SAN ANTONIO, March 30, 2015 (GLOBE NEWSWIRE) -- Payment Data Systems, Inc. (OTCBB:PYDS) (OCTQB:PYDS), an integrated electronic payments solutions provider, today announced the financial results for the year ended December 31, 2014.
Revenues for the year ended December 31, 2014 increased 159% to $13,395,131 from $5,180,362 for the year ended December 31, 2013. The increase of $8,214,769 was a result of higher transaction volumes across our ACH and credit card business segments.
The highlights of the 2014 fiscal year are:
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Gross profit for the year ended December 31, 2014 increased 329% to $4,178,227 from $974,896 for the year ended December 31, 2013.
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Net income for the year ended December 31, 2014 was $3,838,288 as compared to net loss $789,039 for the year ended December 31, 2013.
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Basic earnings per share increased to 4 cents a share for the year ending December 31, 2014 as compared to loss per share of 1 cent a share for the year ending December 31, 2013.
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Operating income for the year ended December 31, 2014 increased to operating gain of $2,245,007 from an operating loss of $755,432 for the year ended December 31, 2013.
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Excluding the effect of non-cash expenses associated with stock-based compensation of $291,980 and depreciation expenses of $40,953, operating income for the year ended December 31, 2014 was an adjusted operating income of $2,577,940.
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Other selling, general and administrative expenses slightly increased by 14% for the year ended December 31, 2014 to $1,600,287 from $1,405,594 for the year ended December 31, 2013.
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Cash and cash equivalents for the year ended December 31, 2014 increased to $54,989,851 from $26,573,771 for the year ended December 31, 2013. The increase was attributed to the dramatic increase in processing from new and existing customers that resulted in higher customer deposits.
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Shareholder equity dramatically increased by 1,000% to $7,024,072 for the year ending December 31, 2014 from $638,805 for the year ending December 31, 2013.
Michael Long, Chief Executive Officer of Payment Data Systems said, "We are thrilled with our results for 2014. Our high growth in transactions processed was fueled by both new and existing clients. The demand for our services was high and should continue as we develop even more competitive offerings."
Mr. Long continued, "We set all-time company records in every important financial metric this last year including revenue, operating income, net income and cash generated. I am proud of our management team because they accomplished the dramatic growth with a very minimal increase in SG&A expenses of just 14%. We have done an excellent job in positioning our company towards qualification for a national listing with NYSE MKT and now can demonstrate to the NYSE that we have met all the required financial metrics for a listing. We intend to apply to the NYSE for a listing on NYSE MKT in April. We believe the listing, if achieved, will bring greater liquidity in our stock and potentially allow for us to make industry related acquisitions which could lead to enhanced shareholder value. We continue to believe our stock is undervalued and is trading below valuation multiples that our industry receives."
Long continued, "2015 is well positioned to be another high growth year for us with record revenues, record income and strong cash flow. In addition to building the company's record financials, we brought on board Mr. Habib Yunus as our CFO. Mr. Yunus has significant experience in tax planning and M&A activities on both domestic and international markets."
Habib Yunus, Chief Financial Officer of Payment Data Systems said, "This is an exciting time in our story. Through the combination of the growth in EPS, and possible listing on NYSE MKT we are building on a strategy to create shareholder value."
Please review our annual report on Form 10K which will be filed after market close today with the Securities and Exchange Commission for complete financials of the Company.
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Financial Statements |
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PAYMENT DATA SYSTEMS, INC. |
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CONSOLIDATED BALANCE SHEETS |
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December 31, |
December 31, |
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2014 |
2013 |
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ASSETS |
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Cash and cash equivalents |
$ 54,989,851 |
$ 26,573,771 |
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Accounts receivable, net |
1,037,208 |
585,037 |
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Deferred tax asset, current |
773,000 |
-- |
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Prepaid expenses and other |
129,258 |
98,966 |
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Total current assets |
56,929,317 |
27,257,774 |
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Property and equipment, net |
2,705,517 |
122,061 |
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Other assets: |
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Marketable securities |
38,408 |
27,450 |
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Intangibles |
412,363 |
-- |
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Deferred tax asset, noncurrent |
848,000 |
-- |
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Other assets |
165,704 |
121,144 |
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Total other assets |
1,464,475 |
148,594 |
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Total Assets |
$ 61,099,309 |
$ 27,528,429 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current Liabilities: |
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Accounts payable |
$ 37,808 |
$ 60,818 |
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Accrued expenses |
1,851,033 |
1,088,644 |
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Customer deposits payable |
52,186,396 |
25,740,163 |
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Total current liabilities |
54,075,237 |
26,889,625 |
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Stockholders' Equity: |
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Common stock, $0.001 par value, 200,000,000 shares authorized; 184,176,582 and 147,721,077 issued and 179,181,338 and 137,150,323 outstanding |
184,177 |
147,721 |
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Additional paid-in capital |
62,989,131 |
56,873,423 |
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Treasury stock, at cost; 4,995,244 and 10,570,754 shares |
(238,157) |
(1,241,750) |
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Deferred compensation |
(5,839,992) |
(1,286,970) |
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Accumulated deficit |
(50,071,087) |
(53,853,620) |
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Total stockholders' equity |
7,024,072 |
638,804 |
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Total Liabilities and Stockholders' Equity |
$ 61,099,309 |
$ 27,528,429 |
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The accompanying notes are an integral part of these consolidated financial statements
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PAYMENT DATA SYSTEMS, INC. |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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Year ended |
Year ended |
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December 31, |
December 31, |
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2014 |
2013 |
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Revenues |
$ 13,395,131 |
$ 5,180,362 |
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Operating expenses: |
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Cost of services |
9,216,904 |
4,205,466 |
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Selling, general and administrative: |
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Stock-based compensation |
291,980 |
293,080 |
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Other expenses |
1,600,287 |
1,405,594 |
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Depreciation |
40,953 |
31,654 |
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Total operating expenses |
11,150,124 |
5,935,794 |
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Operating income (loss) |
2,245,007 |
(755,432) |
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Other income (expense): |
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Other income (expense) |
111,055 |
(1,350) |
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Other income (expense), net |
111,055 |
(1,350) |
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Income (loss) before income taxes |
2,356,062 |
(756,782) |
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Income taxes (benefit) expense |
(1,482,226) |
32,257 |
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Net Income (loss) |
$ 3,838,288 |
$ (789,039) |
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Earnings (loss) Per Share |
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Basic earnings (loss) per common share: |
$ 0.04 |
$ (0.01) |
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Diluted earnings (loss) per common share: |
$ 0.03 |
$ (0.01) |
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Weighted average common shares outstanding |
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Basic |
97,081,064 |
96,899,022 |
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Diluted |
138,845,896 |
96,899,022 |
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The accompanying notes are an integral part of these consolidated financial statements
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About Payment Data Systems, Inc.
Payment Data Systems provides integrated electronic payment processing services to merchants and businesses, including all types of Automated Clearing House, or ACH, processing, and credit and prepaid card and debit card-based processing services. The strength of the company is its ability to offer specifically tailored solutions for card issuance, payment acceptance and bill payments.
For additional information, visit www.paymentdata.com. Contact Michael Long for Investor Relations information at 210.249.4040 or email at ir@paymentdata.com.
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Website: http://www.paymentdata.com, www.ficentive.com, www.zbill.com
FORWARD-LOOKING STATEMENTS DISCLAIMER:
Except for the historical information contained herein, the matters discussed in this release include certain forward-looking statements, which are intended to be covered by safe harbors. These statements include, but may not be limited to, all statements regarding our management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, the factors detailed from time to time in our filings with the Securities and Exchange Commission. One or more of these factors have affected, and in the future could affect our businesses and financial results in the future and could cause actual results to differ materially from plans and projections. We believe that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to our management. We assume no obligation to update any forward-looking statements, except as required by law.
