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