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WidePoint Corporation Reports Fourth Quarter and Full Year 2017 Results
[March 21, 2018]

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
[email protected]

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
of $107,618 and $344,411 in 2017 and 2016, respectively

8,131,025


5,153,093

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 

of current portion

-


412,180

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

COST OF REVENUES (including amortization and depreciation)


16,334,655


15,850,877


62,194,187


64,410,468












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


General and Administrative Expenses (including

share-based compensation)


3,724,292


3,797,573


14,392,660


14,448,270


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)

 

Cision View original content:http://www.prnewswire.com/news-releases/widepoint-corporation-reports-fourth-quarter-and-full-year-2017-results-300617140.html

SOURCE WidePoint Corporation


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