Attached files
| file | filename |
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| 8-K - FORM 8-K - US DATAWORKS INC | v321364_8k.htm |
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NEWS RELEASE |
| Contacts: | Randy Frapart, CFO | |
| US Dataworks, Inc. | ||
| FOR IMMEDIATE RELEASE | 281-504-8026 | |
| Ken Dennard, Managing Partner | ||
| Dennard Rupp Gray & Lascar, LLC | ||
| ksdennard@drg-l.com | ||
| 713-529-6600 |
US DATAWORKS ANNOUNCES FISCAL 2013 FIRST QUARTER RESULTS
SUGAR LAND, TX – AUGUST 14, 2012 – US Dataworks, Inc. (OTC Bulletin Board: UDWK), a leader in payment processing solutions, today announced its financial results for its fiscal 2013 first quarter ended June 30, 2012.
Revenue for the first quarter of fiscal 2013 was $1.2 million compared to revenue of $1.6 million for the first quarter of fiscal 2012. Net loss for the first quarter of fiscal 2013 was $535,000, or $0.02 loss per share, compared to a net loss of $272,000, or $0.01 loss per share, for the first quarter of fiscal 2012.
Conference Call Information
US Dataworks’ management has scheduled a conference call to review its fiscal 2013 first quarter results on Tuesday, August 14, 2012 at 11:00 a.m. Eastern time, 10:00 a.m. Central time. To listen to the call, dial (480) 629-9722 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 August 21, 2012. To access the replay, dial (303) 590-3030 using a pass code of 4559358#.
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 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 utilities, telecommunications providers, content providers, financial institutions and government agencies.
US DATAWORKS, INC.
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
| For the Three Months Ended June 30, | ||||||||
| 2012 | 2011 | |||||||
| Revenues: | ||||||||
| Software transactional and subscription | $ | 649,900 | $ | 683,319 | ||||
| Software licensing | 2,432 | 91,201 | ||||||
| Software maintenance | 166,918 | 141,997 | ||||||
| Professional services | 392,425 | 584,018 | ||||||
| Software resale | -- | 72,388 | ||||||
| Total revenues | 1,211,675 | 1,572,923 | ||||||
| Cost of revenues | 487,480 | 560,905 | ||||||
| Gross profit | 724,195 | 1,012,018 | ||||||
| Operating expenses: | ||||||||
| Research and development | 231,613 | 253,241 | ||||||
| Sales and marketing | 278,926 | 303,451 | ||||||
| General and administrative | 558,932 | 558,209 | ||||||
| Depreciation and amortization | 18,629 | 24,629 | ||||||
| Total operating expense | 1,088,100 | 1,139,530 | ||||||
| Income (loss) from operations | (363,905 | ) | (127,512 | ) | ||||
| Other expense: | ||||||||
| Interest expense | (21,420 | ) | (20,525 | ) | ||||
| Interest expense – related party | (149,373 | ) | (124,158 | ) | ||||
| Total other expense | (170,793 | ) | (144,683 | ) | ||||
| Net income (loss) | $ | (534,698 | ) | $ | (272,195 | ) | ||
| Basic earnings (loss) per share | $ | (0.02 | ) | $ | (0.01 | ) | ||
| Diluted earnings (loss) per share | $ | (0.02 | ) | $ | (0.01 | ) | ||
| Basic weighted-average shares outstanding | 33,516,961 | 33,364,574 | ||||||
| Diluted weighted-average shares outstanding | 33,516,961 | 33,364,574 | ||||||
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US DATAWORKS, INC.
CONDENSED BALANCE SHEETS
| ASSETS | June 30, 2012 | March 31, 2012 | ||||||
| (Unaudited) | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 79,222 | $ | 81,985 | ||||
| Accounts receivable, trade, net of allowance for doubtful accounts at June 30, 2012 and March 31, 2012 of $10,500 and $0, respectively | 530,969 | 437,662 | ||||||
| Prepaid expenses and other current assets | 110,321 | 200,636 | ||||||
| Total current assets | 720,512 | 720,283 | ||||||
| Property and equipment, net | 174,338 | 184,387 | ||||||
| Goodwill | 4,020,698 | 4,020,698 | ||||||
| Other assets | 32,110 | 42,354 | ||||||
| Total assets | $ | 4,947,658 | $ | 4,967,722 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current portion of long term debt | $ | 431,800 | $ | 244,667 | ||||
| Accounts payable | 491,800 | 426,895 | ||||||
| Accrued expenses | 166,822 | 138,033 | ||||||
| Accrued interest – related parties | 467,246 | 383,592 | ||||||
| Deferred revenue | 526,114 | 424,191 | ||||||
| Derivative instruments | 8,488 | -- | ||||||
| Total current liabilities | 2,092,270 | 1,617,378 | ||||||
| Long term liabilities: | ||||||||
| Notes payable, net of unamortized discount at June 30, 2012 and March 31, 2012 of $7,377 and $2,557, respectively | 125,876 | 134,078 | ||||||
| Notes payable – related parties, net of unamortized discount at June 30, 2012 and March 31, 2012 of $231,220 and $267,689, respectively | 2,861,025 | 2,824,556 | ||||||
| Total long term liabilities | 2,986,901 | 2,958,634 | ||||||
| Total liabilities | 5,079,171 | 4,576,012 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| 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 $469,085 and $458,802 in arrears as of June 30, 2012 and March 31, 2012, respectively | 11 | 11 | ||||||
| Common stock, $0.0001 par value, 90,000,000 shares authorized, 33,517,668 and 33,485,835 shares issued and outstanding as of June 30, 2012 and March 31, 2012, respectively | 3,351 | 3,348 | ||||||
| Additional paid-in-capital | 66,604,632 | 66,593,160 | ||||||
| Accumulated deficit | (66,739,507 | ) | (66,204,809 | ) | ||||
| Total stockholders’ equity | (131,513 | ) | 391,710 | |||||
| Total liabilities and stockholders’ equity | $ | 4,947,658 | $ | 4,967,722 | ||||
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US DATAWORKS, INC.
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
For the Three Months Ended June 30,
| 2012 | 2011 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss from operating activities | $ | (534,698 | ) | $ | (272,195 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Depreciation and amortization of property and equipment | 18,629 | 24,629 | ||||||
| Bad debt expense | 15,581 | -- | ||||||
| Amortization of discount on notes payable | 1,857 | -- | ||||||
| Amortization of discount on notes payable – related parties | 36,469 | 34,620 | ||||||
| Amortization of deferred financing costs – related parties | 10,243 | 5,182 | ||||||
| Stock based compensation | 13,287 | 11,537 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (108,888 | ) | 355,465 | |||||
| Prepaid expenses and other current assets | 90,315 | 308,206 | ||||||
| Accounts payable | 64,905 | (200,731 | ) | |||||
| Accrued expenses | 28,789 | 46,185 | ||||||
| Accrued interest – related parties | 83,654 | 67,637 | ||||||
| Deferred revenue | 101,923 | (122,850 | ) | |||||
| Net cash (used in) provided by operating activities | (177,934 | ) | 257,685 | |||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (8,580 | ) | (3,097 | ) | ||||
| Net cash used in investing activities | (8,580 | ) | (3,097 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payments on note payable to bank | -- | (41,667 | ) | |||||
| Payments on asset backed bank loan | (941,927 | ) | (249,093 | ) | ||||
| Proceeds from asset backed bank loan | 1,126,503 | 102,089 | ||||||
| Payment on equipment loan payable | (825 | ) | (551 | ) | ||||
| Net cash provided by (used in) financing activities | 183,751 | (189,222 | ) | |||||
| Net (decrease) increase in cash and cash equivalents | (2,763 | ) | 65,366 | |||||
| Cash and cash equivalents, beginning of period | 81,985 | 44,096 | ||||||
| Cash and cash equivalents, end of period | $ | 79,222 | $ | 109,462 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Interest paid | $ | 57,735 | $ | 15,342 | ||||
| Income taxes paid | -- | -- | ||||||
| Supplemental disclosures of non-cash financing activities: | ||||||||
| In conjunction with extension of loan maturity date of certain notes payable the Company issued additional common stock warrants and modified the notes to add a common stock conversion feature. As a result, the following balance sheet accounts were affected as follows: | ||||||||
| Increased derivative warrant instruments | $ | 8,488 | ||||||
| Increased note discount on notes payable | 6,676 | |||||||
| Decreased additional paid-in-capital | (1,812 | ) | ||||||
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US DATAWORKS, INC.
INCOME STATEMENT DATA
Non GAAP Reconciliations
For the quarters ended June 30, 2012 and 2011
| 2012 | 2011 | |||||||
| Reconciliation of adjusted EBITDA (See Note 1) | ||||||||
| Net income (loss) | $ | (534,698 | ) | $ | (272,195 | ) | ||
| Depreciation and amortization | 18,629 | 24,629 | ||||||
| Stock Based compensation expense | 13,287 | 11,537 | ||||||
| Interest | 170,793 | 144,683 | ||||||
| Adjusted EBITDA (See Note 1) | $ | (331,989 | ) | $ | (91,346 | ) | ||
| Reconciliation of EBITDA margin | ||||||||
| Revenue | $ | 1,211,675 | $ | 1,572,923 | ||||
| Adjusted EBITDA | $ | (331,989 | ) | $ | (91,346 | ) | ||
| Margin % | -27 | % | -6 | % | ||||
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.
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