First Quarter 2019 Revenue up 55.4%, Net
Income up 111.3% and Adjusted EBITDA increased 121.5% compared to
the same period in 2018.
Paysign, Inc. (NASDAQ: PAYS), a vertically integrated provider
of innovative prepaid card programs and processing services for
corporate, consumer and government applications, today reported
financial results for the first quarter ended March 31, 2019.
Financial Highlights
- Revenue for the first quarter ended
March 31, 2019 was $7,257,290, an increase of 55.2% percent
compared to $4,676,320 for the same period last year. The increase
in revenue is attributable to continued growth with our existing
programs, and the addition of new card programs.
- Gross profit increased 68.3% to $3.8
million or 52.0% of revenues, compared to $2.2 million or 48.0% of
revenue in first quarter 2018. Gross margin increased primarily
driven by the addition of higher margin card programs.
- Total operating expenses were $3.0
million compared to $2.9 million in the prior quarter, and to $1.8
million first quarter 2018. The increase compared to the same
period the prior year is primarily attributable to increases in
leadership and staffing, investments in infrastructure, and
increased stock-based compensation.
- Net Income was $871,671, an increase of
111.3% compared to $412,548 in the same period prior year. Basic
and fully diluted earnings per share were $.02 versus $.01 the
prior year.
- Non-GAAP Adjusted EBITDA was
$1,717,479, an increase of 121.5% compared to $775,387. Non-GAAP
EPS was $.04 as compared to $.02 the prior year.
- Our revenue conversion rate of gross
dollar volume loaded on cards for the quarter was 3.79% or 379 bps
compared to 3.68% or 368 bps the same period the prior year.
Management Commentary
“We are very pleased with our first quarter operating and
financial performance, delivering record first quarter earnings and
net profit,” said Mark Newcomer, Chief Executive Officer, Paysign.
“Our results exceeded our expectations, as we continue to execute
on all fronts. Our non-Pharma business has continued its growth
trajectory, and our new Pharma clientele are beginning to
materially contribute to revenues and earnings, as expected.”
“During the first quarter we continued to have strong results
across the board,” commented Dan Henry, Chairman, Paysign. “We
continue to execute on our strategic initiatives. As we look ahead,
we remain focused on long-term profitability, sustainable
performance and maximizing shareholder value.”
“As anticipated, we experienced a solid expansion of our gross
and net margins, benefitting from higher margin industry mix and
the beginnings of improved operating leverage,” stated Mark
Attinger, Chief Financial Officer, Paysign.
Financial Guidance
The Company’s full year financial guidance for 2019 remains
unchanged.
Conference Call
A conference call and live webcast is scheduled for 5:00pm
ET, and will be available for at least 90 days at paysign.com. For
more information click here.
About Paysign, Inc.
Paysign, Inc. (NASDAQ: PAYS) is an experienced and trusted
prepaid debit card payment solutions provider and integrated
payment processor with over 2.5 million cardholders in its
portfolio. Paysign designs and develops payment solutions, prepaid
card programs, and customized payment services for consumer,
corporate and public sector applications.
Paysign’s corporate incentive prepaid cards are changing the way
corporations reward, motivate, and engage their current and
potential customers, employees, and agents. Paysign’s customizable
solutions offer significant cost savings while improving brand
recognition and customer loyalty. For over 15 years, healthcare
companies, major pharmaceutical companies, multinationals,
prestigious universities, and social media companies have relied on
Paysign to provide state of the art prepaid payment programs
tailored to their unique requirements. Paysign® is a registered
trademark of 3PEA Technologies, Inc. in the United States and other
countries. For more information visit us at www.paysign.com or
follow us on LinkedIn, Twitter and Facebook.
Forward-Looking Statements
Certain statements in this news release may contain
forward-looking information within the meaning of Rule 175 under
the Securities Act of 1933 and Rule 3b-6 under the Securities
Exchange Act of 1934, and are subject to the safe harbor created by
those rules. All statements, other than statements of fact,
included in this release, including, without limitation, statements
regarding potential future plans and objectives of the companies,
are forward-looking statements that involve risks and
uncertainties. There is no assurance that such statements will
prove to be accurate, and actual results and future events could
differ materially. Paysign undertakes no obligation to publicly
update or revise any statements in this release, whether as a
result of new information, future events, or otherwise.
PAYSIGN, INC. CONSOLIDATED STATEMENTS OF INCOME FOR THREE
MONTHS ENDED MARCH 31, 2019 AND 2018 (Unaudited)
For the three months ended
March 31,
2019 2018 Revenue $
7,257,290 $ 4,676,320 Cost of revenues 3,482,136
2,433,210 Gross profit 3,775,154
2,243,110 Operating expense
Depreciation & amortization 333,761 246,038 Selling, general
& administrative 2,704,949 1,579,019
Total operating expenses 3,038,710
1,825,057 Income from operations
736,444 418,053 Other income/ (expense)
Other (expense) - (28,000 ) Interest income 119,173
20,600 Total Other Income/ (expense) 119,173
(7,400 ) Income before noncontrolling interest
855,617 410,653 Income tax benefit (15,490 ) -
Net Income before income tax benefit and noncontrolling
interest 871,107 410,653 Net
loss attributable to non-controlling interest 564
1,895 Net income attributable to
Paysign, Inc. $ 871,671 $ 412,548 Net income
per common share - basic $ 0.02 $ 0.01 Net income per
common share - fully diluted $ 0.02 $ 0.01
Weighted average common shares outstanding - basic
46,961,079 44,990,765 Weighted average common
shares outstanding - fully diluted 54,508,835
50,880,765 PAYSIGN, INC. CONSOLIDATED
BALANCE SHEETS MARCH 31, 2019 and DECEMBER 31, 2018 (Unaudited)
March 31, December 31,
2019 2018 ASSETS Current Assets Cash $ 5,211,161 $ 5,615,073
Cash restricted 45,928,136 26,050,668 Accounts receivable 667,852
337,303 Prepaid expenses and other assets 1,066,357
1,175,241 Total current assets 52,873,506 33,178,285
Fixed assets, net 1,009,359 883,490
Intangible assets, net
2,215,718 2,115,933 Total assets
$ 56,098,584 $ 36,177,708 LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities Accounts payable
and accrued liabilities $ 579,052 $ 1,327,497 Customer card funding
45,112,478 25,960,974 Total current
liabilities 45,691,530 27,288,471 Total liabilities
45,691,530 27,288,471 Stockholders'
equity
Common stock $0.001 par value; 150,000,000
authorized (46,731,912 and 46,440,765 issued and outstanding at
March 31,2019 and December 31, 2018, respectively)
46,732 46,441
Additional paid-in-capital
9,266,563 8,620,144 Treasury stock at cost, 303,450 shares (150,000
) (150,000 ) Retained earnings 1,451,253
579,582 Total Paysign, Inc's stockholders' equity 10,614,548
9,096,167 Non-controlling interest (207,494 )
(206,930 ) Total stockholders' equity 10,407,054
8,889,237 Total liabilities and
stockholders' equity $ 56,098,584 $ 36,177,708
Paysign, Inc. Non-GAAP Measures
To supplement Paysign’s financial results presented on a GAAP
basis, we use a non-GAAP measure of Adjusted EBITDA defined as net
income less the following cash and non-cash items: interest, taxes,
stock-based compensation, amortization and depreciation. We believe
this non-GAAP measure helps investors better evaluate our past
financial performance and potential future results. Non-GAAP
measures should not be considered in isolation or as a substitute
for comparable GAAP accounting and investors should read them in
conjunction with the Company’s financial statements prepared in
accordance with GAAP.
“EBITDA” is defined as earnings before interest, taxes,
depreciation and amortization expense. “Adjusted EBITDA” reflects
the adjustment to EBITDA to exclude stock-based compensation
charges. Adjusted EBITDA is not intended to represent cash flows
from operations, operating income (loss) or net income (loss) as
defined by U.S. GAAP as indicators of operating performance.
Management cautions that amounts presented in accordance with
Paysign’s definition of Adjusted EBITDA or any other non-GAAP
measures may not be comparable to similar measures disclosed by
other companies because not all companies calculate Adjusted EBITDA
and non-GAAP measures in the same manner.
PAYSIGN, INC. RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME FOR
THREE MONTHS ENDING MARCH 31, 2019 AND 2018
Three months ended March 31, 2019 2018 Net income
attributable to Paysign, Inc. $ 871,671 $ 412,548 Income tax
benefit (15,490 ) - Interest (119,173 ) (20,600 ) Depreciation and
amortization 333,761 246,038
EBITDA 1,070,769 637,986 Stock-based compensation
646,710 137,401
Adjusted EBITDA
1,717,479 775,387 Non-GAAP EPS - basic
$ 0.04 $ 0.02 Non-GAAP EPS - fully diluted $ 0.03
$ 0.02
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version on businesswire.com: https://www.businesswire.com/news/home/20190507005836/en/
Paysign, Inc.Jim McCroy, 702-749-7269Investor
Relationsir@paysign.comhttp://www.paysign.com
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