Second Quarter 2019 Revenue increased by
58.2%, Net Income by 137.5% and Adjusted EBITDA by 123.3% when
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 second quarter ended June 30, 2019.
Financial Highlights
- Revenue for the quarter ended June 30, 2019 was $8,636,271, an
increase of 58.2% percent compared to $5,460,723 for the same
period last year. Revenue for the six months ended June 30, 2019
was $15,893,561, an increase of 56.8% compared to $10,137,042 for
the same period last year. The increase in revenue is attributable
to continued growth within our existing programs and the addition
of new card programs in both existing and new industry
verticals.
- Second quarter 2019 gross profit increased 92.3% to $5.0
million or 58.3% of revenues, compared to $2.6 million or 48.0% of
revenue in second 2018. 2019 six month gross profit increased 81.2%
to $8.8 million, or 55.5% of revenue, from $4.9 million or 48.0% of
revenue in 2018. The increase was primarily driven by a favorable
mix towards higher margin card programs.
- Total operating expenses in the second quarter were $3.4
million compared to $3.0 million in the prior quarter, and to $1.9
million in the second quarter of 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 for the quarter ended June 30, 2019 was $1,738,791,
or $0.04 per basic share, an increase of 137.5% compared to
$732,056 or $.02 per basic share in the same period the prior year.
2019 six month net income was $2,610,462, or $0.06 per basic share,
an increase of 128.1% compared to $1,144,563, or $03 per basic
share in the same period the prior year. For the six month period
fully diluted earnings per share was $.05 versus $.02 the prior
year.
- Non-GAAP Adjusted EBITDA was $2,593,676, or $0.05 per basic
share in the quarter ended June 30, 2019 an increase of 123.3%
compared to $1,161,669, or $0.03 per basic share in the same period
the prior year. Six month non-GAAP Adjusted EBITDA for 2019 was
$4,311,154, or $0.09 per basic share, an increase of 122.6%
compared to $1,936,609, or $.04 per basic share in the same period
in the prior year.
- Our revenue conversion rate of gross dollar volume loaded on
cards for the quarter was 4.21% or 421 bps compared to 3.66% or 366
bps the same period the prior year.
Management Commentary
“We are very pleased with our results, as we’ve delivered three
and six month record revenue and net profit,” said Mark Newcomer,
Chief Executive Officer, Paysign. “Our strong results demonstrate
our continued ability to execute and to grow our new and existing
business lines.”
“We delivered strong results across the board in the second
quarter, as we continued to operationalize our strategic
initiatives,” commented Dan Henry, Chairman, Paysign. “As we look
ahead, we remain focused on execution, profitability and maximizing
shareholder value.”
“As anticipated, we continue to experience an expansion in gross
and net margins, as we benefit from higher margin industry mix and
improved operating leverage,” stated Mark Attinger, Chief Financial
Officer, Paysign.
Conference Call
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click here, and will be available for at least 90 days at click
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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 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 AND SIX MONTHS ENDED
JUNE 30, 2019 AND 2018
(Unaudited)
For the three months ended
For the six months ended
June 30,
June 30,
2019
2018
2019
2018
Revenue
$
8,636,271
$
5,460,723
$
15,893,561
$
10,137,042
Cost of revenues
3,598,038
2,840,876
7,080,174
5,274,086
Gross profit
5,038,233
2,619,847
8,813,387
4,862,956
Operating expense Depreciation and amortization
395,510
250,447
729,271
496,079
Selling, general and administrative
3,012,971
1,667,856
5,717,921
3,247,321
Total operating expenses
3,408,481
1,918,303
6,447,192
3,743,400
Income from operations
1,629,752
701,544
2,366,195
1,119,556
Other income/ (expense) Other (expense)
-
(3,125
)
-
(31,125
)
Interest income
131,811
33,015
250,985
53,615
Total Other Income/ (expense)
131,811
29,890
250,985
22,490
Income before income tax expense and noncontrolling interest
1,761,563
731,434
2,617,180
1,142,046
Income tax expense
23,276
-
7,786
-
Net income before income tax benefit and noncontrolling
interest
1,738,287
731,434
2,609,394
1,142,046
Net loss attributable to noncontrolling interest
504
622
1,068
2,517
Net income attributable to Paysign, Inc.
$
1,738,791
$
732,056
$
2,610,462
$
1,144,563
Net income per common share - basic
$
0.04
$
0.02
$
0.06
$
0.03
Net income per common share - fully diluted
$
0.03
$
0.01
$
0.05
$
0.02
Weighted average common shares outstanding - basic
47,310,209
45,560,692
47,136,608
45,359,479
Weighted average common shares outstanding - fully diluted
54,976,595
51,988,192
54,739,483
51,437,538
PAYSIGN, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
MARCH 31, 2019 and DECEMBER 31,
2018
June 30,
December 31,
2019
2018
(Unaudited)
(Audited)
ASSETS Current Assets Cash
$
6,289,008
$
5,615,073
Cash restricted
42,600,430
26,050,668
Accounts receivable
948,892
337,303
Prepaid expenses and other assets
966,633
1,175,241
Total current assets
50,804,963
33,178,285
Fixed assets, net
969,161
883,490
Intangible assets, net
2,268,611
2,115,933
Total assets
$
54,042,736
$
36,177,708
LIABILITIES AND EQUITY Current liabilities Accounts
payable and accrued liabilities
$
1,005,867
$
1,327,497
Customer card funding
40,323,617
25,960,974
Total current liabilities
41,329,484
27,288,471
Total liabilities
41,329,484
27,288,471
Equity Preferred stock: $0.001 par value; 25,000,000 shares
authorized;none issued and outstanding
-
-
Common stock: $0.001 par value; 150,000,000 shares
authorized,47,556,912 and 46,440,765 issued at June 30, 2019
andDecember 31, 2018, respectively
47,557
46,441
Additional paid-in-capital
9,833,648
8,620,144
Treasury stock at cost, 303,450 shares
(150,000
)
(150,000
)
Retained earnings
3,190,044
579,582
Total Paysign, Inc's stockholders' equity
12,921,249
9,096,167
Non-controlling interest
(207,998
)
(206,930
)
Total equity
12,713,251
8,889,237
Total liabilities and equity
$
54,042,735
$
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 AND SIX MONTHS ENDED
JUNE 30, 2019 AND 2018
(Unaudited)
For the three months ended
For the six months ended
June 30,
June 30,
2019
2018
2019
2018
Net income attributable to Paysign, Inc.
$
1,738,791
$
732,056
$
2,610,462
$
1,144,563
Income tax benefit
23,276
-
7,786
-
Interest
(131,811
)
(33,015
)
(250,985
)
(53,615
)
Depreciation and amortization
395,510
250,447
729,271
496,079
EBITDA
2,025,766
949,488
3,096,534
1,587,027
Stock-based compensation
567,910
212,181
1,214,620
349,582
Adjusted EBITDA
2,593,676
1,161,669
4,311,154
1,936,609
Non-GAAP EPS - basic
$
0.05
$
0.03
$
0.09
$
0.04
Non-GAAP EPS - fully diluted
$
0.05
$
0.02
$
0.08
$
0.04
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190806005247/en/
Paysign, Inc. Jim McCroy, 702-749-7269 Investor Relations
ir@paysign.com www.paysign.com
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