USA Technologies, Inc. is a payment technology service provider of integrated cashless and mobile transactions in the self-service retail market. The Company's primary product is the ePort, a cashless payment terminal for vending machines, kiosks, and POS terminals. ePort Connect wirelessly facilitates electronic payment options to consumers (so that payment can be made with credit, debit, or NFC enabled electronic wallets like Apple Pay and Android Pay) while providing operators with both telemetry and machine-to-machine (M2M) services. ePort technology is primarily found in vending machines, kiosks and point-of-sale (POS) terminals, but the ePort Online and ePort Mobile products have extended the network to accept recurring payments from a PC or retail outlets and the taxi industry through smartphone devices. USA Technologies' services make available unattended credit card payment technology and networking of distributed assets in a variety of industries including vending, hospitality, commercial laundry and energy management.

USA Technologies was founded in 1992 and is headquartered in Malvern, US

Chairman & CEO

USA Technologies has offices in Malvern and Portland

Malvern, US (HQ)

100 Deerfield Lane

Malvern, US

3103 Phoenixville Pike

Portland, US

215 1618 SW 1st Ave

USA Technologies's revenue was reported to be $26.5 m in Q3, 2017

USD

## Revenue (Q3, 2017) | 26.5 m |

## Gross profit (Q3, 2017) | 14.6 m |

## Gross profit margin (Q3, 2017), % | 55% |

## Net income (Q3, 2017) | 136 k |

## EBIT (Q3, 2017) | 419 k |

## Market capitalization (15-Aug-2017) | 211.7 m |

## Cash (31-Mar-2017) | 17.8 m |

USA Technologies's current market capitalization is $211.7 m.

USD | FY, 2014^{} | FY, 2015^{} | FY, 2016^{} |
---|---|---|---|

## Revenue | 42.3 m | 58.1 m | 77.4 m |

## Revenue growth, % | 37% | 33% | |

## Cost of goods sold | 23 m | 29.4 m | 38.1 m |

## Gross profit | 19.3 m | 28.6 m | 39.3 m |

## Gross profit Margin, % | 46% | 49% | 51% |

## General and administrative expense | 14 m | 16.5 m | 22.4 m |

## Operating expense total | 14.6 m | 17.1 m | 23.5 m |

## EBIT | 436.3 k | (240.3 k) | (1.5 m) |

## EBIT margin, % | 1% | (0%) | (2%) |

## Interest expense | (256.8 k) | (301.8 k) | (600 k) |

## Interest income | 30.3 k | 82.7 k | 320 k |

## Net Income | 27.5 m | (1.1 m) | (6.8 m) |

USD | Q1, 2014^{} | Q2, 2014^{} | Q3, 2015^{} | Q1, 2015^{} | Q2, 2015^{} | Q3, 2016^{} | Q1, 2016^{} | Q2, 2016^{} | Q3, 2017^{} |
---|---|---|---|---|---|---|---|---|---|

## Revenue | 12.3 m | 12.8 m | 15.4 m | 16.6 m | 18.5 m | 20.4 m | 21.6 m | 21.8 m | 26.5 m |

## Cost of goods sold | 7.3 m | 7.2 m | 7.2 m | 8.7 m | 9.1 m | 9.7 m | 11.2 m | 11.4 m | 11.9 m |

## Gross profit | 5 m | 5.7 m | 8.2 m | 7.9 m | 9.4 m | 10.7 m | 10.3 m | 10.4 m | 14.6 m |

## Gross profit Margin, % | 41% | 44% | 53% | 48% | 51% | 52% | 48% | 48% | 55% |

## General and administrative expense | 3.6 m | 3.5 m | 4.3 m | 4.8 m | 4.8 m | 6.1 m | 6.9 m | 5.8 m | 5.9 m |

## Operating expense total | 3.6 m | 3.5 m | 4.3 m | 4.8 m | 4.8 m | 6.1 m | 6.9 m | 5.8 m | 5.9 m |

## EBIT | (666.7 k) | 51.5 k | 731.4 k | 112 k | 594 k | (595 k) | (950 k) | 234 k | 419 k |

## EBIT margin, % | (5%) | 0% | 5% | 1% | 3% | (3%) | (4%) | 1% | 2% |

## Interest expense | (74.9 k) | (49.4 k) | (85.3 k) | (119 k) | (104 k) | (180 k) | (212 k) | (201 k) | (188 k) |

## Interest income | 10.1 k | 4 k | 26.4 k | 51 k | 20 k | 67 k | 73 k | 200 k | 114 k |

## Pre tax profit | (5.5 m) | 233 k | 345 k | ||||||

## Income tax expense | (402.4 k) | (154 k) | (209 k) | ||||||

## Net Income | (61 k) | (260.9 k) | (566.6 k) | 360 k | (874 k) | (5.4 m) | (2.5 m) | 233 k | 136 k |

USD | FY, 2014^{} | FY, 2015^{} | FY, 2016^{} |
---|---|---|---|

## Cash | 9.1 m | 11.4 m | 19.3 m |

## Accounts Receivable | 33.8 m | 434.4 m | 5.1 m |

## Inventories | 363.4 k | 574.5 k | 987 k |

## Current Assets | 14.6 m | 23 m | 33 m |

## PP&E | 21.1 m | 12.9 m | 9.8 m |

## Goodwill | 7.7 m | 7.7 m | 11.7 m |

## Total Assets | 70.8 m | 73.8 m | 84.8 m |

## Accounts Payable | 7.8 m | 9.2 m | 12.4 m |

## Current Liabilities | 15.2 m | 16.7 m | 28.2 m |

## Non-Current Liabilities | 1.8 m | 3.8 m | 1.6 m |

## Total Liabilities | 17 m | 20.5 m | 29.8 m |

## Retained Earnings | (173.6 m) | (174.7 m) | (181.5 m) |

## Total Equity | 53.7 m | 53.3 m | 55 m |

## Financial Leverage | 1.3 x | 1.4 x | 1.5 x |

USD | Q1, 2014^{} | Q2, 2014^{} | Q3, 2015^{} | Q1, 2015^{} | Q2, 2015^{} | Q3, 2016^{} | Q1, 2016^{} | Q2, 2016^{} | Q3, 2017^{} |
---|---|---|---|---|---|---|---|---|---|

## Cash | 10.9 m | 6.7 m | 8.5 m | 11.6 m | 14.8 m | 14.9 m | 18.2 m | 18 m | 17.8 m |

## Inventories | 2.6 m | 3.4 m | 4.2 m | 3.7 m | 2.8 m | 2.3 m | 4.3 m | 4.8 m | 4.1 m |

## Current Assets | 17.6 m | 14.8 m | 18.2 m | 24.6 m | 28.3 m | 29.6 m | 35.4 m | 35.1 m | 34.6 m |

## PP&E | 17.8 m | 16.5 m | 13.6 m | 11.9 m | 10.9 m | 10.6 m | 9.6 m | 9.4 m | 9.2 m |

## Goodwill | 7.7 m | 7.7 m | 7.7 m | 11.7 m | 11.5 m | 11.5 m | |||

## Total Assets | 71.5 m | 67.7 m | 70 m | 74.2 m | 75.6 m | 82.2 m | 87.1 m | 86.4 m | 89 m |

## Accounts Payable | 7.6 m | 5.4 m | 5.2 m | 9.5 m | 7.9 m | 12 m | 8.7 m | 9.1 m | 11.5 m |

## Current Liabilities | 15.5 m | 12.2 m | 12.5 m | 17.1 m | 18.4 m | 29.8 m | 21.4 m | 20.3 m | 22.7 m |

## Non-Current Liabilities | 2.2 m | 1.8 m | 4.1 m | 3.1 m | 3.9 m | 2 m | 1.5 m | 1.4 m | 1.3 m |

## Retained Earnings | (173.7 m) | (173.9 m) | (174.5 m) | (174.3 m) | (175.2 m) | (180.6 m) | (184 m) | (183.7 m) | (183.6 m) |

## Total Equity | 53.8 m | 53.7 m | 53.3 m | 54 m | 53.3 m | 50.4 m | 64.2 m | 64.6 m | 65 m |

## Financial Leverage | 1.3 x | 1.3 x | 1.3 x | 1.4 x | 1.4 x | 1.6 x | 1.4 x | 1.3 x | 1.4 x |

USD | FY, 2014^{} | FY, 2015^{} | FY, 2016^{} |
---|---|---|---|

## Net Income | 27.5 m | (1.1 m) | (6.8 m) |

## Depreciation and Amortization | 5.5 m | 5.7 m | 5.1 m |

## Accounts Receivable | (157.1 k) | (2.5 m) | (375 k) |

## Inventories | (190.8 k) | (304.2 k) | (763 k) |

## Accounts Payable | 412.7 k | 918.8 k | 1.8 m |

## Cash From Operating Activities | 7.1 m | (1.7 m) | 6.5 m |

## Purchases of PP&E | (111.1 k) | (60.3 k) | |

## Cash From Investing Activities | (7.9 m) | 3.4 m | (5.8 m) |

## Long-term Borrowings | (374.4 k) | (358.6 k) | (674 k) |

## Cash From Financing Activities | 3.9 m | 645.9 k | 7.2 m |

## Interest Paid | 259.8 k |

USD | Q1, 2014^{} | Q2, 2014^{} | Q3, 2015^{} | Q1, 2015^{} | Q2, 2015^{} | Q3, 2016^{} | Q1, 2016^{} | Q2, 2016^{} | Q3, 2017^{} |
---|---|---|---|---|---|---|---|---|---|

## Net Income | (61 k) | (260.9 k) | (566.6 k) | 360 k | (874 k) | (5.4 m) | (2.5 m) | 233 k | 136 k |

## Depreciation and Amortization | 1.5 m | 1.4 m | 1.4 m | 1.4 m | 1.3 m | 1.2 m | 1.3 m | 1.3 m | 1.2 m |

## Accounts Receivable | 80.1 k | (363.4 k) | (974.2 k) | (713 k) | (767 k) | (1.9 m) | (1 m) | (1.3 m) | (41 k) |

## Inventories | (1.1 m) | (804.6 k) | 650.8 k | 219 k | 649 k | 250 k | (2.2 m) | (467 k) | 647 k |

## Accounts Payable | (121.3 k) | (2.3 m) | (150.6 k) | (1 m) | (1.6 m) | 4.2 m | (3.7 m) | 397 k | 2.4 m |

## Cash From Operating Activities | (1.4 m) | (3 m) | 65.3 k | 362 k | 507 k | 4.3 m | |||

## Purchases of PP&E | (31.5 k) | (18.9 k) | (3.9 k) | (49 k) | (33 k) | ||||

## Cash From Investing Activities | 3.3 m | (7.7 k) | 15.5 k | (45 k) | (17 k) | (5.8 m) | (810 k) | (1.1 m) | (830 k) |

## Long-term Borrowings | (95.6 k) | (72.9 k) | (92.9 k) | (128 k) | (233 k) | (151 k) | (161 k) | (213 k) | (182 k) |

## Cash From Financing Activities | (95.6 k) | (1.1 m) | 1.7 m | (99 k) | 2.7 m | 1.5 m | (272 k) | ||

## Interest Paid | 79.2 k | 56 k | 67.1 k |

USD | Y, 2017 |
---|---|

## Revenue/Employee | 372.7 k |

## Financial Leverage | 1.4 x |

USA Technologies's Transactions' Volume was reported to be $202.5 m in Q1, 2017. USA Technologies's Connections was reported to be 504 k in Q1, 2017. USA Technologies's Customers was reported to be 12.4 k in Q1, 2017

September 16, 2016

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