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 PR Newswire WASHINGTON, March 31, 2014 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 oAwarded $600 Million Blanket Purchase Agreement by the Department of Homeland Security (DHS) oEntered into a Global Master Services Agreement with Compass Group PLC oDeveloped and launched secured, cloud-based, Identity Service (IDS) 'Certificate-on-Device' for all types of mobile devices oDeveloped and launched ePassport Verification Services oDeveloped and launched Federally-Compliant Credentialed Healthcare IT Solution oDeveloped and launched Secure Cloud Service for Privileged User Access across hybrid cloud environments in January 2014 oAwarded wireless managed service contracts by the Centers for Disease Control and Prevention (CDC) and the Federal Communications Commission (FCC) oPartnered with Truphone, a global mobile network, to provide for international coverage oExpanded Channel Partnership with National Professional Services Company oProvided SaaS-based, Customized Mobile TEM Platform for Regional TEM Company oSelected by Gartner Inc. for inclusion in its Magic Quadrant for Managed Mobility Services oCompleted $12.5 million public offering of common stock Full year 2013 Financial Highlights oNet revenue decreased 16% to $46.8 million from $55.8 million in in 2012. oGross margin increased to 26% of revenue as compared to 25% in 2012. oLoss from operations was approximately $1.2 million compared to income from operations of approximately $1.0 million in 2012. oNet 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 2^nd and 3^rd 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 email@example.com (703) 349-2577 firstname.lastname@example.org -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 7,612,400 6,932,366 allowance for doubtful accounts 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 4,407,630 3,346,948 current 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 45,125 42,878 obligations Total current liabilities 10,905,612 10,578,617 NONCURRENT LIABILITIES Long-term debt, net of current 2,509,492 4,918,732 portion Capital lease obligation, net of 57,119 102,244 current portion Deferred rent, net of current 2,421 15,786 portion 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 $ 36,074,840 $ 39,579,841 stockholders' equity 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, 34,713,471 41,920,161 respectively) 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, 9,872,655 9,820,695 respectively) 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 (1,332,021) 732,614 INCOME TAXES 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 63,802,275 63,474,871 OUTSTANDING DILUTED EARNINGS PER SHARE $ (0.027) $ 0.013 DILUTED WEIGHTED-AVERAGE SHARES 63,802,275 63,758,632 OUTSTANDING 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 (1,250,000) (900,000) obligation 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 - 12,000 and related costs Avalon integration initiatives 21,000 121,600 Adjusted EBITDA $ (141,900) $ 2,342,800 SOURCE WidePoint Corporation Website: http://www.widepoint.com
WidePoint Corporation Announces Full Year 2013 Financial Results
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