Usio, Inc. · NASDAQ:USIO
Usio — Payment Data Systems — Shareholder Meeting (June 2018)
20 slides from Usio's shareholder meeting presentation, Jun 11, 2018
Slide 1: Annual Shareholder Meeting June 11, 2018
Annual Shareholder Meeting June 11, 2018
Slide 2: Forward looking statements
Forward looking statements These slides and any accompanying oral presentation contain forward-looking information presently available to the Company’s management. The Company statements within the meaning of the Private Securities Litigation Reform Act of disclaims any obligation to update these fo
Slide 3: Louis Hoch, President, Chief Executive Officer
Louis Hoch President, Chief Executive Officer 6/11/2018 Payment Data Systems | paymentdata.com 3
Slide 4: Overview
Payment Data Systems is a leading integrated payment solutions provider, offering a wide range of payment solutions to merchants, billers, banks, service bureaus, and card issuers. We operate Overview credit, debit/prepaid and ACH payment processing platforms to deliver convenient, world-class payme
Slide 5: Investor Highlights
Investor Highlights PRICE (12/29/2017) $2.53 52 WEEK RANGE $1.17 - $4.10 MARKET CAP $41 mm SHARES 16.2 mm OUTSTANDING DEBT $0 CASH $4.8 mm 12/31/17 FISCAL YEAR END December 31 Year Founded 1998 Headquarters San Antonio, TX & office in Franklin, TN Number of Employees 40 Website www.paymentdata.com 6
Slide 6: Investor Highlights
Investor Highlights • NACHA (National Automated Clearing House • Positive adjusted EBITDA¹. Association) Certified – Meeting the standards for sounds practices relative to ACH • Blue chip customers; laser focus on three main payment processing. vertices with consistent payment streams (healthcare, r
Slide 7: What We Do
What We Do ACH Credit Card Prepaid Card Electric Bill Processing Processing Issuing Presentment& Payment (EBPP) • ACH Origination • Credit/Debit • General Purpose • Account Card Processing Reloadable • Electronic Bill Verification • Debit Card ONLY • Corporate Delivery • Account Analysis Processing
Slide 8: Market Sizing
Tomorrow Today 10x increase Market Sizing Industry research shows that 3B+ 30B “payment enablement” of software cards ways to pay platforms and “internet connected” devices will dramatically expand the size of the payment landscape and growth opportunities over the next decade. 44M 400M Source: Visa
Slide 9: Vaden Landers, Executive Vice President, Chief Revenue Officer
Vaden Landers Executive Vice President, Chief Revenue Officer 6/11/2018 Payment Data Systems | paymentdata.com 9
Slide 10: Upstream
Upstream $30k+ monthly processing volume - Retail and Virtual Payments In-store On-line Retail Micro Ecommerce Micro merchants = merchants = $3k/month sales $3k/month sales volume volume 6/11/2018 Payment Data Systems 10
Slide 11: Our Vertical Focus
Our Vertical Focus Healthcare Insurance Utility/Government Other Bill Pay Verticals Property Management 6/11/2018 Payment Data Systems | paymentdata.com 11
Slide 12: Growth Strategies
Growth Strategies Organic Strategic M&A 1. Expand ACH banking relationships 1. Acquire accretive credit card processing portfolios 2. Continuous innovation of our payment processing platform 2. Acquire companies that have complimentary or differentiated 3. Increase brand-awareness for products and s
Slide 13: Revenue Run Rate
Revenue Run Rate $30.00 *USD millions $25.00 $24.00 $20.00 $14.38 $14.57 $15.00 $13.40 $12.08 $10.00 $7.34 $5.18 $5.00 $- 2012 2013 2014 2015 2016 2017 2018 Revenue Run Rate (Million) 6/11/2018 Payment Data Systems 13
Slide 14: Transactions Processed per year
Transactions Processed per year 3500 3300 16 Millions 2978 2916 3000 2830 14 2500 12 10 2000 8 *Over $2.8 1500 6 Billion dollars processed in 1000 4 630 2017 and over 500 2 10.8 million in 0 0 transactions 2013 2014 2015 2016 2017 Dollars Processed Transactions Processed 6/11/2018 Payment Data Syste
Slide 15: Tom Jewell, Senior Vice President, Chief Financial Officer
Tom Jewell Senior Vice President, Chief Financial Officer 6/11/2018 Payment Data Systems | paymentdata.com 15
Slide 16: Balance Sheet Highlights
USD Millions 12/31/112/31/17 12/31/16 Account 7 Cash $4.8 $4.1 Balance Sheet Restricted cash & Settlement funds $53.0 $60.0 Total Assets $67.4 $69.5 Highlights Short-term/long-term debt - - Total Liabilities $54.3$69 $60.5 .5 Total Equity $13.1$13.1 $9.0 ~$41 million in unused tax NOL carry-forward
Slide 17: Income Statement Highlights
Income Statement Highlights USD Millions Q4 2017 Annual 2017 Annual 2016 Revenues $5.6 $14.6 $12.1 Cost of sales 4.3 10.8 8.3 Gross Profit $1.3 $3.8 $3.8 SG&A 1.9 4.4 3.2 Depreciation & Amortization .4 1.3 .9 Income tax benefit (expense) (0.2) (.3) (.0) Net Loss $(1.3) $(3.0) $(1.2) Adjusted EBITDA
Slide 18: PYDS Generates Cash
PYDS Generates Cash 2017 YE $ (.1)MM $4.8 MM 2016 YE $ .8 MM 2015 YE $2.1 MM 2014 YE $2.1 MM Cash on Hand Free Cash Generated December 31, 2017
Slide 19: Non-GAAP Reconciliation
Three Months Ended Twelve Months Ended Non-GAAP December 31, December 31, December 31, December 31, Reconciliation 2017 2016 2017 2016 Reconciliation from Operating Income (Loss) to Adjusted EBITDA: Operating Income (Loss) $ (1.1) $ (0.3) $ (2.8) $ (1.4) Depreciation and amortization 0.5 0.2 1.3 0.9
Slide 20: Summary
• Established provider of ACH and credit card payment processing in niche verticals • Credit card transaction processing volumes continue to be at highest levels in the history of the company • Record last quarter $5.6MM – annual revenue run rate of $22 million Summary • Recurring revenues and attra
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