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Planet Payment Announces First Quarter 2016 Results

First Quarter Revenue Increased 13% to $13.7 million

 

LONG BEACH, N.Y., May 4, 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 first quarter ended March 31, 2016.

Financial Highlights for the First Quarter Ended March 31, 2016

  • Total revenue for the quarter grew 13% to $13.7 million, compared to $12.1 million for 2015.
  • Net income for the quarter was $1.8 million compared to $1.7 million for 2015.
  • Adjusted EBITDA for the quarter grew 15% to $3.2 million, compared to $2.8 million for 2015.

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

Operational Highlights

  • Launched DCC at ATMs pilot with CIMB Bank in Malyasia.
  • Signed agreement to launch Pay in Your Currency with HDFC Bank in India.
  • Continued roll-out of Pay in Your Currency in Mexico with Grupo Financiero Banorte on stand-alone terminals and BBVA Bancomer through Planet Payment’s integrated hospitality solution.
  • Executed agreement with Moneris to deliver Pay in Your Currency and Multi-Currency Pricing 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

Planet Payment reaffirms its revenue, net income and adjusted EBITDA guidance for the full year 2016 and amends its fully diluted earnings per share guidance for the results of the modified Dutch auction and a partial conversion of Series A preferred shares as follows:

  • 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 $0.15 and $0.17 based on 51.9 million fully diluted common shares outstanding, a change from $0.14 to $0.16 based upon 52.5 million fully diluted common shares outstanding. The guidance for fully diluted common shares outstanding take into account the results of the Dutch auction tender offer and a partial conversion of Series A preferred shares (see Table 4 for reconciliation of prospective diluted earnings per share).

 

Stock Repurchase Program

From January 1, 2016 to March 9, 2016, prior to the tender offer discussed below, the Company repurchased approximately 1.3 million shares of common stock for an aggregate price of $3.6 million. As of March 10, 2016, the stock repurchase program was suspended in connection with the tender offer.

Tender Offer

On March 10, 2016, the Board of Directors authorized the Company to commence a modified “Dutch auction” tender offer to repurchase up to $15.0 million of its outstanding shares of common stock at a tender price of not less than $3.20 per share or greater than $3.60 per share. The tender offer commenced on March 14, 2016 and expired on April 11, 2016. On April 12, 2016, the Company paid approximately $13.9 million, including transaction costs, to repurchase approximately 3.9 million shares at a tender price of $3.60 per share.

“We remain committed to the execution of our strategic plan which has placed Planet Payment on a path for strong and predictable revenue growth and increasing profitability,” said Carl Williams, Chairman and Chief Executive Officer of Planet Payment. “Based on the results of Q1, our pipeline of new and existing customer roll-outs, and strong cross-border activity, we remain confident in achieving our goals.”

Conference Call

The Company will host a conference call to discuss first quarter 2016 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 13634166.  The replay will be available until our next earnings call on our website or via telephone until Wednesday May 11, 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 Quarterly Report on Form 10-Q for the three months ended March 31, 2016 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 Quarterly Report Form 10-Q for the three months ended March 31, 2016 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 adjusted to exclude: (1) interest expense, (2) interest income, (3) provision 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, the most directly comparable financial measure calculated and presented in accordance with GAAP.

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