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Planet Payment Announces Fourth Quarter and Year End 2015 Results

Full Year 2015 Revenue Increased 11% to $52.8 million

 

LONG BEACH, N.Y., March 2, 2016 — Planet Payment, Inc. (NASDAQ:PLPM), a 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, 2015.

 

Financial Highlights for the Fourth Quarter Ended December 31, 2015

 

·         Total revenue for the quarter grew 18% to $15.4 million, compared to $13.0 million for 2014.

·         Net income for the quarter was $6.7 million compared to $2.0 million for 2014.   Included in net income for the current quarter is a net benefit to our income tax provision of $4.8 million due in large part to the reversal of a portion of our deferred tax asset valuation allowance.  Excluding this effect net income would have been $1.9 million.

·         Adjusted EBITDA for the quarter grew 13% to $3.9 million, compared to $3.5 million for 2014.

 

Financial Highlights for the Year Ended December 31, 2015

 

·         Total revenue for the year grew 11% to $52.8 million, compared to $47.4 million for 2014.

·         Net income for the year was $10.4 million compared to $3.2 million for 2014.  Included in net income for the year is a net benefit to our income tax provision of $4.8 million due in large part to the reversal of a portion of our deferred tax asset valuation allowance.  Excluding this effect, net income would have been $5.6 million.

·         Adjusted EBITDA for the year grew 24% to $11.6 million, compared to $9.4 million for 2014.

 

Refer to Table 1 for reconciliation of net income to Adjusted EBITDA (a non-GAAP measure).

 

Operational Highlights

 

·         Executed contract extension with Global Payments for existing 13 countries and expansion of service into new markets.

·         Executed extensions of Multi-Currency Processing Agreements with Cielo S.A. in Brazil and Grupo Financiero Banorte in Mexico.

·         Launched Pay in Your Currency® with CIMB Bank in Malaysia.

·         Signed Multi-Currency Processing Agreement with Kenya Commercial Bank.

·         Signed Multi-Currency Processing Agreement and launched integrated hospitality solution with BBVA Bancomer in Mexico.

·         Executed agreement with Moneris to deliver Multi-Currency Processing solutions to merchants in Canada.

·         Executed new agreement with Visa to deliver end-to-end processing solutions to acquirers in emerging and frontier markets.

 

Outlook for Fiscal Year 2016

 

·         Net revenue for the year is estimated to be in the range of $57.0 million and $59.2 million.

·         Net income for the year is estimated to be in the range of $8.6 million and $9.6 million. The guidance for net income assumes an effective tax rate of approximately 8% and does not assume a further reduction in our tax valuation allowance.

·         Adjusted EBITDA for the year is estimated to be in the range of $14.1 million and $15.1 million (see Table 3 for reconciliation of prospective net income to Adjusted EBITDA).

·         Fully diluted earnings per share is estimated to be in the range of $0.14 and $0.16 based on 52.5 million fully diluted common shares outstanding. The guidance for diluted earnings per share does not assume a further reduction of our shares through our stock repurchase program after February 29th.

 

Stock Repurchase Program

 

For the year ended December 31, 2015, we repurchased 3.1 million shares for an aggregate price of $7.1 million. These repurchases bring our total common stock repurchased under the program through December 31, 2015 to 3.6 million shares for an aggregate price of $7.9 million.

 

From January 1, 2016 to February 29, 2016, we repurchased approximately 0.9 million shares of common stock for an aggregate price of $2.6 million. The total amount of common stock repurchased under the program through February 29, 2016 was 4.5 million shares for an aggregate price of $10.5 million. As of February 29, 2016, $3.0 million remains available for repurchase under the program.

 

“The Company achieved several significant financial milestones this past year, including double digit revenue growth, with Q4 marking our 7th consecutive quarter of profitability,” said Carl Williams, Chairman and Chief Executive Officer of Planet Payment, “Our strong results for the year demonstrate our commitment to the execution of our strategic plan which has placed Planet Payment on a path for strong and predictable revenue growth and increasing profitability.”

 

 

Conference Call

 

The Company will host a conference call to discuss fourth quarter and year-end 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 13598683.  The replay will be available until our next earnings call on our website or via telephone until Wednesday, March 9, 2016.

 

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 Annual Report on Form 10-K for the year ended December 31, 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 21 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, 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 Annual Report Form 10-K for the year ended December 31, 2015 to be 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.

Raymond D’Aponte (CFO)

  Tel: + 1 516 670 3200

www.planetpayment.com

 

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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