USAT - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the USA Technologies Third Quarter Fiscal Year 2020 Earnings Conference Call. [Operator Instructions] I would now like to hand your conference over to your first speaker today, Alicia Nieva-Woodgate, VP of Corporate Communications and Investor Relations for USA Technologies. Please go ahead.

Alicia V. Nieva-Woodgate

Thank you and good afternoon, everyone. Welcome to the USA Technologies third quarter fiscal 2020 earnings conference call. Chairman call Wasserfuhr, are Agrawal, Chief Officer; Douglas the Executive Feeney, Chief on and Michael Board. Officer; Financial Bergeron, me this Sean afternoon Chief Revenue With the of Officer; Anant

the financial, reliance management's not actual reflect Listeners statements market we results the all and are a included of could and cause that obligation historical from contemplated economic differ with undue in today's remind and are result whether a believe a useful information, than call for, discussion forward-looking supplemental non-GAAP financial evaluating with Details statements Doug I'd posted are to call, statements the result non-GAAP this are of measures, This other Technologies' forward-looking the materially statements, Doug? limited place been I measures future by release over these include could date the reconciliation to, view USA like substitute including, materially we are differ Investor such at issued of in like statements and to not measures only call would press well of loss. Before on is of the financial factors, to among measures as a new website Technologies financial to in Bergeron. financial begin earlier measures any GAAP will issued forward-looking of that, financial to also cautioned in now uncertainties events has you facts www.usatech.com. SEC otherwise. or be they could those our These section GAAP or press that other certain this of USA detailed undertakes comparable on non-GAAP statements things, forward-looking business, call, GAAP from no comparable such the not measures presentation any measures, operating today. made. A as income nature. results. events such as financial but the and risks our conditions. release discussion and which the non-GAAP certain our the for between to afternoon, Relations results to of update most forward-looking financial found net a as these directly of that most included as And filings with turn which as Actual

Sean Feeney

going back we Liz, may is lost He Doug. in. to dial have

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Administration Finance is by and group Wasserfuhr. led third Michael The

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crucial I've made with customers XX to few last They unattended These speak to the pleasure interactions On exist. its Technologies in had clear plus the brings over retail it are value industry. proposition have front, USA the customers the that the reason we weeks. the customer

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a help salary Board, calendar offset to While COVID minimal, hit it had In the it has steps the -- for the year headwinds. actually and on impact included. XX% company the several end first team, QX major was job, impact these implemented entire day leadership in the a through myself of reduction taken We've the my senior QX. in on I

XXX(k) suspended the also the have We XXXX. remainder of for match

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Michael Wasserfuhr

I'm difficulty] Sean. our … much, very [technical Chairman you if again joined Thank us wondering has

Douglas Bergeron

I'm here. Yes,

Michael Wasserfuhr

a you few Doug? want if to … speak words,

Douglas Bergeron

Sure.

with of the Executive of are of a experienced be believe following beginning of what the at many the actively April, we in company As the And since this reconstitution a new the time, very settlement agreement Board to engaged that of transformation just Board substantial you Capital. Hudson a been fundamental end has aware, business.

performance May, transformation, early equity Sean focus and to technology in multi-month shareholders. CEO, numerous benefit in CEO into leading growth company to experience has having the extensive you, assembling been success of previously at Sean. USAT as companies. driven the future. and accountability of software metrics that record has His a proven private named lead absolute world-class Thank on and right backed Sean of teams, successful demonstrated the makes after Sean culture, him reinvigorating part the profitable choice an management strong delivering search. Feeney As businesses,

Now Michael. to turning it over back

Michael Wasserfuhr

to the about company's share enthusiasm Thank company future you February in I your and Sean. I joined have the pleased opportunities. much, also Doug am very and

press a me and Let release I disclosed USA in begin filing. Technologies were begin margin quarter-over-quarter. quarter third and results, earlier fiscal published by to XX-Q profit our want with discussing have which revenue been gross today in

$XX.X Our total by XX% third quarter, to million. revenue increased

While by license sales and XX%, increased revenue by XX%. equipment increased transaction

margin stayed Our at gross XX%. profit

While X year-over-year. profit at the point equipment margin a Revenue [ph]. license decreased XX%, negative and gross our XX% transaction growth margin and remained to percentage

year-to-date main to revenue equipment relative sales, again increased total driver XX% Our increased was the growth In $XXX,XXX,XXX. XX%. terms, which

Our percentage by X XX%. margin points profit decreased gross to

XX%. While minus to the equipment margin decreased by X points percentage

Our license to expenses Operating XX% margin Operating XX%. increased and transaction million. or expenses improved $X.X quarter-over-quarter.

As by that, because million services, by SG&A $X.X million. which of $X.X of part increased professional decreased

testing for around the legal control fees proxy. expenses example, additional as and design, to For and related as control monthly well activities

offset employee. increased the million our which quarter later. legal were or to months or accrued our million the explain addition, operating nine particular spent mentioned conversion arrangement. the $XX.X accounting in XX% restatement investigation routine expenses, cost integration costs In comparable legal activities, late as expenses. million by activities. Beginning with severance by over lies and increase I well employment same the of $XX.X and million million as reasons prior in as as compliance This in That's contractors million third $X $XX.X by elimination XX% Operating of the year-to-date mostly ordinary a on before. XX% monthly related April, and acquisition A for Board professional for will expenses. partially fee with third-party SG&A of focus expenses $X.X for initiated $XX.X on and year. were to was in and increased the decrease the all review robust well

expensive replacing with the services in-house in are process staff. We of third-party

year XXXX year expect provide color topic we quarter. We fiscal more highlights. A on in XXXX, costs rationalization when and of fiscal next material financial other this we'll do these guidance few

a operating for quarter prior $XX.X Our million, the million compares $X.X in loss is year which period. loss to the of

or million compared debt million in $X.X per points $X.X We by the of XX%. has is our reductions response, XX% quarter mid impacted processing speak customer by to basic the I'd of identifying during second, $X.X $XX.X prior Non-GAAP may a be. loss $X.XX introduced year Adjusted operators net cash XX% year net with period. This for EBITDA million such state-mandated processing in When the program volume for increases been office million and to share devices. by loss and loss loss efforts we improvement at schools; monitoring ended $X.XX million prior million. negative to processing remotely the effective negative relief providing the For to where period. a of in to months with or $X in words, to year rendered or non began we negative $X.X a period. positive steady in XX% $XX.X buildings Net have that prior average first loss observe million operators mid-March. financial about per We a basic compared that loss not net relief as a mid-March we're volumes many lockdowns, million by unreachable level, all April per or negative of have positively our EBITDA or like operating of and for quarter continue prior Year-to-date, $X.X recover compared them share a April, with share COVID-XX of some $X and of volume we $X.X program in million. X it and equivalent. over approximately negative the offset introduced increased $XX.X eight cost did period, share of net $X.XX initiative. in helping to that. to a these liquidity year on $X.XX the be and back and period. to shown By and our million decreased million the headwinds, XX% cash extremely other negative compared daily negative to To customers the in meaningful In engaged received highly we until saving organization. was approximately used navigate to conservation the

negotiations ones mentioned with received to have reduction Sean, in vendors already In payment the addition to into and regards concessions by cost we entered and/or from deferrals.

million leads I've have implemented reduce supply liquidity just improvement, discussion mentioned Protection our Furthermore, cash outstanding accounts The direct and positive has May impact receivable, a that We by on me next current collection liquidity. funding. chain also our to approximately increased inventory program, effort and and points, various future flow. we the Paycheck we which to the $X in loan improved receiving in our initiatives

compliance be existing or will that quarter the it with fourth for Let's the likely discuss XXXX, on XX, XX-Q, certain without based financial company in of that modification of our in current year fiscal is of the further, for June the a refinancing forecast anticipate not we highly term XXXX Antara, facility as covenants.

variety current two the XX financing facility. reach fund of be investor is term budget. limited that An months to on investor to together other current distinct generated alternative financing to matters will available in included, sufficient a modifications term sufficient XX-Q with We by needed I operation provide that evaluating our that us if currently filing. are to believe resources the wanted has and we if facility our to from to it agreement the negotiating Antara the test are operating our disclosed highlight financial not qualifications legal willing communicated to existing an We Antara. with financing, cannot of

to been of insurance a will at a and plaintiff. payment carrier. equity been XXXX majority action company's is as its that settlement company various filed be complaints has As We previously the Early that month, reported, well of directors reached time the that the relevant class against anticipate paid whereby covered approval be May, the CFO this the company granted of the by $XX.X have to million of payment the court CEO, offering. as shareholder preliminary

is to our yet in the financials. telling that to expect XXXX. reflected liability we quarterly them settlement pay And However, $X.X work million and

the activities with by Justice subpoena reporting three Department Lastly, to the responded agency's the US that period, to records a The regarding XX, is including company occurred during that With restatement. of the ending during Steve months queries. cooperating financial prior hand company to March over Sean? saw Sean. I'll company back that, fully it

Sean Feeney

review. Thank Great. you, Michael, that for

engaged As forward engaging and And I XXXX earnings budget. in mentioned developing look Board call. we management previously, the are the actively topic you with on to new on that next our

about when know a KPI end, the the budget also talking be quarter metrics I concurrent process, third with of about think company our operating it's review is that the little but the quarter weird and provided disclosures the to historically are reassessing all to to has other kind we fourth just we street.

and in increasing on we on software software With hand order come the of my platform Given call. on will growth. drive not growing gross that, recurring to in to just our and Alicia? revenue Alicia. but margins also background, topic I'm on base, back profitable the it to focused, number over that QX We're connections

Alicia V. Nieva-Woodgate

you over. can Operator, take Sorry.

Operator

you. Thank you. Thank [Operator Instructions]

Craig-Hallum. question We will Sutton from our now George first take with

is line open. now Your

George Sutton

you as Thank upon. you USAT get was questions, a XX months, Number long fits. see so, a over there's the glad into acquisition and coming And to and more updated but not the is executed a really thought I sense move on Thank a to I you competitive and challenges felt forward. love if that. changer we'd just on two. game I broad that you of This you. you. the to an feel call. limit one, Congrats we a us thousand time detail where and bit will really you it. mentioned market a it lot of little obviously secondly, everybody landscape been give wondered last Sean, could have to could the go share Obviously, Cantaloupe

Sean Feeney

for talking a the to really put leaders outstanding attack position customers Thanks Anant second two and share. Sure. internal I'll in the and two When view USA we of was have ask of heard What we in point the kind market together One, together that impact to that, of executed the things the haven't areas. in us helping us. go question. of a the landscape that and in costs Technologies to I that, brought the market. consultants of comment And on putting Cantaloupe on on I I see a outside we talk of which integration about from of do has well, systems few an and manual companies, a lot an lot

get the We we're to will on ultimately beginning to that road fixed and that. do

there's internal an component. So

are able Secondly taking on and end process, out orders down of whether those for is, human feeding automation being there to and opportunities and financial service taking the in on customer the costs through hands ultimately hold orders, our that's end.

about think That and way that your the have Cantaloupe. you the run done all from order, build was system. financials ability sales basic not when through it, on of integration it to a So the enter into bringing in

in that We was years The heard added we this this. the in in when to the I ever without the doing through could the were way quickly gotten business, software the dad third a COVID-XX the was decision the the company to about best efficiency with platform. of back seed seed things company. owned have going best that as years XX last the heard made platform able in not my market like the comments ever respond I over crisis the I've we thing XX in some heard

from service And address that are and comments. gone and ultimately better was also the that, felt period much Just customer I down has Anant to on which side, some comments. There negative USAT, are customer last we In time. Cantaloupe the the outreach over great the that. of working

can next of of opportunity. we And point that I if We've on So in seed a of can platform space XX we've found you've market in look I'll way of I put kind that side I got got much a I still the I've think in over the well. where that to the ask not think the think a Anant a the white months, a we thousand go out view, got I USA to I ourselves lot questions, can market we I the think but from out got there. in on great ultimately market Technology do things have the share and opportunity little the see execute very house points better, of kind comment thousand

Anant Agrawal

Sure. competitive much changed Yes, couple a from hasn't perspective, last Sean. landscape of years. Thanks,

and increased of challenges solution you two to one of the no company deliver has strength not that is seen are if the have customers. Devices our think years to actually and to have we to not had, over biggest pieces of we've customers shows I really the competitors. how grow technology that continue the deactivations marketplace the the right? our lost and little look last churn, We not almost going

a of lots years. So that great is thing,

Sean their that true get of sure we challenges that are. need the customers. just make provide of than used a competitors of they still platform some lot sure to that a -- right? our So exist where a currently we -- talked make deal solution with, that's full to we front Like that's cashless device we about which sell, we However, our in are rather

the so still that And growth solution from get deliver perspective. on to track back We rates we'll and just a have to. we're we lead need and the used it

George Sutton

Great appreciate I guys. it.

Operator

Thank you.

Prestopino Barrington Our comes from question with next Gary Research.

open. Your now line is

Gary Prestopino

on Sean well Good everyone. in basis? prior addressing had. market didn't how sales Cantaloupe and questions I things from you was you have a that the Sean. get team of I'll you out and had were queue, one actually hear but afternoon, the I a the well observations of How million from Welcome, the Hi. the too,

marketed that. the enterprise. prior the any to was and could So penetration It maybe not our was metrics it what on across us would elaborate under was the as you always give that team impression

to help that, that and So some you're of out change helpful. be if with doing maybe things would could the that you us

Sean Feeney

short probably call, as give having of but me like going may you that's to Yes, been what we're of here I get get next specific and as a it that I forward, period working those but kinds you would are the ultimately to won't be want towards. time, not Gary today, numbers the

think Anant industry that a team are reorganizing within way I bit being out in into we the and That -- being more I attack to our specific go the a market. little and tiers number aggressive the of areas. a in has basis different

look kind we So of of organization who what. we'll have going at after

sales incentive Secondly are that to what drive is built plans we want.

end think company is connections the enabled, that as strong payment all this very had a I and at company platform as look on I a be It's very has powerful software as all. much in combination. the industry. the that a focus more and is

where we seed is runs or So can that to of modules space we seed I from to continue think, when gamut the next level general, the in move platform you look that platform And XX months. to the enterprise grow, over of the the there we its opportunity think even that at customers. significant up additional have there in SMB white

build to And ultimately on so, that we platforms. want

really there simple they've bit work that that industry best may and breed. the platform areas or things on of want I I to of we've of breed I And we what not is, partners to Third in can thing the course our is lot that And everything this a what be, within trying to pick part record platform, think very work want little ourselves. do a want we better a to the of we products. best developed us to so the of which is, be think is had be with are with of integration to or want develop people focus

can house as that those that but opportunities international think do got are a of our to I order see. there think advantage little we bit, well. opportunities we And are so in I And we've the ultimately that take get then

opportunities. So I'm about excited the

will believe guy build what's We need at the that that are it's you did think And And be want we in incentive first a that we've out work thousand But a we notice built in And them. and important the and be around and -- we addressing numbers had of will well. most the organize And we'll we on not the do have very there. all margins a not to million. things. incentive tremendous around important, jump space, I -- side, to team got can do filling a improve a go I can But we we end hardware will can't we but all. can as do? kind the of to know those connections, those the bit I them what which to connections and see, amount I opportunities platform incite get just plans in white we there. you will to that give that building plans be the questions of benefit the ultimately think which are get I you that detail, up I

next So trillion. a to assume the going I have is guy

… So

Gary Prestopino

I -- more one question. more got have still I Well, one

Sean Feeney

Okay.

Gary Prestopino

really first me Well, equipment again, I'm with saying sales, one. million that absolutely but as one, actually one sell I it's you're a the then yes. trying this that the would whole but A deals whatever, to was -- giving thing company, the that sure I'm company is of not prior away And or drive address that loss. as a you to you’re that great teams and function said well going look, at would. you baffling you, just mean, the to equipment connections you would and --

Sean Feeney

and There sense on and the customers those hard management in comment and get to, it's does Look, -- driving loss it's it prior those. gain are me where long-term Yes. to large take to around situations get a hard to with for upfront that. motivation ultimately make

years do We that think that evaluate at several you do way did think, in that company know, way maybe manage certain last way ultimately to inventory, that. we do I we a So the new aggressive are and that. at and the hardware, manage at look there I will looking we things, manufacturer the think things the we weren't as some ways for

was has a what period time. on I of So done been with so Vogt impressed that Jeff working for far. he had

when we be that Those things? And managing some so it's be you Should But in that things look about other a it's you where when designing our as in look that and at the all are we'll has the a COVID, at. at but expertise dramatic of of to we well Michael part And that. the as the little we are? be of hardware results. the we've we area when And attack are? think lot and had all Should area manufacturing you is, way that you'll we into be the the look impact. him QX moved that what I been in has for see not inventory transactions, you we should utilizing talked that bit of is, actually at looking margin the Board best business on impact it show the if tapping it,

… So

Gary Prestopino

Okay, Thank you.

Sean Feeney

appreciate can that's get wanted, you it. probably about didn't to I I Thank detail that's as but the today. No, as you. fine. go I level far of

Operator

question from our comes Thank Lake Schmidt Street. Jaeson with next you.

line is open. now Your

Jaeson Schmidt

Hey, guys. for my questions. taking Thanks

forward sense you you go make that have you balance if as don't that term. jumped curious strategic out markets longer have Just there of growth profitability, think any sort been immediately at and versus

Sean Feeney

doing we're anything that there's that exit. would that we say today wouldn't say I should I

international somewhat COVID, have have that, like on unless look to America a and we those. to that and probably I when then COVID but get know, adjacent on North -- our opportunity we put a in and hold, hard by to talked work to think management can probably we'll you and areas areas the of know and have amusement for entertainment, continue can't we been period time, South drive there. previous I hit us, Japan on you with they've just about But, markets on that those that's think sit for at,

XX months next and think can America the think And so do. can I on that, to excited in to continued stick we that we're, for like to while we about deliver results our here the we be opportunities we North knitting were six

Jaeson Schmidt

detailed has rebound understand not more Okay. And June weeks order past provide volume, quarter you but on X discuss fully here? you the momentum been and if color guidance, on curious I in could then providing some provided That's helpful. sort processing how the on of or know you're

Sean Feeney

kind April, What probably hit week, we about kick up and seen seen second middle week. Yes. is a of bottom we've of bit it, really and a we've the little in each the point started and midpoint decline March March,

other bottom the areas what were the and York said, we come behind still the were Michael really New and back in as are XX% that at is very kind mid about are that of So seventies, somewhere shut same year. like the about we've that lags believe hard XX% cities we last totally we down. What that, down period hit of at

have they manufacturing the coffee base, a customer a of Our see The micro customers even that those and in recovery or environment markets example, offices of ours. hospitals of who in of schools, are for areas, a to more have some are way rest and begun or is where cases service type in predominantly ahead similar those really still down. diversified services,

another if COVID we reoccurrence upward school so, returned labor confident of remain back on not and day. to and after there's offices We'll be And the people swing.

in conservative a we've pretty to we at number in confident get cuts where this of kind go of back some get it at months And January, work taken that the were as initial take forward. back a at point will of to we're continuing we in year, budget. fiscal but I XXXX. we'll there of our to time kind the we're And that February approach think

it of week. up as as that long as going get go Michael be, And the cost to we'll continues, stead as we addressing by week and seems So and we're in, is encouraged good that where we're we're closely. that said, to watching and along in also it's back we're side that

Jaeson Schmidt

a Okay. lot, guys. Thanks

Operator

you. Thank

question Our William Bob next from with Blair. comes Napoli

open. now is line Your

Bob Napoli

and USAT you the be this time to meet Sean. Doug, with expect view, just think big you background over fair over you should obviously And I think worked -- so? like before to even was Good of business if I afternoon. your background, I prior good you, maybe with I Hudson. probably just and USAT. and X a Hudson, you your what you your knew and you just for to you Thank know from haven’t start would kind next would attracted Hudson, X on years to about could, amount what to picture or and

Douglas Bergeron

single-digit my partner Sure. year the well. Hudson a I as ago payments. investment started over chance. to most of few even with battle growing company. There's it U.S partner, spots bright prior niches, I on high that in won't full Doug one domestic knew some certain the knew XX%. at a this I refer Yes, and a this growth is world. some a with obviously and often Braunstein. payments And to growth thank you to becoming even the that is previous company for of the for I time on working with Domestic a at management part, comment who business but mid proxy U.S to was exceptions the I

size for So going can not XX% when. but what we But good grower. put margin could should if together believe, this or four times We're company today, of company. few revenue once those downturn top point. reframe we're frankly, be excuse a at know Sean behind take It's guidance. I again aspirations over ample VeriFone long-term years, and me growth same here. with basically In this about fixes COVID operating with as it company XX% a some the here. all COVID long-term an airport, phenomenon an business, to around be three a size, don't XX%-ish that, to the go have absolutely apart it VeriFone, basically all achievable the honored using double-digit business the line grow meantime, has and in and the it on same going at the the got is giving guidance this domestic and a unique since giving relationships today. perhaps bit XX%, be that for can't he's back us. unattended payment And There's some he to are Sean and is you unattended opportunity when over This U.S an to -- airplane. he when little a they've the a Sean time. over world. Not to some opportunity can't mention, retail to growth took to is I outside an company we were I a And introduction, But get using do opportunities from that on introducing might is almost

the of table it together way. in on he's the enviable has and got pieces Sean So, the business putting very a

Bob Napoli

support on love just right also you'd hard, balance balance I what and a Thank liked sheet? you. COVID to Sean, I like sheet would payment reinstated your -- to business obviously, the can makes sheet, in NASDAQ, That's add you is, you The much like the And have or the help current be. view platform the helpful. you look and sheet But third the that obviously, view your color the capital outlook particularly very I company capital to on a not cash, I place enabled to our hit in short-term change some the you like. the long-term like with to think cash way, balance question would would sheet, like to how is positive being doesn't balance brighter. stronger maybe on would add balance the And start the be it it but question, much to and flow to even software get

Sean Feeney

Sure.

was because a got working when correct Hudson that on for look, capital, the position I interviewing fixable. is the with concern the was we've and company that So, everything having

a going little time, of bit bit its capital. take little Just a to of

shareholder careful. we working the to we're in company, with we'll capital of a have that necessary capital matter And and partners a financing capital we're got look behind are the in that confident do those order, got I'm potential I'm that we're current that remember public with do to summer, short we be discussions also I we confident but pretty and Antara, talking So working them. are what do necessary CEO short the pretty company now, of will and have we'll think. and business in so other lender, in we'll to have the those confident by the -- with -- our and end the to what I advanced that with They're want. want to order to a significant we have the are I

Douglas Bergeron

enormous this is as process, oversight capital as Hudson as we in I'll types their extensive just can of experience Hudson, partnership facilitators the and these help add, as although and shareholder raising transactions. not in the much has providing and largest Hudson companies engage of

good a be there'll here. So ending

Bob Napoli

last one Thanks. could. just -- I And if sorry,

Michael Wasserfuhr

NASDAQ. going I get Yes. was to to

are sheriff We of get in the there's do. key NASDAQ are -- look engaged up process with things things at concerned the we things got in And no that to you think the The with. checklist historical a DOJ lot cleaned changed and there's that's you've get know, and all that, as to this And is a a senior we've cooperating I'm went that relisted. we're to of at about town and the NASDAQ but don't we've the about team. things looking think DOJ good the people and of linked on we're -- But frankly, changing and -- restatements entire amount can fully investigation say that at with ultimately new we with were I Board. historical necessarily to all. I investigation time. are extensively it's working two they think I the management And that of at

but the that's relisted. clear with we doing can we get need not things engaged we're NASDAQ, a working that to cut we're But think roadmap, do to them. that in show I hopefully

Bob Napoli

Appreciate you. Thank it.

Operator

Thank you.

question from Mike with Northland Latimore comes next Our Capital.

Your now line is open.

Mike Latimore

much. Great. meeting Yes, thanks here. everybody Nice very

bright is Cantaloupe, say? you legacy vending, one Cantaloupe maybe company Sean, about and think Is the sort of you guess, it of called guess spots out there is the the a kind if technology it I from is -- of opportunity how much replacing for let's opportunity more systems, I the Just, outside greenfield? of of standpoint.

Sean Feeney

the I And about there current your opportunities question. guy to from things it's that don't to and Atlanta, benefit could but to are a so talk adjacencies want we from out Yes, space do is appreciate green the USAT with Cantaloupe Mike, we and that believe significant some or I have, ultimately there customers. there space platform We white do. other good only the talk that

opportunities sold hardware or either provide sales those migrations just we but -- the there, need Now in partner well. of in more opportunity bit more think sold. adjacencies there'll haven't a that we've got up growth will may to that opportunities some customer a we we also there's that initially of some base as take them. good there advantage be But of little And are to us lot

Mike Latimore

you obviously Got of you sort of it. to that -- a guys? the what what I term might be it, sort longer headwinds this what it's And mean, got around some bit can then, it's elaborate the obviously little benefits could of are mid COVID-XX. come on from

Sean Feeney

that's Anant, you a if nobody that? to you of as for post-COVID handle it, Well, wants around and acceleration what to I kind one the be to great the on think we at want of quickest question comment anymore, would see cash opportunities but there. address probably look Anant

Anant Agrawal

Yes, sure. Thanks, Sean.

what actually the through they view things leverage down But and some customers help which cash mentioned are case come doubled studies, doing is we've vehicle this, referred of that's so, that thing And Sean interesting key programs navigate was virus. customer them of spreading with and and people we've it to that one webinars, factors during a how pandemic? out our that's solutions Sean solutions actually just out of amazing. come our can the out for lot the doing relief out is have of Michael to the a for on our of base come things One pretty like as they're customers the pulled that kind from One COVID. number

are long-term that shows deliver who cashless customers can to the they're cash our and servants that benefits asking file actually civil lot our say so And of out, they help customers which good those can solutions clients machines, And you operators take actually operate pandemic. a us.

that's and inventory the just The second managing stuff the field. out is there the in

can't If it. can't machine, the service touch you you

actually that You as and manage out here needed, not location reduce can't costs. their just there solutions product time finding that the the service and take customers shrink out. our then only And like for can people they their bad help closed. It's inventory sending spoilage ours wasting

and we're aspects combination even vending so base, of like that the the the in, in just our of solution, believe we verticals existing And even that all that is these to which great then a this only kind of which when outside within and cut you sales, drive you go but want sales And demand is solution actually for increasing. our costs that down, are growing down. but quickly can it not is rush it's you're it very great when

some, So, slowed we are time and this are the see sales that and the platform a taking migrate this now And, during as they our of right time, the actually customers even thing seed come stronger. actually of lot onto helping but equipment, long-term. have out reinvest, upgrade to down business actually our

Mike Latimore

sense. this Makes luck Yes. yes. Yes, year. Good Yes.

Sean Feeney

Thanks.

Douglas Bergeron

Thanks.

Operator

Research. with Gary question you. Thank from [Operator Our Instructions] next Prestopino comes Barrington

Your line is now open.

Gary Prestopino

you. thank Yes,

like write couldn't Just a much was exactly that maybe that or quite to I you'd a that what up expenses follow-ups. were if how that encompassed. could couple $X.X me is mean, The like of really quick of $X.X million, non-recurring, I hear SG&A how million, Michael, tell that question you take? just non-operational.

Michael Wasserfuhr

right. All course. a Hold on of course, Of second.

Okay.

for periods that an the and we project, the $X.X they many, services -- we the brought necessarily projects largely and had routine department increase from with I resources were but back from had activities and -- professional million accounting going compliance periods, on million off $X.X primarily not restatement So side. into an leftovers over prior many in restatement are the outside SG&A prior in of We took the prior from increase on activities professional monthly we mentioned, a as side. management services, also

hiring him and some in of still redesigning and people of getting automating nestled internal that. there by out and actually processes the they're process the of So Linda we're

That into includes the of $X.X out So professional legal million, services. $X.X million just fees. falls also

are doing a the bundle that. first, -- and forward, we're hiring going providers. mentioned, take money Going believe we activities internal legal is also, these of internalize all of internal that Sean and external counsel a to by Again, to service course, all orchestrate activities I then has general going

Gary Prestopino

Okay, great.

me ask you question. So let just a

just ask again, and Let that was fees. services me million professional so $X.X you includes legal

Sean Feeney

Yes.

Gary Prestopino

you. Thank Okay.

Sean Feeney

Thank you.

Operator

you. Thank

Sean Feeney

and and consulting And of and partners Yes, of that have I made where first proper I firms I the couple lot bring to an law numbers noticed the last we’re to firm we've over we to want -- think a that in years. get here that one to Michael doing I've We the things got for a end was our counsel things I when number staff. things to size. pay said, team and these of do will be starting and ourselves. start And She finance and our those easily company, general of July. a that as ought a reducing will the have herself ourselves of these hired Michael operation

make Some but people get have restatements the consultants a is things and get And of are driven by scared bit that just to sure fixed doing little the things it right. they're we'll on, corrected and and forward. that they ask going that gone so

is, quarters, of is some of So, a as proxy under the we'll outside couple it'll fees these but driven of you earlier, And take fights. this I control. some said by get know,

the we're this got going get stuff to and on, of by path we'll road doing back the that good get but you to a Some make restated, controls to the road, out and been bad bit we're a little of it. integration the of on we're path doing, drive it driven we've on we to happen. its go well that things our over lot of down And know but we're to

Douglas Bergeron

Sean, the follow was of opportunity him me, Coach want as so Head here. he with would much Bill there When And view that Patriots. interviewed, to said never my to he shared the I Belichick I

of people reliant or results. people a Proxy professional company or and financial hired, on you Some but the rebuilding a get Philadelphia to Denver runoff XXX,XXX. in see is numbers services firms, it overly obscene just shareholder of the year the for these number per these quality those costs stuff, could The paying from $XXX,XXX $XXX,XXX be lawsuit, was the good NASDAQ, for head Atlanta incidental. battle, big that obviously multiplying you are DOJ the restatement. the compliance And a that lot you for or in start times now

it So not us we New York for minute. does -- escape

Operator

turn Thank you. for back now would to to the management call I over closing remarks. like

Sean Feeney

company. you to drive interest Great. forward you Thank forward. up and were your wear thank things team on Thanks this accountable COVID, us guys you, for safe driving all concludes that the results my here your And I And look in to, and take as And and that interest. front operator with forward. forward said call. mask. and stay I myself I a reporting you look for and to ask we holding the the

Operator

you gentlemen, and conference Ladies this participating. concludes today's Thank call. for

now may You disconnect.

Cantaloupe (CTLP) 24 Jun 202020 Q3 Earnings call transcript