LONG BEACH, N.Y., March 6, 2014 (GLOBE NEWSWIRE) -- Planet Payment, Inc. (Nasdaq:PLPM) (LSE:PPT), a leading provider of international payment and transaction processing and multi-currency processing services, today announced its results for the fourth quarter and fiscal year ended December 31, 2013. Financial Highlights for the Fourth Quarter Ended December 31, 2013
- Net revenue for the quarterly period was $12.2 million compared to $11.9 million in the fourth quarter of 2012.
- Gross foreign currency mark-up for the quarterly period was $30.0 million compared to $30.1 million in the fourth quarter of 2012. (See Table 2 for explanation of this metric).
- Net income for the quarterly period was $0.2 million compared to net loss of $(0.1) million in the fourth quarter of 2012.
- Adjusted EBITDA for the quarterly period was $1.3 million compared to Adjusted EBITDA of $0.9 million in the fourth quarter of 2012. (See Table 1 for reconciliation of net income (loss) to Adjusted EBITDA).
- Net revenue for the year was $46.6 million compared to $43.6 million for fiscal year 2012.
- Gross foreign currency mark-up for the year was $107.0 million compared to $103.2 million for fiscal year 2012. (See Table 2 for explanation of this metric).
- Net income was $22,006 or $0.00 per diluted share compared to net loss of $(4.5) million or $(0.09) per diluted share for fiscal year 2012.
- Adjusted EBITDA for the year was $4.2 million compared to $2.4 million for fiscal year 2012. (See Table 1 for reconciliation of net income (loss) to Adjusted EBITDA).
- Total active merchant locations increased to approximately 61,000 (2012: approx. 41,000) (See Table 2 for explanation of this metric).
- Settled multi-currency dollar volume processed was $2.6 billion (2012: $2.6 billion). (See Table 2 for explanation of this metric).
- Total settled dollar volume processed increased to $7.1 billion (2012: $6.1 billion) and total settled transactions processed increased to 64.4 million (2012: 46.0 million). (See Table 2 for explanation of these metrics).
- Entered into a number of new contracts, notably a number of processing agreements with Visa building on our strategic partnership for emerging markets and an extension of our multi-currency processing agreements with Network International. We also signed an agreement with BCA for our PYC service in Indonesia which was launched in December.
- Became an acquiring member of UnionPay International and signed a direct acquiring agreement with Discover.
- Launched services with ICBC in Macau; in the U.S. we launched Billabong with Vantiv and additional ATMs with Payment Alliance International and integrated hospitality solutions were launched with MICROS in Canada and Mexico.
- Integrated the Commercial Services Platform and its enabling technology, which allows us to provide commercial services at the point-of-sale.
- Continued to enhance our processing platform including launching support UnionPay online and at the point-of-sale, to help merchants access the Chinese market.
- Launched solutions with Visa for POS and ATM services for banks in Myanmar and Grupo Bimbo in Mexico.
Planet Payment is headquartered in New York and has offices in Atlanta, Beijing, Bermuda, Delaware, Dubai, Dublin, London, Hong Kong, Mexico City, Shanghai and Singapore. Visit www.planetpayment.com for more information about the Company and its services. For up-to-date information follow Planet Payment on Twitter at @PlanetPayment or join Planet Payment's Facebook page.Notice Regarding Forward-Looking Statements . Information contained in this announcement may include 'forward-looking statements'. All statements other than statements of historical facts included herein, including, without limitation, those regarding the financial position, business strategy, plans and objectives of management for future operations of both Planet Payment and its business partners, net revenue, net income (loss), Adjusted EBITDA, diluted earnings per share, future service launches with customers and new initiatives and customer pipeline are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding Planet Payment's present and future business strategies, and the environment in which Planet Payment expects to operate in future, which assumptions may or may not be fulfilled in practice. Implementation of some or all of the new services referred to is subject to regulatory or other third party approvals. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of risk factors, including the risk that implementation, adoption and offering of the service by processors, acquirers, merchants and others may take longer than anticipated, or may not occur at all, regulatory changes and changes in card association regulations and practices, changes in domestic and international economic conditions and changes in volume of international travel and commerce and others. Additional risks may arise, with respect to commencing operations in new countries and regions, of which Planet Payment is not fully aware at this time. See the Company's Annual Report Form 10-K, filed at www.sec.gov for other risk factors which investors should consider. These forward-looking statements speak only as to the date of this announcement and cannot be relied upon as a guide to future performance. Planet Payment expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in its expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based. Non-GAAP Financial Information The Company provides certain non-GAAP financial measures in this statement. Management believes that Adjusted EBITDA, when viewed with our results under GAAP and the accompanying reconciliations, provides useful information about our period-over-period results. Adjusted EBITDA is presented because management believes it provides additional information with respect to the performance of our fundamental business activities and is also frequently used by securities analysts, investors and other interested parties in the evaluation of comparable companies. We also rely on Adjusted EBITDA as a primary measure to review and assess the operating performance of our company and our management team in connection with our executive compensation. These non-GAAP key business indicators, which include Adjusted EBITDA, should not be considered replacements for and should be read in conjunction with the GAAP financial measures.
We define Adjusted EBITDA as GAAP net income (loss) adjusted to exclude: (1) interest expense, (2) interest income, (3) provision (benefit) for income taxes, (4) depreciation and amortization, (5) stock‑based expense from options and warrants and (6) certain other items management believes affect the comparability of operating results. Please see "Adjusted EBITDA" below for more information and for a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP.Table 1. Reconciliation of Net Income (Loss) to Adjusted EBITDA For the three months and year ended December 31, 2013 and 2012
|Three months ended||Twelve months ended|
|December 31,||December 31,|
|ADJUSTED EBITDA:||US$ Millions|
|Net income (loss)||$ 0.2||$ (0.1)||$ 0.0||$ (4.5)|
|Interest and other expense (income)||0.0||0.0||0.0||0.0|
|(Benefit) provision for income taxes||0.0||(0.1)||0.0||0.2|
|Depreciation and amortization||0.7||0.8||2.9||2.8|
|Expensing of deferred IPO costs(1)||0.0||0.0||0.0||2.6|
|Acquisition deal costs||0.0||0.0||0.0||0.1|
|Adjusted EBITDA (non-GAAP)||$ 1.3||$ 0.9||$ 4.2||$ 2.4|
Table 2. Explanation of Key Metrics
|Year ended December 31,|
|Consolidated gross billings(1)||$ 123,766,535||$ 117,945,131|
|Total settled dollar volume processed(2)||$ 7,054,447,195||$ 6,114,241,521|
|Total active merchant locations (at period end)(3)||61,029||40,918|
|Total settled transactions processed(4)||64,438,090||45,968,171|
|Multi-currency processing services key metrics:|
|Active merchant locations (at period end)(3)||23,628||22,015|
|Settled transactions processed(5)||12,496,150||11,883,366|
|Gross foreign currency mark-up(6)||$ 107,013,919||$ 103,174,205|
|Settled dollar volume processed(7)||$ 2,645,757,541||$ 2,628,252,265|
|Average net mark-up percentage on settled dollar volume processed(8)||1.13%||1.10%|
|Payment processing services key metrics:|
|Active merchant locations (at period end)(3)||37,424||18,921|
|Payment processing services revenue(9)||$ 16,752,616||$ 14,770,926|
|Settled transactions processed(10)||51,941,940||34,084,805|
|Settled dollar volume processed(11)||$ 4,408,689,654||$ 3,485,989,256|
(2) Represents total settled dollar volume processed through both our multi-currency and payment processing services.(3) We consider a merchant location to be active as of a date if the merchant completed at least one revenue-generating transaction at the location during the 90-day period ending on such date. The total number of active merchant locations exceeds the total number of merchants, as merchants may have multiple locations. As of December 31, 2013 and 2012, there were 23 and 18 active merchant locations, respectively, included in both multi-currency and payment processing active merchant locations but are not included in total active merchant locations, in order to eliminate counting these locations twice. (4) Represents total settled transactions (excluding other transaction types such as authorizations and rate look-ups). (5) Represents settled transactions processed using our multi-currency processing services (excluding other transaction types such as authorizations and rate look-ups). (6) Represents the gross foreign currency mark-up amount on settled dollar volume processed using our multi-currency processing services. Gross foreign currency mark-up represents multi-currency processing services net revenue plus amounts paid to acquiring banks and their merchants associated with such multi-currency processing transactions. Management believes this metric is relevant because it provides the reader an indication of the gross mark-up derived from multi-currency transactions processed through our platform during a given period. (7) Represents the total settled dollar volume processed using our multi-currency processing services. (8) Represents the average net mark-up percentage earned on settled dollar volume processed using our multi-currency processing services. The average net mark-up percentage on settled dollar volume processed is calculated by taking the reported total multi-currency processing services net revenue ($29.8 million, and $28.8 million for the years ended December 31, 2013 and 2012, respectively) and dividing by settled dollar volume processed. (9) Represents revenue earned and reported on payment processing services. (10) Represents settled transactions processed using our payment processing services (excluding other transaction types such as authorizations and rate look-ups).
(11) Represents the total settled dollar volume processed using our payment processing services.Planet Payment, Inc. unaudited consolidated balance sheets
|Cash and cash equivalents||$ 6,572,468||$ 6,002,457|
|Accounts receivable, net of allowances of $0.2 million and $1.5 million as of December 31, 2013 and 2012, respectively||6,016,296||5,585,815|
|Prepaid expenses and other assets||1,457,660||2,395,137|
|Total current assets||17,517,447||16,501,025|
|Property and equipment, net||2,198,640||1,396,154|
|Software development costs, net||4,904,415||4,776,320|
|Intangible assets, net||2,820,909||3,289,590|
|Security deposits and other assets||2,141,620||338,408|
|Total other assets||12,873,691||10,817,477|
|Total assets||$ 30,391,138||$ 27,318,502|
|Liabilities and stockholders' equity|
|Accounts payable||$ 585,604||$ 889,118|
|Due to merchants||3,018,900||2,546,140|
|Current portion of capital leases||466,010||337,588|
|Total current liabilities||9,103,134||9,071,635|
|Long-term portion of capital leases and deferred revenue||1,432,513||364,010|
|Total long-term liabilities||1,432,513||364,010|
|Commitments and contingencies|
|Convertible preferred stock—10,000,000 shares authorized as of December 31, 2013 and 2012, $0.01 par value: Series A—2,243,750 issued and outstanding as of December 31, 2013 and 2012; $8,975,000 aggregate liquidation preference||22,438||22,438|
|Common stock—250,000,000 shares authorized as of December 31, 2013 and 2012, $0.01 par value, and 55,037,488 and 53,658,857 shares issued and outstanding as of December 31, 2013 and 2012, respectively||550,375||536,589|
|Additional paid-in capital||101,038,685||99,199,149|
|Accumulated other comprehensive income||135,231||37,925|
|Total stockholders' equity||19,855,491||17,882,857|
|Total liabilities and stockholders' equity||$ 30,391,138||$ 27,318,502|
|Year ended December 31,|
|Net revenue||$ 46,566,065||$ 43,578,016||$ 41,858,166|
|Cost of revenue:|
|Payment processing service fees||11,236,262||10,943,290||11,677,012|
|Processing and service costs||13,048,294||11,010,778||9,093,674|
|Total cost of revenue||24,284,556||21,954,068||20,770,686|
|Selling, general and administrative expenses||22,241,656||25,865,652||18,152,014|
|Total operating expenses||46,526,212||47,819,720||38,922,700|
|Income (loss) from operations||39,853||(4,241,704)||2,935,466|
|Other income (expense):|
|Other income (expense), net||88,889||(8,739)||98,682|
|Total other income (expense), net||23,022||(63,490)||(218,834)|
|Income (loss) from operations before provision for income taxes||62,875||(4,305,194)||2,716,632|
|Provision for income taxes||(40,869)||(147,111)||(331,903)|
|Net income (loss)||$ 22,006||$ (4,452,305)||$ 2,384,729|
|Basic net income (loss) per share applicable to common stockholders||$ 0.00||$ (0.09)||$ 0.04|
|Diluted net income (loss) per share applicable to common stockholders||$ 0.00||$ (0.09)||$ 0.04|
|Weighted average common stock outstanding (basic)||52,943,203||52,187,144||49,348,033|
|Weighted average common stock outstanding (diluted)||54,465,285||52,187,144||52,167,492|
|Year ended December 31,|
|Cash flows from operating activities:|
|Net income (loss)||$ 22,006||$ (4,452,305)||$ 2,384,729|
|Adjustments to reconcile net (loss) income to net cash provided by operating activities:|
|Stock-based compensation expense||1,227,369||1,075,079||555,882|
|Depreciation and amortization expense||2,872,167||2,831,379||2,416,873|
|Provision for doubtful accounts||326,457||136,350||75,384|
|Deferred tax benefit||(583,420)||(66,009)||—|
|Disposal of property and equipment||4,979||86,388||—|
|Expensing of deferred IPO costs||—||2,346,210||—|
|Accrued insurance proceeds||—||(100,000)||—|
|Gain on insurance settlement||(301,281)||—||—|
|Non-cash interest expense on convertible debt||—||—||254,636|
|Non-cash interest expense on term debt||—||—||—|
|Common stock issued for payment of account payable||—||—||20,000|
|Derecognition of note payable||—||—||(700,000)|
|Non-cash prepayment fee on conversion of convertible debt||—||—||601,318|
|Changes in operating assets and liabilities net of effects of acquisitions:|
|(Increase) decrease in settlement assets||(703,407)||(575,707)||118,448|
|(Increase) decrease in security deposits and other assets||(482,065)||(11,575)||32,051|
|Increase in accounts payable and accrued expenses||336,367||1,713,071||2,088,190|
|Increase (decrease) in due to merchants||472,760||409,076||(157,188)|
|Net cash provided by operating activities||2,520,150||1,601,416||5,866,720|
|Cash flows from investing activities:|
|(Increase) decrease in restricted cash||(26,638)||(9,448)||90,042|
|Purchase of property and equipment||(828,730)||(269,557)||(161,705)|
|Capitalized software development||(1,443,010)||(1,360,091)||(1,862,653)|
|Purchase of intangible assets||(162,181)||(149,420)||(78,453)|
|Cash paid for business combination, net of cash acquired||—||(1,577,829)||—|
|Net cash used in investing activities||(2,059,278)||(3,366,345)||(2,012,769)|
|Cash flows from financing activities:|
|Proceeds from issuance of common stock.||589,131||774,749||269,965|
|Principal payments on capital lease obligations||(479,992)||(324,795)||(284,682)|
|Payment of IPO costs||—||(354,531)||(1,349,770|
|Net cash provided by (used in) financing activities||109,139||95,423||(1,364,487)|
|Effect of exchange rate changes on cash and cash equivalents(*)||—||—||—|
|Net (decrease) increase in cash and cash equivalents||570,011||(1,669,506)||2,489,464|
|Beginning of period||6,002,457||7,671,963||5,182,499|
|End of period||$ 6,572,468||$ 6,002,457||$ 7,671,963|
|Cash paid for:|
|Interest||$ 63,352||$ 53,994||$ 64,462|
|Non cash investing and financing activities:|
|Convertible debt converted to common stock||$ —||$ —||$ 8,979,926|
|Common stock issued for BPS acquisition||—||1,596,862||—|
|Common stock issued for stock options and warrants exercised||2,273||13,335||354|
|Assets acquired under capital leases||728,082||530,984||349,484|
|Accrued capitalized hardware, software and fixed assets||27,566||—||—|
|Capitalized stock-based compensation||52,133||—||—|
|Accrued IPO costs||—||—||301,019|
Planet Payment, Inc. unaudited consolidated statements of changes in convertible preferred stock and stockholders' equity
|Convertible preferred stock $0.01 par value 4,000,000 shares authorized as of December 31, 2010 and 2011 and 10,000,000 shares authorized as of December 31, 2012 and 2013 Series A||Common stock $0.01 par value— 70,000,000 shares authorized as of December 31, 2010 and 80,000,000 shares authorized as of December 31, 2011 and 250,000,000 shares authorized as of December 31, 2012 and 2013|
|Shares issued||Shares Value||Issued||Par value||Additional paid-in capital||Accumulated other comprehensive (loss) income||Accumulated deficit||Total stockholders' equity|
|Balance—December 31, 2010||2,243,750||22,438||46,068,496||460,684||85,066,856||(27,600)||(79,845,668)||5,676,710|
|Restricted stock issued||—||—||915,000||9,150||—||—||—||9,150|
|Stock-based compensation expense||—||—||—||—||555,882||—||—||555,882|
|Cumulative translation adjustment||—||—||—||—||—||(13,129)||—||(13,129)|
|Balance—December 31, 2011||2,243,750||22,438||51,764,405||517,644||95,706,552||(40,729)||(77,460,939)||18,744,966|
|Stock issued ------ Acquisition of BPS||—||—||488,337||4,884||1,596,862||—||—||1,601,746|
|Stock-based compensation expense||—||—||—||—||1,135,047||—||—||1,135,047|
|Cumulative translation adjustment||—||—||—||—||—||78,654||—||78,654|
|Balance— December 31, 2012||2,243,750||22,438||53,658,857||536,589||99,199,149||37,925||(81,913,244)||17,882,857|
|Restricted stock issued||—||—||860,739||8,607||(23,918)||—||—||(15,311)|
|Stock-based compensation expense||—||—||—||—||1,279,502||—||—||1,279,502|
|Cumulative translation adjustment||—||—||—||—||—||97,306||—||97,306|
|Balance— December 31, 2013||2,243,750||$ 22,438||55,037,488||$ 550,375||$ 101,038,685||$ 135,231||$ (81,891,238)||$ 19,855,491|
Company structurePlanet Payment was incorporated in the State of Delaware on October 12, 1999 as Planet Group Inc. and changed its name to Planet Payment, Inc. on June 18, 2007. Since March 20, 2006, shares of the Company's common stock have traded on the Alternative Investment Market of the London Stock Exchange, or AIM, under the symbols "PPT" and "PPTR." From November 19, 2008 until December 14, 2012, shares of our common stock were traded on the OTCQX under the symbol "PLPM." On December 17, 2012 shares of our common stock began trading on NASDAQ under the symbol "PLPM." Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). The accompanying consolidated financial statements include the accounts of Planet Payment, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. The Company combined the equity classification line item "Warrants" (previously presented separately) with additional paid-in capital on the consolidated balance sheet as of December 31, 2013 and 2012.
CONTACT: Enquiries: Planet Payment, Inc. Robert Cox (CFO and COO) Tel: + 1 516 670 3200 www.planetpayment.com Canaccord Genuity Ltd (UK) (Nomad for Planet Payment) Simon Bridges / Cameron Duncan Tel: +44 20 7523 8000