US Dataworks Announces Fiscal 2012 Fourth Quarter And Year End Results

Jul 13, 2012, 19:00 ET from US Dataworks, Inc.

SUGAR LAND, Texas, July 13, 2012 /PRNewswire/ -- US Dataworks, Inc. (OTC Bulletin Board: UDWK), a leader in payment processing solutions, today announced its financial results for its fiscal 2012 fourth quarter and year ended March 31, 2012.

Revenue for the fourth quarter of fiscal 2012 was $1.6 million compared to revenue of $2.1 million for the fourth quarter of fiscal 2011.  Net loss for the fourth quarter of fiscal 2012 was $41,000, or $0.01 per share, compared to net income of $116,000, or $0.01 per diluted share, for the fourth quarter of fiscal 2011.

Revenue for the fiscal 2012 was $6.6 million compared to revenue of $7.3 million for fiscal 2011.  Net loss for fiscal 2012 was $485,000, or $0.01 per share, compared to a net loss of $608,000, or $0.02 per share, for fiscal 2011.

Charles E. Ramey, Chairman and CEO of US Dataworks, commented, "During the fiscal fourth quarter, we made changes that have laid the groundwork for achieving our strategic goal of market dominance in the cloud payment processing space.  These included organizational changes, changes to our sales and marketing approach and the development of a channel partner program.  We continue to execute on this plan and are beginning to see results.

"We are in a strong position to help clients reduce their costs and become more efficient.  First, we have a management team that is up to the challenge of taking the company to the next level.  Second, our Clearingworks® product offering has set the standard in cloud payment processing.  Third, we are ahead of our competitors in our approach to payment processing and the market is now ready," added Ramey.

"Our focus remains on customer acquisition, transactions under management and average price per transaction; and we believe that our future results should improve in fiscal 2013 as our unique value proposition is being introduced to additional customers of all sizes in this vast emerging market," concluded Ramey.

Conference Call Information US Dataworks' management has scheduled a conference call to review its fiscal 2012 fourth quarter and year end results on Tuesday, July 17, 2012 at 11:00 a.m. Eastern time, 10:00 a.m. Central time.  To listen to the call, dial (480) 629-9643 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 July 24, 2012.  To access the replay, dial (303) 590-3030 using a pass code of 4553184#.

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.

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 Rupp Gray & Lascar, LLC

ksdennard@drg-l.com

713-529-6600

 

 

US DATAWORKS, INC.

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS

For the Three Months Ended March 31

For the Years Ended March 31

2012

2011

2012

2011

 Revenues: 

   Software transactional and subscription revenues 

$

689,775

$

677,954

$

2,745,593

$

2,316,170

   Software licensing revenues

(8,313)

430,413

119,640

537,277

   Software maintenance revenues

182,028

195,882

701,615

621,731

   Professional services revenues

689,693

746,155

2,956,531

3,740,785

   Software resale revenues

9,319

6,716

122,035

59,555

 Total revenues 

1,562,502

2,057,120

6,645,414

7,275,518

   Cost of revenues

574,624

625,025

2,226,836

2,503,022

 Gross profit 

987,878

1,432,095

4,418,578

4,772,496

 Operating expenses: 

   Research and development

230,131

263,926

862,019

969,154

   Sales and marketing

178,635

217,087

1,170,892

921,926

   General and administrative

439,441

665,708

2,178,251

2,846,581

   Depreciation and amortization

18,246

25,327

85,310

124,795

Total operating expense 

866,453

1,172,049

4,296,472

4,862,456

Income/(loss) from operations 

121,425

260,045

122,106

(89,960)

 Other (expense) income: 

   Interest expense

(20,718)

(24,641)

(92,631)

(30,340)

   Interest expense – related party

(142,821)

(121,366)

(517,387)

(489,558)

   Other income

1,200

2,075

1,670

2,075

Total other expense

(162,339)

(143,932)

(608,348)

(517,823)

 Net income/(loss)

$

(40,914)

$

116,113

$

(486,242)

$

(607,783)

 Basic and diluted income/(loss) per share 

$

(0.01)

$

0.01

$

(0.01)

$

(0.02)

 Basic and diluted income/(loss) per share 

$

(0.01)

$

0.01

$

(0.01)

$

(0.02)

Basic and diluted weighted-average shares outstanding

33,401,485

32,930,100

33,418,986

33,229,667

Basic and diluted weighted-average shares outstanding

33,401,485

32,930,100

33,418,986

33,229,667

US DATAWORKS, INC.

BALANCE SHEETS

March 31,

2012

March 31,

2011

ASSETS

Current assets:

Cash and cash equivalents

$

81,985

$

44,096

Accounts receivable, trade

437,662

1,019,579

Prepaid expenses and other current assets

200,636

387,548

Total current assets

720,283

1,451,223

Property and equipment, net

184,387

240,500

Goodwill, net

4,020,698

4,020,698

Other assets

42,354

70,109

Total assets

$

4,967,722

$

5,782,530

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Current portion of long-term debt

$

244,667

$

663,667

Accounts payable

426,895

582,304

Accrued expenses

138,033

79,557

Accrued interest – related parties

383,592

87,299

    Deferred revenue

424,191

688,340

          Total current liabilities

1,617,378

2,101,167

Long term liabilities:

Notes payable, net of unamortized discount at March 31, 2012 and 2011 of $2,557 and $0, respectively

134,078

165,157

Notes payable – related parties, net of unamortized discount at March 31, 2012 and  2011

of $267,689 and $409,302, respectively

2,824,556

2,682,943

Total long term liabilities

2,958,634

2,848,100

Total liabilities

4,576,012

4,949,267

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 $458,802 and $417,444  in arrears as of March 31, 2012 and 2011, respectively

11

11

Common stock, $0.0001 par value; 90,000,000 shares authorized; 33,485,835 and 33,318,842 shares issued and outstanding as of March 31, 2012 and 2011, respectively

3,348

3,331

Additional paid-in capital

66,593,160

66,548,488

Accumulated deficit

(66,204,809)

(65,718,567)

Total stockholders' equity

391,710

833,263

Total liabilities and stockholders' equity

$

4,967,722

$

5,782,530

US DATAWORKS, INC.

 

STATEMENTS OF CASH FLOWS

For the years ended March 31, 2012 and 2011

2012

2011

Cash flows from operating activities:

Net loss from operating activities

$

(486,242)

$

(607,783)

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

Depreciation and amortization of property and equipment

85,310

124,795

Amortization of note discount on notes payable

4,555

---

Amortization of note discount on notes payable – related party

141,613

134,435

Amortization of deferred financing costs – related party

27,755

20,726

Stock based compensation

37,577

113,194

Changes in operating assets and liabilities:

Accounts receivable

581,917

40,246

Prepaid expenses and other current assets

186,912

(79,895)

Accounts payable

(155,409)

347,227

Accrued expenses

58,476

(101,001)

Accrued interest – related party

296,293

57,137

Deferred revenue

(264,149)

(92,990)

Net cash provided by (used in) operating activities

514,608

(43,909)

Cash flows used in investing activities:

Purchase of property and equipment

(29,197)

(195,499)

Net cash used in investing activities

(29,197)

(195,499)

Cash flows from financing activities:

Repayment of note payable to bank

(1,066,548)

(1,380,275)

Proceeds from asset based bank loan

497,327

1,221,197

Proceeds from issuance of notes payable and detachable stock warrants

125,000

Payments on equipment note payable

(3,301)

(1,960)

Net cash used in financing activities

(447,522)

(161,038)

Net increase (decrease) in cash and cash equivalents

37,889

(400,446)

Cash and cash equivalents, beginning of year

44,096

444,542

Cash and cash equivalents, end of year

$

81,985

$

44,096

Supplemental disclosures of cash flow information:

Interest paid

$

86,252

$

385,464

Federal income taxes paid

$

$

 

US DATAWORKS, INC.

INCOME STATEMENT DATA

Non GAAP Reconciliations

For the three months and years ended March 31, 2012 and 2011

For the Three Months Ended

For the Years Ended

March 31, 

March 31, 

2012

2011

2012

2011

Reconciliation of adjusted EBITDA (See Note 1)

Net income (loss)

$   (40,914)

$   116,113

$  (486,242)

$  (607,783)

Depreciation and amortization 

18,246

25,327

85,310

124,795

Stock Based compensation expense

10,380

11,112

37,577

113,194

Interest

163,539

145,997

610,018

519,898

Adjusted EBITDA (See Note 1)

$   151,251

$   298,549

$   246,663

$   150,104

Reconciliation of EBITDA margin

Revenue

$ 1,562,502

$ 2,057,120

$ 6,645,414

$ 7,275,518

Adjusted EBITDA

$   151,251

$   298,549

$   246,663

$   150,104

Margin %

9.7%

14.5%

3.7%

2.1%

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.



RELATED LINKS

http://www.clearingworks.com