WidePoint Corporation Announces Full Year 2013 Financial Results
Strategic Investments in 2013, End of Year Compass and DHS Awards, Cert on Device Launch, and Capital Raise Position Company for Growth
WASHINGTON, March 31, 2014 /PRNewswire/ -- WidePoint Corporation (NYSE Mkt: WYY), a leading provider of enterprise-wide Managed Mobility Solutions featuring mobile telecommunications management, cybersecurity, identity and data assurance, and consulting solutions deliverable in a secured environment, today announced financial results for the full-year ended December 31, 2013.
Business Highlights
- Awarded $600 Million Blanket Purchase Agreement by the Department of Homeland Security (DHS)
- Entered into a Global Master Services Agreement with Compass Group PLC
- Developed and launched secured, cloud-based, Identity Service (IDS) 'Certificate-on-Device' for all types of mobile devices
- Developed and launched ePassport Verification Services
- Developed and launched Federally-Compliant Credentialed Healthcare IT Solution
- Developed and launched Secure Cloud Service for Privileged User Access across hybrid cloud environments in January 2014
- Awarded wireless managed service contracts by the Centers for Disease Control and Prevention (CDC) and the Federal Communications Commission (FCC)
- Partnered with Truphone, a global mobile network, to provide for international coverage
- Expanded Channel Partnership with National Professional Services Company
- Provided SaaS-based, Customized Mobile TEM Platform for Regional TEM Company
- Selected by Gartner Inc. for inclusion in its Magic Quadrant for Managed Mobility Services
- Completed $12.5 million public offering of common stock
Full year 2013 Financial Highlights
- Net revenue decreased 16% to $46.8 million from $55.8 million in in 2012.
- Gross margin increased to 26% of revenue as compared to 25% in 2012.
- Loss from operations was approximately $1.2 million compared to income from operations of approximately $1.0 million in 2012.
- Net loss for the year was approximately $1.7 million as compared to net income of approximately $0.8 million in 2012.
"In addition to the many recent key accomplishments realized by the Company, we consciously invested in our business and made several key sales and marketing hires during 2013 to broaden our skills and expertise and to improve our reach into new target markets," Steve Komar, CEO, WidePoint, commented. Mr. Komar further stated, "With our recent product launches, new partnerships, and our successful capital raise, we believe we have repositioned the Company in 2014 for accelerating growth and profitability."
James McCubbin, WidePoint CFO, added, "2013 was a challenging year in many respects as we managed through a range of business issues, particularly federal government sequester and debt ceiling-related purchase delays. This led to a slowly contracting pipeline of new business as well as implementation holds on business awards. We also faced a major delay on our $600 million, multi-year telecommunications management award from DHS. However, during the year we continued to make key investments into the business and pay down debt. As we move into 2014, we currently see an expanding pipeline of business that should drive increased revenue in the 2nd and 3rd quarters of this year."
Conference Call Information
A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Monday, March 31, 2014. Anyone interested in participating should call 1- 877-941-2068 if calling within the United States or 1-480-629-9712 if calling internationally. There will be a playback available until April 14, 2014. To listen to the playback, please call 1-877-870-5176 if calling within the United States or 1-858-384-5517 if calling internationally. Please use pin number 4674898 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=108326.
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 declaration and payment of dividends; and (v) 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 Forms 10-K and 10-Q filed with the SEC.
| For More Information: |
|
| Jim McCubbin, EVP & CFO |
Brett Maas or Dave Fore |
| WidePoint Corporation |
Hayden IR |
| 7926 Jones Branch Drive, Suite 520 |
(646) 536-7331 |
| McLean, VA 22102 |
|
| (703) 349-2577 |
|
-tables follow-
| WIDEPOINT CORPORATION AND SUBSIDIARIES |
|||
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
| DECEMBER 31, |
|||
| 2013 |
2012 |
||
| ASSETS |
|||
| CURRENT ASSETS |
|||
| Cash and cash equivalents |
$ - |
$ 1,857,614 |
|
| Accounts receivable, net of allowance for doubtful accounts |
7,612,400 |
6,932,366 |
|
| of $30,038 and $76,886 in 2013 and 2012, respectively |
|||
| Unbilled accounts receivable |
1,561,030 |
2,969,450 |
|
| Inventories |
61,338 |
286,920 |
|
| Prepaid expenses and other assets |
533,944 |
482,389 |
|
| Income taxes receivable |
763 |
138,575 |
|
| Deferred income taxes |
- |
473,430 |
|
| Total current assets |
9,769,475 |
13,140,744 |
|
| NONCURRENT ASSETS |
|||
| Property and equipment, net |
1,545,951 |
1,428,323 |
|
| Intangibles, net |
3,613,271 |
4,969,241 |
|
| Goodwill |
16,618,467 |
16,618,467 |
|
| Deferred income tax asset, net of current |
4,407,630 |
3,346,948 |
|
| Deposits and other assets |
120,046 |
76,118 |
|
| TOTAL ASSETS |
$ 36,074,840 |
$ 39,579,841 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
| CURRENT LIABILITIES |
|||
| Line of credit advance |
$ 916,663 |
$ - |
|
| Short term note payable |
119,336 |
113,018 |
|
| Accounts payable |
3,228,586 |
5,555,419 |
|
| Accrued expenses |
4,407,286 |
3,539,710 |
|
| Deferred revenue |
40,911 |
173,655 |
|
| Income taxes payable |
217,982 |
- |
|
| Deferred income taxes |
700,743 |
- |
|
| Current portion of long-term debt |
1,150,455 |
1,102,741 |
|
| Current portion of deferred rent |
78,525 |
51,196 |
|
| Current portion of capital lease obligations |
45,125 |
42,878 |
|
| Total current liabilities |
10,905,612 |
10,578,617 |
|
| NONCURRENT LIABILITIES |
|||
| Long-term debt, net of current portion |
2,509,492 |
4,918,732 |
|
| Capital lease obligation, net of current portion |
57,119 |
102,244 |
|
| Deferred rent, net of current portion |
2,421 |
15,786 |
|
| Deferred revenue |
82,494 |
25,231 |
|
| Deposits and other liabilities |
1,964 |
1,964 |
|
| Total liabilities |
13,559,102 |
15,642,574 |
|
| 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; 63,907,357 and 63,751,857 shares issued |
|||
| and outstanding, respectively |
63,907 |
63,752 |
|
| Additional paid-in capital |
69,867,491 |
69,594,390 |
|
| Accumulated deficit |
(47,415,660) |
(45,720,875) |
|
| Total stockholders' equity |
22,515,738 |
23,937,267 |
|
| Total liabilities and stockholders' equity |
$ 36,074,840 |
$ 39,579,841 |
|
| WIDEPOINT CORPORATION AND SUBSIDIARIES |
||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||
| YEAR ENDED |
||||||
| DECEMBER 31, |
||||||
| 2013 |
2012 |
|||||
| REVENUES |
$ 46,825,032 |
$ 55,782,742 |
||||
| COST OF REVENUES (including amortization and depreciation of |
||||||
| $1,462,995 and $1,511,267, respectively) |
34,713,471 |
41,920,161 |
||||
| GROSS PROFIT |
12,111,561 |
13,862,581 |
||||
| OPERATING EXPENSES |
||||||
| Sales and Marketing |
3,125,867 |
2,741,799 |
||||
| General and Administrative Expenses (including share-based |
||||||
| compensation of $227,035 and $217,611, respectively, |
||||||
| and gain on change in fair value of contingent obligation of |
||||||
| $1,250,000 and $900,000, respectively) |
9,872,655 |
9,820,695 |
||||
| Depreciation and Amortization |
288,333 |
281,310 |
||||
| Total Operating Expenses |
13,286,855 |
12,843,804 |
||||
| (LOSS) INCOME FROM OPERATIONS |
(1,175,294) |
1,018,777 |
||||
| OTHER INCOME (EXPENSE) |
||||||
| Interest Income |
7,364 |
4,881 |
||||
| Interest Expense |
(175,358) |
(294,244) |
||||
| Other Income (Expense) |
11,267 |
3,200 |
||||
| Total Other Income (Expense) |
(156,727) |
(286,163) |
||||
| (LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES |
(1,332,021) |
732,614 |
||||
| INCOME TAX PROVISION (BENEFIT) |
362,764 |
(99,687) |
||||
| NET (LOSS) INCOME |
$ (1,694,785) |
$ 832,301 |
||||
| BASIC EARNINGS PER SHARE |
$ (0.027) |
$ 0.013 |
||||
| BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING |
63,802,275 |
63,474,871 |
||||
| DILUTED EARNINGS PER SHARE |
$ (0.027) |
$ 0.013 |
||||
| DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING |
63,802,275 |
63,758,632 |
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| WIDEPOINT CORPORATION AND SUBSIDIARIES |
||||||
| RECONCILIATION OF GAAP EARNINGS TO NON-GAAP ADJUSTED EARNINGS |
||||||
| BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA) |
||||||
| YEAR ENDED |
||||||
| DECEMBER 31, |
||||||
| 2013 |
2012 |
|||||
| NET (LOSS) INCOME |
$ (1,694,800) |
$ 832,300 |
||||
| Adjustments to GAAP net income (loss): |
||||||
| Gain on change in fair value of contingent obligation |
(1,250,000) |
(900,000) |
||||
| Depreciation and amortization |
1,751,300 |
1,792,600 |
||||
| Amortization of deferred financing costs |
8,700 |
3,100 |
||||
| Income tax provision (benefit) |
362,800 |
(99,700) |
||||
| Interest income |
(7,400) |
(4,900) |
||||
| Interest expense |
175,400 |
294,200 |
||||
| Other (expense) income |
(11,300) |
(3,200) |
||||
| Provision for doubtful accounts |
75,400 |
25,100 |
||||
| Inventory write-downs |
200,000 |
52,100 |
||||
| Stock-based compensation expense |
227,000 |
217,600 |
||||
| Avalon business combination transaction and related costs |
- |
12,000 |
||||
| Avalon integration initiatives |
21,000 |
121,600 |
||||
| Adjusted EBITDA |
$ (141,900) |
$ 2,342,800 |
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SOURCE WidePoint Corporation
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