MCLEAN, Va., Nov. 9, 2016 /PRNewswire/ -- WidePoint
Corporation (NYSE Mkt: WYY), a leading provider of Managed Mobility
Services (MMS) specializing in Cybersecurity and Telecommunications
Lifecycle Management (TLM) solutions, today announced financial
results for the third quarter ended September 30, 2016.
Third Quarter 2016 Financial Highlights
- Net revenue was approximately $22.1
million, up 30% compared to $17.0
million in the third quarter of 2015
- Gross profit was approximately $4.0
million, up 29% compared to $3.1
million in the third quarter of 2015
- Net Loss improved approximately $1.6
million to ($148,000) compared
to net loss of approximately ($1.8
million) in the third quarter of 2015, or basic and diluted
loss per share of $(0.00) per share
compared to $(0.02) in the third
quarter of 2015
- Adjusted positive EBITDA of approximately $340,000, up approximately $1.4 million from an adjusted EBITDA loss of
($1.1 million) in the third quarter
of 2015
- Cash and cash equivalents of $5.6
million as of September 30,
2016. Working capital of approximately $7.0 million
Year to Date 2016 Financial Highlights
- Net revenue was approximately $60.1
million compared to $52.1
million in the first nine months of 2015
- Gross profit was approximately $11.6
million compared to $10.0
million in the first nine months of 2015
- YTD Net Loss improved approximately $2.6
million to ($1.7 million)
compared to net loss of approximately ($4.3
million) in the nine months of 2015, or basic and diluted
loss per share of $(0.02) per share
compared to $(0.05) in the first nine
months of 2015
"Our third quarter's financial results were satisfyingly strong.
We grew our top line by 30% year over year and we were
operationally profitable on an Adjusted EBITDA basis," stated
Steve L. Komar, WidePoint's chief
executive officer. "We remain confident that we will continue to
make progress with our financial model, and we are particularly
excited by the opportunities we see for our identity management
solutions and our telecom lifecycle management solutions in both
the Federal and Commercial market spaces. We continue to be
optimistically excited about the direction that our partnership
with AT&T is leading us, especially given their focused thrust
into the Internet of Things (IoT). Coupling this opportunity with
the continued positive progress we are making with the United
States Coast Guard (USCG), leads us to believe that 2017 should
continue to demonstrate even more positive financial improvements,
and leveraging and scaling within our business model."
James McCubbin, WidePoint's chief
financial officer, added, "The third quarter showed the leverage in
our business model. We saw improvements in revenues, gross profits,
and bottom line performance. Our third quarter performance put us
on track to meet many of our goals that we set out at the beginning
of the year, while we still had to deal with timing challenges in
awards, regulatory delays, as well as the negative financial impact
that we realized from the United
Kingdom's vote to exit the European Union. Given these
challenges we were pleased with our ability to achieve the positive
results in the third quarter of 2016. We believe that 2017 will be
an exciting year for all of our stakeholders given the new awards
we are still expecting from the USCG and our new Identity
Management solutions."
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 Net Loss to Adjusted EBITDA is included
on the schedules attached hereto.
Conference Call Information
A conference call and live webcast will take place at
4:30 p.m. Eastern Time, on
Wednesday, November 9, 2016. Anyone
interested in listening to our analyst call should call
1-877-795-3649 if calling within the
United States or 1-719-325-4776 if calling internationally.
There will be a playback available until November 23, 2016. 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 1385272 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=121612.
About WidePoint
WidePoint is a leading provider of secure, cloud-delivered,
enterprise-wide information technology-based solutions that can
enable enterprises and agencies to deploy fully compliant IT
services in accordance with government mandated regulations and
advanced system requirements. WidePoint has several major
government and commercial contracts. For more information, visit
www.widepoint.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This press release may contain forward-looking
information within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended (the Exchange Act), including all
statements that are not statements of historical fact regarding the
intent, belief or current expectations of the company, its
directors or its officers with respect to, among other things: (i)
the Company's financing plans; (ii) trends affecting the Company's
financial condition or results of operations; (iii) the company's
growth strategy and operating strategy; (iv) the Company's ability
to achieve profitability and positive cash flows; (v) the Company's
ability to raise additional capital on favorable terms or at all;
(vii) the Company's ability to gain market acceptance for its
products and (viii) the risk factors disclosed in the Company's
periodic reports filed with the SEC. The words "may," "would,"
"will," "expect," "estimate," "anticipate," "believe," "intend" and
similar expressions and variations thereof are intended to identify
forward-looking statements. Investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, many of which are beyond the
company's ability to control, and that actual results may differ
materially from those projected in the forward-looking statements
as a result of various factors including the risk factors disclosed
in the Company's Annual Report on Form 10-K for the year ended
December 31, 2015 filed with the SEC
on March 15, 2016.
For More Information:
Brett Maas or David Fore
Hayden IR
(646) 536-7331
brett@haydenir.com
-tables follow-
|
WIDEPOINT
CORPORATION
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
SEPTEMBER
30,
|
|
DECEMBER
31,
|
|
2016
|
|
2015
|
|
|
|
|
|
ASSETS
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
5,585,559
|
|
$
7,930,303
|
|
Accounts receivable,
net of allowance for doubtful accounts
of $76,235 and
$73,378 in 2016 and 2015, respectively
|
12,039,247
|
|
10,565,113
|
|
Unbilled accounts
receivable
|
6,344,989
|
|
6,637,587
|
|
Inventories
|
370,887
|
|
28,400
|
|
Prepaid expenses and
other assets
|
398,031
|
|
435,300
|
|
Deferred income
taxes
|
44,019
|
|
30,889
|
|
|
|
|
|
Total current
assets
|
24,782,732
|
|
25,627,592
|
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
|
Property and
equipment, net
|
1,321,763
|
|
1,513,307
|
|
Intangibles,
net
|
4,761,199
|
|
5,101,523
|
|
Goodwill
|
18,555,578
|
|
18,555,578
|
|
Deposits and other
assets
|
53,956
|
|
60,471
|
|
|
|
|
|
TOTAL
ASSETS
|
$
49,475,228
|
|
$
50,858,471
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Line of credit
advance
|
$
126,007
|
|
$
-
|
|
Short term note
payable
|
48,787
|
|
131,953
|
|
Accounts
payable
|
9,026,925
|
|
7,812,226
|
|
Accrued
expenses
|
7,101,830
|
|
6,687,054
|
|
Deferred
revenue
|
1,182,313
|
|
2,007,970
|
|
Income taxes
payable
|
48,663
|
|
37,684
|
|
Current portion of
long-term debt
|
242,536
|
|
893,706
|
|
Current portion of
capital lease obligations
|
10,030
|
|
28,752
|
|
|
|
|
|
Total current
liabilities
|
17,787,091
|
|
17,599,345
|
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
|
Long-term debt, net
of current portion
|
417,222
|
|
431,756
|
|
Capital lease
obligation, net of current portion
|
-
|
|
11,962
|
|
Deferred rent, net of
current portion
|
137,851
|
|
151,994
|
|
Deferred
revenue
|
-
|
|
24,937
|
|
Deferred income
taxes
|
447,811
|
|
447,811
|
|
|
|
|
|
Total
liabilities
|
18,789,975
|
|
18,667,805
|
|
|
|
|
|
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; 82,730,134 and 82,520,696 shares
issued and outstanding,
respectively
|
82,730
|
|
82,521
|
|
Additional paid-in
capital
|
93,813,519
|
|
93,661,178
|
|
Accumulated other
comprehensive loss
|
(223,623)
|
|
(270,140)
|
|
Accumulated
deficit
|
(62,987,373)
|
|
(61,282,893)
|
|
|
|
|
|
Total stockholders'
equity
|
30,685,253
|
|
32,190,666
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
49,475,228
|
|
$
50,858,471
|
|
WIDEPOINT
CORPORATION
|
|
CONSOLIDATED
STATEMENT OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
NINE MONTHS
ENDED
|
|
|
|
|
SEPTEMBER
30,
|
|
SEPTEMBER
30,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
$
22,114,839
|
|
$
16,994,858
|
|
$
60,163,145
|
|
$
52,123,171
|
|
COST OF REVENUES
(including amortization and depreciation of $307,235, $290,011, $887,870, and $873,724,
respectively)
|
18,076,810
|
|
13,875,473
|
|
48,559,591
|
|
42,127,589
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
4,038,029
|
|
3,119,385
|
|
11,603,554
|
|
9,995,582
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Sales and
Marketing
|
625,481
|
|
764,845
|
|
2,066,995
|
|
2,333,039
|
|
General and
Administrative Expenses (including share-based compensation of $68,088, $89,229, $204,414 and
$208,091, respectively
|
3,450,767
|
|
3,624,495
|
|
10,650,697
|
|
11,027,431
|
|
Product
Development
|
2,648
|
|
268,853
|
|
261,031
|
|
479,878
|
|
Depreciation and
Amortization
|
84,759
|
|
92,968
|
|
268,956
|
|
283,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
4,163,655
|
|
4,751,161
|
|
13,247,679
|
|
14,123,559
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
(125,626)
|
|
(1,631,776)
|
|
(1,644,125)
|
|
(4,127,977)
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
Interest
Income
|
3,012
|
|
7,020
|
|
10,618
|
|
17,924
|
|
Interest
Expense
|
(20,910)
|
|
(30,868)
|
|
(61,068)
|
|
(111,253)
|
|
Other
Income
|
3,779
|
|
(37,814)
|
|
11,124
|
|
37,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income
(Expense)
|
(14,119)
|
|
(61,662)
|
|
(39,326)
|
|
(55,503)
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE PROVISION
FOR INCOME TAXES
|
(139,745)
|
|
(1,693,438)
|
|
(1,683,451)
|
|
(4,183,480)
|
|
INCOME TAX
PROVISION
|
8,295
|
|
69,842
|
|
21,029
|
|
147,187
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
$
(148,040)
|
|
$
(1,763,280)
|
|
$
(1,704,480)
|
|
$
(4,330,667)
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
$
(0.00)
|
|
$
(0.02)
|
|
$
(0.02)
|
|
$
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
82,730,134
|
|
82,515,103
|
|
82,673,570
|
|
82,130,665
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE
|
$
(0.00)
|
|
$
(0.02)
|
|
$
(0.02)
|
|
$
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
82,730,134
|
|
82,515,103
|
|
82,673,570
|
|
82,130,665
|
|
WIDEPOINT
CORPORATION
|
|
ADJUSTED EARNINGS
BEFORE INTEREST, TAXES,
|
|
DEPRECIATION AND
AMORTIZATION
|
|
|
|
|
THREE MONTHS
ENDED
|
|
NINE MONTHS
ENDED
|
|
|
|
SEPTEMBER
30,
|
|
SEPTEMBER
30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$(148,000)
|
|
$
(1,763,300)
|
|
$
(1,704,500)
|
|
$
(4,330,700)
|
|
Adjustments to GAAP
net income (loss):
|
|
|
|
|
|
|
|
|
|
Gain on change in
fair value of contingent obligation
|
|
-
|
|
|
|
-
|
|
|
|
Depreciation and
amortization
|
|
392,000
|
|
382,900
|
|
1,156,800
|
|
1,156,900
|
|
Amortization of
deferred financing costs
|
|
-
|
|
2,900
|
|
-
|
|
8,700
|
|
Income tax provision
(benefit)
|
|
8,300
|
|
69,900
|
|
21,000
|
|
147,200
|
|
Interest
income
|
|
(3,000)
|
|
(7,000)
|
|
(10,600)
|
|
(17,900)
|
|
Interest
expense
|
|
20,900
|
|
30,900
|
|
61,100
|
|
111,300
|
|
Other (expense)
income
|
|
(3,800)
|
|
37,800
|
|
(11,100)
|
|
(37,800)
|
|
Provision for
doubtful accounts
|
|
5,500
|
|
59,900
|
|
(7,900)
|
|
36,800
|
|
Stock-based
compensation expense
|
|
68,100
|
|
89,200
|
|
204,400
|
|
208,100
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
340,000
|
|
$
(1,096,800)
|
|
$
(290,800)
|
|
$
(2,717,400)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/widepoint-corporation-reports-third-quarter-2016-financial-results-300360066.html
SOURCE WidePoint Corporation