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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Tier Reit, Inc. | NYSE:TIER | NYSE | Common Stock |
| Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 28.88 | 0 | 01:00:00 |
From Jul 2019 to Jul 2024
Tier Technologies, Inc. (Nasdaq: TIER), a leading provider of electronic payment solutions for the biller direct market, today released results for the quarter and fiscal year ended September 30, 2011.
Results of Operations
Fourth Quarter Fiscal 2011 Results
For the quarter ended September 30, 2011, Tier reported revenues from Continuing Operations of $28.5 million, a 4.2% increase over the same quarter last year. Net loss from Continuing Operations was $3.6 million, or $0.21 per fully diluted share, compared to net loss from Continuing Operations of $4.2 million, or $0.23 per fully diluted share, for the same quarter last year. Continuing Operations include Electronic Payment Solutions, or EPS, and the VSA wind-down business. On a standalone basis, our EPS business reported quarterly revenues of $28.2 million, a 5.9% increase over the same quarter last year.
Fiscal Year 2011 Results
For the fiscal year ended September 30, 2011, Tier reported revenues from Continuing Operations of $130.2 million. Net loss from Continuing Operations was $7.4 million, or $0.43 per fully diluted share, compared to net loss from Continuing Operations of $5.9 million, or $0.33 per fully diluted share, for the same period last year. On a standalone basis, our EPS business reported annual revenues of $128.6 million, a 1.1% increase over fiscal year 2010. However, revenues for fiscal year 2011 for our VSA business showed a 49.2% decrease over fiscal year 2010, which resulted in flat revenues from Continuing Operations year-over-year.
Management’s Comments
“Fiscal 2011 was a challenging year, marked by major overhauls of our team, our technology direction, and our sales and marketing strategy,” said Alex. P. Hart, President and Chief Executive Officer, “but we now believe that we have the people, processes, and systems in place to produce a significantly better result in fiscal year 2012.”
“We see a long runway ahead of us,” Mr. Hart continued. “The tailwinds of recent legal, regulatory, and technological developments are beginning to counteract the ongoing headwinds of reduced income tax and property tax payments that have accompanied our current economic malaise. We are finally confident that we can begin providing a better sense for how we think the company is going to perform, and we understand that we cannot achieve our goals for the business without establishing a track record of performance that gives investors, clients, and our associates confidence that we are headed in the right direction.”
Liquidity
As of September 30, 2011, Tier had $39.8 million in cash and cash equivalents. Of the $39.8 million of cash, $14.7 million is funds settled to us but not yet distributed to clients and accrued discount fees, offset by $7.6 million of cash which we expect to receive within one to two days after the end of the quarter as settlements from credit card companies or banks. This makes the cash available to Tier for business purposes as of September 30, 2011 $32.7 million. The cash available to Tier at June 30, 2011 for business purposes was $33.8 million. Contributing to the decrease in available cash from June 30, 2011 were primarily hardware and software costs associated with our infrastructure and platform initiatives.
In July 2011, we entered into an $8.3 million contract to upgrade our core infrastructure, which includes the purchase of hardware, software and professional services. The project began in August 2011 and is scheduled to be completed in October 2012. As of November 30, 2011, we have purchased approximately $6.6 million in software and hardware related to this project.
Conference Call
Tier will host a conference call Tuesday, December 6, at 5:00 p.m. Eastern Time to discuss these results. To access the conference call, please dial (888) 995-9709 and provide pass code Q4FY2011. The conference call is also available live via the Internet at www.tier.com. Participants via the Web will need to provide conference ID # 9529539 and pass code Q4FY2011. A replay will be available at 10:00 a.m. Eastern Time on Wednesday, December 7, 2011 at www.tier.com or by calling (800) 234-8715 and entering conference ID # 9529539. The replay will be available until 11:45 p.m. Eastern Time on December 20, 2011.
About Tier Technologies, Inc.
Tier Technologies, Inc. is a leading provider of electronic payment solutions in the biller direct market. Headquartered in Reston, Virginia, the company provides enhanced electronic payment services that include multiple payment choices, payment channels, and bill payment products and services to over 4,700 clients in all 50 states and the District of Columbia. Tier serves clients in multiple markets including federal, state, and local governments, educational institutions, utilities and commercial clients through its subsidiary, Official Payments Corporation. For more information, see www.tier.com and www.OfficialPayments.com.
Forward looking statements
Statements made in this report that are not historical facts are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to future events or the Company’s future financial and/or operating performance and generally can be identified as such because the context of the statement includes words such as “may,” “will,” “intends,” “plans,” “believes,” “anticipates,” “expects,” “estimates,” “shows,” “predicts,” “potential,” “continue,” or “opportunity,” the negative of these words or words of similar import. The Company undertakes no obligation to update any such forward-looking statements. Each of these statements is made as of the date hereof based only on current information and expectations that are inherently subject to change and involve a number of risks and uncertainties. Actual events or results may differ materially from those projected in any of such statements due to various factors, including, but not limited to: general economic conditions, which affect the Company’s financial results in all our markets, which we refer to as “verticals,” particularly the federal vertical, the state and local vertical and property tax vertical; effectiveness and performance of our systems, payment processing platforms and operational infrastructure; our ability to grow EPS revenue while reducing our costs, including processor and interchange related costs; the timing, initiation, completion, renewal, extension or early termination of client or partner contracts or projects; our ability to execute on our sales and product strategy and realize revenues from our business development opportunities; the impact of regulatory requirements; and unanticipated claims as a result of project performance, including due to the failure of software providers, processors, vendors, partners, or subcontractors to satisfactorily perform and complete engagements. For a discussion of these and other factors which may cause our actual events or results to differ from those projected, please refer to our annual report on Form 10-K for the period ended September 30, 2011, filed with the Securities and Exchange Commission.
TIER TECHNOLOGIES, INC.
Consolidated Balance Sheets
(unaudited)
September 30, September 30,(in thousands)
2011 2010 ASSETS: Current assets: Cash and cash equivalents $ 39,760 $ 45,757 Investments in marketable securities — 8,249 Restricted investments — 1,311 Accounts receivable, net 4,467 4,883 Settlements receivable, net 7,648 8,356 Prepaid expenses and other current assets 2,368 1,407 Total current assets 54,243 69,963 Property, equipment and software, net 18,189 12,032 Goodwill 17,460 17,381 Other intangible assets, net 4,037 7,477 Restricted investments — 6,000 Other assets 238 172 Total assets $ 94,167 $ 113,025 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Accounts payable $ 1,057 $ 1,059 Settlements payable 9,812 10,716 Accrued compensation liabilities 2,721 4,261 Accrued discount fees 4,900 4,624 Other accrued liabilities 3,881 2,718 Deferred income 439 558 Total current liabilities 22,810 23,936 Other liabilities: Deferred rent 1,556 1,257 Other liabilities 28 596 Total other liabilities 1,584 1,853 Total liabilities 24,394 25,789 Commitments and contingencies Shareholders’ equity:Preferred stock, no par value; authorized shares: 4,579; no shares issued and outstanding
— —Common stock, $0.01 par value, and paid-in capital; shares authorized: 44,260; shares issued: 20,817 and 20,706; shares outstanding: 16,642 and 18,170
193,732 193,620 Treasury stock—at cost, 4,175 and 2,536 shares (31,383 ) (21,020 ) Accumulated other comprehensive loss — (1 ) Accumulated deficit (92,576 ) (85,363 ) Total shareholders’ equity 69,773 87,236 Total liabilities and shareholders’ equity $ 94,167 $ 113,025 TIER TECHNOLOGIES, INC. Consolidated Statements of Operations(unaudited)
Year ended September 30, (in thousands, except per share data) 2011 2010 2009 Revenues $ 130,170 $ 130,224 $ 128,246 Costs and expenses: Direct costs 100,764 98,328 95,594 General and administrative 22,766 25,199 25,529 Selling and marketing 6,940 6,355 6,708 Depreciation and amortization 7,314 6,711 6,569 Total costs and expenses 137,784 136,593 134,400 Loss from continuing operations before other income and income taxes (7,614 ) (6,369 ) (6,154 ) Other income: Interest income, net 82 414 754 Gain (loss) on investment — 31 (31 ) Gain on sale of assets — 6 — Total other income 82 451 723 Loss from continuing operations before income taxes (7,532 ) (5,918 ) (5,431 ) Income tax (benefit) provision (100 ) 30 40 Loss from continuing operations (7,432 ) (5,948 ) (5,471 ) Income (loss) from discontinued operations, net 219 (245 ) (6,035 ) Net loss $ (7,213 ) $ (6,193 ) $ (11,506 ) (Loss) earnings per share—Basic and diluted: From continuing operations $ (0.43 ) $ (0.33 ) $ (0.28 ) From discontinued operations $ 0.01 $ (0.01 ) $ (0.31 ) Loss per share—Basic and diluted $ (0.42 ) $ (0.34 ) $ (0.59 ) Weighted average common shares used in computing: Basic and diluted loss per share 17,112 18,153 19,438 TIER TECHNOLOGIES, INC. Consolidated Statements of Cash Flows(unaudited)
Year ended September 30, (In thousands) 2011 2010 2009 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (7,213 ) $ (6,193 ) $ (11,506 ) Less: Income (loss) from discontinued operations, net 219 (245 ) (6,035 ) Loss from continuing operations, net (7,432 ) (5,948 ) (5,471 ) Non-cash items included in net loss: Depreciation and amortization 7,314 6,712 6,642 Provision for doubtful accounts 363 1,304 417 Deferred rent 204 388 — Share-based compensation (217 ) 1,012 2,522 Capitalized software impairment loss 268 — — (Gain) loss on trading investments — (31 ) 31 Gain on sale of equipment — (10 ) — Other — 1 (19 ) Net effect of changes in assets and liabilities: Accounts and settlements receivable, net 761 839 (6,510 ) Prepaid expenses and other assets (1,034 ) 629 (89 ) Accounts and settlements payable and accrued liabilities (1,617 ) (2,681 ) 5,399 Income taxes receivable 7 84 1 Deferred income (119 ) (303 ) (929 ) Cash (used in) provided by operating activities from continuing operations (1,502 ) 1,996 1,994 Cash used in operating activities from discontinued operations (149 ) (855 ) (5,187 ) Cash (used in) provided by operating activities (1,651 ) 1,141 (3,193 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of available-for-sale securities (13,248 ) (23,587 ) (38,455 ) Sales and maturities of available-for-sale securities 21,826 19,886 36,371 Sales of trading securities — 31,200 125 Restricted investments matured, sold and released from restriction 6,983 — 500 Purchase of equipment and software (7,532 ) (1,681 ) (299 ) Investment in internally developed software (2,749 ) (3,563 ) (3,590 ) ChoicePay asset purchase net of cash acquired — — (6,927 ) Additions to goodwill—ChoicePay (79 ) (52 ) — Collection of note receivable — 527 71 Proceeds from sale of equipment — 10 — Cash provided by (used in) investing activities from continuing operations 5,201 22,740 (12,204 ) Cash provided by investing activities from discontinued operations 368 610 818 Cash provided by (used in) investing activities 5,569 23,350 (11,386 ) CASH FLOWS FROM FINANCING ACTIVITIES: Purchase of company stock (10,363 ) (749 ) (11,587 ) Net proceeds from issuance of common stock 482 82 422 Capital lease obligations and other financing arrangements (34 ) (36 ) (22 ) Cash used in financing activities (9,915 ) (703 ) (11,187 ) Net (decrease) increase in cash and cash equivalents (5,997 ) 23,788 (25,766 ) Cash and cash equivalents at beginning of period 45,757 21,969 47,735 Cash and cash equivalents at end of period $ 39,760 $ 45,757 $ 21,969 TIER TECHNOLOGIES, INC. Consolidated Statement of Operations—Continuing Operations(unaudited)
(in thousands) EPS VSA Total Fiscal year ended September 30, 2011: Revenues $ 128,644 $ 1,526 $ 130,170 Costs and expenses: Direct costs 100,508 256 100,764 General and administrative 22,761 5 22,766 Selling and marketing 6,940 — 6,940 Depreciation and amortization 7,314 — 7,314 Total costs and expenses 137,523 261 137,784(Loss) income from continuing operations before other income and income taxes
(8,879 ) 1,265 (7,614 ) Other income: Interest income, net 82 — 82 Total other income 82 — 82 (Loss) income from continuing operations before taxes (8,797 ) 1,265 (7,532 ) Income tax benefit (100 ) — (100 ) (Loss) income from continuing operations $ (8,697 ) $ 1,265 $ (7,432 ) (in thousands) EPS VSA Total Fiscal year ended September 30, 2010: Revenues $ 127,223 $ 3,001 $ 130,224 Costs and expenses: Direct costs 97,050 1,278 98,328 General and administrative 24,821 378 25,199 Selling and marketing 6,355 — 6,355 Depreciation and amortization 5,625 1,086 6,711 Total costs and expenses 133,851 2,742 136,593(Loss) income from continuing operations before other income and income taxes
(6,628 ) 259 (6,369 ) Other income: Interest income (expense) 414 — 414 Gain on investment 31 — 31 Gain on sale of asset 6 — 6 Total other income 451 — 451 (Loss) income from continuing operations before taxes (6,177 ) 259 (5,918 ) Income tax provision 30 — 30 (Loss) income from continuing operations $ (6,207 ) $ 259 $ (5,948 ) TIER TECHNOLOGIES, INC. Consolidated Statement of Operations—Continuing Operations(unaudited)
(in thousands) EPS VSA Total Fiscal year ended September 30, 2009: Revenues $ 123,233 $ 5,013 $ 128,246 Costs and expenses: Direct costs 93,434 2,160 95,594 General and administrative 24,509 1,020 25,529 Selling and marketing 6,697 11 6,708 Depreciation and amortization 4,885 1,684 6,569 Total costs and expenses 129,525 4,875 134,400(Loss) income from continuing operations before other income and income taxes
(6,292 ) 138 (6,154 ) Other income (expense): Interest income (expense) 754 — 754 Loss on investment (31 ) — (31 ) Total other income 723 — 723 (Loss) income from continuing operations before taxes (5,569 ) 138 (5,431 ) Income tax provision 40 — 40 (Loss) income from continuing operations $ (5,609 ) $ 138 $ (5,471 )
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