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May 06, 2015 9:18 PM ET

IT Services

Company Overview of iPayment Inc.

Company Overview

iPayment, Inc. provides credit and debit card payment processing services to small merchants in the United States. It performs various functions for small merchants, such as application processing, underwriting, account set-up, risk management, fraud detection, merchant assistance and support, and equipment deployment and chargeback services. The company’s processing services enable merchants to accept credit cards and other forms of payment, including debit cards, checks, gift cards, and loyalty programs in traditional card-present or swipe transactions, as well as in card-not-present transactions, such as those conducted over the phone or through the Internet. It markets and sells its serv...

126 East 56th Street

New York, NY 10022

United States

Founded in 1999

422 Employees

Phone:

212-802-7200

Key Executives for iPayment Inc.

Chairman and Chief Executive Officer
Age: 46
Chief Financial Officer, Executive Vice President, Treasurer and Director
Age: 48
Head of Operations and Senior Vice President
Chief Accounting Officer and Senior Vice President of Finance
Age: 44
Compensation as of Fiscal Year 2014.

iPayment Inc. Key Developments

iPayment Holdings, Inc. and iPayment Inc. Announces Executive Appointments

iPayment Holdings, Inc. and iPayment, Inc. announced the addition of four new members David R. Hughes, Marshall J. Lux, Michael P. Monaco and Brian V. Mooney to the Companies Board of Directors. David R. Hughes has a diverse background in business, gaming, education, healthcare and entertainment. Since January 2014, he has been CFO of Shore Medical Center, which he had previously served as a member of the Board of Trustees and on the Finance Committee. He began his present position after three years as EVP, Treasurer and CFO of Trump Entertainment Resorts, Inc. He was a member of the Board of Directors and Chairman of the Finance Committee for Trump Entertainment, Inc. until November 2014. From 2003 to 2010, he served MTR Gaming Group in a variety of senior positions, including, most recently, Corporate EVP and CFO for more than two years, Corporate EVP of Strategic Operations and COO of MTR's property. In addition to being a member of the Richard Stockton College Foundation Board and other charity organizations, he is also a member of the Board of Directors and Chairman of the Audit Committee for American Media, a member of the Compliance Committee for Rivers Casino and a member of the Board of Directors and Chairman of the Finance Committee for Shore Quality Partners. Marshall J. Lux has been a financial services and private equity consultant for 29 years. He was most recently a Senior Partner at The Boston Consulting Group (BCG) since 2010, where he led its North American Private Equity Group. He has deep experience in payments, risk, and financial services and private equity broadly. Marshall is now a Senior Advisor at BCG. He is a Senior Fellow at the Mossavar-Rahmani Center for Business and Government at the Kennedy School at Harvard University, researching and lecturing on financial regulation. He was also an adjunct Professor at NYUs Stern School of Business. Previous to BCG, he was the Chief Risk Officer for Consumer Products at Chase. From 1986 to 2008 he was at McKinsey and Company, where he was a Director (Senior Partner), with a focus on Financial Services and Private Equity. Michael P. Monaco has 40 years of experience in finance and management. He currently is a Senior Managing Director at CDG Group, LLC and, since 2002, has specialized in developing and executing business plans, complex restructurings and financings. He also spent 15 years with American Express (1981-1996) in positions of increasing responsibility, and served as EVP and CFO from 1990 to 1996. As CFO, Monaco was instrumental in the IPO of First Data Corporation and was a member of FDCâ s Board. Thereafter, he joined Cendant Corporation from 1996 to 2000, serving as Vice Chairman, CFO and a director and also as CEO of the Direct Marketing Division. He began his career at Ernst & Young, where he rose to Senior Auditor. Monaco is of no relation to Mark Monaco, the CFO of the Companies. Brian V. Mooney brings over 35 years of experience in financial services, higher education and public accounting to the Companies, with deep experience in the payments industry. From 2009 to 2014, Mooney served as an original director and, subsequently, became CEO of Banc of America Merchant Services, LLC. From 1998 to 2009, he served First Data in several senior executive management positions of increasing responsibility, including CFO of First Data Merchant Services, President of TeleCheck International, Inc. and President of First Data Merchant Services. Earlier, he was at Ernst & Young for 13 years, most recently as Senior Manager, where he focused on financial services companies.

iPayment and iPayment Holdings Extend Expiration Time for Exchange Offers

iPayment and parent iPayment Holdings announced an amendment to the exchange offer support agreement governing the companies' previously announced exchange offers and consent solicitations relating to iPayment Holdings' 15.00%/15.00% senior notes due 2018 and iPayment's 10.25% senior notes due 2018. The amendment lowers the percentage of the aggregate principal amount of outstanding iPayment notes required to be validly tendered for exchange to 93.60% from 95%. The companies again extended the expiration time of the offers to 5 p.m. ET on Dec. 22 from 5 p.m. ET on Dec. 18. As of 5 p.m. ET on Dec. 18, approximately $134.4 million, or 96.98%, of the aggregate principal amount of outstanding iPayment Holdings notes had been validly tendered for exchange and not withdrawn, and approximately $374.6 million, or 93.65%, of the aggregate principal amount of outstanding iPayment notes had been validly tendered for exchange and not withdrawn.

iPayment Inc. Announces Earnings and Operating Results for the Third Quarter and Nine Months Ended September 30, 2014

iPayment Inc. announced earnings and operating results for the third quarter and nine months ended September 30, 2014. Total revenue for the third quarter was $178.6 million, an increase of 6.5% over the third quarter of 2013. Net revenue increased 1.5% to $79 million in the third quarter from $77.8 million in the third quarter of last year. The contributors to the third quarter increase in net Revenues were higher transaction volume, partially offset by lower rate despite a lower number of merchants and lower other revenue. Income from operations for the third quarter was $10.9 million versus $11.7 million in the comparable period of 2013. This decrease was attributable to higher cost -- other cost of services and SG&A, partially offset by higher net revenues. Excluding stock-based compensation and nonrecurring items, income from operations would have been $11.8 million. Consolidated EBITDA for the third quarter was $23.1 million compared to $25.9 million for the third quarter of last year. During the third quarter, the company spent $1.1 million on capital expenditures, $5 million on acquisitions of businesses and $2.5 million on residual buybacks. Total revenue for the first nine months similarly increased 4.4% to $519.6 million from $497.7 million in the prior period. The revenue increase was driven by higher transaction volumes, mitigated by a lower number of merchants. Net revenue increased 0.6% to $236.6 million from $235.3 million in the same period of 2013. Income from operations increased to $33.6 million from $30.5 million in the comparable period of last year, an increase of 10.4%. Net and comprehensive income for iPayment for the third quarter was a loss of $4.7 million versus a loss of $7 million in the third quarter 2013. The loss in 2014 was driven by a loss before income taxes of $5.7 million and an income tax benefit of $1 million. The company used $13.5 million of cash for investment -- investing activities. Of this, $3.1 million was for capital expenditures, $8 million was for acquisitions of businesses and $2.5 million was for residual buybacks. Total transactions processed in the third quarter were $90.3 million, an increase of 3.7% year-over-year. Transactions per merchant per month in the third quarter were 286, a 7.7% increase from the prior period. Average ticket in the quarter remained unchanged at $64.90. At the end of the third quarter, the company had approximately 104,000 active merchants, down 3.3% from the third quarter of 2013. In the third quarter, average monthly volume per active merchant was approximately $18,600, an 8.6% increase over the comparable period in 2013. New merchant applications in the third quarter increased 22.7% from the third quarter of 2013. Headcount at September 30 was 429 versus 433 at the same time last year. For the nine months, total charge volume was $16.9 billion, up 1.9% from the first nine months of the prior year. For the first 9 months of this year, the year-over-year comparison improved from the first half, where the volume increase was 0.5%. Transactions processed were $259.8 million, 2.3% more than the first nine months of 2013.

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