WidePoint Corporation Reports Full Year 2016 Financial Results
MCLEAN, Va., March 30, 2017 /PRNewswire/ -- WidePoint Corporation (NYSE Mkt: WYY), a leading provider of Managed Mobility Services (MMS) specializing in Cybersecurity and Telecommunications Lifecycle Management (TLM) solutions, today announced financial results for the fourth quarter and full-year ended December 31, 2016.
Recent Business Highlights
- Board of Directors appointed Jeffrey O. Nyweide as the Chief Executive Officer and President and Director
- Added a major telecommunication consolidator as a new channel partner for TLM
- Added two major resellers as channel partners for credentialing solutions
- Realigned sales and marketing to improve lead generation activities
- Initiated consolidation of physical and logical infrastructure to eliminate redundant overheads and reduce costs
Full Year 2016 Financial Highlights
- Net revenue was approximately $78.4 million compared to $70.8 million in 2015
- Gross profit was approximately $14.0 million compared to $13.2 million in 2015
- Net loss of approximately ($4.1 million) compared to ($5.5 million) in 2015, or basic and diluted loss per share of $0.05 per share compared to $0.07 in 2015
- Adjusted EBITDA loss of approximately ($2.0 million) compared to approximately ($3.5 million in 2015
Fourth Quarter 2016 Financial Highlights
- Net revenue was approximately $18.3 million compared to $18.7 million in the fourth quarter of 2015
- Gross profit was approximately $2.4 million compared to $3.2 million in the fourth quarter of 2015
- Net loss was approximately ($2.4 million) compared to ($1.1 million) in the fourth quarter of 2015, or basic and diluted loss per share of $0.03 per share compared to $0.01 in the fourth quarter of 2015.
- Adjusted EBITDA loss was approximately ($1.7 million) compared to approximately ($0.9 million) in fourth quarter of 2015. Included in our 4th quarter 2016 expenses were also approximately $1.2 million in non-recurring charges.
- Cash and cash equivalents was approximately $9.1 million as of December 31, 2016. Working capital was approximately $5.0 million.
"Over the past three months, I've conducted a strategic review of our business to gain a deep understanding of our products and services, our employees and management, our clients and partners. I see a lot of opportunities ahead for WidePoint," stated Jeffrey O. Nyweide, WidePoint's Chief Executive Officer and President. "As a company, we are committed to capitalizing on our foundation of core expertise and innovation to pursue high growth opportunities in both mobile telecommunications and cybersecurity. Throughout 2017, we will continue to streamline and consolidate our infrastructure to support an organization that can scale both revenues and profitability."
Non-GAAP Financial Measures
WidePoint uses a variety of operational and financial metrics, including non-GAAP financial measures such as Adjusted EBITDA, to enable it to analyze its performance and financial condition. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. A reconciliation of Net loss to Adjusted EBITDA is included on the schedules attached hereto.
Conference Call Information
A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Thursday, March 30, 2017. Anyone interested in listening to our analyst call should call 1-888-791-4305 if calling within the United States or 1-913-312-1378 if calling internationally. There will be a playback available until April 13, 2017. To listen to the playback, please call 1 844-512-2921 if calling within the United States or 1-412-317-6671 if calling internationally. Please use PIN code 4711433 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=123277.
About WidePoint
WidePoint is a leading provider of secure, cloud-delivered, enterprise-wide information technology-based solutions that can enable enterprises and agencies to deploy fully compliant IT services in accordance with government mandated regulations and advanced system requirements. WidePoint has several major government and commercial contracts. For more information, visit 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 Company's ability to achieve profitability and positive cash flows; (v) the Company's ability to raise additional capital on favorable terms or at all; (vii) the Company's ability to gain market acceptance for its products and (viii) 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 Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on March 15, 2016.
-tables follow-
| WIDEPOINT CORPORATION CONSOLIDATED BALANCE SHEETS |
|||
| DECEMBER 31, |
|||
| 2016 |
2015 |
||
| ASSETS |
|||
| CURRENT ASSETS |
|||
| Cash and cash equivalents |
$ 9,123,498 |
$ 7,930,303 |
|
| Accounts receivable, net of allowance for doubtful accounts of $344,411 and $73,378 in 2016 and 2015, respectively |
5,153,093 |
10,565,113 |
|
| Unbilled accounts receivable |
8,112,690 |
6,637,587 |
|
| Inventories |
123,287 |
28,400 |
|
| Prepaid expenses and other assets |
385,388 |
435,300 |
|
| Income taxes receivable |
42,896 |
- |
|
| Deferred income taxes |
48,826 |
30,889 |
|
| Total current assets |
22,989,678 |
25,627,592 |
|
| NONCURRENT ASSETS |
|||
| Assets held for sale |
594,376 |
- |
|
| Property and equipment, net |
736,678 |
1,513,307 |
|
| Intangibles, net |
4,298,902 |
5,101,523 |
|
| Goodwill |
18,555,578 |
18,555,578 |
|
| Deposits and other assets |
52,456 |
60,471 |
|
| TOTAL ASSETS |
$ 47,227,668 |
$ 50,858,471 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
| CURRENT LIABILITIES |
|||
| Short term note payable |
$ 131,761 |
$ 131,953 |
|
| Accounts payable |
8,665,449 |
7,812,226 |
|
| Accrued expenses |
7,872,557 |
6,687,054 |
|
| Deferred revenue |
1,190,558 |
2,007,970 |
|
| Income taxes payable |
5,141 |
37,684 |
|
| Current portion of long-term debt |
94,868 |
893,706 |
|
| Current portion of deferred rent |
40,397 |
28,071 |
|
| Current portion of capital lease obligations |
4,097 |
28,752 |
|
| Total current liabilities |
18,004,828 |
17,627,416 |
|
| NONCURRENT LIABILITIES |
|||
| Long-term debt related to assets held for sale, net of current portion |
412,180 |
- |
|
| Long-term debt, net of current portion |
- |
431,756 |
|
| Capital lease obligation, net of current portion |
- |
11,962 |
|
| Deferred rent, net of current portion |
86,198 |
123,923 |
|
| Deferred revenue |
- |
24,937 |
|
| Deposits and other liabilities |
- |
- |
|
| Deferred income taxes |
447,811 |
447,811 |
|
| Total liabilities |
18,951,017 |
18,667,805 |
|
| STOCKHOLDERS' EQUITY |
|||
| Preferred stock, $0.001 par value; 10,000,000 shares authorized; 2,045,714 shares issued and none outstanding |
- |
- |
|
| Common stock, $0.001 par value; 110,000,000 shares authorized; 82,730,134 and 82,520,696 shares issued and outstanding, respectively |
82,730 |
82,521 |
|
| Additional paid-in capital |
93,920,095 |
93,661,178 |
|
| Accumulated other comprehensive loss |
(309,369) |
(270,140) |
|
| Accumulated deficit |
(65,416,805) |
(61,282,893) |
|
| Total stockholders' equity |
28,276,651 |
32,190,666 |
|
| Total liabilities and stockholders' equity |
$ 47,227,668 |
$ 50,858,471 |
|
| WIDEPOINT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||
| YEAR ENDED |
THREE MONTHS ENDED |
|||||||||
| DECEMBER 31, |
DECEMBER 31, |
|||||||||
| 2016 |
2015 |
2016 |
2015 |
|||||||
| (Unaudited) |
||||||||||
| REVENUES |
$ 78,420,864 |
$ 70,838,017 |
$ 18,257,719 |
$ 18,714,846 |
||||||
| COST OF REVENUES (including amortization and depreciation of $1,204,858 and $1,183,143, respectively) |
||||||||||
| 64,410,468 |
57,605,357 |
15,850,877 |
15,477,768 |
|||||||
| GROSS PROFIT |
14,010,396 |
13,232,660 |
2,406,842 |
3,237,078 |
||||||
| OPERATING EXPENSES |
||||||||||
| Sales and Marketing |
2,667,808 |
3,030,249 |
600,813 |
697,210 |
||||||
| General and Administrative Expenses (including share-based compensation of $310,989 and $299,337, respectively) |
||||||||||
| 14,448,270 |
14,608,014 |
3,797,573 |
3,100,705 |
|||||||
| Product Development |
699,013 |
673,093 |
437,982 |
673,093 |
||||||
| Depreciation and Amortization |
358,559 |
383,265 |
89,603 |
100,054 |
||||||
| Total Operating Expenses |
18,173,650 |
18,694,621 |
4,925,971 |
4,571,062 |
||||||
| LOSS FROM OPERATIONS |
(4,163,254) |
(5,461,961) |
(2,519,129) |
(1,333,984) |
||||||
| OTHER INCOME (EXPENSE) |
||||||||||
| Interest Income |
14,591 |
23,031 |
3,973 |
5,107 |
||||||
| Interest Expense |
(72,231) |
(142,497) |
(11,163) |
(31,244) |
||||||
| Other Income |
13,536 |
33,009 |
2,412 |
(4,814) |
||||||
| Total Other Income (Expense) |
(44,104) |
(86,457) |
(4,778) |
(30,951) |
||||||
| LOSS BEFORE PROVISION FOR INCOME TAXES |
(4,207,358) |
(5,548,418) |
(2,523,907) |
(1,364,935) |
||||||
| INCOME TAX BENEFIT |
(73,446) |
(81,811) |
(94,475) |
(228,998) |
||||||
| NET LOSS |
$ (4,133,912) |
$ (5,466,607) |
$ (2,429,432) |
$ (1,135,937) |
||||||
| BASIC EARNINGS PER SHARE |
$ (0.05) |
$ (0.07) |
$ (0.03) |
$ (0.01) |
||||||
| BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING |
82,687,789 |
82,228,974 |
82,730,134 |
79,039,745 |
||||||
| DILUTED EARNINGS PER SHARE |
$ (0.05) |
$ (0.07) |
$ (0.03) |
$ (0.01) |
||||||
| DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING |
82,687,789 |
82,228,974 |
82,730,134 |
79,039,745 |
||||||
| WIDEPOINT CORPORATION ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION |
||||||||||
| FISCAL YEAR ENDED |
THREE MONTHS ENDED |
|||||||||
| DECEMBER 31, |
DECEMBER 31, |
|||||||||
| 2016 |
2015 |
2016 |
2015 |
|||||||
| Unaudited) |
||||||||||
| NET LOSS |
$ (4,133,900) |
$ (5,466,607) |
$ (2,429,400) |
$ (1,135,900) |
||||||
| Adjustments to GAAP net loss: |
||||||||||
| Depreciation and amortization |
1,563,400 |
1,566,400 |
406,600 |
409,500 |
||||||
| Amortization of deferred financing costs |
- |
10,300 |
- |
1,600 |
||||||
| Income tax provision (benefit) |
(73,400) |
(81,800) |
(94,400) |
(229,000) |
||||||
| Interest income |
(14,600) |
(23,000) |
(4,000) |
(5,100) |
||||||
| Interest expense |
72,200 |
132,200 |
11,100 |
20,900 |
||||||
| Other (expense) income |
(13,500) |
(33,000) |
(2,400) |
4,800 |
||||||
| Provision for doubtful accounts |
253,400 |
18,100 |
261,300 |
(38,800) |
||||||
| Stock-based compensation expense |
311,000 |
299,300 |
106,600 |
91,200 |
||||||
| Adjusted EBITDA |
$ (2,035,400) |
$ (3,578,107) |
$ (1,744,600) |
$ (880,800) |
||||||
For More Information:
Brett Maas or David Fore
Hayden IR
(646) 536-7331
[email protected]
SOURCE WidePoint Corporation
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