Usio, Inc. (NASDAQ:USIO) Q4 2022 Earnings Call Transcript

Operator: The next question comes from Michael Diana with Maxim Group. Please go ahead.

Michael Diana: I think Tom said that you don’t anticipate any further infrastructure spending? So, I assume that would be on the line item other expenses, which was about $15 million for the year. Does that imply that that number could actually be lower in 2023?

Louis Hoch: We’re expecting to be in that area. It’s certainly — there’s a possibility it could be a little bit lower.

Operator: The next question comes from Gary Prestopino with Barrington Research. Please go ahead.

Gary Prestopino: A couple of questions here. First of all, I would assume there was very little or negligible revenue from LA County and the MoviePass business this quarter.

Tom Jewell: That’s correct.

Gary Prestopino: Okay. Are you expecting to generate revenue? I’m sorry, go ahead.

Tom Jewell: LA County is a client across a couple of lines of business. So

Louis Hoch: You’re talking about print and mail and payment processing for LA County, right, Gary?

Gary Prestopino: Right. Yes. I’m just trying to get an idea of how this program is going to roll out next year, as well as with the MoviePass. And I’m just — I just want to ask if there was any positive revenues out of both of these programs in Q4?

Louis Hoch: Yes, there was, but it’s not at the level that we expect in Q1 and Q2 and the rest of this year.

Gary Prestopino: Okay. So

Tom Jewell: MoviePass is negligible in Q4, but we’ll start seeing it Q1, and then we’ll have a full three months in Q2 with reasonably sizable activity.

Gary Prestopino: Okay. And the same thing for LA County? I know it’s going across a whole bunch of different businesses, but can we — are we looking at a geometric ramp on revenues as we go into 2023?

Tom Jewell: LA County has been generating revenue on the prepaid side for two years. So, I don’t have really anything to add there and I’m not able to speak unfortunately to that.

Louis Hoch: So the output and then payment processing, February is when it really starts kicking in.

Gary Prestopino: Okay. That’s I guess what I was getting at. So February would be the output in the payment processing. Okay. And look, I apologize. I’m traveling, I don’t have the script in front of me for the earnings release. But, did you call out how much breakage you generated in this quarter from prepaid?

Louis Hoch: Yes, we didn’t separate that. No.

Gary Prestopino: Okay. But do you feel that you’ll be able to generate $10 million to $12 million next year — or this year, I’m sorry, 2023?

Louis Hoch: Yes.