Business
Usio Announces Record First Quarter 2020 Financial Results
Reports Highest Quarterly Revenues in Company’s History Results Driven by Strong Card Processing Volume Growth, with PayFac Processing Volumes up 52%
About this update from Usio, Inc.
[{"type":"text","content":"Reports Highest Quarterly Revenues in Company’s History\n Results Driven by Strong Card Processing Volume Growth, with PayFac Processing Volumes up 52% Sequentially from the Fourth Quarter of 2019 SAN ANTONIO, May 14, 2020 (GLOBE NEWSWIRE) -- Usio, Inc (NASDAQ: USIO), an integrated electronic payment solutions provider, today announced financial results for the first quarter of 2020, which ended March 31, 2020. “2020 is off to a tremendous start, with all-time record quarterly revenues and a significant improvement in profitability,” commented Louis Hoch, President and Chief Executive Officer of Usio. “Revenue growth accelerated for the first quarter, rising 18% in the first quarter versus the same period of last year. This followed 15% growth in the fourth quarter of 2019 versus the same period in the prior year. Both Credit Card Processing and Prepaid rose sharply in the first quarter compared to the same period last year. Credit Card Processing growth was led by PayFac, where volumes were up 52% sequentially from the fourth quarter of fiscal 2019. Adjusted EBITDA improved, reflecting strong top line growth, expanding margins, and a flattening out of expenses. Beyond our financial results, our business is continuing to add new accounts, introduce innovative new technologies, and improve our productivity. This is a strategy for long term success. “Coronavirus is changing the way we all live and work, and we have had to manage around the social distancing, shelter-in-place, and other restrictions this has placed on us as individuals, our business, and our customers. First and foremost, we are vigilant in ensuring the health and safety of our employees and those around us. And, Usio continues to adhere to all of the regulations governing our operations. For the most part, the many weeks of work-from-home had little impact on our productivity. While our quarterly results do not fully reflect the impact of the COVID-19 pandemic closures, we experienced a decline in ACH and other transactions in the last two weeks of March, 2020 and in April, 2020. In April, 2020, ACH transactions were down 7% versus April, 2019 and returned check transactions were down 42% versus April, 2019. We also experienced an April decline of nearly $10 million of credit card processing volume in the Singular portfolio primarily attributable to mandated closu...