Usio Announces Second Quarter 2022 Financial Results

SAN ANTONIO — Usio, Corporation. (Nasdaq: USIO), a number one FinTech integrated payment solutions provider, today announced financial recent results for the 2nd quarter, which ended June 30, 2022.

Louis Hoch, President and Ceo of Usio, stated, “I am very happy to report another quarter of revenue growth, our eighth consecutive quarter of the year-over-year revenue growth. Revenue development in the quarter was driven by new all-time quarterly records in charge card dollars and transactions processed, strong year-over-year development in prepaid credit card volumes and transactions, in addition to a double-digit rise in total transaction/pieces processed at Output Solutions. While up sequentially, ACH electronic check transactions and dollars processed within the quarter were lower from last year’s record volumes, while came back check transactions within the quarter elevated 39%. Results once more demonstrate the effectiveness of our diversification strategy once we achieved growth despite weakness in our finish markets, cryptocurrency.”

“Based on our strong year up to now performance, our start up business pipeline, and also the prepaid credit card spoilage expected to be earned within the third and 4th quarters, offset by an anticipated 25 – 30% decrease in third quarter ACH transactions than the same period in 2021, caused by losing the Voyager ACH business, we’re revising our expectations for twelve month 2022 revenue growth to 12% – 18%, conditioned around the ongoing enthusiasm within the fintech lending industry and favorable economic conditions. Our pipeline for ACH, like several our business lines is wealthy, so we believe we can, with time, switch the lost revenue from Voyager through new sales. For example, there has been a rise in consumer lending, which we feel may lead up to 50% development in third quarter 2022 came back check transactions than the same period in 2021. We predict there are other similar possibilities, not just in ACH, but across our entire portfolio.”

“Revenues for that first three and 6 several weeks of the season are in all of our business lines aside from ACH in comparison with individuals periods this past year. For that quarter, ACH was in competition with an outsized last year quarter when cryptocurrency activity what food was in its peak. Prepaid was our fastest growing business line for the quarter and first half of the season on the percentage basis. We predict our strong relationships, growing quantity of programs offered and cards in circulation to guide to ongoing growth within the other half of the season, in addition to starting to generate revenue from card spoilage. Output Solutions is constantly on the outshine management’s expectations. E-commerce is benefitting in the synergies generated inside the various Usio business lines, and it is set to possess another strong other half. Charge card revenues were up 5%, where we achieved record volumes mainly because of the development of our PayFac business. The PayFac business has our most powerful start up business pipelines and can dramatically change its growth trajectory.”

In the last couple of several weeks Usio has carried out numerous proper actions to bolster the company and make shareholder value. Throughout the second quarter the Board approved a $4 million share repurchase program, and thru June 30, 2022, we repurchased over 180,000 shares for around roughly $450,000. Additionally, we welcomed Michelle Miller to the Board of Company directors, where she’ll function as a person in their Audit and Compensation Committees and expand how big the Board to 6. We’re very happy to welcome Mrs. Miller towards the Board once we may benefit from her insightful banking and business development experience in addition to her vast understanding that enhances the abilities in our existing Board people. With this strong balance sheet, aggressive online marketing strategy, and growing status for outstanding service in most our business lines, we feel there exists a plan in position that will us to attain our growth objectives of ongoing year-over-year revenue growth.

Second Quarter 2022 Revenue Detail

Revenues for that quarter ended June 30, 2022, elevated 6% to $16.two million, reflecting development in the Charge Card, Prepaid and Usio Output Solutions lines of economic.

Gross profits for that quarter were $3.3 million while gross margins were 20.1%. Margins reflect revenue add the quarter, mainly a small reduction in our greatest margin, ACH business, and a rise in the revenue from lower margin business lines.

Other selling, general and administrative expenses were $3.8 million for that quarter ended June 30, 2022, up 35% when compared with $2.8 million within the prior year period. The rise reflects ongoing investments within our ACH, PayFac, Prepaid and Output Solutions business lines, a considerable part of addressing a good investment in strengthening our infrastructure not only to support our current growth, but particularly to make sure we are able to supply the service levels in customer care for anticipated new cardholders along with other clients. Starting in the 3rd quarter, we feel expenses should begin to decrease as a result of decrease in customer support along with other prepaid services expenses due to losing any existing or anticipated Voyager card programs.

We reported a practical lack of $1.9 million for that quarter as well as an Adjusted EBITDA lack of $.six million within the quarter. We reported a internet lack of $1.9 million, or ($.10) per share, for that quarter ended June 30, 2022, over a internet earnings of $.two million, or $.01 per share, for the similar period within the prior year. Contributions for this loss include elevated revenue contribution from lower margin lines of economic and ongoing investments to aid our current growth, customer care service levels, security also it infrastructure, in addition to staffing and worker retention.

Adjusted Operating Cash Flows (excluding merchant reserve funds, prepaid credit card load assets, customer deposits and internet operating lease assets and obligations) used was $1.two million for that six-month period ended June 30, 2022. Cash flows utilized by operating activities was ($22.1) million for that quarter, when compared with cash flows supplied by operating activities of $2.six million within the same period last year, mainly because of timing variations between periods.

We continue being in solid personal finances with $5.a million in cash and funds equivalents on June 30, 2022.

Business Call and Webcast

Usio, Corporation.’s management will host a celebration ask Friday, August 12, 2022, at 11:00 am Eastern time for you to review financial results and supply a company update. To hear the business call, your customers inside the U.S. should call 1-844-883-3890. Worldwide callers should call 1-412-317-9246. All callers should request the Usio business call. The business call may also be available via a live webcast, which may be utilized through the company’s website at world wide web.usio.com/investors.

A replay from the call is going to be available roughly 1 hour following the finish from the call through August 26, 2022. The replay could be utilized through the Company’s website or by dialing 1-877-344-7529 (U.S.) or 1-412-317-0088 (worldwide). The replay conference playback code is 5469449.

About Usio, Corporation.

Usio, Corporation. (Nasdaq: USIO), a number one FinTech integrated payment solutions provider, offers an array of payment methods to retailers, billers, banks, service bureaus, crypto exchanges, and card providers. The Organization operates credit, debit/prepaid, and ACH payment processing platforms to provide convenient, world-class payment solutions and services for their clients. Using the purchase of the assets of IMS in December 2020, the organization offers additional services associated with electronic bill presentment, document composition, document decomposition and printing and mailing services. The effectiveness of the organization is based on being able to provide tailored solutions for card issuance, payment acceptance, and bill payments along with its unique technology within the prepaid sector. Usio is headquartered in Dallas, Texas, and it has offices in Austin, Texas and Franklin, Tennessee, just outdoors of Nashville.

Websites: world wide web.usio.com, world wide web.payfacinabox.com, world wide web.akimbocard.com and world wide web.usiooutput.com. Find us on Facebook® and Twitter.

About Non-GAAP Financial Measures

This pr release includes non-GAAP financial measures, EBITDA and adjusted EBITDA, as defined in Regulation G from the Securities and Exchange Act of 1934, as amended. The Organization reports its financial leads to compliance with GAAP, but believes which discussing non-GAAP measures provides investors with financial measures it uses in the treating of its business. The Organization defines EBITDA as operating earnings (loss), before interest, taxes, depreciation and amortization of intangibles. The Organization defines adjusted EBITDA as EBITDA, as defined above, plus non-cash stock option costs and certain non-recurring products, for example acquisitions. These measures might not be similar to similarly entitled measures as reported by others. Management uses EBITDA and adjusted EBITDA as indicators from the Company’s operating performance and skill to finance acquisitions, capital expenses along with other investments and, even without the refinancing options, to pay back debt obligations.

Management believes EBITDA and adjusted EBITDA are useful to investors in evaluating the business’s operating performance because non-cash costs along with other products that management believes aren’t suggestive of its outcomes of operations are excluded. EBITDA and adjusted EBITDA are supplemental non-GAAP measures, that have limitations being an analytical tool. Non-GAAP financial measures shouldn’t be considered as an alternative for, or better than, measures of monetary performance prepared in compliance with GAAP. Non-GAAP financial measures don’t reflect an extensive system of accounting, may vary from GAAP measures with similar names, and could vary from non-GAAP financial measures with similar or similar names which are utilized by others. For any description in our utilization of EBITDA and adjusted EBITDA, along with a reconciliation of EBITDA and adjusted EBITDA to operating earnings (loss), begin to see the portion of this pr release entitled “Non-GAAP Reconciliation.”

FORWARD-Searching STATEMENTS DISCLAIMER

Aside from the historic information contained herein, the matters discussed within this release include forward-searching statements which are handled by safe harbors. Individuals statements include, but might not be restricted to, all statements regarding management’s intent, belief and expectations, for example statements concerning our future and our operating and growth strategy. These forward-searching statements are identified through words for example “believe,” “intend,” “expect,” “anticipate,” “continue,” “potential,” and “expect” amongst others. Forward-searching statements within this pr release are susceptible to certain risks and uncertainties natural within the Company’s business that may cause actual leads to vary, including such risks associated with a fiscal downturn because of the COVID-19 pandemic, or overall economic challenges including performance from the cryptocurrency industry, logistics disruptions, risks associated with retaining and hiring qualified employees, the conclusion of possibilities in the IMS acquisition, the treating of the business’s growth, losing key resellers, the relationships using the Automated Clearinghouse network, bank sponsors, third-party card processing providers and retailers, the safety in our software, hardware and knowledge, the volatility from the stock cost, the necessity to obtain additional financing, risks connected with new legislation, and compliance with complex federal, condition and native laws and regulations and rules, along with other risks detailed every so often within the Company’s filings using the Registration including its annual set of Form 10-K for that fiscal year ended December 31, 2021. A number of these 4 elements have affected, and later on, may affect their companies and financial results later on and may cause actual leads to differ materially from plans and projections. Considering the functional uncertainties natural within the forward-searching statements incorporated herein, the inclusion of these information shouldn’t be considered like a representation by us or other person who the objectives and plans is going to be achieved. All forward-searching statements produced in this release derive from information presently open to management. The Organization assumes no obligation to update any forward-searching statements, except as needed legally.

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