Points International Reports Record Preliminary Full Year 2019 Financial Results
January 21 2020 - 8:30AM
Points International Ltd. (TSX: PTS) (Nasdaq: PCOM) (Points or the
Company), the global leader in powering loyalty commerce, is
providing a preliminary update on its fourth quarter and full-year
2019 financial results.
Fourth-quarter 2019 gross profit1 is expected to be between
$17.3 and $17.7 million, with adjusted EBITDA2 ranging between $6.8
and $7.2 million, each quarterly records. These expected results
compare to $14.1 million of gross profit and $5.0 in adjusted
EBITDA in the fourth quarter of 2018.
For the full year, Points expects 2019 gross profit3 to range
between $59.2 and $59.6 million, with adjusted EBITDA ranging
between $21.1 and $21.5 million, both metrics within the company’s
previously issued annual guidance range.
“We are very pleased to have closed out 2019 with an exceptional
fourth quarter and expect to report quarterly records in both gross
profit and adjusted EBITDA,” said CEO Rob MacLean. “We continue to
drive this performance by executing on our three core growth
drivers – building robust pipelines and signing new partnerships,
up-selling and cross-selling existing partnerships, and driving
growth in existing services through advanced data analytics and
automated marketing initiatives. To further accelerate growth over
the mid-term, we remain focused on additional initiatives to expand
into new geographies and verticals, while actively pursuing
strategic partnerships or appropriate acquisitions to complement
and enhance our already robust capabilities.
“With multiple levers to drive growth and profitability, we look
forward to carrying our momentum into 2020 and delivering on our
long-term goal of exiting 2022 with gross profit in the high-$90
million range and adjusted EBITDA in the mid-$40 million
range.”
Points will report final fourth-quarter and full-year 2019
results and issue its 2020 outlook on March 4, 2020.
1 Gross profit is defined as total revenue less the direct cost
of revenue. Gross profit is considered by management to be an
integral measure of financial performance and represents the amount
of revenues retained by the Company after incurring direct costs.
However, gross profit is not a recognized measure of profitability
under IFRS.2 Adjusted EBITDA (Earnings before income tax expense,
depreciation and amortization, foreign exchange, finance costs and
equity-settled share-based compensation and other one-time costs or
benefits such as a tax rebate related to prior periods) is
considered by management to be a useful supplemental measure when
assessing financial performance. Management also believes that
adjusted EBITDA is an important indicator of the Company’s ability
to generate liquidity through operating cash flow to fund future
capital expenditures and working capital needs. However, adjusted
EBITDA is not a measure of financial performance under IFRS and
should not be considered a substitute for Net Income, which we
believe to be the most directly comparable IFRS measure.3 Full-year
gross profit adjusted for $6.0 million tax rebate related to prior
years recorded in direct cost of revenue in the second quarter of
2019.
About Points International Ltd.
Points, (TSX: PTS) (NASDAQ: PCOM), provides loyalty e-commerce
and technology solutions to the world's top brands to power
innovative services that drive increased loyalty program revenue
and member engagement. Currently, the Company has a growing network
of nearly 60 global loyalty programs integrated into its unique
Loyalty Commerce Platform. Points offers three core private or
co-branded services: its Loyalty Currency Retailing service sells
loyalty points and miles directly to consumers; its Platform
Partners service, which offers earn and redemption
opportunities via third-party or loyalty channels; and
its Points Travel service helps loyalty programs increase
revenue from hotel and car rental bookings while offering members
more opportunities to earn and redeem loyalty rewards more broadly.
Points is headquartered in Toronto, with offices in San
Francisco, London, Singapore, and Dubai.
For more information, visit company.points.com.
Caution Regarding Forward-Looking
Statements
This press release contains or incorporates forward-looking
statements within the meaning of United States securities
legislation, and forward-looking information within the meaning of
Canadian securities legislation (collectively, "forward-looking
statements"). These forward-looking statements include, among other
things, our expected performance for the full year and the fourth
quarter of 2019, our ability to deliver on our long-term goals for
2022, our ability to sign and launch new loyalty program
partnerships, our ability to sell additional products and services
to existing loyalty program partner, our core growth strategies,
and our initiatives to expand into new geographies and verticals.
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 actual results may differ materially from those
expressed or implied in such statements. Undue reliance should not
be placed on such statements. In particular, the financial outlooks
herein assume Points will be able to maintain its existing
contractual relationships and products, that such products continue
to perform in a manner consistent with Points' past experience,
that Points 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. Our ability
to convert our pipeline of prospective partners and products and
cross-sell existing partners is subject to significant risk and
there can be no assurance that we will launch new partners or new
products with existing partners as expected or planned nor can
there be any assurance that Points will be successful in
maintaining its existing contractual relationships or maintaining
existing products with existing partners. Other important risk
factors that could cause actual results to differ materially
include the risk factors discussed in Points' annual information
form, Form 40-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.
Non-GAAP Financial Measures
The Company’s financial statements are prepared in accordance
with International Financial Reporting Standards ("IFRS").
Management uses certain non-GAAP measures, which are defined in the
appropriate sections of this press release, to better assess the
Company’s underlying performance. These measures are reviewed
regularly by management and the Company's Board of Directors in
assessing the Company’s performance and in making decisions about
ongoing operations. In addition, we use certain non-GAAP measures
to determine the components of management compensation. We believe
that these measures are also used by investors as an indicator of
the Company’s operating performance. Readers are cautioned that
these terms are not recognized GAAP measures and do not have a
standardized GAAP meaning under IFRS and should not be construed as
alternatives to IFRS terms, such as net income.
The Company will provide a full reconciliation of these non-GAAP
measures when the Company reports its fourth-quarter and full-year
2019 results on March 4, 2020.
Investor Relations Contact
Sean Mansouri, CFA or Cody SlachGateway Investor Relations
1-949-574-3860IR@points.com
Points.com (TSX:PTS)
Historical Stock Chart
From May 2024 to Jun 2024
Points.com (TSX:PTS)
Historical Stock Chart
From Jun 2023 to Jun 2024