Long Beach, NY; November 6, 2014 – Planet Payment, Inc. (NASDAQ:PLPM), a leading provider of international payment and transaction processing and multi-currency processing services, announces today its results for the three months ended September 30, 2014.
Financial Highlights for the Quarter Ended September 30, 2014
Net revenue for the period increased approximately 8% to $11.3 million compared to $10.5 million in the third quarter of 2013.
Net income for the period was $0.5 million compared to a net loss of ($0.8) million in the third quarter of 2013.
Adjusted EBITDA for the period was $2.2 million compared to $0.2 million in the third quarter of 2013. (See Table 1 for reconciliation of net income (loss) to Adjusted EBITDA).
Settled multi-currency dollar volume processed totaled approximately $585 million (2013: $560 million) (See Table 3 for explanation of this metric)
Total active merchant locations increased by 100% to approximately 93,000 (2013: approx. 46,000) (See Table 3 for explanation of this metric).
Total settled dollar volume processed increased 22% to $2.1 billion (2013: $1.7 billion) and total settled transactions processed increased 75% to 26.5 million (2013: 15.1 million). (See Table 3 for explanation of these metrics).
Operational Highlights for the Quarter Ended September 30, 2014
Continued expansion of UPOP ecommerce solution for domestic and multi-currency UnionPay acquiring and processing services.
Continued rollout of Pay in Your Currency services to over 5,000 ATM’s in the United States, with Payment Alliance International.
Launched Pay in Your Currency services with Columbus Data Services to their network of ATMs in the Unites States.
Launched support for UnionPay card processing in Macau with BESOR.
Rollout of Pay in Your Currency solution in hotels, restaurants and retail establishments (including MICROS Payment Gateway Support) in Asia Pacific, Middle East and North and South America.
Outlook for Fiscal Year 2014
The Company amends fiscal year 2014 Guidance as follows:
Net revenue estimated to be in the range of $48.0 million to $49.0 million.
Net income estimated to be in the range of $3.0 million to $4.0 million.
Adjusted EBITDA estimated to be in the range of $9.1 million to $10.1 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 $0.06 based upon 56.0 million fully diluted common shares outstanding.
“We have made significant improvements to our business in a short period of time. We are profitable, we’re building cash, and we have strong partnerships with our customers and a pipeline of new acquirers who serve as a solid distribution channel.” said Carl Williams, President and CEO of Planet Payment. “While we have make solid progress on both the sales and profitability fronts, our quarterly results and guidance for the year reflect slower revenue growth than what we had anticipated earlier in the year”
The Company will host a conference call to discuss third 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) 407-3982, or for international callers (201) 493-6780. 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 13594112. The replay will be available until our next earnings call on our website or via telephone until Thursday, November 13, 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 and posted on the Company’s investor relations website.
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, trends, and objectives of management for future operations of both Planet Payment and its business partners, financial growth, estimated net revenue, net income, Adjusted EBITDA, diluted earnings per share, estimated fully diluted common shares outstanding, future service launches with customers in existing and new markets 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.
About Planet Payment
Planet Payment is a leading provider of international payment and transaction processing and multi-currency processing services. We provide our services in 23 countries and territories across the Asia Pacific region, the Americas, the Middle East, Africa and Europe, primarily through our 70 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.
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.
Planet Payment, Inc.
Robert Cox, CFO and COO
Tel: + 1 516 670 3200
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 from options and restricted stock 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.