Planet Payment Announces 2011 Results
Mar 30, 2012
OTC Disclosure News Service
Long Beach, NY –
Announces 2011 Annual Results
Net Revenue Increases 37%, Net Income Increases 178% and
Adjusted EBITDA Increases 226%
Long Beach, NY, March 30, 2012 — Planet Payment, Inc. (UK: LSE:AIM: PPT and PPTR; USA: OTCQX: PLPM), a leading multi-currency payment and data processor, today announced its results for the year and the three months ended December 31, 2011. During both periods, the Company again delivered solid results, showing strong growth in revenue, net income and Adjusted EBITDA:
2011 Financial Highlights
• Net revenue increased 37% to $41.9m (2010: $30.6m)
• Multi-Currency processing services revenue increased 52% to $27.2m (2010:$18.0m)
• Net income increased to $2.4m (2010 loss: ($3.1m))
• Adjusted EBITDA of $5.9m, an increase of $4.1m or 226% over $1.8m in 2010. See Table 1 in this announcement for reconciliation of net income (loss) to Adjusted EBITDA
• Consolidated gross billings increased 58% to $102.4m (2010: $64.7m). (See Table 2 in this announcement for explanation of this key metric)
• Gross foreign currency mark-up increased 69% to $87.8m (2010: $52.1m). (See Table 2 in this announcement for explanation of this key metric)
• Diluted earnings per share increased to $0.04 from a loss of $(0.08) per share in 2010.
Fourth Quarter 2011 Financial Highlights
• Net revenue increased 29% to $12.3m (Q4 2010: $9.5m).
• Net income increased to $1.8m (Q4 2010 loss: ($0.2m))
• Adjusted EBITDA of $2.7m an increase of $0.8m or 42%, (Q4 2010: $1.9m). See Table 1 in this announcement for reconciliation of net income (loss) to Adjusted EBITDA.
• Consolidated gross billings increased 47% to $31.5m (Q4 2010: $21.4m). (See Table 2 in this announcement for explanation of this key metric)
• Gross foreign currency mark-up increased 51% to $27.2m (Q4 2010: $18.0m). (See Table 2 in this announcement for explanation of this key metric)
2011 Operational Highlights
• Total active merchant locations increased by 67% to 27,887 as of December 31, 2011 (as of December 31, 2010: 16,697).
• Settled multi-currency dollar volume processed for the year increased 70% to $2.3b (2010: $1.4b). For fourth quarter 2011 settled multi-currency dollar volume processed increased 58% to $0.7b (Q4 2010: $0.5b).
• Rolled out Pay in Your Currency service with Network International in UAE to over 3,500 merchant locations.
• Expanded our relationship with Vantiv (formerly known as Fifth Third Processing Solutions) by entering into an agreement with them to provide our Pay In Your Currency service at ATMs.
• Launched the MICROS Payment Gateway to facilitate the integration of MICROS property management systems in hotels and restaurants to our platform. The first hotels, two Hyatt Regency properties in Hong Kong, were implemented before the end of the year.
• Integrated our iPAY gateway with VendorShop’s Facebook shopping cart application.
Current Trading Highlights – First Quarter 2012
• Entered into agreement with China UnionPay to provide processing support for China UnionPay’s credit and debit cards in both card present and card-not-present environments directly to banks and acquirers on a worldwide basis. Signed agreement with MICROS to add support for China UnionPay cards to the MICROS Payment Gateway.
• Entered into agreements with Citibank, Hong Kong and Macau, Citibank, Philippines and Mashreq, UAE for our Pay in Your Currency service in each of those countries.
Commenting on the results, Philip Beck, Chairman of Planet Payment, Inc., said:
“We are very pleased to announce our strong year-over-year growth, capping what was an excellent year for Planet Payment. Our services continue to help acquirers open new sales channels, merchants sell more goods and services and cardholders enjoy informed choice and transparency at the point-of-sale. We believe that Planet Payment continues to benefit from a “network effect” as we add more acquiring institutions, in more countries, using more products on our platform. We look forward to an exciting year in 2012.”
Copies of this announcement are available on the Company’s website at www.planetpayment.com. In accordance with the rules of the OTCQX market, the Company’s Annual Report for 2011, including its Audited Consolidated Financial Statements, as of December 31, 2010 and 2011 and for the three years ended December 31, 2011 have been posted on the OTCQX website at www.otcqx.com and on the Company’s website at www.planetpayment.com. Additional analysis of the Company’s performance can be found in the “Management’s Discussion Analysis of Financial Condition and Results of Operations.” section included in such Annual Report. Copies of the Company’s Annual Report for 2011 will be sent to shareholders in April together with the Notice of the 2012 Annual Meeting, which is to be held in May 2012 in New York. Copies of the Annual Report will also be available on request, through the Annual Reports service and on the Company’s website upon publication.
Planet Payment, Inc.
Robert Cox (CFO) Tel: + 1 516 670 3200
Redleaf Polhill (UK PR for Planet Payment)
Emma Kane / Henry Columbine / Luis Mackness Tel: +44 20 7566 6720
Canaccord Genuity Ltd (UK) (Nomad for Planet Payment)
Simon Bridges/ Andrew Chubb Tel: +44 20 7050 6500
Canaccord Genuity, Inc. (US) (DAD for Planet Payment)
Andy Viles Tel: +1 617-371-3900
About Planet Payment®
Planet Payment is a leading provider of international payment processing and multi-currency processing services. We provide our services in 16 countries and territories across the Asia Pacific region, North America, the Middle East, Africa and Europe, primarily through our more than 45 acquiring bank and processor customers. Our point-of-sale and e-commerce services help merchants sell more goods and services to consumers, and are integrated within the payment card transaction flow enabling our acquiring customers to process 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 on the Company and its services. For up-to-date information follow Planet Payment on Twitter at @PlanetPayment or join Planet Payment’s page on Facebook.
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, including information related to the first quarter 2012 activities and performance, 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, general economic risk and 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 for 2011, filed at www.otcqx.com 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.
The Company provides certain non-GAAP financial measures in this statement, in order to provide investors with additional perspective of underlying business trends and results. In addition management utilizes these measures in monitoring performance. 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 expense from options and warrants 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.
Table 1. Reconciliation of Net Income (Loss) to Adjusted EBITDA (non-GAAP)
For the three months and year ended December 31, 2011 and 2010
Three Months Ended Year Ended
December 31, December 31,
2011 2010 2011 2010
US$ Million US$ Million
Net income (loss) $ 1.8 $ (0.2) $ 2.4 $ (3.1)
Interest expense 0.0 0.3 0.3 1.2
Interest income 0.0 0.0 0.0 0.0
Provision for income taxes 0.2 0.0 0.3 0.0
Depreciation and amortization 0.6 0.5 2.4 1.8
Stock-based expense 0.1 0.2 0.6 0.8
Software licenses impairment 0.0 1.1 0.0 1.1
Convertible debt prepayment fee 0.0 0.0 0.6 0.0
Derecognition of note payable 0.0 0.0 (0.7) 0.0
Adjusted EBITDA (non- GAAP) $ 2.7 $ 1.9 $ 5.9 $ 1.8
Table 2. Explanation of Key Metrics
“Consolidated gross billings” Represents gross foreign currency mark-up plus payment
processing services revenue
“Gross foreign currency mark-up” Represents the gross foreign currency mark-up amount on
settled dollar volume processed using our multi currency
processing services. Gross foreign currency mark-up
represents multi currency processing services net revenue
plus amounts paid to acquiring banks and their merchants
associated with such multi currency processing transactions.
“Active merchant locations” We consider a merchant location to be active as of a date if
the merchant completed at least one revenue generating
transaction at the location during the 90-day period ending on
such date. The total number of active merchant locations
exceeds the total number of merchants, as merchants may
have multiple locations
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