Market Overview

PYDS Reports Record Earnings for Third Quarter of 2012

SAN ANTONIO--(BUSINESS WIRE)--

Payment Data Systems, Inc. (OTCQB: PYDS), an integrated electronic payments solutions provider, today announced financial results for the quarter ended September 30, 2012.

Revenues increased to $2,333,698 for the third quarter of 2012 up from $1,437,592 for the third quarter of 2011 for a gain of 62% due to higher payment transaction growth. The operating income for the quarter ended September 30, 2012 was $621,025 approximately a three-fold increase when compared to an operating income of $208,996 for the third quarter of 2011. Net income for the quarter ended September 30, 2012 was $626,742 up from a net income of $262,541 for the third quarter of 2011.

Highlights for the third quarter of 2012 include:

  • Third quarter revenue grew 59% over the second quarter of 2012.
  • Gross profit for the third quarter grew 89% to $1,061,529 as compared to $561,609 in the second quarter of 2012.
  • Cash and cash equivalents grew to $3,036,458 at September 30, 2012 from $1,896,487 at June 30, 2012.
  • Total current assets grew to $3,618,140 at September 30, 2012 from $2,217,202 at June 30, 2012.
  • The third quarter's electronic check processing volumes were the highest in the history of the Company. The third quarter's electronic check transaction volumes were up 224% and returned check transactions were up 25% as compared to second quarter of 2012. Prepaid card issuance for the third quarter of 2012 was the highest in the history of the Company and represented a gain of 177% over the second quarter of 2012.
  • Credit card processing volumes for the third quarter were down 2% as compared to the second quarter of 2012, but were still the second highest in the history of the Company.

Commenting on the results for the quarter, Michael R. Long, Chairman and Chief Executive Officer of Payment Data Systems, said, “The tremendous growth we experienced this quarter continues to support our enthusiastic view of the future. Our sales team continues to do an outstanding job securing new clients and our operations team continues to implement new customers. All this was accomplished while holding our selling and general administrative expenses constant for 2012.”

Mr. Long continued, “All financial metrics and operational metrics recorded record, positive levels this quarter. With many of our transaction volumes and card issuance volumes now experiencing over 100% growth for the first nine months of 2012 as compared to the same period in 2011, I can assure you that our annual metrics for 2012 will produce record results for the year. As such, we expect to close out the year with record growth in revenues, income from operations, and profitability for our 2012 annual results."

Mr. Long continued, “With our dramatic increase in profits, we are now even closer to our goal to obtaining a national listing with a stock market such as NYSE MKT (previously known as American Stock Exchange). We are hopeful that we will reach that goal in 2013.”

PAYMENT DATA SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
       

 

Three Months Ended September 30, Nine Months Ended September 30,

2012

2011

2012

2011

 
Revenues $ 2,333,698 $ 1,437,592 $ 5,099,269 $ 2,991,213
 
Operating expenses:
Cost of services 1,272,169 914,330 2,952,838 2,124,577
Selling, general and administrative:
Stock-based compensation 87,192 87,192 261,576 261,576
Other expenses 351,344 226,246 1,066,399 705,994
Depreciation   1,968     828   3,578   3,172  
Total operating expenses   1,712,673     1,228,596   4,284,391   3,095,319  
 
Operating income (loss) 621,025 208,996 814,878 (104,106 )
 
Other income (expense):
Unrealized gain (loss) on marketable securities

17,450

66,809

2,299

(24,929

)

Other income (expense)   (724 )   105   8,952   22,446  
Other income (expense), net   16,726     66,914   11,251   (2,483 )
 
Income (loss) before income taxes 637,751 275,910 826,129 (106,589 )
Income taxes   11,009     13,369   26,009   13,369  
 
Net income (loss) $ 626,742   $ 262,541 $ 800,120 $ (119,958 )
 
 
Basic and diluted earnings (net loss) per common share:

$

0.00

 

$

0.00

$

0.01

$

0.00

 
Weighted average common shares outstanding
Basic 137,725,833 137,709,143 137,725,833 136,948,469
Diluted 138,135,367 137,709,143 138,135,367 136,948,469
 

For further information regarding our financial results for the quarter ended September 30, 2012, please read our 10-Q that will be filed on end of the day on November 14, 2012.

About Payment Data Systems, Inc.

Payment Data Systems is an integrated payment solutions provider to merchants and billers. The organization provides an extensive set of products to deliver world-class payment acceptance. Payment Data has solutions for merchants, billers, banks, service bureaus and card issuers. The strength of the Company is its ability to offer specifically tailored solutions for card issuance, payment acceptance and bill payments.

For additional information, visit www.paymentdata.com. Contact Michael Long for Investor Relations information at 210.249.4040 or email at ir@paymentdata.com.

Website: www.paymentdata.com, www.ficentive.com, www.zbill.com

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FORWARD-LOOKING STATEMENTS DISCLAIMER

Except for the historical information contained herein, the matters discussed in this release include certain forward-looking statements, which are intended to be covered by safe harbors. Those statements include, but may not be limited to, all statements regarding our and management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, the factors detailed from time to time in our filings with the Securities and Exchange Commission. One or more of these factors have affected, and in the future could affect, our businesses and financial results and could cause actual results to differ materially from plans and projections. We believe that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to our management. We assume no obligation to update any forward-looking statements, except as required by law.

Payment Data Systems, Inc.
Michael Long, 210-249-4040
ir@paymentdata.com
www.paymentdata.com

 

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