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USAT Posts Revenue Growth Net Loss In Q2 Raises Full-Year Outlook

MALVERN, PA -- USA Technologies Inc.'s revenue climbed 49% in the 2018 second quarter to $32.5 million from $21.8 million a year earlier, marking its 33rd consecutive quarter of growth. USAT posted a second-quarter net loss of $12.5 million, or 24¢ per share, which includes a one-time charge of $9.1 million, or 17¢ per share, primarily related to the enactment of the U.S. Tax Cuts and Jobs Act as well as $3.4 million, or 6¢ per share, in one-time integration and acquisition-related expenses. This compare...

February 7, 2018

MALVERN, PA -- USA Technologies Inc.'s revenue climbed 49% in the 2018 second quarter to $32.5 million from $21.8 million a year earlier, marking its 33rd consecutive quarter of growth.

USAT posted a second-quarter net loss of $12.5 million, or 24¢ per share, which includes a one-time charge of $9.1 million, or 17¢ per share, primarily related to the enactment of the U.S. Tax Cuts and Jobs Act as well as $3.4 million, or 6¢ per share, in one-time integration and acquisition-related expenses. This compares with net income of $233,000 in the 2017 second quarter.

The results for the period, ended Dec. 31, 2017, reflect the Malvern, PA, cashless payment technology company's acquisition of Cantaloupe Systems Inc. on Nov. 9, 2017.

USAT reported 311,000 new net connections in the 2018 second quarter, which includes approximately 270,000 connections related to the acquisition of Cantaloupe and bring its total connections to more than 900,000.

Second quarter license and transaction fee revenue grew 37% year over year to $22.9 million.

"We are very pleased with the significant progress we have made in integrating Cantaloupe into our organization," said USAT chairman and chief executive Stephen P. Herbert. "Our strong second quarter results were fueled by our ability to leverage our combined platform to provide a turnkey enterprise solution to our customers. We are very encouraged by the early success that we achieved in cross selling our newly acquired cloud-based analytics software."

"The integration with Cantaloupe is proceeding very well, and we believe that cost reduction actions we are implementing will result in cost savings of approximately $3 million on an annualized basis," added USAT chief financial officer Priyanka Singh. "Additionally, with our sales teams fully integrated, we are excited about additional cross selling opportunities ahead of us."

USAT raised its guidance for full fiscal year 2018. The company now expects revenue to be between $140 million to $145 million and adjusted EBITDA to be between $13.5 million and $14.5 million.

The company expects total connections to its service as of the end of the fiscal year to be in the 1.03 million to 1.07 million range.