Versapay Corp - Ordinary Shares VPYYF

Q3 Financials are out...

[Trelawny]

https://www.newswire.ca/news-releases/versapay-announces-q3-2016-financial-results-603691556.html

- VersaPay Solutions Grows 72% Year Over Year -

TORONTO, Nov. 29, 2016 /CNW/ - VersaPay Corporation (TSXV: VPY) ("VersaPay" or the "Company"), a leading provider of cloud-based invoicing, accounts receiv­able management and payment solutions, today announced the Company's third quarter (Q3) financial results for the three-month period ended September 30, 2016.

"We are very pleased with the growth in both our Software and Merchant Services businesses," said Craig O'Neill, CEO of VersaPay. "In particular, our software revenues grew by more than 72% as suppliers and their customers come online and increase their use of the ARC platform. Notably, as customers become accustomed to transacting online we are seeing the volume of payments processed on ARC™ rise rapidly, with $21.3 million in payments made in the quarter, a 50% increase in total payments since the platform was launched."

Financial Highlights:

• VersaPay Solutions revenue for the three months ended September 30, 2016 increased by 72% to $0.40 million compared to $0.23 million for the three months ended September 30, 2015. VersaPay Solutions revenue for the nine months ended September 30, 2016 increased by 78% to $1.04 million compared to $0.59 million for the nine months ended September 30, 2015.
• Total revenue for Q3 2016 increased by 33% to $1.85 million compared to $1.39 million in Q3 2015. Total revenue for the nine months ended September 30, 2016 increased by 24% to $5.02 million compared to $4.04 million for the nine months ended September 30, 2015.
• P.O.S Merchant Services revenue for the three months ended September 30, 2016 increased 26% to $1.45 million compared to $1.16 million for the three months ended September 30, 2015. P.O.S Merchant Services revenue for the nine months ended September 30, 2016 increased 15% totaling $3.98 millioncompared to $3.45 million for the nine months ended September 30, 2015.
• Gross margin percentage for the three-month period ended September 30, 2016 was 57%, compared to 53% in Q3 2015.
• Cash operating expense for the nine months ended September 30, 2016 was $6.56 million compared to $6.00 million for the nine months ended September 30, 2015. The increase reflects the Company's strategy of building the VersaPay Solutions business and the timing of receivable and payable accounts.
• Adjusted EBITDA(1) loss of $0.88 million in Q3 2016, compared to loss of $1.16 million in Q3 2015, in accordance with the Company's plans to invest in the VersaPay Solutions business. For the nine months ended September 30, 2016 Adjusted EBITDA loss totalled $3.42 million compared to Adjusted EBITDA loss of $3.40 million for the nine months ended September 30, 2015.
• Total comprehensive loss for Q3 2016 was $0.99 million compared to a loss of $1.63 million for Q3 2015. Total comprehensive loss for the nine months ended September 30, 2016 was $4.12 million compared to $4.11 million for the same period in 2015.
• As at September 30, 2016, the Company had cash on hand of $3.94 million compared to $3.34 million as at December 31, 2015.

(1) Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, share-based payments, other income and expense, and other comprehensive income. Adjusted EBITDA is a non-IFRS financial measure which does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. It should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS. Please refer to the Company's management's discussion and analysis for the quarter ended September 30, 2016 for further information on the Company's use of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net earnings.

At time of writing, VersaPay ARC's client count, that is the number of suppliers signed up to publish invoices to their end-customers and to receive payment online, stands at 80. Total number of clients that are live and fully operational is 65. Over 28,000 end-customers are now on the platform and they made over $16 million in payments since the end of Q3 – an increase of just over 25% in total payments processed since the platform was launched in 2015.

Date: Wednesday, November 30, 2016
Time: 9:00 AM Eastern Time

Participant Dial-in Numbers:
Local – Toronto([phone]
Toll Free – North America([phone]
Conference ID: 52934466

Recording Playback Numbers:
Toronto([phone]
Toll Free – North America([phone]
Passcode: 934466 #
Expiry Date: Wednesday, December 7, 20169:00 AM

A live audio webcast and archive of the conference call will be available by visiting the Company's website at https://www.versapay.com/company/investor-relations/. Please connect at least 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.