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 |
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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