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Planet Payment Inc. PPT 3rd Quarter Results



  Planet Payment Inc. (PPT) - 3rd Quarter Results

RNS Number : 0535S
Planet Payment Inc.
27 November 2012
 



 

Date:                            27 November 2012

On behalf of:                 Planet Payment,  Inc. ("the Company" or  "Planet 
Payment")

Embargoed until:            0700hrs

 

 

              Planet Payment Reports Third Quarter 2012 Results

                      Provides Update on NASDAQ Listing

 

 

Planet Payment, Inc. (UK: LSE: AIM: PPT and PPTR; USA: OTCQX: PLPM), a leading
provider of  international payment  processing and  multi-currency  processing 
services, today announced  its results  for the  three and  nine months  ended 
September 30, 2012.

 

Financial Highlights for the Three Months Ended September 30, 2012 ("Q3 2012")

·     Net revenue for the period increased approximately 3% to $9.9m [Q3 2011:
$9.7m].

·     Consolidated Gross Billings increased  10% to $26.3m [Q3 2011:  $23.9m]. 
(See Table 2 for explanation of this metric).

·     Gross  Foreign  Currency  Mark-up  increased 12%  to  $22.9m  [Q3  2011: 
$20.5m]. (See Table 2 for explanation of this metric).

·     Net loss increased from $(0.4)m  to $(4.0)m, primarily due to  expensing 
of deferred IPO costs of $2.6m.

·     Adjusted EBITDA for the period decreased to $(0.4)m [Q3:2011 $0.6m]. See
Table 1 for reconciliation of net (loss) income to Adjusted EBITDA.

 

Financial Highlights for the Nine Months Ended September 30, 2012 ("YTD" 2012)

·     Net revenue  for the period  increased approximately 7%  to $31.7m  [YTD 
2011: $29.5m].

·     Consolidated Gross Billings increased 18% to $83.9m [YTD 2011: $70.9m].

·     Gross  Foreign  Currency Mark-up  increased  21% to  $73.1m  [YTD  2011: 
$60.7m].

·     Net income (loss) decreased from $0.6m to $(4.3)m.

·     Adjusted EBITDA for the period decreased 53% to $1.5m [YTD 2011 $3.2m].

 

Operational Highlights for the YTD 2012

·     Total active merchant locations increased by 51% to approximately 38,000
as of  September 30,  2012 [September  30, 2011:  approximately 25,000].  (See 
Table 2 for explanation of this metric).

·     Settled multi-currency dollar volume processed increased 3% to $572m [Q3
2011: $555m].  YTD increase was 17% to $1.9b [YTD 2011: $1.6b].

·      Entered  into  a  number  of  new  contracts,  notably   multi-currency 
processing agreements with  Taishin Bank in  Taiwan and Mashreq  in UAE and  a 
processing agreement with China Unionpay.

·     Launched Pay in  Your Currency^® services  with Global Payments  Canada, 
Vantiv ATMs  in  the United  States,  Mashreq UAE,  Citibank  Philippines  and 
Citibank Hong Kong  and our MICROS  Payment Gateway solution  with Banorte  in 
Mexico.

 

Our results reflect a 51% increase in active merchant locations over the  last 
twelve months and  growth of 10%  and 12% in  Consolidated Gross Billings  and 
Gross Foreign  Currency Mark-up  respectively  in the  third quarter  of  2012 
compared to the  same period in  2011.  The growth  in our financial  results, 
however, was muted by a number  of factors.  The poor economic climate,  which 
our merchants and their  customers are facing,  led to a  decline in sales  of 
goods and services by merchants using our services, which negatively  impacted 
our net revenue.  The net loss  in the third  quarter primarily resulted  from 
expensing previously  deferred  IPO  costs  of  $2.3  m  associated  with  our 
registration statement on Form S-1, as well as IPO costs incurred in the third
quarter for a total  amount of $2.6  m.  The increase  in our operating  costs 
compared to  2011  primarily  reflects additions  to  technology  and  support 
personnel to invest in the growth of the business and future launches into new
markets including Mexico and  Brazil.  We believe that  the growth in the  key 
operating metrics of  active merchant locations,  Consolidated Gross  Billings 
and Gross Foreign Currency Mark-up  are indicative of the underlying  strength 
of our business.

 

During the  third  quarter of  2012,  we  continued to  expand  our  acquiring 
customer base,  in particular  announcing an  agreement with  Taishin Bank  to 
provide our  Pay  in  Your  Currency^® service  to  the  bank's  portfolio  of 
merchants in Taiwan and the launch of Pay in Your Currency^® with Mashreq Bank
in the United Arab  Emirates and Global Payments  in Canada. We also  launched 
services with Banorte  in Mexico,  initially implementing  our MICROS  Payment 
Gateway solution and plan to launch our Pay in Your Currency service  shortly. 
Today, we  announced an  initiative to  launch Planet  Payment's Pay  in  Your 
Currency and Shop in Your Currency^™  services with Cielo S.A. in Brazil.   We 
believe that these new  initiatives are indicative of  the strong pipeline  of 
business that we can look forward to.

 

CURRENT TRADING

 

The Company  expects to  see continuing  growth in  active merchant  locations 
during the remainder of 2012, from both existing customers and those that have
recently implemented and launched services with Planet Payment.  However,  the 
Company may continue to see slower  growth in Consolidated Gross Billings  and 
[net revenue  from  existing customers,  as  a result  of  the  macro-economic 
downturn affecting  businesses  around  the world.   The  Company  intends  to 
continue to invest in supporting new business, implementations in new  markets 
and growing the pipeline, although the  benefit of these investments may  only 
be  realized  in  subsequent  periods.   Based  on  these  and  other  factors 
referenced above, the  Company estimates full  year net revenue  to be in  the 
range of $43.0m to $43.5m, net loss for 2012 to be in the range of ($4.2)m  to 
($4.7)m and Adjusted EBITDA to be in the range of $2.3m to $2.8m (See Table  3 
for reconciliation of estimated net loss to estimated Adjusted EBITDA).

 

 

NASDAQ LISTING

 

The Company plans to file  an amendment to its Form  10 in the next few  weeks 
with a view to completing the process  of becoming a NASDAQ listed company  by 
the end of 2012. 

 

Commenting on the  results, Philip Beck,  Chairman and CEO  of Planet  Payment 
said:

 

"Our third  quarter financial  results  reflect the  continued impact  of  the 
global economic environment during the year.  We are pleased that we  continue 
to build  a  strong  pipeline for  the  future  and are  excited  by  the  new 
opportunities that lie ahead of us, especially in the Latin American  region.  
We are delighted  to have  been selected  by Cielo  in Brazil  to deliver  our 
innovative products to its customers.In pushing ahead with our NASDAQ listing,
we believe  this  will  mark  another important  milestone  in  the  Company's 
development and  be  of significant  benefit  to the  Company's  shareholders, 
customers and employees."

 

Additional breakdown  on  the  Company's  performance  can  be  found  in  the 
Management's Discussion and  Analysis of  Financial Condition  and Results  of 
Operations included in the Company's Third Quarter Report.  In accordance with
the rules of the OTCQX market,  the Company's Third Quarter Report,  including 
its Consolidated Condensed Financial Statements (unaudited), as of and for the
nine and three month periods ended September 30, 2012, have been posted on the
OTCQX  website   at   www.otcqx.com   and  on   the   Company's   website   at 
www.planetpayment.com.

 

 

Enquiries:

 

Planet Payment, Inc.                                 Tel: + 1 516 670 3200

Robert Cox (CFO)                                     www.planetpayment.com

 
Redleaf Polhill (UK PR for Planet Payment)           Tel: +44 20 7566 6720

Emma Kane / Henry Columbine / David Ison             planet@redleafpolhill.com

                                                      
ICR (US PR for Planet Payment)                       Tel: +1 646-277-1212

Don Duffy / Dara Dierks
                                                      
Canaccord Genuity Ltd  (UK) (Nomad for Planet        Tel: +44 20 7523 8000
Payment)
                                                      
Simon Bridges / Andrew Chubb
                                                      

Canaccord Genuity, Inc. (US) (DAD for Planet         Tel: +1 617-371-3900
Payment)
                                                      
Andy Viles

 

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, estimated  net revenue,  net  loss and  Adjusted EBITDA,   plans  to 
effect a NASDAQ listing, an  intended definitive agreement and future  service 
launches with  Cielo, and  other 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 future, which assumptions may or may not be fulfilled in  practice. 
Actual results  may vary  materially  from the  results anticipated  by  these 
forward-looking  statements  as  a  result  of  a  variety  of  risk  factors, 
including, regulatory changes and changes in card association regulations  and 
practices; changes in domestic and  global economic conditions and changes  in 
volume  of  international  travel  and   commerce,  the  impact  of  the   BPS 
acquisition, delays in customer implementations and others. See the  Company's 
Quarterly Report  for  the period,  filed  at www.otcqx.com,  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.

 

                                     ****

 

 

NON-GAAP MEASURES

The Company provides certain non-GAAP financial measures in this statement  in 
order to provide investors with additional perspective of underlying  business 
trends and  results.   In  addition, management  utilizes  these  measures  in 
monitoring performance.  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  (loss)  income adjusted  to  exclude 
(1) interest expense, (2) interest income, (3) provision (benefit) for  income 
taxes, (4) depreciation and amortization, (5) stock‑based expense from options
and warrants  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  (loss) 
income,  the  most  directly  comparable  financial  measure  calculated   and 
presented in accordance with GAAP.

 

 

  Table 1. Reconciliation of Net (Loss) Income to Adjusted EBITDA (non-GAAP)

                                       

       For the three and nine months ended September 30, 2012 and 2011

                                       

The following table sets forth the reconciliation of Adjusted EBITDA to net
(loss) income, our most directly comparable financial measure in accordance
with GAAP:

                                                                                            Three months ended       Nine months ended
                                                                                                 September 30,           September 30,
                                                                                               2012       2011         2012       2011
ADJUSTED EBITDA:                                                                                                                      
Net (loss)
income...........................................................................    $(3,961,815)   $(375,414) $(4,333,290)   $600,311
Interest
expense............................................................................          14,163     19,378       42,738    307,796
Interest
income..............................................................................          (513)      (156)        (926)      (804)
(Benefit) provision for income taxes................................................       (17,076)    106,260      213,622    106,260
Depreciation and
amortization.........................................................                       744,602    656,726    2,052,063  1,837,147
Expensing of deferred IPO costs(1)................................................        2,578,770          -    2,578,770          -
Stock‑based
expense.....................................................................                284,071    208,663      824,468    435,154
Acquisition deal
costs.....................................................................                      323          -      122,078          -
Convertible debt prepayment fee(2) ...............................................                -          -            -    601,318
Derecognition of note payable(3)....................................................              -   (40,000)            -  (700,000)
Adjusted EBITDA (non-GAAP)....................................................           $(357,475)   $575,457   $1,499,523 $3,187,182

                                       

                                       

(1)   In connection with the preparation of the financial statements as of and
for the periods ended September 30, 2012 we determined that it is likely that
our IPO will be postponed for a period in excess of 90 days and as a result
deemed it to be an aborted offering in accordance with the guidance set forth
in ASC 340-10-S99-1. For the three months ending September 30, 2012, we
expensed previously deferred IPO costs of $2.3 million associated with our
registration statement on Form S-1 as well as any IPO costs incurred in the
third quarter to selling, general and administrative expenses.  The total
amount of the third quarter expense was $2.6 million.

 

(2)In April 2011, the convertible debt holders converted the outstanding
principal amount of $9.0 million under convertible notes issued in 2007 and
2008 into an aggregate of 4,049,776 shares of common stock. In addition, we
issued 127,318 shares of common stock valued at $0.3 million in lieu of cash
payments for accrued interest and 297,682 shares of common stock valued at
$0.6 million as a prepayment fee negotiated at the time of conversion. The
shares issued for the accrued interest and the prepayment fee were valued at
the average closing price of our common stock on AIM under the symbol "PPTR"
during the 10 trading day period ending two days prior to the conversion.

 

(3)   In 2003, we entered into an agreement with FHMS and FTB and recorded a
liability. Due to a breach of the contractual terms by FHMS and FTB, we did
not believe we were liable to repay these amounts. As of March 31, 2011, the
statute of limitations had expired on $0.66 million of the $0.7 million
balance and as of September 30, 2011, the statute of limitations had expired
on the remaining $40,000. For the three months ended March 31, 2011, we
recorded other income due to the derecognition of the note payable in the
amount of $0.7 million.

                                       

                                       

                                       

                                       

                                       

                     Table 2.  Explanation of Key Metrics

                                       

Consolidated Gross     Represents Gross Foreign Currency Mark-up plus payment
Billings               processing services revenue.
Gross Foreign Currency Represents the Gross Foreign Currency Mark-up amount on
Mark-up                settled dollar volume processed using our
                       multi‑currency processing services. Gross Foreign
                       Currency Mark-up represents multi‑currency processing
                       services net revenue plus amounts paid to acquiring
                       banks and their merchants associated with such
                       multi‑currency processing transactions.
Active merchant        The Company considers a merchant location to be active
locations              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.

 

   Table 3.  Reconciliation of Forward-Looking Net Loss to Forward-Looking
             Adjusted EBITDA (Non-GAAP) (US Dollars in Millions)

 

                    For the Year ending December 31, 2012

                                       

                                       

                                                                                                                     Year ending December 31, 2012
                                                                                                                            Estimated Range
                                                                                                                                                  
Net
loss................................................................................................................         $(4.7)         $(4.2)
Interest expense....................................................................................................            0.1            0.1
Interest income.....................................................................................................          (0.0)          (0.0)
Provision for income taxes.....................................................................................                 0.3            0.3
Depreciation and amortization................................................................................                   2.8            2.8
Expensing of deferred IPO costs............................................................................                     2.6            2.6
Stock‑based expense............................................................................................                 1.1            1.1
Acquisition deal costs............................................................................................              0.1            0.1
Adjusted EBITDA (non-GAAP)............................................................................                         $2.3           $2.8

                                       

Planet Payment, Inc. condensed consolidated balance sheets (unaudited)

                                                                                                                                                                                                                      As of September 30, As of December 31,
                                                                                                                                                                                                                                     2012               2011
Current assets:
Cash and cash equivalents............................................................................................................................................................................                          $5,319,950         $7,671,963
Restricted cash..................................................................................................................................................................................................               2,299,942          1,941,909
Accounts receivable, net of allowances of $1.4 million as of September  30, 2012 and December 31, 2011.........................                                                                                                 3,826,280          4,768,040
Prepaid expenses and other assets..............................................................................................................................................................                                 1,582,208            947,043
Total current assets...................................................................................................................................................................................                        13,028,380         15,328,955
Other assets:
Restricted cash..................................................................................................................................................................................................                 649,974            659,958
Property and equipment, net.........................................................................................................................................................................                            1,548,640          1,223,562
Software development costs, net..................................................................................................................................................................                               4,828,587          4,978,002
Intangible assets, net......................................................................................................................................................................................                    3,359,320            799,648
Goodwill............................................................................................................................................................................................................              630,756                  -
Security deposits and other assets..............................................................................................................................................................                                  311,587            213,230
Deferred IPO costs...........................................................................................................................................................................................                           -          1,650,789
Total other assets......................................................................................................................................................................................                       11,328,864          9,525,189
Total
assets.............................................................................................................................................................................................................           $24,357,244        $24,854,144
Liabilities and stockholders' equity
Current liabilities:
Accounts payable............................................................................................................................................................................................                     $329,944           $993,872
Accrued expenses.............................................................................................................................................................................................                   3,870,527          2,482,255
Due to merchants..............................................................................................................................................................................................                  2,382,111          2,137,064
Current portion of capital leases liability.................................................................................................................................................                                      341,536            247,257
Total current liabilities...........................................................................................................................................................................                            6,924,118          5,860,448
Long-term liabilities:
Long-term portion of capital leases liability...........................................................................................................................................                                          518,480            248,730
Total long-term liabilities......................................................................................................................................................................                                 518,480            248,730
Total
liabilities......................................................................................................................................................................................................               7,442,598          6,109,178
Commitments and contingencies
Stockholders' equity:
Convertible preferred stock- 4,000,000 shares authorized, $0.01 par value: Series A- 2,243,750 issued and outstanding as of September 30, 2012 and December 31, 2011; $8,975,000 aggregate liquidation
preference...................                                                                                                                                                                                                      22,438             22,438
Common stock-80,000,000 shares authorized as of September 30, 2012 and December 31, 2011, $0.01 par value, and 52,377,603, and 51,764,405  issued and outstanding as of September 30, 2012 and December 31, 2011,
respectively...                                                                                                                                                                                                                   523,776            517,644
Additional paid-in capital............................................................................................................................................................................                         96,571,663         94,083,901
Warrants.............................................................................................................................................................................................................           1,622,651          1,622,651
Accumulated other comprehensive loss....................................................................................................................................................                                         (31,653)           (40,729)
Accumulated deficit.........................................................................................................................................................................................                 (81,794,229)       (77,460,939)
Total stockholders' equity....................................................................................................................................................................                                 16,914,646         18,744,966
Total liabilities and stockholders' equity....................................................................................................................................................                                $24,357,244        $24,854,144

 

 

  The accompanying notes are an integral part of these financial statements

 

Planet Payment, Inc. condensed consolidated statements of operations
(unaudited)

                                                                                                                          Three months ended        Nine months ended
                                                                                                                               September 30,            September 30,
                                                                                                                             2012       2011         2012        2011
Revenue:
Net
revenue.............................................................................................................  $9,925,137  $9,660,128  $31,723,111 $29,527,135
Operating expenses:
Cost of revenue:
Payment processing services fees......................................................................                  2,724,030  2,630,448    7,941,869   8,273,579
Processing and service costs...............................................................................             2,936,471  2,370,388    8,309,890   6,758,294
Total cost of revenue.....................................................................................              5,660,501  5,000,836   16,251,759  15,031,873
Selling, general and administrative expenses...........................................................                 8,229,877  4,949,224   19,549,208  13,580,381
Total operating expenses...............................................................................                13,890,378  9,950,060   35,800,967  28,612,254
(Loss) income from operations...............................................................................          (3,965,241)  (289,932)  (4,077,856)     914,881
Other (expense) income:
Interest
expense......................................................................................................            (14,163)   (19,378)     (42,738)   (307,796)
Interest
income........................................................................................................                513        156          926         804
Other income, net
...................................................................................................                             -     40,000            -      98,682
Total other expense, net..........................................................................................       (13,650)     20,778     (41,812)   (208,310)
(Loss) income before benefit (provision) for income taxes.....................................                        (3,978,891)  (269,154)  (4,119,668)     706,571
Benefit (provision) for income taxes.......................................................................                17,076  (106,260)    (213,622)   (106,260)
Net (loss)
income....................................................................................................           $(3,961,815) $(375,414) $(4,333,290)    $600,311
Basic net (loss) income per share applicable to common stockholders..................                                     $(0.08)    $(0.01)      $(0.08)       $0.01
Diluted net (loss) income per share applicable to common stockholders...............                                      $(0.08)    $(0.01)      $(0.08)       $0.01
Weighted average common stock outstanding (basic).............................................                         52,366,739 50,794,219   52,062,429  48,834,130
Weighted average common stock outstanding (diluted)..........................................                          52,366,739 50,794,219   52,062,429  51,593,111

 

  The accompanying notes are an integral part of these financial statements

Planet Payment, Inc. condensed consolidated statements of comprehensive (loss)
income (unaudited)

                                                                                                                               Three months ended     Nine months ended
                                                                                                                                    September 30,         September 30,
                                                                                                                                  2012       2011         2012     2011
Net (loss)
income................................................................................................................... $(3,961,815) $(375,414) $(4,333,290) $600,311
Foreign currency translation adjustment................................................................................         74,765   (18,385)        9,076 (16,655)
Total comprehensive (loss) income.......................................................................................  $(3,887,050) $(393,799) $(4,324,214) $583,656

                                       

  The accompanying notes are an integral part of these financial statements

                       

 

Planet Payment, Inc. Condensed Consolidated Statements of Cash Flows
(unaudited)

                                                                                                                                                                                   Nine months ended
                                                                                                                                                                                       September 30,
                                                                                                                                                                                    2012        2011
Cash flows from operating activities:
Net (loss) income........................................................................................................................................................   $(4,333,290)    $600,311
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Stock option expense.............................................................................................................................................                824,468     420,226
Depreciation and amortization expense.................................................................................................................                         2,052,063   1,837,147
Provision for doubtful accounts.............................................................................................................................                      85,052      75,384
Expensing deferred IPO costs................................................................................................................................                   2,346,210           -
Deferred income taxes............................................................................................................................................               (66,009)           -
Non‑cash interest expense on convertible debt......................................................................................................                                    -     254,636
Warrant expense.....................................................................................................................................................                   -      14,928
Common stock issued for payment of account payable........................................................................................                                             -      20,000
Derecognition of note payable...............................................................................................................................                           -   (700,000)
    Non-cash prepayment fee on conversion of convertible debt ...............................................................................                                          -     601,318
Changes in operating assets and liabilities, net of effects of acquisitions
(Increase) decrease in settlement assets.................................................................................................................                      (358,033)     151,706
Decrease (increase) in accounts receivables, prepaid expenses and other current assets.......................................                                                    544,110 (1,455,920)
(Increase) decrease in security deposits and other assets......................................................................................                                  (8,066)      34,474
(Decrease) increase  in accounts payable and accrued expenses............................................................................                                      (250,142)   1,411,866
Increase (decrease) in due to merchants.................................................................................................................                         245,047   (159,855)
Other......................................................................................................................................................................     (17,226)     (3,742)
Net cash provided by operating activities.........................................................................................................                                             
                                                                                                                                                                               1,064,184  3,102,479
Cash flows from investing activities:
Decrease in restricted cash.....................................................................................................................................                   9,984     127,234
Purchase of property and equipment....................................................................................................................                         (189,685)    (80,935)
Capitalized software development........................................................................................................................                     (1,037,742) (1,431,347)
Purchase of intangible assets..................................................................................................................................                 (75,490)    (61,490)
Cash paid for business combination, net of cash acquired.....................................................................................                                (1,577,829)           -
Net cash used in investing activities..................................................................................................................                      (2,870,762) (1,446,538)
Cash flows from financing activities:
Proceeds from issuance of common stock.............................................................................................................                               67,680     247,764
Principal payments on capital lease obligations....................................................................................................                            (258,584)   (214,629)
Payment of IPO costs                                                                                                                                                           (354,531)   (859,077)
Net cash (used in) provided by financing activities...........................................................................................                                 (545,435)   (825,942)
Effect of exchange rate changes on cash and cash equivalents(*)....................................................................................                                    -           -
Net (decrease) increase in cash and cash equivalents......................................................................................................                   (2,352,013)     829,999
Beginning of
period.........................................................................................................................................................                7,671,963   5,182,499
End of
period..................................................................................................................................................................      $5,319,950  $6,012,498
Supplemental disclosure:
Cash paid for:
Interest...................................................................................................................................................................      $41,804     $53,160
Income taxes...........................................................................................................................................................          304,989     106,260
Non cash investing and financing activities:
Convertible debt converted to common stock.......................................................................................................                                     $-  $8,979,926
Common stock issued for BPS acquisition............................................................................................................                            1,596,862           -
Common stock issued for stock options and warrants exercised..........................................................................                                               685           -
Assets acquired under capital leases......................................................................................................................                       550,878     283,103
Derecognition of note payable...............................................................................................................................                           -     700,000
Prepayment fee on conversion of convertible debt................................................................................................                                       -     601,318
Accrued IPO Costs................................................................................................................................................                      -     477,639

 (*)          For the nine months ended September 30, 2012 and 2011, the
effect of exchange rate changes on cash and cash equivalents was
inconsequential.

  The accompanying notes are an integral part of these financial statements

Planet Payment, Inc. Condensed Consolidated Statements of Changes in
Convertible Preferred Stock and Stockholders' Equity (unaudited)

 

                                                              Convertible
                                                          preferred stock
                                                         $0.01 par value-
                                                         4,000,000 shares        Common stock
                                                               authorized    $0.01 par value-
                                                                 Series A   80,000,000 shares
                                                                                                                       Accumulated
                                                                   Shares              Shares  Additional                    other                       Total
                                                           Shares     par     Shares      par     paid-In            comprehensive   Accumulated stockholders'
                                                           issued   value     issued    value     capital   Warrants          loss       deficit        equity
Balance-December 31, 2011.                              2,243,750 $22,438 51,764,405 $517,644 $94,083,901 $1,622,651     $(40,729) $(77,460,939)   $18,744,966
Options exercised....................                           -       -    124,861    1,248      66,432          -             -             -        67,680
Issuance of common shares

      - Acquisition of BPS…...                                  -       -    488,337    4,884   1,596,862          -             -             -     1,601,746
Stock-based expense.............                                -       -          -        -     824,468          -             -             -       824,468
Cumulative translation

      adjustment.......................................         -       -          -        -           -          -         9,076             -         9,076
Net loss............................                            -       -          -        -           -          -             -   (4,333,290)   (4,333,290)
Balance-September 30, 2012....                          2,243,750 $22,438 52,377,603 $523,776 $96,571,663 $1,622,651     $(31,653) $(81,794,229)   $16,914,646

 

The accompanying notes are an integral part of these financial statements

Planet Payment, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

1. Business description and basis of presentation

Business description

Planet Payment, Inc. together with its wholly owned subsidiaries ("Planet
Payment," the "Company," "we," or "our") is a provider of international
payment processing and multi‑currency processing services. The Company
provides its services to approximately 38,000 active merchant locations in 18
countries and territories across the Asia Pacific region, North America, the
Middle East, Africa and Europe, primarily through its acquiring bank and
processor customers, as well as through its own direct sales force. The
Company's point-of-sale and e-commerce services are integrated within the
payment card transaction flow and enable its acquiring customers to process
and reconcile payment transactions in multiple currencies, geographies and
channels. The Company is a registered third party processor with the major
card associations and operates in accordance with industry standards,
including the Payment Card Industry, or PCI, Security Council's Data Security
Standards.

Company structure

Planet Payment was incorporated in the State of Delaware on October 12, 1999
as Planet Group Inc. and changed its name to Planet Payment, Inc. on June 18,
2007.

Since March 20, 2006, shares of the Company's common stock have traded on the
Alternative Investment Market of the London Stock Exchange, or AIM, under the
symbols "PPT" and "PPTR." Since November 19, 2008, shares of the Company's
common stock have traded on the OTCQX market tier operated by OTC Markets
Group, Inc., or the OTCQX, in the United States under the symbol "PLPM."

Basis of presentation

The condensed consolidated financial statements of the Company have been
prepared in accordance with accounting principles generally accepted in the
United States of America ("US GAAP").

The accompanying condensed consolidated financial statements include the
accounts of Planet Payment, Inc. and its wholly‑owned subsidiaries. All
intercompany transactions and balances have been eliminated.

The Company evaluated subsequent events through November 26, 2012, the date on
which the September 30, 2012 financial statements were available to be issued.
There were no events or transactions during this subsequent reporting period
that require recognition or disclosure in the financial statements, except as
noted below.

In October 2012, the east coast of the United States was hit by Hurricane
Sandy, including the city of Long Beach, where the Company's corporate offices
are located.  The aftermath of this event caused temporary disruption to
certain functions undertaken at that office and caused us to incur additional
costs for repairs, temporary office space and other requirements to maintain
or re-establish these functions. While the Company insures against such
property damage and business interruption risks, such insurance may not
adequately compensate the Company for losses incurred. Based on the
information available to us today the Company estimates that the impact of
such losses to be approximately $0.1 million.  At no time were any of our
transaction processing functions or systems affected by the storm and
accordingly none of our customers suffered any loss of transactions.

 

Unaudited consolidated interim financial information

 

The accompanying unaudited condensed consolidated interim financial statements
as of September 30, 2012 and for the periods ended September 30, 2012 and 2011
have been prepared on the same basis as the annual consolidated financial
statements. In the opinion of management, the unaudited financial information
for the interim periods presented reflects all adjustments, which are normal
and recurring, necessary for a fair presentation of the statement of
operations, financial position and cash flows. Operating results for the
interim periods ended September 30, 2012 are not necessarily indicative of the
results that may be expected for the year ending December 31, 2012.  The
December 31, 2011 balance sheet information has been derived from the audited
financial statements at that date but does not include all disclosures
required by GAAP.

 

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
END
 
 
QRTPGGCPGUPPPWQ -0- Nov/27/2012 07:01 GMT
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