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, 2016.
Financial Highlights for the Fourth Quarter Ended
December 31, 2016
- Total revenue for the quarter was $13.9 million, compared to
$15.4 million for 2015.
- Net income for the quarter was $19.8 million, compared to $6.7
million for 2015. Included in net income for Q4 2016 and Q4
2015 is a benefit to our income tax provision of $16.5 million and
$4.8 million, respectively, due in large part to the reversal of a
portion of our deferred tax asset valuation allowance.
Excluding this effect net income for Q4 2016 and Q4 2015 would have
been $3.3 million and $1.9 million, respectively.
- Diluted net income per share for the quarter was $0.36,
compared to $0.11 for 2015. Included in diluted net income
per share for Q4 2016 and Q4 2015 is a benefit to our income tax
provision of $0.30 per share and $0.08 per share, respectively, due
in large part to the reversal of a portion of our deferred tax
asset valuation allowance. Excluding this effect diluted net
income per share for Q4 2016 and Q4 2015 would have been $ 0.06 and
$0.03, respectively.
- Adjusted EBITDA for the quarter increased 22% to $4.8 million,
compared to $3.9 million for 2015.
Financial Highlights for the Year Ended December 31,
2016
- Total revenue for the year was $54.3 million, compared to $52.8
million for 2015.
- Net income for the year was $25.1 million compared to $10.4
million for 2015. Included in net income for 2016 and 2015 is
a benefit to our income tax provision of $16.5 million and $4.8
million, respectively, due in large part to the reversal of a
portion of our deferred tax asset valuation allowance.
Excluding this effect, net income for 2016 and 2015 would have been
$8.6 million and $5.6 million, respectively.
- Diluted net income per share for the year was $0.44, compared
to $0.17 for 2015. Included in diluted net income per share
for 2016 and 2015 is a benefit to our income tax provision of $0.29
per share and $0.08 per share, respectively, due in large part to
the reversal of a portion of our deferred tax asset valuation
allowance. Excluding this effect diluted net income per share
for 2016 and 2015 would have been $0.15 and $0.09,
respectively.
- Adjusted EBITDA for the year grew 26% to $14.6 million,
compared to $11.6 million for 2015.
Refer to Table 1 for reconciliation of net income to Adjusted
EBITDA (a non-GAAP measure).
Operational Highlights
- Launched UnionPay Card Acceptance with United Airlines
- Partnership with UATP to support UnionPay Card Acceptance for
UATP’s network of airlines and travel agents
- Launched Pay in Your Currency® and completed development of
Multi-Currency Pricing with Moneris Solutions Corporation in
Canada
- Entered into the Colombian market by launching Pay in Your
Currency® with Redeban Multicolor
- Expanded into a new market with launch of Pay in Your Currency®
with Ahli United Bank and Network International in Bahrain
- Commenced commercial roll out of Pay in Your Currency® with
HDFC Bank in India
- Launched DCC at ATMs with CIMB Bank in Malaysia
- Announced agreement with WorldPay to launch DCC at ATMs in the
US
- Signed contract extensions with Mashreq in United Arab Emirates
and Bank of Communications in China
Outlook for Fiscal Year 2017
- Net revenue for the year is estimated to be in the range of
$60.1 million and $61.5 million.
- Net income for the year is estimated to be in the range of
$11.8 million and $12.8 million. The guidance for net income
assumes an effective tax rate of approximately 10.0% 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
$17.0 million and $18.0 million (see Table 3 for reconciliation of
prospective net income to Adjusted EBITDA).
- Fully diluted earnings per share are estimated to be in the
range of $0.21 and $0.22 based on 52.0 million fully-diluted common
shares outstanding.
“I am pleased with our performance in 2016, and our prospects
for 2017,” said Carl Williams, Chairman and Chief Executive Officer
of Planet Payment. “With strengthening global travel trends,
multiple business wins, and improving EBITDA, I feel strongly that
our progress will continue in 2017 and beyond.”
Results of 2016 Stock Repurchase Program and Tender
Offer
For the year ended December 31, 2016, the total amount of common
stock repurchased under the program and the tender offer was 6.8
million shares for an aggregate price of $23.8 million.
Conference Call
The Company will host a conference call to discuss Fourth
Quarter and Year-End 2016 financial results today at 5:00 pm New
York time. Carl J. 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 (844) 512-2921, or for international callers (412)
317-6671, and entering the conference ID 1365463. The replay
will be available until our next earnings call on our website or
via telephone until March 16, 2017.
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 Fiscal Year ended December 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. The Company provides its services to approximately
189,000 active merchant locations in 22 countries and territories
across the Asia Pacific region, the Americas, the Middle East,
Africa and Europe, primarily through its acquiring bank and
processor customers, as well as through its own direct sales force.
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.
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 Fiscal Year ended December 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.
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.
|
Table 1. Reconciliation of Net Income to
Adjusted EBITDA |
|
For the three months and year ended December
31, 2016 and 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year ended |
|
|
December 31, |
|
December 31, |
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
ADJUSTED
EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
19,803,561 |
|
|
$ |
6,669,523 |
|
|
$ |
25,072,002 |
|
|
$ |
10,362,448 |
|
Interest expense |
|
|
87,507 |
|
|
|
18,760 |
|
|
|
273,873 |
|
|
|
57,575 |
|
Interest income |
|
|
(513 |
) |
|
|
(396 |
) |
|
|
(1,763 |
) |
|
|
(1,579 |
) |
Benefit for income
taxes (1) |
|
|
(16,105,607 |
) |
|
|
(4,278,766 |
) |
|
|
(15,429,656 |
) |
|
|
(3,970,360 |
) |
Depreciation and
amortization |
|
|
573,600 |
|
|
|
924,770 |
|
|
|
2,399,392 |
|
|
|
3,099,990 |
|
Stock-based
compensation expense |
|
|
322,046 |
|
|
|
613,415 |
|
|
|
1,820,404 |
|
|
|
1,774,232 |
|
Restructuring
charges |
|
|
149,752 |
|
|
|
— |
|
|
|
504,141 |
|
|
|
283,726 |
|
Adjusted EBITDA
(non-GAAP) |
|
$ |
4,830,346 |
|
|
$ |
3,947,306 |
|
|
$ |
14,638,393 |
|
|
$ |
11,606,032 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the three months and years ended December 31, 2016 and
2015, our benefit for income taxes includes a tax benefit of $16.5
million and $4.8 million, respectively, which primarily related to
a reversal of our tax valuation allowance.
|
|
|
|
Table 2. Explanation of Key
Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KEY
METRICS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total active merchant
locations (at period end)(1) |
|
|
189,139 |
|
|
118,019 |
|
|
189,139 |
|
|
118,019 |
|
Total settled
transactions processed(2) |
|
|
47,018,256 |
|
|
64,545,273 |
|
|
191,562,026 |
|
|
227,477,823 |
|
Total settled dollar
volume processed(3) |
|
$ |
2,151,165,506 |
|
$ |
2,202,741,628 |
|
$ |
8,182,526,775 |
|
$ |
8,263,216,174 |
|
Adjusted EBITDA
(non-GAAP)(4) |
|
$ |
4,830,346 |
|
$ |
3,947,306 |
|
$ |
14,638,393 |
|
$ |
11,606,032 |
|
Capitalized
expenditures |
|
$ |
813,408 |
|
$ |
310,132 |
|
$ |
2,083,100 |
|
$ |
1,396,998 |
|
Multi-currency
processing services key metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Active merchant
locations (at period end)(1) |
|
|
119,538 |
|
|
44,748 |
|
|
119,538 |
|
|
44,748 |
|
Settled transactions
processed(5) |
|
|
5,131,212 |
|
|
4,231,207 |
|
|
17,476,173 |
|
|
14,854,066 |
|
Settled dollar volume
processed(6) |
|
$ |
814,948,374 |
|
$ |
869,971,939 |
|
$ |
2,855,777,021 |
|
$ |
2,856,768,185 |
|
Average net mark-up
percentage on settled dollar volume processed(7) |
|
|
1.14 |
% |
|
1.14 |
% |
|
1.19 |
% |
|
1.15 |
% |
Payment
processing services key metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Active merchant
locations (at period end)(1) |
|
|
71,092 |
|
|
74,997 |
|
|
71,092 |
|
|
74,997 |
|
Payment processing
services revenue(8) |
|
$ |
4,608,630 |
|
$ |
5,452,890 |
|
$ |
20,249,444 |
|
$ |
19,351,649 |
|
Settled transactions
processed(9) |
|
|
42,307,947 |
|
|
60,460,335 |
|
|
175,059,209 |
|
|
213,093,249 |
|
Settled dollar volume
processed(10) |
|
$ |
1,400,040,412 |
|
$ |
1,364,131,250 |
|
$ |
5,489,967,884 |
|
$ |
5,472,138,032 |
|
(1) 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. As of December 31, 2016 and 2015, there were
1,491 and 1,726 active merchant locations, respectively, included
in both multi-currency and payment processing active merchant
locations but are not included in total active merchant locations,
in order to eliminate counting these locations twice.
(2) Represents total settled transactions (excluding other
transaction types such as authorizations and rate look-ups).
(3) Represents total settled dollar volume processed through
both our multi-currency and payment processing services.
(4) We define Adjusted EBITDA as GAAP net income adjusted to
exclude (1) interest expense, (2) interest income, (3) (benefit)
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” in the 10-K filing 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.
(5) Represents settled transactions processed using our
multi-currency processing services (excluding other transaction
types such as authorizations and rate look-ups).
(6) Represents the total settled dollar volume processed using
our multi-currency processing services.
(7) Represents the average net foreign currency mark-up
percentage earned on settled dollar volume processed using our
multi-currency processing services. The average net mark-up
percentage on settled dollar volume processed is calculated by
taking total multi-currency processing services net revenue ($34.0
million and $32.8 million for the years ended December 31, 2016 and
2015, respectively) and dividing by settled dollar volume processed
(see footnote 6 above). For purposes of calculating
“Average net mark-up percentage on settled dollar volume
processed,” multi-currency processing services revenue includes
revenue related to multi-currency transactions only.
(8) Represents revenue earned and reported on payment processing
services.
(9) Represents settled transactions processed using our payment
processing services (excluding other transaction types such as
authorizations and rate look-ups).
(10) Represents the total settled dollar volume processed using
our payment processing services.
|
Table 3. Reconciliation of Prospective Net
Income to Adjusted EBITDA |
|
For the year ending December 31,
2017 |
|
|
|
Range |
|
|
Millions |
ADJUSTED
EBITDA: |
|
|
Low |
|
|
High |
Net income |
|
$ |
11.8 |
|
$ |
12.8 |
Interest expense,
net |
|
|
0.3 |
|
|
0.3 |
Provision for income
taxes |
|
|
1.3 |
|
|
1.3 |
Depreciation and
amortization |
|
|
2.2 |
|
|
2.2 |
Stock-based
compensation expense |
|
|
1.4 |
|
|
1.4 |
Adjusted EBITDA
(non-GAAP) |
|
$ |
17.0 |
|
$ |
18.0 |
|
|
|
|
|
|
|
Planet Payment, Inc. |
Condensed Consolidated Balance Sheets |
|
|
|
As of |
|
As of |
|
|
December 31, |
|
December 31, |
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
13,305,816 |
|
|
$ |
14,675,515 |
|
Restricted cash |
|
|
4,981,472 |
|
|
|
5,050,147 |
|
Accounts
receivable, net of allowances of $0.1 million as of December 31,
2016 and December 31, 2015 |
|
|
6,060,533 |
|
|
|
6,406,496 |
|
Prepaid
expenses and other assets |
|
|
1,940,544 |
|
|
|
1,800,566 |
|
Total
current assets |
|
|
26,288,365 |
|
|
|
27,932,724 |
|
Other
assets: |
|
|
|
|
|
|
Restricted cash |
|
|
550,402 |
|
|
|
551,917 |
|
Property
and equipment, net |
|
|
1,674,410 |
|
|
|
1,811,619 |
|
Software
development costs, net |
|
|
4,197,142 |
|
|
|
3,964,454 |
|
Intangible assets, net |
|
|
827,474 |
|
|
|
1,378,264 |
|
Goodwill |
|
|
276,786 |
|
|
|
286,852 |
|
Deferred
tax asset |
|
|
22,673,206 |
|
|
|
6,206,313 |
|
Other
long-term assets |
|
|
2,095,817 |
|
|
|
2,374,769 |
|
Total
other assets |
|
|
32,295,237 |
|
|
|
16,574,188 |
|
Total
assets |
|
$ |
58,583,602 |
|
|
$ |
44,506,912 |
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
|
$ |
830,479 |
|
|
$ |
306,520 |
|
Accrued
expenses |
|
|
5,353,735 |
|
|
|
6,438,600 |
|
Due to
merchants |
|
|
5,199,390 |
|
|
|
5,240,427 |
|
Current
portion of capital leases |
|
|
166,966 |
|
|
|
290,911 |
|
Total
current liabilities |
|
|
11,550,570 |
|
|
|
12,276,458 |
|
Long-term
liabilities: |
|
|
|
|
|
|
Long-term
debt |
|
|
9,916,000 |
|
|
|
— |
|
Other
long-term liabilities |
|
|
854,991 |
|
|
|
1,666,938 |
|
Total
long-term liabilities |
|
|
10,770,991 |
|
|
|
1,666,938 |
|
Total
liabilities |
|
|
22,321,561 |
|
|
|
13,943,396 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
Convertible preferred stock—10,000,000 shares authorized as of
December 31, 2016 and December 31, 2015, $0.01 par value:
Series A—1,535,398 issued and outstanding as of December 31,
2016 and 2,243,750 issued and outstanding as of December 31, 2015;
$6,141,592 and $8,975,000 aggregate liquidation preference as
of December 31, 2016 and December 31, 2015, respectively |
|
|
15,354 |
|
|
|
22,438 |
|
Common
stock—250,000,000 shares authorized as of December 31, 2016 and
December 31, 2015, $0.01 par value, and 59,666,333 issued and
49,290,979 shares outstanding as of December 31, 2016, and
56,191,389 issued and 52,585,503 shares outstanding as of December
31, 2015 |
|
|
596,663 |
|
|
|
561,914 |
|
Treasury
stock, at cost, 10,375,354 shares and 3,605,886 shares as of
December 31, 2016 and December 31, 2015, respectively |
|
|
(31,726,486 |
) |
|
|
(7,883,012 |
) |
Additional paid-in capital |
|
|
111,327,321 |
|
|
|
106,741,026 |
|
Accumulated other comprehensive loss |
|
|
(654,408 |
) |
|
|
(510,445 |
) |
Accumulated deficit |
|
|
(43,296,403 |
) |
|
|
(68,368,405 |
) |
Total
stockholders’ equity |
|
|
36,262,041 |
|
|
|
30,563,516 |
|
Total
liabilities and stockholders’ equity |
|
$ |
58,583,602 |
|
|
$ |
44,506,912 |
|
|
|
|
|
|
|
|
|
|
Planet Payment, Inc. |
|
Condensed Consolidated Statements of Operations
|
|
|
Three months ended |
|
Year ended |
|
|
December 31, |
|
December 31, |
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue |
$ |
13,928,279 |
|
|
$ |
15,380,546 |
|
|
$ |
54,337,407 |
|
|
$ |
52,815,088 |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Payment
processing service fees |
|
2,242,804 |
|
|
|
3,032,481 |
|
|
|
10,450,006 |
|
|
|
10,903,660 |
|
|
Processing and service costs |
|
2,798,472 |
|
|
|
4,460,974 |
|
|
|
12,701,351 |
|
|
|
14,860,804 |
|
|
Total
cost of revenue |
|
5,041,276 |
|
|
|
7,493,455 |
|
|
|
23,151,357 |
|
|
|
25,764,464 |
|
|
Selling,
general and administrative expenses |
|
4,952,303 |
|
|
|
5,567,464 |
|
|
|
20,860,469 |
|
|
|
20,408,308 |
|
|
Restructuring charges |
|
149,752 |
|
|
|
— |
|
|
|
504,141 |
|
|
|
283,726 |
|
|
Total
operating expenses |
|
10,143,331 |
|
|
|
13,060,919 |
|
|
|
44,515,967 |
|
|
|
46,456,498 |
|
|
Income
from operations |
|
3,784,948 |
|
|
|
2,319,627 |
|
|
|
9,821,440 |
|
|
|
6,358,590 |
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
(87,507 |
) |
|
|
(18,760 |
) |
|
|
(273,873 |
) |
|
|
(57,575 |
) |
|
Interest
income |
|
513 |
|
|
|
396 |
|
|
|
1,763 |
|
|
|
1,579 |
|
|
Other
income |
|
— |
|
|
|
89,494 |
|
|
|
93,016 |
|
|
|
89,494 |
|
|
Total
other income (expense), net |
|
(86,994 |
) |
|
|
71,130 |
|
|
|
(179,094 |
) |
|
|
33,498 |
|
|
Income
from operations before benefit for income taxes |
|
3,697,954 |
|
|
|
2,390,757 |
|
|
|
9,642,346 |
|
|
|
6,392,088 |
|
|
Benefit
for income taxes |
|
16,105,607 |
|
|
|
4,278,766 |
|
|
|
15,429,656 |
|
|
|
3,970,360 |
|
|
Net
income |
$ |
19,803,561 |
|
|
$ |
6,669,523 |
|
|
$ |
25,072,002 |
|
|
$ |
10,362,448 |
|
|
Basic net
income per share applicable to common stockholders |
$ |
0.37 |
|
|
$ |
0.11 |
|
|
$ |
0.46 |
|
|
$ |
0.17 |
|
|
Diluted
net income per share applicable to common stockholders |
$ |
0.36 |
|
|
$ |
0.11 |
|
|
$ |
0.44 |
|
|
$ |
0.17 |
|
|
Weighted
average common stock outstanding (basic) |
|
48,421,891 |
|
|
|
51,833,492 |
|
|
|
49,472,512 |
|
|
|
52,545,934 |
|
|
Weighted
average common stock outstanding (diluted) |
|
50,370,663 |
|
|
|
52,953,205 |
|
|
|
51,560,798 |
|
|
|
53,271,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Planet Payment, Inc. |
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
2016 |
|
|
2015 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Net
income |
|
$ |
25,072,002 |
|
|
$ |
10,362,448 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
Stock-based compensation expense |
|
|
1,820,404 |
|
|
|
1,811,156 |
|
Depreciation and amortization expense |
|
|
2,657,255 |
|
|
|
3,099,990 |
|
Provision
for doubtful accounts |
|
|
62,681 |
|
|
|
8,388 |
|
Deferred
tax benefit |
|
|
(16,466,893 |
) |
|
|
(5,478,818 |
) |
Loss on
disposal of property and equipment |
|
|
500 |
|
|
|
— |
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
Decrease
(increase) in settlement assets |
|
|
91,162 |
|
|
|
(957,909 |
) |
Decrease
(increase) in accounts receivables, prepaid expenses and other
current assets |
|
|
330,610 |
|
|
|
346,422 |
|
Decrease
(increase) in other long-term assets |
|
|
529,213 |
|
|
|
911,138 |
|
(Decrease) increase in accounts payable and accrued expenses |
|
|
(2,678,860 |
) |
|
|
1,292,718 |
|
(Decrease) increase in due to merchants |
|
|
(63,524 |
) |
|
|
963,550 |
|
Other |
|
|
(130,611 |
) |
|
|
(172,661 |
) |
Net cash
provided by operating activities |
|
|
11,223,939 |
|
|
|
12,186,422 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Increase
in restricted cash |
|
|
(20,972 |
) |
|
|
(44,501 |
) |
Increase
(decrease) in merchant reserves |
|
|
22,487 |
|
|
|
(75,322 |
) |
Purchase
of property and equipment |
|
|
(437,308 |
) |
|
|
(183,090 |
) |
Capitalized software development |
|
|
(1,294,129 |
) |
|
|
(1,102,765 |
) |
Purchase
of intangible assets |
|
|
(16,300 |
) |
|
|
(20,979 |
) |
Net cash
used for investing activities |
|
|
(1,746,222 |
) |
|
|
(1,426,657 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
Proceeds
from exercise of stock options |
|
|
3,420,957 |
|
|
|
1,657,591 |
|
Principal
payments on capital lease obligations |
|
|
(340,899 |
) |
|
|
(519,223 |
) |
Borrowings under credit facility |
|
|
13,916,000 |
|
|
|
— |
|
Repayments under credit facility |
|
|
(4,000,000 |
) |
|
|
— |
|
Purchase
of treasury stock |
|
|
(23,843,474 |
) |
|
|
(7,060,409 |
) |
Net cash
used for financing activities |
|
|
(10,847,416 |
) |
|
|
(5,922,041 |
) |
Effect of exchange rate
changes on cash and cash equivalents(*) |
|
|
— |
|
|
|
— |
|
Net (decrease) increase
in cash and cash equivalents |
|
|
(1,369,699 |
) |
|
|
4,837,724 |
|
Cash and cash
equivalents at beginning of period |
|
|
14,675,515 |
|
|
|
9,837,791 |
|
Cash and cash
equivalents at end of period |
|
$ |
13,305,816 |
|
|
$ |
14,675,515 |
|
Supplemental
disclosure: |
|
|
|
|
|
|
Cash paid for: |
|
|
|
|
|
|
Interest |
|
$ |
247,138 |
|
|
$ |
33,499 |
|
Income
taxes |
|
|
1,027,864 |
|
|
|
765,380 |
|
Non-cash investing and
financing activities: |
|
|
|
|
|
|
Common
stock issued for preferred stock conversion |
|
|
21,629 |
|
|
|
— |
|
Common
stock issued for stock options exercised |
|
|
152 |
|
|
|
184 |
|
Assets
acquired under capital leases |
|
|
122,630 |
|
|
|
156,129 |
|
Accrued
capitalized hardware, software and fixed assets |
|
|
307,660 |
|
|
|
57,163 |
|
Capitalized stock-based compensation |
|
|
27,703 |
|
|
|
33,001 |
|
(*) For the years ended December 31, 2016 and 2015, the
effect of exchange rate changes on cash and cash equivalents was
immaterial.
Enquiries:
Planet Payment, Inc.
Raymond D’Aponte (CFO)
Tel: + 1 516 670 3200
www.planetpayment.com
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