Payment Data Systems, Inc. (NASDAQ:PYDS), an integrated payment
solutions provider, today announced financial results for the third
quarter ended September 30, 2016.
Third Quarter 2016 Financial and Operating
Summary
- Revenues were $3.1 million
- Gross margin was $965,485, or 31% of revenues
- Operating loss was $574,897
- Adjusted EBITDA loss1 was $129,859
- Net loss was $565,957, or $0.07 per share
- Total dollars processed for the third quarter of 2016 exceeded
$759 million, compared to $865 million in the third quarter of
2015
- Third quarter credit card transaction processing volume
decreased 2% and credit card dollars processed decreased 9%
compared with the same period in 2015
- ACH (Electronic check) transaction volumes decreased 15%;
returned check transactions processed decreased 24% compared to the
third quarter of 2015
1See Reconciliation of GAAP Operating Income to
Adjusted EBITDA in the accompanying financial tables
Management Commentary
“Overall transaction volumes and dollars processes
increased in the third quarter compared to the previous quarter,
driving sequential growth in revenues and gross margin,” said Louis
Hoch, President and CEO, Payment Data Systems, Inc. “Given
the year-over-year decline in ACH transaction volumes that we have
experienced this year, we accelerated our marketing and promotional
strategies during the third quarter and are pleased to see these
efforts paying off. We are continuing to build solid traction
through product innovations that support and enhance customer
operations, such as the use of our prepaid card technology to
support real-time provisioning to mobile wallets like Apple Pay®
and instantaneous issuance and delivery of gift and incentive
cards. Our new PIN-less debit product, that allows merchants
to debit and credit accounts in real-time, was rolled out in
October and we are very pleased with the traction we are
receiving. We expect it to become a significant offering for
our Company.”
Financial Results
Three Months Ended September 30,
2016
Revenues of $3.1 million decreased 14% compared to
$3.6 million for the third quarter of 2015, due to a decrease in
the volume of ACH transactions and returned checks processed.
Gross margin was $965,485, or 31% of revenues,
compared to $1.2 million, or 34% of revenues, in the corresponding
prior-year period.
Operating loss was $574,897, compared to operating
income of $23,332 in the third quarter a year ago, reflecting
higher selling, general and administrative expenses to support the
Company’s growth, as well as higher amortization expense related to
the assets acquired from Akimbo in December 2014.
Adjusted EBITDA loss was $129,859 compared to
adjusted EBITDA of $589,161 in the corresponding prior-year
period. Please see a reconciliation of Adjusted EBITDA loss
to operating income in the accompanying financial tables.
Net loss was $565,957, or $0.07 per share, compared
to net income of $117,780, or $0.01 per diluted share in the third
quarter of 2015.
Balance Sheet
At September 30, 2016, the Company had $4.3 million
of cash and cash equivalents.
About Non-GAAP Financial
Measures
This press release includes non-GAAP financial
measures, EBITDA and adjusted EBITDA, as defined in Regulation G of
the Securities and Exchange Act of 1934, as amended. The Company
reports its financial results in compliance with GAAP, but believes
that also discussing non-GAAP measures provides investors with
financial measures it uses in the management of its business. The
Company defines EBITDA as operating income (loss), before interest,
taxes, depreciation and amortization of intangibles. The Company
defines adjusted EBITDA as EBITDA, as defined above, plus non-cash
stock option costs and certain non-recurring items, such as
acquisitions. These measures may not be comparable to similarly
titled measures reported by other companies. Management uses EBITDA
and adjusted EBITDA as indicators of the Company's operating
performance and ability to fund acquisitions, capital expenditures
and other investments and, in the absence of refinancing options,
to repay debt obligations.
Management believes EBITDA and adjusted EBITDA are
helpful to investors in evaluating the Company's operating
performance because non-cash costs and other items that management
believes are not indicative of its results of operations are
excluded. EBITDA and adjusted EBITDA are supplemental non-GAAP
measures, which have limitations as an analytical tool. Non-GAAP
financial measures should not be considered as a substitute for, or
superior to, measures of financial performance prepared in
accordance with GAAP. Non-GAAP financial measures do not reflect a
comprehensive system of accounting, may differ from GAAP measures
with the same names, and may differ from non-GAAP financial
measures with the same or similar names that are used by other
companies. For a description of our use of EBITDA and adjusted
EBITDA, and a reconciliation of EBITDA and adjusted EBITDA to
operating income (loss), see the section of this press release
titled "Non-GAAP Reconciliation."
Conference Call and Webcast
Payment Data Systems, Inc.’s management will host a
conference call with a live webcast today at 5:00 p.m. Eastern Time
to provide a business update.
Individuals interested in dialing in to the
conference call may do so by dialing (844) 883-3890 for U.S.
participants or (412) 317-9246 for participants outside of the
U.S., referencing “Payment Data Systems” to the operator. If
you would like to submit a question via email in advance please
contact Kristen
Papke at kpapke@finprofiles.com.
A replay of the call will be available through
Monday, November 28, 2016 by dialing (877) 344-7529 (U.S.) or (412)
317-0088 (international), using the passcode 10094994.
About Payment Data Systems,
Inc.
Payment Data Systems (NASDAQ:PYDS), a leading
integrated payment solutions provider, offers a wide range of
payment solutions to merchants, billers, banks, service bureaus,
and card issuers. The Company operates credit, debit/prepaid and
ACH payment processing platforms to deliver convenient, world-class
payment solutions and service to their clients. The strength of the
Company lies in its ability to provide tailored solutions for card
issuance, payment acceptance, and bill payments as well as its
unique technology in the prepaid sector. Payment Data
is headquartered in San Antonio, Texas, and has offices in New
York, New York; and Long Beach, California.
For additional information please visit
www.paymentdata.com. Websites: www.akimbocard.com and
www.ficentive.com. Find us on Facebook®.
FORWARD-LOOKING STATEMENTS
DISCLAIMER
Except for the historical information contained
herein, the matters discussed in this release include certain
forward-looking statements, which are intended to be covered by
safe harbors. Those statements include, but may not be limited to,
all statements regarding our management’s intent, belief and
expectations, such as statements concerning our future and our
operating and growth strategy. Investors are cautioned that all
forward-looking statements involve risks and uncertainties
including, without limitation, the factors detailed from time to
time in our filings with the Securities and Exchange Commission.
One or more of these factors have affected, and in the future could
affect our businesses and financial results in the future and could
cause actual results to differ materially from plans and
projections. We believe that the assumptions underlying the
forward-looking statements included in this release will prove to
be accurate. In light of the significant uncertainties inherent in
the forward-looking statements included herein, the inclusion of
such information should not be regarded as a representation by us
or any other person that our objectives and plans will be achieved.
All forward-looking statements made in this release are based on
information presently available to our management. We assume no
obligation to update any forward-looking statements, except as
required by law.
(Financial Tables Follow)
PAYMENT DATA SYSTEMS, INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
|
September 30, 2016 |
|
December 31, 2015 |
|
|
(Unaudited) |
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
4,293,590 |
|
|
$ |
4,059,606 |
|
Accounts receivable, net |
|
|
1,001,206 |
|
|
|
1,135,384 |
|
Settlement processing assets |
|
|
41,115,815 |
|
|
|
39,797,232 |
|
Prepaid expenses and other |
|
|
178,944 |
|
|
|
149,118 |
|
Current assets before restricted
cash |
|
|
46,589,555 |
|
|
|
45,141,340 |
|
Restricted cash |
|
|
18,110,544 |
|
|
|
17,972,065 |
|
Total current assets |
|
|
64,700,099 |
|
|
|
63,113,405 |
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
2,675,836 |
|
|
|
3,077,421 |
|
|
|
|
|
|
|
|
|
|
Other assets: |
|
|
|
|
|
|
|
|
Intangibles, net |
|
|
213,682 |
|
|
|
341,816 |
|
Deferred tax asset |
|
|
1,621,000 |
|
|
|
1,621,000 |
|
Note receivable |
|
|
200,000 |
|
|
|
- |
|
Other assets |
|
|
199,746 |
|
|
|
202,849 |
|
Total other assets |
|
|
2,234,428 |
|
|
|
2,165,665 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
69,610,363 |
|
|
$ |
68,356,491 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
166,959 |
|
|
$ |
143,180 |
|
Accrued expenses |
|
|
810,799 |
|
|
|
1,328,738 |
|
Settlement processing
obligations |
|
|
41,115,815 |
|
|
|
39,797,232 |
|
Current liabilities
before restricted cash |
|
|
42,093,573 |
|
|
|
41,269,150 |
|
Restricted cash |
|
|
18,110,544 |
|
|
|
17,972,065 |
|
Total current liabilities |
|
|
60,204,117 |
|
|
|
59,241,215 |
|
|
|
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value,
10,000,000 shares authorized; -0- shares outstanding at September
30, 2016 (unaudited) and December 31, 2015 |
|
|
- |
|
|
|
- |
|
Common stock, $0.001 par value,
200,000,000 shares authorized; 12,592,591 and 12,379,537 issued,
and 12,242,959 and 12,029,905 outstanding at September 30, 2016
(unaudited) and December 31, 2015, respectively |
|
|
185,751 |
|
|
|
185,533 |
|
Additional paid-in capital |
|
|
64,859,920 |
|
|
|
64,302,498 |
|
Treasury stock, at cost; 349,632
and 349,632 shares |
|
|
(286,393 |
) |
|
|
(286,394 |
) |
Deferred compensation |
|
|
(5,344,769 |
) |
|
|
(6,031,362 |
) |
Accumulated deficit |
|
|
(50,008,263 |
) |
|
|
(49,054,999 |
) |
Total stockholders’ equity |
|
|
9,406,246 |
|
|
|
9,115,276 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity |
|
$ |
69,610,363 |
|
|
$ |
68,356,491 |
|
|
|
|
|
|
|
|
|
|
See notes to interim
consolidated financial statements. |
|
PAYMENT DATA SYSTEMS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(UNAUDITED) |
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
3,067,335 |
|
|
$ |
3,550,463 |
|
|
$ |
9,186,027 |
|
|
$ |
10,717,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
|
2,101,850 |
|
|
|
2,336,270 |
|
|
|
6,291,072 |
|
|
|
7,138,450 |
|
Selling, general and
administrative: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
264,154 |
|
|
|
338,488 |
|
|
|
835,590 |
|
|
|
965,544 |
|
Cancellation of stock-based
compensation |
|
|
(44,875 |
) |
|
|
- |
|
|
|
(44,875 |
) |
|
|
(163,936 |
) |
Other expenses |
|
|
1,095,344 |
|
|
|
758,573 |
|
|
|
2,505,233 |
|
|
|
1,695,415 |
|
Depreciation and amortization |
|
|
225,759 |
|
|
|
93,800 |
|
|
|
675,536 |
|
|
|
272,320 |
|
Total operating
expenses |
|
|
3,642,232 |
|
|
|
3,527,131 |
|
|
|
10,262,556 |
|
|
|
9,907,793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) |
|
|
(574,897 |
) |
|
|
23,332 |
|
|
|
(1,076,530 |
) |
|
|
809,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income and
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
25,754 |
|
|
|
20,097 |
|
|
|
72,739 |
|
|
|
58,455 |
|
Other income (expense) |
|
|
(480 |
) |
|
|
90,600 |
|
|
|
97,199 |
|
|
|
58,190 |
|
Total other income and
(expense), net |
|
|
25,274 |
|
|
|
110,697 |
|
|
|
169,938 |
|
|
|
116,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes |
|
|
(549,623 |
) |
|
|
134,029 |
|
|
|
(906,592 |
) |
|
|
926,531 |
|
Income taxes |
|
|
16,334 |
|
|
|
16,249 |
|
|
|
46,668 |
|
|
|
75,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(565,957 |
) |
|
$ |
117,780 |
|
|
$ |
(953,259 |
) |
|
$ |
851,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share: |
|
$ |
(0.07 |
) |
|
$ |
0.02 |
|
|
$ |
(0.12 |
) |
|
$ |
0.12 |
|
Diluted earnings per
common share: |
|
$ |
(0.07 |
) |
|
$ |
0.01 |
|
|
$ |
(0.12 |
) |
|
$ |
0.07 |
|
Weighted average common
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
7,819,608 |
|
|
|
7,373,656 |
|
|
|
7,759,205 |
|
|
|
7,373,656 |
|
Diluted |
|
|
7,819,608 |
|
|
|
12,057,255 |
|
|
|
7,759,205 |
|
|
|
12,057,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes to interim consolidated financial
statements. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAYMENT DATA SYSTEMS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(UNAUDITED) |
|
|
|
Nine months Ended September 30, |
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
Operating
activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(953,259 |
) |
|
$ |
851,246 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
553,182 |
|
|
|
242,558 |
|
Amortization |
|
|
122,354 |
|
|
|
29,762 |
|
Non-cash stock based
compensation |
|
|
835,590 |
|
|
|
965,544 |
|
Cancellation of stock based
compensation |
|
|
(44,875 |
) |
|
|
(163,936 |
) |
Issuance of stock to
consultant |
|
|
34,300 |
|
|
|
- |
|
Changes in current
assets and current liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
134,178 |
|
|
|
155,803 |
|
Prepaid expenses and other |
|
|
(29,826 |
) |
|
|
(26,663 |
) |
Other assets |
|
|
3,103 |
|
|
|
28,563 |
|
Accounts payable and accrued
expenses |
|
|
(69,166 |
) |
|
|
(361,231 |
) |
Deferred revenue |
|
|
- |
|
|
|
- |
|
Settlement processing assets,
net |
|
|
- |
|
|
|
- |
|
Net cash provided by
operating activities: |
|
|
585,581 |
|
|
|
1,721,646 |
|
|
|
|
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
|
|
|
|
Purchases of property and
equipment |
|
|
(151,597 |
) |
|
|
(726,476 |
) |
Note receivable |
|
|
(200,000 |
) |
|
|
- |
|
Net cash (used) by investing
activities: |
|
|
(351,597 |
) |
|
|
(726,476 |
) |
|
|
|
|
|
|
|
|
|
Financing
activities: |
|
|
|
|
|
|
|
|
Purchase of treasury stock |
|
|
- |
|
|
|
(26,541 |
) |
Net cash (used) by financing
activities: |
|
|
- |
|
|
|
(26,541 |
) |
|
|
|
|
|
|
|
|
|
Change in cash and cash
equivalents |
|
|
233,984 |
|
|
|
968,629 |
|
Cash and cash equivalents,
beginning of period |
|
|
4,059,606 |
|
|
|
2,803,455 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of
period |
|
$ |
4,293,590 |
|
|
$ |
3,772,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information: |
|
|
|
|
|
|
|
|
Cash paid during the
period for: |
|
|
|
|
|
|
|
|
Interest |
|
|
- |
|
|
|
- |
|
Income taxes |
|
$ |
- |
|
|
|
77,369 |
|
|
|
|
|
|
|
|
|
|
See notes to interim
consolidated financial statements. |
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES |
(IN THOUSANDS) |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
|
|
|
|
|
In thousands |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
Reconciliation from Operating Income to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
Operating income |
|
$ |
(574,897 |
) |
|
$ |
23,332 |
|
|
$ |
(1,076,532 |
) |
|
$ |
809,886 |
|
Depreciation and amortization |
|
|
225,759 |
|
|
$ |
93,800 |
|
|
|
675,536 |
|
|
|
272,320 |
|
EBITDA |
|
|
(349,138 |
) |
|
|
117,132 |
|
|
|
(400,996 |
) |
|
|
1,082,206 |
|
|
|
|
|
|
|
|
|
|
Expenses related to NASDAQ
uplisting and reverse stock split |
|
|
- |
|
|
|
133,541 |
|
|
|
- |
|
|
|
315,903 |
|
Acquisition costs |
|
|
- |
|
|
|
- |
|
|
|
|
|
20,000 |
|
Non-cash stock compensation expense
(net) |
|
|
219,279 |
|
|
|
338,488 |
|
|
|
790,715 |
|
|
|
801,608 |
|
Adjusted
EBITDA |
|
$ |
(129,859 |
) |
|
$ |
589,161 |
|
|
$ |
389,719 |
|
|
$ |
2,219,717 |
|
|
|
|
|
|
|
|
|
|
Calculation of Adjusted
EBITDA margins: |
|
|
|
|
|
|
|
|
Revenues |
|
$ |
3,067,335 |
|
|
$ |
3,550,463 |
|
|
$ |
9,186,026 |
|
|
$ |
10,717,679 |
|
Adjusted
EBITDA |
|
$ |
(129,859 |
) |
|
$ |
589,161 |
|
|
$ |
389,719 |
|
|
$ |
2,219,717 |
|
Adjusted
EBITDA margins |
|
|
-4.2 |
% |
|
|
16.6 |
% |
|
|
4.2 |
% |
|
|
20.7 |
% |
|
|
|
|
|
|
|
|
|
Investor Contacts:
Kristen Papke
Financial Profiles
ir@paymentdata.com
Usio (NASDAQ:USIO)
過去 株価チャート
から 6 2024 まで 7 2024
Usio (NASDAQ:USIO)
過去 株価チャート
から 7 2023 まで 7 2024