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WidePoint Reports Fourth Quarter and Full Year 2019 Financial Results

Fairfax, VA – March 24, 2020 – WidePoint Corporation (NYSE American: WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management and Digital Billing & Analytics solutions, today reported results for the fourth quarter and full year ended December 31, 2019. 

Fourth Quarter 2019 and Recent Operational Highlights: 
  • Received a notice of intent from the Department of Homeland Security (DHS) to solicit and award a sole source IDIQ contract to WidePoint for Cellular Wireless Managed Services (CWMS) 
  • Supported the address canvassing program, the first major field operation of the 2020 Census, by activating, deploying, tracking, and decommissioning over 60,000 devices and providing training and help desk support to over 60,000 enumerators
  • Appointed Kellie Kim, a finance and accounting professional with over 30 years of experience in telecom, technology, and professional services as the new chief financial officer
  • Partnered with KoolSpan to provide end-to-end encryption for phone calls and text messages
  • Repurchased 864,000 shares of common stock, equivalent to $366,000, as of December 31, 2019
Fourth Quarter 2019 Financial Highlights (results compared to the same year-ago period):
  • Revenues increased 13% to $28.1 million
  • Gross profit increased 6% to $4.8 million
  • Net loss totaled $34,000
  • Adjusted EBITDA, a non-GAAP financial measure, was $972,000, marking the company’s tenth consecutive quarter of positive adjusted EBITDA, and in line with forecast
Full Year 2019 Financial Highlights (results compared to the same year-ago period):
  • Revenues increased 22% to a record $101.7 million
  • Gross profit increased 14% to a record $17.4 million
  • Net income totaled $226,000
  • Adjusted EBITDA totaled $3.6 million 

Fourth Quarter 2019 Financial Summary
(in millions, except per share amounts) December 31, 2019 December 31, 2018
(Unaudited)
Revenues  $28.1  24.8
Gross Profit  $4.8 $4.5
Gross Profit Margin 16.9% 18.1%
Operating Expenses $4.5  $3.7
Income (Loss) from Operations  $0.3  $0.7
Net Income (Loss) $(0.0)  $(0.4)
Basic and Diluted Earnings per Share (EPS)  $(0.00)  $(0.01)
Adjusted EBITDA  $1.0 $1.0
Full Year 2019 Financial Summary
(in millions, except per share amounts) December 31, 2019 December 31, 2018
(Unaudited)
Revenues  $101.7  83.7
Gross Profit  $17.4 $15.3
Gross Profit Margin 17.1% 18.2%
Operating Expenses $16.5  $15.5
Income (Loss) from Operations  $0.9  $(0.2)
Net Income (Loss) $0.2  $(1.5)
Basic and Diluted Earnings per Share (EPS)  $0.0  $(0.02)
Adjusted EBITDA  $3.6 $1.8

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 first quarter ending March 31, 2020, the company currently expects revenues of $26.0 million to $31.0 million, representing year-over-year growth of 19% to 42%. The company also expects adjusted EBITDA of $0.8 million to $0.9 million. The company’s financial outlook is based on current expectations.

Management Commentary

“2019 concluded with a strong performance in the fourth quarter in large part due to the successful execution of our sales strategy and our ability to effectively scale along with the growing needs of our customers while maintaining an efficient and effectively operated organization,” said WidePoint’s CEO, Jin Kang. “From a financial perspective, the quarter was highlighted by a 13% increase in revenues to $28.1 million and positive adjusted EBITDA of $1.0 million, which marks our tenth consecutive quarter of positive adjusted EBITDA. Operationally, we continued to ramp up our work on the U.S. Census project, strengthened our relationships with our system integrator partners, and received an intent to award notice for a sole source interim contract from the U.S. Department of Homeland Security.

“For the full year, we either met or exceeded our financial expectations as we recognized record revenues of $101.7 million, while driving record adjusted EBITDA of $3.6 million, and GAAP net income profitability. These results, coupled with the fact that we generated $5.9 million in cash from operations, indicate that we continue to successfully achieve our primary goal of simultaneously improving the top and bottom lines as we help large enterprises navigate the complexities of the mobile landscape. 

“Overall, 2019 was another successful year for WidePoint that gave us solid momentum going into 2020, in large part, due to the census and NASA NEST projects, which are now running at full speed. We’re fortunate to have a stable and profitable business, as well as a resilient customer base that should be able to weather the current dynamic market conditions relatively well. While no industry is immune to the effects of COVID-19, we serve predominantly large federal and commercial enterprises, for whom our solutions are a critical component to manage their mobile workforces. These characteristics coupled with our ongoing projects give us good visibility in the near-term and confidence in our ability to drive profitable growth over the long term.”


Conference Call

WidePoint management will hold a conference call today (March 24, 2020) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. 

WidePoint President and CEO Jin Kang, Chief Sales and Marketing Officer Jason Holloway, and Executive Vice President and CFO Kellie Kim will host the conference call, followed by a question and answer period.

U.S. dial-in number: 844-369-8770

International number: 862-298-0840

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 Gateway Investor Relations 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 7, 2020. 

Toll-free replay number: 877-481-4010

International replay number: 919-882-2331

Replay ID: 33479

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 digital billing 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.

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Safe Harbor Statement

The information contained in any materials that may be accessed above was, to the best of WidePoint Corporations’ knowledge, timely and accurate as of the date and/or dates indicated in such materials. However, the passage of time can render information stale, and you should not rely on the continued accuracy of any such materials. WidePoint Corporation has no responsibility to update any information contained in any such materials. In addition, you should refer to periodic reports filed by WidePoint Corporation with the Securities and Exchange Commission for information regarding the risks and uncertainties to which forward-looking statements made in such materials are subject. Such risks and uncertainties may cause WidePoint Corporation’s actual results to differ materially from those described in the forward-looking statements.

Investor Relations:

Gateway Investor Relations

Matt Glover or Charlie Schumacher

949-574-3860

WYY@gatewayir.com


WIDEPOINT CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS

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WIDEPOINT CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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