USA Technologies Announces First-Quarter Fiscal-Year 2016 Results

PRESS RELEASE

First-Quarter Financial Highlights

» Total revenue of $16.6 million, a year-over-year increase of 35%
» 349,000 connections to ePort service, a year-over-year increase of 26%
» Record 10,275 customers compared to 7,900 in the same quarter last year
» Record license and transaction fee revenue of $12.9 million, a year-over-year increase of 27%
» License and transaction fees gross margins increased to 33% from 29% in the prior year
» Equipment gross margins increased to 23% from 11% in the prior year
» Adjusted EBITDA of $1.7 million, a year-over-year increase of 85%
» Achieved positive free cash flow* for third straight quarter fueled by success in the company's QuickStart third-party leasing program

*(Defined as cash flow from operations less cash used for the purchase of equipment for the JumpStart rental program.)

"The growing number of transactions and transaction volume, in addition to the growing number of USAT customers, indicate that we are capitalizing on the cashless payment trend and delivering on our strategic initiatives," said Stephen P. Herbert, USA Technologies' chairman and chief executive. "Many of our largest customers are moving to connect 100% of their machines to USAT's ePort Connect technology incentivized by our Premium Support Service, the latest product offering which provides customers with a cross-functional service model to realize the impact of USAT's ePort Connect technology on their business, including increased awareness and accelerated adoption of cashless payments."

Fiscal 2016 Outlook

For full year fiscal 2016, management expects to add more than 75,000 net new connections , bringing total connections on the service to over 400,000 and expects total revenue to be between $69 million and $71 million. Additionally, we anticipate that QuickStart will remain a popular program for customers, and management expects it to drive positive free cash flows in fiscal year 2016. We also expect to have year-over-year increases of adjusted EBITDA and non-GAAP net income.

Click here for first quarter financial highlights and transaction data.