WIDEPOINT CORPORATION MCLEAN, Va., Nov. 9, 2016 /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 third quarter ended September 30, 2016.
Third Quarter 2016 Financial Highlights
-- Net revenue was approximately $22.1 million, up 30% compared to $17.0
million in the third quarter of 2015
-- Gross profit was approximately $4.0 million, up 29% compared to $3.1
million in the third quarter of 2015
-- Net Loss improved approximately $1.6 million to ($148,000) compared to
net loss of approximately ($1.8 million) in the third quarter of 2015,
or basic and diluted loss per share of $(0.00) per share compared to
$(0.02) in the third quarter of 2015
-- Adjusted positive EBITDA of approximately $340,000, up approximately
$1.4 million from an adjusted EBITDA loss of ($1.1 million) in the third
quarter of 2015
-- Cash and cash equivalents of $5.6 million as of September 30, 2016.
Working capital of approximately $7.0 million
Year to Date 2016 Financial Highlights
-- Net revenue was approximately $60.1 million compared to $52.1 million in
the first nine months of 2015
-- Gross profit was approximately $11.6 million compared to $10.0 million
in the first nine months of 2015
-- YTD Net Loss improved approximately $2.6 million to ($1.7 million)
compared to net loss of approximately ($4.3 million) in the nine months
of 2015, or basic and diluted loss per share of $(0.02) per share
compared to $(0.05) in the first nine months of 2015
"Our third quarter's financial results were satisfyingly strong. We grew our top line by 30% year over year and we were operationally profitable on an Adjusted EBITDA basis," stated Steve L. Komar, WidePoint's chief executive officer. "We remain confident that we will continue to make progress with our financial model, and we are particularly excited by the opportunities we see for our identity management solutions and our telecom lifecycle management solutions in both the Federal and Commercial market spaces. We continue to be optimistically excited about the direction that our partnership with AT&T is leading us, especially given their focused thrust into the Internet of Things (IoT). Coupling this opportunity with the continued positive progress we are making with the United States Coast Guard (USCG), leads us to believe that 2017 should continue to demonstrate even more positive financial improvements, and leveraging and scaling within our business model."
James McCubbin, WidePoint's chief financial officer, added, "The third quarter showed the leverage in our business model. We saw improvements in revenues, gross profits, and bottom line performance. Our third quarter performance put us on track to meet many of our goals that we set out at the beginning of the year, while we still had to deal with timing challenges in awards, regulatory delays, as well as the negative financial impact that we realized from the United Kingdom's vote to exit the European Union. Given these challenges we were pleased with our ability to achieve the positive results in the third quarter of 2016. We believe that 2017 will be an exciting year for all of our stakeholders given the new awards we are still expecting from the USCG and our new Identity Management solutions."
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 Wednesday, November 9, 2016. Anyone interested in listening to our analyst call should call 1-877-795-3649 if calling within the United States or 1-719-325-4776 if calling internationally. There will be a playback available until November 23, 2016. 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 1385272 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=121612.
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.
For More Information:
Brett Maas or David Fore
Hayden IR
(646) 536-7331
brett@haydenir.com
-tables follow-
WIDEPOINT CORPORATION
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, DECEMBER 31,
2016 2015
---- ----
ASSETS
CURRENT ASSETS
Cash and cash equivalents $5,585,559 $7,930,303
Accounts receivable, net of allowance for
doubtful accounts
of $76,235 and $73,378 in
2016 and 2015,
respectively 12,039,247 10,565,113
Unbilled accounts
receivable 6,344,989 6,637,587
Inventories 370,887 28,400
Prepaid expenses and other
assets 398,031 435,300
Deferred income taxes 44,019 30,889
Total current assets 24,782,732 25,627,592
NONCURRENT ASSETS
Property and equipment, net 1,321,763 1,513,307
Intangibles, net 4,761,199 5,101,523
Goodwill 18,555,578 18,555,578
Deposits and other assets 53,956 60,471
TOTAL ASSETS $49,475,228 $50,858,471
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Line of credit advance $126,007 $ -
Short term note payable 48,787 131,953
Accounts payable 9,026,925 7,812,226
Accrued expenses 7,101,830 6,687,054
Deferred revenue 1,182,313 2,007,970
Income taxes payable 48,663 37,684
Current portion of long-
term debt 242,536 893,706
Current portion of capital
lease obligations 10,030 28,752
Total current liabilities 17,787,091 17,599,345
NONCURRENT LIABILITIES
Long-term debt, net of
current portion 417,222 431,756
Capital lease obligation,
net of current portion - 11,962
Deferred rent, net of
current portion 137,851 151,994
Deferred revenue - 24,937
Deferred income taxes 447,811 447,811
Total liabilities 18,789,975 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 93,813,519 93,661,178
Accumulated other
comprehensive loss (223,623) (270,140)
Accumulated deficit (62,987,373) (61,282,893)
Total stockholders' equity 30,685,253 32,190,666
Total liabilities and
stockholders' equity $49,475,228 $50,858,471
=========== ===========
WIDEPOINT CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
2016 2015 2016 2015
---- ---- ---- ----
REVENUES $22,114,839 $16,994,858 $60,163,145 $52,123,171
COST OF REVENUES (including
amortization and depreciation of
$307,235, $290,011, $887,870, and
$873,724, respectively)
18,076,810 13,875,473 48,559,591 42,127,589
---------- ---------- ---------- ----------
GROSS PROFIT 4,038,029 3,119,385 11,603,554 9,995,582
--------- --------- ---------- ---------
OPERATING EXPENSES
Sales and
Marketing 625,481 764,845 2,066,995 2,333,039
General and
Administrative
Expenses
(including
share-based
compensation of
$68,088,
$89,229,
$204,414 and
$208,091,
respectively
3,450,767 3,624,495 10,650,697 11,027,431
Product
Development 2,648 268,853 261,031 479,878
Depreciation and
Amortization 84,759 92,968 268,956 283,211
------
Total Operating Expenses 4,163,655 4,751,161 13,247,679 14,123,559
--------- --------- ---------- ----------
LOSS FROM OPERATIONS (125,626) (1,631,776) (1,644,125) (4,127,977)
OTHER INCOME (EXPENSE)
Interest Income 3,012 7,020 10,618 17,924
Interest Expense (20,910) (30,868) (61,068) (111,253)
Other Income 3,779 (37,814) 11,124 37,826
-----
Total Other Income
(Expense) (14,119) (61,662) (39,326) (55,503)
------- ------- ------- -------
LOSS BEFORE PROVISION FOR INCOME
TAXES (139,745) (1,693,438) (1,683,451) (4,183,480)
INCOME TAX PROVISION 8,295 69,842 21,029 147,187
----- ------ ------ -------
NET LOSS $(148,040) $(1,763,280) $(1,704,480) $(4,330,667)
========= =========== =========== ===========
BASIC EARNINGS PER SHARE $(0.00) $(0.02) $(0.02) $(0.05)
====== ====== ====== ======
BASIC WEIGHTED-AVERAGE SHARES
OUTSTANDING 82,730,134 82,515,103 82,673,570 82,130,665
========== ========== ========== ==========
DILUTED EARNINGS PER SHARE $(0.00) $(0.02) $(0.02) $(0.05)
====== ====== ====== ======
DILUTED WEIGHTED-AVERAGE SHARES
OUTSTANDING 82,730,134 82,515,103 82,673,570 82,130,665
========== ========== ========== ==========
WIDEPOINT CORPORATION
ADJUSTED EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION AND AMORTIZATION
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
2016 2015 2016 2015
---- ---- ---- ----
NET LOSS $(148,000) $(1,763,300) $(1,704,500) $(4,330,700)
Adjustments to GAAP net income
(loss):
Gain on change in fair value of
contingent obligation - -
Depreciation and amortization 392,000 382,900 1,156,800 1,156,900
Amortization of deferred financing
costs - 2,900 - 8,700
Income tax provision (benefit) 8,300 69,900 21,000 147,200
Interest income (3,000) (7,000) (10,600) (17,900)
Interest expense 20,900 30,900 61,100 111,300
Other (expense) income (3,800) 37,800 (11,100) (37,800)
Provision for doubtful accounts 5,500 59,900 (7,900) 36,800
Stock-based compensation expense 68,100 89,200 204,400 208,100
Adjusted EBITDA $340,000 $(1,096,800) $(290,800) $(2,717,400)
======== =========== ========= ===========
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SOURCE WidePoint Corporation
