MALVERN, Pa.--(BUSINESS WIRE)-- USA Technologies, Inc., a premier payment technology service provider of integrated cashless and mobile transactions in the self-service retail market, today reported results for its fourth quarter and fiscal year ended June 30, 2016.
Fourth Quarter Financial Highlights:
- Total quarterly revenue of $21.9 million, a year-over-year increase of 24%
- 429,000 connections to ePort service, including 6,000 new connections attributable to the VendScreen acquisition which closed on January 15, 2016, representing a year-over-year increase of 29%
- Record 11,050 customers compared to 9,600 as of a year ago, a year-over-year increase of 15%
- Quarterly record license and transaction fee revenue of $15.3 million, a year-over-year increase of 28%
- $1.3 million of cash provided by operating activities representing the sixth straight quarter of positive operating cash flow
- Ended the quarter with $19.3 million in cash and cash equivalents
- Quarterly GAAP net loss of $872 thousand, including the impact of a $432 thousand non-cash expense for the write-down of trademarks to net realizable value of zero and $258 thousand of non-recurring expenses related to the acquisition and integration of the VendScreen business
- Quarterly Non-GAAP net loss of $1.4 million
- Quarterly adjusted EBITDA of $0.6 million
Fourth Quarter Financial Highlights, Connections & Transaction Data:
Fiscal Year Financial Highlights:
- Record total revenue of $77.4 million, a year-over-year increase of 33%
- Record net connections of 96,000 for the year
- Net loss for the fiscal year of 2016 was $6.8 million compared to a net loss of $1.1 million for the fiscal year of 2015. The net loss for the fiscal year reflected a $5.7 million non-cash charge for the change in the fair value of warrant liabilities
- Non-GAAP net loss was $0.7 million for the 2016 fiscal year compared to non-GAAP net loss of $0.5 million for the 2015 fiscal year
"We ended the fiscal year with strong momentum as we continue to drive growth by the adoption of our cashless payment solutions," said Stephen P. Herbert, USA Technologies' chairman and chief executive officer. "Our customers are increasingly realizing the positive benefits of upgrading 100% of their locations with our ePort Connect service to enable consumers the cashless payment option. The addition of our ePort Interactive Service provides additional value with the ability to provide a more robust consumer experience and yields improved performance at the location. We've grown our business substantially and are poised for the next phase of growth as we work to improve profitability and scale our business."
As described in our Form 10-K for the fiscal year, to be filed today, based on management's assessment of the effectiveness of its internal control over financial reporting as of June 30, 2016, management identified control deficiencies, including three significant deficiencies, in the design or operating effectiveness of the Company's internal control over financial reporting, which when aggregated, represent a material weakness in internal control. The Company is committed to remediating the control deficiencies that gave rise to the material weakness. These internal controls are being evaluated by management, and will be adjusted appropriately as soon as is practical. Due its increased market capitalization, this is the first fiscal year that the Company's internal control over financial reporting has been subject to audit by its independent registered public accounting firm. Full report.
