Third Quarter 2019 Net income increased by
269.6% to $0.06 per basic share, Revenues by 40.3% and Adjusted
EBITDA by 123.6% 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 third quarter ended September 30,
2019.
Financial Highlights
- Revenues for the quarter ended September 30, 2019 were
$9,008,117, an increase of $2,586,721 or 40.3% percent compared to
$6,421,396 for the same period last year. Revenues for the nine
months ended September 30, 2019 were $24,901,678, an increase of
50.4% compared to $16,558,438 for the same period last year. The
increase in revenues is attributable to continued growth within our
existing programs and the addition of new card programs in both
existing and new industry verticals.
- Third quarter 2019 gross profit increased 76.3% to $5.4 million
or 59.6% of revenues, compared to $3.0 million or 47.4% of revenues
for the same period last year. 2019 nine month gross profit
increased 79.3% to $14.2 million, or 56.9% of revenues, from $7.9
million or 47.8% of revenues in the same period in 2018. The
increase was primarily driven by a favorable mix towards higher
margin card programs.
- Total operating expenses in the third quarter were $3.1 million
compared to $3.4 million in the prior quarter, and to $2.3 million
in the third quarter of 2018. Total operating expenses in the first
nine months of 2019 were $9.5 million compared to $6.0 million in
the same period last year. The increase is primarily attributable
to increases in leadership and staffing, investments in
infrastructure, and increased stock-based compensation.
- Net Income for the quarter ended September 30, 2019 was
$2,960,078, or $0.06 per basic share, an increase of 269.6%
compared to $800,862 or $0.02 per basic share in the same period
the prior year. 2019 nine month net income was $5,570,540, or $0.12
per basic share, an increase of 186.3% compared to $1,945,425 or
$0.04 per basic share in the same period the prior year. For the
quarter fully diluted earnings per share was $0.05 versus $0.02 for
the previous year. For the nine-month period fully diluted earnings
per share was $0.10 versus $0.04 for the prior year.
- Non-GAAP Adjusted EBITDA was $3,252,332, or $0.07 per basic
share in the quarter ended September 30, 2019, an increase of
123.6% compared to $1,454,224, or $0.03 per basic share in the same
period the prior year. Nine month non-GAAP Adjusted EBITDA for 2019
was $7,563,486, or $0.16 per basic share, an increase of 123.1%
compared to $3,390,833, or $0.07 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 4.29% or 429 bps compared to 3.72% or 372
bps the same period the prior year.
Corporate Update
In the third quarter of 2019, the Company successfully
on-boarded all scheduled plasma programs, increasing the Company’s
footprint in the industry by 13%. In the third quarter, $210
million was loaded to cards. As a comparison, $88 million was
loaded to cards in October 2019. The Company recently launched
Paysign Premier, its demand deposit account accessible with the
Paysign Premier Card.
Management Commentary
“We are very pleased with our quarterly and year to date
financial results, as we posted both record revenue and net
profit,” said Mark Newcomer, Chief Executive Officer, Paysign. “We
remain very optimistic as we continue to increase market share,
gain traction in our existing verticals, expand our industry reach
and market to consumers both directly and through channel
partners.”
“We continued to deliver strong results in the third quarter,”
commented Dan Henry, Chairman, Paysign. “As we enter new markets,
we are confident in our ability to leverage the combined experience
of our management team to execute on its strategic initiatives.
Looking ahead, we remain focused on execution, profitability and
maximizing shareholder value.”
“In the third quarter we experienced an expansion in both gross
and net margins, as we improved our operating leverage and
experienced a beneficial industry mix,” stated Mark Attinger, Chief
Financial Officer, Paysign.
Guidance
The Company is issuing no change to its previous full year
revenue and Adjusted EBITDA guidance of $35 to $37 million and $10
to $12 million, respectively.
Conference Call
A conference call and live webcast is scheduled for 4:30 PM ET
click here, and will be available for at least 90 days at click
here.
About Paysign, Inc.
Paysign, Inc. (NASDAQ: PAYS) is a vertically integrated provider
of innovative prepaid card programs and processing services for
corporate, consumer, and government applications. Its payment
solutions are utilized by corporate customers as a means to
increase customer loyalty, increase patient adherence rates, reduce
administration costs, and streamline operations. For consumers, the
Company offers Paysign Premier. Public sector organizations can
utilize Paysign’s payment solutions to disburse public benefits or
for internal payments. Through the Paysign platform, it provides a
variety of services, including transaction processing, cardholder
enrollment, value loading, cardholder account management,
reporting, and customer service. Paysign has developed prepaid card
programs for corporate incentive and rewards, including, but not
limited to, consumer rebates and rewards, donor compensation,
demand deposit accounts accessible with a debit card, healthcare
reimbursement payments, and pharmaceutical payment assistance.
Paysign® is a registered trademark of Paysign, Inc. in the United
States and other countries. For more information visit us at
paysign.com, or follow us on Facebook, Twitter, and LinkedIn.
Forward-Looking Statements
Certain statements contained in this press release may be deemed
to be forward-looking statements under federal securities laws, and
the company intends that such forward-looking statements be subject
to the safe-harbor created thereby. All statements, other than
statements of fact, included in this release, are forward-looking
statements. Such forward-looking statements include, among others,
the company’s expected total revenue and Adjusted EBITDA for fiscal
2019; the company’s belief that it continues to experience gross
margin expansion and improved operating leverage during 2019; and,
the company’s optimism with respect to its future and its
commitment to the growth of both new and existing product lines. We
caution that these statements are qualified by important risks,
uncertainties, and other factors that could cause actual results to
differ materially from those reflected by such forward-looking
statements. Such factors include, among others, the risks detailed
from time to time in the company’s reports filed with the SEC,
including its Annual Report on Form 10-K for the fiscal year ended
December 31, 2018. Except to the extent required by federal
securities laws, the company 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 NINE MONTHS ENDED September 30, 2019 AND 2018 (Unaudited)
For the three months ended For the nine months ended
September 30, September 30,
2019
2018
2019
2018
Revenues
$
9,008,117
$
6,421,396
$
24,901,678
$
16,558,438
Cost of revenues
3,641,595
3,376,753
10,721,769
8,650,839
Gross profit
5,366,522
3,044,643
14,179,909
7,907,599
Operating expense Depreciation and amortization
318,508
284,124
1,047,779
780,203
Selling, general and administrative
2,765,961
1,996,957
8,483,882
5,244,278
Total operating expenses
3,084,469
2,281,081
9,531,661
6,024,481
Income from operations
2,282,053
763,562
4,648,248
1,883,118
Other income (expense) Other (expense)
-
-
-
(31,125
)
Interest income
113,667
36,683
364,652
90,298
Total other income, net
113,667
36,683
364,652
59,173
Income before income tax benefit and noncontrolling interest
2,395,720
800,245
5,012,900
1,942,291
Income tax benefit
(563,854
)
-
(556,068
)
-
Net income before income noncontrolling interest
2,959,574
800,245
5,568,968
1,942,291
Net loss attributable to noncontrolling interest
504
617
1,572
3,134
Net income attributable to Paysign, Inc.
$
2,960,078
$
800,862
$
5,570,540
$
1,945,425
Net income per common share - basic
$
0.06
$
0.02
$
0.12
$
0.04
Net income per common share - fully diluted
$
0.05
$
0.02
$
0.10
$
0.04
Weighted average common shares outstanding - basic
47,371,083
45,460,902
47,215,625
45,373,595
Weighted average common shares outstanding - fully diluted
54,291,368
52,215,970
54,588,470
51,985,074
PAYSIGN, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2019 and DECEMBER 31, 2018
September 30,
December 31,
2019
2018
(Unaudited) (Audited) ASSETS Current Assets Cash
$
7,988,803
$
5,615,073
Restricted cash
33,230,890
26,050,668
Accounts receivable
969,447
337,303
Prepaid expenses and other current assets
1,967,858
1,175,241
Total current assets
44,156,998
33,178,285
Fixed assets, net
1,004,425
883,490
Intangible assets, net
2,444,195
2,115,933
Total assets
$
47,605,618
$
36,177,708
LIABILITIES AND EQUITY Current liabilities Accounts
payable and accrued liabilities
$
1,463,686
$
1,327,497
Customer card funding
29,565,027
25,960,974
Total current liabilities
31,028,713
27,288,471
Total liabilities
31,028,713
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,
48,095,192 and 46,440,765 issued at September 30, 2019 and December
31, 2018, respectively
48,095
46,441
Additional paid-in-capital
10,737,190
8,620,144
Treasury stock at cost, 303,450 shares
(150,000
)
(150,000
)
Retained earnings
6,150,122
579,582
Total Paysign, Inc.'s stockholders' equity
16,785,407
9,096,167
Noncontrolling interest
(208,502
)
(206,930
)
Total equity
16,576,905
8,889,237
Total liabilities and equity
$
47,605,618
$
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. Adjusted
EBITDA, is a non-GAAP financial measure. Non-GAAP financial
measures should not be considered in isolation from, or as a
substitute for, or superior to, financial information presented in
compliance with GAAP, and non-GAAP financial measures as used by
the company may not be comparable to similarly titled measures used
by other companies. The company defines Adjusted EBITDA as net
income less the following cash and non-cash items: interest, taxes,
stock-based compensation, amortization, and depreciation.
The company believes this non-GAAP measure helps investors
better evaluate its past financial performance and potential future
results. Additionally, such measure helps compare the company’s
performance on a consistent basis across time periods. “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.
PAYSIGN, INC. RECONCILIATION OF ADJUSTED EBITDA TO NET
INCOME FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018
(Unaudited)
For the three months ended
For the nine months ended
September 30,
September 30,
2019
2018
2019
2018
Net income attributable to Paysign, Inc.
$
2,960,078
$
800,862
$
5,570,540
$
1,945,425
Income tax benefit
(563,854
)
-
(556,068
)
-
Interest
(113,667
)
(36,683
)
(364,652
)
(90,298
)
Depreciation and amortization
318,508
284,124
1,047,779
780,203
EBITDA
2,601,065
1,048,303
5,697,599
2,635,330
Stock-based compensation
651,267
405,921
1,865,887
755,503
Adjusted EBITDA
$
3,252,332
$
1,454,224
$
7,563,486
$
3,390,833
Non-GAAP EPS - basic
$
0.07
$
0.03
$
0.16
$
0.07
Non-GAAP EPS - fully diluted
$
0.06
$
0.03
$
0.14
$
0.07
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191105005741/en/
Paysign, Inc. Jim McCroy, 702-749-7269 Investor Relations
ir@paysign.com www.paysign.com
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