2018 Q3 Form 10-Q Financial Statement

#000162828019012235 Filed on October 09, 2019

View on sec.gov

Income Statement

Concept 2018 Q3
Revenue $33.77M
YoY Change 33.69%
Cost Of Revenue $23.41M
YoY Change 22.72%
Gross Profit $11.06M
YoY Change 78.9%
Gross Profit Margin 32.75%
Selling, General & Admin $9.450M
YoY Change 36.48%
% of Gross Profit 85.46%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $2.147M
YoY Change 56.72%
% of Gross Profit 19.42%
Operating Expenses $16.03M
YoY Change 102.13%
Operating Profit -$4.973M
YoY Change 184.17%
Interest Expense $786.0K
YoY Change 66.17%
% of Operating Profit
Other Income/Expense, Net -$381.0K
YoY Change -3.05%
Pretax Income -$6.302M
YoY Change 194.07%
Income Tax $18.00K
% Of Pretax Income
Net Earnings -$5.288M
YoY Change 143.57%
Net Earnings / Revenue -15.66%
Basic Earnings Per Share -$0.09
Diluted Earnings Per Share -$0.09
COMMON SHARES
Basic Shares Outstanding 60.05M shares
Diluted Shares Outstanding 60.05M shares

Balance Sheet

Concept 2018 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $68.30M
YoY Change 31.6%
Cash & Equivalents $68.26M
Short-Term Investments
Other Short-Term Assets $1.500M
YoY Change 36.36%
Inventory $6.915M
Prepaid Expenses
Receivables $18.92M
Other Receivables $5.200M
Total Short-Term Assets $100.7M
YoY Change 37.84%
LONG-TERM ASSETS
Property, Plant & Equipment $9.778M
YoY Change -8.63%
Goodwill $64.15M
YoY Change 458.21%
Intangibles $28.53M
YoY Change 4836.51%
Long-Term Investments
YoY Change
Other Assets $1.974M
YoY Change 583.04%
Total Long-Term Assets $117.1M
YoY Change 280.27%
TOTAL ASSETS
Total Short-Term Assets $100.7M
Total Long-Term Assets $117.1M
Total Assets $217.8M
YoY Change 109.74%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $19.34M
YoY Change 33.29%
Accrued Expenses $21.85M
YoY Change 78.83%
Deferred Revenue $1.814M
YoY Change 313.21%
Short-Term Debt $0.00
YoY Change -100.0%
Long-Term Debt Due $33.90M
YoY Change 1203.85%
Total Short-Term Liabilities $76.51M
YoY Change 107.68%
LONG-TERM LIABILITIES
Long-Term Debt $900.0K
YoY Change -10.0%
Other Long-Term Liabilities $100.0K
YoY Change -50.0%
Total Long-Term Liabilities $1.069M
YoY Change -12.38%
TOTAL LIABILITIES
Total Short-Term Liabilities $76.51M
Total Long-Term Liabilities $1.069M
Total Liabilities $77.58M
YoY Change 103.83%
SHAREHOLDERS EQUITY
Retained Earnings -$232.4M
YoY Change 3.91%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $138.0M
YoY Change
Total Liabilities & Shareholders Equity $217.8M
YoY Change 109.74%

Cashflow Statement

Concept 2018 Q3
OPERATING ACTIVITIES
Net Income -$5.288M
YoY Change 143.57%
Depreciation, Depletion And Amortization $2.147M
YoY Change 56.72%
Cash From Operating Activities -$14.12M
YoY Change -2058.67%
INVESTING ACTIVITIES
Capital Expenditures $693.0K
YoY Change -3.75%
Acquisitions
YoY Change
Other Investing Activities $30.00K
YoY Change -40.0%
Cash From Investing Activities -$663.0K
YoY Change -1.78%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$917.0K
YoY Change -102.35%
NET CHANGE
Cash From Operating Activities -$14.12M
Cash From Investing Activities -$663.0K
Cash From Financing Activities -$917.0K
Net Change In Cash -$15.70M
YoY Change -140.13%
FREE CASH FLOW
Cash From Operating Activities -$14.12M
Capital Expenditures $693.0K
Free Cash Flow -$14.82M
YoY Change -1481600.0%

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CY2018Q3 us-gaap Temporary Equity Shares Issued
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CY2018Q2 us-gaap Temporary Equity Shares Outstanding
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CY2018Q3 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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CY2018Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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67000 USD
CY2018Q3 usat Excess Tax Benefits
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CY2017Q3 usat Excess Tax Benefits From Share Based Compensation
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CY2018Q2 usat Intangible Assets Gross Including Goodwill
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CY2018Q3 usat Intangible Assets Gross Including Goodwill
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CY2018Q2 usat Longterm Debtand Lease Obligation Gross
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CY2018Q3 usat Longterm Debtand Lease Obligation Gross
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CY2017Q3 usat Stock Issuance Cost
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CY2018Q3 us-gaap Nature Of Operations
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:13px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">BUSINESS</font></div><div style="line-height:120%;padding-top:16px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">USA Technologies,&#160;Inc. (the &#8220;Company&#8221;, &#8220;We&#8221;, &#8220;USAT&#8221;, or &#8220;Our&#8221;) was incorporated in the Commonwealth of Pennsylvania in January&#160;1992. We are a provider of technology-enabled solutions and value-added services that facilitate electronic payment transactions and consumer engagement services primarily within the unattended Point of Sale (&#8220;POS&#8221;) market. We are a leading provider in the small ticket, beverage and food vending industry in the United States and are expanding our solutions and services to other unattended market segments, such as amusement, commercial laundry, kiosk and others. Since our founding, we have designed and marketed systems and solutions that facilitate electronic payment options, as well as telemetry and IoT services, which include the ability to remotely monitor, control, and report on the results of distributed assets containing our electronic payment solutions. Historically, these distributed assets have relied on cash for payment in the form of coins or bills, whereas, our systems allow them to accept cashless payments such as through the use of credit or debit cards or other emerging contactless forms, such as mobile payment. The connection to the ePort Connect platform also enables consumer loyalty programs, national rewards programs and digital content, including advertisements and product information to be delivered at the point of sale.</font></div><div style="line-height:120%;padding-top:16px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On November 9, 2017, the Company acquired all of the outstanding equity interests of Cantaloupe Systems, Inc. (&#8220;Cantaloupe&#8221;), pursuant to the Agreement and Plan of Merger (&#8220;Merger Agreement&#8221;). Cantaloupe is a premier provider of cloud and mobile solutions for vending, micro markets, and office coffee service. The acquisition expanded the Company&#8217;s existing platform to become an end-to-end enterprise platform integrating Cantaloupe&#8217;s Seed Cloud which provides cloud and mobile solutions for dynamic route scheduling, automated pre-kitting, responsive merchandising, inventory management, warehouse and accounting management, as well as cashless vending. The combined companies complete the value chain for customers by providing both top-line revenue generating services as well as bottom line business efficiency services to help operators of unattended retail machines run their business better. The combined product offering provides the data-rich Seed system with USAT&#8217;s consumer benefits, providing operators with valuable consumer data that results in customized experiences. In addition to new technology and services, due to Cantaloupe&#8217;s existing customer base, the acquisition expands the Company&#8217;s footprint into new global markets.</font></div><div style="line-height:120%;padding-top:13px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">INTERIM FINANCIAL INFORMATION</font></div><div style="line-height:120%;padding-top:13px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q.&#160;&#160;Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements and therefore should be read in conjunction with the Company&#8217;s June 30, 2018 Annual Report on Form 10-K, which has been filed concurrently with this Form 10-Q.&#160;In the opinion of management, all adjustments considered necessary for a fair presentation, consisting of normal recurring adjustments, have been included.&#160;&#160;Operating results for the </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;"> are not necessarily indicative of the results that may be expected for the year ending </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2019</font><font style="font-family:inherit;font-size:10pt;">.&#160;&#160;The balance sheet at </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;"> has been derived from the audited consolidated financial statements at that date, but does not include all disclosures required by accounting principles generally accepted in the United States of America.</font></div></div>

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