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 third quarter ended March 31, 2016.
Third Quarter Financial Highlights:
- Total quarterly revenue of $20.4 million, a year-over-year increase of 33%
- 32,000 net connections for the quarter compared to 14,000 in the same quarter last year, a year-over-year increase of 129%
- 401,000 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 33%
- Record 10,825 customers compared to 8,925 as of a year ago, a year-over-year increase of 21%
- Quarterly record license and transaction fee revenue of $14.7 million, a year-over-year increase of 33%
- $4.3 million of cash provided by operating activities representing the fifth straight quarter of positive operating cash flow
- Quarterly GAAP net loss of $5.4 million, including the impact of a $4.8 million non-cash expense for the fair value warrant liability adjustment, $461,000 of non-recurring expenses relating to the acquisition and integration of the VendScreen business, and $105,000 of professional fees incurred in connection with the class action litigation which was dismissed by the court in April 2016
- Quarterly Non-GAAP net loss of $87,000, or $(0.01) per share
- Quarterly adjusted EBITDA of $1.3 million
"We are experiencing an inflection point in the unattended retail payments market with our cashless-payment solutions while achieving record revenue and integrating an acquisition," said Stephen P. Herbert, USA Technologies' chairman and chief executive officer. "With the introduction of our ePort Interactive Service, our most progressive solution to date, our customers now can leverage a content delivery platform to directly engage with their customers. Additionally, the Premium Support Service continues to incentivize operators to move to cashless payments at 100% of their locations, which proliferates the acceptance of cashless payments in the self-service retail market. We view the broadening adoption of cashless payment solutions, coupled with our continued growth, as validation that USAT is positioned as the clear leader in the self-service retail market."
Fiscal 2016 Outlook
For full fiscal year 2016, management raised its expectations for connections and revenue, and it now expects to add between 93,000 and 95,000 net new connections for the year, bringing total connections to our service to a range of 426,000 to 428,000 and expects total revenue to be between $76 million and $78 million. Additionally, the company anticipates that QuickStart will remain a popular program for customers, and management expects it to drive positive cash provided by operating activities in fiscal year 2016. We also expect to have year-over-year increases of adjusted EBITDA and non-GAAP net income. Full report.
