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Planet Payment Announces First Quarter 2014 Results

Planet Payment, Inc. (NASDAQ:PLPM) (LSE:AIM:PPT), a leading provider of international payment processing and multi-currency processing services, announced today its results for the first quarter ended March 31, 2014 and provided guidance for its annual results for the year 2014.

Financial Highlights for the Quarter Ended March 31, 2014

• Net revenue for the period was $11.2 million compared to $12.1 million in the first quarter of 2013.
• Gross foreign currency mark-up was $28.1 million compared to $28.2 million in the first quarter of 2013. (See Table 3 for explanation of this metric).
• Net loss for the period was $(0.8) million or $(0.01) per diluted share compared to net income of $0.4 million or $0.01 per diluted share in the first quarter of 2013. The net loss for the first quarter of 2014 includes a restructuring charge of $0.6 million.
• Adjusted EBITDA for the period was $0.9 million compared to $1.4 million in the first quarter of 2013. (See Table 1 for reconciliation of net (loss) income to Adjusted EBITDA).

Operational Highlights for the Quarter Ended March 31, 2014

• Total active merchant locations increased to approximately 67,000 (2013: approximately 42,000) (See Table 3 for explanation of this metric).
• Settled multi-currency dollar volume processed totaled approximately $681 million (2013: $698 million). (See Table 3 for explanation of this metric).
• Total settled dollar volume processed increased to $2.0 billion (2013: $1.7 Billion) and total settled transactions processed increased to 24.0 million (2013: 13.2 million). (See Table 3 for explanation of these metrics).
• Began roll out of Pay in Your Currency® service with Cielo, S.A. in Brazil
• Continued roll out of Pay in Your Currency with PT Bank of Central Asia in Indonesia and with Vantiv in the United States, implementing a national retailer with 1,800 locations.
• Launched integrated hospitality merchant solution with MICROS in the United States.
• Continued roll out of processing solution for Visa initiative in Mexico.
• Launched Shop in Your Currency™ e-commerce solution with Cardworks Acquiring in the United States.
• Entered into agreement for UnionPay processing with an acquirer in Macau, and continued rollout of UPOP e-commerce solution with new accounts in the United States.

Outlook for Fiscal Year 2014

• Net revenue estimated to be in the range of $52.1 million to $55.1 million.
• Net income estimated to be in the range of $4.1 million to $6.4 million.
• Adjusted EBITDA estimated to be in the range of $10.0 million to $12.3 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 $0.06 to $0.10 based upon an estimated 56.0 million fully diluted common shares outstanding.

Commenting on the results, Carl Williams, CEO and President of Planet Payment, Inc., said:

“We are hard at work transforming Planet Payment into an efficient and sales-centric organization with an exciting pipeline that we believe will generate future revenue growth and profitability. With our commitment to the plan and the progress that we have made over the past few months, I am optimistic about our prospects for success as we look to the future.”

Conference Call

The Company will host a conference call to discuss first quarter 2014 financial results today at 5:00 pm New York time. Carl Williams, Chief Executive Officer and President, and Robert Cox, Chief Financial Officer and Chief Operating Officer will host the call. The call will be webcast live from the Company’s investor relations website at http://ir.planetpayment.com/. The conference call can also 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 on our website or by dialing (877) 870-5176, or for international callers (858) 384-5517, and entering the conference ID 13580989. The replay will be available until our next earnings call on our website or via telephone until Monday, May 19, 2014.

Additional analysis of the Company’s performance can be found in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in the Quarterly Report on Form 10-Q to be filed at www.sec.gov.

About Planet Payment

Planet Payment (NASDAQ:PLPM) (LSE:AIM: PPT) is a leading provider of international payment and transaction processing and multi-currency processing services. Planet Payment provides services in 23 countries and territories across the Asia Pacific region, the Americas, the Middle East, Africa and Europe, primarily through our more than 60 acquiring bank and processor customers. The Company’s point-of-sale and e-commerce services help merchants sell more goods and services to consumers, and together with ATM services, are integrated within the payment card transaction flow enabling acquiring customers, their merchants and consumers to shop, pay, transact and reconcile payment transactions in multiple currencies, geographies and channels.

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 set forth in “Outlook for Fiscal Year 2014” and those regarding the financial position, business strategy, plans and objectives of management for future operations of both Planet Payment and its business partners, estimated net revenue, net income, Adjusted EBITDA, diluted earnings per share, estimated fully diluted common shares outstanding, tax rates, 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 Quarterly Report on Form 10-Q, 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.

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

Non-GAAP Financial Information

The Company provides certain non-GAAP financial measures in this announcement. 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 compensation expense 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, the most directly comparable financial measure calculated and presented in accordance with GAAP.