WidePoint Corporation Reports Fourth Quarter and Full Year 2017 Results
WidePoint Corporation Reports Fourth Quarter and Full Year 2017 Results
MCLEAN, Va., March 21, 2018 /PRNewswire/ -- WidePoint Corporation (NYSE Mkt: WYY) a leading provider of Trusted Mobility Management (TM2) specializing in Telecommunication Lifecycle Management (TLM) and Cybersecurity solutions, announced its fourth quarter and full year 2017 financial results.
Fourth Quarter 2017 Highlights (Comparisons versus Fourth Quarter 2016)
-- Revenue grew 9% to $19.9 million
-- Operating expenses declined 12% to $4.3 million
-- Net loss reduced to $0.8 million from $2.4 million
-- Adjusted EBITDA was $0.3 million as compared to ($1.7) million
"I'm very pleased with the progress we made to stabilize the company and reduce our net losses as a result of cost savings actions taken during the second, third and fourth quarters of 2017. I'm also pleased that our financial performance for the fourth quarter was markedly better than the third quarter with both top line and bottom line improvements. We believe that we have strategically aligned our resources in sales and marketing to support our TM2 offering, which is gaining traction as evidenced by the new contracts awarded in the first quarter," stated Jin Kang, WidePoint's President and Chief Executive Officer.
Kito Mussa, WidePoint's Chief Financial Officer, added, "We saw revenue growth in the quarter of 9 percent year-over-year, we reduced our net losses for the full year and the fourth quarter, and we achieved our goal to be Adjusted EBITDA positive in the fourth quarter. We are focusing next on improving our business profitability by reducing the cost to deliver our services. We believe this approach will position WidePoint to scale and meet the demands of our potential revenue growth opportunities."
Fourth Quarter 2017 Financial Highlights versus Comparative Period in Prior Year
(in
millions,
except per
share
amounts) December 31, 2017 December 31, 2016
----------- ----------------- -----------------
Revenues $19.9 $18.3
-------- ----- -----
Gross
Profit (%
of
Revenue) $3.6 (18%) $2.4 (18%)
---------- --------- ---------
Operating
Expenses $4.3 $4.9
--------- ---- ----
Loss from
Operations $(0.7) $(2.5)
----------- ----- -----
Net Loss $(0.8) $(2.4)
-------- ----- -----
Basic and
Diluted
Earnings
per Share
(EPS) $(0.01) $(0.03)
---------- ------ ------
Adjusted
EBITDA $0.3 $(1.7)
-------- ---- -----
-- Cash and cash equivalents was approximately $5.3 million as of December
31, 2017.
-- There was no outstanding balance on the credit facility.
Full Year 2017 Financial Highlights versus Comparative Period in Prior Year
(in
millions,
except
per
share
amounts) December 31, 2017 December 31, 2016
---------- ----------------- -----------------
Net
Revenue $75.9 $78.4
-------- ----- -----
Gross
Profit
(% of
Revenue) $13.7 (18%) $14.0 (18%)
--------- ---------- ----------
Operating
Expenses $17.2 $18.2
--------- ----- -----
Loss From
Operations $(3.5) $(4.2)
----------- ----- -----
Net Loss $(3.5) $(4.1)
-------- ----- -----
Basic and
Diluted
EPS $(0.04) $(0.05)
--------- ------ ------
Adjusted
EBITDA
Loss $(0.9) $(2.0)
-------- ----- -----
Non-GAAP Financial Measures
WidePoint uses a variety of operational and financial metrics, including non-GAAP financial measures such as Adjusted EBITDA, to enable it to analyze its performance and financial condition. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. A reconciliation of GAAP Net loss to Adjusted EBITDA is included on the schedules attached hereto.
Conference Call Information
A conference call and live webcast will take place today at 4:30 p.m. Eastern Time. Anyone interested in listening to our analyst call should call 1-877-451-6152 if calling within the United States or 1-201-389-0879 if calling internationally. There will be a playback available until April 4, 2018. To listen to the playback, please call 1?844-512-2921 if calling within the United States or 1-412-317-6671 if calling internationally. Please use PIN code 13676925 for the replay. The call will also be accompanied live by webcast over the Internet and accessible at http://public.viavid.com/index.php?id=128570.
About WidePoint
WidePoint Corporation (NYSE American: WYY) is a leading provider of technology-based management solutions including telecom management, mobile management, access management and identity management. For more information, visit www.widepoint.com.
For More Information:
Kimberly Rogers
Hayden IR
385-831-7337
kim@haydenir.com
WIDEPOINT CORPORATION
CONSOLIDATED BALANCE SHEETS
DECEMBER 31,
2017 2016
---- ----
ASSETS
CURRENT ASSETS
Cash and cash
equivalents $5,272,457 $9,123,498
Accounts receivable,
net of allowance for
doubtful accounts 8,131,025 5,153,093
of $107,618 and $344,411 in 2017
and 2016, respectively
Unbilled accounts
receivable 8,131,448 8,112,690
Other current assets 767,944 551,571
Total current assets 22,302,874 22,940,852
NONCURRENT ASSETS
Land and building held
for sale - 594,376
Property and
equipment, net 1,318,420 736,678
Intangibles, net 3,671,506 4,298,902
Goodwill 18,555,578 18,555,578
Other long term assets 44,553 52,456
TOTAL ASSETS $45,892,931 $47,178,842
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $7,266,212 $8,708,345
Accrued expenses 9,796,350 7,834,802
Deferred revenue 2,348,578 1,190,558
Current portion of
long term debt 101,591 94,868
Current portion of
other term
obligations 203,271 176,255
Total current
liabilities 19,716,002 18,004,828
NONCURRENT LIABILITIES
Mortgage debt related
to assets held for
sale, net - 412,180
of current portion
Long-term debt, net
of current portion 232,109 -
Other term
obligations, net of
current portion 78,336 86,198
Deferred revenue 264,189 -
Deferred tax liability 392,229 398,985
Total liabilities 20,682,865 18,902,191
STOCKHOLDERS' EQUITY
Preferred stock,
$0.001 par value;
10,000,000 shares - -
authorized; 2,045,714 shares issued and none
outstanding
Common stock, $0.001 par value; 110,000,000 shares
authorized; 83,031,595 and 82,730,134 shares issued
and outstanding, respectively
Additional paid-in
capital 94,200,237 93,920,095
Accumulated other
comprehensive loss (122,461) (309,369)
Accumulated deficit (68,950,742) (65,416,805)
Total stockholders'
equity 25,210,066 28,276,651
Total liabilities and
stockholders' equity $45,892,931 $47,178,842
=========== ===========
WIDEPOINT CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED YEARS ENDED
DECEMBER 31, DECEMBER 31,
2017 2016 2017 2016
---- ---- ---- ----
REVENUES $19,927,629 $18,257,719 $75,884,246 $78,420,864
16,334,655 15,850,877 62,194,187 64,410,468
COST OF REVENUES (including
amortization and
depreciation)
GROSS PROFIT 3,592,974 2,406,842 13,690,059 14,010,396
--------- --------- ---------- ----------
OPERATING EXPENSES
Sales and
Marketing 493,021 600,813 2,202,913 2,667,808
3,724,292 3,797,573 14,392,660 14,448,270
General and
Administrative
Expenses
(including
share-based
compensation)
Product
Development - 437,982 219,141 699,013
Depreciation
and
Amortization 125,440 89,603 338,314 358,559
Total Operating Expenses 4,342,753 4,925,971 17,153,028 18,173,650
--------- --------- ---------- ----------
LOSS FROM OPERATIONS (749,779) (2,519,129) (3,462,969) (4,163,254)
OTHER INCOME (EXPENSE)
Interest
Income 3,788 3,973 15,352 14,591
Interest
Expense (15,756) (11,163) (52,158) (72,231)
Other
(Expense)
Income 2,047 2,412 3,805 13,536
Total Other Income (Expense) (9,921) (4,778) (33,001) (44,104)
------ ------ ------- -------
LOSS BEFORE INCOME TAX
PROVISION (BENEFIT) (759,700) (2,523,907) (3,495,970) (4,207,358)
INCOME TAX PROVISION
(BENEFIT) 5,244 (94,475) 37,967 (73,446)
----- ------- ------ -------
NET LOSS $(764,944) $(2,429,432) $(3,533,937) $(4,133,912)
========= =========== =========== ===========
BASIC EARNINGS PER SHARE $(0.01) $(0.03) $(0.04) $(0.05)
====== ====== ====== ======
BASIC WEIGHTED-AVERAGE
SHARES OUTSTANDING 83,011,331 82,730,134 82,911,730 82,687,789
DILUTED EARNINGS PER SHARE $(0.01) $(0.03) $(0.04) $(0.05)
====== ====== ====== ======
DILUTED WEIGHTED-AVERAGE
SHARES OUTSTANDING 83,011,331 82,730,134 82,911,730 82,687,789
WIDEPOINT CORPORATION
RECONCILIATION OF GAAP NET LOSS TO
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
THREE MONTHS ENDED YEARS ENDED
DECEMBER 31, DECEMBER 31,
2017 2016 2017 2016
---- ---- ---- ----
NET LOSS $(764,900) $(2,429,400) $(3,533,900) $(4,133,912)
Adjustments to GAAP net income (loss):
Depreciation
and
amortization 385,200 406,600 1,493,200 1,566,400
Amortization
of deferred
financing
costs 9,800 - 19,300 -
Income tax
provision
(benefit) 5,300 (94,400) 38,000 (73,400)
Interest
income (3,800) (4,000) (15,400) (14,600)
Interest
expense 15,800 11,100 52,200 72,200
Other
(expense)
income (2,000) (2,300) (3,800) (13,500)
Provision for
doubtful
accounts 31,300 261,300 62,500 253,400
Gain on sale
of assets
held for sale - - (66,700) -
Loss on
disposal of
leasehold
improvements - - 172,800 -
Severance and
exit costs 353,100 - 540,600 -
Stock-based
compensation
expense 249,200 106,600 387,200 311,000
Adjusted EBITDA $279,000 $(1,744,500) $(854,000) $(2,032,412)
======== =========== ========= ===========
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SOURCE WidePoint Corporation
