USA Technologies' CEO Discusses Q4 Results - Earnings Call Transcript

This call will also include discussion of certain non-GAAP financial measures that we believe are useful for understanding our ongoing operations. These non-GAAP financial measures are supplemental to and not a substitute for GAAP financial measures such as net income or loss. Details of these items and a reconciliation of these non-GAAP financial measures to GAAP financial measures can be found in our press release issued this morning and on the investor relations page of our website www.usatech.com.

On our call this morning are Steve Herbert, Chairman and Chief Executive Officer, and Dave DeMedio, Chief Financial Officer. Steve will begin our discussion this morning with an overview of the full fiscal year, and then Dave will go through fourth quarter and the financial highlights in more detail. Steve will wrap up the call with some comments regarding the business outlook before opening the call to questions.

At this time, I would like to introduce Steve Herbert, Chairman and Chief Executive Officer of USA Technologies. Please go ahead, Steve.

Steve Herbert

Thank you, Ronnie and good morning, everyone. Since Dave will be discussing the fourth quarter financial results, my comments this morning will be geared more to the full year and how that translates to what we are looking forward to in the business this fiscal year and further out.

Revenues for the fiscal year ended June 30, 2012, grew by 27%, fueled in large part by growth in license and transaction fees of 23%. As we continue to bring more connections and customers onto our turnkey ePort Connect service.

We also saw more of those revenues drop to the bottom line in fiscal year 2012 as we negotiated key partnership agreements and made improvement to our service and product platforms to improve margins, scalability and performance, and we began to see the results of those improvements in the second half, particularly in the fourth quarter with gross profit margin on license and transaction fees crossing the 40% mark demonstrating the leverage inherent in our service and business model.

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