Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Planet Payment Inc | plpm_currentfolio8k.htm |
Exhibit 99.01
Planet Payment Announces Fourth Quarter and Year Ended 2016 Results
LONG BEACH, N.Y., March 8, 2017 — Planet Payment, Inc. (NASDAQ:PLPM), a provider of international payment and transaction processing and multi-currency processing services, today announced its results for the fourth quarter and year ended December 31, 2016.
Financial Highlights for the Fourth Quarter Ended December 31, 2016
|
· |
Total revenue for the quarter was $13.9 million, compared to $15.4 million for 2015. |
|
· |
Net income for the quarter was $19.8 million, compared to $6.7 million for 2015. Included in net income for Q4 2016 and Q4 2015 is a benefit to our income tax provision of $16.5 million and $4.8 million, respectively, due in large part to the reversal of a portion of our deferred tax asset valuation allowance. Excluding this effect net income for Q4 2016 and Q4 |
2015 would have been $3.3 million and $1.9 million, respectively.
|
· |
Diluted net income per share for the quarter was $0.36, compared to $0.11 for 2015. Included in diluted net income per share for Q4 2016 and Q4 2015 is a benefit to our income tax provision of $0.30 per share and $0.08 per share, respectively, due in large part to the reversal of a portion of our deferred tax asset valuation allowance. Excluding this effect diluted net income per share for Q4 2016 and Q4 2015 would have been $ 0.06 and $0.03, respectively. |
|
· |
Adjusted EBITDA for the quarter increased 22% to $4.8 million, compared to $3.9 million for 2015. |
Financial Highlights for the Year Ended December 31, 2016
|
· |
Total revenue for the year was $54.3 million, compared to $52.8 million for 2015. |
|
· |
Net income for the year was $25.1 million compared to $10.4 million for 2015. Included in net income for 2016 and 2015 is a benefit to our income tax provision of $16.5 million and $4.8 million, respectively, due in large part to the reversal of a portion of our deferred tax asset valuation allowance. Excluding this effect, net income for 2016 and 2015 would have been $8.6 million and $5.6 million, respectively. |
|
· |
Diluted net income per share for the year was $0.44, compared to $0.17 for 2015. Included in diluted net income per share for 2016 and 2015 is a benefit to our income tax provision of $0.29 per share and $0.08 per share, respectively, due in large part to the reversal of a portion of our deferred tax asset valuation allowance. Excluding this effect diluted net income per share for 2016 and 2015 would have been $0.15 and $0.09, respectively. |
|
· |
Adjusted EBITDA for the year grew 26% to $14.6 million, compared to $11.6 million for 2015. |
Refer to Table 1 for reconciliation of net income to Adjusted EBITDA (a non-GAAP measure).
Operational Highlights
|
· |
Launched UnionPay Card Acceptance with United Airlines |
|
· |
Partnership with UATP to support UnionPay Card Acceptance for UATP’s network of airlines and travel agents |
|
· |
Launched Pay in Your Currency® and completed development of Multi-Currency Pricing with Moneris Solutions Corporation in Canada |
|
· |
Entered into the Colombian market by launching Pay in Your Currency® with Redeban Multicolor |
|
· |
Expanded into a new market with launch of Pay in Your Currency® with Ahli United Bank and Network International in Bahrain |
|
· |
Commenced commercial roll out of Pay in Your Currency® with HDFC Bank in India |
|
· |
Launched DCC at ATMs with CIMB Bank in Malaysia |
|
· |
Announced agreement with WorldPay to launch DCC at ATMs in the US |
|
· |
Signed contract extensions with Mashreq in United Arab Emirates and Bank of Communications in China |
Outlook for Fiscal Year 2017
|
· |
Net revenue for the year is estimated to be in the range of $60.1 million and $61.5 million. |
|
· |
Net income for the year is estimated to be in the range of $11.8 million and $12.8 million. The guidance for net income assumes an effective tax rate of approximately 10.0% and does not assume a further reduction in our tax valuation allowance. |
|
· |
Adjusted EBITDA for the year is estimated to be in the range of $17.0 million and $18.0 million (see Table 3 for reconciliation of prospective net income to Adjusted EBITDA). |
|
· |
Fully diluted earnings per share are estimated to be in the range of $0.21 and $0.22 based on 52.0 million fully-diluted common shares outstanding. |
“I am pleased with our performance in 2016, and our prospects for 2017,” said Carl Williams, Chairman and Chief Executive Officer of Planet Payment. “With strengthening global travel trends, multiple business wins, improving EBITDA and gross profit, I feel strongly that our progress will continue in 2017 and beyond.”
Results of 2016 Stock Repurchase Program and Tender Offer
For the year ended December 31, 2016, the total amount of common stock repurchased under the program and the tender offer was 6.8 million shares for an aggregate price of $23.8 million.
Conference Call
The Company will host a conference call to discuss Fourth Quarter and Year-End 2016 financial results today at 5:00 pm New York time. Carl J. Williams, Chairman and Chief Executive Officer, Robert Cox, President and Chief Operating Officer, and Raymond D’Aponte, Chief Financial Officer, will host the call. The call will be webcast live from the Company’s investor relations website at http://ir.planetpayment.com/. The conference call can also be accessed live over the phone by dialing (877) 407-3982, or for international callers (201) 493-6780. A replay will be available approximately two hours after the call concludes and can be accessed on our website or by dialing (844) 512-2921, or for international callers (412) 317-6671, and entering the conference ID 1365463. The replay will be available until our next earnings call on our website or via telephone until March 16, 2017.
Additional analysis of the Company’s performance can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Annual Report on Form 10-K for the Fiscal Year ended December 31, 2016 to be filed at www.sec.gov and posted on the Company’s investor relations website.
About Planet Payment
Planet Payment is a provider of international payment and transaction processing and multi-currency processing services. The Company provides its services to approximately 189,000 active merchant locations in 22 countries and territories across the Asia Pacific region, the Americas, the Middle East, Africa and Europe, primarily through its acquiring bank and processor customers, as well as through its own direct sales force. Our point-of-sale and e-commerce services help merchants sell more goods and services to consumers, and together with our ATM services, are integrated within the payment card transaction flow, enabling our acquiring customers, their merchants and consumers to shop, pay, transact and reconcile payment transactions in multiple currencies, geographies and channels.
Notice Regarding Forward-Looking Statements.
Information contained in this announcement may include “forward-looking statements.” All statements other than statements of historical facts included herein, including, without limitation, those regarding the financial position, business strategy, plans and objectives of management for future operations of both Planet Payment and its business partners, net revenue, net income, Adjusted EBITDA, diluted earnings per share, future service launches with customers and new initiatives and customer pipeline are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding Planet Payment’s present and future business strategies, and the environment in which Planet Payment expects to operate in the future, which assumptions may or may not be fulfilled in practice. Implementation of some or all of the new services referred to is subject to regulatory or other third party approvals. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of risk factors, including the risk that implementation, adoption and offering of the service by processors, acquirers, merchants and others may take longer than anticipated, or may not occur at all; regulatory changes and changes in card association regulations and practices; changes in domestic and international economic conditions; and changes in volume of international travel and commerce and others. Additional risks may arise with respect to commencing operations in new countries and regions, of which Planet Payment is not fully aware at this time. See the Company’s Annual Report Form 10-K for the Fiscal Year ended December 31, 2016 to be filed at www.sec.gov for other risk factors which investors should consider. These forward-looking statements speak only as to the date of this announcement and cannot be relied upon as a guide to future performance. Planet Payment expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in its expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.
Enquiries:
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Planet Payment, Inc. Raymond D’Aponte (CFO) |
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Tel: + 1 516 670 3200 www.planetpayment.com |
Non-GAAP Financial Information
The Company provides certain non-GAAP financial measures in this statement. Management believes that Adjusted EBITDA, when viewed with our results under GAAP and the accompanying reconciliations, provides useful information about our period-over-period results. Adjusted EBITDA is presented because management believes it provides additional information with respect to the performance of our fundamental business activities and is also frequently used by securities analysts, investors and other interested parties in the evaluation of comparable companies. We also rely on Adjusted EBITDA as a primary measure to review and assess the operating performance of our company and our management team in connection with our executive compensation. These non-GAAP key business indicators, which include Adjusted EBITDA, should not be considered replacements for and should be read in conjunction with the GAAP financial measures.
We define Adjusted EBITDA as GAAP net income adjusted to exclude: (1) interest expense, (2) interest income, (3) provision for income taxes, (4) depreciation and amortization, (5) stock-based compensation expense and (6) certain other items management believes affect the comparability of operating results. Please see “Adjusted EBITDA” below for more information and for a reconciliation of Adjusted EBITDA to net income, the most directly comparable financial measure calculated and presented in accordance with GAAP.
Table 1. Reconciliation of Net Income to Adjusted EBITDA
For the three months and year ended December 31, 2016 and 2015
|
|
|
Three Months Ended |
|
Year ended |
||||||||
|
|
|
December 31, |
|
December 31, |
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
|
2015 |
|||
|
ADJUSTED EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
19,803,561 |
|
$ |
6,669,523 |
|
$ |
25,072,002 |
|
$ |
10,362,448 |
|
Interest expense |
|
|
87,507 |
|
|
18,760 |
|
|
273,873 |
|
|
57,575 |
|
Interest income |
|
|
(513) |
|
|
(396) |
|
|
(1,763) |
|
|
(1,579) |
|
Benefit for income taxes (1) |
|
|
(16,105,607) |
|
|
(4,278,766) |
|
|
(15,429,656) |
|
|
(3,970,360) |
|
Depreciation and amortization |
|
|
573,600 |
|
|
924,770 |
|
|
2,399,392 |
|
|
3,099,990 |
|
Stock-based compensation expense |
|
|
322,046 |
|
|
613,415 |
|
|
1,820,404 |
|
|
1,774,232 |
|
Restructuring charges |
|
|
149,752 |
|
|
— |
|
|
504,141 |
|
|
283,726 |
|
Adjusted EBITDA (non-GAAP) |
|
$ |
4,830,346 |
|
$ |
3,947,306 |
|
$ |
14,638,393 |
|
$ |
11,606,032 |
|
(1) |
For the three months and years ended December 31, 2016 and 2015, our benefit for income taxes includes a tax benefit of $16.5 million and $4.8 million, respectively, which primarily related to a reversal of our tax valuation allowance. |
Table 2. Explanation of Key Metrics
|
|
|
Three Months Ended |
|
Year ended |
|
||||||||
|
|
|
December 31, |
|
December 31, |
|
||||||||
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KEY METRICS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total active merchant locations (at period end)(1) |
|
|
189,139 |
|
|
118,019 |
|
|
189,139 |
|
|
118,019 |
|
|
Total settled transactions processed(2) |
|
|
47,018,256 |
|
|
64,545,273 |
|
|
191,562,026 |
|
|
227,477,823 |
|
|
Total settled dollar volume processed(3) |
|
$ |
2,151,165,506 |
|
$ |
2,202,741,628 |
|
$ |
8,182,526,775 |
|
$ |
8,263,216,174 |
|
|
Adjusted EBITDA (non-GAAP)(4) |
|
$ |
4,830,346 |
|
$ |
3,947,306 |
|
$ |
14,638,393 |
|
$ |
11,606,032 |
|
|
Capitalized expenditures |
|
$ |
813,408 |
|
$ |
310,132 |
|
$ |
2,083,100 |
|
$ |
1,396,998 |
|
|
Multi-currency processing services key metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active merchant locations (at period end)(1) |
|
|
119,538 |
|
|
44,748 |
|
|
119,538 |
|
|
44,748 |
|
|
Settled transactions processed(5) |
|
|
5,131,212 |
|
|
4,231,207 |
|
|
17,476,173 |
|
|
14,854,066 |
|
|
Settled dollar volume processed(6) |
|
$ |
814,948,374 |
|
$ |
869,971,939 |
|
$ |
2,855,777,021 |
|
$ |
2,856,768,185 |
|
|
Average net mark-up percentage on settled dollar volume processed(7) |
|
|
1.14 |
% |
|
1.14 |
% |
|
1.19 |
% |
|
1.15 |
% |
|
Payment processing services key metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active merchant locations (at period end)(1) |
|
|
71,092 |
|
|
74,997 |
|
|
71,092 |
|
|
74,997 |
|
|
Payment processing services revenue(8) |
|
$ |
4,608,630 |
|
$ |
5,452,890 |
|
$ |
20,249,444 |
|
$ |
19,351,649 |
|
|
Settled transactions processed(9) |
|
|
42,307,947 |
|
|
60,460,335 |
|
|
175,059,209 |
|
|
213,093,249 |
|
|
Settled dollar volume processed(10) |
|
$ |
1,400,040,412 |
|
$ |
1,364,131,250 |
|
$ |
5,489,967,884 |
|
$ |
5,472,138,032 |
|
|
(1) |
We consider a merchant location to be active as of a date if the merchant completed at least one revenue-generating transaction at the location during the 90-day period ending on such date. The total number of active merchant locations exceeds the total number of merchants, as merchants may have multiple locations. As of December 31, 2016 and 2015, there were 1,491 and 1,726 active merchant locations, respectively, included in both multi-currency and payment processing active merchant locations but are not included in total active merchant locations, in order to eliminate counting these locations twice. |
|
(2) |
Represents total settled transactions (excluding other transaction types such as authorizations and rate look-ups). |
|
(3) |
Represents total settled dollar volume processed through both our multi-currency and payment processing services. |
|
(4) |
We define Adjusted EBITDA as GAAP net income adjusted to exclude (1) interest expense, (2) interest income, (3) (benefit) provision for income taxes, (4) depreciation and amortization, (5) stock-based compensation expense and (6) certain other items management believes affect the comparability of operating results. Please see “—Adjusted EBITDA” in the 10-K filing for more information and for a reconciliation of Adjusted EBITDA to net income, the most directly comparable financial measure calculated and presented in accordance with GAAP. |
|
(5) |
Represents settled transactions processed using our multi-currency processing services (excluding other transaction types such as authorizations and rate look-ups). |
|
(6) |
Represents the total settled dollar volume processed using our multi-currency processing services. |
|
(7) |
Represents the average net foreign currency mark-up percentage earned on settled dollar volume processed using our multi-currency processing services. The average net mark-up percentage on settled dollar volume processed is calculated by taking total multi-currency processing services net revenue ($34.0 million and $32.8 million for the years ended December 31, 2016 and 2015, respectively) and dividing by settled dollar volume processed (see footnote 6 above). For purposes of calculating “Average net mark-up percentage on settled dollar volume processed,” multi-currency processing services revenue includes revenue related to multi-currency transactions only. |
|
(8) |
Represents revenue earned and reported on payment processing services. |
|
(9) |
Represents settled transactions processed using our payment processing services (excluding other transaction types such as authorizations and rate look-ups). |
|
(10) |
Represents the total settled dollar volume processed using our payment processing services. |
Table 3. Reconciliation of Prospective Net Income to Adjusted EBITDA
For the year ending December 31, 2017
|
|
|
Range |
||||
|
|
|
Millions |
||||
|
ADJUSTED EBITDA: |
|
|
Low |
|
|
High |
|
Net income |
|
$ |
11.8 |
|
$ |
12.8 |
|
Interest expense, net |
|
|
0.3 |
|
|
0.3 |
|
Provision for income taxes |
|
|
1.3 |
|
|
1.3 |
|
Depreciation and amortization |
|
|
2.2 |
|
|
2.2 |
|
Stock-based compensation expense |
|
|
1.4 |
|
|
1.4 |
|
Adjusted EBITDA (non-GAAP) |
|
$ |
17.0 |
|
$ |
18.0 |
Planet Payment, Inc.
Condensed Consolidated Balance Sheets
|
|
|
As of |
|
As of |
||
|
|
|
December 31, |
|
December 31, |
||
|
|
|
2016 |
|
2015 |
||
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
13,305,816 |
|
$ |
14,675,515 |
|
Restricted cash |
|
|
4,981,472 |
|
|
5,050,147 |
|
Accounts receivable, net of allowances of $0.1 million as of December 31, 2016 and December 31, 2015 |
|
|
6,060,533 |
|
|
6,406,496 |
|
Prepaid expenses and other assets |
|
|
1,940,544 |
|
|
1,800,566 |
|
Total current assets |
|
|
26,288,365 |
|
|
27,932,724 |
|
Other assets: |
|
|
|
|
|
|
|
Restricted cash |
|
|
550,402 |
|
|
551,917 |
|
Property and equipment, net |
|
|
1,674,410 |
|
|
1,811,619 |
|
Software development costs, net |
|
|
4,197,142 |
|
|
3,964,454 |
|
Intangible assets, net |
|
|
827,474 |
|
|
1,378,264 |
|
Goodwill |
|
|
276,786 |
|
|
286,852 |
|
Deferred tax asset |
|
|
22,673,206 |
|
|
6,206,313 |
|
Other long-term assets |
|
|
2,095,817 |
|
|
2,374,769 |
|
Total other assets |
|
|
32,295,237 |
|
|
16,574,188 |
|
Total assets |
|
$ |
58,583,602 |
|
$ |
44,506,912 |
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
830,479 |
|
$ |
306,520 |
|
Accrued expenses |
|
|
5,353,735 |
|
|
6,438,600 |
|
Due to merchants |
|
|
5,199,390 |
|
|
5,240,427 |
|
Current portion of capital leases |
|
|
166,966 |
|
|
290,911 |
|
Total current liabilities |
|
|
11,550,570 |
|
|
12,276,458 |
|
Long-term liabilities: |
|
|
|
|
|
|
|
Long-term debt |
|
|
9,916,000 |
|
|
— |
|
Other long-term liabilities |
|
|
854,991 |
|
|
1,666,938 |
|
Total long-term liabilities |
|
|
10,770,991 |
|
|
1,666,938 |
|
Total liabilities |
|
|
22,321,561 |
|
|
13,943,396 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
Convertible preferred stock—10,000,000 shares authorized as of December 31, 2016 and December 31, 2015, $0.01 par value: Series A—1,535,398 issued and outstanding as of December 31, 2016 and 2,243,750 issued and outstanding as of December 31, 2015; $6,141,592 and $8,975,000 aggregate liquidation preference as of December 31, 2016 and December 31, 2015, respectively |
|
|
15,354 |
|
|
22,438 |
|
Common stock—250,000,000 shares authorized as of December 31, 2016 and December 31, 2015, $0.01 par value, and 59,666,333 issued and 49,290,979 shares outstanding as of December 31, 2016, and 56,191,389 issued and 52,585,503 shares outstanding as of December 31, 2015 |
|
|
596,663 |
|
|
561,914 |
|
Treasury stock, at cost, 10,375,354 shares and 3,605,886 shares as of December 31, 2016 and December 31, 2015, respectively |
|
|
(31,726,486) |
|
|
(7,883,012) |
|
Additional paid-in capital |
|
|
111,327,321 |
|
|
106,741,026 |
|
Accumulated other comprehensive loss |
|
|
(654,408) |
|
|
(510,445) |
|
Accumulated deficit |
|
|
(43,296,403) |
|
|
(68,368,405) |
|
Total stockholders’ equity |
|
|
36,262,041 |
|
|
30,563,516 |
|
Total liabilities and stockholders’ equity |
|
$ |
58,583,602 |
|
$ |
44,506,912 |
Planet Payment, Inc.
Condensed Consolidated Statements of Operations
|
|
Three months ended |
|
Year ended |
|
||||||||
|
|
December 31, |
|
December 31, |
|
||||||||
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
$ |
13,928,279 |
|
$ |
15,380,546 |
|
$ |
54,337,407 |
|
$ |
52,815,088 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment processing service fees |
|
2,242,804 |
|
|
3,032,481 |
|
|
10,450,006 |
|
|
10,903,660 |
|
|
Processing and service costs |
|
2,798,472 |
|
|
4,460,974 |
|
|
12,701,351 |
|
|
14,860,804 |
|
|
Total cost of revenue |
|
5,041,276 |
|
|
7,493,455 |
|
|
23,151,357 |
|
|
25,764,464 |
|
|
Selling, general and administrative expenses |
|
4,952,303 |
|
|
5,567,464 |
|
|
20,860,469 |
|
|
20,408,308 |
|
|
Restructuring charges |
|
149,752 |
|
|
— |
|
|
504,141 |
|
|
283,726 |
|
|
Total operating expenses |
|
10,143,331 |
|
|
13,060,919 |
|
|
44,515,967 |
|
|
46,456,498 |
|
|
Income from operations |
|
3,784,948 |
|
|
2,319,627 |
|
|
9,821,440 |
|
|
6,358,590 |
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(87,507) |
|
|
(18,760) |
|
|
(273,873) |
|
|
(57,575) |
|
|
Interest income |
|
513 |
|
|
396 |
|
|
1,763 |
|
|
1,579 |
|
|
Other income |
|
— |
|
|
89,494 |
|
|
93,016 |
|
|
89,494 |
|
|
Total other income (expense), net |
|
(86,994) |
|
|
71,130 |
|
|
(179,094) |
|
|
33,498 |
|
|
Income from operations before benefit for income taxes |
|
3,697,954 |
|
|
2,390,757 |
|
|
9,642,346 |
|
|
6,392,088 |
|
|
Benefit for income taxes |
|
16,105,607 |
|
|
4,278,766 |
|
|
15,429,656 |
|
|
3,970,360 |
|
|
Net income |
$ |
19,803,561 |
|
$ |
6,669,523 |
|
$ |
25,072,002 |
|
$ |
10,362,448 |
|
|
Basic net income per share applicable to common stockholders |
$ |
0.37 |
|
$ |
0.11 |
|
$ |
0.46 |
|
$ |
0.17 |
|
|
Diluted net income per share applicable to common stockholders |
$ |
0.36 |
|
$ |
0.11 |
|
$ |
0.44 |
|
$ |
0.17 |
|
|
Weighted average common stock outstanding (basic) |
|
48,421,891 |
|
|
51,833,492 |
|
|
49,472,512 |
|
|
52,545,934 |
|
|
Weighted average common stock outstanding (diluted) |
|
50,370,663 |
|
|
52,953,205 |
|
|
51,560,798 |
|
|
53,271,248 |
|
Planet Payment, Inc.
Condensed Consolidated Statements of Cash Flows
|
|
|
December 31, |
||||
|
|
|
2016 |
|
2015 |
||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
Net income |
|
$ |
25,072,002 |
|
$ |
10,362,448 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
1,820,404 |
|
|
1,811,156 |
|
Depreciation and amortization expense |
|
|
2,657,255 |
|
|
3,099,990 |
|
Provision for doubtful accounts |
|
|
62,681 |
|
|
8,388 |
|
Deferred tax benefit |
|
|
(16,466,893) |
|
|
(5,478,818) |
|
Loss on disposal of property and equipment |
|
|
500 |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Decrease (increase) in settlement assets |
|
|
91,162 |
|
|
(957,909) |
|
Decrease (increase) in accounts receivables, prepaid expenses and other current assets |
|
|
330,610 |
|
|
346,422 |
|
Decrease (increase) in other long-term assets |
|
|
529,213 |
|
|
911,138 |
|
(Decrease) increase in accounts payable and accrued expenses |
|
|
(2,678,860) |
|
|
1,292,718 |
|
(Decrease) increase in due to merchants |
|
|
(63,524) |
|
|
963,550 |
|
Other |
|
|
(130,611) |
|
|
(172,661) |
|
Net cash provided by operating activities |
|
|
11,223,939 |
|
|
12,186,422 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
Increase in restricted cash |
|
|
(20,972) |
|
|
(44,501) |
|
Increase (decrease) in merchant reserves |
|
|
22,487 |
|
|
(75,322) |
|
Purchase of property and equipment |
|
|
(437,308) |
|
|
(183,090) |
|
Capitalized software development |
|
|
(1,294,129) |
|
|
(1,102,765) |
|
Purchase of intangible assets |
|
|
(16,300) |
|
|
(20,979) |
|
Net cash used for investing activities |
|
|
(1,746,222) |
|
|
(1,426,657) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
Proceeds from exercise of stock options |
|
|
3,420,957 |
|
|
1,657,591 |
|
Principal payments on capital lease obligations |
|
|
(340,899) |
|
|
(519,223) |
|
Borrowings under credit facility |
|
|
13,916,000 |
|
|
— |
|
Repayments under credit facility |
|
|
(4,000,000) |
|
|
— |
|
Purchase of treasury stock |
|
|
(23,843,474) |
|
|
(7,060,409) |
|
Net cash used for financing activities |
|
|
(10,847,416) |
|
|
(5,922,041) |
|
Effect of exchange rate changes on cash and cash equivalents(*) |
|
|
— |
|
|
— |
|
Net (decrease) increase in cash and cash equivalents |
|
|
(1,369,699) |
|
|
4,837,724 |
|
Cash and cash equivalents at beginning of period |
|
|
14,675,515 |
|
|
9,837,791 |
|
Cash and cash equivalents at end of period |
|
$ |
13,305,816 |
|
$ |
14,675,515 |
|
Supplemental disclosure: |
|
|
|
|
|
|
|
Cash paid for: |
|
|
|
|
|
|
|
Interest |
|
$ |
247,138 |
|
$ |
33,499 |
|
Income taxes |
|
|
1,027,864 |
|
|
765,380 |
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
|
Common stock issued for preferred stock conversion |
|
|
21,629 |
|
|
— |
|
Common stock issued for stock options exercised |
|
|
152 |
|
|
184 |
|
Assets acquired under capital leases |
|
|
122,630 |
|
|
156,129 |
|
Accrued capitalized hardware, software and fixed assets |
|
|
307,660 |
|
|
57,163 |
|
Capitalized stock-based compensation |
|
|
27,703 |
|
|
33,001 |
(*)For the years ended December 31, 2016 and 2015, the effect of exchange rate changes on cash and cash equivalents was immaterial.