US Dataworks Announces Fiscal 2013 Third Quarter Results

SUGAR LAND, Texas, Feb. 14, 2013 /PRNewswire/ -- US Dataworks, Inc. (OTC Bulletin Board: UDWK), a leader in payment processing solutions, today announced its financial results for its fiscal 2013 third quarter ended December 31, 2012.

Revenue for the quarter ended December 31, 2012 was $1.8 million as compared to $1.8 million for the quarter ended December 31, 2011.

Net loss for the quarter ended December 31, 2012 was $230,865, or $0.01 per share, as compared to net income of $83,718, or $0.00 per diluted share, for the quarter ended December 31, 2011.  Included in the net loss for the quarter ended December 31, 2012 is non-cash stock based compensation expense of $286,791 as compared to non-cash stock based compensation expense of $7,313 for the quarter ended December 31, 2011.

Conference Call Information
US Dataworks' management has scheduled a conference call to review its fiscal 2013 third quarter results tomorrow February 15, 2013 at 12:00 p.m. Eastern time, 11:00 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 February 22, 2013.  To access the replay, dial (303) 590-3030 using a pass code of 4599261#.

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.

About US Dataworks
US Dataworks offers cloud payment processing services with proven enterprise-class payment, deposit, returns processing, and powerful payment analytic tools. US Dataworks' solutions are trusted to process $7 billion in payments each day for utilities, telecommunications providers, content providers, financial institutions and government agencies. Additional information about US Dataworks is available at www.usdataworks.com.

Certain statements made in this press release (other than the historical information contained herein) constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, but not limited to, statements regarding our expectations of our ability to meet our future goals and expectations.  Any forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, but not limited to, the failure of our new solutions to perform as anticipated, our ability to provide long-term customer value and agility, our ability to protect our intellectual property, our position in the marketplace, our ability to develop and timely introduce products that address market demand, the impact of alternative technological advances and competitive products, market fluctuations, our ability to repay or refinance our debt,  our ability to realize the anticipated benefits from our business initiatives, including our cloud-based solutions, and other risks detailed from time to time in our SEC reports  including our Annual Report on Form 10-K for the fiscal year ended March 31, 2012.  These forward-looking statements speak only as of the date hereof. US Dataworks disclaims any obligation to update these forward-looking statements.

 

Contacts:

Randy Frapart, CFO


US Dataworks, Inc.


281-504-8026




Ken Dennard, Managing Partner


Dennard - Lascar Associates, LLC


Ken@DennardLascar.com


713-529-6600

 

 

US DATAWORKS, INC.

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS








For the Three Months Ended  December 31,


For the Nine Months Ended December 31,



2012


2011


2012


2011










 Revenues:









Software transactional and subscription revenues


$

616,144


$

688,341


$

1,899,838


$

2,056,567

Software licensing revenues



8,587



29,483



18,161



127,953

Software maintenance revenues



164,210



213,203



506,172



518,837

Professional services revenues



984,100



856,323



2,261,272



2,266,838

Software resale revenues



37,686



36,027



46,617



112,716














 Total revenues



1,810,727



1,823,377



4,732,060



5,082,911














 Cost of revenues



510,465



548,574



1,532,635



1,652,211














 Gross profit



1,300,262



1,274,803



3,199,425



3,430,700














 Operating expenses:













Research and development



196,187



172,280



636,651



631,887

Sales and marketing



283,926



303,401



787,449



992,258

General and administrative



877,020



542,002



2,031,007



1,738,340

Depreciation and amortization



13,745



19,586



47,479



67,064

Total operating expense



1,370,878



1,037,269



3,502,586



3,429,549














 Income (loss) from operations



(70,616)



237,534



(303,161)



1,151














 Other expense:













Interest expense



(32,630)



(28,378)



(76,170)



(71,913)

Interest expense – related party



(142,077)



(125,438)



(432,565)



(374,566)

Unrealized gain on fair value of derivative instruments



14,458






2,699




Total other expenses



(160,249)



(153,816)



(506,036)



(446,479)

 Net income (loss)


$

(230,865)


$

83,718


$

(809,197)


$

(445,328)














Basic earnings (loss) per share


$

(0.01)






(0.02)


$

(0.01)














Diluted earnings (loss) per share


$

(0.01)






(0.02)


$

(0.01)














Basic weighted-average shares outstanding



33,583,606



33,425,606



33,550,662



33,397,300














Diluted weighted-average shares outstanding



33,583,606



33,430,151



33,550,662



33,397,300

 

 


US DATAWORKS, INC.

UNAUDITED CONDENSED BALANCE SHEETS







ASSETS


December 31, 2012



March 31, 2012



(Unaudited)




Current assets:






Cash and cash equivalents


$

57,527



81,985

Accounts receivable, trade, net of allowance for doubtful accounts at December 31, 2012 and March 31, 2012 of $10,500 and $0, respectively



698,638



437,662

Prepaid expenses and other current assets



173,208



200,636

Total current assets



929,373



720,283








Property and equipment, net



152,060



184,387

Goodwill



4,020,698



4,020,698

Other assets



29,751



42,354

Total assets


$

5,131,882


$

4,967,722








LIABILITIES AND STOCKHOLDERS' EQUITY














Current liabilities:







Current portion of long term debt, net of unamortized discount at December 31, 2012 and March 31, 2012 of $3,264 and $0, respectively


$

346,095


$

244,667

Current portion of long term debt – related party, net of unamortized discount at December 31, 2012 and March 31, 2012 of $812 and $0, respectively



24,188



--

Accounts payable



435,895



426,895

Accrued expenses



324,436



138,033

Accrued interest – related parties



525,737



383,592

Deferred revenue



483,185



424,191

Derivative instruments



10,701



--

Total current liabilities



2,150,237



1,617,378








Long term liabilities:







Notes payable, net of unamortized discount at December 31, 2012 and March 31, 2012 of $3,371 and $2,557, respectively



103,231



109,078

Notes payable – related parties, net of unamortized discount  at December 31, 2012 and March 31, 2012 of  $156,862 and $267,689, respectively



2,960,383



2,849,556

Total long term liabilities



3,063,614



2,958,634

Total liabilities



5,213,851



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 $489,878 and $458,802 in arrears as of December 31, 2012 and March 31, 2012, respectively



11



11








Common stock, $0.0001 par value, 90,000,000 shares authorized,  33,583,606 and 33,485,835 shares issued and outstanding as of December 31, 2012 and March 31, 2012, respectively



3,358



3,348

Additional paid-in-capital



66,928,668



66,593,160

Accumulated deficit



(67,014,006)



(66,204,809)

Total stockholders' equity (deficit)



(81,969)



391,710








Total liabilities and stockholders' equity (deficit)


$

5,131,882


$

4,967,722

 

 

 

US DATAWORKS, INC.

UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS

 

For the Nine Months Ended December 31,









2012



2011

Cash flows from operating activities:






Net loss from operating activities

$

(809,197)


$

(445,328)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:






Depreciation and amortization of property and equipment


47,479



67,064

Bad debt expense


15,581



--

Amortization of discount on notes payable


5,854



2,792

Amortization of discount on notes payable – related parties


111,670



106,006

Amortization of deferred financing costs – related parties


12,603



17,513

Stock based compensation


337,330



27,199

Unrealized loss on fair value of derivative instruments


(2,699)



--

Changes in operating assets and liabilities:






Accounts receivable


(276,557)



311,154

Prepaid expenses and other current assets


27,428



190,714

Accounts payable


9,000



(172,301)

Accrued expenses


186,403



135,095

Accrued interest – related parties


142,145



238,664

Deferred revenue


58,994



(142,272)







Net cash (used in) provided by operating activities


(133,966)



336,300







Cash flows from investing activities:






Purchase of property and equipment


(15,152)



(23,015)







Net cash used in investing activities


(15,152)



(23,015)







Cash flows from financing activities:






Payments on note payable to bank


--



(808,562)

Payments on secured line of credit


(1,751,383)



---

Proceeds from secured line of credit


1,507,331



445,902

Payments on factoring facility


(1,960,051)



--

Proceeds from factoring facility


2,206,238



--

Proceeds from issuance of notes payables and detachable stock warrants


125,000



125,000

Payments on equipment loan payable


(2,475)



(2,476)







Net cash provided by (used in) financing activities


124,660



(240,136)







Net decrease in cash and cash equivalents


(24,458)



73,149

Cash and cash equivalents, beginning of period


81,985



44,096

Cash and cash equivalents, end of period

$

57,527


$

117,245







Supplemental disclosures of cash flow information:






Interest paid

$

243,447


$

44,036

Income taxes paid


--



--







Supplemental disclosures of non-cash financing activities:






In conjunction with the extension of certain existing notes payable and the 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 accounts were affected as follows:






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

Non GAAP Reconciliations

For the three months and nine months ended December 31, 2012 and 2011








For the Three Months Ended


For the Nine Months Ended



December 31,


December 31,



2012


2011


2012


2011

Reconciliation of Adjusted EBITDA (Note 1)









Net income (loss)

$ (203,865)


$ 83,718


$ (809,197)


$ (445,328)


Depreciation and amortization

13,745


19,586


47,479


67,064


Stock based compensation expense

286,791


7,313


337,330


27,199


Interest expense

174,707


153,816


508,735


446,479


Unrealized gain on fair value of derivative instruments

(14,458)


-


(2,699)


-


Adjusted EBITDA (See Note 1)

$ 229,920


$ 264,433


$ 81,648


$ 95,414










Reconciliation of EBITDA margin









Revenue

$ 1,810,727


$ 1,823,377


$ 4,732,060


$ 5,082,911


Adjusted EBITDA

$ 229,920


$ 264,433


$ 81,648


$ 95,414


Margin %

13%


15%


2%


2%











 

Note 1:


Adjusted EBITDA is a non-GAAP measure we define as earnings before interest, taxes, depreciation and amortization, equity compensation expense and unrealized gain on fair value of derivative instruments. 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.



RELATED LINKS
http://www.usdataworks.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.