News is out and we have a profit! Record Revenue of $23.5 Million
- Significant Year-over-Year Improvements in Net Income and EBITDA(1)
- Strong Transaction Activity from Existing Partners
- Robust New Business Opportunities Globally; Added Virgin America>>
TORONTO, May 13 /CNW/ - Points International Ltd. (TSX:
PTS -
News; OTCBB:
PTSEF -
News), the owner and operator of Points.com, the world's leading rewardprogram management web site, today announced results for the first quarterended March 31, 2010. All financial results are in US Dollars.
"Points delivered record revenue during the first quarter as our ongoingmarketing and promotional efforts, in conjunction with our loyalty partners,led to an increase in transaction activity of 33 percent over the same periodlast year, with particular strength across our largest North Americanpartners," said CEO Rob MacLean. "We are particularly pleased to have postedsignificant year-over-year gains in EBITDA and net income, as we benefittedfrom the rapid growth of many existing products as well as the launch of newpartnerships and products throughout the past year, all while aggressivelymanaging our operating expenditures. Our strong first quarter results are areflection of the health of our business model, strong execution by the Pointsteam and ongoing momentum in establishing new programs and partnerships, asevidenced by the recent addition of our newest partner, Virgin America."
"We are already seeing substantial benefits from the initial rollout ofour ePoch technology platform in terms of enhanced functionality andefficiency. The first phase of ePoch is now live in the market, and bothrecent launches and the current backlog of new installations will be deployeddirectly onto this new platform. In addition, we are actively engaged inupgrading our existing partners onto this enhanced technology, and expect tocomplete that effort through the remainder of 2010," continued MacLean.
First Quarter 2010 Financial Results
Total revenue was $23.5 million for the first quarter of 2010. Revenuewas up 11% over $21.1 million reported in the first quarter of 2009, and up42% over $16.6 million reported in the fourth quarter of 2009. Principalrevenue totaled $21.8 million, an increase of 12% over $19.4 million in thesame period last year, and an increase of 69% over $12.9 million in the fourthquarter of 2009. Other partner revenue was $1.7 million, down from $1.8million reported in the same period of last year and down from $3.7 million inthe fourth quarter of 2009.
Points reported net income for the first quarter of 2010 of $460,000.This compares to a net loss in the first quarter of 2009 of $1.1 million, andto net income in the fourth quarter of 2009 of $1.9 million.
During the first quarter of 2010, Points reported positive EBITDA of$246,000 compared to an EBITDA loss of $580,000 in the same period of 2009 andpositive EBITDA of $1.7 million in the fourth quarter of 2009.
New Board Member
"We are delighted to welcome Michael Beckerman to our Board of Directors.Michael's extensive experience in consumer marketing and e-commerce withcompanies including NIKE, MVP.com and BMO will enhance the breadth of ourBoard. We are confident that he will be integral to driving long-termprofitability and delivering value to our shareholders," said Bernay Box, theCompany's Chairman.
First Quarter 2010 Business Metrics
Q1/10 Q1/10
vs. vs.
Q1/10 Q4/09 Q4/09 Q1/09 Q1/09
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TOTAL ALL CHANNELS(1)
Points/Miles
Transacted (in 000s) 2,770,973 3,146,513 -12% 2,090,808 33%
No. of Points/Miles
Transactions 285,191 277,261 3% 226,920 26%
LOYALTY CURRENCY
SERVICES(1)
Points/Miles
Transacted (in 000s) 2,485,539 2,733,109 -9% 1,820,057 37%
No. of Points/Miles
Transactions 266,992 252,418 6% 204,631 30%
POINTS.COM CHANNELS
Points/Miles Transacted
(in 000s) 285,434 413,405 -31% 270,751 5%
No. of Points/Miles
Transactions 18,199 24,843 -27% 22,289 -18%
Cumulative Registered
Users 2,467,663 2,404,108 3% 2,189,814 13%
NOTE: (1) For comparative purposes, Buy, Gift & Transfer activity for
Delta has been excluded from the metrics presented.
Business Outlook
MacLean continued, "Our record first quarter results and the fact that wehave already raised our revenue guidance twice in 2010 speaks to the strengthof our business. The most recent 2010 revenue guidance was increased to arange of $85 million to $95 million, up from $75 million to $85 million, basedon increasing transactional activity as well as recent and upcoming productand partnership launches. These include the launch of our first Transferfunctionality for a major European partner with British Airways; newfunctionality enabling the sale of Delta SkyMiles on our Points.com consumersite; two new integrations under our Chase Ultimate Rewards partnership; newmagazine subscriptions with Alaska Airlines and ; and mostrecently, the addition of Virgin America's Elevate frequent flyer program tothe Points Partner Network."
"While some near-term inputs are impacting our margin and EBITDA results,we believe there may be further EBITDA upside in 2010 should Europeancurrencies rebound from recent lows versus the US Dollar, and we see potentialpositive mix shifts in our business. We are mining our current installed base,driving strong transactional activity, and are having great successestablishing new partnerships. Our consumer efforts are on track and will becontributing to growth this year. We are focused on aggressively expanding ourrevenue footprint while improving the bottom-line results of our business, andthis is setting the stage for exciting growth for our company for the balanceof 2010 and beyond," concluded MacLean.
Investor Conference Call
Points' quarterly conference call with investors will be held today at8:00 AM Eastern Time. To participate in the conference call, investors fromthe US and Canada should dial 877-941-2069 ten minutes prior to the scheduledstart time. International callers should dial 480-629-9713. PointsInternational will also offer a live and archived webcast, accessible from the"Investor Relations" section of the company's Web site atwww.pointsinternational.com.