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3PEA Reports Third Quarter 2017 Financial Results3PEA International, Inc. ("3PEA" or the "Company) (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 third quarter ended September 30, 2017. Q3 2017 Highlights
Management Commentary "We are pleased with our third quarter results, as we continue to experience accelerated growth," said Mark Newcomer, Chief Executive Officer, 3PEA International. "In the first nine months of 2017 we successfully launched a record number of new card programs for both new and existing clients. Our pipeline continues to remains strong, and we look forward to continued top and bottom line growth in the remainder of 2017 as we continue to develop innovative payment solutions for corporate, government and consumer markets." "The increase in revenue in the third quarter and nine month period was primarily a result of growth in our cardholder base throughout our prepaid programs," said Brian Polan, Chief Financial Officer, 3PEA International. "We expect our revenue growth to accelerate for the remainder of 2017, as we launched a record number of programs this year, reflecting an increase in card programs of more than 65 percent, year over year. Although gross margins remained unchanged year over year, third quarter gross margins were negatively impacted by costs associated with launching new card programs. The company expects gross margins to improve in 2018, as the newly launched programs mature." Three Months Ended September 30, 2017 Revenues for the three months ended September 30, 2017 were $4,001,991, an increase of $1,189,455 compared to the same period in the prior year, when revenues were $2,812,536. The increase in revenue is due to growth of our cardholder base. As of September 30, 2017, we managed 175 card programs with over 1,390,000 participating card holders. Revenues were slightly impacted by diminished card usage in areas affected by hurricanes in Texas and Florida. The company expects revenues to continue to trend upwards in the long term. Gross profit for the three months ended September 30, 2017 was $1,856,370, or 46% of revenue, an increase of $566,292 compared to the same period in the prior year, when gross profit was $1,290,078, or 46% of revenue. Selling, general and administrative expenses for the three months ended September 30, 2017 were $1,104,280, an increase of $443,724 compared to the same period in the prior year, when selling, general and administrative expenses were $660,556. The increase in selling, general and administrative expenses is primarily due to the expenses required to implement and service the additional card programs launching in the second half of 2017. Our net income for the three months ended September 30, 2017 was $500,168, or $0.01 per share, an increase of $19,739 compared to the same period in the prior year, when we recorded net income of $480,429, or $0.01 per share. The increase in our net income is attributable to the aforementioned factors. Nine Months Ended September 30, 2017 Revenues for the nine months ended September 30, 2017 were $10,621,055, an increase of $3,251,515 compared to the same period in the prior year, when revenues were $7,369,540. The increase in revenue is primarily due to the expansion of our cardholder base throughout our prepaid card programs. Gross profit for the nine months ended September 30, 2017 was $4,786,346, or 45% of revenue, an increase of $1,478,868 compared to the same period in the prior year, when gross profit was $3,307,478, or 45% of revenue. Selling, general and administrative expenses for the nine months ended September 30, 2017 were $2,847,955, an increase of $793,604 compared to the same period in the prior year, when selling, general and administrative expenses were $2,054,351. Net income for the nine months ended September 30, 2017 was $1,254,004, or $0.03 per share, an increase of $355,956 compared to the same period in the prior year, when we recorded net income of $898,048 or $0.02 per share. The increase in our net income is attributable to the aforementioned factors. Shareholder Update The Company's revenues continue to grow at an accelerated rate when compared to 2016. The Company expects growth to continue at comparable rates for the foreseeable future. To date, the Company has added a record 82 card programs to its portfolio. Currently the Company has over 1,500,000 PaySign Cardholders participating in 202 card programs. In the third quarter of 2017, the Company became a Principal Member of the National Branded Prepaid Card Association ("NBPCA"), and our newly appointed Chief Operating Officer, Joan Herman, represents 3PEA on The NBPCA's Board of Directors and serves as its Treasurer. For 2018, the company will be focused on increasing gross margins, entering new markets while increasing market share in existing verticals, and offering new products and services to its existing cardholders. Financial Guidance Based on the Company's current estimates, the Company reiterates its revenue guidance of $15.0 million to $15.5 million in 2017 as compared to revenue of $10.4 million in 2016. This represents an annual increase of 44% to 49% when compared to 2016 revenue levels. 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 that has managed millions of prepaid debit cards in its portfolio. Through its PaySign brand, 3PEA conceptualizes, develops and manages 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 3b6 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/20171113006353/en/ |
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