[ACCESSWIRE]
LONDON, UK / ACCESSWIRE / September 15, 2016 / Active Wall St. announces its post-earnings coverage on USA Technologies Inc. (NASDAQ: USAT). The company posted its financial results for the fourth fiscal quarter (Q4 FY16) and fiscal year 2016 (FY 16) on September 13th, 2016. The payment technology service provider of integrated cashless and mobile transactions in the self-service retail market reported seventh consecutive year of revenue growth. Register with us now for your free membership at: http://www.activewallst.com/register/.
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Earnings Reviewed
For the quarter ended on June 30th, 2016, USA Technologies posted that its net loss widened to $872,000, or $(0.02) per share, from $201,000, or $(0.01) per share, in the year ago period. The results included the impact of a $432,000 non-cash expense for the write-down of trademarks to net realizable value of zero and $258,000of non-recurring expenses related to the acquisition and integration of the VendScreen business. On an adjusted basis, the company reported net loss of $1.4 million compared to a non-GAAP net loss of $392,000 in the same quarter last year.
Net loss for the FY16 was $6.8 million compared to net loss of $1.1 million for FY15. The net loss reflected the $5.7 million non-cash charge for the change in the fair value of the warrant liability.
For Q4 FY16, USA Technologies reported revenue of $21.9 million, a record high for the company, and up 24% on y-o-y basis. The revenue figure included $15.3 million in recurring revenue line of license and transaction compared to $11.9 million in the year-ago quarter, a 28% increase. Equipment sales were $6.7 million compared to $5.7 million in Q4 FY15; representing a 17% growth. The revenue number was above analysts' estimates of $21.20 million. For FY16, revenue was approximately $77.4 million, growing 33% from 2015. The company stated that they have completed their 27th consecutive quarters of y-o-y growth.
Connections
During Q4 FY16, USA Technologies added 28,000 net connections compared to 31,000 in Q4 FY15. Total connections to the service now stand at 429,000, a record for the company. The company added 225 new customers in the reported quarter, ending with a total of 11,050, a 15% increase in customer accounts from Q4 FY15.
USA Technologies was able to derive increases in connections and revenues, primarily from deeper penetration of existing customer accounts. During Q4 FY16, USA Technologies reported 89 million total transactions and $169 million in transaction volume, increases of 43% and 50% respectively from Q4 FY15.
Margin Business
For Q4 FY16, USA Technologies' gross margins were 26.4%, slightly down from the 27.9% in Q4 FY15. The decline was attributed to a drop in the license and transaction margins from 34% to 30.5%, due primarily to non-recurring items. Overall gross profit margins for FY16 was 28%, composed of unchanged licensing transaction fee margins of 33%, and by a slight decrease in equipment sales margins to 17% from 18% in FY 15.
Cash
During Q4 FY16, USA Technologies generated $1.3 million of cash by operating activities representing a sixth straight quarter of positive operating cash flow. The company ended the quarter with $19.3 million in cash and cash equivalents.
FY17 Outlook
For FY17, USA Technologies' management expects to add between 115,000 and 125,000 net new connections. The company expects total revenue to be between $95 million and $100 million and also forecasting for y-o-y increases of adjusted EBITDA and non-GAAP net income.
Stock Performance
On Wednesday, the stock closed the trading session at $4.82, flat from its previous closing price of $4.82. A total volume of 380.64 thousand shares have exchanged hands, which was higher than the 3-month average volume of 282.10 thousand shares. USA Technologies' stock price rallied 15.59% in the last three months and 23.59% in the previous six months. Furthermore, on a year to date basis, the stock surged 56.49%.
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