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Usio Announces Third Quarter 2024 Financial Results

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Usio reported strong Q3 2024 financial results with net income of $2.9 million ($0.10 per share), including a $3.2 million tax benefit. Total payment processing volume grew 46% year-over-year to $2.0 billion. Revenue increased 2% to $21.3 million, driven by ACH and complementary services growth. Prepaid card load volume reached a record $140 million, up 21%. Gross margins improved to 23.0% from 22.2% last year. The company generated $2.4 million in Adjusted Operating Cash Flows over nine months, with cash position strengthening by $1.2 million since December 2023. Management expects to exceed $100MM+ annual revenue run rate for 2025.

Usio ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un utile netto di $2,9 milioni ($0,10 per azione), comprendente un beneficio fiscale di $3,2 milioni. Il volume totale di elaborazione dei pagamenti è cresciuto del 46% su base annua, raggiungendo i $2,0 miliardi. I ricavi sono aumentati del 2% a $21,3 milioni, sostenuti dalla crescita dei servizi ACH e complementari. Il volume di caricamento delle carte prepagate ha raggiunto un massimo storico di $140 milioni, con un incremento del 21%. I margini lordi sono migliorati al 23,0% rispetto al 22,2% dell'anno scorso. L'azienda ha generato $2,4 milioni di flussi di cassa operativi rettificati in nove mesi, con una posizione di liquidità migliorata di $1,2 milioni dal dicembre 2023. La direzione prevede di superare una velocità di ricavi annuali di oltre $100 milioni per il 2025.

Usio informó resultados financieros sólidos para el tercer trimestre de 2024, con una ganancia neta de $2.9 millones ($0.10 por acción), incluyendo un beneficio fiscal de $3.2 millones. El volumen total de procesamiento de pagos creció un 46% interanual, alcanzando los $2.0 mil millones. Los ingresos aumentaron un 2% hasta $21.3 millones, impulsados por el crecimiento de los servicios ACH y complementarios. El volumen de carga de tarjetas prepagadas alcanzó un récord de $140 millones, un aumento del 21%. Los márgenes brutos mejoraron al 23.0% desde el 22.2% del año pasado. La empresa generó $2.4 millones en Flujos de Efectivo Operativos Ajustados en nueve meses, con una posición de efectivo fortalecida en $1.2 millones desde diciembre de 2023. La dirección espera superar una tasa de ingresos anuales de más de $100 millones para 2025.

Usio는 2024년 3분기 강력한 재무 결과를 보고하며, 순이익이 $2.9백만 ($0.10 주당)이며, $3.2백만의 세금 혜택이 포함되어 있다고 발표했습니다. 총 결제 처리량은 전년 대비 46% 증가하여 $2.0억에 달했습니다. 수익은 ACH 및 보완 서비스의 성장에 힘입어 2% 증가하여 $21.3백만에 이르렀습니다. 선불 카드 로드 집계량은 $140백만으로 기록을 세우며, 21% 증가했습니다. 총 매출 총이익률은 작년 22.2%에서 23.0%로 개선되었습니다. 회사는 9개월 동안 $2.4백만의 조정된 운영 현금 흐름을 생성했으며, 2023년 12월 이후 현금 위치가 $1.2백만 강화되었습니다. 경영진은 2025년까지 연간 수익 1억 달러 이상을 초과할 것으로 기대하고 있습니다.

Usio a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec un bénéfice net de $2,9 millions ($0,10 par action), incluant un avantage fiscal de $3,2 millions. Le volume total de traitement des paiements a augmenté de 46% d'une année sur l'autre pour atteindre 2,0 milliards de dollars. Les revenus ont augmenté de 2% à 21,3 millions de dollars, soutenus par la croissance des services ACH et complémentaires. Le volume de chargement des cartes prépayées a atteint un niveau record de 140 millions de dollars, en hausse de 21%. Les marges brutes se sont améliorées à 23,0% contre 22,2% l'année précédente. L'entreprise a généré $2,4 millions de flux de trésorerie d'exploitation ajustés sur neuf mois, avec une position de liquidité renforcée de 1,2 million de dollars depuis décembre 2023. La direction s'attend à dépasser un taux de revenus annuels de plus de 100 millions de dollars pour 2025.

Usio hat starke Finanzzahlen für das dritte Quartal 2024 gemeldet, mit einem Nettogewinn von $2,9 Millionen ($0,10 pro Aktie), einschließlich eines Steuerbenefits von $3,2 Millionen. Das gesamte Zahlungsabwicklungsvolumen wuchs im Jahresvergleich um 46% auf $2,0 Milliarden. Der Umsatz stieg um 2% auf $21,3 Millionen, angetrieben durch das Wachstum im Bereich ACH und ergänzende Dienstleistungen. Das Ladevolumen von Prepaid-Karten erreichte mit $140 Millionen einen Rekord und stieg um 21%. Die Bruttomargen verbesserten sich auf 23,0%, gegenüber 22,2% im vergangenen Jahr. Das Unternehmen generierte in neun Monaten $2,4 Millionen an angepassten operativen Cashflows, wobei die Liquiditätslage seit Dezember 2023 um $1,2 Millionen gestärkt wurde. Das Management erwartet, die jährlichen Einnahmen von über $100 Millionen für 2025 zu übertreffen.

Positive
  • Net income of $2.9 million ($0.10/share) vs loss of $0.7 million year ago
  • Total payment processing volume up 46% to $2.0 billion
  • Revenue increased 2% to $21.3 million
  • Gross margins improved to 23.0% from 22.2%
  • Record prepaid card load volume of $140 million, up 21%
  • Generated $2.4 million in Adjusted Operating Cash Flows
  • PayFac revenues grew 27%
Negative
  • Operating loss of $0.4 million vs $0.8 million loss year ago
  • Nine-month revenue down 2% compared to prior year
  • Prepaid card services revenue declined 14% to $4.0 million
  • Loss of $10 million one-time revenue from completed prepaid card contract

Insights

The Q3 results show significant operational improvements with $2.9M in net income ($0.10/share), largely due to a $3.2M tax benefit. Key highlights include 46% growth in payment processing volume and 61% increase in ACH volume. The company has successfully replaced $10M in lost prepaid card revenue with higher-margin recurring revenue streams.

The financial position is strengthening with $8.4M cash on hand and $2.4M in adjusted operating cash flows YTD. The $1.4B PayFac implementation pipeline suggests strong future growth potential. Margin expansion to 23.0% from 22.2% YoY demonstrates improving operational efficiency.

While operating loss of $0.4M persists, reduced operating expenses and growing high-margin segments indicate a path to sustainable profitability. The projected $100M+ annual revenue run rate for 2025 appears achievable given current growth trajectories.

Third Quarter Net Income of $2.9 million, or $0.10 per share

Total payment dollars processed through all payment channels up 46% versus the prior year period 

SAN ANTONIO, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Usio, Inc: (Nasdaq: USIO), a leading FinTech company that operates a full stack of integrated, cloud-based electronic payment and embedded financial solutions, today announced financial results for the third quarter, which ended September 30, 2024.

Louis Hoch, President and Chief Executive Officer of Usio, said, "Results in the third quarter continue to reflect strong fundamental processing growth, disciplined cost control, and strong positive cash flow and a continued commitment to cash management. We reported GAAP net income of approximately $2.9 million, or $0.10 per share, which includes a tax benefit of approximately $3.2 million, and we also generated positive Adjusted EBITDA¹, illustrating our improved operational performance and commitment to earnings growth. More importantly, our growing implementation queue from signed deals and pipeline have never been stronger, and we are beginning to generate activity/volume from some of our largest new opportunities. I am particularly pleased with our ability to almost completely replace the $10 million of one-time revenue lost with the completion of a large prepaid card contract in 2023, and to do so at stronger margins with a more recurring revenue base. We believe we are in excellent position to generate value for our shareholders over the long-term and believe we have the financial resources to assure that we are well prepared from the ramp in activity arising from the imminent growth in volume associated with this new business."

Mr. Hoch continued, "Momentum remains strong, with a large implementation queue of contracted PayFac integrated software vendors, or ISVs, still to be implemented with more than $1.4 billion in potential processing dollars. Total payment dollar processing volume growth accelerated to 46% in the third quarter, led by strong growth in our highest margin line of business, ACH, where electronic check dollar volume increased 61%, transactions grew 25% and returned check transactions grew 18% all compared to the same period in 2023.

Revenues for the quarter were in line with our expectations, and were up from a year ago, primarily due to strong growth in our ACH and complementary services line of business, offsetting the impact in the quarter from the loss of nearly $10 million in one-time annual revenue arising from the completion of a large prepaid card program in 2023. ACH & complementary services revenue growth was primarily attributable to an increase in ACH volume from net new business and organic growth. The business also benefited from a year over year increase in revenues from ancillary product offerings, such as Remotely Created Checks, or RCC, and PINless debit, cross-selling with our ACH base. Credit card revenues were flat, with PayFac revenues growing a strong 27% and continuing to offset legacy credit card volume attrition. As our Payfac business is now set to overtake legacy credit card processing in card business revenue contribution, overall credit card processing growth will increasingly reflect PayFac's performance. Prepaid card load volume was up 21%, to an all-time quarterly record $140 million, and exceeded $100 million for the fifth consecutive quarter. Prepaid revenues should start to better reflect the underlying growth of the book of recurring revenues it is building as we begin facing more favorable comparables from year ago quarters where revenues from the Covid incentive programs continue to decline. Revenues for Output Solutions were up 2% in the quarter, attributable to delays in some new customer implementations. Revenues for the nine months ended September 30, 2024 were down 2%; however, excluding COVID incentive programs, revenues would have been up 9% compared to a year ago.

For the quarter ended September 30, 2024, margins were up nearly 1% from the year ago third quarter, mainly due to the growth of our highly profitable ACH business and improving margins in both our Prepaid card and Output Solutions businesses. These margin improvements are expected to continue. Other selling, general and administrative expenses decreased 4% from the same period last year as part of our commitment to disciplined cost control. The Company reported net income of approximately $2.9 million, or $0.10 per share, compared to a net loss of $0.7 million, or ($0.03) per share, a year ago due largely to the federal income tax benefit of an approximate $3.2 million increase in our deferred tax asset. Adjusted EBITDA¹ was $0.8 million, a $0.4 million improvement from the $0.4 million Adjusted EBITDA¹ a year ago. The Company's financial position remains strong as the Company generated $2.4 million in Adjusted Operating Cash Flows¹ over the first nine months of this fiscal year with cash at quarter end up over $1.2 million versus the balance as of December 31, 2023."

Mr. Hoch concluded, "The Company is in a strong position, with a growing portfolio of recurring revenues, a best-ever financial position, and signed contracts that we believe will be adding incremental revenue as they come online, although the timing of when these large incremental deals will ramp up remains uncertain. So far this year we have achieved our goals to strengthen the organization, strengthen our financial position, and expand our market presence. For that reason, we believe we find ourselves on a path of continued profitably with the potential to exceed an annual revenue run rate of $100MM+ for 2025."

Quarterly Processing and Transaction Volumes

Total payment transactions processed in the third quarter of 2024 were 12.7 million, an increase of 31% over the same quarter of last year. Total payment dollars processed through all payment channels in the third quarter of 2024 were $2.0 billion, an improvement of 46% over last year's third quarter $1.4 billion in volume. 

We set all-time records in card load, processing, and transaction volumes in our Prepaid business unit, with card load volume up 21%, transactions processed up 56% and purchase volume up 23%. In our credit card segment, dollars processed were up 7% and transactions processed were up 22% from a year ago. ACH electronic check transaction volume was up 25%, electronic check dollars processed were up 61% and return check transactions processed were up 18%.

Third Quarter 2024 Revenue Detail

Revenues for the quarter ended September 30, 2024 were $21.3 million, up 2% compared to the prior year quarter, due primarily to strong growth in our ACH and complementary services revenues, overcoming a decrease in Prepaid revenues due to the continued wind-down of COVID incentive programs.

  Three Months Ended September 30, 
  2024  2023  $ Change  % Change 
                 
ACH and complementary services $4,302,510  $3,528,133  $774,377   22%
Credit card  7,197,362   7,169,066   28,296   0%
Prepaid card services  4,017,153   4,685,212   (668,059)  (14)%
Output Solutions  5,253,388   5,138,030   115,358   2%
Interest – ACH and complementary services  201,545   212,691   (11,146)  (5)%
Interest – Prepaid card services  309,131   239,413   69,718   29%
Interest – Output Solutions  40,389   10,216   30,173   295%
Total Revenue $21,321,478  $20,982,761  $338,717   2%


  Nine Months Ended September 30, 
  2024  2023  $ Change  % Change 
                 
ACH and complementary services $12,078,574  $10,948,012  $1,130,562   10%
Credit card  22,019,364   21,624,848   394,516   2%
Prepaid card services  11,031,795   14,710,084   (3,678,289)  (25)%
Output Solutions  15,478,180   15,945,447   (467,267)  (3)%
Interest – ACH and complementary services  603,418   255,997   347,421   136%
Interest – Prepaid card services  1,046,496   425,431   621,065   146%
Interest – Output Solutions  113,925   25,784   88,141   342%
Total Revenue $62,371,752  $63,935,603  $(1,563,851)  (2)%
                 

Gross profit for the third quarter of 2024 was $4.9 million compared to $4.7 million for the third quarter of 2023, while gross margins were 23.0%, expanding from 22.2% in the same period a year ago as revenues from the lower margin Covid incentive programs decreased and we realized efficiencies in Output Solutions as a result of the new equipment acquired earlier this year.

Other selling, general and administrative expenses were $4.1 million for the quarter ended September 30, 2024, down compared to $4.3 million in the prior year period. The decrease was primarily attributable to realized efficiencies in our workforce, including a reduction in labor costs arising from Output Solutions' new equipment as well as strategic spend management in our other lines of business, as we focus on improving profitability. Further, the quarter ended September 30, 2023 contained some one time professional fees and marketing events, that were not incurred in the third quarter of 2024.

For the quarter, we reported an operating loss of $0.4 million compared to a loss of $0.8 million in operating income for the same quarter a year ago, while adjusted EBITDA¹ was $0.8 million for the quarter, compared to Adjusted EBITDA¹ of $0.4 million a year ago. Net income in the quarter ended September 30, 2024 was approximately $2.9 million, or $0.10 per share, compared to a net loss of $0.7 million, or ($0.03) per share, for the same period in the prior year. Profitability metrics improved due to increased revenues and reduced operating expenses, while net income improved significantly due to the recognition of an approximate $3.2 million federal income tax benefit from the recapture of deferred tax assets.

Revenues for the nine months ended September 30, 2024 were down 2% compared to the prior year period, attributable to the decrease in Prepaid revenues. Gross profits for the nine months ended September 30, 2024 were $14.5 million, down $0.3 million, from the same time period last year. This was primarily attributable to lower overall revenues, as gross margins were up slightly, at 23.3% versus 23.2% from the prior year period. Other selling, general and administrative expenses were $12.2 million for the nine months ended September 30, 2024, compared to $12.0 million in the prior year period, a nominal increase, being primarily attributable to some one-time increases in professional fees and marketing, including increased sales-related travel, in the first quarter of 2024. 

For the nine months ended September 30, 2024, our operating loss was $0.9 million compared to an operating loss of $0.4 million in the same period a year ago, with net income of $2.7 million, or $0.10 per share, versus net loss of $0.5 million in the nine months ended September 30, 2023. Adjusted EBITDA¹ was $2.4 million in the nine months ended September 30, 2024, a decrease of $0.4 million, from $2.8 million a year ago. The increase in operating loss and decrease in Adjusted EBITDA¹ were driven by the continued wind down of prepaid COVID incentive programs during 2024. Net income for the fiscal 2024 nine month period increased by $3.2 million, primarily as a result of the recognition of an approximate $3.2 million federal tax benefit.

Adjusted Operating Cash Flows¹ (excluding merchant reserve funds, prepaid card load assets, customer deposits and net operating lease assets and obligations) was $2.4 million for the nine months ended September 30, 2024. Cash flows used in operating activities was $7.6 million for the nine months ended September 30, 2024, compared to cash flows provided by operating activities of $41.5 million in the same period a year ago, with the difference driven primarily by lower prepaid card load obligations, as funds are loaded and spent on our prepaid cards, alongside the decrease in accounts payable and accrued expenses.

We continue to be in solid financial condition with $8.4 million in cash and cash equivalents as of September 30, 2024, a $1.2 million increase in cash balances over the first nine months of the year, and an improvement of $1.0 million from September 30, 2023.

¹ Please see reconciliation of GAAP to Non-GAAP Financial Measures

Conference Call and Webcast

Usio, Inc.'s management will host a conference call on Wednesday, November 6, 2024, at 4:30 pm Eastern time to review financial results and provide a business update. To listen to the conference call, interested parties within the U.S. should call +1-844-883-3890. International callers should call + 1-412-317-9246. All callers should ask for the Usio conference call. The conference call will also be available through a live webcast, which can be accessed via the Company's website at www.usio.com/investors.

A replay of the call will be available approximately one hour after the end of the call through November 20, 2024. The replay can be accessed via the Company's website or by dialing +1-877-344-7529 (U.S.) or 1-412-317-0088 (international). The replay conference playback code is 7062327.

About Usio, Inc.

Usio, Inc. (Nasdaq: USIO), a leading, cloud-based, integrated FinTech electronic payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, integrated software vendors and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to clients through its unique payment facilitation platform as a service. The Company, through its Usio Output Solutions division offers services relating to electronic bill presentment, document composition, document decomposition and printing and mailing services. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the card issuing sector. Usio is headquartered in San Antonio, Texas, and has offices in Austin, Texas. Websites: www.usio.com, www.payfacinabox.com, www.akimbocard.com and www.usiooutput.com. Find us on Facebook® and Twitter.

Comparisons

Unless otherwise indicated, all comparisons and growth rates represent year-over-year comparisons, with the quarterly period of this year compared to the corresponding quarter of the prior year.

About Non-GAAP Financial Measures

This press release includes non-GAAP financial measures, as defined in Regulation G adopted by the Securities and Exchange Commission, of EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flows. The Company reports its financial results in compliance with GAAP, but believes that also discussing non-GAAP financial measures provides investors with financial measures it uses in the management of its business.

  • The Company defines EBITDA as operating income (loss), before interest, taxes, depreciation and amortization of intangibles.
  • The Company defines adjusted EBITDA as EBITDA, as defined above, plus non-cash stock option costs and certain non-recurring items, such as costs related to acquisitions.
  • The Company defines adjusted EBITDA margins as adjusted EBITDA, as defined above, divided by total revenues.
  • The Company defines adjusted operating cash flow as net cash provided by (used in) operating activities, less changes in prepaid card load obligations, customer deposits, merchant reserves and net operating lease assets and obligations. These adjustments to net cash provided by (used in) operating activities are not inclusive of any regular expense items, and only include changes in our assets and liabilities accounts on our consolidated balance sheet. These measures may not be comparable to similarly titled measures reported by other companies. Management uses EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flows as indicators of the Company's operating performance and ability to fund acquisitions, capital expenditures and other investments and, in the absence of refinancing options, to repay debt obligations. 

Management believes EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flows are helpful to investors in evaluating the Company's operating performance because non-cash costs and other items that management believes are not indicative of its results of operations are excluded. 

EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flow should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. They are not measurements of our financial performance under GAAP and should not be considered as alternatives to revenue, net income, or cash provided by (used in) operating activities, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flow have limitations as analytical tools and you should not consider these non-GAAP financial measures in isolation or as a substitute for analysis of our operating results as reported under GAAP.

¹ See reconciliation of non-GAAP financial measures below

FORWARD-LOOKING STATEMENTS DISCLAIMER

Except for the historical information contained herein, the matters discussed in this press release include forward-looking statements which are covered by safe harbors. Those statements include, but may not be limited to, all statements regarding management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy and any guidance for future periods. These forward-looking statements are identified by the use of words such as "believe," "should," "intend," "look forward," "anticipate," "schedule," and "expect" among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results to vary, including such risks related to an economic downturn, the management of the Company's growth, the loss of key resellers, the relationships with the Automated Clearing House network, bank sponsors, third-party card processing providers and merchants, the security of our software, hardware and information, the volatility of the stock price, the need to obtain additional financing, risks associated with new legislation, and compliance with complex federal, state and local laws and regulations, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including its annual report on Form 10-K for the fiscal year ended December 31, 2023. One or more of these factors have affected, and in the future could affect, the Company's businesses and financial results and could cause actual results to differ materially from plans and projections. Although the Company believes that the assumptions underlying the forward-looking statements included in this press release are reasonable, the Company can give no assurance such assumptions will prove to be correct. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the objectives and plans will be achieved. All forward-looking statements made in this press release are based on information presently available to management. The Company assumes no obligation to update any forward-looking statements, except as required by law.

Contact:

Paul Manley
Senior Vice President, Investor Relations
paul.manley@usio.com
612-834-1804

 
USIO, INC.
CONSOLIDATED BALANCE SHEETS
 
  September 30,
2024
  December 31,
2023
 
  (Unaudited)     
ASSETS        
Cash and cash equivalents $8,392,317  $7,155,687 
Accounts receivable, net  4,257,022   5,564,138 
Settlement processing assets  59,549,564   44,899,603 
Prepaid card load assets  22,065,567   31,578,973 
Customer deposits  1,824,820   1,865,731 
Inventory  400,002   422,808 
Prepaid expenses and other  775,310   444,071 
Current assets before merchant reserves  97,264,602   91,931,011 
Merchant reserves  4,892,601   5,310,095 
Total current assets  102,157,203   97,241,106 
         
Property and equipment, net  3,304,601   3,660,092 
         
Other assets:        
Intangibles, net  1,099,373   1,753,333 
Deferred tax asset, net  4,690,053   1,504,000 
Operating lease right-of-use assets  3,012,779   2,420,782 
Other assets  340,285   355,357 
Total other assets  9,142,490   6,033,472 
         
Total Assets $114,604,294  $106,934,670 
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Accounts payable $579,618  $1,031,141 
Accrued expenses  2,879,369   3,801,278 
Operating lease liabilities, current portion  553,480   633,616 
Equipment loan, current portion  192,206   107,270 
Settlement processing obligations  59,549,564   44,899,603 
Prepaid card load obligations  22,065,567   31,578,973 
Customer deposits  1,824,820   1,865,731 
Current liabilities before merchant reserve obligations  87,644,624   83,917,612 
Merchant reserve obligations  4,892,601   5,310,095 
Total current liabilities  92,537,225   89,227,707 
         
Non-current liabilities:        
Equipment loan, net of current portion  562,923   718,980 
Operating lease liabilities, net of current portion  2,573,100   1,919,144 
Total liabilities  95,673,248   91,865,831 
         
Stockholders' equity:        
Preferred stock, $0.01 par value, 10,000,000 shares authorized; -0- shares outstanding at September 30, 2024 (unaudited) and December 31, 2023, respectively      
Common stock, $0.001 par value, 200,000,000 shares authorized; 29,811,487 and 28,671,606 issued, and 27,216,864 and 26,332,523 outstanding at September 30, 2024 (unaudited) and December 31, 2023, respectively  198,226   197,087 
Additional paid-in capital  99,447,552   97,479,830 
Treasury stock, at cost; 2,594,623 and 2,339,083 shares at September 30, 2024 (unaudited) and December 31, 2023, respectively  (4,755,916)  (4,362,150)
Deferred compensation  (7,297,234)  (6,907,775)
Accumulated deficit  (68,661,582)  (71,338,153)
Total stockholders' equity  18,931,046   15,068,839 
         
Total Liabilities and Stockholders' Equity $114,604,294  $106,934,670 


USIO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
  Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
  2024  2023  2024  2023 
                 
Revenues $21,321,478  $20,982,761  $62,371,752  $63,935,603 
Cost of services  16,425,321   16,325,793   47,822,086   49,121,210 
Gross profit  4,896,157   4,656,968   14,549,666   14,814,393 
                 
Selling, general and administrative expenses:                
Stock-based compensation  569,772   594,815   1,529,106   1,677,258 
Other SG&A  4,119,317   4,293,869   12,180,387   12,021,110 
Depreciation and amortization  583,718   518,573   1,707,721   1,559,601 
Total selling, general and administrative  5,272,807   5,407,257   15,417,214   15,257,969 
                 
Operating (loss)  (376,650)  (750,289)  (867,548)  (443,576)
                 
Other income and (expense):                
Interest income  125,564   49,769   348,188   116,649 
Other income  0   50,000   261,413   50,000 
Interest expense  (13,700)  (393)  (41,535)  (1,588)
Other income, net  111,864   49,376   568,066   115,061 
                 
(Loss) before income taxes  (264,786)  (700,913)  (299,482)  (328,515)
                 
Federal income tax (benefit)  (3,186,053)     (3,186,053)   
State income tax expense  70,000   70,000   210,000   222,524 
Income tax expense (benefit)  (3,116,053)  70,000   (2,976,053)  222,524 
                 
Net income (loss) $2,851,267  $(770,913) $2,676,571  $(551,039)
                 
Income (Loss) Per Share                
Basic income (loss) per common share: $0.10  $(0.03) $0.10  $(0.02)
Diluted income (loss) per common share: $0.10  $(0.03) $0.10  $(0.02)
Weighted average common shares outstanding                
Basic  27,322,497   26,383,144   26,747,277   26,386,586 
Diluted  27,322,497   26,383,144   26,747,277   26,386,586 


USIO, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
  Nine Months Ended September 30, 
  2024  2023 
Operating Activities        
Net income (loss) $2,676,571  $(501,039)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:        
Depreciation  1,053,761   905,701 
Amortization  653,960   653,900 
Deferred federal income tax  (3,186,053)  0 
Employee stock-based compensation  1,529,106   1,644,658 
Vendor stock-based compensation     32,600 
Non-cash revenue from returned common stock     (156,162)
Changes in operating assets and liabilities:        
Accounts receivable  1,307,116   (831,978)
Prepaid expenses and other  (331,239)  (289,819)
Operating lease right-of-use assets  (591,997)  244,040 
Other assets  15,072    
Inventory  22,806   106,516 
Accounts payable and accrued expenses  (1,373,432)  845,249 
Operating lease liabilities  573,820   (267,553)
Prepaid card load obligations  (9,513,406)  38,668,841 
Merchant reserves  (417,494)  427,044 
Customer deposits  (40,911)  24,376 
Net cash provided by (used in) operating activities  (7,622,320)  41,506,374 
         
Investing Activities        
Purchases of property and equipment  (698,271)  (587,451)
Net cash (used in) investing activities  (698,271)  (587,451)
         
Financing Activities        
Payments on equipment loan  (71,121)  (42,527)
Proceeds from issuance of common stock  50,297   - 
Purchases of treasury stock  (393,766)  (68,967)
Net cash (used in) financing activities  (414,590)  (111,494)
         
Change in cash, cash equivalents, prepaid card loads, customer deposits and merchant reserves  (8,735,181)  40,807,429 
Cash, cash equivalents, prepaid card loads, customer deposits and merchant reserves, beginning of year  45,910,486   32,343,501 
         
Cash, Cash Equivalents, Prepaid Card Loads, Customer Deposits and Merchant Reserves, End of Period $37,175,305  $73,150,930 
         
Supplemental disclosures of cash flow information        
Cash paid during the period for:        
Interest $41,535  $1,588 
Income taxes     312,158 
Non-cash operating activities:        
Right of use assets obtained in exchange for operating lease liabilities  963,487    
Non-cash financing activity:        
Issuance of deferred stock compensation  1,497,300   2,478,506 


USIO, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(UNAUDITED)
 
  Common Stock  Additional Paid- In  Treasury  Deferred  Accumulated  Total Stockholders' 
  Shares  Amount  Capital  Stock  Compensation  Deficit  Equity 
                             
Balance at December 31, 2023  28,671,606  $197,087  $97,479,830  $(4,362,150) $(6,907,775) $(71,338,153) $15,068,839 
                             
Issuance of common stock under equity incentive plan  107,600   107   153,118            153,225 
Deferred compensation amortization              346,047      346,047 
Purchase of treasury stock costs           (44,823)        (44,823)
Net (loss) for the period                 (250,188)  (250,188)
                             
Balance at March 31, 2024  28,779,206  $197,194  $97,632,948  $(4,406,973) $(6,561,728) $(71,588,341) $15,273,100 
                             
Issuance of common stock under equity incentive plan  994,049   994   1,610,320      (1,497,300)     114,014 
Issuance of common stock under employee stock purchase plan  6,180   6   10,504            10,510 
Reversal of deferred compensation amortization that did not vest  (15,000)  (15)  (31,305)     31,320       
Deferred compensation amortization              346,048      346,048 
Purchase of treasury stock costs           (104,946)        (104,946)
Net income for the period                 75,492   75,492 
                             
Balance at June 30, 2024  29,764,435  $198,179  $99,222,467  $(4,511,919) $(7,681,660) $(71,512,849) $15,714,218 
                             
Issuance of common stock under equity incentive plan  21,100   21   185,324            185,345 
Issuance of common stock under employee stock purchase plan  25,952   26   39,761            39,787 
Deferred compensation amortization              384,426      384,426 
Purchase of treasury stock costs           (243,997)        (243,997)
Net income for the period                 2,851,267   2,851,267 
                             
Balance at September 30, 2024  29,811,487  $198,226  $99,447,552  $(4,755,916) $(7,297,234) $(68,661,582) $18,931,046 
                             
Balance at December 31, 2022  27,044,900  $195,471  $94,048,603  $(3,749,027) $(5,697,900) $(70,863,049) $13,934,098 
                             
Issuance of common stock under equity incentive plan  1,421,250   1,421   2,638,529      (2,444,054)     195,896 
Deferred compensation amortization              308,676      308,676 
Purchase of treasury stock costs           (8,529)        (8,529)
Net income for the period                 14,833   14,833 
                             
Balance at March 31, 2023  28,466,150  $196,892  $96,687,132  $(3,757,556) $(7,833,278) $(70,848,216) $14,444,974 
                             
Issuance of common stock under equity incentive plan  111,456   111   354,199      (34,452)     319,858 
Reversal of deferred compensation amortization that did not vest  (115,000)  (115)  (188,088)     103,091      (85,112)
Deferred compensation amortization              343,123      343,123 
Purchase of treasury stock costs           (10,507)        (10,507)
Non-cash return of common stock           (156,162)        (156,162)
Net income for the period                 205,041   205,041 
                             
Balance at June 30, 2023  28,462,606  $196,888  $96,853,243  $(3,924,225) $(7,421,516) $(70,643,175) $15,061,215 
                             
Issuance of common stock under equity incentive plan  43,800   44   252,212            252,256 
Deferred compensation amortization              342,559      342,559 
Purchase of treasury stock costs           (49,931)        (49,931)
Net (loss) for the period                 (720,913)  (720,913)
                             
Balance at September 30, 2023  28,506,406  $196,932  $97,105,455  $(3,974,156) $(7,078,957) $(71,364,088) $14,885,186 


RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
 
  Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
  2024  2023  2024  2023 
                 
Reconciliation from Operating income (Loss) to Adjusted EBITDA:                
Operating income (Loss) $(376,650) $(750,289) $(867,548) $(443,576)
Depreciation and amortization  583,718   518,573   1,707,721   1,559,601 
EBITDA  207,068   (231,716)  840,173   1,116,025 
Non-cash stock-based compensation expense, net  569,772   594,815   1,529,106   1,677,258 
Adjusted EBITDA $776,840  $363,099  $2,369,279  $2,793,283 
                 
                 
Calculation of Adjusted EBITDA margins:                
Revenues $21,321,478  $20,982,761  $62,371,752  $63,935,603 
Adjusted EBITDA $776,840  $363,099  $2,369,279  $2,793,283 
Adjusted EBITDA margins  3.6%  1.7%  3.8%  4.4%


RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
 
  September 30,
2024
  September 30,
2023
 
         
Reconciliation from net cash (used in) operating activities to Non-GAAP Adjusted Operating Cash Flow:        
Net cash provided by (used in) operating activities $(7,622,320) $41,506,374 
Operating cash flow adjustments:        
Prepaid card load obligations  9,513,406   (38,668,841)
Customer deposits  40,911   (24,376)
Merchant reserves  417,494   (427,044)
Operating lease right-of-use assets  591,997   (244,040)
Operating lease liabilities  (573,820)  267,553 
Total adjustments to net cash provided by operating activities $9,989,988  $(39,096,748)
Adjusted operating cash flows provided $2,367,668  $2,409,626 

FAQ

What was Usio's (USIO) net income in Q3 2024?

Usio reported net income of $2.9 million ($0.10 per share) in Q3 2024, compared to a net loss of $0.7 million in Q3 2023.

How much did Usio's (USIO) payment processing volume grow in Q3 2024?

Usio's total payment processing volume grew 46% year-over-year to $2.0 billion in Q3 2024.

What was Usio's (USIO) revenue in Q3 2024?

Usio's revenue in Q3 2024 was $21.3 million, up 2% compared to the same quarter last year.

What was Usio's (USIO) prepaid card load volume in Q3 2024?

Usio's prepaid card load volume reached a record $140 million in Q3 2024, up 21% year-over-year.

Usio, Inc.

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40.10M
14.31M
46.71%
31.16%
0.06%
Software - Infrastructure
Functions Related to Depository Banking, Nec
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United States of America
SAN ANTONIO