USA Technologies (USAT) Tops Q2 EPS by 1c, Beats on Revenues; Offers FY18 Revenue Guidance Above Consensus

USA Technologies (NASDAQ: USAT) reported Q2 EPS of $0.02, $0.01 better than the analyst estimate of $0.01. Revenue for the quarter came in at $32.5 million versus the consensus estimate of $31.39 million.

Fiscal Year 2018 Outlook

USAT is raising its outlook for fiscal year 2018. For full fiscal year 2018, the company now expects revenue to be between $140 million to $145 million and adjusted EBITDA to be between $13.5 million to $14.5 million. USAT expects total connections to its service as of the end of the fiscal year to be in the 1.03 million to 1.07 million range. USAT continues to expect the Cantaloupe transaction to be accretive in fiscal 2018, net of one-time transaction and integration expenses and any purchase accounting adjustments.

Second Quarter Financial Highlights:

• Revenue of $32.5 million, which reflects the acquisition of Cantaloupe Systems, Inc. (“Cantaloupe”) on November 9, 2017, increased 49% year-over-year, marking the 33rd consecutive quarter of growth
• On a pro-forma basis, as if the acquisition of Cantaloupe had occurred on July 1, 2016, revenue increased 26% year-over-year
• New net connections of 311,000, which include approximately 270,000 connections related to the acquisition of Cantaloupe and bring total connections over 900,000
• License and transaction fee revenue of $22.9 million, an increase of 37% year-over-year
• Operating loss of $(3.2) million
• Adjusted operating income (non-GAAP) of $0.6 million
• Net loss of $(12.5) million, or $(0.24) per share and includes a one-time charge of $9.1 million, or $0.17 per share, primarily related to the enactment of the U.S. Tax Cuts and Jobs Act as well as $3.4 million, or $0.06 per share, in one-time integration and acquisition related expenses
• Non-GAAP net income of $1.2 million, or $0.02 per share
• Adjusted EBITDA of $2.9 million, an increase of 68% year-over-year
• Ended the quarter with $15.4 million in cash

GUIDANCE:

USA Technologies sees FY2018 revenue of $140-145 million, versus the consensus of $139.15 million.

For earnings history and earnings-related data on USA Technologies (USAT) click here.

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