HENDERSON, Nev.–(BUSINESS WIRE)–Paysign, Inc. (NASDAQ: PAYS), a vertically integrated provider of innovative prepaid card programs and processing services for corporate, consumer and government applications, today reported financial results for the second quarter ended June 30, 2019.
- Revenue for the quarter ended June 30, 2019 was $8,636,271, an increase of 58.2% percent compared to $5,460,723 for the same period last year. Revenue for the six months ended June 30, 2019 was $15,893,561, an increase of 56.8% compared to $10,137,042 for the same period last year. The increase in revenue is attributable to continued growth within our existing programs and the addition of new card programs in both existing and new industry verticals.
- Second quarter 2019 gross profit increased 92.3% to $5.0 million or 58.3% of revenues, compared to $2.6 million or 48.0% of revenue in second 2018. 2019 six month gross profit increased 81.2% to $8.8 million, or 55.5% of revenue, from $4.9 million or 48.0% of revenue in 2018. The increase was primarily driven by a favorable mix towards higher margin card programs.
- Total operating expenses in the second quarter were $3.4 million compared to $3.0 million in the prior quarter, and to $1.9 million in the second quarter of 2018. The increase compared to the same period the prior year is primarily attributable to increases in leadership and staffing, investments in infrastructure, and increased stock-based compensation.
- Net Income for the quarter ended June 30, 2019 was $1,738,791, or $0.04 per basic share, an increase of 137.5% compared to $732,056 or $.02 per basic share in the same period the prior year. 2019 six month net income was $2,610,462, or $0.06 per basic share, an increase of 128.1% compared to $1,144,563, or $03 per basic share in the same period the prior year. For the six month period fully diluted earnings per share was $.05 versus $.02 the prior year.
- Non-GAAP Adjusted EBITDA was $2,593,676, or $0.05 per basic share in the quarter ended June 30, 2019 an increase of 123.3% compared to $1,161,669, or $0.03 per basic share in the same period the prior year. Six month non-GAAP Adjusted EBITDA for 2019 was $4,311,154, or $0.09 per basic share, an increase of 122.6% compared to $1,936,609, or $.04 per basic share in the same period in the prior year.
- Our revenue conversion rate of gross dollar volume loaded on cards for the quarter was 4.21% or 421 bps compared to 3.66% or 366 bps the same period the prior year.
“We are very pleased with our results, as we’ve delivered three and six month record revenue and net profit,” said Mark Newcomer, Chief Executive Officer, Paysign. “Our strong results demonstrate our continued ability to execute and to grow our new and existing business lines.”
“We delivered strong results across the board in the second quarter, as we continued to operationalize our strategic initiatives,” commented Dan Henry, Chairman, Paysign. “As we look ahead, we remain focused on execution, profitability and maximizing shareholder value.”
“As anticipated, we continue to experience an expansion in gross and net margins, as we benefit from higher margin industry mix and improved operating leverage,” stated Mark Attinger, Chief Financial Officer, Paysign.
About Paysign, Inc.
Paysign, Inc. (NASDAQ: PAYS) is an experienced and trusted prepaid debit card payment solutions provider and integrated payment processor with over 2.5 million cardholders in its portfolio. Paysign designs and develops payment solutions, prepaid card programs, and customized payment services for consumer, corporate and public sector applications.
Paysign’s corporate incentive prepaid cards are changing the way corporations reward, motivate, and engage their current and potential customers, employees, and agents. Paysign’s customizable solutions offer significant cost savings while improving brand recognition and customer loyalty. For over 15 years, healthcare companies, major pharmaceutical companies, multinationals, prestigious universities, and social media companies have relied on Paysign to provide state of the art prepaid payment programs tailored to their unique requirements. Paysign® is a registered trademark of 3PEA Technologies, Inc. in the United States and other countries. For more information visit us at paysign.com or follow us on LinkedIn, Twitter and Facebook.
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 3b-6 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. Paysign undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise.
Paysign, Inc. Non-GAAP Measures
To supplement Paysign’s financial results presented on a GAAP basis, we use a non-GAAP measure of Adjusted EBITDA defined as net income less the following cash and non-cash items: interest, taxes, stock-based compensation, amortization and depreciation. We believe this non-GAAP measure helps investors better evaluate our past financial performance and potential future results. Non-GAAP measures should not be considered in isolation or as a substitute for comparable GAAP accounting and investors should read them in conjunction with the Company’s financial statements prepared in accordance with GAAP.
“EBITDA” is defined as earnings before interest, taxes, depreciation and amortization expense. “Adjusted EBITDA” reflects the adjustment to EBITDA to exclude stock-based compensation charges. Adjusted EBITDA is not intended to represent cash flows from operations, operating income (loss) or net income (loss) as defined by U.S. GAAP as indicators of operating performance.
Management cautions that amounts presented in accordance with Paysign’s definition of Adjusted EBITDA or any other non-GAAP measures may not be comparable to similar measures disclosed by other companies because not all companies calculate Adjusted EBITDA and non-GAAP measures in the same manner.