USA Technologies, Inc (USAT) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $0.14 million in the quarter, against a net loss of $5.42 million in the last year period. On an adjusted basis, net profit for the quarter was $0.34 million, when compared with net loss $0.09 million in the last year period. Revenue during the quarter grew 29.95 percent to $26.46 million from $20.36 million in the previous year period. Gross margin for the quarter contracted 282 basis points over the previous year period to 25.04 percent. Operating margin for the quarter period stood at positive 1.58 percent as compared to a negative 2.92 percent for the previous year period.
Operating income for the quarter was $0.42 million, compared with an operating loss of $0.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.86 million compared with $1.35 million in the prior year period. At the same time, adjusted EBITDA margin improved 42 basis points in the quarter to 7.04 percent from 6.62 percent in the last year period.
“USA Technologies has marked another record revenue quarter, while also achieving our 3 year revenue and connection goals. We continue to drive our payment and consumer engagement solutions into the rapidly evolving unattended retail market as we help our operator customers improve each location’s performance,” said Stephen P. Herbert, USA Technologies’ chairman and chief executive officer. “We are leveraging our flexible platform with third party offerings and our own ePort Interactive service to deepen the relationship with customers and provide even more value from each connection, while simultaneously expanding our distribution network.”
USA Technologies, Inc projects revenue to be in the range of $95 million to $100 million for financial year 2017.
Operating cash flow remains negative
USA Technologies, Inc has spent $9.65 million cash to meet operating activities during the nine month period as against cash outgo of $24.65 million in the last year period. The company has spent $0.83 million cash to meet investing activities during the nine month period as against cash outgo of $5.83 million in the last year period.
The company has spent $0.27 million cash to carry out financing activities during the nine month period as against cash inflow of $4.16 million in the last year period.
Cash and cash equivalents stood at $17.78 million as on Mar. 31, 2017, up 19.32 percent or $2.88 million from $14.90 million on Mar. 31, 2016.
Working capital turns positive
Working capital of USA Technologies, Inc has turned positive to $11.91 million on Mar. 31, 2017 from negative $0.20 million on Mar. 31, 2016. Current ratio was at 1.52 as on Mar. 31, 2017, up from 0.99 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 5 days for the quarter from 4 days for the last year period. Days sales outstanding went down to 29 days for the quarter compared with 41 days for the same period last year.
Days inventory outstanding has decreased to 9 days for the quarter compared with 16 days for the previous year period. At the same time, days payable outstanding went down to 44 days for the quarter from 62 for the same period last year.
Debt comes down marginally
USA Technologies, Inc has recorded a decline in total debt over the last one year. It stood at $9.05 million as on Mar. 31, 2017, down 3.22 percent or $0.30 million from $9.35 million on Mar. 31, 2016. Total debt was 10.16 percent of total assets as on Mar. 31, 2017, compared with 11.37 percent on Mar. 31, 2016. Debt to equity ratio was at 0.14 as on Mar. 31, 2017, down from 0.19 as on Mar. 31, 2016.
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