MALVERN, Pa.--(BUSINESS WIRE)--Apr. 14, 2020-- USA Technologies, Inc. (OTC:USAT) (“USAT” or the “Company”), a cashless payments and software services company that provides end-to-end technology solutions for the self-service retail market, today announced that it has filed an investor presentation in connection with its 2020 Annual Meeting of Shareholders. The USAT Board of Directors strongly recommends that USAT shareholders protect the value of their investment by voting on the WHITE proxy card “FOR” USAT’s director nominees.
The presentation is available at https://usatechnologiesinc.gcs-web.com/investor-relations. The highlights of the presentation include:
- USAT is taking prudent steps to conserve liquidity, control costs and partner with customers in light of COVID-19 volatility. The Company has made significant progress on critical strategic initiatives, driving improved results in the second quarter fiscal year 2020. Revenues were up 27.7% year-over-year and margins expanded by over 150 basis points. USAT did not lose a single customer and delivered $1.2 million Q2 Core EBITDA, which consists of reported Adjusted EBITDA of ($2.3) million and excludes additional non-recurring expenses related to the investigation, restatement and proxy contest1.
- USAT has made far-reaching changes, including overhauling its controls and compliance policies and significantly refreshing its Board and management team.
- USAT has taken significant action to enhance its internal compliance through the creation of a Compliance Committee of the Board in December 2018, the hiring of a Chief Compliance Officer who reports directly to the Committee in April 2019, and the completion of its audit and restatements to regain compliance with periodic reporting requirements.
- Of the seven current USAT directors, five of the directors have been appointed since April 2019, including two directors who were appointed in February 2020.
- USAT’s President and Chief Executive Officer, Donald W. Layden, Jr., who is also a member of the Board, has been essential to the rapid progress made to strengthen the business, including maintaining and building critical customer relationships. In addition, USAT recently named a new CFO who brings significant experience in the payments industry with expertise in risk management and diligence.
1 The Company reported a Q2 net loss of ($8.4) million. See the reconciliation below.
- USAT is open to fresh perspectives as demonstrated by the inclusion of three HEC candidates on the USAT slate. In total, the USAT slate of nominees for election will comprise 10 individuals, nine of whom would serve as independent directors, and eight of whom will have been appointed since April 2019. USAT included HEC nominees Lisa Baird, Ellen Richey and Anne Smalling as part of the Company’s slate of nominees because the Company recognizes that shareholders desire fresh thinking on the Board.
Against the backdrop of ongoing economic volatility and the uncertainty surrounding COVID-19, USAT’s primary focus is to ensure business continuity. HEC’s vague claim to “reinvigorate USAT” is misguided, and the “change” it seeks would disrupt USAT’s core business and risk critical customer relationships, reversing the meaningful progress the refreshed Board and management team has made. The Board and management team remain committed to continuing to build on this momentum and strongly recommend that shareholders protect the value of their investment by voting on the WHITE proxy card for USAT’s nominees.
IMPORTANT—PROTECT THE VALUE OF YOUR INVESTMENT!
YOUR BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE USING THE WHITE PROXY CARD.
WE URGE YOU NOT TO VOTE USING ANY GOLD PROXY CARD YOU MAY HAVE RECEIVED FROM HUDSON EXECUTIVE CAPITAL.
If you have questions or require assistance voting your shares, please call the firm assisting us on this matter:
Okapi Partners LLC
1212 Avenue of the Americas, 24th Floor
New York, New York 10036
+ 1 (212) 297-0720 (Main)
+ 1 (877) 566-1922 (Toll-Free)
About USA Technologies, Inc.
USA Technologies, Inc. is a cashless payments and software services company that provides end-to-end technology solutions for the self-service retail market. With approximately 1.2 million connections, USAT is transforming the unattended retail community by offering one integrated solution for payments processing, logistics, and back-office management. The company’s enterprise-wide platform is designed to increase consumer engagement and sales revenue through digital payments, digital advertising and customer loyalty programs, while providing retailers with control and visibility over their operations and inventory. As a result, customers ranging from vending machine companies, to operators of micro-markets, gas and car charging stations, laundromats, metered parking terminals, kiosks, amusements and more, can run their businesses more proactively, predictably, and competitively.