USA Technologies, Inc., a provider of wireless, cashless payment and M2M telemetry solutions for small-ticket, self-serve retailing industries, announced the following preliminary information for the third quarter of fiscal year 2012 ended March 31, 2012.
Total revenues for the third quarter are expected to be approximately $7.5 million, reflecting an increase of approximately 36 percent from the same period in the prior year.
Recurring revenues for the third quarter are expected to be approximately $5.9 million, an increase of approximately 39 percent from the third quarter of fiscal 2011. Recurring revenues, which represented approximately 79 percent of total revenues for the third quarter, are comprised of ePort Connect® license fees and transaction processing fees per connection as well as rental revenues from USA Technologies’ JumpStart program.
Total connections added in the quarter, which contribute to future recurring revenues, were approximately 12,000, an increase of 304 percent from the same period a year ago. The growth in connections was fueled by USAT’s JumpStart program, expansion into vertical markets such as kiosk and continued demand for cashless payment solutions to meet consumer’s desire for non-cash options. Based on preliminary additional connections of 12,000 for the quarter, USAT’s total connected base now stands at approximately 148,000, a 32 percent increase from the same period one year ago.
Adjusted EBITDA is expected to be approximately $300,000 for the third quarter of fiscal 2012, compared to an Adjusted EBITDA loss of $(940,170) for the third quarter of fiscal 2011.
“When we communicated our priorities to shareholders in late 2011, we indicated that our top priority was to drive the business toward profitability,” said Stephen P. Herbert, chairman and CEO of USA Technologies in a prepared statement. “We also said that the first milestone in reaching that goal was achieving positive and sustainable Adjusted EBITDA. Given these goals, we are extremely pleased with our progress. We achieved positive Adjusted EBITDA in each and every month this quarter, evidence that the steps we have taken to streamline expenses are taking hold and our business model is beginning to yield the recurring revenue base necessary to fund our future growth. These positive indicators combined with our growing connected service base and the various growth initiatives underway, point to the strong commitment of USAT’s board of directors and management team in driving shareholder value.
“Consumers are clearly moving toward cashless payment including credit, debit and mobile payment options. We want our customers to participate in this exciting industry trend and our growth platforms reflect that commitment. We are driving adoption in the largely untapped traditional vending market, leveraging opportunities in vertical markets like kiosk, and we are working to expand our services offerings, some of which will be introduced to customers at trade shows and marketing events later in the month,” said Herbert.
The third quarter fiscal 2012 financial results included in this release are preliminary and subject to finalization of USA Technologies’ quarterly financial and accounting procedures. USA Technologies will hold a conference call and Webcast to review its third quarter fiscal 2012 financial results in early May. Details will be released approximately two weeks prior to the call.