US Dataworks Announces Fiscal 2013 Second Quarter Results
November 14, 2012
SUGAR LAND, Texas, Nov. 14, 2012 /PRNewswire/ — US Dataworks, Inc. (OTC Bulletin Board: UDWK), a leader in payment processing solutions, today announced its financial results for its fiscal 2013 second quarter ended September 30, 2012.
Revenue for the second quarter of fiscal 2013 was $1.7 million compared to revenue of $1.7 million for the second quarter of fiscal 2012. Net loss for the second quarter of fiscal 2013 was $44,000, or $0.00 loss per share, compared to a net loss of $257,000, or $0.01 loss per share, for the second quarter of fiscal 2012.
Conference Call Information
US Dataworks’ management has scheduled a conference call to review its fiscal 2013 second quarter results on Thursday, November 15, 2012 at 11:00 a.m. Eastern time, 10:00 a.m. Central time. To listen to the call, dial (480) 629-9771 at least 10 minutes before the call begins and ask for US Dataworks’ conference call. A replay of the call will be available approximately two hours after the live broadcast ends and will be accessible until November 22, 2012. To access the replay, dial (303) 590-3030 using a pass code of 4575648#.
Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visiting www.usdataworks.com. To listen to the live call on the web, please visit the Company’s web site at least fifteen minutes before the call begins to register, download and install any necessary audio software. For those who cannot listen to the live webcast, an archive will be available shortly after the call.
Additional information about Clearingworks as well as US Dataworks can be found on the company’s website at www.clearingworks.com.
About US Dataworks
US Dataworks offers cloud computing on-demand payment processing services with proven enterprise-class payment, deposit, returns processing and powerful payment analytic tools. US Dataworks is a trusted payments provider to financial institutions, telecommunications providers, content providers, corporate billers and government agencies.
Contacts: Randy Frapart, CFO
US Dataworks, Inc.
281-504-8026
Ken Dennard, Managing Partner
DRG&L
ksdennard@drg-l.com
713-529-6600
US DATAWORKS, INC.
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
For the Three Months Ended For the Six Months Ended
September 30, September 30,
2012 2011 2012 2011
---- ---- ---- ----
Revenues:
Software transactional and
subscription $633,794 $684,908 $1,283,693 $1,368,226
Software licensing 7,143 7,268 9,575 98,470
Software maintenance 175,043 163,637 341,962 305,634
Professional services 884,747 826,497 1,277,172 1,410,515
Software resale 8,932 4,301 8,932 76,689
----- ----- ----- ------
Total revenues 1,709,659 1,686,611 2,921,334 3,259,534
Cost of revenues 534,692 542,733 1,022,171 1,103,638
------- ------- --------- ---------
Gross profit 1,174,967 1,143,878 1,899,163 2,155,896
--------- --------- --------- ---------
Operating expenses:
Research and development 208,849 206,366 440,463 459,607
Sales and marketing 224,598 385,405 503,523 688,856
General and administrative 595,055 638,129 1,153,987 1,196,338
Depreciation and amortization 15,106 22,849 33,735 47,478
------ ------ ------ ------
Total operating expenses 1,043,608 1,252,749 2,131,708 2,392,279
--------- --------- --------- ---------
Net income (loss) from
operations 131,359 (108,871) (232,545) (236,383)
------- -------- -------- --------
Other expense:
Interest expense (22,119) (23,011) (43,540) (43,535)
Interest expense - related
parties (141,115) (124,970) (290,488) (249,127)
Unrealized loss on fair value
of derivative instruments (11,760) -- (11,760) --
------- ---
Total other expense (174,994) (147,981) (345,788) (292,662)
-------- -------- -------- --------
Net income (loss) $(43,635) $(256,852) $(578,333) $(529,045)
======== ========= ========= =========
Basic earnings (loss) per
share $(0.00) $(0.01) $(0.02) $(0.02)
====== ====== ====== ======
Diluted earnings (loss) per
share $(0.00) $(0.01) $(0.02) $(0.02)
====== ====== ====== ======
Basic weighted-average shares
outstanding 33,551,398 33,401,485 33,534,183 33,382,931
========== ========== ========== ==========
Diluted weighted-average
shares outstanding 33,551,398 33,401,485 33,534,183 33,382,931
========== ========== ========== ==========
US DATAWORKS, INC.
UNAUDITED CONDENSED BALANCE SHEETS
ASSETS September 30, 2012 March 31, 2012
------
(Unaudited)
----------
Current assets:
Cash and cash equivalents $71,966 $81,985
Accounts receivable, trade, net of allowance for
doubtful accounts at September 30, 2012 and
March 31, 2012 of $10,500 and $0, respectively 914,637 437,662
Prepaid expenses and other current assets 223,451 200,636
------- -------
Total current assets 1,210,054 720,283
Property and equipment, net 161,765 184,387
Goodwill 4,020,698 4,020,698
Other assets 32,111 42,354
------ ------
Total assets $5,424,628 $4,967,722
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Current portion of long term debt, net of
unamortized discount at September 30, 2012 and
March 31, 2012 of $4,610 and $0, respectively $718,207 $244,667
Current portion of long term debt - related
party, net of unamortized discount at September
30, 2012 and March 31, 2012 of $1,152 and $0,
respectively 23,848 --
Accounts payable 538,867 426,895
Accrued expenses 303,067 138,033
Accrued interest - related parties 490,508 383,592
Deferred revenue 436,824 424,191
Derivative instruments 25,160 --
------ ---
Total current liabilities 2,536,481 1,617,378
Long term liabilities:
Notes payable, net of unamortized discount at
September 30, 2012 and March 31, 2012 of $3,810
and $2,557, respectively 103,617 109,078
Notes payable - related parties, net of
unamortized discount at September 30, 2012 and
March 31, 2012 of $194,819 and $267,689,
respectively 2,922,426 2,849,556
--------- ---------
Total long term liabilities 3,026,043 2,958,634
--------- ---------
Total liabilities 5,562,524 4,576,012
Commitments and contingencies
Stockholders' equity (deficit):
Convertible Series B preferred stock, $0.0001
par value, 700,000 shares authorized, 109,933
shares issued and outstanding, $3.75
liquidation preference, dividends of $479,481
and $458,802 in arrears as of September 30,
2012 and March 31, 2012, respectively 11 11
Common stock, $0.0001 par value, 90,000,000
shares authorized, 33,551,773 and 33,485,835
shares issued and outstanding as of September
30, 2012 and March 31, 2012, respectively 3,355 3,348
Additional paid-in-capital 66,641,880 66,593,160
Accumulated deficit (66,783,142) (66,204,809)
----------- -----------
Total stockholders' equity (deficit) (137,896) 391,710
-------- -------
Total liabilities and stockholders' equity $5,424,628 $4,967,722
------------------------------------------ ========== ==========
US DATAWORKS, INC.
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
For the Six Months Ended September 30,
2012 2011
---- ----
Cash flows from operating
activities:
Net loss from operating
activities $(578,333) $(529,045)
Adjustments to reconcile net
loss to net cash (used in)
provided by operating
activities:
Depreciation and amortization
of property and equipment 33,735 47,478
Bad debt expense 15,581 --
Amortization of discount on
notes payable 3,618 --
Amortization of discount on
notes payable - related
parties 73,823 70,075
Amortization of deferred
financing costs - related
parties 10,243 7,269
Stock based compensation 50,539 19,886
Unrealized loss on fair value
of derivative instruments 11,760 --
Changes in operating assets
and liabilities:
Accounts receivable (492,556) 183,010
Prepaid expenses and other
current assets (22,815) 161,940
Accounts payable 111,972 50,231
Accrued expenses 165,034 194,460
Accrued interest - related
parties 106,916 149,153
Deferred revenue 12,633 (223,875)
------ --------
Net cash (used in) provided by
operating activities (497,850) 130,582
-------- -------
Cash flows from investing
activities:
Purchase of property and
equipment (11,113) (20,758)
------- -------
Net cash used in investing
activities (11,113) (20,758)
------- -------
Cash flows from financing
activities:
Payments on note payable to
bank -- (174,294)
Payments on secured line of
credit (1,751,383) (312,690)
Proceeds from secured line of
credit 1,507,331 209,714
Payments on factoring facility (475,214) --
Proceeds from factoring
facility 1,094,860 --
Proceeds from issuance of
notes payables and detachable
stock warrants 125,000 125,000
Payments on equipment loan
payable (1,650) (1,650)
------ ------
Net cash provided by (used in)
financing activities 498,944 (153,920)
------- --------
Net decrease in cash and cash
equivalents (10,019) (44,096)
Cash and cash equivalents,
beginning of period 81,985 44,096
------ ------
Cash and cash equivalents, end
of period $71,966 $ --
======= === ===
Supplemental disclosures of
cash flow information:
Interest paid $151,138 $28,110
Income taxes paid -- --
=== ===
Supplemental disclosures of
non-cash financing
activities:
In conjunction with the
extension of certain existing accounts were affected as
notes payable and the follows:
issuance of new notes
payable, the Company issued
additional common stock
warrants and modified the
existing notes to add a
common stock conversion
feature. As a result, the
following balance sheet
Increased derivative warrant
instruments $13,400 $ --
Increased note discount on
notes payable 11,588 --
Decreased additional paid-in-
capital (1,812) --
US DATAWORKS, INC.
INCOME STATEMENT DATA
UNAUDITED Non GAAP Reconciliations
For the Three Months ended For the Six Months ended
September 30, September 30,
2012 2011 2012 2011
---- ---- ---- ----
Reconciliation of adjusted EBITDA (See Note 1)
Net income (loss) $(43,635) $(256,852) $(578,333) $(529,045)
Depreciation and amortization 15,106 22,849 33,735 47,478
Stock based compensation expense 49,012 8,349 50,539 19,886
Interest 163,234 147,981 334,028 292,662
-------
Adjusted EBITDA (See Note 1) $183,717 $(77,673) $(160,031) $(169,019)
========
Reconciliation of EBITDA margin
Revenue $1,709,659 $1,686,611 $2,921,334 $3,259,534
Adjusted EBITDA $183,717 $(77,673) $(160,031) $(169,019)
Margin % 11% -5% -5% -5%
Note 1:
Adjusted EBITDA is a
non-GAAP measure we
define as earnings
before interest,
taxes, depreciation
and amortization,
and equity
compensation
expense. We use
Adjusted EBITDA as a
supplemental
financial measure to
assess (i) our
operating and
financial
performance without
regard to the
structure of our
financing or the
historical cost
basis in our assets
and (ii) our ability
to generate cash
flow to cover our
interest payments.
Adjusted EBITDA has
limitations as an
analytical tool and
should not be used
as a substitute for
financial measures
presented in
accordance with
GAAP, including net
income, operating
income and cash flow
from operating
activities. Such
limitations include
the fact that
Adjusted EBITDA does
not reflect (i) cash
requirements to
service interest and
principal payments
on our debt, (ii)
capital expenditure
requirements or
(iii) income tax
payment requirements
and income tax
accruals. In
addition, companies
in our industry may
define Adjusted
EBITDA differently
than we do, thereby
limiting its
usefulness as a
comparative measure.
SOURCE US Dataworks, Inc.
Source: PR Newswire
