Payment Data Systems Announces Fourth Quarter And Year End 2015 Results -

Payment Data Systems Announces Fourth Quarter And Year End 2015 Results

Mar 25, 2016Jeremy ParkinsonFinance0

SAN ANTONIO, Texas, March 24, 2016 (GLOBE NEWSWIRE) — Payment Data Systems, Inc.(NASDAQ:PYDS), an integrated payment solutions provider, today announced financial results for the fourth quarter and year ended December 31, 2015.

Fourth Quarter 2015 Financial Highlights

Revenues were $3.7 million

Gross margins were $1.4 million, or 37.8% of revenues

Operating income was $136,991

Adjusted EBITDA¹ was $670,625, or 18.3% of revenues

Net income was $164,842, or $0.01 per diluted share

¹See Reconciliation of GAAP Operating Income to Adjusted EBITDA in the accompanying financial tables

Year Ended December 31, 2015 Financial Highlights

Revenues were $14.4 million; up 7.4% from $13.4 million in 2014

Gross margins were $5.0 million, or 34.5% of revenues; up 18.8% from $4.2 million, or 31.2% of revenues in 2014

Operating income was $946,877, compared to $2.3 million a year ago

Adjusted EBITDA² was $2.9 million, or 20.1% of revenues; up 12.1% from $2.6 million, or 19.2% of revenues in 2014

Net income was $1.0 million, or $0.08 per diluted share, compared to $3.8 million, or $0.41 per diluted share in 2014

Cash flow from operations was $2.1 million; up 4.2% from $2.0 million in 2014

²See Reconciliation of GAAP Operating Income to Adjusted EBITDA in the accompanying financial tables

2015 Full Year Operating Highlights

Total dollars processed for 2015 set a new record, exceeding $3.3 billion, an 18% increase from 2014.

Total transactions processed for 2015 also reached a new high at more than 14.3 million, a 10% increase from 2014.

Management Commentary

“I am proud to report that our focus on innovation and delivery of world-class payments processing technology for our customers drove record revenues and results across all key operating metrics in 2015, and for the first time we exceeded the $3 billion mark for total dollars processed in a year,” said Michael Long, Chairman and CEO, Payment Data Systems, Inc.

“This is truly an exciting time to be in the payments space. The rapid growth of e-commerce, online mobile payments and new alternative payment methods is driving significant change in the payments market, with electronic payments now exceeding 85% of all non-cash payments,” added Long. “As never before, merchants need to manage the complexity to thrive and are looking at payments and payment innovators much more strategically than in the past.We serve unmet needs in a fast growing market that demands secure, adaptive, and convenient payments and prepaid products – and because of the customization and innovation we provide in meeting these needs, we have created a loyal base of customers.”

Payment Data Systems, Inc. President and Chief Operating Officer Louis Hoch said, “2015 marked a year of significant accomplishments that position Payment Data Systems for long-term growth. Our strategies for long-term value creation are two-fold.We plan to drive organic growth by continuing to expand our payment processing business with new customer verticals through resellers and integrators and by increasing prepaid product sales by leveraging our powerful Akimbo user interface.On the acquisition front, we will selectively evaluate strategic acquisitions that enhance or bring additional products and services to our current model, with the goals of increasing customer satisfaction, generating additional opportunities to cross-sell, and creating opportunities to engage new clients.We will also evaluate portfolio acquisitions at accretive multiples.”