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3PEA Reports First Quarter Financial Results3PEA International, Inc. (OTCQB:TPNL), a vertically integrated provider of innovative prepaid card programs and processing services for corporate, consumer and government applications, reported financial results for the first quarter ended March 31, 2017. 2017 First Quarter Financial Highlights vs. 2016
Management Commentary "We are pleased with our first quarter results, particularly the growth in the number of PaySign cardholders," said Mark Newcomer, Chief Executive Officer, 3PEA International. "Our pipeline remains strong, and our financial discipline has paid off, as we are now debt free, all of which enhances our ability to generate free cash flow and earnings growth." "Our results in the first quarter of 2017 reinforce our revenue growth expectations for 2017, as we continue to expect revenue growth in 2017 to outpace the previous year's revenue growth rate of 28%. Despite the seasonality normally experienced in the first quarter, we recorded a 47% increase in revenue when compared to the previous year's first quarter as we continue to expand the PaySign cardholder base," said Brian Polan, Chief Financial Officer, 3PEA International. "Our earnings for the quarter were slightly impacted by an increase in selling, general and administrative expenses as the Company added necessary staff required to facilitate the onboarding of new prepaid card programs expected to launch later in the year." Q1 2017 Financial Results Total revenues in the first quarter of 2017 increased 47% to $3,200,895 from $2,181,359 in the same quarter of 2016. The increase is primarily due to the increase in the number of PaySign cardholders, as well as an increase in the number of card products in the Company's portfolio. Gross profit in the first quarter of 2017 increased to $1,367,346, or 43% of total revenue, compared to $888,680, or 41% of total revenue, in the year-ago quarter. Selling, general and administrative expenses in the first quarter of 2017 were $814,277, or 25% of total revenue, compared to $713,894 or 33% of total revenue, in the year-ago quarter. Total operating expenses in the first quarter of 2017 were $1,029,544 compared to $837,527 in the year-ago quarter. Net income in the first quarter of 2017 was $369,394, or $0.01 per diluted share, compared to net income of $81,940, or $0.00 per diluted share, in the year-ago quarter. Shareholder Update Currently, our revenues continue to grow at an accelerated rate when compared to 2016. As of March 31, 2017, the Company had over 1,150,000 PaySign Cardholders participating in 126 card products, and continues to increase the number of card products in its portfolio and expects to surpass 200 card products in the current year. In the first quarter, the company's focus on debt reduction has resulted in the elimination of all debt associated with notes payable and legal settlement payable, and is currently debt free. About 3PEA International 3PEA International (OTCQB:TPNL) is an experienced and trusted prepaid debit card payment solutions provider, as well as an integrated payment processor. Through its PaySign brand, 3PEA designs and develops payment solutions, prepaid card programs and customized payment services. 3PEA's corporate incentive prepaid cards are changing the way corporations reward, motivate, and engage their current and potential customers, employees and agents. 3PEA's customizable prepaid solutions offer significant cost savings, while improving brand recognition and customer loyalty. 3PEA's customers include healthcare companies, major pharmaceutical companies, large multinationals, prestigious universities and social media companies. PaySign is a registered trademark of 3PEA Technologies, Inc. in the United States and other countries. For more information visit us at www.3pea.com or follow us on LinkedIn, Twitter and Facebook. Forward-Looking Statements Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. There is no assurance that such statements will prove to be accurate, and actual results and future events could differ materially. 3PEA undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170515006564/en/ |
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