LONG BEACH, N.Y., Nov. 04, 2015 (GLOBE NEWSWIRE) — Planet Payment, Inc. (NASDAQ:PLPM), a provider of international payment and transaction processing and multi-currency processing services, today announced its results for the third quarter ended September 30, 2015.
Financial Highlights for the Third Quarter Ended September 30, 2015
- Net revenue for the quarter was $12.6 million compared to $11.3 million for the same period in 2014.
- Net income for the quarter was $0.1 million compared to $0.5 million for the same period in 2014. Net income was primarily impacted by $0.3 million in one-time termination benefits and $0.5 million in non-cash stock-based compensation expense for equity awards granted in August.
- Adjusted EBITDA for the quarter was $1.9 million compared to $2.2 million for the same period in 2014.
Refer to Table 1 for reconciliation of net income to Adjusted EBITDA (a non-GAAP measure).
Operational Highlights for the Third Quarter Ended September 30, 2015
- Agreement with Kenya Commercial Bank, for the launch of Pay in Your Currency in Kenya.
- Launch of DCC at ATM product with Mashreq Bank.
- Completed extension of agreement with Cielo through 2022.
- Completed extension of agreement with Banorte through 2019.
- Continued roll-out of Pay in Your Currency with leading provider of cash access services to the U.S. gaming industry.
Revised Outlook for Fiscal Year 2015
Planet Payment revises its revenue, net income and fully diluted earnings per share and reaffirms Adjusted EBITDA guidance for the full year 2015 as follows:
- Net revenue for the year is expected to be in the range of $50.0 million and $51.0 million, a change from prior guidance of $49.0 million and $51.0 million
- Net income for the year is expected to be between $5.0 million and $6.0 million, a change from the prior guidance of $6.0 million to $7.0 million. Fully diluted earnings per share is expected to be between $0.08 and $0.10 based on 54 million fully diluted common shares outstanding a change from our prior guidance of $0.09 and $0.11 based on 56 million fully diluted common shares outstanding. This change is a result of the third quarter one-time termination benefits of $0.3 million and $0.7 million in additional 2015 non-cash stock-based compensation expense related to equity awards granted in August.
- Adjusted EBITDA for the year remains unchanged between $11.0 million and $12.0 million (see Table 3 for reconciliation of prospective net income to Adjusted EBITDA).
Stock Repurchase Program
As of September 30, 2015, the Company repurchased approximately 2.7 million shares of common stock for an aggregate price of $5.4 million.
Commenting on the results, Carl Williams, Chairman and CEO of Planet Payment, said:
“The results and improved financial performance for the quarter highlight the significant progress that the Company has made toward our strategic goals and the strength of our multi-currency and payment processing business lines. We remain confident that we are creating a strong foundation for Planet Payment’s future growth and profitability.”
The Company will host a conference call to discuss third quarter 2015 financial results today at 5:00 pm New York time. Carl Williams, Chairman and Chief Executive Officer, Robert Cox, President and Chief Operating Officer and Raymond D’Aponte, Chief Financial 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 13621802. The replay will be available until our next earnings call on our website or via telephone until Wednesday, November 11, 2015.
Additional analysis of the Company’s performance can be found in “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 September 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 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.
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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