 Card Processing, PayFac, Prepaid all Show Growth in the Quarter, with Prepaid Tripling over last several monthsBalance Sheet StrengthensSAN ANTONIO, Aug. 13, 2020 GLOBE NEWSWIRE -- Usio, Inc. Nasdaq: USIO, an integrated electronic payment solutions provider, today announced financial results for the second quarter of 2020, which ended June 30, 2020.We are entering the second half of 2020 in a strong position, as our business model has proven its resilience in one of the worst economic quarters in recent memory, commented Louis Hoch, President and Chief Executive Officer of Usio. Our Card Processing and Prepaid business revenues were up 4 and 58, respectively in the quarter and as compared to the same period of 2019, reflecting the continued strong demand for our innovative payment solutions. The performance of these businesses is particularly heartening and further validates that our strategy to serve a diversity of payments markets provides a foundation for continued growth and justifies our continued investment into both our Prepaid and PayFac business lines. Our ACH business continues to fight the headwinds of a soft consumer lending market from the effects of COVID-19 which generated generous forbearance agreements and government support programs that are dampening transaction volume. Conversely, ACHs remote check capture RCC and PINless debit continued their steady growth in the quarter.Exiting the quarter, both our Card Processing and Prepaid businesses had returned to virtually the same volume levels they had enjoyed prior to the onset of the pandemic, with continued, steady improvement in operational results. We have several PayFac Integrated Software Vendors ISVs currently in the implementation and on-boarding phase and anticipate continued growth from this segment. Funds loaded on prepaid cards, which is a leading indicator of future revenue, has tripled in just the last few months. We now have five of the ten largest cities in the United States, including the New York Immigration Coalition and the Mayors Fund of Los Angeles, using our prepaid platform to distribute government assistance funds. Furthermore, with our recent capital raise, we have liquidity to support our operations and strategic initiatives. As the consumer lending market returns to normal, this will add to the improvements that are now driving our business forward and help resume the momentum that had been built prior to the onset of the pandemic.As always, the health and safety of our employees as well as those around us remains a priority in everything we do.Second Quarter 2020 Financial Summary Revenues for the quarter ended June 30, 2020 decreased 3 to 7.0 million compared to the same period last year, primarily as a result of the softness in our consumer lending ACH business. Gross profits decreased by 18 to 1.3 million versus the same period last year and gross margins contracted by 3.4 to 18.5 for the quarter ended June 30, 2020, primarily driven by a shift in product mix.Other selling, general and administrative expenses decreased by 6 to 1.9 million for the quarter ended June 30, 2020 compared to the same period last year. The lower expenses were a result of restricted travel and other costs due to COVID-19 restrictions coupled with a lack of significant one-time expenses. For the second quarter of 2020, the operating loss was 1.3 million, flat compared to a year ago.Adjusted EBITDA was a loss of 571,258 compared to a loss of 404,710 in the second quarter of 2019. The major driver of the incremental loss was the lower gross profits related to COVID-19 revenue impacts. The Company reported a net loss of 1.3 million 0.10 per share for the quarter ended June 30, 2020, flat versus a net loss of 1.3 million 0.10 per share for the same period in the prior year.Six Months Ended June 30, 2020 Financial Summary Revenues for the six months ended June 30, 2020 were 14.7 million, up 7 from 13.7 million from the same period last year. The revenue growth in 2020 is all organic. Gross profits in the first six months of the year were 3.2 million up 11 from 2.9 million in the comparable period of 2019. Gross margins over the first half of 2020 increased by 0.7 to 21.8 from 21.1 over the first half of 2019.Other selling, general and administrative expenses increased by 10 to 4.0 million compared to 3.6 million for the same period last year reflecting our continued investment in our PayFac and Prepaid growth initiatives. Adjusted EBITDA for the first half of 2020 was a loss of 765,080 compared to a loss of 730,718 in for the same period of 2019. The Company reported a net loss of 2.1 million 0.16 per share for the six months ended June 30, 2020, compared to a net loss of 2.3 million 0.18 per share for the same period in the prior year.Usio continues to be in solid financial condition with 1.8 million in cash and cash equivalents at June 30, 2020. Subsequent to June 30, 2020, the Company received cash proceeds of 3,000,000 from a private placement with Topline Capital Partners, LP, an institutional investor that is focused on the long term. Conference Call and WebcastUsio, Inc.s management will host a conference call with a live webcast on Friday, August 14, 2020 at 11:00 am Eastern time to provide a business update. To listen to the conference call, interested parties within the U.S. should call 1-844-883-3890. International callers should call 1-412-317-9246. All callers should ask for the Usio conference call. The conference call will also be available through a live webcast, which can be accessed via the companys website at replay of the call will be available approximately one hour after the end of the call through August 28, 2020. The replay can be accessed via the Companys website or by dialing 1-877-344-7529 U.S. or 1-412-317-0088 international. The replay conference playback code is 10146617. About Usio, Inc.Usio, Inc. Nasdaq:USIO, a leading integrated payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, and card issuers. The Company operates credit, debitprepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to their clients. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the prepaid sector. Usio is headquartered in San Antonio, Texas, and has offices in Austin, Texas, and Franklin, Tennessee, just outside of Nashville. Websites: and Find us on Facebook and Twitter.About Non-GAAP Financial Measures This press release includes non-GAAP financial measures, EBITDA and adjusted EBITDA, as defined in Regulation G of the Securities and Exchange Act of 1934, as amended. The Company reports its financial results in compliance with GAAP, but believes that also discussing non-GAAP measures provides investors with financial measures it uses in the management of its business. The Company defines EBITDA as operating income loss, before interest, taxes, depreciation and amortization of intangibles. The Company defines adjusted EBITDA as EBITDA, as defined above, plus non-cash stock option costs and certain non-recurring items, such as acquisitions. These measures may not be comparable to similarly titled measures reported by other companies. Management uses EBITDA and adjusted EBITDA as indicators of the Companys operating performance and ability to fund acquisitions, capital expenditures and other investments and, in the absence of refinancing options, to repay debt obligations.Management believes EBITDA and adjusted EBITDA are helpful to investors in evaluating the Companys operating performance because non-cash costs and other items that management believes are not indicative of its results of operations are excluded. EBITDA and adjusted EBITDA are supplemental non-GAAP measures, which have limitations as an analytical tool. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Non-GAAP financial measures do not reflect a comprehensive system of accounting, may differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies. For a description of our use of EBITDA and adjusted EBITDA, and a reconciliation of EBITDA and adjusted EBITDA to operating income loss, see the section of this press release titled Non-GAAP Reconciliation.FORWARD-LOOKING STATEMENTS DISCLAIMERExcept for the historical information contained herein, the matters discussed in this release include forward-looking statements which are covered by safe harbors. Those statements include, but may not be limited to, all statements regarding managements intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. These forward-looking statements are identified by the use of words such as believe, intend, continue, anticipate, schedule, and expect among others. 