USA: Q2 EPS of $0.02 beats by $0.01. Revenue of $32.5M (+49.4% Y/Y) beats by $1.11M.
Growth is very impressive. Even if you discount the Cantaloupe acquisition.
The Cantaloupe acquisition was a great accretive move. The street loves it.
USAT still has to post a GAAP Black annual profit. The street apparently is perfectly willing to wait for it.
The 2018 guidance is fantastic. They raised their outlook and connections will top 1 million. That's a huge jump from when I took my first position when they had fewer than 250,000 connections.
I am not selling USAT because they keep growing connections and EBITDA. They will eventually make GAAP black numbers as long as they continue in this direction ... or they get acquired.
Price
$9.60
Day's Change
1.45 (17.79%)
Bid
9.60
Ask
9.75
B/A Size
700x100
Day's High
9.95
Day's Low
8.90
Volume (Heavy Day)
305,906
February 08, 2018 9:41am ET
USA: Q2 EPS of $0.02 beats by $0.01. Revenue of $32.5M (+49.4% Y/Y) beats by $1.11M.
USA Technologies Announces Second Quarter Fiscal Year 2018 Results
Thu February 8, 2018 7:00 AM
Business Wire
About: USAT
Q2: 02-04-18 Earnings Summary
Achieved Year-Over-Year Growth of 49% in Revenue
Signed 20 Existing Customers for Newly Acquired Logistics and Enterprise Software
MALVERN, Pa.--(BUSINESS WIRE)-- USA Technologies (USAT), Inc. (NASDAQ:USAT) (“USAT”), a premier payment technology service provider of integrated cashless and mobile transactions in the self-service retail market, today reported results for its second quarter ended December 31, 2017.
Second Quarter Financial Highlights:
* Revenue of $32.5 million, which reflects the acquisition of Cantaloupe Systems, Inc. (“Cantaloupe”) on November 9, 2017, increased 49% year-over-year, marking the 33rd consecutive quarter of growth
* On a pro-forma basis, as if the acquisition of Cantaloupe had occurred on July 1, 2016, revenue increased 26% year-over-year
* New net connections of 311,000, which include approximately 270,000 connections related to the acquisition of Cantaloupe and bring total connections over 900,000
* License and transaction fee revenue of $22.9 million, an increase of 37% year-over-year
* Operating loss of $(3.2) million
* Adjusted operating income (non-GAAP) of $0.6 million
* Net loss of $(12.5) million, or $(0.24) per share and includes a one-time charge of $9.1 million, or $0.17 per share, primarily related to the enactment of the U.S. Tax Cuts and Jobs Act as well as $3.4 million, or $0.06 per share, in one-time integration and acquisition related expenses
* Non-GAAP net income of $1.2 million, or $0.02 per share
* Adjusted EBITDA of $2.9 million, an increase of 68% year-over-year
* Ended the quarter with $15.4 million in cash
“We are very pleased with the significant progress we have made in integrating Cantaloupe into our organization,” said Stephen P. Herbert, USA Technologies’ Chairman and Chief Executive Officer. “Our strong second quarter results were fueled by our ability to leverage our combined platform to provide a turnkey enterprise solution to our customers. We are very encouraged by the early success that we achieved in cross selling our newly acquired cloud-based analytics software, with 20 customers having already signed agreements during the second quarter to adopt elements of our performance optimization software. We remain focused on executing on our strategy to grow our market share and believe that our product offering and the unprecedented value proposition we can now offer prospective and existing customers positions us well for future growth.”
“We’re extremely pleased to report strong financial results for our first quarter as a combined company,” said Priyanka Singh, USA Technologies’ Chief Financial Officer. “The integration with Cantaloupe is proceeding very well, and we believe that cost reduction actions we are implementing will result in cost savings of approximately $3 million on an annualized basis. Additionally, with our sales teams fully integrated, we are excited about additional cross selling opportunities ahead of us.”
Fiscal Year 2018 Outlook
USAT is raising its outlook for fiscal year 2018. For full fiscal year 2018, the company now expects revenue to be between $140 million to $145 million and adjusted EBITDA to be between $13.5 million to $14.5 million. USAT expects total connections to its service as of the end of the fiscal year to be in the 1.03 million to 1.07 million range. USAT continues to expect the Cantaloupe transaction to be accretive in fiscal 2018, net of one-time transaction and integration expenses and any purchase accounting adjustments.
USA Technologies has not reconciled the company’s adjusted EBITDA outlook to GAAP net income (loss) due to the uncertainty and potential variability of the provision for (benefit from) income taxes, and integration and acquisition costs, each of which is a reconciling item between adjusted EBITDA and GAAP net income (loss). Because these items are uncertain, depend on various factors, cannot be reasonably predicted, and could have a significant impact on the calculation of GAAP net income (loss), USA Technologies has not provided guidance for GAAP net income (loss) or a reconciliation of the company’s adjusted EBITDA outlook to GAAP net income (loss). Accordingly, a GAAP net income (loss) outlook and a reconciliation of adjusted EBITDA outlook to GAAP net income (loss) is not available without unreasonable effort. For information regarding the reconciliation of historical non-GAAP financial measures to the nearest comparable GAAP measures, see "Discussion of Non-GAAP Financial Measures" below and the reconciliation tables included in this press release under “Financial Schedules”.
Webcast and Conference Call
USA Technologies will host a conference call and webcast the event beginning at 8:30 a.m. Eastern Time today, February 8, 2018.
To participate in the conference call, please dial (866) 393-1608 approximately 10 minutes prior to the call. International callers should dial (224) 357-2194. Please reference conference ID # 5299336.
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