Planet Payment Reports Significant Improvement in Net Income and Adjusted EBITDA for the Fourth Quarter and for the Full Year
LONG BEACH, N.Y., March 11, 2015 — Planet Payment, Inc. (NASDAQ:PLPM), a leading provider of international payment and transaction processing and multi-currency processing services, today announced its results for the fourth quarter and year ended December 31, 2014.
Financial Highlights for the Fourth Quarter 2014
Net revenue for the quarter was $13.0 million compared to $12.2 million for 2013.
Net income for the quarter was $2.0 million compared to $0.2 million for 2013.
Adjusted EBITDA for the quarter was $3.5 million compared to $1.3 million for 2013.
Total settled dollar volume processed for the quarter was $2.1 billion compared to$1.9 billion for 2013.
Total settled transactions processed for the quarter was 31.0 million compared to 21.2 million for 2013.
Financial Highlights for the Year Ended December 31, 2014
Net revenue for the year was $47.4 million compared to $46.6 million for 2013.
Net income for the year was $3.2 million or $0.05 per diluted share compared to $22,006 or $0.00 per diluted share for 2013.
Adjusted EBITDA for the year was $9.4 million compared to $4.2 million for 2013.
Total active merchant locations increased to approximately 93,000 from approximately 61,000 for 2013.
Total settled dollar volume processed for the year was $8.2 billion compared to $7.1 billion for 2013.
Total settled transactions processed for the year was 107.9 million compared to 64.4 million for 2013.
Refer to Table 1 for reconciliation of net income to Adjusted EBITDA and Table 2 for explanation of key metrics.
Operational Highlights for the Year Ended December 31, 2014
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.
Continued roll out of processing solution for Visa initiative in Mexico.
Expanded UPOP e-commerce solution for domestic and multi-currency UnionPay acquiring and processing services with new accounts in the United States. Launched AsiaCheckout with UnionPay and International Checkout.
Rolled out of Pay in Your Currency services to over 5,000 ATM’s in the United States, with Payment Alliance International.
Launched MICROS Payment Gateway solution for hospitality and lodging merchants in Canada with Global Payments, and in the United States with Axia Payments.
Launched Pay in Your Currency services with Columbia Data Services to their network of ATMs in the Unites States.
Signed Strategic Alliance Agreement with ScotiaBank for processing international transactions and Pay in Your Currency at their ATM network in Mexico.
Outlook for Fiscal Year 2015
Net revenue estimated to be in the range of $49.0 million to $51.0 million
Net income estimated to be in the range of $6.0 million to $7.0 million
Adjusted EBITDA estimated to be in the range of $11.0 million to $12.0 million (see Table 3 for reconciliation of prospective net income to Adjusted EBITDA)
Fully diluted earnings per share estimated to be in the range of $0.09 to $0.11 based on 56 million fully diluted common shares outstanding.
As of February 9, 2015, a majority of the Board is now comprised of directors who meet the independence requirements as set forth in NASDAQ Rule 5605(b)(1), which requires that a NASDAQ-listed company’s board of directors consist of a majority of “independent directors” (as defined in Rule 5605(a)(2) of the NASDAQ Rules). The Company has received a letter from NASDAQ confirming that the Company is again in compliance with NASDAQ Rule 5605(b)(1) and that the matter is closed.
Commenting on the results, Carl Williams, Chairman and CEO of Planet Payment, Inc., said:
“2014 was a year of both challenges and achievements, but I believe that the commitment to our strategic plan is building the foundation for Planet Payment’s future growth. As we look to 2015, we will remain focused on those opportunities that position Planet Payment to achieve maximum profitability and revenue growth.”
The Company will host a conference call to discuss fourth quarter 2014 financial results today at 5:00 pm New York time. Carl Williams, Chairman and Chief Executive Officer, 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 13598683. The replay will be available until our next earnings call on our website or via telephone until Wednesday, March 18, 2015.
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 Annual Report on Form 10-K to be filed at www.sec.gov and posted on the Company’s investor relations website.
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 more than 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.
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, 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.
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 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 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 (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP.