Second quarter revenue increased 7%
LONG BEACH, N.Y., August 4, 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 second quarter ended June 30, 2015.
Financial Highlights for the Second Quarter Ended June 30, 2015
· Net revenue for the quarter was $12.7 million compared to $11.9 million for 2014.
· Net income for the quarter was $1.9 million compared to $1.5 million for 2014.
· Adjusted EBITDA for the quarter was $2.9 million compared to $2.8 million for 2014.
· Total settled dollar volume processed for the quarter was $2.4 billion compared to $1.7 billion for 2014.
· Total settled transactions processed for the quarter was 41.6 million compared to 27.0 million for 2014.
Refer to Table 1 for reconciliation of net income to Adjusted EBITDA and Table 2 for explanation of key metrics.
Operational Highlights for the Second Quarter Ended June 30, 2015
· Rollout of DCC at ATMs to ScotiaBank’s entire network of ATMs in Mexico.
· Announcement of Pay in Your Currency with CIMB Bank in Malaysia
· Launch of Pay in Your Currency® for eCommerce with Absa and CyberSource in South Africa.
· Continued increase of UPOP e-commerce processing volume for UnionPay acquiring and processing services
Outlook for Fiscal Year 2015
Planet Payment reaffirms its revenue, net income and adjusted EBITDA guidance for the full year 2015 as follows:
· 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.
Stock Repurchase Program
On August 4, 2015, Planet Payments’ Board of Directors expanded its share repurchase authorization by an incremental $5.2 million, bringing its total current authorization to $6.0 million. Under the Company’s new authorization, Planet Payment may repurchase shares in the open market or as otherwise may be determined by the company, subject to market conditions, business opportunities and other factors. The company has no obligation to repurchase shares under this program.
Commenting on the results, Carl Williams, Chairman and CEO of Planet Payment, said:
“I believe that the results in this quarter demonstrate that the plan that we have formulated has set the right strategic direction for the Company. Our improving results and financial performance reflect a renewed focus on our core product offerings that both differentiate Planet Payment from other processors and deliver the highest margins.”
The Company will host a conference call to discuss second quarter 2015 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 13612245. The replay will be available until our next earnings call on our website or via telephone until Tuesday, August 11, 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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 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 the 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 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.
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.
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