Usio, Inc. · NASDAQ:USIO
Usio — Payment Data Systems — NYC Microcap Conference September 2018
25 slides from Usio's conference presentation, Oct 1, 2018
Slide 1: Investor Presentation
Investor Presentation 9/30/18 Payment Data Systems | paymentdata.com 1
Slide 2: Forward Looking Statements
Forward Looking Statements These slides and any accompanying oral presentation contain forward- information presently available to the Company’s management. The looking statements within the meaning of the Private Securities Litigation Company disclaims any obligation to update these forward-looking
Slide 3: Presenters
Presenters Louis A. Hoch, Co-founder, Vice-Chairman, Chief Executive Officer, COO 25 years of senior management experience, expert in payment processing and service bureau operations. Previously co-founded Billserv, Inc., (the industry leader in Electronic Bill Presentment and Payment, acquired by A
Slide 4: Investor Highlights
Investor Highlights PRICE (9/26/18) $1.90 52 WEEK RANGE $1.35 - $4.10 MARKET CAP $30.4 mm SHARES 16.0 mm OUTSTANDING DEBT $0 CASH $2.7 mm 6/30/18 FISCAL YEAR END December 31 Year Founded 1998 Headquarters San Antonio, TX & office in Franklin, TN Number of Employees 38 Website www.paymentdata.com 9/3
Slide 5: Company Highlights
Company Highlights • Record credit card transaction • Leveraged Distribution Model 1 to processing volumes for Q2 2018 Many sales approach allows business to scale quickly through the successful execution of it’s organic growth strategy • Recurring revenues and attractive margins • Sustainable compe
Slide 6: Payment Data Systems
Payment Data Systems We are a leader in the delivery of payment enablement technology platform. We serve clients in high growth verticals having specific disbursement and electronic bill delivery/ payment requirements in industries such as: • Healthcare • Property management • Utilities • Insurance
Slide 7: Our Purpose
Our Purpose Bring innovative payment solutions to the markets we serve in order to create value for our clients. Integration Layer Frictionless Onboarding Monetize Payments Disbursement Solutions • API Library offers access to • Easy contracting, onboarding • Software clients can enter • Prepaid pla
Slide 8: Merchant Acquiring, Card Issuing and ACH Processing Platform
Merchant Acquiring Issuing Card & Prepaid Card Programs & ACH Processing Proprietary Processing Platform 9/30/18 Payment Data Systems | paymentdata.com 8
Slide 9: Revenue Model: How We Make Money
Revenue Model How We Make Money ACH Credit Card Prepaid Card Processing Processing Issuing We get paid a “Click We get paid a % of Service Fees + Network Fee” per transaction Card Volume Interchange Revenue 9/30/18 Payment Data Systems | paymentdata.com 9
Slide 10: ACH Processing Investment Highlights
• Strong sales pipeline which should result in improved revenues for the rest of 2018 • Launched Same Day ACH Debits in September 2017 (ideal for urgent bill pay, payroll, etc.) • Late in 2017 PDS became only the 2nd processor to be NACHA Certified, the first was TeleCheck ACH • Electronic check tra
Slide 11: Prepaid Card Services
Custom Prepaid Program Management – True Processor • Allows companies to launch their own next-generation prepaid card solution Incentive, Promotional and Disbursement Cards Prepaid Card • A fully digital way to send cards instantly by email or text, 90% cheaper than plastic cards, first prepaid car
Slide 12: Innovative Digital Platform
Innovative Digital Platform Deliver cards Card is immediately available Cards can be instantly by text Customer online or with Apple Pay, branded with or email collects card Android Pay & Samsung Pay logos 9/30/18 Payment Data Systems | paymentdata.com 12
Slide 13: Prepaid Card Use Cases
Refunds & Per Loan Sales There’s a Rebates Diems Disbursements Incentives Prepaid Card Customer Corporate Insurance Employee for Everything! Rewards Expenses Payments Appreciation Sales Contractor Focus Group Referral Promotions Payments Payments Rewards 9/30/18 Payment Data Systems | paymentdata.co
Slide 14: Traditional 1-to-1 Customer Acquisition Model
Traditional “1-to-1” Customer Acquisition Model Labor Intensive – Largely Manual Process Account Established & Activated in Days or Weeks 9/30/18 Payment Data Systems | paymentdata.com 14
Slide 15: PYDS Integrated Payments Model
PYDS Integrated Payments Model 9/30/18 Payment Data Systems | paymentdata.com 15
Slide 16: Leveraged Partner Registration Distribution Model
Leveraged Partner Registration Distribution Model “partnerkey”: “string”, Industry Leading Process “partnerid”: “string”, “email”: “string”, to Rapidly Onboard “dba_name”: “string”, “legal_name”: “string”, Existing and “Next New” “ownership_type”: “string”, “fed_tax_id”: “string”, Accounts “business
Slide 17: Growth Opportunity – Integrated Software Vendors
Growth Opportunity – Integrated Software Vendors (ISV’s) The U.S. has tens of < +122% / > Thousands of ISVs According to TSG’s database of The U.S. market holds a treasure trove of 3.5 million merchants, processing ISVs that are sought after by merchant through ISV relationships grew acquirers for p
Slide 18: Built for Scale
Built for Scale < Card processing volume > < Card processing volume > Top Line Revenue Growth Contribution Margin 18 9/30/18 for every $1MM x 2.65% = $26,500 Payment Data Systems | paymentdata.com= .50% x $1MM = $5,000 9/30/18 Payment Data Systems | paymentdata.com 18
Slide 19: Transactions Processed per Year
Transactions Processed per year Millions $3500 3300 3210 16 $3000 2978 2916 2830 14 Transactions $2500 12 Volume $2000 10 *Over $2.8 Billion $1500 dollars processed in 8 2017 and over 10.8 million in transactions $1000 6 630 processed in 2017. $500 4 $0 1 Payment Data Systems | paymentdata.com 2 Ref
Slide 20: Revenue Run Rate
Results for 2012-2017 are Actuals $25 $20 $15 $10 ($ millions) ($ $5 $- 2012 2013 2014 2015 2016 2017 2018 1 1 Reflects YTD results as of 6 /30/18 Revenue Run Rate (Million) Annualized 9/30/18 Payment Data Systems | paymentdata.com 20
Slide 21: Appendix
APPENDIX 9/30/18 Payment Data Systems | paymentdata.com 21
Slide 22: Balance Sheet Highlights
Account 6/30/18 USD Millions Cash $2.7 Balance Restricted cash & Settlement funds $54.9 Total Assets $66.9 Sheet Short-term/long-term debt - Liabilities $56.1 Highlights Equity $10.8 Total Liabilities & Equity $66.9 ~$41 million in unused tax NOL carry-forward 9/30/18 Payment Data Systems | paymentd
Slide 23: Income Statement Highlights
Income Statement Highlights USD Millions Annual 2017 YTD 2018 Revenues $14.6 $12.1 Cost of sales 10.8 9.5 Gross Profit $3.7 $2.6 SG&A 4.3 3.8 Depreciation & Amortization 1.3 .9 Income tax benefit (expense) (0.3) 0 Net Loss $(3.0) $(2.1) Adjusted EBITDA $(0.6) $(0.5) See Non-GAAP Reconciliation in th
Slide 24: Non-GAAP Reconciliation
Twelve Months Ended Three Months Ended Six Months Ended Non-GAAP Reconciliation December 31, December 31, June 30, June 30, June 30, June 30, 2017 2016 2018 2017 2018 2017 (Values in Millions) Reconciliation from Operating Income (Loss) to Adjusted EBITDA: Operating Income (Loss) $ (2.8) $ (1.4) $ (
Slide 25: Summary
Established provider of ACH and credit card payment processing in niche verticals Proprietary issuing and acquiring platforms Credit card transaction processing volumes continue to be at highest levels in the history of the company Summary Record last quarter $5.6MM – annual revenue run rate of $24
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