- - Updates 2010 Full Year Guidance - -
- - Introduces Preliminary Outlook for Full Year
2011; Robust First Half 2011 Partner Pipeline - -
- - Announces Board Approval of Share
Consolidation - -
- - NASDAQ Listing Process Underway - -
TORONTO, Jan. 27 /PRNewswire/ - Points
International Ltd. (TSX: PTS; OTCBB: PTSEF), the owner and operator
of Points.com, the world's leading reward program management web
site, today announced a business update, including updated full
year 2010 financial guidance, preliminary financial guidance for
2011 and an update on the Company's previously announced share
consolidation. All dollar figures are in US Dollars.
2010 Guidance
The Company is updating its guidance for the year ended December
31, 2010 as follows:
For the twelve months ended December 31, 2010, the Company
anticipates revenues of approximately $95 million, which is at the
high-end of the Company's previous guidance range of $85 million to
$95 million, and represents year-over-year anticipated revenue
growth of approximately 19%.
EBITDA1 margin for the full year of 2010 is expected
to be in the range of 3.0% to 3.5% of revenue.
Net income, which is expected to be positive on a full year
basis, is forecasted to increase significantly year-over-year.
Points International cautions that any preliminary financial
results are unaudited and based on the best information currently
available and are subject to completion of its financial statements
for the fiscal 2010 fourth quarter and full year. Points
International currently expects to release its full results for the
fourth quarter and full year 2010 on or before March 15,
2011.
Preliminary 2011 Guidance
The Company is initiating its financial guidance for the year
ended December 31, 2011, as follows:
- Revenue is expected to be in the range of $120 million to $130
million, representing a 26% to 37% year-over-year increase from the
Company's 2010 estimated revenues of $95 million
- EBITDA is expected to be in the range of $5 million to $8
million
MacLean added, "Looking to 2011, we are optimistic about our
prospects. In addition to expecting revenue growth of
approximately 26% to 37%, we are forecasting meaningful EBITDA
profitability. This profitable growth is expected to be
driven primarily from the expansion of our core Loyalty Currency
Services business through the addition of new partnerships as well
as increased participation among our existing partnerships. We also
look forward to the continued expansion of our Points.com consumer
portal, which following the initial launch in the third quarter,
demonstrated increased traffic levels and improved transaction
conversion rates in the fourth quarter of 2010."
MacLean added, "Looking to the first half of 2011, our partner
pipeline remains robust. We currently expect over 20 new
product deployments on a white label and branded basis on the
Points.com portal, which we expect to contribute to our anticipated
improved results."
Share Consolidation
The Company announced today that its Board of Directors has
approved a share consolidation of its common shares through a
one-for-ten reverse split. Shareholders previously approved
the consolidation with over 90% of the votes cast in favour at a
special meeting held on October 26, 2010. The share consolidation,
which is subject to standard clearance by the TSX, is expected to
be completed within 10 business days. Following the share
consolidation, the Company expects to have approximately 15.0
million common shares issued and outstanding. The Company also
announced that it has filed an application to list its common
shares on the NASDAQ Capital Market and expects to effect a NASDAQ
listing as soon as possible. The Company's common shares will
continue to be quoted on OTC Markets until such time as the shares
may be listed on the NASDAQ Capital Market.
"Given our strong anticipated results for the 2010 fiscal year
and our positive preliminary outlook for 2011, we believe we are
appropriately positioned to initiate our planned share
consolidation," said CEO Rob MacLean. "Effecting the share
consolidation is consistent with our objective of obtaining a
NASDAQ listing and increasing Points' reach to a broader universe
of institutional investors. We also believe a lower share count
will better reflect our future earnings performance on a per share
basis. Over the past twelve months, Points has delivered
significantly strengthened financial results, characterized by
sequential revenue growth, enhanced gross margins and expanded
profitability. Based on our strong operational and financial
performance to-date, and our preliminary performance expectations
for the coming year, we are increasingly confident in our business
strategy and growth prospects. We look forward to the opportunity
to demonstrate our improving fundamentals to a wider audience."
Information for Shareholders
Upon execution, Points' common shareholders will receive one new
common share for every ten shares held. Registered holders of
Points common shares will receive a letter of transmittal shortly
after the effective date with instructions for the exchange of
common share certificates. No fractional shares will be issued as a
result of the share consolidation, and in the event that a
shareholder would otherwise be entitled to receive a fractional
share, such fraction will be rounded down to the nearest whole
number. Computershare Trust Company of Canada will act as the
transfer agent, and can be contacted at (1-800-564-6253) with any
questions.
Shareholders with shares in brokerage accounts will be contacted
by their brokers with instructions.
About Points International Ltd
Points International Ltd. is the owner and operator of
Points.com, the world's leading reward program management web site
which was recently named one of the 28 Best Travel Sites by
Kiplinger's. At Points.com consumers can Swap, Earn, Buy, Gift,
Share and Redeem miles and points from more than 25 of the world's
leading reward programs. Participating programs include American
Airlines AAdvantage(R) program, Aeroplan(R), AsiaMiles(TM), British
Airways Executive Club, Delta SkyMiles(R) and InterContinental
Hotels Group's Priority Club(R) Rewards. Redemption partners
include Amazon.com(R) and Starbucks. For more information, visit
www.pointsinternational.com.
Caution Regarding Forward-Looking Statements
This press release contains or incorporates forward-looking
statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995, as amended, and
forward-looking information within the meaning of Canadian
securities legislation (collectively "forward-looking
statements"). These forward-looking statements including
the Company's expected NASDAQ listing, the updated financial
outlook for 2010 and the preliminary financial outlook for the 2011
fiscal year. These statements are not historical facts but
instead represent only Points' expectations, estimates and
projections regarding future events.
Although Points believes the expectations reflected in such
forward-looking statements are reasonable, such statements are not
guarantees of future performance and are subject to important risks
and uncertainties that are difficult to predict. Certain
material assumptions or estimates are applied in making
forward-looking statements, and may not prove to be correct.
In particular, there can be no guarantee that the NASDAQ will
approve the Company's listing application or that the share
consolidation will result in the share price required to qualify
for listing on the NASDAQ Capital Market. The financial
outlooks herein assume we will be able to generate new business
from our pipeline at expected margins, our in-market and newly
launched products and services will perform in a manner consistent
with the Company's past experience, and we will be able to contain
costs and realize operational efficiencies from our upgraded
technology platform. Other important risk factors that could
cause actual results to differ materially include the risk factors
discussed in Points' annual information form, Form-20-F, annual and
interim management's discussion and analysis, and annual and
interim financial statements and the notes thereto. These documents
are available at www.sedar.com and www.sec.gov.
The forward-looking statements contained in this press release
are made as at the date of this release and, accordingly, are
subject to change after such date. Except as required by law,
Points does not undertake any obligation to update or revise any
forward-looking statements made or incorporated in this press
release, whether as a result of new information, future events or
otherwise.
__________________________
1 EBITDA (Earnings (loss) before interest, taxes,
amortization, foreign exchange, impairment and restructuring) is
considered by management to be an integral measure of performance.
EBITDA is not a recognized measure under generally accepted
accounting principles.
SOURCE Points International Ltd.
Copyright . 27 PR Newswire