USA Technologies, Inc., a leader in wireless, small-ticket cashless transactions, announced the extension of employment agreements for the company's executive leadership team.
Employment agreements for George R. Jensen, Jr., chairman and chief executive officer, Stephen P. Herbert, president and chief operating officer, and David M. DeMedio, chief financial officer, have been extended through June 2014. The leadership team that has driven USA Technologies' growth and success throughout the economic downturn and positioned the company to capitalize on the growing wireless, small-ticket, cashless payment industry will continue to lead the company.
In recognition of each of Messrs. Jensen, Herbert and DeMedio's dedicated and valuable service to the company and extending the term of their employment agreements, the company will issue 125,000 shares of common stock to Jensen, 75,000 shares of common stock to Herbert, and 25,000 shares of common stock to DeMedio. The shares would vest over a 2-year period.
Jack E. Price, chairman of the USA Technologies' compensation committee, said, "George Jensen, Steve Herbert, and Dave DeMedio have deftly steered USA Technologies through the recession while positioning the company as a leader in the small-ticket wireless cashless transactions market. As such, their collective ‘intellectual property' is one of the company's most valuable assets and I believe is essential for our continued success. The company believes that this market is now poised for continued growth, so it is appropriate that we extend the employment agreements of these three executives so that their leadership and management talent is available to the company."
Price continued, "Earlier this week, USA Technologies announced a monthly processing record of 7.5 million small-ticket transactions representing $12.2 million in transaction processing volume, equating to almost $150 million of annualized processing volume. I do not believe that there is any other company in the small ticket transaction space that is generating this kind of transaction processing volume. I personally commend Messrs. Jensen, Herbert, and DeMedio, and look forward to working with them in the coming years."
Pursuant to its processing agreements with its customers, the company earns transaction processing fees equal to a percentage of the dollar volume processed by the company, which are included as licensing and transaction processing revenues in its statement of operations. The company's transaction processing volume is not necessarily indicative of the gross profit or any other financial results of the company. The company's financial results for the quarter and nine months ended March 31, 2011 will be reported in the company's Form 10-Q which the Company anticipates filing with the Securities and Exchange Commission