Official Payments Holdings, Inc. (Nasdaq: OPAY), a leading provider of electronic payment solutions for the biller direct market, today released results for the quarter ended March 31, 2012.
Results of Operations
Second Quarter Fiscal 2012 Results
For the quarter ended March 31, 2012, Official Payments reported revenues from Continuing Operations of $32.8 million, an 8.4% increase over the same quarter last year. Our loss from Continuing Operations was $1.4 million, or $0.08 per fully diluted share, unchanged from the same quarter last year. Continuing Operations include Payment Solutions, and our VSA operations, which we are winding down. On a standalone basis, our Payment Solutions business reported quarterly revenues of $32.5 million, or an 8.6% increase over the same quarter last year.
Our general, administrative, selling and marketing expenses, which support our Continuing Operations, were $9.5 million, an increase of $2.8 million, or 41%, from the same quarter last year. The prior year quarter included a $1.5 million credit to expense related to the former CEO’s equity awards which were canceled during that period.
Alex P. Hart, President and Chief Executive Officer of Official Payments Holdings, Inc. stated, “We are encouraged by our quarterly results, but recognize that it’s only been two in a row. We continue to believe that we’re in a good space and that we have the will to execute on the things that we believe are important to creating a sustainably profitable business.”
Definition and Reconciliation
We use the following non-GAAP financial measures in this press release: Adjusted EBITDA from Continuing Operations and Payment Solutions net revenue. Official Payments’ management believes these measures are useful for evaluating our performance against the performance of peer companies within the electronic payments industry, and that these measures provide investors with additional transparency with respect to financial measures used by management in its financial and operational decision-making. Our management believes that Payment Solutions net revenue provides additional information about our business, as we wind-down our VSA operations. We also use Adjusted EBITDA from Continuing Operations, together with other criteria, in our executive compensation program. Non-GAAP financial measures should not be considered a substitute for the reported results prepared in accordance with generally accepted accounting principles in the United States, or US GAAP. Our definitions used to calculate non-GAAP financial measures may differ from those used by other companies.