WidePoint Corporation Reports Record Third Quarter 2012 Results

Quarter Revenue Up 42% over Last Year with Growth in All Segments

Nov 14, 2012, 16:01 ET from WidePoint Corporation

WASHINGTON, Nov. 14, 2012 /PRNewswire/ -- WidePoint Corporation (NYSE Amex: WYY), a specialist in Telecommunications Management and Cybersecurity solutions, today announced financial results for the three months ended September 30, 2012.

Third Quarter 2012 Results and Highlights

  • Net revenue for the quarter ended September 30, 2012 increased 42% to $15.2 million from $10.7 million in last year's comparable period.  Segment highlights are summarized below:
    • Telecommunications Management segment revenue increased 15% to $7.1 million from $6.2 million in last year's comparable period predominantly as a result of commercial sector sales offset partially from lower revenues in billable reselling of minutes to our federal customers.
    • CyberSecurity Managed Solutions segment revenue increased 48% to $2.3 million from $1.6 million in last year's comparable period driven by credentialing managed service sales to government and commercial customers and continued expansion in support of the Transportation Workers Identification Credentialing (TWIC) program.
    • IT Consulting Services and Products revenues increased to $5.8 million from $2.9 million in last year's comparable period materially driven by growth in commercial consulting and government product resale of hardware, software, mobile device and accessory products and IT consulting services.
  • Gross profit for the third quarter of 2012 was approximately $3.6 million, or 23% of revenues, as compared to gross profit of $2.6 million, or 24% of revenues, for the third quarter of 2011.
  • Income from operations was approximately $459,000 compared to approximately $270,000 in last year's comparable period.
  • Net income was approximately $244,000, compared to $218,000 in last year's comparable period.
  • Non-GAAP adjusted EBITDA was approximately $1,035,000 as compared to $544,000 in last year's comparable third quarter.
  • WidePoint ended the period with $2.5 million in cash.

Steve Komar, CEO, WidePoint, commented, "Management is gratified by the strong revenue performance during the third quarter of 2012.  This 'across the board' improvement speaks well for several business development initiatives we've implemented over the past year. We are seeing recurring and accelerating revenue growth from several comprehensive multi-year programs in our market sectors.  In addition, this performance allows us the leeway that we need to channel continuing investment into the tools and development activities necessary to ensure the future growth and success of the enterprise."

WidePoint CFO Jim McCubbin commented, "We were pleased with the financial results in our third quarter of 2012.  Revenues increased 42% with growth in each segment and our adjusted EBITDA increased 90%, exceeding $1 million, while we continued to invest in our operations, pay down debt, and improve our stockholder equity." 

Conference Call Information

A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Wednesday, November 14, 2012. Anyone interested in participating should call 1-877-941-4775 if calling within the United States or 1-480-629-9761 if calling internationally. There will be a playback available until November 28, 2012. To listen to the playback, please call 1-877-870-5176 if calling within the United States or 1-858-384-5517 if calling internationally. Please use pin number 4573618 for the replay. The call will also be accompanied live by webcast over the Internet and accessible at http://public.viavid.com/index.php?id=102357.

About WidePoint

WidePoint is a specialist in providing wireless mobility management and cybersecurity Solutions utilizing its advanced information technology products and services. WidePoint has several wholly owned subsidiaries holding major government and commercial contracts.  WidePoint enables organizations to deploy fully compliant IT services in accordance with government-mandated regulations and advanced system requirements. For more information, visit http://www.widepoint.com.

Safe-Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; (iv) the declaration and payment of dividends; and (v) the risk factors disclosed in the Company's periodic reports filed with the SEC. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk factors disclosed in the company's Forms 10-K and 10-Q filed with the SEC.

For More Information:

 

Jim McCubbin, EVP & CFO

Brett Maas or Dave Fore

WidePoint Corporation

Hayden IR

7926 Jones Branch Drive, Suite 520

(646) 536-7331

McLean, VA 22102

brett@haydenir.com

(703) 349-2577

jmccubbin@widepoint.com

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WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

SEPTEMBER 30,

DECEMBER 31,

2012

2011

(Unaudited)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$         2,493,589

$       2,135,310

Accounts receivable, net of allowance of $35,684 and $35,684, respectively

6,329,418

7,884,802

Unbilled accounts receivable

1,877,686

2,715,406

Prepaid expenses and other assets

804,957

782,862

Deferred income taxes

473,430

473,430

Total current assets

11,979,080

13,991,810

NONCURRENT ASSETS

Property and equipment, net

1,508,895

1,336,134

Intangibles, net

4,251,143

5,421,655

Goodwill

18,150,172

18,193,561

Deferred income tax asset, net of current

3,407,760

3,265,125

Deposits and other assets

78,049

81,941

TOTAL ASSETS

$      39,375,099

$    42,290,226

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES

Short term note payable

$               27,349

$           100,951

Accounts payable

5,423,310

8,418,854

Accrued expenses

2,441,118

1,851,678

Deferred revenue

53,055

390,506

Current portion of long-term debt

357,894

798,319

Current portion of deferred rent

48,412

36,508

Current portion of capital lease obligations

10,226

22,908

Total current liabilities

8,361,364

11,619,724

Long-term debt, net of current portion

7,769,143

7,769,143

Capital lease obligation, net of current portion

145,122

-

Deferred rent, net of current portion

29,318

65,207

Deferred revenue

27,516

-

Deposits and other liabilities

1,964

-

Total liabilities

16,334,427

19,454,074

STOCKHOLDERS' EQUITY

Common stock, $0.001 par value; 110,000,000 shares authorized; 63,651,857 and 63,226,857 shares issued and outstanding, respectively

63,652

63,227

Additional paid-in capital

69,531,751

69,326,705

Accumulated deficit

(46,554,731)

(46,553,780)

Total stockholders' equity

23,040,672

22,836,152

Total liabilities and stockholders' equity

$      39,375,099

$    42,290,226

 

 

WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

THREE MONTHS ENDED

NINE MONTHS ENDED

SEPTEMBER 30,

SEPTEMBER 30,

2012

2011

2012

2011

(Unaudited)

REVENUES

$  15,210,896

$    10,681,817

$  41,423,281

$    31,176,820

COST OF SALES (including amortization and depreciation of 

$419,657, $155,630, $1,262,105, and $510,431, respectively)

11,637,696

$      8,115,658

31,645,847

$    24,066,355

GROSS PROFIT

3,573,200

2,566,159

9,777,434

7,110,465

OPERATING EXPENSES

Sales and marketing

705,190

362,654

2,222,305

1,177,937

General and administrative (including shared-based compensation 

expense of $55,593, $69,920, $165,873, and $109,857, respectively

2,334,492

1,885,001

7,231,857

5,628,952

Depreciation and amortization

74,682

48,536

213,658

154,907

Total operating expenses

3,114,364

2,296,191

9,667,820

6,961,796

INCOME FROM OPERATIONS

458,836

269,968

109,614

148,669

OTHER INCOME (EXPENSE)

Interest income

956

2,718

4,179

9,391

Interest expense

(85,366)

(14,949)

(264,570)

(54,808)

Other income (expense)

11,091

(944)

19,946

199

Total other expense, net

(73,319)

(13,175)

(240,445)

(45,218)

NET INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES

385,517

256,793

(130,831)

103,451

INCOME TAX PROVISION (BENEFIT)

141,809

38,854

(129,880)

(11,559)

NET INCOME (LOSS)

$        243,708

$         217,939

$               (951)

$         115,010

BASIC EARNINGS PER SHARE

$              0.004

$              0.003

$           (0.000)

$              0.002

BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING

63,651,857

62,930,873

63,427,681

62,882,100

DILUTED EARNINGS PER SHARE

$              0.004

$              0.003

$           (0.000)

$              0.002

DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING

63,820,891

63,968,039

63,427,681

64,230,693

 

 

WIDEPOINT CORPORATION AND SUBSIDIARIES

 

RECONCILIATION OF GAAP EARNINGS TO EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION (EBITDA)

 

THREE MONTHS ENDED

NINE MONTHS ENDED

SEPTEMBER 30,

SEPTEMBER 30,

2012

2011

2012

2011

NET INCOME (LOSS)

$        244,000

$         218,000

$           (1,000)

$         115,000

Adjustments to GAAP net income (loss):

     Depreciation and amortization

494,000

204,000

1,475,763

665,000

     Income tax provision (benefit)

142,000

39,000

(130,000)

(12,000)

     Interest income

(1,000)

(3,000)

(4,200)

(9,000)

     Interest expense

85,000

15,000

265,000

55,000

     Other (expense) income

(11,000)

1,000

(20,000)

-

     Stock-based compensation expense

56,000

70,000

166,000

87,000

     Avalon business combination transaction

     and related costs

-

-

12,000

-

     Avalon integration initiatives 

26,000

-

107,000

-

Adjusted EBITDA

$     1,035,000

$         544,000

$     1,870,563

$         901,000

SOURCE WidePoint Corporation



RELATED LINKS

http://www.widepoint.com