LML Reports Profitable First Quarter Results For Fiscal 2013

VANCOUVER, British Columbia, Aug. 13, 2012 (GLOBE NEWSWIRE) -- LML PAYMENT SYSTEMS INC. ("LML") (Nasdaq:LMLP), a leading payments technology provider of financial payment processing solutions for e-commerce and traditional businesses, reports results for the first quarter ended June 30, 2012.

Revenue for the three months ended June 30, 2012 was $5.6 million compared to $5.9 million in revenue for the three months ended June 30, 2011. Gross profit was $2.3 million or 42% compared to $2.6 million or 44% last year. Income before taxes was $834,000 compared to $1.1 million last year. Net income for the quarter was $447,000, or $0.02 per share compared to $687,000 or $0.02 per share last year. Net cash flow from operating activities for the three months was approximately $947,000 compared to cash used in operating activities of $(4.3 million) last year, an improvement of $5.3 million.

Q1 Highlights
  • Transaction Payment Processing (TPP) segment revenue increase of 26%
  • Added over 900 customers; total customer base increases to over 14,000
  • New products include partnering with MasterCard to provide support for MasterCard's PayPass wallet service, allowing online merchants to provide consumers with a frictionless check-out experience
  • Launched a Beanstream mobile app for iPhone
  • All three business segments (Transaction Payment Processing (TPP), Check Processing (CP) and Intellectual Property Licensing (IPL)) achieve profitability

"Generally this was the first quarter, in some time, in which our results did not include non-recurring licensing revenue associated with our intellectual property. The loss of that revenue is quickly being offset by the continued and impressive growth of our TPP segment which grew 26% from the same period last year. We believe the payments industry is poised for radical change for which we are well-suited as our TPP business has become a leading innovator in both the development and distribution of payment services. As a result we continue to anticipate this segment will meet or exceed our target growth of 30% for the year," said Patrick H. Gaines, Chief Executive Officer. 

Conference Call

Management will host a conference call on August 13, 2012 at 1:30pm Pacific Time (4:30pm Eastern Time) to discuss these results. To participate in the conference call, please dial in 5-10 minutes before the start of the call and follow the operator's instruction. If you are calling from the United States or Canada, please dial 800 760 5361. International callers please dial 212 231 2903. 

If you are unable to join the call, an audio recording of the call will be available on our website at www.lmlpayment.com.

About LML Payment Systems Inc. ( www.lmlpayment.com)

LML Payment Systems Inc., through its Canadian subsidiary Beanstream Internet Commerce Inc., and its U.S. subsidiaries Beanstream Internet Commerce Corp. and LML Payment Systems Corp., is a leading provider of financial payment processing solutions for e-commerce and traditional businesses. We provide credit card processing, online debit, electronic funds transfer, automated clearinghouse payment processing and authentication services, along with routing of selected transactions to third party processors and banks for authorization and settlement.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all passages containing verbs such as "aims," "anticipates," "estimates," "expects," "intends," "plans," "predicts," "projects" or "targets" or nouns corresponding to such verbs. Forward-looking statements also include any other passages that are primarily relevant to expected future events or that can only be evaluated by events that will occur in the future. Forward-looking statements are based on the opinions and estimates of the management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect LML's actual results include, among others, the impact, if any, of share-based payment charges, the potential failure to establish and maintain strategic relationships, inability to integrate recent and future acquisitions, inability to develop new products or product enhancements on a timely basis, inability to protect our proprietary rights or to operate without infringing the patents and proprietary rights of others, and quarterly and seasonal fluctuations in operating results. More information about factors that potentially could affect LML's financial results is included in LML's quarterly reports on Form 10-Q and our most recent annual report on Form 10-K filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Except as required by law, LML undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.
LML PAYMENT SYSTEMS INC.  CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (In U.S. Dollars) (Unaudited)
 
  Three Months Ended
  June 30
  2012 2011
     
     
REVENUE $5,613,032 $5,969,265
COST OF REVENUE 3,250,972 3,321,826
GROSS PROFIT 2,362,060 2,647,439
     
OPERATING EXPENSES    
General and administrative 966,187 931,004
Sales and marketing 251,224 307,510
Product development and enhancement 309,974 273,695
INCOME BEFORE OTHER INCOME AND INCOME TAXES 834,675 1,135,230
     
Foreign exchange (loss) gain (4,206) 31,650
Interest income 26,757 17,177
INCOME BEFORE INCOME TAXES 857,226 1,184,057
     
Income tax expense (recovery)    
Current 455,619 206,197
Deferred (45,722) 290,514
  409,897 496,711
     
NET INCOME 447,329 687,346
     
OTHER COMPREHENSIVE INCOME    
Unrealized foreign exchange (loss) gain on translation of foreign operations (131,159) 14,363
     
Total comprehensive income $316,170 $701,709
     
EARNINGS PER SHARE, basic and diluted $0.02 $0.02
     
WEIGHTED AVERAGE SHARES OUTSTANDING    
Basic 28,246,684 28,149,725
Diluted 28,626,607 28,987,253
LML PAYMENT SYSTEMS INC.   CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (In U.S. Dollars, except as noted below) (Unaudited)
 
  June 30, March 31,
  2012 2012
ASSETS    
     
Current Assets    
Cash and cash equivalents $27,560,561 $26,783,754
Funds held for merchants 12,954,151 9,485,182
Short-term investments 3,237,169 3,290,393
Restricted cash 175,000 175,000
Accounts receivable, less allowance of $26,867 (March 31, 2012 - $27,397) 1,428,230 1,272,580
Inventory 38,205 --
Corporate taxes receivable 275,606 373,939
Prepaid expenses 271,585 331,361
Total current assets 45,940,507 41,712,209
     
Property and equipment, net 123,305 121,496
Patents 75,775 120,457
Restricted cash 254,896 258,095
Deferred tax assets 855,673 809,951
Goodwill 17,874,202 17,874,202
Other intangible assets 3,596,250 3,720,037
Other assets 20,624 20,796
     
Total assets $68,741,232 $64,637,243
     
LIABILITIES    
     
Current Liabilities    
Accounts payable $674,894 $720,666
Accrued liabilities 1,412,982 1,445,490
Corporate taxes payable 835,439 386,607
Funds due to merchants 12,954,151 9,485,182
Current portion of obligations under finance lease 2,460 2,460
Current portion of deferred revenue 1,092,814 1,342,828
Total current liabilities 16,972,740 13,383,233
     
Obligations under finance lease 4,125 4,920
     
Total liabilities 16,976,865 13,388,153
     
EQUITY    
     
Capital stock    
Class A, preferred stock, $1.00 CDN par value, 150,000,000 shares authorized, issuable in series, none issued or outstanding -- --
Class B, preferred stock, $1.00 CDN par value, 150,000,000 shares authorized, issuable in series, none issued or outstanding -- --
Common shares, no par value, 100,000,000 shares authorized, 28,246,684 issued and outstanding (March 31, 2012 - 28,246,684) 53,918,912 53,918,912
     
Contributed surplus 10,200,701 10,001,594
Warrants 113,662 113,662
Deficit (12,610,231) (13,057,560)
Accumulated other comprehensive income 141,323 272,482
Total equity 51,764,367 51,249,090
     
Total liabilities and equity $68,741,232 $64,637,243
     
LML PAYMENT SYSTEMS INC.   CONSOLIDATED STATEMENTS OF CASH FLOWS (In U.S. Dollars) (Unaudited)
 
  Three Months Ended
  June 30
  2012 2011
     
Operating Activities:    
Net income $447,329 $687,346
Adjustments to reconcile net income to net cash provided by (used in) operating activities    
Amortization of property and equipment 22,200 34,240
Amortization of intangible assets 168,469 165,645
Share-based payments 199,107 136,437
Deferred income taxes (45,722) 290,514
Foreign exchange loss (gain) 53,981 (3,703)
     
Changes in non-cash operating working capital    
Accounts receivable (180,243) (874,550)
Corporate taxes receivable 97,098 (59,169)
Inventory (38,505)  
Prepaid expenses 56,716 21,507
Accounts payable and accrued liabilities (52,376) (138,024)
Corporate taxes payable 460,078 (4,338,755)
Deferred revenue (241,025) (309,206)
Net cash provided by (used in) operating activities 947,107 (4,387,718)
     
Investing Activities:    
Acquisition of property and equipment (26,531) (21,242)
Net cash used in investing activities (26,531) (21,242)
     
Financing Activities:    
Proceeds from exercise of stock options -- 205,375
Net cash provided by financing activities -- 205,375
     
Effects of foreign exchange rate changes on cash and cash equivalents (143,769) 12,387
     
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 776,807 (4,191,198)
     
Cash and cash equivalents, beginning of period 26,783,754 26,917,491
     
Cash and cash equivalents, end of period $27,560,561 $22,726,293
     
Supplemental disclosure of cash flow information    
Interest paid $-- $--
Taxes paid $-- $4,599,921
CONTACT: Patrick H. Gaines         CEO         (604) 689-4440                  Investor Relations         (800) 888-2260

LML Logo

More from Press Releases

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

Meet the Real Money Pros: Market Strategies for 2012

Meet the Real Money Pros: Market Strategies for 2012