Payment Data Systems Reports 2011 Fiscal Year Results

Payment Data Systems (OTCQB:PYDS), an integrated electronic payments solutions provider, today announced the financial results for the year ended December 31, 2011.

Revenues for the fiscal year ended December 31, 2011 increased 84% to $4,813,257 from $2,618,864 for the year ended December 31, 2010. The increase of $2,194,393 was primarily a result of our implementation of enhancements to our existing Automated Clearing House (ACH) transaction processing services. Those enhancements attracted the business of high volume e-commerce related companies who have now hired us to oversee their ACH payment processing which resulted in dramatic growth of our transactions processed. Gross profit for the year ended December 31, 2011 increased 187% to $1,719,366 from $599,262 for the year ended December 31, 2010.

Operating income for the year ended December 31, 2011 increased to $372,999 from an operating loss of $609,731 for the year ended December 31, 2010. Excluding the effect of non-cash expenses associated with stock-based compensation of $348,768 and depreciation expenses of $3,722, operating income for the year ended December 31, 2011 was $725,489.

Net income for the year ended December 31, 2011 was $351,848 as compared to net loss of $464,168 for the year ended December 31, 2010. Excluding the effect of non-cash expenses associated with stock-based compensation of $348,768 and depreciation expenses of $3,722, net income for the year ended December 31, 2011 was $704,338.

While other selling, general and administrative expenses increased for the year ended December 31, 2011 to $993,877 from $650,879 for the year ended December 31, 2010, the 53% increase was considerably less than the 84% growth in revenue that occurred for the year ending December 31, 2011.

Cash and cash equivalents increased to $3,678,688 at December 31, 2011 as compared to $978,699 at December 31, 2010.

Total assets increased to $4,909,973 at December 31, 2011 as compared to $1,983,831 at ended December 31, 2010.

Michael Long, Chief Executive Officer of Payment Data Systems said, "There were significant positive aspects to the close of fiscal year 2011. We were able to double our revenue and achieve profitability. The dramatic growth started very late in the second quarter of 2011. We are excited about our new product offerings and seeing what we can accomplish with a full year of transaction processing."

Long continued, "We expect 2012 to be an exciting year for us. We are forecasting revenues of 7.5MM to 8MM and net income of 1.75M to 2MM for the year. 2012 is positioned to be another high growth year for us with record revenues, record income and strong cash flow. ”

Please review our annual report on Form 10K which will be filed today with the Securities and Exchange Commission for complete financials of the Company.

Financial Statements
   

PAYMENT DATA SYSTEMS, INC.

CONSOLIDATED BALANCE SHEETS
 
December 31, December 31,
2011 2010
 
ASSETS
Cash and cash equivalents $ 3,678,688 $ 978,699
Accounts receivable, net 376,070 137,957
Prepaid expenses and other   32,164     22,130  
Total current assets 4,086,922 1,138,786
 
Property and equipment, net 4,234 3,076
 
Other assets:
Related party receivable 702,337 703,060
Marketable securities 74,787 99,716
Other assets   41,693     39,193  
Total other assets   818,817     841,969  
 
Total Assets $ 4,909,973   $ 1,983,831  
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 43,375 $ 70,725
Accrued expenses 521,808 1,040,721
Customer deposits payable 3,429,135 983,713
Line of credit 300,000 -
Deferred revenue   4,348     22,981  
Total current liabilities 4,298,666 2,118,140
 
Stockholders' Equity:

Common stock, $0.001 par value, 200,000,000 shares authorized; 142,721,077 and 141,073,691 issued and 137,725,833 and 136,078,447 outstanding
142,721 141,074
Additional paid-in capital 56,328,423 56,285,070
Treasury stock, at cost; 4,995,244 and 4,995,244 shares (238,158 ) (238,158 )
Deferred compensation (1,281,880 ) (1,630,648 )
Accumulated deficit   (54,339,799 )   (54,691,647 )
Total stockholders' equity (deficit)   611,307     (134,309 )
 
Total Liabilities and Stockholders' Equity $ 4,909,973   $ 1,983,831  
 
   

PAYMENT DATA SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
 
Year ended Year ended
December 31, December 31,
2011 2010
 
Revenues $ 4,813,257 $ 2,618,864
 
Operating expenses:
Cost of services 3,093,891 2,019,602
Selling, general and administrative:
Stock-based compensation 348,768 534,600
Other expenses 993,877 650,879
Depreciation   3,722     23,514  
Total operating expenses   4,440,258     3,228,595  
 
Operating income (loss) 372,999 (609,731 )
 
Other income:
Other income (expense)   (2,782 )   160,000  
Other income, net   (2,782 )   160,000  
 
Income (loss) before income taxes 370,217 (449,731 )
Income taxes   18,369     14,437  
 
Net Income (Loss) $ 351,848   $ (464,168 )
 
 
Earnings (Loss) Per Share
Basic and diluted earnings (loss) per common share: $ 0.00 $ (0.00 )
Weighted average common shares outstanding
Basic 137,148,311 121,508,634
Diluted 137,391,675 121,508,634
 

About Payment Data Systems, Inc.

Payment Data Systems is an integrated payment solutions provider to merchants and billers. The organization provides an extensive set of products to deliver world-class payment acceptance. Payment Data has solutions for merchants, billers, banks, service bureaus and card issuers. The strength of the company is its ability to offer specifically tailored solutions for card issuance, payment acceptance and bill payments.

For additional information, visit www.paymentdata.com. Contact Michael Long for Investor Relations information at 210.249.4040 or email at ir@paymentdata.com.

Website: http://www.paymentdata.com, www.ficentive.com, www.zbill.com

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Website: http://www.paymentdata.com, www.ficentive.com, www.zbill.com

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. These 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.

Copyright Business Wire 2010

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