Usio, Inc. · NASDAQ:USIO
Usio — Payment Data Systems — Investor Presentation (October 2018)
24 slides from Usio's investor presentation, Oct 29, 2018
Slide 1: Investor Presentation
Investor Presentation 10/29/2018 Payment Data Systems | paymentdata.com 1
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 disclaims statements within the meaning of the Private Securities Litigation Reform Act of 1995 any obligation to update the
Slide 3: Presenters
Presenters Vaden Landers, Executive Vice President, Chief Revenue Officer 30+ years of experience in the payments industry. Former Chairman and Managing Partner of Singular Payments, currently serves as Strategic Advisor for MAPP Advisors. Held executive and board positions in multiple companies, in
Slide 4: Investor Highlights
Investor Highlights PRICE (10/26/18) $1.64 52 WEEK RANGE $1.35 - $4.10 MARKET CAP $26.24 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 1
Slide 5: Company Highlights
Company Highlights Record Credit card transaction Leveraged Distribution Model processing volumes for Q2 2018 One-to-many sales approach allows business to scale quickly through the successful execution of its organic growth Recurring Revenues and attractive strategy margins Sustainable competitive
Slide 6: Payment Data Systems
Payment Data Systems We are a leader in the delivery of payment enablement technology. We serve clients in high growth verticals having specific disbursement and electronic bill delivery/payment requirements in industries such as: Healthcare Utilities Property Management Insurance 10/29/2018 Payment
Slide 7: Proprietary Processing Platform
Merchant Acquiring Issuing Card & Prepaid Card Programs & ACH Processing Proprietary Processing Platform 10/29/2018 Payment Data Systems | paymentdata.com 7
Slide 8: Strong sales pipeline and ACH processing
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.) ACH Late in 2017 PDS became only the 2nd Processing processor to be NACHA Certified, the first was TeleCheck Investment Highli
Slide 9: Evolution of Payment Processing
Evolution of Payment Processing Traditional “Payment Payment Payment Facilitator” Enablement Processing Model Technology Simplifies Primarily a Bank, Introduced Entrance of Software integration process Terminal-Based Back Office Companies into Scale play in retail & solves for Function Distributed P
Slide 10: Leveraged Distribution Model
Leveraged Partner Registration “partnerkey”: “string”, Distribution Model “partnerid”: “string”, Industry Leading Process “email”: “string”, “dba_name”: “string”, to Rapidly Onboard “legal_name”: “string”, “ownership_type”: “string”, Existing and “Next New” “fed_tax_id”: “string”, “business_address_
Slide 11: 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 10/29/2018 Payment Data Systems | paymentdata.com 11
Slide 12: Sample Revenue Model
Sample Revenue Model Credit Card Acceptance - $100 Sale Merchant Interchange Card Brands Processor Fee Net Spread Discount Fee 2.05% .13% + $.02 $.08/txn .48% or $0.48 Rate 2.65% The MDR is the rate This is the fee paid to Dues and In a credit card or After all costs charged to a merchant the banks
Slide 13: Built for Scale
Built for Scale < Card processing volume > < Card processing volume > Top Line Revenue Growth Contribution Margin 10/29/2018 for every $1MM x 2.65% = $26,500 Payment Data Systems | paymentdata.com= .50% x $1MM = $5,000 13 10/29/2018 Payment Data Systems | paymentdata.com 13
Slide 14: Custom Prepaid Program Management
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 card in
Slide 15: 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 10/29/2018 Text “akimbopromo” to 313131 15
Slide 16: There's a Prepaid Card for Everything
Refunds & Per Loan Sales There’s a Rebates Diems Disbursements Incentives Prepaid Card for Customer Corporate Insurance Employee Everything! Rewards Expenses Payments Appreciation Sales Contractor Focus Group Referral Promotions Payments Payments Rewards 10/29/2018 Payment Data Systems | paymentdata
Slide 17: Transactions Processed Per Year
Transactions Processed Per Year $3500 16 $3,300 $3,400 $3000 $2,978 $2,916 14 Transactions $2,830 $2500 12 Volume $2000 10 *Over $2.8 Billion (millions) ($millions) $1500 dollars processed in 8 2017 and over 10.8 $1000 million in 6 transactions $630 processed in 2017. $500 4 $0 1 Reflects YTD result
Slide 18: Revenue Run Rate and CAGR
Results for 2013-2017 are Actuals 29.12 $25 30 $20 25 $15 20 CAGR Revenue Run Rate $10 15 (Percentage) ($ millions) ($ $5 10 $- 5 1 Reflects YTD results as of 6/30/18 1 2013 2014 2015 2016 2017 2018 Annualized 10/29/2018 Payment Data Systems | paymentdata.com 18
Slide 19: What Analysts are Saying
What Analysts are Saying Revenue up 146% ACH Growth PDS is growing rapidly, due largely to the Singular While ACH transactions declined last year as a acquisition last year with revenue up 146% YoY in large customer sold its customer base, ACH is the most recent quarter and 7.5% sequentially, back t
Slide 20: Appendix
Appendix 10/29/2018 Payment Data Systems | paymentdata.com 20
Slide 21: 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 10/29/2018 Payment Data Systems | payme
Slide 22: 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 23: 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 24: Summary
Summary Established provider of ACH Record last quarter $5.6MM – and credit card payment annual revenue run rate of $24 processing in niche verticals million Proprietary issuing and Blue chip customers merchant acquiring platforms Senior management with an Credit card transaction extensive proven tr
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