Usio, Inc. · NASDAQ:USIO
Usio — Payment Data Systems — Shareholder Meeting (June 2019)
25 slides from Usio's shareholder meeting presentation, Jun 12, 2019
Slide 1: Annual Shareholder Meeting June 11, 2019
Annual Shareholder Meeting June 11, 2019
Slide 2: Forward Looking Statements
Forward Looking Statements These slides and any accompanying oral presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. These forward-looking statements are identified by the use of words such as
Slide 3: Presenter: Louis Hoch, President and CEO
Presenter Louis Hoch President and CEO 3
Slide 4: Who we are
Who we are We are FinTech experts providing innovative solutions and platforms by way of a leveraged distribution model in the fastest growing segment of the payments sector. Core Lines of Business ACH Issuing (PrePaid) Merchant Acquiring (Payment Facilitation) 4
Slide 5: Investor Highlights
Investor Highlights Share Price $3.37 06/10/2019 52-week $1.38 range $3.82 Cash $ 4.5m Shares 16.85m outstanding Debt $ 0 Market Cap $56.8m 5
Slide 6: Investor Highlights
Investor Highlights NACHA (National Automated Clearing House Association) Certified – Meeting the standards for sounds practices relative to ACH payment processing. Strong Balance sheet and clean capital structure with no debt. Recurring revenues and attractive margins. Record credit card transactio
Slide 7: Investor Highlights
Investor Highlights Blue chip customers; laser focus on three main vertices with consistent payment streams (healthcare, real estate, utilities). Sustainable competitive advantages in technology and custom solutions. Senior management with a combined 50 plus years of experience in the payment proces
Slide 8: Volume & Transactions Per Year
Volume & Transactions Per Year $3500 14 Over $3.4 billion dollars $3,300 $3,400 $3000 $2,978 $2,916 12 and 13 million transactions $2,830 $2500 10 processed in 2018. $2000 8 $1500 6 Transactions Volume (Volume in millions) in (Volume $1000 4 (transactions in millions) in (transactions $630 $500 2 $0
Slide 9: Investing in Growth Opportunities
Investing in Growth Opportunities PAYMENT FACILITATION ACH PROCESSING growth engine Enhancing the Our cash cow funds high- value of our growth initiatives, including Payment Facilitation platform and and Prepaid. partnerships. PREPAID CARD ISSUANCE growth engine 9
Slide 10: ACH Platform for Merchants
ACH Platform for Merchants Record Processing Volume $3bn in annual volume (2018) Seven Consecutive quarters of sequential ACH growth Multiple Originating Depository Financial Institutions Only Broad-Industry focused NACHA Certified sender More Funding Control Same Day Funding & Late Cutoff 6
Slide 11: Our Vertical Focus
Our Vertical Focus Healthcare Utility/Government Property Management Insurance Other Bill Pay Verticals 10 6/12/2019 11
Slide 12: Growth Strategies
Growth Strategies Organic Strategic M&A 1. Expand ACH banking relationships 2. Continuous innovation of our 1. Acquire accretive credit card payment processing platform processing portfolios 3. Increase brand-awareness for 2. Acquire companies that have Prepaid Services (B2B and complimentary or dif
Slide 13: Payment Facilitation
Payment Facilitation TIME CONSUMING Becoming a PayFac can take a year or more to develop It requires a significant FINANCIAL INVESTMENT EXPERTISE in financial technology and payments is required RISK & COMPLIANCE, fraud detection, legal issues and the data security rules have to be Cha enge addresse
Slide 14: Payment Facilitation Services
Payment Facilitation Services Solutionthe SPEED We streamline the entire process, allowing software companies to start 1 monetizing payments in a meaningful way within 30 Days EASE We unlock true earnings potential for our software partners by way of 2 substantial and meaningful revenue share, and p
Slide 15: Presenter: Houston Frost, SVP Prepaid Services
Presenter Houston Frost Senior Vice President Prepaid Services
Slide 16: Prepaid Card Services
Prepaid Card Services Per Diems, Corporate Expense Management, Contractor Payments Sample of Current Customers Sales Incentives, Employee Appreciation, Rewards Programs Loan/Funds Disbursements, Insurance Payments, Unique Forms of Compensation (medical trials, etc.) Refunds, Rebates, Claims – Disper
Slide 17: Full-Stack Prepaid Platform
Full-Stack Prepaid Platform Prepaid is not one-size-fits-all. We help businesses design a card solution with the features and technology their customers need. Services: Program Management / Card Operations Issuer Processing Web and Mobile Applications Customer Service Program Types: Consumer Reloada
Slide 18: Innovative Digital Platform in Action
Innovative Digital Platform in Action 19
Slide 19: Corporate Expense Solution
Corporate Expense Solution New product, launched Q4 2018 20
Slide 20: Presenter: Tom Jewell, SVP, Chief Financial Officer
Presenter Tom Jewell Senior Vice President, Chief Financial Officer
Slide 21: Balance Sheet Highlights
Balance Sheet Highlights USD Millions 12/31/112/31/18 12/31/17 Account 7 Cash $2.7* $4.8 Restricted cash & Settlement funds $56.8 $53 Total Assets $68.2 $67.4 Short-term/long-term debt - - Total Liabilities $58.6$69 $54.3 .5 Total Equity $9.6 $13.1 Total Liabilities & Stockholder Equity $68.2 $67.4
Slide 22: Income Statement Highlights
Income Statement Highlights Annual Revenue 2017 $14.6 MILLION Annual Adjusted EBITDA Revenue 2018 $5.6 Gross Profit 2018 2018 $(0.6) $25.0 2017 $(0.6) MILLION $3.8 Gross Profit 2017 23
Slide 23: Cash Generated
Cash Generated 2018 YE 2017 YE 2016 YE $(.4) MM $ (.1)MM $ .8 MM 2015 YE 2014 YE $2.7 MM $2.1 MM $2.1 MM Cash on Hand December 31, 2018 24
Slide 24: Non-GAAP Reconciliation
Non – GAAP Reconciliation Non-GAAP Twelve Months Ended December 31, December 31, Reconciliation 2018 2017 Reconciliation from Operating Income (Loss) to Adjusted EBITDA: Operating Income (Loss) $ (3.8) $ (2.8) Depreciation and amortization 1.9 1.3 EBITDA $ (1.9) $ (1.6) Non-cash stock-based compensa
Slide 25: Summary
Summary • Established provider of ACH and credit card payment processing in niche verticals • NACHA Certified ACH Processor • Credit card transaction processing volumes continue to be at highest levels in the history of the company • Recurring revenues and attractive margins (23.2% gross margins, -4
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