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Planet Payment Announces 2012 Results And Guidance For 2013

LONG BEACH, N.Y., March 18, 2013 (GLOBE NEWSWIRE) -- Planet Payment, Inc. (Nasdaq:PLPM) (LSE:AIM:PPT), a leading provider of international payment processing and multi-currency processing services, today announced its results for the fourth quarter and fiscal year ended December 31, 2012.

Financial Highlights for the Fourth Quarter Ended December 31, 2012
  • Net revenue for the period decreased approximately 4% to $11.9 million compared to $12.3 million in the fourth quarter of 2011.
  • Consolidated gross billings increased 8% to $34.0 million compared to $31.5 million in the fourth quarter of 2011. (See Table 3 for explanation of this metric).
  • Gross foreign currency mark-up increased 11% to $30.1 million compared to $27.2 million in the fourth quarter of 2011. (See Table 3 for explanation of this metric).
  • Net loss for the period was $(0.1) million or $0.00 earnings per diluted share compared to net income of $1.8 million or $0.03 per diluted share in the fourth quarter of 2011.
  • Adjusted EBITDA for the period was $0.9 million compared to $2.7 million in the fourth quarter of 2011. (See Table 1 for reconciliation of net (loss) income to Adjusted EBITDA).

Financial Highlights for the Year Ended December 31, 2012
  • Net revenue increased approximately 4% to $43.6 million compared to $41.9 million for fiscal year 2011.
  • Consolidated gross billings increased 15% to $117.9 million compared $102.4 million for fiscal year 2011. (See Table 3 for explanation of this metric).
  • Gross foreign currency mark-up increased 17% to $103.2 million compared to $87.8 million for fiscal year 2011. (See Table 3 for explanation of this metric).
  • Net loss was $(4.5) million or $(0.09) loss per diluted share compared to net income of $2.4 million or $0.04 per diluted share for fiscal year 2011, in part due to the expensing of deferred IPO costs of $2.6 million in 2012 and additional costs incurred arising out of the acquisition and operations of Branded Payment Solutions Ltd ("BPS") totaling $1.4 million during the year.
  • Adjusted EBITDA was $2.4 million compared to $5.9 million for fiscal year 2011. (See Table 1 for reconciliation of net (loss) income to Adjusted EBITDA).

Operational Highlights for the Year Ended December 31, 2012
  • Total active merchant locations increased by 47% to approximately 41,000 (See Table 3 for explanation of this metric).
  • Settled multi-currency dollar volume processed increased 12% to $2.6 billion. (See Table 3 for explanation of this metric).
  • Total settled dollar volume processed increased 27% to $6.1 billion and total settled transactions processed increased 48% to 46.0 million. (See Table 3 for explanation of these metrics).
  • Entered into a number of new contracts, notably multi-currency processing agreements with Taishin Bank in Taiwan, Mashreq in UAE, and with Payment Alliance International for ATMs in the USA.
  • Entered into a processing agreement and UPOP participation agreement with UnionPay to enable online UnionPay acceptance in the USA and Canada.
  • Launched services with Global Payments Canada, Vantiv ATMs in the USA, Mashreq UAE, Citibank Philippines, Citibank Hong Kong and Macau, Taishin Bank in Taiwan and our hospitality solution with Banorte in Mexico.
  • Acquired BPS commercial services platform and its enabling technology, which allows us to put value-added applications on the point-of-sale.
  • Continued to enhance our processing platform including implementing support for ATMs and UnionPay online and at the point-of-sale, to help merchants access the Chinese market.
  • Entered into a strategic processing relationship with Visa and launched ATM services with two banks in Myanmar.

Outlook for Fiscal Year 2013
  • Net revenue estimated to be in the range of $52.2 million to $55.0 million.
  • Net income estimated to be in the range of $2.6 million to $4.8 million.
  • Adjusted EBITDA estimated to be in the range of $8.3 million to $10.6 million. (See Table 2 for reconciliation of prospective net income to Adjusted EBITDA).
  • Fully diluted earnings per share estimated to be in the range of $0.05 to $0.09 based upon 56.4 million fully diluted common shares outstanding.
  • Our guidance assumes an effective tax rate of between 12% and 15%.

Commenting on the results, Philip Beck, CEO and Chairman of Planet Payment, Inc., said:

"2012 has been a significant year for Planet Payment. We continued to make substantial progress implementing 11 customers in 9 countries including a number in exciting emerging markets, while increasing our merchant base by nearly 50%. While we are happy with this operational progress, our 2012 results are reflective of our investment in opening new markets, winning new customers, and acquiring and developing our commercial services platform. We look forward to continued growth based on our strong pipeline and significant opportunities in emerging growth markets."

Conference Call

The Company will host a conference call to discuss fourth quarter and fiscal year 2012 financial results today at 5:00 pm EDT. Philip Beck, Chief Executive Officer, and Robert Cox, Chief Financial Officer will host the call. The conference call can be accessed live over the phone by dialing (877) 705-6003, or for international callers (201) 493-6725. A replay will be available approximately two hours after the call concludes and can be accessed by dialing (877) 870-5176, or for international callers (858) 384-5517, and entering the conference ID 410139. The replay will be available through Monday, March 25, 2013. The call will be webcast live from the Company's investor relations website at http://ir.planetpayment.com/ .

Additional analysis of the Company's performance can be found in the "Management's Discussion & Analysis of Financial Condition and Results of Operations," included in the Annual Report on Form 10-K to be filed at www.sec.gov .

About Planet Payment

Planet Payment is a leading provider of international payment processing and multi-currency processing services. We provide our services in more than 20 countries and territories across the Asia Pacific region, North America, the Middle East, Africa and Europe, primarily through our more than 50 acquiring bank and processor customers. Our point-of-sale and e-commerce services help merchants sell more goods and services to consumers, and together with our ATM services are integrated within the payment card transaction flow enabling our acquiring customers, their merchants and consumers to shop, pay, transact and reconcile payment transactions in multiple currencies, geographies and channels.

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