- Revenues increase by 40% over prior year - HOUSTON, June 29
/PRNewswire-FirstCall/ -- US Dataworks, Inc. (AMEX:UDW), a leading
developer of payment processing solutions, today announced its
financial results for its fiscal year 2009. Revenues increased by
39.9% in fiscal 2009 to $7,996,987, as compared to $5,717,593 in
fiscal 2008. Transactional revenues increased 16.8% to $2,158,409
in fiscal 2009, as compared to $1,848,130 in fiscal 2008. The
increase in transactional revenue was primarily attributable to new
customers added during the fiscal year and a steady growth of
transactions processed by our existing customers. Professional
service revenues increased 66.7% to $4,700,476 in fiscal 2009, as
compared to $2,820,332 in fiscal 2008. The increase in professional
service revenue was primarily attributable to the consulting
agreements with major customers and related purchase orders. Cost
of sales, which principally includes the costs of the personnel who
perform the services associated with our software maintenance,
support, training and installation activities, increased by
$195,024, or 9.9%, from $1,964,555 in fiscal 2008 to $2,159,579 in
fiscal 2009. However, gross profit as a percentage of total
revenues increased from 65.6% in fiscal 2008 to 73.0% in fiscal
2009. This gross margin increase is primarily due to the
significant increase in transactional revenue in fiscal 2009 as
compared to fiscal 2008. Total operating expenses decreased by
$11,318,381, or 68.9%, from $16,438,670 in fiscal 2008 to
$5,120,289 in fiscal 2009. The decrease in operating expenses was
principally attributable to the goodwill impairment expense of
$10,112,931 recorded in fiscal 2008, as compared to no goodwill
impairment charges in fiscal 2009, and to a $1,236,967 decrease in
general and administrative expense in fiscal 2009, as compared to
fiscal 2008. The decrease in general and administrative expense is
primarily attributable to a $940,000 decrease in compensation
expense, a $160,000 decrease in the use of outside services and
$127,000 decrease in insurance, office, and marketing expenses.
Management anticipates that operating expenses will increase
slightly over the coming year as the Company continues to maintain
and expand its customer base. Total other income (expense),
including interest expense and financing costs, decreased
$3,712,173, from income of $1,010,741 in fiscal 2008 to an expense
of $(2,701,432) in fiscal 2009. The decrease is principally due to
the $2,253,946 in interest expense charge incurred when $4,000,000
in convertible notes were refinanced in August 2008 (due to the
acceleration of the unamortized balance of the original issue
discount on such notes and the acceleration of the unamortized
portion of the financing costs for such notes) and a reduction in
the gain on derivatives associated with the debt feature of such
convertible notes of $1,072,956 recorded in fiscal 2009 as compared
to fiscal 2008. Charles E. Ramey, Chairman and CEO of the Company
stated, "We are pleased with our results for fiscal 2009. Our
increase in recurring revenue, particularly transactional revenue,
bodes well for our financial stability going forward. Our ability
to deliver our revenue growth of 40% with a high gross profit
margin of 73% and an EBITDA margin of 15% was also due to our
restructuring and our effective cost management." Conference Call
Information Interested parties may participate in the call by
dialing (877) 869-3847; international callers dial (201) 689-8261
about 5-10 minutes prior to 10:00 AM EDT. The conference call will
also be available on replay starting at 1:00 pm EDT on June 29,
2009, and ending on July 6, 2009. For the replay, please dial (877)
660-6853 (replay account # 269, replay conference #326685). The
access number for the replay for international callers is (201)
612-7415 (replay account # 269, replay conference #326685). About
US Dataworks, Inc. US Dataworks is a developer of payment
processing solutions, focused on the financial services market,
federal, state and local governments, billers and retailers.
Software developed by US Dataworks is designed to enable
organizations to transition from traditional paper-based payment
and billing processes to electronic solutions that automate
end-to-end processes for accepting and clearing checks. Additional
information about US Dataworks is available at
http://www.usdataworks.com/. Certain statements made in this press
release (other than the historical information contained herein)
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, as amended,
including, but not limited to, statements regarding our expectation
of continued growth, the benefits of our recent restructuring, the
anticipated features and benefits of our new distribution payment
capture solution, our vision for payment processing and our new
solutions' ability to provide a higher return on investment for our
clients. Any forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially,
including, but not limited to, the failure of our new solution to
perform as anticipated, our ability to provide long-term customer
value and agility, our ability to protect our intellectual
property, our position in the marketplace, our ability to develop
and timely introduce products that address market demand, the
impact of alternative technological advances and competitive
products, market fluctuations, our ability to avoid being delisted
from the NYSE Alternext US (formerly the American Stock Exchange),
our ability to repay, refinance or extend the maturity date of our
debt, and other risks detailed from time to time in the SEC reports
of US Dataworks, including its annual report on Form 10-K for the
year ended March 31, 2009. These forward-looking statements speak
only as of the date hereof. US Dataworks disclaims any obligation
to update these forward-looking statements. US DATAWORKS, INC.
Balance Sheet Analysis For the years ended March 31, 2009 and 2008
ASSETS March March 2009 2008 Current assets Cash and cash
equivalents $403,863 $903,393 Accounts receivable, trade 845,747
856,261 Prepaid expenses and other current assets 186,578 145,915
Total current assets 1,436,188 1,905,569 Property and equipment
2,352,183 2,337,646 Accumulated Amortization and depreciation
(2,046,400) (1,858,959) Goodwill, net 4,020,698 4,020,698 Other
assets 194,359 357,124 Total assets $5,957,028 $6,762,078
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current
portion of Note payable - Equipment $35,279 $35,279 Derivative
Liability - Compound Embedded - 353,749 Derivative Liability -
Warrants - 267,532 Deferred revenue 223,688 200,833 Accounts
payable 247,132 271,677 Interest Payable - related parties 38,336
18,188 Accrued expenses 199,940 366,538 Notes Payable - related
parties 4,203,500 - Total current liabilities 4,947,875 1,513,796
Long-term Note Payable - Equipment 17,639 52,918 Long-term Note
Payable - Related Party - 500,000 Long-term convertible promissory
note, net unamortized discount of $1,995,636 - 2,004,364 Total
liabilities 4,965,514 4,071,078 Shareholders' equity Convertible
series B preferred stock, 0001 par 55 55 Common Stock. 0001 par
3,273 3,206 Additional paid in capital 65,063,737 64,778,977
Accumulated deficit (64,075,551) (62,091,238) Total shareholders'
equity 991,514 2,691,000 Total liabilities and shareholders' equity
$5,957,028 $6,762,078 US DATAWORKS, INC. INCOME STATEMENT DATA For
the years ended March 31, 2009 and 2008 Qtr Ended Qtr Ended March
March YTD YTD 2009 2008 March 2009 March 2008 Revenues Software
licensing revenues $179,423 $(7,788) $245,931 $282,045 Software
transactional revenues 557,118 623,087 2,158,409 1,848,130 Software
maintenance revenues 225,914 238,339 892,171 896,358 Software
service revenues 934,735 866,842 4,700,476 2,820,332 1,897,190
1,720,480 7,996,987 5,846,865 Discounts on Sales - (129,272) -
(129,272) Net Revenue 1,897,190 1,591,208 7,996,987 5,717,593 Cost
of sales 552,062 495,243 2,159,579 1,964,555 Gross profit 1,345,128
1,095,965 5,837,408 3,753,038 Operating Expenses General and
administrative 1,213,419 1,484,950 4,932,846 6,144,484 Depreciation
and amortization 44,465 48,252 187,443 181,255 Goodwill Impairment
- 4,180,747 - 10,112,931 1,257,884 5,713,949 5,120,289 16,438,670
Income(Loss) from operations 87,244 (4,617,984) 717,119
(12,685,632) Other income (expense) Financing costs (18,518)
(40,000) (348,210) (152,680) Interest expense (109,601) (288,151)
(2,712,621) (458,675) Interest expense - related parties (126,111)
(10,668) (333,137) (47,256) Loss on disposition of assets - - -
(44,231) Gain on Derivatives - 536,571 621,281 1,694,237 Other
income (expense) - 11,565 71,255 19,346 (254,230) 209,317
(2,701,432) 1,010,741 Income(Loss) before provision for income
taxes (166,986) (4,408,667) (1,984,313) (11,674,891) Provision for
income taxes Income(Loss) $(166,986) $(4,408,667) $(1,984,313)
$(11,674,891) Basic and diluted income/ (loss) per share $(0.00)
$(0.14) $(0.06) $(0.37) Basic and diluted weighted-average
32,698,517 32,062,962 32,444,764 31,744,212 US DATAWORKS, INC.
INCOME STATEMENT DATA Non GAAP Reconciliations For the years ended
March 31, 2009 and 2008 2009 2008 Reconciliation of Adjusted EBITDA
(See Note 1) Net Income $(1,984,313) $(11,674,891) Depreciation and
Amortization (incl. loss on disposal of assets) 187,443 181,255
Stock Based compensation expense 284,827 337,720 Other (income)
expense 2,701,432 (1,010,741) Adjusted Ebitda (See Note 1)
1,189,389 (12,166,657) Reconciliation of EBITDA margin Revenue
$7,996,987 $5,717,593 Adjusted EBITDA 1,189,389 (12,166,657) Margin
% 15% (213%) Notes: (1) Adjusted EBITDA is a non-GAAP measure we
define as earnings before interest, taxes, depreciation and
amortization, and equity compensation expense. We use Adjusted
EBITDA as a supplemental financial measure to assess (i) our
operating and financial performance without regard to the structure
of our financing or the historical cost basis in our assets and
(ii) our ability to generate cash flow to cover our interest
payments. Adjusted EBITDA has limitations as an analytical tool and
should not be used as a substitute for financial measures presented
in accordance with GAAP, including net income, operating income and
cash flow from operating activities. Such limitations include the
fact that Adjusted EBITDA does not reflect (i) cash requirements to
service interest and principal payments on our debt, (ii) capital
expenditure requirements or (iii) income tax payment requirements
and income tax accruals. In addition, companies in our industry may
define Adjusted EBITDA differently than we do, thereby limiting its
usefulness as a comparative measure. CONTACTS: Charles Ramey, CEO
Donald C. Weinberger US Dataworks, Inc. Wolfe Axelrod Weinberger
Assoc. LLC Tel. (281) 504-8100 Tel. (212) 370-4500 Fax (212)
370-4505 DATASOURCE: US Dataworks, Inc. CONTACT: Charles Ramey, CEO
of US Dataworks, Inc., +1-281-504-8100; or Donald C. Weinberger of
Wolfe Axelrod Weinberger Assoc. LLC, +1-212-370-4500, Fax,
+1-212-370-4505, for US Dataworks, Inc. Web Site:
http://usdataworks.com/
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