Usio, Inc. (NASDAQ:USIO) Q2 2024 Earnings Conference Call August 14, 2024 4:30 PM ET

Company Participants

Paul Manley - Senior Vice President, Investor Relations
Greg Carter - Executive Vice President, Payment & Acceptance
Louis Hoch - Chairman, Chief Executive Officer

Conference Call Participants

Scott Buck - H.C. Wainwright

Operator

Hello, and welcome to the Usio Second Quarter Fiscal 2024 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note today's event is being recorded.

Now, I would like to turn the conference over to your host, Paul Manley. Please go ahead, sir.

Paul Manley

Thank you, operator, and thank you, everyone, for joining our call today. Welcome to Usio's Second Quarter Fiscal 2024 Conference Call. The earnings release, which we issued today after the market close is available on our website at usio.com under the Investor Relations tab.

On this call today are Louis Hoch, our Chairman and CEO; Greg Carter, Executive Vice President of Payment and Acceptance; Michael White, Senior Vice President and Chief Accounting Officer; Jerry Ofner, Head of Carding and newly named Chief Product Officer, Houston Frost, will be available during the Q&A.

Let me remind our listeners that certain statements made during the call today constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities and Litigation Act of 1995 as amended. Let me start off with some highlights from this afternoon's release. Momentum remained strong into the second quarter with total payment dollar processing volume growth accelerating to 24% as all of our electronic transaction processing businesses generating double-digit growth across all their key processing metrics. Once again, second quarter results were in line with our expectations.

Reflecting on our profit prioritization mandate, we reported positive GAAP net income and earnings per share for the quarter. Additionally, cash was up this quarter even after expending $105,000 to repurchase 65,519 shares of our stock at an average price of $1.60. In keeping with a practice being adopted in the payments industry, as noted in our press release, interest earned on merchant funds held for payment processing and reserves are now classified as revenue. This change recognizes that interest income is a key component of our company's core operations.

The interest earned on our corporate cash account continues to be classified as interest income below the line. So we are GAAP net income positive, generating cash to continue to invest in our growth initiatives, buying back our own stock and building a backlog, all great signs of a healthy thriving enterprise.