WidePoint Corporation (NYSE American: WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management and Bill Presentment & Analytics solutions, today reported results for the fourth quarter and full year ended December 31, 2018.
Fourth Quarter 2018 and Recent Operational Highlights:
- Secured $1.6 million contract expansion with the U.S. Customs and Border Protection (CBP) agency, increasing the number of devices managed by 50% from 30,000 to 45,000
- Teamed with Leidos on the NASA Nest contract to provide Managed Mobility Services in support of the agency’s mission
- Added two new members to the Board of Directors, expanding the total number of directors to seven, including six independent directors and one inside director
- Relocated company headquarters to Fairfax, VA as part of consolidation strategy
Fourth Quarter 2018 Financial Highlights (results compared to the same year-ago period):
- Revenues increased 24% to $24.8 million
- Gross profit increased 25% to $4.5 million
- Net loss narrowed to $0.4 million
- Adjusted EBITDA, a non-GAAP financial measure, increased to $1.0 million, marking the company’s sixth consecutive quarter of positive adjusted EBITDA
Twelve Month 2018 Financial Highlights (results compared to the same year-ago period):
- Revenues increased 10% to a record $83.7 million
- Gross profit increased 12% to $15.3 million
- Net loss narrowed to $1.5 million
- Adjusted EBITDA totaled $1.8 million
Fourth Quarter 2018 Financial Summary
(in millions, except per share amounts)December 31, 2018December 31, 2017(Unaudited)Revenues $24.8 19.9Gross Profit $4.5$3.6Gross Profit Margin18%18%Operating Expenses$3.7 $4.3Loss from Operations $0.7 $(0.7)Net Loss$(0.4) $(0.8)Basic and Diluted Earnings per Share (EPS) $(0.00) $(0.01)Adjusted EBITDA $1.0$0.3
Fiscal Year 2018 Financial Summary
(in millions, except per share amounts)December 31, 2018December 31, 2017(Unaudited)Revenues $83.7 75.9Gross Profit $15.3$13.7Gross Profit Margin18%18%Operating Expenses$15.5 $17.2Loss from Operations $0.2 $(3.5)Net Loss$(1.5) $(3.5)Basic and Diluted Earnings per Share (EPS) $(0.02) $(0.04)Adjusted EBITDA $1.8$(0.9)
The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under the “Safe Harbor Statement” below.
Financial Outlook
For the fiscal year ending December 31, 2019, the company anticipates revenues in the range of $90.0 million to $93.0 million, and adjusted EBITDA of $1.9 million to $2.0 million. The company’s financial outlook statements are based on current expectations.
Management Commentary
“The fourth quarter was a strong finish to what was a pivotal year for WidePoint as we delivered strong financial performance, expanded key customer relationships, as well as secured and implemented several contracts with new customers,” said WidePoint’s CEO, Jin Kang. “All of these initiatives enabled us to achieve our primary goals in 2018 of not only stabilizing the business but beginning the process of driving strong, sustainable, and profitable growth.
“Our financial performance in the fourth quarter was highlighted by a 24% increase in revenues, a 25% increase in gross profit, and positive adjusted EBITDA of $1.0 million; marking our sixth consecutive quarter of positive adjusted EBITDA. From a business development standpoint, we continue to execute on our strategy of maintaining solid relationships with our systems integrator partners and customers to upsell and pursue new business. This is evidenced by our recent contracts with Leidos and CBP. Over the course of the past year, we made significant progress in bolstering our credentials and improving our compliance with various government organizations to increase our competitive advantage.
“Due to the success we’ve had stabilizing the business and the momentum we’ve generated, we’re excited and optimistic about 2019. We look forward to continuing with our strategy to profitably grow the business and return greater value to our shareholders.”
Conference Call
WidePoint management will hold a conference call today (March 21, 2019) at 4:30 p.m. Eastern time (1:30 p.m. local time) to discuss these results
WidePoint President and CEO Jin Kang, Chief Sales and Marketing Officer Jason Holloway, and CFO Kito Mussa will host the conference call, followed by a question and answer period.
U.S. dial-in number: 877-407-9210
International number: 201-689-8049
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios at 949-574-3860.
The conference call will be broadcast live and available for replay here and via the investor relations section of the company’s website.
A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through April 21, 2019.
Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Replay ID: 45084
About WidePoint
WidePoint Corporation (NYSE American: WYY) is a leading provider of trusted mobility management (TM2) solutions, including telecom management, mobile management, identity management, and bill presentment and analytics. For more information, visit widepoint.com.
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.
