% |
Credit card |
|
14,822,002 |
|
|
|
14,455,782 |
|
|
|
366,220 |
|
|
|
3 |
% |
Prepaid card services |
|
7,014,642 |
|
|
|
10,024,872 |
|
|
|
(3,010,230 |
) |
|
|
(30 |
)% |
Output Solutions |
|
10,224,792 |
|
|
|
10,807,417 |
|
|
|
(582,625 |
) |
|
|
(5 |
)% |
Interest - ACH and
complementary services |
|
401,873 |
|
|
|
43,306 |
|
|
|
358,567 |
|
|
|
828 |
% |
Interest - Prepaid card
services |
|
737,365 |
|
|
|
186,018 |
|
|
|
551,347 |
|
|
|
296 |
% |
Interest - Output
Solutions |
|
73,536 |
|
|
|
15,568 |
|
|
|
57,968 |
|
|
|
372 |
% |
Total Revenue |
$ |
41,050,274 |
|
|
$ |
42,952,842 |
|
|
$ |
(1,902,568 |
) |
|
|
(4 |
)% |
|
Gross profit for the second quarter of 2024
was $4.8 million compared to $5.2 million for
the second quarter of 2023, while gross margins were 23.9%, which
was 0.3% lower than the same period a year ago. This
decrease in gross margins reflects the impact of lower
residual revenues generated from prepaid card breakage and
spoilage. Sequentially, margins were up compared to the first
quarter of 2024, as there was lower prepaid card breakage and
spoilage revenues in the second quarter.
Gross profits for the six months ended June
30, 2024 were $9.7 million,
down $0.5 million, from the same time period last year.
This was primarily attributable to lower overall revenues,
while gross margins were only down a nominal 0.1% to 23.5%,
with second quarter profitability having improved as we
replaced lower margin revenues from the first quarter of
2024 with more profitable business. These improvements stem
for the growth of new customers in our Prepaid card
services business, and improvements in Output Solutions as
customer mix shifted in the second quarter.
Other selling, general and administrative
expenses were $4.0 million for the quarter ended June 30,
2024, up slightly compared to $3.9 million in the prior
year period. The increase was primarily attributable to nominal
increases in general salary and benefits. While we expect
full year expenses to be nominally higher from a year ago to
support our anticipated growth in revenues and implementations, we
are committed to achieving our goal to improve operating leverage
as a means to accelerate profitable growth
Other selling, general and administrative
expenses were $8.1 million for the six months ended
June 30, 2024, compared to $7.7 million in the prior year
period, the increase being primarily attributable to some one-time
increases in professional fees and marketing, including increased
sales-related travel, in the first quarter of 2024.
For the quarter, we reported an operating
loss of $0.2 million compared to positive
$0.2 million in operating income for the same quarter a
year ago. Adjusted EBITDA1 was $0.8 million for the
quarter, compared to Adjusted
EBITDA1 of $1.3 million a year ago. Net income
for the quarter ended June 30, 2024 was
$0.1 million, or $0.00 per share, compared to net
income of $0.2 million, or $0.01 per share, for the
same period in the prior year.
For the six months ended June 30, 2024, our
operating loss was $0.5 million compared
to operating income of $0.3 million in the same
period a year ago, with a net loss of $0.2 million,
or ($0.01) per share, versus net income
of $0.2 million in the six months ended June 30, 2023.
Adjusted EBITDA1 was $1.6 million in the six
months ended June 30, 2024, a decrease of $0.8 million,
from $2.4 million a year ago.
Adjusted Operating Cash Flows1 (excluding
merchant reserve funds, prepaid card load assets, customer deposits
and net operating lease assets and obligations) was
$1.0 million for the six months ended June 30, 2024. Cash
flows used in operating activities was $3.1 million for
the six months ended June 30, 2024, compared to cash flows
used in operating activities of $27.8 million in the
same period a year ago, with the difference driven primarily by the
decrease in accounts payable and accrued expenses, alongside lower
prepaid card load obligations, as funds are loaded and spent on our
prepaid cards.
We continue to be in solid financial
condition with $7.5 million in cash and cash equivalents as
of June 30, 2024, a $0.3 million increase in cash
balances over the first six months of the year, and an
improvement of $1.0 million from June 30, 2023.
1 Please see reconciliation of GAAP to Non-GAAP Financial
Measures
Conference Call and Webcast
Usio, Inc.'s management will host a conference
call on Wednesday, August 14, 2024, at 4:30 pm Eastern time to
review financial results and 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 website at www.usio.com/investors.
A replay of the call will be available
approximately one hour after the end of the call through August 28,
2024. 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 4975978.
About Usio, Inc.
Usio, Inc. (Nasdaq: USIO), a leading,
cloud-based, integrated FinTech electronic payment solutions
provider, offers a wide range of payment solutions to merchants,
billers, banks, service bureaus, integrated software vendors and
card issuers. The Company operates credit, debit/prepaid, and ACH
payment processing platforms to deliver convenient, world-class
payment solutions and services to clients through its unique
payment facilitation platform as a service. The Company, through
its Usio Output Solutions division offers services relating to
electronic bill presentment, document composition, document
decomposition and printing and mailing services. 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 card issuing sector. Usio is headquartered
in San Antonio, Texas, and has offices in Austin, Texas. Websites:
www.usio.com, www.payfacinabox.com, www.akimbocard.com and
www.usiooutput.com. Find us on Facebook® and Twitter.
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
Securities and Exchange Commission, of EBITDA, adjusted
EBITDA, adjusted EBITDA margins and adjusted operating cash flows.
The Company reports its financial results in compliance with GAAP,
but believes that also discussing non-GAAP financial 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 costs related to acquisitions.
- The Company defines adjusted EBITDA margins as adjusted
EBITDA, as defined above, divided by total revenues.
- The Company defines adjusted operating cash flow as net cash
provided by (used in) operating activities, less changes in
prepaid card load obligations, customer deposits, merchant reserves
and net operating lease assets and obligations. These adjustments
to net cash provided by (used in) operating activities are not
inclusive of any regular expense items, and only
include changes in our assets and liabilities accounts on our
consolidated balance sheet. These measures may not be comparable to
similarly titled measures reported by other companies. Management
uses EBITDA, adjusted EBITDA, adjusted EBITDA margins and
adjusted operating cash flows 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, 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 and any guidance for future periods. 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
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
Securities and Exchange Commission including its annual report on
Form 10-K for the fiscal year ended December 31, 2023. One or more
of these factors have affected, and in the future could affect, the
Company’s businesses and financial results and could cause
actual results to differ materially from plans and projections.
Although the Company believes that the assumptions underlying the
forward-looking statements included in this press release are
reasonable, the Company can give no assurance such assumptions will
prove to be correct. In light of the significant uncertainties
inherent in the forward-looking statements included herein, the
inclusion of such information should not be regarded as a
representation by us or any other person that the objectives and
plans will be achieved. All forward-looking statements made in this
press release are based on information presently available to
management. The Company assumes no obligation to update any
forward-looking statements, except as required by law.
Contact:
Paul ManleySenior Vice President, Investor
Relationspaul.manley@usio.com612-834-1804
USIO, INC.CONSOLIDATED BALANCE
SHEETS |
|
|
June 30, 2024 |
|
|
December 31, 2023 |
|
|
(Unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
7,498,256 |
|
|
$ |
7,155,687 |
|
Accounts receivable, net |
|
5,494,539 |
|
|
|
5,564,138 |
|
Settlement processing
assets |
|
51,122,984 |
|
|
|
44,899,603 |
|
Prepaid card load assets |
|
28,056,918 |
|
|
|
31,578,973 |
|
Customer deposits |
|
1,808,006 |
|
|
|
1,865,731 |
|
Inventory |
|
407,013 |
|
|
|
422,808 |
|
Prepaid expenses and
other |
|
819,163 |
|
|
|
444,071 |
|
Current assets before merchant reserves |
|
95,206,879 |
|
|
|
91,931,011 |
|
Merchant reserves |
|
4,851,839 |
|
|
|
5,310,095 |
|
Total current assets |
|
100,058,718 |
|
|
|
97,241,106 |
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
3,427,109 |
|
|
|
3,660,092 |
|
|
|
|
|
|
|
|
|
Other assets: |
|
|
|
|
|
|
|
Intangibles, net |
|
1,317,370 |
|
|
|
1,753,333 |
|
Deferred tax asset, net |
|
1,504,000 |
|
|
|
1,504,000 |
|
Operating lease right-of-use assets |
|
2,184,415 |
|
|
|
2,420,782 |
|
Other assets |
|
340,285 |
|
|
|
355,357 |
|
Total other assets |
|
5,346,070 |
|
|
|
6,033,472 |
|
|
|
|
|
|
|
|
|
Total
Assets |
$ |
108,831,897 |
|
|
$ |
106,934,670 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
968,217 |
|
|
$ |
1,031,141 |
|
Accrued expenses |
|
3,214,518 |
|
|
|
3,801,278 |
|
Operating lease liabilities, current portion |
|
442,668 |
|
|
|
633,616 |
|
Equipment loan, current portion |
|
192,206 |
|
|
|
107,270 |
|
Settlement processing obligations |
|
51,122,984 |
|
|
|
44,899,603 |
|
Prepaid card load obligations |
|
28,056,918 |
|
|
|
31,578,973 |
|
Customer deposits |
|
1,808,006 |
|
|
|
1,865,731 |
|
Current liabilities before
merchant reserve obligations |
|
85,805,517 |
|
|
|
83,917,612 |
|
Merchant reserve obligations |
|
4,851,839 |
|
|
|
5,310,095 |
|
Total current liabilities |
|
90,657,356 |
|
|
|
89,227,707 |
|
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
Equipment loan, net of current portion |
|
597,176 |
|
|
|
718,980 |
|
Operating lease liabilities, net of current portion |
|
1,863,147 |
|
|
|
1,919,144 |
|
Total liabilities |
|
93,117,679 |
|
|
|
91,865,831 |
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
Preferred stock, $0.01 par value, 10,000,000 shares authorized; -0-
shares outstanding at June 30, 2024 (unaudited) and December 31,
2023, respectively |
|
— |
|
|
|
— |
|
Common stock, $0.001 par value, 200,000,000 shares authorized;
29,764,435 and 28,671,606 issued, and 27,331,969 and 26,332,523
outstanding at June 30, 2024 (unaudited) and December 31, 2023,
respectively |
|
198,179 |
|
|
|
197,087 |
|
Additional paid-in capital |
|
99,222,467 |
|
|
|
97,479,830 |
|
Treasury stock, at cost; 2,366,947 and 2,339,083 shares at June 30,
2024 (unaudited) and December 31, 2023, respectively |
|
(4,511,919 |
) |
|
|
(4,362,150 |
) |
Deferred compensation |
|
(7,681,660 |
) |
|
|
(6,907,775 |
) |
Accumulated deficit |
|
(71,512,849 |
) |
|
|
(71,338,153 |
) |
Total stockholders' equity |
|
15,714,218 |
|
|
|
15,068,839 |
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity |
$ |
108,831,897 |
|
|
$ |
106,934,670 |
|
USIO, INC.CONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED) |
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
20,079,888 |
|
|
$ |
21,436,572 |
|
|
$ |
41,050,274 |
|
|
$ |
42,952,842 |
|
Cost of services |
|
15,280,074 |
|
|
|
16,250,988 |
|
|
|
31,396,765 |
|
|
|
32,795,417 |
|
Gross profit |
|
4,799,814 |
|
|
|
5,185,584 |
|
|
|
9,653,509 |
|
|
|
10,157,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
460,061 |
|
|
|
577,869 |
|
|
|
959,334 |
|
|
|
1,082,443 |
|
Other SG&A |
|
4,000,845 |
|
|
|
3,854,022 |
|
|
|
8,061,070 |
|
|
|
7,727,241 |
|
Depreciation and amortization |
|
547,849 |
|
|
|
522,999 |
|
|
|
1,124,003 |
|
|
|
1,041,028 |
|
Total selling, general and
administrative |
|
5,008,755 |
|
|
|
4,954,890 |
|
|
|
10,144,407 |
|
|
|
9,850,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
(208,941 |
) |
|
|
230,694 |
|
|
|
(490,898 |
) |
|
|
306,713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income and
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
107,270 |
|
|
|
43,978 |
|
|
|
222,624 |
|
|
|
66,880 |
|
Other income |
|
261,413 |
|
|
|
— |
|
|
|
261,413 |
|
|
|
— |
|
Interest expense |
|
(14,250 |
) |
|
|
(533 |
) |
|
|
(27,835 |
) |
|
|
(1,195 |
) |
Other income, net |
|
354,433 |
|
|
|
43,445 |
|
|
|
456,202 |
|
|
|
65,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
tax expense |
|
145,492 |
|
|
|
274,139 |
|
|
|
(34,696 |
) |
|
|
372,398 |
|
Income tax expense |
|
70,000 |
|
|
|
69,098 |
|
|
|
140,000 |
|
|
|
152,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
$ |
75,492 |
|
|
$ |
205,041 |
|
|
$ |
(174,696 |
) |
|
$ |
219,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Per
Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per common
share: |
$ |
0.00 |
|
|
$ |
0.01 |
|
|
$ |
(0.01 |
) |
|
$ |
0.01 |
|
Diluted income (loss) per
common share: |
$ |
0.00 |
|
|
$ |
0.01 |
|
|
$ |
(0.01 |
) |
|
$ |
0.01 |
|
Weighted average common shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
26,534,407 |
|
|
|
26,413,329 |
|
|
|
26,454,848 |
|
|
|
26,410,340 |
|
Diluted |
|
26,534,407 |
|
|
|
26,413,329 |
|
|
|
26,454,848 |
|
|
|
26,410,340 |
|
USIO, INC.CONSOLIDATED STATEMENTS OF CASH
FLOWS(UNAUDITED) |
|
|
|
|
Six Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
Operating Activities |
|
|
|
|
|
|
|
Net income (loss) |
$ |
(174,696 |
) |
|
$ |
219,874 |
|
Adjustments to reconcile net
income (loss) to net cash provided by (used in) operating
activities: |
|
|
|
|
|
|
|
Depreciation |
|
688,039 |
|
|
|
605,095 |
|
Amortization |
|
435,964 |
|
|
|
435,933 |
|
Employee stock-based compensation |
|
959,334 |
|
|
|
1,082,443 |
|
Non-cash revenue from returned
common stock |
|
— |
|
|
|
(156,162 |
) |
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
69,599 |
|
|
|
(850,132 |
) |
Prepaid expenses and other |
|
(375,092 |
) |
|
|
(176,728 |
) |
Operating lease right-of-use assets |
|
236,367 |
|
|
|
114,956 |
|
Inventory |
|
15,795 |
|
|
|
25,185 |
|
Accounts payable and accrued expenses |
|
(649,684 |
) |
|
|
136,401 |
|
Operating lease liabilities |
|
(246,945 |
) |
|
|
(134,979 |
) |
Prepaid card load obligations |
|
(3,522,055 |
) |
|
|
26,227,715 |
|
Merchant reserves |
|
(458,256 |
) |
|
|
231,539 |
|
Customer deposits |
|
(57,725 |
) |
|
|
9,070 |
|
Net cash provided by (used in)
operating activities |
|
(3,079,355 |
) |
|
|
27,770,210 |
|
|
|
|
|
|
|
|
|
Investing
Activities |
|
|
|
|
|
|
|
Purchases of property and equipment |
|
(455,057 |
) |
|
|
(388,628 |
) |
Net cash (used in) investing
activities |
|
(455,057 |
) |
|
|
(388,628 |
) |
|
|
|
|
|
|
|
|
Financing
Activities |
|
|
|
|
|
|
|
Payments on equipment loan |
|
(36,868 |
) |
|
|
(28,215 |
) |
Proceeds from issuance of common stock |
|
10,510 |
|
|
|
- |
|
Purchases of treasury stock |
|
(149,769 |
) |
|
|
(19,036 |
) |
Net cash (used in) financing
activities |
|
(176,127 |
) |
|
|
(47,251 |
) |
|
|
|
|
|
|
|
|
Change in cash, cash
equivalents, prepaid card loads, customer deposits and merchant
reserves |
|
(3,710,539 |
) |
|
|
27,334,331 |
|
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 |
$ |
42,199,947 |
|
|
$ |
59,677,832 |
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information |
|
|
|
|
|
|
|
Cash paid during the period
for: |
|
|
|
|
|
|
|
Interest |
$ |
27,835 |
|
|
$ |
1,195 |
|
Income taxes |
|
— |
|
|
|
312,158 |
|
Non-cash financing
activity: |
|
|
|
|
|
|
|
Issuance of deferred stock compensation |
|
1,497,300 |
|
|
|
2,478,506 |
|
USIO, INC.STATEMENT OF CHANGES
IN STOCKHOLDERS'
EQUITY(UNAUDITED) |
|
|
Common Stock |
|
|
AdditionalPaid- In |
|
|
Treasury |
|
|
Deferred |
|
|
Accumulated |
|
|
TotalStockholders' |
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Stock |
|
|
Compensation |
|
|
Deficit |
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December
31, 2023 |
|
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 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
153,225 |
|
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 March 31,
2024 |
|
28,779,206 |
|
|
$ |
197,194 |
|
|
$ |
97,632,948 |
|
|
$ |
(4,406,973 |
) |
|
$ |
(6,561,728 |
) |
|
$ |
(71,588,341 |
) |
|
$ |
15,273,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock under
equity incentive plan |
|
994,049 |
|
|
|
994 |
|
|
|
1,610,320 |
|
|
|
— |
|
|
|
(1,497,300 |
) |
|
|
— |
|
|
|
114,014 |
|
Issuance of common stock under
employee stock purchase plan |
|
6,180 |
|
|
|
6 |
|
|
|
10,504 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,510 |
|
Reversal of deferred
compensation amortization that did not vest |
|
(15,000 |
) |
|
|
(15 |
) |
|
|
(31,305 |
) |
|
|
— |
|
|
|
31,320 |
|
|
|
— |
|
|
|
— |
|
Deferred compensation
amortization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
346,048 |
|
|
|
— |
|
|
|
346,048 |
|
Purchase of treasury stock
costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(104,946 |
) |
|
|
— |
|
|
|
— |
|
|
|
(104,946 |
) |
Net income for the period |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
75,492 |
|
|
|
75,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30,
2024 |
|
29,764,435 |
|
|
$ |
198,179 |
|
|
$ |
99,222,467 |
|
|
$ |
(4,511,919 |
) |
|
$ |
(7,681,660 |
) |
|
$ |
(71,512,849 |
) |
|
$ |
15,714,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December
31, 2022 |
|
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 March 31,
2023 |
|
28,466,150 |
|
|
$ |
196,892 |
|
|
$ |
96,687,132 |
|
|
$ |
(3,757,556 |
) |
|
$ |
(7,833,278 |
) |
|
$ |
(70,848,216 |
) |
|
$ |
14,444,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock under
equity incentive plan |
|
111,456 |
|
|
|
111 |
|
|
|
354,199 |
|
|
|
— |
|
|
|
(34,452 |
) |
|
|
— |
|
|
|
319,858 |
|
Reversal of deferred
compensation amortization that did not vest |
|
(115,000 |
) |
|
|
(115 |
) |
|
|
(188,088 |
) |
|
|
— |
|
|
|
103,091 |
|
|
|
— |
|
|
|
(85,112 |
) |
Deferred compensation
amortization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
343,123 |
|
|
|
— |
|
|
|
343,123 |
|
Purchase of treasury stock
costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,507 |
) |
|
|
— |
|
|
|
— |
|
|
|
(10,507 |
) |
Non-cash return of common
stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(156,162 |
) |
|
|
— |
|
|
|
— |
|
|
|
(156,162 |
) |
Net income for the period |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
205,041 |
|
|
|
205,041 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30,
2023 |
|
28,462,606 |
|
|
$ |
196,888 |
|
|
$ |
96,853,243 |
|
|
$ |
(3,924,225 |
) |
|
$ |
(7,421,516 |
) |
|
$ |
(70,643,175 |
) |
|
$ |
15,061,215 |
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES(UNAUDITED) |
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Operating
income (Loss) to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (Loss) |
$ |
(208,941 |
) |
|
$ |
230,694 |
|
|
$ |
(490,898 |
) |
|
$ |
306,713 |
|
Depreciation and amortization |
|
547,849 |
|
|
|
522,999 |
|
|
|
1,124,003 |
|
|
|
1,041,028 |
|
EBITDA |
|
338,908 |
|
|
|
753,693 |
|
|
|
633,105 |
|
|
|
1,347,741 |
|
Non-cash stock-based
compensation expense, net |
|
460,061 |
|
|
|
577,869 |
|
|
|
959,334 |
|
|
|
1,082,443 |
|
Adjusted EBITDA |
$ |
798,969 |
|
|
$ |
1,331,562 |
|
|
$ |
1,592,439 |
|
|
$ |
2,430,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Adjusted EBITDA
margins: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
20,079,888 |
|
|
$ |
21,436,572 |
|
|
$ |
41,050,274 |
|
|
$ |
42,952,842 |
|
Adjusted EBITDA |
$ |
798,969 |
|
|
$ |
1,331,562 |
|
|
$ |
1,592,439 |
|
|
$ |
2,430,184 |
|
Adjusted EBITDA margins |
|
4.0 |
% |
|
|
6.2 |
% |
|
|
3.9 |
% |
|
|
5.7 |
% |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES(UNAUDITED) |
|
|
June 30, 2024 |
|
|
June 30, 2023 |
|
|
|
|
|
|
|
|
|
Reconciliation from net cash
(used in) operating activities to Non-GAAP Adjusted Operating Cash
Flow: |
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
$ |
(3,064,283 |
) |
|
$ |
27,770,210 |
|
Operating cash flow
adjustments: |
|
|
|
|
|
|
|
Prepaid card load obligations |
|
3,522,055 |
|
|
|
(26,227,715 |
) |
Customer deposits |
|
57,725 |
|
|
|
(9,070 |
) |
Merchant reserves |
|
458,256 |
|
|
|
(231,539 |
) |
Operating lease right-of-use assets |
|
(236,367 |
) |
|
|
(114,956 |
) |
Operating lease liabilities |
|
246,945 |
|
|
|
134,979 |
|
Total adjustments to net cash
provided by operating activities |
$ |
4,048,614 |
|
|
$ |
(26,448,301 |
) |
Adjusted operating cash flows provided |
$ |
984,331 |
|
|
$ |
1,321,909 |
|
Usio (NASDAQ:USIO)
過去 株価チャート
から 7 2024 まで 8 2024
Usio (NASDAQ:USIO)
過去 株価チャート
から 8 2023 まで 8 2024