- Software Revenue Grows by 71% Year over Year
-
TORONTO, April 25, 2017 /CNW/ - VersaPay
Corporation (TSXV: VPY) ("VersaPay" or the "Company"), a
leading provider of cloud-based invoicing, accounts receivable
management and payment solutions, today announced fourth
quarter ("Q4") financial results for the three and twelve-month
periods ended December 31, 2016.
"With the sale of our POS Merchant Services business in January,
this is the first time we are reporting our results as a pure
cloud-based software company in the fintech space," said
Craig O'Neill, CEO of VersaPay. "We
are pleased with the healthy level of growth in ARCTM
revenues, up 71% year over year with 90 suppliers signed on to the
platform and 73 live at the close of the quarter. We are also
pleased to report the channel partnerships that we launched in Q4
have built good pipelines and we expect them to contribute to our
revenue growth in 2017." Mr. O'Neill continued, "As we
indicated at the time of the sale transaction, while the
divestiture of our POS Merchant Services business meant selling off
much of our existing revenue base, the sale provided the capital to
allow the Company to focus on its core software business, which has
higher growth potential. Our Q4 results have been adjusted to
show the effect of the sale, and the higher revenue growth rate and
gross margin are indicators of the trajectory the software business
is on to start the 2017 year. With increased focus and
capital, and with our channel partners now operational, we expect
this trajectory to increase in the coming quarters."
Financial Highlights:
The following highlights treat the Company's POS Merchant
Services business as a discontinued operation.
- Revenue for Q4 2016 increased by 56.4% to $0.47 million compared to $0.30 million in Q4 2015.
- Revenue for the twelve months ended December 31, 2016 increased by 70.5% to
$1.51 million compared to
$0.89 million for the twelve months
ended December 31, 2015.
- Gross margin percentage for Q4 2016 was 54.5%, compared to
46.6% in Q4 2015.
- Gross margin percentage for the twelve months ended
December 31, 2016 was 54.3%, compared
to 37.2% for the twelve months ended December 31, 2015.
- Adjusted EBITDA(1) was ($1.59) million in Q4 2016, compared to
($1.14) million in Q4 2015.
- Adjusted EBITDA was ($5.01)
million for the twelve months ended December 31, 2016, compared to ($4.54) million for the twelve months ended
December 31, 2015, in accordance with
the Company's plans to invest in its software business.
- Net earnings from discontinued operations was $0.15 million in Q4 2016, compared to
$0.46 million in Q4 2015.
- Net earnings from discontinued operations was $1.43 million for the twelve months ended
December 31, 2016, compared to
$1.81 million for the twelve months
ended December 31, 2015.
- Total comprehensive loss for Q4 2016 was ($1.82) million compared to a loss of
($1.23) million for Q4 2015.
- Total comprehensive loss for the twelve-months ended
December 31, 2016 was ($5.93) million compared to a loss of
($5.34) million for the twelve months
ended December 31, 2015, in keeping
with the Company's plans to invest in its software business.
- Cash operating expense for the twelve-months ended December 31, 2016 decreased by 3.7% to
$6.00 million compared to
$6.23 million for the twelve-months
ended December 31, 2015.
- As at December 31, 2016, the
Company had cash on hand of $2.75
million compared to $3.34
million as at December 31,
2015. This does not include cash proceeds of $10 million from the sale of the Company's POS
Merchant Services business which was completed in January 2017.
(1) Adjusted EBITDA is defined as earnings before interest,
taxes, depreciation, amortization, share-based payments, other
income and expense, and other comprehensive income. Adjusted EBITDA
is a non-IFRS financial measure which does not have any
standardized meaning prescribed by IFRS and is therefore unlikely
to be comparable to similar measures presented by other
issuers. It should not be considered in isolation as a
substitute for measures of performance prepared in accordance with
IFRS. Please refer to the Company's management's discussion and
analysis for the quarter ended December
31, 2016 for further information on the Company's use of
Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net
earnings.
Conference Call Details:
Date: Wednesday, April 26,
2017
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local – Toronto (+1) 416 764
8609
Toll Free – North America (+1) 888
390 0605
Conference ID: 13170349
Recording Playback Numbers:
Toronto (+1) 416 764 8677
Toll Free – North America (+1) 888
390 0541
Passcode: 170349 #
Expiry Date: Wednesday, May 3, 2017
11:59 PM
A live audio webcast and archive of the conference call will be
available by visiting the Company's website
at http://www.versapay.com/company/investor-relations/. Please
connect at least 15 minutes prior to the conference call to ensure
time for any software download that may be needed to hear the
webcast.
About VersaPay
VersaPay is a leading cloud-based invoice presentment and
payment provider for businesses of all sizes. VersaPay's
ARCTM software-as-a-service offering allows businesses
to easily deliver customized electronic invoices to their
customers, to accept credit card and EFT payments and automatically
reconcile payments to their ERP and accounting software. VersaPay
is headquartered in Toronto,
Canada and has operations in Montreal.
More information about VersaPay can be found on the Company's
website at www.versapay.com or under the Company's profile on SEDAR
at www.sedar.com.
Forward Looking and Other Cautionary Statements
This news release contains "forward-looking information" which
may include, but is not limited to, statements with respect to the
activities, events or developments that the Company expects or
anticipates will or may occur in the future. Such
forward-looking information is often, but not always, identified by
the use of words and phrases such as "plans," "expects," "is
expected," "budget," "scheduled," "estimates," "forecasts,"
"intends," "anticipates," or "believes" or variations (including
negative variations) of such words and phrases, or state that
certain actions, events or results "may," "could," "would," "might"
or "will" be taken, occur or be achieved.
These forward-looking statements, and any assumptions upon which
they are based, are made in good faith and reflect our current
judgment regarding the direction of the Company's business.
Management believes that these assumptions are reasonable.
Forward-looking information involves known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking information. Such
factors include, among others, risks related to the speculative
nature of the Company's business, the Company's formative stage of
development and the Company's financial position.
Forward-looking statements contained herein are made as of the
date of this news release and the Company disclaims any obligation
to update any forward-looking statements, whether as a result of
new information, future events or results, except as may be
required by applicable securities laws. There can be no assurance
that forward-looking information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE VersaPay Corporation