Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Statements [Line Items] | |
Document Type | 40-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Trading Symbol | pts |
Entity Registrant Name | POINTS INTERNATIONAL LTD |
Entity Central Index Key | 1,204,413 |
Current Fiscal Year End Date | --12-31 |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 14,111,864 |
Entity Current Reporting Status | Yes |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 69,131 | $ 63,514 |
Restricted cash | 500 | 500 |
Funds receivable from payment processors | 13,512 | 15,229 |
Accounts receivable | 9,318 | 7,741 |
Prepaid taxes | 383 | 457 |
Prepaid expenses and other assets | 3,618 | 1,963 |
Total current assets | 96,462 | 89,404 |
Non-current assets | ||
Property and equipment | 2,351 | 2,128 |
Intangible assets | 13,952 | 15,265 |
Goodwill | 7,130 | 7,130 |
Deferred tax assets | 2,645 | 2,557 |
Other assets | 2,661 | |
Total non-current assets | 26,078 | 29,741 |
Total assets | 122,540 | 119,145 |
Current liabilities | ||
Accounts payable and accrued liabilities | 9,489 | 7,998 |
Income taxes payable | 117 | 695 |
Payable to loyalty program partners | 69,749 | 65,567 |
Current portion of other liabilities | 1,680 | 1,400 |
Total current liabilities | 81,035 | 75,660 |
Non-current liabilities | ||
Other liabilities | 495 | 538 |
Total non-current liabilities | 495 | 538 |
Total liabilities | 81,530 | 76,198 |
SHAREHOLDERS' EQUITY | ||
Share capital | 53,886 | 56,394 |
Contributed surplus | 4,446 | 10,647 |
Accumulated other comprehensive income (loss) | (646) | 374 |
Accumulated deficit | (16,676) | (24,468) |
Total shareholders' equity | 41,010 | 42,947 |
Total liabilities and shareholders' equity | $ 122,540 | $ 119,145 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUE | ||
Principal | $ 351,743 | $ 332,291 |
Other partner revenue | 24,502 | 16,353 |
Total Revenue | 376,245 | 348,644 |
EXPENSES | ||
Direct cost of principal revenue | 322,341 | 302,094 |
Employment costs | 27,890 | 25,767 |
Marketing and communications | 1,460 | 1,843 |
Technology services | 2,210 | 1,912 |
Depreciation and amortization | 3,364 | 3,988 |
Foreign exchange gain | (36) | (58) |
Operating expenses | 8,786 | 8,470 |
Total Expenses | 366,015 | 344,016 |
Finance income | 666 | 213 |
INCOME BEFORE INCOME TAXES | 10,896 | 4,841 |
Income tax expense | 3,104 | 1,461 |
NET INCOME | 7,792 | 3,380 |
Items that will subsequently be reclassified to profit or loss: | ||
Unrealized gain (loss) on foreign exchange derivatives designated as cash flow hedges | (1,394) | 1,012 |
Income tax effect | 369 | (268) |
Reclassification to net income of loss (gain) on foreign exchange derivatives designated as cash flow hedges | 7 | (331) |
Income tax effect | (2) | 88 |
Other comprehensive income (loss) for the period, net of income tax | (1,020) | 501 |
TOTAL COMPREHENSIVE INCOME | $ 6,772 | $ 3,881 |
EARNINGS PER SHARE | ||
Basic earnings per share | $ 0.54 | $ 0.23 |
Diluted earnings per share | $ 0.54 | $ 0.23 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders Equity - USD ($) $ in Thousands | Total | Share Capital [Member] | Contributed Surplus [Member] | Accumulated other comprehensive loss [Member] | Accumulated deficit [Member] |
Beginning Balance at Dec. 31, 2016 | $ 40,318 | $ 58,412 | $ 9,881 | $ (127) | $ (27,848) |
Beginning Balance (shares) at Dec. 31, 2016 | 14,878,674 | ||||
Statements [Line Items] | |||||
Net income | 3,380 | 3,380 | |||
Other comprehensive loss, net of tax | 501 | 501 | |||
Total comprehensive income | 3,881 | 501 | 3,380 | ||
Effect of share option compensation plan | 247 | 247 | |||
Effect of RSU compensation plan | 4,208 | 4,208 | |||
Share issuances - options exercised | 60 | $ 395 | (335) | ||
Share issuances - options exercised (shares) | 16,988 | ||||
Settlement of RSUs | $ 1,261 | (1,261) | |||
Share capital held in trust | (2,361) | (2,361) | |||
Shares repurchased | (3,406) | $ (1,313) | (2,093) | ||
Shares repurchased (shares) | (334,212) | ||||
Ending Balance at Dec. 31, 2017 | 42,947 | $ 56,394 | 10,647 | 374 | (24,468) |
Ending Balance (shares) at Dec. 31, 2017 | 14,561,450 | ||||
Statements [Line Items] | |||||
Net income | 7,792 | 7,792 | |||
Other comprehensive loss, net of tax | (1,020) | (1,020) | |||
Total comprehensive income | 6,772 | (1,020) | 7,792 | ||
Effect of share option compensation plan | 72 | 72 | |||
Effect of RSU compensation plan | 4,309 | 4,309 | |||
Share issuances - options exercised | 351 | $ 1,385 | (1,034) | ||
Share issuances - options exercised (shares) | 119,521 | ||||
Settlement of RSUs | (2,722) | $ 1,377 | (4,099) | ||
Share capital held in trust | (3,062) | (3,062) | |||
Shares repurchased | (7,657) | $ (2,208) | (5,449) | ||
Shares repurchased (shares) | (569,107) | ||||
Ending Balance at Dec. 31, 2018 | $ 41,010 | $ 53,886 | $ 4,446 | $ (646) | $ (16,676) |
Ending Balance (shares) at Dec. 31, 2018 | 14,111,864 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | ||
Net income for the period | $ 7,792 | $ 3,380 |
Adjustments for: | ||
Depreciation of property and equipment | 981 | 863 |
Amortization of intangible assets | 2,383 | 3,125 |
Unrealized foreign exchange loss (gain) | (960) | 1,334 |
Equity-settled share-based payment transactions | 4,381 | 4,455 |
Deferred income tax expense (recovery) | 279 | (1,223) |
Unrealized net gain (loss) on derivative contracts designated as cash flow hedges | (1,387) | 681 |
Changes in non-cash balances related to operations | 6,552 | 4,150 |
Net cash provided by operating activities | 20,021 | 16,765 |
Cash flows from investing activities | ||
Acquisition of property and equipment | (1,204) | (1,241) |
Additions to intangible assets | (1,070) | (1,494) |
Settlement of short-term investment, net of interest | 0 | 10,033 |
Net cash provided by (used in) investing activities | (2,274) | 7,298 |
Cash flows from financing activities | ||
Proceeds from exercise of share options | 351 | 60 |
Shares repurchased | (7,657) | (3,406) |
Purchase of share capital held in trust | (3,062) | (2,361) |
Taxes paid on net settlement of RSUs | (2,722) | 0 |
Net cash used in financing activities | (13,090) | (5,707) |
Effect of exchange rate fluctuations on cash held | 960 | (1,334) |
Net increase in cash and cash equivalents | 5,617 | 17,022 |
Cash and cash equivalents at beginning of the period | 63,514 | 46,492 |
Cash and cash equivalents at end of the period | 69,131 | 63,514 |
Interest Received | 595 | 265 |
Taxes Received | 110 | 116 |
Taxes Paid | $ (2,838) | $ (3,967) |
REPORTING ENTITY
REPORTING ENTITY | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
REPORTING ENTITY [Text Block] | 1. REPORTING ENTITY Points International Ltd. (the “Corporation”) is a company domiciled in Canada. The address of the Corporation’s registered office is 111 Richmond Street, Suite 700, Toronto, ON, Canada M5H 2G4. The consolidated financial statements of the Corporation as at and for the year ended December 31, 2018 comprise the Corporation and its wholly-owned subsidiaries: Points International (US) Ltd., Points International (UK) Ltd., Points.com Inc., Points Travel Inc., and Points Development (US) Ltd. The Corporation’s shares are publicly traded on the Toronto Stock Exchange (“TSX”) as PTS and on the NASDAQ Capital Market (“NASDAQ”) as PCOM. The Corporation operates in three reportable segments (see Note 4 below) Segment Principal Activities Loyalty Currency Retailing Consists primarily of products and services that facilitate the sale or transfer of loyalty currency direct to loyalty program members Platform Partners A portfolio of technology solutions that enables the broad distribution of loyalty currencies across loyalty partner programs and platforms. Points Travel White-label travel booking solution for the loyalty industry that allows retail consumers to earn and/or use their loyalty currency while making hotel bookings and car rentals online The Corporation’s operations are not subject to significant seasonal fluctuations. The consolidated financial statements of the Corporation as at and for the year ended December 31, 2018 are available at www.sedar.com www.sec.gov |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
BASIS OF PREPARATION [Text Block] | 2. BASIS OF PREPARATION (a) Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements were authorized for issue by the Board of Directors on March 6, 2019. (b) Basis of measurement The consolidated financial statements have been prepared on a historical cost basis except for certain assets and liabilities initially recognized in connection with business combinations, and certain financial instruments, which are measured at fair value. (c) Functional and presentation currency These consolidated financial statements are presented in U.S. dollars (“USD”). The functional currency of the Corporation and each of the Corporation’s wholly-owned subsidiaries is also USD, except for Points Travel Inc. which uses the Canadian dollar (“CAD”) as its functional currency. Items included in the financial statements of each subsidiary are measured using their respective functional currencies and translated for presentation in the consolidated statements as required. All financial information has been rounded to the nearest thousand, except where otherwise indicated. (d) Basis of consolidation Subsidiaries are entities the Corporation controls. Entities over which the Corporation has control are fully consolidated from the date that control commences until the date that control ceases. All intercompany transactions and balances between subsidiaries are eliminated on consolidation. (e) Use of estimates and judgments The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Significant changes in these assumptions, including those related to our future business plans and cash flows, could materially change the amounts we record. Actual results may differ from these estimates. On an ongoing basis, the Corporation has applied judgments in the following areas: determining whether revenue and direct costs of revenue should be appropriately presented on a gross or net basis; determining cash generating units (“CGUs”) and the allocation of goodwill for the purpose of impairment testing; choosing methods for depreciating and amortizing our property and equipment and intangible assets that represent most accurately the consumption of benefits derived from those assets. In making this determination, the Corporation has considered assumptions that are most representative of the economic substance of the intended use of the underlying assets. These same assumptions were used when deciding to designate certain intangible assets as assets with indefinite useful lives as the Corporation believes that there is no limit to the period that these assets are expected to generate net cash inflows; determining which projects qualify for capitalization of direct labour cost to intangible assets determining whether certain hedging relationships and financial instruments qualify for hedge accounting; and interpreting tax rules and regulations. The Corporation also uses significant estimates in the following areas: determining the recoverable amount of financial and non-financial assets when testing for impairment; and determining the fair value of share-based payments and derivative instruments. Estimates are based on historical experience adjusted as appropriate for current circumstances and other assumptions that management believes to be reasonable. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The application of the estimates and judgments noted above are discussed in Note 3. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
SIGNIFICANT ACCOUNTING POLICIES [Text Block] | 3. SIGNIFICANT ACCOUNTING POLICIES (a) New standards adopted in 2018 The accounting policies set out below have been applied consistently by the Corporation and its subsidiaries to all years presented in these consolidated financial statements. In addition, the Corporation adopted the following standards issued by the IASB in 2018: (i) IFRS 15, Revenue from Contracts with Customers (“IFRS15”); Effective January 1, 2018, the Corporation adopted the new standard and its amendments using the full retrospective transition method. As a result, all comparative information in these financial statements has been restated. The accounting policies set out in note 3(b) have been applied in preparing the consolidated financial statements as at and for the year ended December 31, 2018, and the comparative information presented in theseconsolidated financial statements as at and for the year ended December 31, 2017. The application of IFRS 15 did not result in adjustments to the consolidated statements of financial position at January 1, 2017 or December 31, 2017, nor did it impact cash flow totals from operating, investing or financing activities. Certain adjustments were identified with respect to the classification and presentation of revenue and expenses which are summarized below: Certain revenues previously classified as net are recognized as gross under IFRS 15. In determining whether the Corporation acts as a principal or an agent for each respective product and business line, the Corporation identified the specified good or service in the contract and then evaluated whether the Corporation controls that good or service before it is transferred to the customer. Factors considered in making the determination include whether the Corporation is primarily responsible for fulfilling the promise to provide the specified good or service, has inventory risk and/or has discretion in establishing the prices for the specified goods and services provided. Through this analysis, management has concluded that: The Corporation acts as principal for certain transactions where the Corporation sells loyalty currency direct to the loyalty program members relating to loyalty partners where it was determined that the Corporation obtains control of the loyalty currency. The Corporation also acts as a principal in the delivery of certain services, including transfer, reinstate, hosting and website development services provided to loyalty partners. The Corporation acts as an agent for certain transactions where the Corporation sells loyalty currency direct to loyalty program members relating to loyalty partners where it was determined that the Corporation does not obtain control of the underlying loyalty currency. In addition, the Corporation acts as an agent for all of the Platform Partners offerings along with the Points Travel products. Under IFRS 15, the Corporation reclassified interest earned on cash and cash equivalents, previously recorded as interest revenue, to a separate line item called Finance Income, as it was determined it does not represent revenue from contracts with customers Under IFRS 15, the Corporation has reclassified losses arising on certain Points Travel promotional offers resulting from upfront customer acquisition costs, from marketing and communications expense to revenue. The reclassified amount represents the transaction price that the Corporation is entitled to in exchange for the services provided. Refer to note 3(b) for the Corporation’s revised revenue recognition policy. Reconciliation of consolidated statement of comprehensive income for the year ended December 31, 2017: As Loyalty Points Interest Restated Originally Currency Travel Reclassification Presented Retailing REVENUE Principal $ 330,565 1,726 - - $ 332,291 Other partner revenue 16,768 (202 ) (213 ) - 16,353 Interest 213 - - (213 ) - Total Revenue $ 347,546 1,524 (213 ) (213 ) $ 348,644 EXPENSES Direct cost of principal revenue 300,570 1,524 - - 302,094 Marketing and communications 2,056 - (213 ) - 1,843 Total Expenses $ 342,705 1,524 (213 ) - $ 344,016 Finance income - - - 213 213 Income before Income Taxes $ 4,841 - - - $ 4,841 NET INCOME $ 3,380 - - - $ 3,380 (ii) IFRS 9, Financial Instruments (“IFRS 9”): IFRS 9 supersedes IAS 39 Financial Instruments Recognition and Measurement. The standard set out revised guidance for classifying and measuring financial instruments, introduced a new expected credit loss model (“ECL”) for calculating impairment of financial assets and includes new guidance for the application of hedge accounting. The standard also requires that when a financial liability measured at amortized cost is modified or exchanged, and such modification or exchange does not result in derecognition, that the adjustment to the amortized cost of the financial liability is recognized in profit or loss. The Corporation has adopted IFRS 9 on a retrospective basis without restating comparative periods as it was not possible to do so without the use of hindsight. The standard does not have an impact on the Corporation’s results andallows for simplified hedge effectiveness testing going forward. The Corporation has determined that there is no effect on the current or prior year financial statements with regards to the adoption of IFRS 9. IFRS 9 realigns hedge accounting to more closely reflect the Corporation’s risk management strategy. Refer to note 3(d) for the Corporation’s revised financial instrument policy. The Corporation also adopted new amendments to the following accounting standards commencing January 1, 2018. These changes did not have a material impact on our financial results. • IFRS 2, Share-based Payment; and • IFRIC Interpretation 22, Foreign Currency Translation and Advance Consideration (b) Revenue recognition The Corporation’s revenue is categorized as principal or other partner revenue, and is primarily generated through the sale of loyalty currencies, through services provided to loyalty partners’ program members, and through technology and marketing services provided to loyalty partners. Contracts with customers 1. Identify the contract with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price, which is the amount the Corporation expects to be entitled to; 4. Allocate the transaction price among the performance obligations in the contract based on their relative stand-alone selling prices; and 5. Recognize revenue when or as the goods or services are transferred to the customer. Principal Revenue (i) Reseller revenue is transactional revenue for the sale of loyalty currencies that occurs in contracts for which the Corporation takes a principal role in the retailing or wholesaling of loyalty currencies to loyalty program customers. The customer obtains control of the loyalty currency, and hence the performance obligation is satisfied, on completion of the transaction which aligns with the point in time the loyalty currency is transferred and payment is received. The Corporation’s role as the principal in the transaction is determined by the contractual arrangements in place with the loyalty program partner and their members. In this instance, the Corporation has determined that it obtains control of the loyalty currency prior to transferring it to the customer, due in part to inventory risk that is assumed by the Corporation. Other factors considered in making the determination include the fact that the Corporation is primarily responsible for fulfilling the promise to provide the specified good, and often has discretion in establishing the prices for the specified goods. (ii) Service revenue is transactional revenue for the provision of transfer and reinstate services provided to loyalty program members. The Corporation is primarily responsible for fulfilling the promise to provide the services. Transfer and reinstate service revenue is recognized at the point in time the transaction is completed, which is also when payment is received. (iii) Hosting services are provided to loyalty program partners throughout the term of the loyalty program partner agreement. The hosting services begin, and hence revenue recognition commences when the loyalty program partner website is functional. Revenue is recognized on a straight-line basis over the life of the term of the partner agreement. Costs that relate directly to the contract are capitalized to the extent that they are expected to be recovered and are amortized as the services are transferred. Other Partner Revenue When deciding the most appropriate basis for presenting revenue on either a gross or net basis, both the legal form and substance of the agreements between the Corporation, its partners and their program members are reviewed to determine each party’s respective role in the transaction. This determination requires the exercise of judgment. In making this assessment, management considers whether the Corporation: • acts on behalf of the loyalty partner or the program member in identifying the customer in certain arrangements; (c) Foreign currency translation (i) Foreign currency transactions Transactions in currencies other than the Corporation’s or its subsidiaries’ respective functional currency are recognized at the exchange rates in effect on the transaction date. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency at the exchange rates prevailing at that date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated to the functional currency at the exchange rates prevailing at the date when the fair value was determined. Non-monetary items that are measured at historical cost in a foreign currency are not translated. Foreign exchange gains and losses on monetary items are recognized in profit or loss; except for foreign currency derivatives designated as qualifying cash flow hedges, the fair values of which are deferred in accumulated other comprehensive income in shareholders’ equity until such time that the hedged transaction affects profit or loss; refer to Notes 3(d)(iv) and 17. (ii) Foreign operations The assets and liabilities of the Corporation’s non-USD functional currency subsidiary, including goodwill and fair value adjustments arising on acquisition, are translated to USD at exchange rates at the reporting date. The income and expenses of this subsidiary are translated to USD using average exchange rates for the month during which the transactions occurred. Foreign currency differences resulting from translation are recognized in other comprehensive income (“OCI”) within the cumulative translation account. (d) Financial instruments All financial assets and financial liabilities are recognized on the Corporation’s consolidated statements of financial position when the Corporation becomes a party to the contractual provisions of the instrument. (i) Classification and measurement of financial instruments The Corporation’s financial instruments as a result of adopting IFRS 9 (along with a comparison to IAS 39) are classified and measured as follows: Asset/Liability Measurement under IFRS 9 Cash and cash equivalents Amortized cost Restricted cash Amortized cost Funds receivable from payment processors Amortized cost Accounts receivable Amortized cost Accounts payable and accrued liabilities Amortized cost Payable to loyalty program partners Amortized cost Derivatives Measurement Foreign exchange forward contracts Fair value, with changes in fair value for hedges recorded in OCI and ineffectiveness recorded in profit or loss. Asset/Liability Measurement under IAS 39 Funds receivable from payment processors Loans and receivables (Amortized cost) Accounts receivable Loans and receivables (Amortized cost) Short-term investments Held to maturity (Amortized cost) Accounts payable and accrued liabilities Other financial liabilities (Amortized cost) Payable to loyalty program partners Other financial liabilities (Amortized cost) Derivatives Measurement Foreign exchange forward contracts Held for trading (Fair value through OCI under hedge accounting with ineffectiveness recorded in profit or loss) Financial assets held at amortized cost require the asset to be measured using the effective interest method. The amortized cost is reduced by impairment losses. Finance income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss. Derivatives may be in an asset or liability position at a point in time historically or in the future. For derivatives designated as cash flow hedges for accounting purposes, the effective portion of the hedge is recognized in accumulated other comprehensive income and the ineffective portion of the hedge is recognized immediately in profit or loss. (ii) Impairment of financial instruments IFRS 9 requires the expected lifetime credit losses at initial recognition to be considered when assessing impairment of financial assets, which is anticipated to result in earlier recognition of losses. (iii) Share capital Common shares are classified as equity. Incremental costs directly attributable to the issuance of common shares and share options are recognized as a deduction from equity, net of any tax effects. Authorized with no Par Value Unlimited common shares Issued As at December 31, 2018, all issued shares are fully paid. The holders of common shares are entitled to receive dividends as declared from time to time, and are entitled to one vote per share. There were no dividends declared in 2018 (2017 – nil). (iv) Derivative financial instruments, including hedge accounting The Corporation holds derivative financial instruments to hedge its foreign currency risk exposures. These derivatives are designated in accounting hedge relationships and the Corporation applies cash flow hedge accounting. On initial designation of the hedge, the Corporation formally documents the relationship between the hedging instrument and hedged item, including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Corporation makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, whether the hedging instruments are expected to be “highly effective” in offsetting the changes in the fair value or cash flows of the respective hedged items during the period for which the hedge is designated. For a cash flow hedge of a forecasted transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that could ultimately affect reported net income. Derivatives are recognized initially at fair value; attributable transaction costs are recognized in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below. Cash flow hedges If the hedging instrument no longer meets the criteria for hedge accounting, is expired, sold, terminated, exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. The cumulative gain or loss previously recognized in OCI and presented in unrealized gains/losses on cash flow hedges in equity remains there until the forecasted transaction affects profit or loss. If the forecasted transaction is no longer expected to occur, then the balance in OCI is recognized immediately in profit or loss. (e) Cash and cash equivalents Cash equivalents include highly liquid investments (term deposits) with maturities of three months or less at the date of purchase. They are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. Cash equivalents are carried at amortized cost which approximates their fair value because of the short-term nature of the instruments. (f) Funds receivable from payment processors Funds receivable from payment processors represent amounts collected from customers on behalf of the Corporation and are typically deposited directly to the Corporation’s bank account within three business days from the date of sale. (g) Property and equipment (i) Recognition and measurement Items of property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The cost consists of the purchase price, and any costs directly attributable to bringing the asset to the location and condition for its intended use. When parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment. Gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with the carrying amount of property and equipment, and are recognized within other income in profit or loss. (ii) Depreciation Depreciation is calculated over the depreciable amount, which is the cost of an asset less its estimated residual value. Depreciation is recognized in profit or loss based on the estimated useful lives of the assets using the following methods and annual rates: • Furniture and fixtures Straight-line over 5 years • Computer hardware Straight-line over 3 years • Computer software Straight-line over 3 years • Leasehold improvements Straight-line over shorter of useful life or the lease term Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate. There were no changes in the current year. (h) Goodwill & Intangible assets (i) Goodwill Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value of the identifiable tangible and intangible net assets acquired. Goodwill is not amortized. The Corporation tests goodwill for impairment annually, at each year end, to determine whether the carrying value exceeds the recoverable amount, as discussed in Note 3(i). Business combinations Acquisitions of subsidiaries are accounted for using the acquisition method of accounting. Fair value of the consideration paid is calculated as the sum of the fair value at the date of acquisition of: • assets acquired; plus • equity instruments issued; less • liabilities incurred or assumed. Goodwill is measured as the fair value of consideration transferred less the net recognized amount of the identifiable assets acquired and liabilities assumed, all of which are measured at fair value as of the acquisition date. When the excess is negative, a bargain purchase gain is recognized immediately in profit or loss. The Corporation uses estimates and judgments to determine the fair value of assets acquired and liabilities assumed at the acquisition date using the best available information, including information from financial markets. The estimates and judgments include key assumptions such as discount rates, attrition rates, and terminal growth rates for performing discounted cash flow analyses. The transaction costs associated with the acquisitions are expensed as incurred. (ii) Internal use software development costs Certain costs incurred in connection with the development of software to be used internally or for providing services to customers are capitalized once a project has progressed beyond a conceptual, preliminary stage to that of application development. Development costs that are directly attributable to the design and testing of identifiable software products controlled by the Corporation are recognized as intangible assets when the following criteria are met: • It is technically feasible to complete the software product so that it will be available for use; • Management intends to complete the software product and use or sell it; • It can be demonstrated how the software product will generate probable future economic benefits; • Adequate technical, financial and other resources to complete the development and to use or sell the software product are available; and • The expenditure attributable to the software product during its development can be reliably measured. Development costs that qualify for capitalization include both internal and external costs, but are limited to those that are directly related to the specific product. The capitalized development costs are measured at cost less accumulated amortization and accumulated impairment losses. Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditures, including costs incurred in the planning stage and operating stage and expenditures on internally generated goodwill and brands, are recognized in profit or loss as incurred. Indefinite useful lives Finite useful lives • Customer Relationships Straight-line over 10 years • Technology Straight-line over 3 to 5 years (i) Impairment Financial Assets IFRS 9 replaces the “incurred loss” model in IAS 39 with an ECL model. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can estimated reliably. Non-Financial Assets with Finite Useful Lives In accordance with IAS 36, Impairment of Assets Goodwill & Indefinite Life Intangible Assets Goodwill and intangible assets that are not amortized are subject to an annual impairment assessment, and the recoverable amount is estimated each year at the same time. The recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purposes of assessing impairment, assets that do not generate independent cash inflows are grouped at the lowest level for which there are separately identifiable cash inflows, into CGUs. CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to the CGU or group of CGUs that are expected to benefit from the synergies of the combination. If the recoverable amount of the CGU or group of CGUs to which goodwill and indefinite life intangible assets has been allocated is less than the carrying amount of the CGU or group of CGUs, including goodwill and intangible assets, an impairment loss is recorded in the consolidated statements of comprehensive income. The impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to the other assets of the CGU pro-rata on the basis of the carrying amount of each asset in the CGU. The Corporation evaluates impairment losses for potential reversals, other than goodwill impairment, when events or changes in circumstances warrant such consideration. Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, provided that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or CGU in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. (j) Share-based payment transactions Employees The Corporation has two share-based compensation plans for its employees: a share option plan and a share unit plan. The share option plan allows directors, officers and employees to acquire shares of the Corporation through the exercise of share options granted by the Corporation. Options generally vest over a period of three years, or upon the achievement of certain non-market performance conditions. The maximum life of an option is ten years from the date of grant. For options with graded vesting, each grant in an award is considered a separate grant with a different vesting date, expected life and fair value. The fair value of each grant is recognized in profit or loss over its respective vesting period with a corresponding increase in contributed surplus. The fair value of each grant is estimated at the date of grant using the Black-Scholes option pricing model incorporating assumptions regarding risk-free interest rates, dividend yield, expected volatility of the Corporation’s stock, and a weighted average expected life of the options. Any consideration paid on the exercise of share options is added to share capital along with the related portion previously added to contributed surplus when the compensation costs were charged to profit or loss. The cost is recorded over the vesting period of the award to the same expense category of the award recipient’s payroll costs and the corresponding entry is recorded in equity. Equity-settled awards are not re-measured subsequent to the initial grant date. The stock option expense incorporates an expected forfeiture rate, estimated based on expected employee turnover. Annually, the Corporation reassesses the forfeiture rate and the probability of achieving each performance metric and calculates the cumulative compensation cost of each grant and recognizes an adjustment to the compensation cost (recovery) in the current period in the consolidated statement of comprehensive income. Under the share unit plan, the Corporation grants Restricted Share Units (“RSUs”) to its employees. The RSUs vest over a period of up to three years or in full on the third anniversary of the grant date. The fair value of a RSU, defined as the volume weighted average trading price per share on the stock exchange during the immediately preceding five trading days, is recognized over the RSU’s vesting period and charged to profit or loss with a corresponding increase in contributed surplus. Under the share unit plan, share units can be settled in cash or shares at the Corporation’s discretion. The Corporation intends to settle all share units in equity at the end of the vesting period. In determining the number of awards that are expected to vest, the Corporation takes into account voluntary termination behaviour as well as trends of actual forfeitures. (i) Significant judgments, estimates and assumptions The Corporation measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 15. (k) Payable to loyalty program partners Payable to loyalty program partners includes amounts owing to these partners for loyalty currency purchased by the Corporation as a principal or as an agent collected through ecommerce services for retailing, wholesaling and other loyalty currency services transactions with end users. (l) Deferred revenue Deferred revenue includes proceeds received in advance for technology design and development work and is recognized over the expected life of the partner agreement (see Note 3(b) (iii)). Deferred revenue is comprised of bookings made through the Points Travel platform, which have not yet occurred along with proceeds received by the Corporation for the sale of mileage codes that can be redeemed for multiple loyalty program currencies at a later date. Revenue for bookings through Points Travel is recognized at the completion of the rental while revenue from the sale of these mileage codes is recognized upon redemption. Deferred revenue is included in other liabilities. (m) Lease inducements On signing its office lease, the Corporation received lease inducements from the landlord including a rent-free period and a tenant improvement allowance based on square footage of rentable area of the premises. Lease inducements are amortized to rent expense on a straight-line basis over the term of the lease. Lease inducements are included in other liabilities. (n) Income taxes Income tax expenses comprise current and deferred taxes. Current taxes and deferred taxes are recognized in profit or loss except to the extent that they relate to a business combination, or items recognized directly in equity or in OCI. Current taxes are the expected taxes payable or receivable on the taxable income or loss for the period, using tax rates substantively enacted at the reporting date, and any adjustment to taxes payable in respect of previous years. Deferred taxes are recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred taxes are not recognized for: • temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; • temporary differences related to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future; and • taxable temporary differences arising on the initial recognition of goodwill. Deferred tax assets and liabilities are measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been substantively enacted by the reporting date. In determining the amount of current and deferred tax, the Corporation takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. The Corporation believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. When new information becomes available that causes the Corporation to change its judgment regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. (o) Earnings per share (“EPS”) The Corporation presents basic and diluted earnings per share data for its common shares. Basic EPS is calculated by dividing the profit or loss attributable to common shareholders of the Corporation by the weighted average number of common shares outstanding during the period. Diluted EPS is determined by dividing the profit or loss attributable to common shareholders by the weighted average number of common shares outstanding adjusted for the effects of all dilutive potential common shares. (p) Segment reporting The Corporation determines its reportable segments based on, among other things, how the Corporation’s chief operating decision maker (“CODM”), the Chief Executive Officer, regularly reviews the Corporation’s operations and performance. The CODM reviews gross profit, which is defined as total revenue less direct cost of principal revenue, and segment profit (loss) represented by Contribution, which is defined as gross profit (total revenue less direct cost of principal revenue) |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
OPERATING SEGMENTS [Text Block] | 4. OPERATING SEGMENTS The Corporation’s reportable segments are Loyalty Currency Retailing, Platform Partners, and Points Travel. These operating segments are organized around differences in products and services. During the year ended December 31, 2018, the Corporation re-defined the measure of segment profit or loss to Contribution from Adjusted EBITDA. The Corporation determined that Contribution was the more appropriate measure of segment profit or loss used by the Chief Operating Decision Maker (“CODM”) in reviewing segment results and making resource allocation decisions. Contribution is defined as gross profit (total revenue less direct cost of principal revenue) for the relevant operating segment less direct adjusted operating expenses. Direct adjusted operating expenses are expenses which are directly attributable to each operating segment. Assets and liabilities are not provided to the CODM at the operating segment level and are therefore not allocated to the operating segments for reporting purposes. The Corporation has restated the disclosures for the year ended December 31, 2017 to reflect this change in segment performance measure. There have been no changes in the Corporation’s reportable segments. For the year ended December 31, 2018: Loyalty Currency Retailing Platform Partners Points Travel Total Total revenue 366,421 7,979 1,845 376,245 Direct cost of principal revenue 321,615 615 111 322,341 Gross profit 44,806 7,364 1,734 53,904 Direct adjusted operating expenses 12,941 3,784 5,522 22,247 Contribution 31,865 3,580 (3,788 ) 31,657 Indirect adjusted operating expenses 1 13,718 Finance income (666 ) Equity-settled share-based payment expense 4,381 Income tax expense 3,104 Depreciation and amortization 3,364 Foreign exchange gain (36 ) Net income 7,792 For the year ended December 31, 2017: Loyalty Platform Points Total Total revenue 339,652 7,704 1,288 348,644 Direct cost of principal revenue 301,492 570 32 302,094 Gross profit 38,160 7,134 1,256 46,550 Direct adjusted operating expenses 11,515 4,644 4,292 20,451 Contribution 26,645 2,490 (3,036 ) 26,099 Indirect adjusted operating expenses 1 13,086 Finance income (213 ) Equity-settled share-based payment expense 4,455 Income tax expense 1,461 Depreciation and amortization 3,988 Foreign exchange gain (58 ) Net income 3,380 1 Transaction price allocated to the remaining performance obligations The following table provides information about the nature and timing of the satisfaction of performance obligations in contracts with customers. Total Year 1 Year 2 Year 3 Year 4 Year 5+ Hosting and other $ 3,209 $ 2,525 $ 312 $ 186 $ 186 - Enterprise-wide disclosures - Geographic information 2018 2017 For the year ended December 31 (restated - Note 3 (a)) Revenue United States $ 331,625 88% $ 304,116 87% Europe 25,661 7% 31,873 9% Other 18,959 5% 12,655 4% $ 376,245 100% $ 348,644 100% Revenue earned by the Corporation is generated from sales to loyalty program partners directly or from sales directly to members of loyalty programs with which the Corporation partners. Revenues by geographic region are shown above and are based on the country of residence of each of the Corporation’s loyalty partners. As at December 31, 2018, substantially all of the Corporation's assets were in Canada. Dependence on loyalty program partners For the year ended December 31, 2018, there were three (2017 – three) loyalty program partners for which sales to their members individually represented more than 10% of the Corporation’s total revenue. In aggregate, sales to the members of these partners represented 70% (2017 – 69%) of the Corporation’s total revenue. |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
RESTRICTED CASH [Text Block] | 5. RESTRICTED CASH Restricted cash of $500 (2017 – $500) is held as collateral for forward contracts entered into during the normal course of business. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
ACCOUNTS RECEIVABLE [Text Block] | 6. ACCOUNTS RECEIVABLE The Corporation's accounts receivable are comprised mainly of amounts owing to the Corporation by loyalty program partners for transactions carried out on the Points.com website and amounts owing to the Corporation by companies that perform loyalty program transactions where the Corporation is a partner in facilitating such transactions. The amount is presented net of an allowance for doubtful accounts. Accounts receivable are comprised of: 2018 2017 Accounts receivable before allowance for doubtful accounts $ 9,472 $ 7,832 Allowance for doubtful accounts (154 ) (91 ) Accounts receivable $ 9,318 $ 7,741 The Corporation’s exposure to credit and currency risks related to accounts receivable is disclosed in Note 17. |
PREPAID EXPENSES AND OTHER ASSE
PREPAID EXPENSES AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
PREPAID EXPENSES AND OTHER ASSETS [Text Block] | 7. PREPAID EXPENSES AND OTHER ASSETS Prepaid expenses and other assets are comprised of: 2018 2017 Prepaid expenses $ 1,464 $ 1,352 Foreign exchange forward contracts designated as cash flow hedges - 550 Loyalty reward currency inventory 2,154 58 Current portion of deferred costs - 3 Prepaid expenses and current portion of other assets $ 3,618 $ 1,963 Non-current portion of loyalty reward currency inventory $ - $ 2,661 Other assets $ - $ 2,661 The loyalty reward currency inventory was classified as current and is expected to be sold to loyalty program members during 2019. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
PROPERTY AND EQUIPMENT [Text Block] | 8. PROPERTY AND EQUIPMENT Computer Computer Furniture & Leasehold Total Hardware Software Fixtures Improvements Cost Balance at January 1, 2017 $ 2,609 $ 2,190 $ 1,044 $ 706 $ 6,549 Additions 526 19 188 508 1,241 Disposals / Write-Offs - - (154 ) - (154 ) Balance at December 31, 2017 $ 3,135 $ 2,209 $ 1,078 $ 1,214 $ 7,636 Additions 664 433 26 81 1,204 Balance at December 31, 2018 $ 3,799 $ 2,642 $ 1,104 $ 1,295 $ 8,840 Computer Computer Furniture & Leasehold Total Hardware Software Fixtures Improvements Cost Depreciation and impairment losses Balance at January 1, 2017 $ 2,225 $ 1,751 $ 768 $ 55 $ 4,799 Depreciation for the year 322 216 129 196 863 Disposals / Write-Offs - - (154 ) - (154 ) Balance at December 31, 2017 $ 2,547 $ 1,967 $ 743 $ 251 $ 5,508 Depreciation for the year 369 263 110 239 981 Balance at December 31, 2018 $ 2,916 $ 2,230 $ 853 $ 490 $ 6,489 Carrying amounts At December 31, 2017 $ 588 $ 242 $ 335 $ 963 $ 2,128 At December 31, 2018 $ 883 $ 412 $ 251 $ 805 $ 2,351 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
INTANGIBLE ASSETS [Text Block] | 9. INTANGIBLE ASSETS Customer Domain Technology (2 ) Other (1 ) Total Relation- Names (1 ) ships Cost Balance at January 1, 2017 $ 8,500 $ 4,300 $ 18,453 $ 205 $ 31,458 Additions - - 1,494 - 1,494 Balance at December 31, 2017 $ 8,500 $ 4,300 $ 19,947 $ 205 $ 32,952 Additions - - 1,070 - 1,070 Balance at December 31, 2018 $ 8,500 $ 4,300 $ 21,017 $ 205 $ 34,022 Amortization and impairment losses Balance at January 1, 2017 $ 1,771 $ - $ 12,791 $ - $ 14,562 Amortization for the year 850 - 2,275 - 3,125 Balance at December 31, 2017 $ 2,621 $ - $ 15,066 $ - $ 17,687 Amortization for the year 850 - 1,533 - 2,383 Balance at December 31, 2018 $ 3,471 $ - $ 16,599 $ - $ 20,070 Carrying amounts At December 31, 2017 $ 5,879 $ 4,300 $ 4,881 $ 205 $ 15,265 At December 31, 2018 $ 5,029 $ 4,300 $ 4,418 $ 205 $ 13,952 (1) Domain names and Other which includes Patents and Trademarks are deemed to have indefinite useful lives and are therefore not amortized. The Corporation's classification of certain intangible assets with indefinite useful lives is based on the expectation that these assets will continue to contribute to the Corporation’s net cash inflows on an indefinite basis. The determination of these assets as having indefinite useful lives is based on judgment that includes an analysis of relevant factors, including the expected usage of the asset, anticipated renewal of the licenses, the typical life cycle of the asset and anticipated changes in the market demand for the products and services that the asset helps generate. (2) Technology includes technological assets acquired through acquisitions and internal use software development costs. During the year ended December 31, 2018, an amount of $3,768 was recognized as research and development expenses in employment costs in the consolidated statement of comprehensive income (2017 - $3,561). |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
GOODWILL [Text Block] | 10. GOODWILL Cost Balance at January 1, 2017 $ 7,130 Additions - Impairments - Balance at December 31, 2017 $ 7,130 Additions - Impairments - Balance at December 31, 2018 $ 7,130 Impairment testing for cash-generating units containing goodwill as at December 31, 2018 The Corporation tests CGUs or groups of CGUs with indefinite life intangible assets and/or allocated goodwill for impairment as at December 31 of each calendar year. For the purposes of the 2018 annual impairment test, management has determined that the Corporation has three CGUs (Note 1), being Loyalty Currency Retailing, Platform Partners and Points Travel. The goodwill value has been allocated to the CGUs that are expected to benefit from the synergies of the business combinations in which goodwill arose. When assessing whether or not there is impairment, the Corporation determines the recoverable amount of a CGU based on the greater of its value in use or its fair value less costs to sell. Value in use is estimated by discounting estimated future cash flows to their present value. Management estimates the discounted future cash flows and a terminal value. The future cash flows are based on estimates of expected future operating results of the CGUs after considering economic conditions and a general outlook for the CGU’s industry. Discount rates consider market rates of return, debt to equity ratios and certain risk premiums, among other things. The terminal value is the value attributed to the CGU's operations beyond the projected time period of the cash flows using a perpetuity rate based on expected economic conditions and a general outlook for the industry. Management has made certain assumptions for the discount and terminal growth rates to reflect variations in expected future cash flows. These assumptions may differ or change quickly depending on economic conditions or other events. It is therefore possible that future changes in assumptions may negatively affect future valuations of CGUs, which could result in impairment losses. The table below provides an overview of the methods and assumptions that Management has used to determine recoverable amounts for the CGUs with indefinite life intangible assets and goodwill. (In thousands of dollars, except years and percentages) Carrying value Carrying of indefinite-life Recoverable Period Terminal Pre-tax value of intangible amount used growth discount goodwill assets method (years) rate % rate % Loyalty Currency Points Travel $1,449 - Value in Use 7 2.0% 28.8% The annual testing was completed in 2018 and 2017, and no impairment was identified. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
INCOME TAXES [Text Block] | 11. INCOME TAXES 2018 2017 Current Tax Expense Current year $ 2,640 $ 2,410 Prior years 185 274 Total current tax expense $ 2,825 $ 2,684 Deferred Tax Expense (recovery) Current year movement in recognized temporary differences and losses 279 (1,223 ) Total deferred tax expense (recovery) $ 279 $ (1,223 ) Total income tax expense $ 3,104 $ 1,461 Reconciliation of effective tax rate The total provision for income taxes differs from that amount which would be computed by applying the Canadian statutory income tax rate to income before income taxes. The reasons for these differences are as follows: 2018 2017 Income tax expense at statutory rate of 26.5% (2017 – 26.5%) $ 2,887 $ 1,284 Increase in taxes resulting from: Tax cost of non-deductible items 124 126 Other differences 93 51 Income tax expense $ 3,104 $ 1,461 Recognized deferred tax assets Deferred tax assets are attributable to the following: 2018 2017 Deferred tax assets Forward exchange contracts $ 233 $ - Fixed and Intangible assets 975 873 Reserves 237 269 Restricted Share Units 1,044 1,482 Tax losses 215 67 $ 2,704 $ 2,691 Deferred tax liabilities SRED $ 59 $ - Forward exchange contracts - 134 Net deferred tax assets $ 2,645 $ 2,557 The Corporation has capital losses of $10,456 (2017 – $10,456) which can be carried forward indefinitely and are not included as part of the recognized deferred tax assets. The Corporation has non-capital loss carry-forwards in Canada for income tax purposes in the amount of approximately $813 (2017 – $253). The losses may be used to reduce future years' taxable income and expire approximately as follows: Total 2032 $ 219 2036 244 2037 350 Total $ 813 Management has concluded the deferred tax asset meets the relevant recognition criteria under IFRS. Management's conclusion is supported by management’s forecasts and the future reversal of existing taxable temporary differences which are expected to produce sufficient taxable income to realize the deferred tax assets. Unrecognized deferred tax assets Deferred tax assets have not been recognized in respect of the following items: 2018 2017 Capital losses $ 1,385 $ 1,385 Temporary Differences Associated with Points International Ltd. Investments The temporary difference associated with the investments in the Corporation’s subsidiaries is $369 (2017- $287). A deferred tax liability associated with these investments has not been recognized as the Corporation controls the timing of the reversal and it is probable that the temporary difference will not reverse in the foreseeable future. As at December 31, 2018 and 2017, no deferred tax liability was recognized for taxes that would be payable on the unremitted earnings of certain subsidiaries of Points International Ltd. as the Corporation has determined that the undistributed profits of its subsidiaries will not be distributed in the foreseeable future. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
OTHER LIABILITIES [Text Block] | 12. OTHER LIABILITIES 2018 2017 Foreign exchange forward contracts designated as cash flow hedges $ 878 $ 43 Current portion of lease inducements 120 113 Current portion of deferred revenue 682 1,244 Current portion of other liabilities $ 1,680 $ 1,400 Non-current portion of lease inducements 362 483 Non-current portion of deferred revenue 133 55 Other liabilities $ 495 $ 538 Deferred Revenue The following table presents changes in the deferred revenue balances: Balance at December 31, 2017 1,299 Amounts invoiced and revenue deferred 760 Recognition of deferred revenue (1,244 ) Balance at December 31, 2018 815 |
CAPITAL AND OTHER COMPONENTS OF
CAPITAL AND OTHER COMPONENTS OF EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
CAPITAL AND OTHER COMPONENTS OF EQUITY [Text Block] | 13. CAPITAL AND OTHER COMPONENTS OF EQUITY Accumulated other comprehensive income Accumulated other comprehensive income is comprised of the unrealized gains/losses on cash flow hedges and the cumulative translation adjustment for the translation of a subsidiary accounts where non-USD functional currency balances are translated to the functional currency of the parent. The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred. Normal Course Issuer Bid (“NCIB”) On March 8, 2017, the Board of Directors of the Corporation approved a plan to repurchase the Corporation’s common shares. On August 14, 2018, the NCIB program was renewed with a total of 710,893 shares to be repurchased under this 2018 plan (the “2018 Repurchase”), representing 5% of its 14,217,860 shares issued and outstanding as of July 31, 2018. The Corporation has entered into an automatic share purchase plan with a broker in order to facilitate the 2018 Repurchase. The primary purpose of the 2017 and 2018 Repurchases is for cancellation. Under the automatic share purchase plan, the Corporation may repurchase shares at times when the Corporation would ordinarily not be permitted to due to regulatory restrictions or self-imposed blackout periods. Repurchases will be made from time to time at the brokers' discretion, based upon parameters prescribed by the Corporation’s written agreement. Repurchases may be effected through the facilities of the TSX, the NASDAQ Capital Market ("NASDAQ") or other alternative trading systems in the United States and Canada. The actual number of common shares purchased and the timing of such purchases will be determined by the broker considering market conditions, stock prices, the Corporation’s cash position, and other factors. During the year ended December 31, 2018, the Corporation repurchased and cancelled 569,107 common shares (2017 – 334,212) at an aggregate purchase price of $7,657 (2017 - $3,406), resulting in a reduction of stated capital and contributed surplus of $2,208 and $5,449 respectively (2017 - $1,313 and $2,093). These purchases were made under the 2017 and 2018 Repurchase and are included in calculating the number of common shares that the Corporation may purchase pursuant to the respective NCIB. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
EARNINGS (LOSS) PER SHARE [Text Block] | 14. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: 2018 2017 Net income available to common shareholders for basic and diluted earnings per share $ 7,792 $ 3,380 Weighted average number of common shares outstanding – basic 14,321,186 14,806,020 Effect of dilutive securities 90,817 14,293 Weighted average number of common shares outstanding – diluted 14,412,003 14,820,313 Earnings per share - reported Basic $ 0.54 $ 0.23 Diluted $ 0.54 $ 0.23 a) Diluted earnings per share Diluted earnings per share represents the net income per share if instruments convertible into common shares had been converted at the beginning of the period, or at the time of issuance, if later. In determining diluted earnings per share, the average number of common shares outstanding is increased by the number of shares that would have been issued if all share options with an issue price below the average share price for the period had been exercised at the beginning of the period, or at the time of issuance, if later. The average number of common shares outstanding is also decreased by the number of common shares that could have been repurchased on the open market at the average share price for the year by using the proceeds from the exercise of share options. Share options with a strike price above the average share price for the period are not adjusted because including them would be anti-dilutive. As at December 31, 2018, 101,014 options (2017 – 563,995) were excluded from the diluted weighted average number of common shares calculation as their effect would have been anti-dilutive. The average market value of the Corporation’s shares for purposes of calculating the dilutive effect of share options was based on quoted market prices for the period during which the options were outstanding. |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
SHARE-BASED PAYMENTS [Text Block] | 15. SHARE-BASED PAYMENTS As at December 31, 2018, the Corporation had two share-based compensation plans for its employees: a share option plan and a share unit plan. Share option plan Under the share option plan, employees, directors and consultants are periodically granted share options to purchase common shares at prices not less than the market price of the common shares on the day prior to the date of grant. The options generally vest over a three-year period and expire at the end of five years from the grant date, or may be subject to non-market performance conditions established by the Board of Directors. During the year ended 2018, the Corporation granted 930,000 performance-based stock options to executives to acquire shares of the Corporation, which vest on the achievement of the associated performance targets. (2017 – nil). On the date of grant, the Company estimates the expected vesting date for purposes of estimating the option life and recording the related expense. These options vest as performance targets are satisfied and expire at the end of six years. Under the plan, share options can only be settled in equity. The share option plan authorized he number of net options for grant to be determined based on 10% of the larger of the outstanding shares as at March 2, 2016 or any time thereafter. The options available for grant as at December 31, 2018 are shown in the table below: December 31, 2018 Shares outstanding as at March 2, 2016 15,298,602 Percentage of shares outstanding 10% Net options authorized 1,529,860 Less: options issued & outstanding (1,229,040 ) Options available for grant 300,820 27 | P a g e POINTS INTERNATIONAL LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS All amounts in thousands of U.S. dollars, except per share figures, unless otherwise noted The fair value of each option grant is estimated at the date of grant using the Black-Scholes option pricing model. Expected volatility is determined by the amount the Corporation’s daily share price fluctuated over the expected life of the options. The fair value of options granted in 2018 were calculated using the following weighted assumptions. 2018 Dividend yield NIL Risk free rate 2.06% - 2.09% Expected volatility 40.59% - 44.51% Expected life of options in years 3.10 – 6.00 Weighted average fair value of options granted (CAD) $4.24 - $6.16 A summary of the status of the Corporation’s share option plan as of December 31, 2018 and 2017, and changes during the years ended on those dates is presented below. 2018 2017 Weighted Weighted Average Average Number of Exercise Price Number of Exercise Price Options (in CAD$) Options (in CAD$) Beginning of year 615,843 $16.00 723,995 $15.25 Granted 930,000 $13.93 - $ - Exercised (308,711) $13.51 (80,973) $ 9.74 Expired and forfeited (8,092) $25.56 (27,179) $14.58 End of year 1,229,040 $15.00 615,843 $16.00 Exercisable at end of year 299,040 $18.32 521,538 $16.67 For the year ended December 31, 2018: Options outstanding Options exercisable Weighted Weighted Weighted average average average remaining exercise Number exercise Range of Exercise Number contractual life price (in of price (in Prices (in CAD$) of options (years) CAD$) options CAD$) $5.00 to $9.99 22,280 2.19 $ 9.89 22,280 $ 9.89 $10.00 to $14.99 1,105,746 5.21 $ 13.67 175,746 $ 12.27 $15.00 to $19.99 1,169 0.75 $ 19.82 1,169 $ 19.82 $20.00 and over 99,845 0.21 $ 30.84 99,845 $ 30.84 1,229,040 299,040 For the year ended December 31, 2017: Options outstanding Options exercisable Weighted average Weighted Weighted Range of Exercise Number of remaining average Number average Prices (in CAD$) options contractual life exercise of options exercise price (years) price (in (in CAD$) CAD$) $5.00 to $9.99 39,401 3.19 $ 9.89 39,401 $ 9.89 $10.00 to $14.99 352,002 2.30 $ 12.27 257,697 $ 12.25 $15.00 to $19.99 119,370 0.23 $ 15.98 119,370 $ 15.98 $20.00 and over 105,070 1.21 $ 30.84 105,070 $ 30.84 615,843 521,538 28 | P a g e POINTS INTERNATIONAL LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS All amounts in thousands of U.S. dollars, except per share figures, unless otherwise noted Share unit plan On March 7, 2012 the Corporation implemented an employee share unit plan (the “Share Unit Plan”) under which employees are periodically granted RSUs. The RSUs vest on grant date, over a period of up to three years after the grant date or in full on the third anniversary of the grant date. During 2018, 442,353 RSUs were granted (2017 – 376,473). As at December 31, 2018, 657,727 RSUs were outstanding (2017 – 711,936 RSUs). Number of RSUs Weighted Average Fair Value (in CAD$) Balance at January 1, 2018 711,936 $ 10.16 Granted 442,353 $ 13.83 Vested (457,408) $ 11.67 Forfeited (39,154) $ 11.62 Balance at December 31, 2018 657,727 $ 11.50 Number of RSUs Weighted Average Fair Value (in CAD$) Balance at January 1, 2017 480,302 $ 12.17 Granted 376,473 $ 9.48 Vested (98,182) $ 16.38 Forfeited (46,657) $ 12.20 Balance at December 31, 2017 711,936 $ 10.16 The fair value of each RSU, determined at the date of grant using the volume weighted average trading price per share on the TSX during the immediately preceding five trading days, is recognized over the RSU’s vesting period and charged to profit or loss with a corresponding increase in contributed surplus. Under the Share Unit Plan, share units can be settled in cash or shares at the Corporation’s discretion. The Corporation intends to settle all share units in equity at the end of the vesting period. To fulfill this obligation, the Corporation has appointed a trustee to administer the program and purchase shares from the open market through a share purchase trust on a periodic basis. There were 272,067 share units purchased by the trust at a cost of $3,062 during the year ended December 31, 2018 (2017 – 208,600 shares at a cost of $2,361). In addition, commencing in 2018, the Corporation paid withholding taxes in cash rather than reselling shares held in trust into the market. The Corporation paid $2,722 for the year ended December 31, 2018 (2017 - $0). As at December 31, 2018, 199,708 of the Corporation’s common shares were held in trust for this purpose (December 31, 2017 – 194,251). The Corporation accounts for the share-based awards granted under both plans in accordance with the fair value based method of accounting for equity settled share-based compensation arrangements per IFRS 2, Share-based Payment |
OPERATING EXPENSES
OPERATING EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
OPERATING EXPENSES [Text Block] | 16. OPERATING EXPENSES 2018 2017 Office expenses $ 2,409 $ 2,507 Travel 2,118 1,949 Professional fees 2,988 2,806 Insurance, bad debts and governance 1,271 1,208 Operating expenses $ 8,786 $ 8,470 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
FINANCIAL INSTRUMENTS [Text Block] | 17. FINANCIAL INSTRUMENTS The Corporation has exposure to the following risks from its use of financial instruments: • credit risk • liquidity risk • market risk This note presents information about the Corporation’s exposure to each of the above risks, the Corporation’s objectives, policies and processes for measuring and managing risk, and the Corporation’s management of capital. Further quantitative disclosures are included throughout these consolidated financial statements. Risk management framework The Board of Directors has overall responsibility for the establishment and oversight of the Corporation’s risk management framework. The Corporation’s risk management policies are established to identify and analyze the risks faced by the Corporation, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Corporation’s activities. The Corporation, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The Corporation’s Audit Committee oversees how management monitors compliance with the Corporation’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Corporation. Credit risk Credit risk is the risk of financial loss to the Corporation if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Corporation’s receivables from customers. The Corporation’s cash and cash equivalents, restricted cash held as collateral and short-term investments also subject the Corporation to credit risk. The Corporation has term deposits, consistent with its practice of protecting its capital rather than maximizing investment yield. The Corporation manages credit risk by investing in cash equivalents and term deposits from financial institutions rated at A or R1 or above. The Corporation, in the normal course of business, is exposed to credit risk from its customers and the accounts receivable are subject to normal industry risks. The Corporation usually provides various loyalty currency services to loyalty program operators which normally results in an amount payable to the loyalty program operator in excess of the amount held in accounts receivable. The Corporation also manages and analyzes its accounts receivable on an ongoing basis and hence the Corporation’s exposure to bad debts has not been significant. The aging of accounts receivable is as follows: December 31, 2018 December 31, 2017 Current $ 7,992 $ 6,554 Past due 31–60 days 475 420 Past due 61–90 days 108 244 Past due 91–120 days 228 139 Past due over 120 days 669 475 Trade accounts receivable 9,472 7,832 Less allowance for doubtful accounts (154 ) (91 ) $ 9,318 $ 7,741 The following table provides the change in allowance for doubtful accounts for trade accounts receivable: 2018 2017 Balance, beginning of year $ 91 $ 163 Provision for doubtful accounts 105 102 Bad debts written off, net of recoveries (42 ) (174 ) Balance, end of year $ 154 $ 91 The provision for doubtful accounts has been included in operating expenses in the consolidated statements of comprehensive income, and is net of any recoveries of amounts that were provided for in a prior period. The carrying amount of the Corporation’s current financial assets represent its maximum exposure to credit risk. Liquidity risk Liquidity risk is the risk that the Corporation will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Corporation actively maintains access to adequate funding sources to ensure it has sufficient available funds to meet current and foreseeable financial requirements at a reasonable cost. The following table summarizes the carrying amount and the contractual maturities of both the interest and principal portion of significant financial liabilities as at December 31, 2018 and 2017: Contractual Cash Flow Maturities Carrying Total Within 1 1 year 3 years Amount year to 3 and As at December 31, 2018 years beyond Accounts payable and accrued liabilities $ 9,489 $ 9,489 $ 9,489 - - Foreign exchange forward contracts designated as cash flow hedges 878 878 878 - - Income taxes payable 117 117 117 - - Payable to loyalty program partners 69,749 69,749 69,749 - - $ 80,233 $ 80,233 $ 80,233 $ - $ - Contractual Cash Flow Maturities Carrying Total Within 1 1 year 3 years Amount year to 3 and As at December 31, 2017 years beyond Accounts payable and accrued liabilities $ 7,998 $ 7,998 $ 7,998 - - Foreign exchange forward contracts designated as cash flow hedges 43 43 43 - - Income taxes payable 695 695 695 - - Payable to loyalty program partners 65,567 65,567 65,567 - - $ 74,303 $ 74,303 $ 74,303 $ - $ - Management believes that cash on hand, future cash flows generated from operations and availability of current and future funding will be adequate to repay these financial liabilities when they become due. Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will affect the Corporation’s cash flows or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. Currency risk The Corporation has customers and suppliers that transact in currencies other than the USD which gives rise to a risk that earnings and cash flows may be adversely affected by fluctuations in foreign currency exchange rates. The Corporation is primarily exposed to the Canadian dollar, the EURO and the British Pound. The Corporation has entered into foreign exchange forward contracts to reduce the foreign exchange risk with respect to Canadian dollar denominated disbursements. Revenues earned from the Corporation’s partners based in Canada are contracted in and paid in Canadian dollars. The Corporation uses these funds to fund the Canadian operating expenses thereby reducing its exposure to foreign currency fluctuations. As at December 31, 2018, forward contracts with a notional value of $15,110, and in a net liability position of $878 (2017 – $507 in net asset position), with settlement dates extending to November 2019, have been designated as cash flow hedges for hedge accounting treatment under IFRS 9, Financial Instruments The change in fair value of derivatives designated as cash flow hedges is recognized in OCI, except for any ineffective portion, which is recognized immediately in the foreign exchange gain or loss. As at December 31, 2018 and 2017, all hedges were considered effective. Realized gains and losses in accumulated other comprehensive income are reclassified to profit or loss in the same period as the corresponding hedged items are recognized in income. In 2018, total realized losses of $7 were reclassified to employment costs for Canadian dollar currency hedges (2017 - $331 total realized gains). The carrying amount of hedging derivatives designated in cash flow hedges that mature within one year is included in prepaid expenses and other assets and/or current portion of other liabilities. The Corporation holds balances in foreign currencies that give rise to exposure to foreign exchange risk. In general and strictly relating to the foreign exchange (“FX”) gain or loss of translating certain non-USD balance sheet accounts, a strengthening USD will lead to an FX loss on assets and gain on liabilities and vice versa. Sensitivity to a +/- 10% movement in all currencies held by the Corporation versus the US dollar would affect the Corporation’s net income by $632 (2017 - $407) excluding the effect of hedging. Significant balances denominated in foreign currencies that are considered financial instruments are as follows: As at December 31, 2018 CAD GBP EUR JPY FX Rates used to translate to USD 0.73361 1.27356 1.14449 0.00909 Balances below in source currency Cash and cash equivalents 3,667 8,430 5,660 97,455 Funds receivable from payment processors 221 740 1,556 30,043 Accounts receivable 691 2,597 774 68,795 4,579 11,767 7,990 196,293 Financial liabilities Accounts payable and accrued liabilities 1,370 2,547 774 18,515 Payable to loyalty program partners 1,380 8,237 5,382 71,868 2,750 10,784 6,156 90,383 As at December 31, 2017 CAD GBP EUR JPY FX Rates used to translate to USD 0.7966 1.3491 1.1979 0.0089 Balances below in source currency Cash and cash equivalents 2,143 4,371 4,444 181,454 Funds receivable from payment processors 745 527 1,673 57,239 Accounts receivable 334 2,091 432 34,355 3,222 6,989 6,549 273,048 Financial liabilities Accounts payable and accrued liabilities 4,233 2,149 255 8,370 Payable to loyalty program partners 1,413 5,254 6,103 71,376 5,646 7,403 6,358 79,746 Interest rate risk The Corporation does not believe that the results of operations or cash flows would be affected to any significant degree by a sudden change in market interest rates, relative to interest rates on the investments, owing to the short-term nature of the investments. Determination of fair value For financial assets and liabilities that are valued at other than fair value on the consolidated statement of financial position (funds receivable from payment processors, short-term investments, security deposits, accounts receivable, accounts payable and accrued liabilities and payable to loyalty program partners), fair value approximates the carrying value at December 31, 2018 and 2017 due to their short-term maturities. A number of the Corporation’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. (i) Intangible assets (ii) Derivatives Fair value hierarchy The Corporation has determined the estimated fair values of its financial instruments based on appropriate valuation methodologies, as disclosed below. However, considerable judgment is required to develop certain of these estimates. Accordingly, these estimated values are not necessarily indicative of the amounts the Corporation could realize in a current market exchange. The estimated fair value amounts can be materially affected by the use of different assumptions or methodologies. The methods and assumptions used to estimate the fair value of each class of financial instruments are discussed below. The table below analyzes financial instruments carried at fair value, by valuation method. The different levels have been defined as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). Quoted market prices for an identical asset or liability represent a Level 1 valuation. When quoted market prices are not available, the Corporation maximizes the use of observable inputs within valuation models. When all significant inputs are observable, the valuation is classified as Level 2. Valuations that require the use of significant unobservable inputs are considered Level 3. The carrying value of financial assets and financial liabilities measured at fair value in the consolidated statement of financial position as at December 31, 2018 and 2017 are as follows: 2018 Carrying Value Level 2 Assets: Foreign exchange forward contracts designated as cash flow hedges (i) $ - $ - Liabilities: Foreign exchange forward contracts designated as cash flow hedges (i) (878 ) (878 ) $ (878 ) $ (878 ) 2017 Carrying Value Level 2 Assets: Foreign exchange forward contracts designated as cash flow hedges (i) $ 550 $ 550 Liabilities: Foreign exchange forward contracts designated as cash flow hedges (i) (43 ) (43 ) $ 507 $ 507 (i) The carrying values of the Corporation’s foreign exchange forward contracts are included in prepaid expenses and other assets and current portion of other liabilities in the consolidated statements of financial position. There were no material financial instruments categorized in Level 1 or Level 3 as at December 31, 2018 and December 31, 2017 and there were no transfers of fair value measurement between Levels 2 and 3 of the fair value hierarchy in the respective periods. |
GUARANTEES AND COMMITMENTS
GUARANTEES AND COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
GUARANTEES AND COMMITMENTS [Text Block] | 18. GUARANTEES AND COMMITMENTS Total Year 1 (3) Year 2 Year 3 Year 4 Year 5+ Operating leases (1) $ 7,401 $ 1,945 $ 1,820 $ 1,761 $ 1,731 $ 144 Direct cost of principal revenue (2) 466,947 144,527 83,416 78,582 53,474 106,948 $ 474,348 $ 146,472 $ 85,236 $ 80,343 $ 55,205 $ 107,092 (1) The Corporation is obligated under various non-cancellable operating leases for premises and equipment and service agreements for web hosting services. (2) For certain loyalty partners, the Corporation guarantees a minimum level of purchase of points/miles, for each contract year, over the duration of the contract term between the Corporation and loyalty program partner. Management evaluates each guarantee at each reporting date and at the end of each contract year, to determine if the guarantee was met for that respective contract year. (3) The guarantees and commitments schedule is prepared on a rolling 12-month basis. The Corporation leases office premises, equipment and services under operating leases. The leases typically run for a period of 1 to 7 years, with an option to renew the lease after that date. During the year ended December 31, 2018 an amount of $2,105 was recognized as an expense in profit or loss in respect of operating leases (2017 - $2,011). |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
SUPPLEMENTAL CASH FLOW INFORMATION [Text Block] | 19. SUPPLEMENTAL CASH FLOW INFORMATION Changes in non-cash balances related to operations are as follows: 2018 2017 Decrease (Increase) in funds receivable from payment processors $ 1,717 $ (4,768 ) Increase in accounts receivable (1,577 ) (3,684 ) Increase in taxes, prepaid expenses and other assets (1,581 ) (945 ) Decrease in other assets 2,661 54 Increase in accounts payable and accrued liabilities 1,491 1,663 Decrease in income taxes payable (578 ) (943 ) Increase in other liabilities 237 448 Increase in payable to loyalty program partners 4,182 12,325 $ 6,552 $ 4,150 |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
RELATED PARTIES [Text Block] | 20. RELATED PARTIES Transactions with key management personnel Compensation In addition to their salaries, the Corporation also provides non-cash benefits to directors and executive officers. Directors and executive officers participate in the Corporation’s share-based compensation plans (see Note 15). Key management personnel compensation comprised the following: In thousands of Canadian dollars 2018 2017 Short-term employee salaries and benefits $ 2,382 $ 2,240 Share-based payments 3,232 3,230 Total compensation $ 5,614 $ 5,470 |
CREDIT FACILITIES
CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
CREDIT FACILITIES [Text Block] | 21. CREDIT FACILITIES On June 30, 2018, the Corporation amended its bank credit facility agreement with Royal Bank of Canada. The following two facilities are available to the Corporation as of December 31, 2018: Revolving operating facility (“Facility #1”) of $8,500 available until May 31, 2019. The interest rate charged on borrowings from Facility #1 ranges from 0.35% to 0.75% per annum over the bank base rate. Term loan facility (“Facility #2”) of $5,000 to be utilized solely for the purposes of financing the cash consideration relating to acquisitions made by the Corporation. This facility is available until May 31, 2019. The interest rate charged on borrowings from Facility #2 ranges from 0.40% to 0.80% per annum over the bank base rate. The Corporation is required to comply with certain financial and non-financial covenants under the agreement. The Corporation is in compliance with all applicable covenants on its facilities as at ended December 31, 2018. The Corporation did not have any borrowings as at or during the year ended December 31, 2018. Capital management The Corporation’s financial strategy is designed and formulated to maintain a flexible capital structure to allow the Corporation the ability to respond to changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust its capital structure, the Corporation may issue debt. The Corporation’s financing and refinancing decisions are made on a specific transaction basis and depend on such things as the Corporation’s needs, and market and economic conditions at the time of the transaction. The Corporation may invest in longer or shorter term investments depending on eventual liquidity requirements. The Corporation does not have any externally imposed capital compliance requirements other than restricted cash and those required to maintain the credit facilities. There were no changes in the Corporation’s approach to capital management during the year. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
New accounting pronouncements adopted in 2018 [Policy Text Block] | (a) New standards adopted in 2018 The accounting policies set out below have been applied consistently by the Corporation and its subsidiaries to all years presented in these consolidated financial statements. In addition, the Corporation adopted the following standards issued by the IASB in 2018: (i) IFRS 15, Revenue from Contracts with Customers (“IFRS15”); Effective January 1, 2018, the Corporation adopted the new standard and its amendments using the full retrospective transition method. As a result, all comparative information in these financial statements has been restated. The accounting policies set out in note 3(b) have been applied in preparing the consolidated financial statements as at and for the year ended December 31, 2018, and the comparative information presented in theseconsolidated financial statements as at and for the year ended December 31, 2017. The application of IFRS 15 did not result in adjustments to the consolidated statements of financial position at January 1, 2017 or December 31, 2017, nor did it impact cash flow totals from operating, investing or financing activities. Certain adjustments were identified with respect to the classification and presentation of revenue and expenses which are summarized below: Certain revenues previously classified as net are recognized as gross under IFRS 15. In determining whether the Corporation acts as a principal or an agent for each respective product and business line, the Corporation identified the specified good or service in the contract and then evaluated whether the Corporation controls that good or service before it is transferred to the customer. Factors considered in making the determination include whether the Corporation is primarily responsible for fulfilling the promise to provide the specified good or service, has inventory risk and/or has discretion in establishing the prices for the specified goods and services provided. Through this analysis, management has concluded that: The Corporation acts as principal for certain transactions where the Corporation sells loyalty currency direct to the loyalty program members relating to loyalty partners where it was determined that the Corporation obtains control of the loyalty currency. The Corporation also acts as a principal in the delivery of certain services, including transfer, reinstate, hosting and website development services provided to loyalty partners. The Corporation acts as an agent for certain transactions where the Corporation sells loyalty currency direct to loyalty program members relating to loyalty partners where it was determined that the Corporation does not obtain control of the underlying loyalty currency. In addition, the Corporation acts as an agent for all of the Platform Partners offerings along with the Points Travel products. Under IFRS 15, the Corporation reclassified interest earned on cash and cash equivalents, previously recorded as interest revenue, to a separate line item called Finance Income, as it was determined it does not represent revenue from contracts with customers Under IFRS 15, the Corporation has reclassified losses arising on certain Points Travel promotional offers resulting from upfront customer acquisition costs, from marketing and communications expense to revenue. The reclassified amount represents the transaction price that the Corporation is entitled to in exchange for the services provided. Refer to note 3(b) for the Corporation’s revised revenue recognition policy. Reconciliation of consolidated statement of comprehensive income for the year ended December 31, 2017: As Loyalty Points Interest Restated Originally Currency Travel Reclassification Presented Retailing REVENUE Principal $ 330,565 1,726 - - $ 332,291 Other partner revenue 16,768 (202 ) (213 ) - 16,353 Interest 213 - - (213 ) - Total Revenue $ 347,546 1,524 (213 ) (213 ) $ 348,644 EXPENSES Direct cost of principal revenue 300,570 1,524 - - 302,094 Marketing and communications 2,056 - (213 ) - 1,843 Total Expenses $ 342,705 1,524 (213 ) - $ 344,016 Finance income - - - 213 213 Income before Income Taxes $ 4,841 - - - $ 4,841 NET INCOME $ 3,380 - - - $ 3,380 (ii) IFRS 9, Financial Instruments (“IFRS 9”): IFRS 9 supersedes IAS 39 Financial Instruments Recognition and Measurement. The standard set out revised guidance for classifying and measuring financial instruments, introduced a new expected credit loss model (“ECL”) for calculating impairment of financial assets and includes new guidance for the application of hedge accounting. The standard also requires that when a financial liability measured at amortized cost is modified or exchanged, and such modification or exchange does not result in derecognition, that the adjustment to the amortized cost of the financial liability is recognized in profit or loss. The Corporation has adopted IFRS 9 on a retrospective basis without restating comparative periods as it was not possible to do so without the use of hindsight. The standard does not have an impact on the Corporation’s results andallows for simplified hedge effectiveness testing going forward. The Corporation has determined that there is no effect on the current or prior year financial statements with regards to the adoption of IFRS 9. IFRS 9 realigns hedge accounting to more closely reflect the Corporation’s risk management strategy. Refer to note 3(d) for the Corporation’s revised financial instrument policy. The Corporation also adopted new amendments to the following accounting standards commencing January 1, 2018. These changes did not have a material impact on our financial results. • IFRS 2, Share-based Payment; and • IFRIC Interpretation 22, Foreign Currency Translation and Advance Consideration |
Revenue recognition [Policy Text Block] | (b) Revenue recognition The Corporation’s revenue is categorized as principal or other partner revenue, and is primarily generated through the sale of loyalty currencies, through services provided to loyalty partners’ program members, and through technology and marketing services provided to loyalty partners. Contracts with customers 1. Identify the contract with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price, which is the amount the Corporation expects to be entitled to; 4. Allocate the transaction price among the performance obligations in the contract based on their relative stand-alone selling prices; and 5. Recognize revenue when or as the goods or services are transferred to the customer. Principal Revenue (i) Reseller revenue is transactional revenue for the sale of loyalty currencies that occurs in contracts for which the Corporation takes a principal role in the retailing or wholesaling of loyalty currencies to loyalty program customers. The customer obtains control of the loyalty currency, and hence the performance obligation is satisfied, on completion of the transaction which aligns with the point in time the loyalty currency is transferred and payment is received. The Corporation’s role as the principal in the transaction is determined by the contractual arrangements in place with the loyalty program partner and their members. In this instance, the Corporation has determined that it obtains control of the loyalty currency prior to transferring it to the customer, due in part to inventory risk that is assumed by the Corporation. Other factors considered in making the determination include the fact that the Corporation is primarily responsible for fulfilling the promise to provide the specified good, and often has discretion in establishing the prices for the specified goods. (ii) Service revenue is transactional revenue for the provision of transfer and reinstate services provided to loyalty program members. The Corporation is primarily responsible for fulfilling the promise to provide the services. Transfer and reinstate service revenue is recognized at the point in time the transaction is completed, which is also when payment is received. (iii) Hosting services are provided to loyalty program partners throughout the term of the loyalty program partner agreement. The hosting services begin, and hence revenue recognition commences when the loyalty program partner website is functional. Revenue is recognized on a straight-line basis over the life of the term of the partner agreement. Costs that relate directly to the contract are capitalized to the extent that they are expected to be recovered and are amortized as the services are transferred. Other Partner Revenue When deciding the most appropriate basis for presenting revenue on either a gross or net basis, both the legal form and substance of the agreements between the Corporation, its partners and their program members are reviewed to determine each party’s respective role in the transaction. This determination requires the exercise of judgment. In making this assessment, management considers whether the Corporation: • acts on behalf of the loyalty partner or the program member in identifying the customer in certain arrangements; |
Foreign currency translation [Policy Text Block] | (c) Foreign currency translation (i) Foreign currency transactions Transactions in currencies other than the Corporation’s or its subsidiaries’ respective functional currency are recognized at the exchange rates in effect on the transaction date. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency at the exchange rates prevailing at that date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated to the functional currency at the exchange rates prevailing at the date when the fair value was determined. Non-monetary items that are measured at historical cost in a foreign currency are not translated. Foreign exchange gains and losses on monetary items are recognized in profit or loss; except for foreign currency derivatives designated as qualifying cash flow hedges, the fair values of which are deferred in accumulated other comprehensive income in shareholders’ equity until such time that the hedged transaction affects profit or loss; refer to Notes 3(d)(iv) and 17. (ii) Foreign operations The assets and liabilities of the Corporation’s non-USD functional currency subsidiary, including goodwill and fair value adjustments arising on acquisition, are translated to USD at exchange rates at the reporting date. The income and expenses of this subsidiary are translated to USD using average exchange rates for the month during which the transactions occurred. Foreign currency differences resulting from translation are recognized in other comprehensive income (“OCI”) within the cumulative translation account. |
Financial instruments [Policy Text Block] | (d) Financial instruments All financial assets and financial liabilities are recognized on the Corporation’s consolidated statements of financial position when the Corporation becomes a party to the contractual provisions of the instrument. (i) Classification and measurement of financial instruments The Corporation’s financial instruments as a result of adopting IFRS 9 (along with a comparison to IAS 39) are classified and measured as follows: Asset/Liability Measurement under IFRS 9 Cash and cash equivalents Amortized cost Restricted cash Amortized cost Funds receivable from payment processors Amortized cost Accounts receivable Amortized cost Accounts payable and accrued liabilities Amortized cost Payable to loyalty program partners Amortized cost Derivatives Measurement Foreign exchange forward contracts Fair value, with changes in fair value for hedges recorded in OCI and ineffectiveness recorded in profit or loss. Asset/Liability Measurement under IAS 39 Funds receivable from payment processors Loans and receivables (Amortized cost) Accounts receivable Loans and receivables (Amortized cost) Short-term investments Held to maturity (Amortized cost) Accounts payable and accrued liabilities Other financial liabilities (Amortized cost) Payable to loyalty program partners Other financial liabilities (Amortized cost) Derivatives Measurement Foreign exchange forward contracts Held for trading (Fair value through OCI under hedge accounting with ineffectiveness recorded in profit or loss) Financial assets held at amortized cost require the asset to be measured using the effective interest method. The amortized cost is reduced by impairment losses. Finance income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss. Derivatives may be in an asset or liability position at a point in time historically or in the future. For derivatives designated as cash flow hedges for accounting purposes, the effective portion of the hedge is recognized in accumulated other comprehensive income and the ineffective portion of the hedge is recognized immediately in profit or loss. (ii) Impairment of financial instruments IFRS 9 requires the expected lifetime credit losses at initial recognition to be considered when assessing impairment of financial assets, which is anticipated to result in earlier recognition of losses. (iii) Share capital Common shares are classified as equity. Incremental costs directly attributable to the issuance of common shares and share options are recognized as a deduction from equity, net of any tax effects. Authorized with no Par Value Unlimited common shares Issued As at December 31, 2018, all issued shares are fully paid. The holders of common shares are entitled to receive dividends as declared from time to time, and are entitled to one vote per share. There were no dividends declared in 2018 (2017 – nil). (iv) Derivative financial instruments, including hedge accounting The Corporation holds derivative financial instruments to hedge its foreign currency risk exposures. These derivatives are designated in accounting hedge relationships and the Corporation applies cash flow hedge accounting. On initial designation of the hedge, the Corporation formally documents the relationship between the hedging instrument and hedged item, including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Corporation makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, whether the hedging instruments are expected to be “highly effective” in offsetting the changes in the fair value or cash flows of the respective hedged items during the period for which the hedge is designated. For a cash flow hedge of a forecasted transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that could ultimately affect reported net income. Derivatives are recognized initially at fair value; attributable transaction costs are recognized in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below. Cash flow hedges If the hedging instrument no longer meets the criteria for hedge accounting, is expired, sold, terminated, exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. The cumulative gain or loss previously recognized in OCI and presented in unrealized gains/losses on cash flow hedges in equity remains there until the forecasted transaction affects profit or loss. If the forecasted transaction is no longer expected to occur, then the balance in OCI is recognized immediately in profit or loss. |
Cash and cash equivalents [Policy Text Block] | (e) Cash and cash equivalents Cash equivalents include highly liquid investments (term deposits) with maturities of three months or less at the date of purchase. They are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. Cash equivalents are carried at amortized cost which approximates their fair value because of the short-term nature of the instruments. |
Funds receivable from payment processors [Policy Text Block] | (f) Funds receivable from payment processors Funds receivable from payment processors represent amounts collected from customers on behalf of the Corporation and are typically deposited directly to the Corporation’s bank account within three business days from the date of sale. |
Property and equipment [Policy Text Block] | (g) Property and equipment (i) Recognition and measurement Items of property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The cost consists of the purchase price, and any costs directly attributable to bringing the asset to the location and condition for its intended use. When parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment. Gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with the carrying amount of property and equipment, and are recognized within other income in profit or loss. (ii) Depreciation Depreciation is calculated over the depreciable amount, which is the cost of an asset less its estimated residual value. Depreciation is recognized in profit or loss based on the estimated useful lives of the assets using the following methods and annual rates: • Furniture and fixtures Straight-line over 5 years • Computer hardware Straight-line over 3 years • Computer software Straight-line over 3 years • Leasehold improvements Straight-line over shorter of useful life or the lease term Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate. There were no changes in the current year. |
Goodwill & Intangible assets [Policy Text Block] | (h) Goodwill & Intangible assets (i) Goodwill Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value of the identifiable tangible and intangible net assets acquired. Goodwill is not amortized. The Corporation tests goodwill for impairment annually, at each year end, to determine whether the carrying value exceeds the recoverable amount, as discussed in Note 3(i). Business combinations Acquisitions of subsidiaries are accounted for using the acquisition method of accounting. Fair value of the consideration paid is calculated as the sum of the fair value at the date of acquisition of: • assets acquired; plus • equity instruments issued; less • liabilities incurred or assumed. Goodwill is measured as the fair value of consideration transferred less the net recognized amount of the identifiable assets acquired and liabilities assumed, all of which are measured at fair value as of the acquisition date. When the excess is negative, a bargain purchase gain is recognized immediately in profit or loss. The Corporation uses estimates and judgments to determine the fair value of assets acquired and liabilities assumed at the acquisition date using the best available information, including information from financial markets. The estimates and judgments include key assumptions such as discount rates, attrition rates, and terminal growth rates for performing discounted cash flow analyses. The transaction costs associated with the acquisitions are expensed as incurred. (ii) Internal use software development costs Certain costs incurred in connection with the development of software to be used internally or for providing services to customers are capitalized once a project has progressed beyond a conceptual, preliminary stage to that of application development. Development costs that are directly attributable to the design and testing of identifiable software products controlled by the Corporation are recognized as intangible assets when the following criteria are met: • It is technically feasible to complete the software product so that it will be available for use; • Management intends to complete the software product and use or sell it; • It can be demonstrated how the software product will generate probable future economic benefits; • Adequate technical, financial and other resources to complete the development and to use or sell the software product are available; and • The expenditure attributable to the software product during its development can be reliably measured. Development costs that qualify for capitalization include both internal and external costs, but are limited to those that are directly related to the specific product. The capitalized development costs are measured at cost less accumulated amortization and accumulated impairment losses. Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditures, including costs incurred in the planning stage and operating stage and expenditures on internally generated goodwill and brands, are recognized in profit or loss as incurred. Indefinite useful lives Finite useful lives • Customer Relationships Straight-line over 10 years • Technology Straight-line over 3 to 5 years |
Impairment [Policy Text Block] | (i) Impairment Financial Assets IFRS 9 replaces the “incurred loss” model in IAS 39 with an ECL model. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can estimated reliably. Non-Financial Assets with Finite Useful Lives In accordance with IAS 36, Impairment of Assets Goodwill & Indefinite Life Intangible Assets Goodwill and intangible assets that are not amortized are subject to an annual impairment assessment, and the recoverable amount is estimated each year at the same time. The recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purposes of assessing impairment, assets that do not generate independent cash inflows are grouped at the lowest level for which there are separately identifiable cash inflows, into CGUs. CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to the CGU or group of CGUs that are expected to benefit from the synergies of the combination. If the recoverable amount of the CGU or group of CGUs to which goodwill and indefinite life intangible assets has been allocated is less than the carrying amount of the CGU or group of CGUs, including goodwill and intangible assets, an impairment loss is recorded in the consolidated statements of comprehensive income. The impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to the other assets of the CGU pro-rata on the basis of the carrying amount of each asset in the CGU. The Corporation evaluates impairment losses for potential reversals, other than goodwill impairment, when events or changes in circumstances warrant such consideration. Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, provided that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or CGU in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. |
Share-based payment transactions [Policy Text Block] | (j) Share-based payment transactions Employees The Corporation has two share-based compensation plans for its employees: a share option plan and a share unit plan. The share option plan allows directors, officers and employees to acquire shares of the Corporation through the exercise of share options granted by the Corporation. Options generally vest over a period of three years, or upon the achievement of certain non-market performance conditions. The maximum life of an option is ten years from the date of grant. For options with graded vesting, each grant in an award is considered a separate grant with a different vesting date, expected life and fair value. The fair value of each grant is recognized in profit or loss over its respective vesting period with a corresponding increase in contributed surplus. The fair value of each grant is estimated at the date of grant using the Black-Scholes option pricing model incorporating assumptions regarding risk-free interest rates, dividend yield, expected volatility of the Corporation’s stock, and a weighted average expected life of the options. Any consideration paid on the exercise of share options is added to share capital along with the related portion previously added to contributed surplus when the compensation costs were charged to profit or loss. The cost is recorded over the vesting period of the award to the same expense category of the award recipient’s payroll costs and the corresponding entry is recorded in equity. Equity-settled awards are not re-measured subsequent to the initial grant date. The stock option expense incorporates an expected forfeiture rate, estimated based on expected employee turnover. Annually, the Corporation reassesses the forfeiture rate and the probability of achieving each performance metric and calculates the cumulative compensation cost of each grant and recognizes an adjustment to the compensation cost (recovery) in the current period in the consolidated statement of comprehensive income. Under the share unit plan, the Corporation grants Restricted Share Units (“RSUs”) to its employees. The RSUs vest over a period of up to three years or in full on the third anniversary of the grant date. The fair value of a RSU, defined as the volume weighted average trading price per share on the stock exchange during the immediately preceding five trading days, is recognized over the RSU’s vesting period and charged to profit or loss with a corresponding increase in contributed surplus. Under the share unit plan, share units can be settled in cash or shares at the Corporation’s discretion. The Corporation intends to settle all share units in equity at the end of the vesting period. In determining the number of awards that are expected to vest, the Corporation takes into account voluntary termination behaviour as well as trends of actual forfeitures. (i) Significant judgments, estimates and assumptions The Corporation measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 15. |
Payable to loyalty program partners [Policy Text Block] | (k) Payable to loyalty program partners Payable to loyalty program partners includes amounts owing to these partners for loyalty currency purchased by the Corporation as a principal or as an agent collected through ecommerce services for retailing, wholesaling and other loyalty currency services transactions with end users. |
Deferred revenue [Policy Text Block] | (l) Deferred revenue Deferred revenue includes proceeds received in advance for technology design and development work and is recognized over the expected life of the partner agreement (see Note 3(b) (iii)). Deferred revenue is comprised of bookings made through the Points Travel platform, which have not yet occurred along with proceeds received by the Corporation for the sale of mileage codes that can be redeemed for multiple loyalty program currencies at a later date. Revenue for bookings through Points Travel is recognized at the completion of the rental while revenue from the sale of these mileage codes is recognized upon redemption. Deferred revenue is included in other liabilities. |
Lease inducements [Policy Text Block] | (m) Lease inducements On signing its office lease, the Corporation received lease inducements from the landlord including a rent-free period and a tenant improvement allowance based on square footage of rentable area of the premises. Lease inducements are amortized to rent expense on a straight-line basis over the term of the lease. Lease inducements are included in other liabilities. |
Income taxes [Policy Text Block] | (n) Income taxes Income tax expenses comprise current and deferred taxes. Current taxes and deferred taxes are recognized in profit or loss except to the extent that they relate to a business combination, or items recognized directly in equity or in OCI. Current taxes are the expected taxes payable or receivable on the taxable income or loss for the period, using tax rates substantively enacted at the reporting date, and any adjustment to taxes payable in respect of previous years. Deferred taxes are recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred taxes are not recognized for: • temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; • temporary differences related to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future; and • taxable temporary differences arising on the initial recognition of goodwill. Deferred tax assets and liabilities are measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been substantively enacted by the reporting date. In determining the amount of current and deferred tax, the Corporation takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. The Corporation believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. When new information becomes available that causes the Corporation to change its judgment regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. |
Earnings per share (EPS) [Policy Text Block] | (o) Earnings per share (“EPS”) The Corporation presents basic and diluted earnings per share data for its common shares. Basic EPS is calculated by dividing the profit or loss attributable to common shareholders of the Corporation by the weighted average number of common shares outstanding during the period. Diluted EPS is determined by dividing the profit or loss attributable to common shareholders by the weighted average number of common shares outstanding adjusted for the effects of all dilutive potential common shares. |
Segment reporting [Policy Text Block] | (p) Segment reporting The Corporation determines its reportable segments based on, among other things, how the Corporation’s chief operating decision maker (“CODM”), the Chief Executive Officer, regularly reviews the Corporation’s operations and performance. The CODM reviews gross profit, which is defined as total revenue less direct cost of principal revenue, and segment profit (loss) represented by Contribution, which is defined as gross profit (total revenue less direct cost of principal revenue) for the relevant operating segment less direct adjusted operating expenses as the key measure of profitability for the purpose of assessing performance for each operating segment and to make decisions about the allocation of resources. Direct adjusted operating expenses are expenses which are directly attributable to each operating segment and the Corporation accounts for transactions between reportable segments in the same way that it accounts for transactions with external parties and eliminates them on consolidation. The Corporation makes significant judgments in determining its operating segments. These are components that engage in business activities from which they may earn revenue and incur expenses, for which operating results are regularly reviewed by the Corporation’s CODM to make decisions about resources to be allocated and to assess component performance, and for which discrete financial information is available. |
New standards and interpretations not yet adopted [Policy Text Block] | (q) New standards and interpretations not yet adopted The IASB has issued the following new standard. This standard has not yet been adopted by the Corporation and could have an impact on future periods. IFRS 16, Leases (effective January 1, 2019). In January 2016, the IASB issued IFRS 16, Leases, which specifies how a company will recognize, measure, present, and disclose leases. The standard introduces a single, on-balance sheet lessee accounting model, requiring lessees to recognize right of use asset and lease liability representing its obligation to make lease payments, unless the lease term is twelve months or less or the underlying leased asset has a low value. The Corporation will adopt IFRS 16 in its financial statements for the annual period beginning on January 1, 2019 using a modified retrospective approach. Comparative information will not be restated. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Disclosure detailed information about reconciliation of consolidated statement of comprehensive income | As Loyalty Points Interest Restated Originally Currency Travel Reclassification Presented Retailing REVENUE Principal $ 330,565 1,726 - - $ 332,291 Other partner revenue 16,768 (202 ) (213 ) - 16,353 Interest 213 - - (213 ) - Total Revenue $ 347,546 1,524 (213 ) (213 ) $ 348,644 EXPENSES Direct cost of principal revenue 300,570 1,524 - - 302,094 Marketing and communications 2,056 - (213 ) - 1,843 Total Expenses $ 342,705 1,524 (213 ) - $ 344,016 Finance income - - - 213 213 Income before Income Taxes $ 4,841 - - - $ 4,841 NET INCOME $ 3,380 - - - $ 3,380 |
Disclosure of detailed information about estimated useful life or depreciation rate [Table Text Block] | • Furniture and fixtures Straight-line over 5 years • Computer hardware Straight-line over 3 years • Computer software Straight-line over 3 years • Leasehold improvements Straight-line over shorter of useful life or the lease term |
Disclosure of detailed information about finite useful lives of intangible assets [Table Text Block] | • Customer Relationships Straight-line over 10 years • Technology Straight-line over 3 to 5 years |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Disclosure of detailed information about revenue and expenses by reportable segments [Table Text Block] | For the year ended December 31, 2018: Loyalty Currency Retailing Platform Partners Points Travel Total Total revenue 366,421 7,979 1,845 376,245 Direct cost of principal revenue 321,615 615 111 322,341 Gross profit 44,806 7,364 1,734 53,904 Direct adjusted operating expenses 12,941 3,784 5,522 22,247 Contribution 31,865 3,580 (3,788 ) 31,657 Indirect adjusted operating expenses 1 13,718 Finance income (666 ) Equity-settled share-based payment expense 4,381 Income tax expense 3,104 Depreciation and amortization 3,364 Foreign exchange gain (36 ) Net income 7,792 For the year ended December 31, 2017: Loyalty Platform Points Total Total revenue 339,652 7,704 1,288 348,644 Direct cost of principal revenue 301,492 570 32 302,094 Gross profit 38,160 7,134 1,256 46,550 Direct adjusted operating expenses 11,515 4,644 4,292 20,451 Contribution 26,645 2,490 (3,036 ) 26,099 Indirect adjusted operating expenses 1 13,086 Finance income (213 ) Equity-settled share-based payment expense 4,455 Income tax expense 1,461 Depreciation and amortization 3,988 Foreign exchange gain (58 ) Net income 3,380 1 |
Disclosure of detailed information about contracted revenues to the remaining performance obligations explanatory | Total Year 1 Year 2 Year 3 Year 4 Year 5+ Hosting and other $ 3,209 $ 2,525 $ 312 $ 186 $ 186 - |
Disclosure of detailed information about revenues, geographic information [Table Text Block] | 2018 2017 For the year ended December 31 (restated - Note 3 (a)) Revenue United States $ 331,625 88% $ 304,116 87% Europe 25,661 7% 31,873 9% Other 18,959 5% 12,655 4% $ 376,245 100% $ 348,644 100% |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Disclosure of detailed information about trade and other receivables [Table Text Block] | 2018 2017 Accounts receivable before allowance for doubtful accounts $ 9,472 $ 7,832 Allowance for doubtful accounts (154 ) (91 ) Accounts receivable $ 9,318 $ 7,741 |
PREPAID EXPENSES AND OTHER AS_2
PREPAID EXPENSES AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Disclosure of prepayments and other assets [text block] [Table Text Block] | 2018 2017 Prepaid expenses $ 1,464 $ 1,352 Foreign exchange forward contracts designated as cash flow hedges - 550 Loyalty reward currency inventory 2,154 58 Current portion of deferred costs - 3 Prepaid expenses and current portion of other assets $ 3,618 $ 1,963 Non-current portion of loyalty reward currency inventory $ - $ 2,661 Other assets $ - $ 2,661 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Disclosure of detailed information about property, plant and equipment [text block] [Table Text Block] | Computer Computer Furniture & Leasehold Total Hardware Software Fixtures Improvements Cost Balance at January 1, 2017 $ 2,609 $ 2,190 $ 1,044 $ 706 $ 6,549 Additions 526 19 188 508 1,241 Disposals / Write-Offs - - (154 ) - (154 ) Balance at December 31, 2017 $ 3,135 $ 2,209 $ 1,078 $ 1,214 $ 7,636 Additions 664 433 26 81 1,204 Balance at December 31, 2018 $ 3,799 $ 2,642 $ 1,104 $ 1,295 $ 8,840 Computer Computer Furniture & Leasehold Total Hardware Software Fixtures Improvements Cost Depreciation and impairment losses Balance at January 1, 2017 $ 2,225 $ 1,751 $ 768 $ 55 $ 4,799 Depreciation for the year 322 216 129 196 863 Disposals / Write-Offs - - (154 ) - (154 ) Balance at December 31, 2017 $ 2,547 $ 1,967 $ 743 $ 251 $ 5,508 Depreciation for the year 369 263 110 239 981 Balance at December 31, 2018 $ 2,916 $ 2,230 $ 853 $ 490 $ 6,489 Carrying amounts At December 31, 2017 $ 588 $ 242 $ 335 $ 963 $ 2,128 At December 31, 2018 $ 883 $ 412 $ 251 $ 805 $ 2,351 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Disclosure of detailed information about intangible assets [Table Text Block] | Customer Domain Technology (2 ) Other (1 ) Total Relation- Names (1 ) ships Cost Balance at January 1, 2017 $ 8,500 $ 4,300 $ 18,453 $ 205 $ 31,458 Additions - - 1,494 - 1,494 Balance at December 31, 2017 $ 8,500 $ 4,300 $ 19,947 $ 205 $ 32,952 Additions - - 1,070 - 1,070 Balance at December 31, 2018 $ 8,500 $ 4,300 $ 21,017 $ 205 $ 34,022 Amortization and impairment losses Balance at January 1, 2017 $ 1,771 $ - $ 12,791 $ - $ 14,562 Amortization for the year 850 - 2,275 - 3,125 Balance at December 31, 2017 $ 2,621 $ - $ 15,066 $ - $ 17,687 Amortization for the year 850 - 1,533 - 2,383 Balance at December 31, 2018 $ 3,471 $ - $ 16,599 $ - $ 20,070 Carrying amounts At December 31, 2017 $ 5,879 $ 4,300 $ 4,881 $ 205 $ 15,265 At December 31, 2018 $ 5,029 $ 4,300 $ 4,418 $ 205 $ 13,952 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Disclosure of detailed information about goodwill [Table Text Block] | Cost Balance at January 1, 2017 $ 7,130 Additions - Impairments - Balance at December 31, 2017 $ 7,130 Additions - Impairments - Balance at December 31, 2018 $ 7,130 |
Disclosure of detailed information about recoverable amounts for cash-generating units with indefinite life intangible assets and goodwill [Table Text Block] | (In thousands of dollars, except years and percentages) Carrying value Carrying of indefinite-life Recoverable Period Terminal Pre-tax value of intangible amount used growth discount goodwill assets method (years) rate % rate % Loyalty Currency Points Travel $1,449 - Value in Use 7 2.0% 28.8% |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Disclosure of detailed information about tax expense [Table Text Block] | 2018 2017 Current Tax Expense Current year $ 2,640 $ 2,410 Prior years 185 274 Total current tax expense $ 2,825 $ 2,684 Deferred Tax Expense (recovery) Current year movement in recognized temporary differences and losses 279 (1,223 ) Total deferred tax expense (recovery) $ 279 $ (1,223 ) Total income tax expense $ 3,104 $ 1,461 |
Disclosure of detailed information about effective income tax expense recovery [Table Text Block] | 2018 2017 Income tax expense at statutory rate of 26.5% (2017 – 26.5%) $ 2,887 $ 1,284 Increase in taxes resulting from: Tax cost of non-deductible items 124 126 Other differences 93 51 Income tax expense $ 3,104 $ 1,461 |
Disclosure of deferred taxes [Table Text Block] | 2018 2017 Deferred tax assets Forward exchange contracts $ 233 $ - Fixed and Intangible assets 975 873 Reserves 237 269 Restricted Share Units 1,044 1,482 Tax losses 215 67 $ 2,704 $ 2,691 Deferred tax liabilities SRED $ 59 $ - Forward exchange contracts - 134 Net deferred tax assets $ 2,645 $ 2,557 |
Disclosure of temporary difference, unused tax losses and unused tax credits [Table Text Block] | Total 2032 $ 219 2036 244 2037 350 Total $ 813 |
Disclosure of detailed information about unrecognized deferred tax assets [Table Text Block] | 2018 2017 Capital losses $ 1,385 $ 1,385 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Disclosure of detailed information about other liabilities [Table Text Block] | 2018 2017 Foreign exchange forward contracts designated as cash flow hedges $ 878 $ 43 Current portion of lease inducements 120 113 Current portion of deferred revenue 682 1,244 Current portion of other liabilities $ 1,680 $ 1,400 Non-current portion of lease inducements 362 483 Non-current portion of deferred revenue 133 55 Other liabilities $ 495 $ 538 |
Disclosure of deferred revenue [Table Text Block] | Balance at December 31, 2017 1,299 Amounts invoiced and revenue deferred 760 Recognition of deferred revenue (1,244 ) Balance at December 31, 2018 815 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Earnings per share [Table Text Block] | 2018 2017 Net income available to common shareholders for basic and diluted earnings per share $ 7,792 $ 3,380 Weighted average number of common shares outstanding – basic 14,321,186 14,806,020 Effect of dilutive securities 90,817 14,293 Weighted average number of common shares outstanding – diluted 14,412,003 14,820,313 Earnings per share - reported Basic $ 0.54 $ 0.23 Diluted $ 0.54 $ 0.23 |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Disclosure of detailed information about stock options available for grant [Table Text Block] | December 31, 2018 Shares outstanding as at March 2, 2016 15,298,602 Percentage of shares outstanding 10% Net options authorized 1,529,860 Less: options issued & outstanding (1,229,040 ) Options available for grant 300,820 |
Disclosure of detailed information about options, valuation assumptions [Table Text Block] | 2018 Dividend yield NIL Risk free rate 2.06% - 2.09% Expected volatility 40.59% - 44.51% Expected life of options in years 3.10 – 6.00 Weighted average fair value of options granted (CAD) $4.24 - $6.16 |
Disclosure of number and weighted average exercise prices of share options [Table Text Block] | 2018 2017 Weighted Weighted Average Average Number of Exercise Price Number of Exercise Price Options (in CAD$) Options (in CAD$) Beginning of year 615,843 $16.00 723,995 $15.25 Granted 930,000 $13.93 - $ - Exercised (308,711) $13.51 (80,973) $ 9.74 Expired and forfeited (8,092) $25.56 (27,179) $14.58 End of year 1,229,040 $15.00 615,843 $16.00 Exercisable at end of year 299,040 $18.32 521,538 $16.67 |
Disclosure of range of exercise prices of outstanding share options [Table Text Block] | Options outstanding Options exercisable Weighted Weighted Weighted average average average remaining exercise Number exercise Range of Exercise Number contractual life price (in of price (in Prices (in CAD$) of options (years) CAD$) options CAD$) $5.00 to $9.99 22,280 2.19 $ 9.89 22,280 $ 9.89 $10.00 to $14.99 1,105,746 5.21 $ 13.67 175,746 $ 12.27 $15.00 to $19.99 1,169 0.75 $ 19.82 1,169 $ 19.82 $20.00 and over 99,845 0.21 $ 30.84 99,845 $ 30.84 1,229,040 299,040 Options outstanding Options exercisable Weighted average Weighted Weighted Range of Exercise Number of remaining average Number average Prices (in CAD$) options contractual life exercise of options exercise price (years) price (in (in CAD$) CAD$) $5.00 to $9.99 39,401 3.19 $ 9.89 39,401 $ 9.89 $10.00 to $14.99 352,002 2.30 $ 12.27 257,697 $ 12.25 $15.00 to $19.99 119,370 0.23 $ 15.98 119,370 $ 15.98 $20.00 and over 105,070 1.21 $ 30.84 105,070 $ 30.84 615,843 521,538 |
Disclosure of restricted share units and performance share units [Table Text Block] | Number of RSUs Weighted Average Fair Value (in CAD$) Balance at January 1, 2018 711,936 $ 10.16 Granted 442,353 $ 13.83 Vested (457,408) $ 11.67 Forfeited (39,154) $ 11.62 Balance at December 31, 2018 657,727 $ 11.50 Number of RSUs Weighted Average Fair Value (in CAD$) Balance at January 1, 2017 480,302 $ 12.17 Granted 376,473 $ 9.48 Vested (98,182) $ 16.38 Forfeited (46,657) $ 12.20 Balance at December 31, 2017 711,936 $ 10.16 |
OPERATING EXPENSES (Tables)
OPERATING EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Disclosure of expenses [Table Text Block] | 2018 2017 Office expenses $ 2,409 $ 2,507 Travel 2,118 1,949 Professional fees 2,988 2,806 Insurance, bad debts and governance 1,271 1,208 Operating expenses $ 8,786 $ 8,470 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Disclosure of detailed information about aging of accounts receivable [Table Text Block] | December 31, 2018 December 31, 2017 Current $ 7,992 $ 6,554 Past due 31–60 days 475 420 Past due 61–90 days 108 244 Past due 91–120 days 228 139 Past due over 120 days 669 475 Trade accounts receivable 9,472 7,832 Less allowance for doubtful accounts (154 ) (91 ) $ 9,318 $ 7,741 |
Disclosure of detailed information about allowance for doubtful accounts for trade accounts receivable [Table Text Block] | 2018 2017 Balance, beginning of year $ 91 $ 163 Provision for doubtful accounts 105 102 Bad debts written off, net of recoveries (42 ) (174 ) Balance, end of year $ 154 $ 91 |
Disclosure of detailed information about contractual cash flow maturities [Table Text Block] | Contractual Cash Flow Maturities Carrying Total Within 1 1 year 3 years Amount year to 3 and As at December 31, 2018 years beyond Accounts payable and accrued liabilities $ 9,489 $ 9,489 $ 9,489 - - Foreign exchange forward contracts designated as cash flow hedges 878 878 878 - - Income taxes payable 117 117 117 - - Payable to loyalty program partners 69,749 69,749 69,749 - - $ 80,233 $ 80,233 $ 80,233 $ - $ - Contractual Cash Flow Maturities Carrying Total Within 1 1 year 3 years Amount year to 3 and As at December 31, 2017 years beyond Accounts payable and accrued liabilities $ 7,998 $ 7,998 $ 7,998 - - Foreign exchange forward contracts designated as cash flow hedges 43 43 43 - - Income taxes payable 695 695 695 - - Payable to loyalty program partners 65,567 65,567 65,567 - - $ 74,303 $ 74,303 $ 74,303 $ - $ - |
Disclosure of detailed information about foreign currency risk [Table Text Block] | As at December 31, 2018 CAD GBP EUR JPY FX Rates used to translate to USD 0.73361 1.27356 1.14449 0.00909 Balances below in source currency Cash and cash equivalents 3,667 8,430 5,660 97,455 Funds receivable from payment processors 221 740 1,556 30,043 Accounts receivable 691 2,597 774 68,795 4,579 11,767 7,990 196,293 Financial liabilities Accounts payable and accrued liabilities 1,370 2,547 774 18,515 Payable to loyalty program partners 1,380 8,237 5,382 71,868 2,750 10,784 6,156 90,383 As at December 31, 2017 CAD GBP EUR JPY FX Rates used to translate to USD 0.7966 1.3491 1.1979 0.0089 Balances below in source currency Cash and cash equivalents 2,143 4,371 4,444 181,454 Funds receivable from payment processors 745 527 1,673 57,239 Accounts receivable 334 2,091 432 34,355 3,222 6,989 6,549 273,048 Financial liabilities Accounts payable and accrued liabilities 4,233 2,149 255 8,370 Payable to loyalty program partners 1,413 5,254 6,103 71,376 5,646 7,403 6,358 79,746 |
Disclosure of fair value measurement [Table Text Block] | 2018 Carrying Value Level 2 Assets: Foreign exchange forward contracts designated as cash flow hedges (i) $ - $ - Liabilities: Foreign exchange forward contracts designated as cash flow hedges (i) (878 ) (878 ) $ (878 ) $ (878 ) 2017 Carrying Value Level 2 Assets: Foreign exchange forward contracts designated as cash flow hedges (i) $ 550 $ 550 Liabilities: Foreign exchange forward contracts designated as cash flow hedges (i) (43 ) (43 ) $ 507 $ 507 |
GUARANTEES AND COMMITMENTS (Tab
GUARANTEES AND COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Disclosure of commitments and contingent liabilities [Table Text Block] | Total Year 1 (3) Year 2 Year 3 Year 4 Year 5+ Operating leases (1) $ 7,401 $ 1,945 $ 1,820 $ 1,761 $ 1,731 $ 144 Direct cost of principal revenue (2) 466,947 144,527 83,416 78,582 53,474 106,948 $ 474,348 $ 146,472 $ 85,236 $ 80,343 $ 55,205 $ 107,092 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Disclosure of detailed information about non-cash balances related to operations [Table Text Block] | 2018 2017 Decrease (Increase) in funds receivable from payment processors $ 1,717 $ (4,768 ) Increase in accounts receivable (1,577 ) (3,684 ) Increase in taxes, prepaid expenses and other assets (1,581 ) (945 ) Decrease in other assets 2,661 54 Increase in accounts payable and accrued liabilities 1,491 1,663 Decrease in income taxes payable (578 ) (943 ) Increase in other liabilities 237 448 Increase in payable to loyalty program partners 4,182 12,325 $ 6,552 $ 4,150 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Disclosure of information about key management personnel [Table Text Block] | In thousands of Canadian dollars 2018 2017 Short-term employee salaries and benefits $ 2,382 $ 2,240 Share-based payments 3,232 3,230 Total compensation $ 5,614 $ 5,470 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Statements [Line Items] | |
Vesting period of stock options | 3 years |
Maximum contractual life of stock options | 10 years |
Vesting period of restricted share units (RSUs) | up to three years or in full on the third anniversary of the grant date |
OPERATING SEGMENTS (Narrative)
OPERATING SEGMENTS (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements [Line Items] | ||
Percentage of entity's revenue | 100.00% | 100.00% |
Information about major customers | Loyalty program partners for which sales to their members individually represented more than 10% of the Corporation’s total revenue. | |
Three partners [Member] | ||
Statements [Line Items] | ||
Percentage of entity's revenue | 70.00% | 69.00% |
RESTRICTED CASH (Narrative) (De
RESTRICTED CASH (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statements [Line Items] | ||
Restricted cash | $ 500 | $ 500 |
INTANGIBLE ASSETS (Narrative) (
INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements [Line Items] | ||
Research and development expense | $ 3,768 | $ 3,561 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statements [Line Items] | ||
Temporary difference | $ 369 | $ 287 |
Capital losses, which can be carried forward indefinitely [Member] | ||
Statements [Line Items] | ||
Deferred tax assets | 10,456 | 10,456 |
Non-capital loss carry-forward [Member] | ||
Statements [Line Items] | ||
Deferred tax assets | $ 813 | $ 253 |
CAPITAL AND OTHER COMPONENTS _2
CAPITAL AND OTHER COMPONENTS OF EQUITY (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2018 | Dec. 31, 2017 | Aug. 14, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | Aug. 09, 2017 | Jul. 31, 2017 | Dec. 31, 2016 | Mar. 02, 2016 | |
Statements [Line Items] | |||||||||
Number of shares eligible to be repurchased under Normal Course Issuer Bid | 710,893 | 743,468 | |||||||
Repurchase of shares | 569,107 | 334,212 | |||||||
Common shares issued | 14,217,860 | 14,869,374 | |||||||
Common shares outstanding | 14,217,860 | 14,869,374 | 15,298,602 | ||||||
Repurchase amount, percentage | 5.00% | 5.00% | |||||||
Number of shares repurchased and cancelled under 2017 Normal Course Issuer Bid | 743,468 | ||||||||
Shares repurchased | $ 7,657 | $ 3,406 | |||||||
Share Capital [Member] | |||||||||
Statements [Line Items] | |||||||||
Common shares outstanding | 14,111,864 | 14,561,450 | 14,878,674 | ||||||
Shares repurchased | $ 2,208 | $ 1,313 | |||||||
Contributed Surplus [Member] | |||||||||
Statements [Line Items] | |||||||||
Shares repurchased | $ 5,449 | $ 2,093 |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements [Line Items] | ||
Anti-dilutive shares excluded from diluted weighted average number of shares | 101,014 | 563,995 |
SHARE-BASED PAYMENTS (Narrative
SHARE-BASED PAYMENTS (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)Shareshares | Dec. 31, 2017USD ($)Shareshares | |
Statements [Line Items] | ||
Percentage of shares outstanding to determine number of net options granted | 10.00% | |
Share units purchased | 272,067 | 208,600 |
Share units purchased, amount | $ | $ 3,062 | $ 2,361 |
Payments of withholding taxes in cash | $ | $ (2,722) | $ 0 |
Shares held in trust | shares | 199,708 | 194,251 |
Compensation cost | $ | $ 4,381 | $ 4,455 |
Number of share options granted in a share-based payment arrangement | 930,000 | 0 |
Executive [Member] | ||
Statements [Line Items] | ||
Number of share options granted in a share-based payment arrangement | 930,000 | |
Restricted share unit [Member] | ||
Statements [Line Items] | ||
Number of units granted during the year | 442,353 | 376,473 |
Number of share units outstanding | 657,727 | 711,936 |
FINANCIAL INSTRUMENTS (Narrativ
FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements [Line Items] | ||
Forward contracts | $ 15,110 | |
Net asset (liability) | (878) | $ 507 |
Foreign exchange gain (loss) | $ 36 | 58 |
Sensitivity analysis variance, percentage | 10.00% | |
Effect of variance on net income | $ 632 | 407 |
CAD [Member] | ||
Statements [Line Items] | ||
Foreign exchange gain (loss) | $ (7) | $ 331 |
GUARANTEES AND COMMITMENTS (Nar
GUARANTEES AND COMMITMENTS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements [Line Items] | ||
Description of operating lease | The leases typically run for a period of 1 to 7 years, with an option to renew the lease after that date. | |
Operating lease expense | $ 2,105 | $ 2,011 |
CREDIT FACILITIES (Narrative) (
CREDIT FACILITIES (Narrative) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Facility 1 [Member] | |
Statements [Line Items] | |
Borrowings | $ 8,500 |
Facility 1 [Member] | Bottom of range [Member] | |
Statements [Line Items] | |
Borrowings, interest rate over bank base rate | 0.35% |
Facility 1 [Member] | Top of range [Member] | |
Statements [Line Items] | |
Borrowings, interest rate over bank base rate | 0.75% |
Facility 2 [Member] | |
Statements [Line Items] | |
Borrowings | $ 5,000 |
Facility 2 [Member] | Bottom of range [Member] | |
Statements [Line Items] | |
Borrowings, interest rate over bank base rate | 0.40% |
Facility 2 [Member] | Top of range [Member] | |
Statements [Line Items] | |
Borrowings, interest rate over bank base rate | 0.80% |
Disclosure of detailed informat
Disclosure of detailed information about reconciliation of consolidated statement of comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUE | ||
Principal | $ 351,743 | $ 332,291 |
Other partner revenue | 24,502 | 16,353 |
Interest | 0 | |
Total Revenue | 376,245 | 348,644 |
EXPENSES | ||
Direct cost of revenue | 322,341 | 302,094 |
Marketing and communications | 1,460 | 1,843 |
Total Expenses | 366,015 | 344,016 |
Finance income | 666 | 213 |
Income before Income Taxes | 10,896 | 4,841 |
NET INCOME | 7,792 | 3,380 |
Loyalty Currency Retailing | ||
REVENUE | ||
Total Revenue | 366,421 | 339,652 |
EXPENSES | ||
Direct cost of revenue | 321,615 | 301,492 |
Points Travel | ||
REVENUE | ||
Total Revenue | 1,845 | 1,288 |
EXPENSES | ||
Direct cost of revenue | $ 111 | 32 |
Under IFRS 15, Reconciliation of consolidated statement of comprehensive income | Loyalty Currency Retailing | ||
REVENUE | ||
Principal | 1,726 | |
Other partner revenue | (202) | |
Interest | 0 | |
Total Revenue | 1,524 | |
EXPENSES | ||
Direct cost of revenue | 1,524 | |
Marketing and communications | 0 | |
Total Expenses | 1,524 | |
Finance income | 0 | |
Income before Income Taxes | 0 | |
NET INCOME | 0 | |
Under IFRS 15, Reconciliation of consolidated statement of comprehensive income | Points Travel | ||
REVENUE | ||
Principal | 0 | |
Other partner revenue | (213) | |
Interest | 0 | |
Total Revenue | (213) | |
EXPENSES | ||
Direct cost of revenue | 0 | |
Marketing and communications | (213) | |
Total Expenses | (213) | |
Finance income | 0 | |
Income before Income Taxes | 0 | |
NET INCOME | 0 | |
Under IFRS 15, Reconciliation of consolidated statement of comprehensive income | Interest Reclassification | ||
REVENUE | ||
Principal | 0 | |
Other partner revenue | 0 | |
Interest | (213) | |
Total Revenue | (213) | |
EXPENSES | ||
Direct cost of revenue | 0 | |
Marketing and communications | 0 | |
Total Expenses | 0 | |
Finance income | 213 | |
Income before Income Taxes | 0 | |
NET INCOME | 0 | |
As Originally Presented | ||
REVENUE | ||
Principal | 330,565 | |
Other partner revenue | 16,768 | |
Interest | 213 | |
Total Revenue | 347,546 | |
EXPENSES | ||
Direct cost of revenue | 300,570 | |
Marketing and communications | 2,056 | |
Total Expenses | 342,705 | |
Finance income | 0 | |
Income before Income Taxes | 4,841 | |
NET INCOME | $ 3,380 |
Disclosure of detailed inform_2
Disclosure of detailed information about estimated useful life or depreciation rate (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Furniture and fixtures [Member] | |
Statements [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 5 years |
Computer hardware [Member] | |
Statements [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 3 years |
Computer software [Member] | |
Statements [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 3 years |
Leasehold improvements [Member] | |
Statements [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | Straight-line over shorter of useful life or the lease term |
Disclosure of detailed inform_3
Disclosure of detailed information about finite useful lives of intangible assets (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Customer relationships [Member] | |
Statements [Line Items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 10 years |
Technology [Member] | Bottom of range [Member] | |
Statements [Line Items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 3 years |
Technology [Member] | Top of range [Member] | |
Statements [Line Items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 5 years |
Disclosure of detailed inform_4
Disclosure of detailed information about revenue and expenses by reportable segments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements [Line Items] | ||
Total revenue | $ 376,245 | $ 348,644 |
Direct cost of principal revenue | 322,341 | 302,094 |
Gross profit | 53,904 | 46,550 |
Direct adjusted operating expenses | 22,247 | 20,451 |
Contribution | 31,657 | 26,099 |
Indirect adjusted operating expenses | 13,718 | 13,086 |
Finance income | (666) | (213) |
Equity-settled share-based payment expense | 4,381 | 4,455 |
Income tax expense | 3,104 | 1,461 |
Depreciation and amortization | 3,364 | 3,988 |
Foreign exchange gain | (36) | (58) |
Net income (loss) | 7,792 | 3,380 |
Loyalty Currency Retailing [Member] | ||
Statements [Line Items] | ||
Total revenue | 366,421 | 339,652 |
Direct cost of principal revenue | 321,615 | 301,492 |
Gross profit | 44,806 | 38,160 |
Direct adjusted operating expenses | 12,941 | 11,515 |
Contribution | 31,865 | 26,645 |
Platform Partners [Member] | ||
Statements [Line Items] | ||
Total revenue | 7,979 | 7,704 |
Direct cost of principal revenue | 615 | 570 |
Gross profit | 7,364 | 7,134 |
Direct adjusted operating expenses | 3,784 | 4,644 |
Contribution | 3,580 | 2,490 |
Points Travel [Member] | ||
Statements [Line Items] | ||
Total revenue | 1,845 | 1,288 |
Direct cost of principal revenue | 111 | 32 |
Gross profit | 1,734 | 1,256 |
Direct adjusted operating expenses | 5,522 | 4,292 |
Contribution | $ (3,788) | $ (3,036) |
Disclosure of detailed inform_5
Disclosure of detailed information about contracted revenues allocated to the remaining performance obligations (Details) - Hosting And Other [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Statements [Line Items] | |
Transaction price | $ 3,209 |
Year 1 | |
Statements [Line Items] | |
Transaction price | 2,525 |
Year 2 | |
Statements [Line Items] | |
Transaction price | 312 |
Year 3 | |
Statements [Line Items] | |
Transaction price | 186 |
Year 4 | |
Statements [Line Items] | |
Transaction price | 186 |
Year 5+ | |
Statements [Line Items] | |
Transaction price | $ 0 |
Disclosure of detailed inform_6
Disclosure of detailed information about revenues, geographic information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements [Line Items] | ||
Revenue | $ 376,245 | $ 348,644 |
Percentage of entity's revenue | 100.00% | 100.00% |
United States | ||
Statements [Line Items] | ||
Revenue | $ 331,625 | $ 304,116 |
Percentage of entity's revenue | 88.00% | 87.00% |
Europe | ||
Statements [Line Items] | ||
Revenue | $ 25,661 | $ 31,873 |
Percentage of entity's revenue | 7.00% | 9.00% |
Other | ||
Statements [Line Items] | ||
Revenue | $ 18,959 | $ 12,655 |
Percentage of entity's revenue | 5.00% | 4.00% |
Disclosure of detailed inform_7
Disclosure of detailed information about trade and other receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statements [Line Items] | |||
Accounts receivable before allowance for doubtful accounts | $ 9,472 | $ 7,832 | |
Allowance for doubtful accounts | (154) | (91) | $ (163) |
Accounts receivable | $ 9,318 | $ 7,741 |
Disclosure of prepayments and o
Disclosure of prepayments and other assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statements [Line Items] | ||
Prepaid expenses | $ 1,464 | $ 1,352 |
Foreign exchange forward contracts designated as cash flow hedges | 0 | 550 |
Loyalty reward currencies | 2,154 | 58 |
Current portion of deferred costs | 0 | 3 |
Prepaid expenses and current portion of other assets | 3,618 | 1,963 |
Non-current portion of loyalty reward currencies | 0 | 2,661 |
Other assets | $ 0 | $ 2,661 |
Disclosure of detailed inform_8
Disclosure of detailed information about property, plant and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements [Line Items] | ||
Balance, beginning of year | $ 2,128 | |
Balance, end of year | 2,351 | $ 2,128 |
Cost [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 7,636 | 6,549 |
Additions | 1,204 | 1,241 |
Disposals/write-offs | (154) | |
Balance, end of year | 8,840 | 7,636 |
Depreciation and impairment losses [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 5,508 | 4,799 |
Depreciation for the year | 981 | 863 |
Disposals/write-offs | (154) | |
Balance, end of year | 6,489 | 5,508 |
Furniture and fixtures [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 335 | |
Balance, end of year | 251 | 335 |
Furniture and fixtures [Member] | Cost [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 1,078 | 1,044 |
Additions | 26 | 188 |
Disposals/write-offs | (154) | |
Balance, end of year | 1,104 | 1,078 |
Furniture and fixtures [Member] | Depreciation and impairment losses [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 743 | 768 |
Depreciation for the year | 110 | 129 |
Disposals/write-offs | (154) | |
Balance, end of year | 853 | 743 |
Computer hardware [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 588 | |
Balance, end of year | 883 | 588 |
Computer hardware [Member] | Cost [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 3,135 | 2,609 |
Additions | 664 | 526 |
Disposals/write-offs | 0 | |
Balance, end of year | 3,799 | 3,135 |
Computer hardware [Member] | Depreciation and impairment losses [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 2,547 | 2,225 |
Depreciation for the year | 369 | 322 |
Disposals/write-offs | 0 | |
Balance, end of year | 2,916 | 2,547 |
Computer software [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 242 | |
Balance, end of year | 412 | 242 |
Computer software [Member] | Cost [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 2,209 | 2,190 |
Additions | 433 | 19 |
Disposals/write-offs | 0 | |
Balance, end of year | 2,642 | 2,209 |
Computer software [Member] | Depreciation and impairment losses [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 1,967 | 1,751 |
Depreciation for the year | 263 | 216 |
Disposals/write-offs | 0 | |
Balance, end of year | 2,230 | 1,967 |
Leasehold improvements [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 963 | |
Balance, end of year | 805 | 963 |
Leasehold improvements [Member] | Cost [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 1,214 | 706 |
Additions | 81 | 508 |
Disposals/write-offs | 0 | |
Balance, end of year | 1,295 | 1,214 |
Leasehold improvements [Member] | Depreciation and impairment losses [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 251 | 55 |
Depreciation for the year | 239 | 196 |
Disposals/write-offs | 0 | |
Balance, end of year | $ 490 | $ 251 |
Disclosure of detailed inform_9
Disclosure of detailed information about intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements [Line Items] | ||
Balance, beginning of year | $ 15,265 | |
Amortization for the year | 2,383 | $ 3,125 |
Balance, end of year | 13,952 | 15,265 |
Cost [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 32,952 | 31,458 |
Additions | 1,070 | 1,494 |
Balance, end of year | 34,022 | 32,952 |
Depreciation and impairment losses [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 17,687 | 14,562 |
Amortization for the year | 2,383 | 3,125 |
Balance, end of year | 20,070 | 17,687 |
Customer relationships [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 5,879 | |
Balance, end of year | 5,029 | 5,879 |
Customer relationships [Member] | Cost [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 8,500 | 8,500 |
Additions | 0 | 0 |
Balance, end of year | 8,500 | 8,500 |
Customer relationships [Member] | Depreciation and impairment losses [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 2,621 | 1,771 |
Amortization for the year | 850 | 850 |
Balance, end of year | 3,471 | 2,621 |
Domain names [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 4,300 | |
Balance, end of year | 4,300 | 4,300 |
Domain names [Member] | Cost [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 4,300 | 4,300 |
Additions | 0 | 0 |
Balance, end of year | 4,300 | 4,300 |
Domain names [Member] | Depreciation and impairment losses [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 0 | 0 |
Amortization for the year | 0 | 0 |
Balance, end of year | 0 | 0 |
Technology [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 4,881 | |
Balance, end of year | 4,418 | 4,881 |
Technology [Member] | Cost [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 19,947 | 18,453 |
Additions | 1,070 | 1,494 |
Balance, end of year | 21,017 | 19,947 |
Technology [Member] | Depreciation and impairment losses [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 15,066 | 12,791 |
Amortization for the year | 1,533 | 2,275 |
Balance, end of year | 16,599 | 15,066 |
Other [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 205 | |
Balance, end of year | 205 | 205 |
Other [Member] | Cost [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 205 | 205 |
Additions | 0 | 0 |
Balance, end of year | 205 | 205 |
Other [Member] | Depreciation and impairment losses [Member] | ||
Statements [Line Items] | ||
Balance, beginning of year | 0 | 0 |
Amortization for the year | 0 | 0 |
Balance, end of year | $ 0 | $ 0 |
Disclosure of detailed infor_10
Disclosure of detailed information about goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements [Line Items] | ||
Balance, beginning of year | $ 7,130 | $ 7,130 |
Additions | 0 | 0 |
Impairments | 0 | 0 |
Balance, end of year | $ 7,130 | $ 7,130 |
Disclosure of detailed infor_11
Disclosure of detailed information about recoverable amounts for cash-generating units with indefinite life intangible assets and goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statements [Line Items] | |||
Carrying value of goodwill | $ 7,130 | $ 7,130 | $ 7,130 |
Cash-generating units [Member] | Loyalty Currency Retailing [Member] | |||
Statements [Line Items] | |||
Carrying value of goodwill | 5,681 | ||
Carrying value of indefinite-life intangible assets | $ 4,505 | ||
Recoverable amount method | Value in Use | ||
Period used | 5 years | ||
Terminal growth rate | 2.0% | ||
Pre-tax discount rate | 19.60% | ||
Cash-generating units [Member] | Points Travel [Member] | |||
Statements [Line Items] | |||
Carrying value of goodwill | $ 1,449 | ||
Carrying value of indefinite-life intangible assets | $ 0 | ||
Recoverable amount method | Value in Use | ||
Period used | 7 years | ||
Terminal growth rate | 2.0% | ||
Pre-tax discount rate | 28.80% |
Disclosure of detailed infor_12
Disclosure of detailed information about tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements [Line Items] | ||
Current year | $ 2,640 | $ 2,410 |
Prior year | 185 | 274 |
Total current tax expense | 2,825 | 2,684 |
Current year movement in recognized temporary differences and losses | 279 | (1,223) |
Deferred tax expense (recovery) | 279 | (1,223) |
Total income tax expense | $ 3,104 | $ 1,461 |
Disclosure of detailed infor_13
Disclosure of detailed information about effective income tax expense recovery (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (decrease) in taxes resulting from: | ||
Income tax expense at statutory rate | $ 2,887 | $ 1,284 |
Statutory tax rate | 26.50% | 26.50% |
Tax cost of non-deductible items | $ 124 | $ 126 |
Other differences | 93 | 51 |
Total income tax expense | $ 3,104 | $ 1,461 |
Disclosure of deferred taxes (D
Disclosure of deferred taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statements [Line Items] | ||
Deferred tax assets | $ 2,704 | $ 2,691 |
Net deferred tax assets | 2,645 | 2,557 |
Forward contracts [Member] | ||
Statements [Line Items] | ||
Deferred tax assets | 233 | 0 |
Deferred tax liabilities | 0 | 134 |
Fixed and Intangible assets [Member] | ||
Statements [Line Items] | ||
Deferred tax assets | 975 | 873 |
Reserves [Member] | ||
Statements [Line Items] | ||
Deferred tax assets | 237 | 269 |
Restricted Share Units [Member] | ||
Statements [Line Items] | ||
Deferred tax assets | 1,044 | 1,482 |
Tax losses [Member] | ||
Statements [Line Items] | ||
Deferred tax assets | 215 | 67 |
SRED [Member] | ||
Statements [Line Items] | ||
Deferred tax liabilities | $ 59 | $ 0 |
Disclosure of temporary differe
Disclosure of temporary difference, unused tax losses and unused tax credits (Details) - Non-capital loss carry-forward [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statements [Line Items] | ||
Deferred tax assets | $ 813 | $ 253 |
2032 [Member] | ||
Statements [Line Items] | ||
Deferred tax assets | 219 | |
2036 [Member] | ||
Statements [Line Items] | ||
Deferred tax assets | 244 | |
2037 [Member] | ||
Statements [Line Items] | ||
Deferred tax assets | $ 350 |
Disclosure of detailed infor_14
Disclosure of detailed information about unrecognized deferred tax assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Capital losses [Member] | ||
Statements [Line Items] | ||
Deferred tax assets | $ 1,385 | $ 1,385 |
Disclosure of detailed infor_15
Disclosure of detailed information about other liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statements [Line Items] | ||
Foreign exchange forward contracts designated as cash flow hedges | $ 878 | $ 43 |
Current portion of lease inducements | 120 | 113 |
Current portion of deferred revenue | 682 | 1,244 |
Current portion of other liabilities | 1,680 | 1,400 |
Non-current portion of lease inducements | 362 | 483 |
Non-current portion of deferred revenue | 133 | 55 |
Other liabilities | $ 495 | $ 538 |
Disclosure of detailed infor_16
Disclosure of detailed information about changes in deferred revenue balances (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Statements [Line Items] | |
Balance at December 31, 2017 | $ 1,299 |
Amounts invoiced and revenue deferred | 760 |
Recognition of deferred revenue | (1,244) |
Balance at December 31, 2018 | $ 815 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements [Line Items] | ||
Net income for the period | $ 7,792 | $ 3,380 |
Weighted average number of common shares outstanding basic | 14,321,186 | 14,806,020 |
Effect of dilutive securities share-based payments | 90,817 | 14,293 |
Weighted average number of common shares outstanding diluted | 14,412,003 | 14,820,313 |
Earnings (loss) per share - Basic | $ 0.54 | $ 0.23 |
Earnings (loss) per share - Diluted | $ 0.54 | $ 0.23 |
Disclosure of detailed infor_17
Disclosure of detailed information about stock options available for grant (Details) | Dec. 31, 2018Share | Jul. 31, 2018shares | Jul. 31, 2017shares | Mar. 02, 2016shares |
Statements [Line Items] | ||||
Shares outstanding | shares | 14,217,860 | 14,869,374 | 15,298,602 | |
Percentage of shares outstanding | 10.00% | |||
Net options authorized | 1,529,860 | |||
Less: options issued & outstanding | (1,229,040) | |||
Options available for grant | 300,820 |
Disclosure of detailed infor_18
Disclosure of detailed information about options, valuation assumptions (Details) | 12 Months Ended |
Dec. 31, 2018CAD ($)Year | |
Statements [Line Items] | |
Dividend yield | 0.00% |
Bottom of range [Member] | |
Statements [Line Items] | |
Risk free rate | 2.06% |
Expected volatility | 40.59% |
Expected life of options in years | Year | 3.10 |
Weighted average fair value of options granted | $ | $ 4.24 |
Top of range [Member] | |
Statements [Line Items] | |
Risk free rate | 2.09% |
Expected volatility | 44.51% |
Expected life of options in years | Year | 6 |
Weighted average fair value of options granted | $ | $ 6.16 |
Disclosure of number and weight
Disclosure of number and weighted average exercise prices of share options (Details) | 12 Months Ended | |
Dec. 31, 2018CAD ($)Share | Dec. 31, 2017CAD ($)Share | |
Statements [Line Items] | ||
Number of share options outstanding in share-based payment arrangement at beginning of period | Share | 615,843 | 723,995 |
Weighted average exercise price of share options outstanding in share-based payment arrangement at beginning of period | $ | $ 16 | $ 15.25 |
Number of share options granted in share-based payment arrangement | Share | 930,000 | 0 |
Weighted average exercise price of share options granted in share-based payment arrangement | $ | $ 13.93 | $ 0 |
Number of share options exercised in share-based payment arrangement | Share | (308,711) | (80,973) |
Weighted average exercise price of share options exercised in share-based payment arrangement | $ | $ 13.51 | $ 9.74 |
Number of share options expired and forfeited in share-based payment arrangement | Share | (8,092) | (27,179) |
Weighted average exercise price of share options expired and forfeited in share-based payment arrangement | $ | $ 25.56 | $ 14.58 |
Number of share options outstanding in share-based payment arrangement at end of period | Share | 1,229,040 | 615,843 |
Weighted average exercise price of share options outstanding in share-based payment arrangement at end of period | $ | $ 15 | $ 16 |
Number of share options exercisable in share-based payment arrangement | Share | 299,040 | 521,538 |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ | $ 18.32 | $ 16.67 |
Disclosure of range of exercise
Disclosure of range of exercise prices of outstanding share options (Details) | Dec. 31, 2018CAD ($)ShareYear | Dec. 31, 2017CAD ($)ShareYear | Dec. 31, 2016CAD ($)Share |
Statements [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | Share | 1,229,040 | 615,843 | 723,995 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ 15 | $ 16 | $ 15.25 |
Number of share options exercisable in share-based payment arrangement | Share | 299,040 | 521,538 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ 18.32 | $ 16.67 | |
$5.00 to $9.99 [Member] | |||
Statements [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | Share | 22,280 | 39,401 | |
Weighted average remaining contractual life of outstanding share options | Year | 2.19 | 3.19 | |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ 9.89 | $ 9.89 | |
Number of share options exercisable in share-based payment arrangement | Share | 22,280 | 39,401 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ 9.89 | $ 9.89 | |
$10.00 to $14.99 [Member] | |||
Statements [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | Share | 1,105,746 | 352,002 | |
Weighted average remaining contractual life of outstanding share options | Year | 5.21 | 2.30 | |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ 13.67 | $ 12.27 | |
Number of share options exercisable in share-based payment arrangement | Share | 175,746 | 257,697 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ 12.27 | $ 12.25 | |
$15.00 to $19.99 [Member] | |||
Statements [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | Share | 1,169 | 119,370 | |
Weighted average remaining contractual life of outstanding share options | Year | 0.75 | 0.23 | |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ 19.82 | $ 15.98 | |
Number of share options exercisable in share-based payment arrangement | Share | 1,169 | 119,370 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ 19.82 | $ 15.98 | |
$20.00 and over [Member] | |||
Statements [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | Share | 99,845 | 105,070 | |
Weighted average remaining contractual life of outstanding share options | Year | 0.21 | 1.21 | |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ 30.84 | $ 30.84 | |
Number of share options exercisable in share-based payment arrangement | Share | 99,845 | 105,070 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ 30.84 | $ 30.84 | |
Bottom of range [Member] | $5.00 to $9.99 [Member] | |||
Statements [Line Items] | |||
Exercise price of outstanding share options | 5 | 5 | |
Bottom of range [Member] | $10.00 to $14.99 [Member] | |||
Statements [Line Items] | |||
Exercise price of outstanding share options | 10 | 10 | |
Bottom of range [Member] | $15.00 to $19.99 [Member] | |||
Statements [Line Items] | |||
Exercise price of outstanding share options | 15 | 15 | |
Bottom of range [Member] | $20.00 and over [Member] | |||
Statements [Line Items] | |||
Exercise price of outstanding share options | 20 | 20 | |
Top of range [Member] | $5.00 to $9.99 [Member] | |||
Statements [Line Items] | |||
Exercise price of outstanding share options | 9.99 | 9.99 | |
Top of range [Member] | $10.00 to $14.99 [Member] | |||
Statements [Line Items] | |||
Exercise price of outstanding share options | 14.99 | 14.99 | |
Top of range [Member] | $15.00 to $19.99 [Member] | |||
Statements [Line Items] | |||
Exercise price of outstanding share options | $ 19.99 | $ 19.99 |
Disclosure of restricted share
Disclosure of restricted share units and performance share units (Details) - Restricted share unit [Member] | 12 Months Ended | |
Dec. 31, 2018CAD ($)Share | Dec. 31, 2017CAD ($)Share | |
Statements [Line Items] | ||
Number of share units, beginning of year | Share | 711,936 | 480,302 |
Weighted average exercise price of share units, beginning of year | $ | $ 10.16 | $ 12.17 |
Number of units granted during the year | Share | 442,353 | 376,473 |
Weighted average exercise price share units granted | $ | $ 13.83 | $ 9.48 |
Number of units vested during the year | Share | (457,408) | (98,182) |
Weighted average exercise price of share units vested | $ | $ 11.67 | $ 16.38 |
Number of units forfeited during the year | Share | (39,154) | (46,657) |
Weighted average exercise price of share units forfeited | $ | $ 11.62 | $ 12.20 |
Number of share units, end of year | Share | 657,727 | 711,936 |
Weighted average exercise price of share units, end of year | $ | $ 11.50 | $ 10.16 |
Disclosure of expenses (Details
Disclosure of expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements [Line Items] | ||
Office expenses | $ 2,409 | $ 2,507 |
Travel | 2,118 | 1,949 |
Professional fees | 2,988 | 2,806 |
Insurance, bad debts and governance | 1,271 | 1,208 |
Operating expenses | $ 8,786 | $ 8,470 |
Disclosure of detailed infor_19
Disclosure of detailed information about aging of accounts receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statements [Line Items] | |||
Trade accounts receivable | $ 9,472 | $ 7,832 | |
Allowance for doubtful accounts | (154) | (91) | $ (163) |
Accounts receivable | 9,318 | 7,741 | |
Current [Member] | |||
Statements [Line Items] | |||
Trade accounts receivable | 7,992 | 6,554 | |
Past due 31-60 days [Member] | |||
Statements [Line Items] | |||
Trade accounts receivable | 475 | 420 | |
Past due 61-90 days [Member] | |||
Statements [Line Items] | |||
Trade accounts receivable | 108 | 244 | |
Past due 91-120 days [Member] | |||
Statements [Line Items] | |||
Trade accounts receivable | 228 | 139 | |
Past due over 120 days [Member] | |||
Statements [Line Items] | |||
Trade accounts receivable | $ 669 | $ 475 |
Disclosure of detailed infor_20
Disclosure of detailed information about allowance for doubtful accounts for trade accounts receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements [Line Items] | ||
Allowance for doubtful accounts, beginning of year | $ 91 | $ 163 |
Provision for doubtful accounts | 105 | 102 |
Bad debts written off, net of recoveries | (42) | (174) |
Allowance for doubtful accounts, end of year | $ 154 | $ 91 |
Disclosure of detailed infor_21
Disclosure of detailed information about contractual cash flow maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statements [Line Items] | ||
Accounts payable and accrued liabilities | $ 9,489 | $ 7,998 |
Foreign exchange forward contracts designated as cash flow hedges | 878 | 43 |
Income taxes payable | 117 | 695 |
Payable to loyalty program partners | 69,749 | 65,567 |
Financial liabilities | 80,233 | 74,303 |
Carrying amount [Member] | ||
Statements [Line Items] | ||
Accounts payable and accrued liabilities | 9,489 | 7,998 |
Foreign exchange forward contracts designated as cash flow hedges | 878 | 43 |
Income taxes payable | 117 | 695 |
Payable to loyalty program partners | 69,749 | 65,567 |
Financial liabilities | 80,233 | 74,303 |
Within 1 year [Member] | ||
Statements [Line Items] | ||
Accounts payable and accrued liabilities | 9,489 | 7,998 |
Foreign exchange forward contracts designated as cash flow hedges | 878 | 43 |
Income taxes payable | 117 | 695 |
Payable to loyalty program partners | 69,749 | 65,567 |
Financial liabilities | 80,233 | 74,303 |
1 year to 3 years [Member] | ||
Statements [Line Items] | ||
Accounts payable and accrued liabilities | 0 | 0 |
Foreign exchange forward contracts designated as cash flow hedges | 0 | 0 |
Income taxes payable | 0 | 0 |
Payable to loyalty program partners | 0 | 0 |
Financial liabilities | 0 | 0 |
3 years and beyond [Member] | ||
Statements [Line Items] | ||
Accounts payable and accrued liabilities | 0 | 0 |
Foreign exchange forward contracts designated as cash flow hedges | 0 | 0 |
Income taxes payable | 0 | 0 |
Payable to loyalty program partners | 0 | 0 |
Financial liabilities | $ 0 | $ 0 |
Disclosure of detailed infor_22
Disclosure of detailed information about foreign currency risk (Details) € in Thousands, ¥ in Thousands, £ in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | ||||||||||
Dec. 31, 2018USD ($)Rates | Dec. 31, 2017USD ($)Rates | Dec. 31, 2018JPY (¥) | Dec. 31, 2018CAD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018EUR (€) | Dec. 31, 2017JPY (¥) | Dec. 31, 2017CAD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | |
Financial assets | |||||||||||
Cash and cash equivalents | $ 69,131 | $ 63,514 | $ 46,492 | ||||||||
Restricted cash | 500 | 500 | |||||||||
Accounts receivable | 9,318 | 7,741 | |||||||||
Financial liabilities | |||||||||||
Accounts payable and accrued liabilities | 9,489 | 7,998 | |||||||||
Income taxes payable | 117 | 695 | |||||||||
Payable to loyalty program partners | 69,749 | 65,567 | |||||||||
Financial liabilities | $ 80,233 | $ 74,303 | |||||||||
CAD [Member] | |||||||||||
Statements [Line Items] | |||||||||||
FX Rates used to translate to USD | Rates | 0.73361 | 0.7966 | |||||||||
Financial assets | |||||||||||
Cash and cash equivalents | $ 3,667 | $ 2,143 | |||||||||
Funds receivable from payment processors | 221 | 745 | |||||||||
Accounts receivable | 691 | 334 | |||||||||
Financial assets | 4,579 | 3,222 | |||||||||
Financial liabilities | |||||||||||
Accounts payable and accrued liabilities | 1,370 | 4,233 | |||||||||
Payable to loyalty program partners | 1,380 | 1,413 | |||||||||
Financial liabilities | $ 2,750 | $ 5,646 | |||||||||
GBP [Member] | |||||||||||
Statements [Line Items] | |||||||||||
FX Rates used to translate to USD | Rates | 1.27356 | 1.3491 | |||||||||
Financial assets | |||||||||||
Cash and cash equivalents | £ | £ 8,430 | £ 4,371 | |||||||||
Funds receivable from payment processors | £ | 740 | 527 | |||||||||
Accounts receivable | £ | 2,597 | 2,091 | |||||||||
Financial assets | £ | 11,767 | 6,989 | |||||||||
Financial liabilities | |||||||||||
Accounts payable and accrued liabilities | £ | 2,547 | 2,149 | |||||||||
Payable to loyalty program partners | £ | 8,237 | 5,254 | |||||||||
Financial liabilities | £ | £ 10,784 | £ 7,403 | |||||||||
EUR [Member] | |||||||||||
Statements [Line Items] | |||||||||||
FX Rates used to translate to USD | Rates | 1.14449 | 1.1979 | |||||||||
Financial assets | |||||||||||
Cash and cash equivalents | € | € 5,660 | € 4,444 | |||||||||
Funds receivable from payment processors | € | 1,556 | 1,673 | |||||||||
Accounts receivable | € | 774 | 432 | |||||||||
Financial assets | € | 7,990 | 6,549 | |||||||||
Financial liabilities | |||||||||||
Accounts payable and accrued liabilities | € | 774 | 255 | |||||||||
Payable to loyalty program partners | € | 5,382 | 6,103 | |||||||||
Financial liabilities | € | € 6,156 | € 6,358 | |||||||||
JPY [Member] | |||||||||||
Statements [Line Items] | |||||||||||
FX Rates used to translate to USD | Rates | 0.00909 | 0.0089 | |||||||||
Financial assets | |||||||||||
Cash and cash equivalents | ¥ | ¥ 97,455 | ¥ 181,454 | |||||||||
Funds receivable from payment processors | ¥ | 30,043 | 57,239 | |||||||||
Accounts receivable | ¥ | 68,795 | 34,355 | |||||||||
Financial assets | ¥ | 196,293 | 273,048 | |||||||||
Financial liabilities | |||||||||||
Accounts payable and accrued liabilities | ¥ | 18,515 | 8,370 | |||||||||
Payable to loyalty program partners | ¥ | 71,868 | 71,376 | |||||||||
Financial liabilities | ¥ | ¥ 90,383 | ¥ 79,746 |
Disclosure of fair value measur
Disclosure of fair value measurement (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statements [Line Items] | ||
Foreign exchange forward contracts designated as cash flow hedges | $ 0 | $ 550 |
Financial assets and liabilities, at fair value | (878) | 507 |
Level 2 [Member] | ||
Statements [Line Items] | ||
Financial assets and liabilities, at fair value | (878) | 507 |
Financial assets [Member] | ||
Statements [Line Items] | ||
Foreign exchange forward contracts designated as cash flow hedges | 0 | 550 |
Financial assets [Member] | Level 2 [Member] | ||
Statements [Line Items] | ||
Foreign exchange forward contracts designated as cash flow hedges | 0 | 550 |
Financial liabilities [Member] | ||
Statements [Line Items] | ||
Foreign exchange forward contracts designated as cash flow hedges | (878) | (43) |
Financial liabilities [Member] | Level 2 [Member] | ||
Statements [Line Items] | ||
Foreign exchange forward contracts designated as cash flow hedges | $ (878) | $ (43) |
Disclosure of commitments and c
Disclosure of commitments and contingent liabilities (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Statements [Line Items] | |
Operating leases | $ 7,401 |
Direct cost of principal revenue | 466,947 |
Total guarantees and commitments | 474,348 |
Year 1 [Member] | |
Statements [Line Items] | |
Operating leases | 1,945 |
Direct cost of principal revenue | 144,527 |
Total guarantees and commitments | 146,472 |
Year 2 [Member] | |
Statements [Line Items] | |
Operating leases | 1,820 |
Direct cost of principal revenue | 83,416 |
Total guarantees and commitments | 85,236 |
Year 3 [Member] | |
Statements [Line Items] | |
Operating leases | 1,761 |
Direct cost of principal revenue | 78,582 |
Total guarantees and commitments | 80,343 |
Year 4 [Member] | |
Statements [Line Items] | |
Operating leases | 1,731 |
Direct cost of principal revenue | 53,474 |
Total guarantees and commitments | 55,205 |
Year 5 and beyond [Member] | |
Statements [Line Items] | |
Operating leases | 144 |
Direct cost of principal revenue | 106,948 |
Total guarantees and commitments | $ 107,092 |
Disclosure of detailed infor_23
Disclosure of detailed information about non-cash balances related to operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements [Line Items] | ||
Decrease (Increase) in funds receivable from payment processors | $ 1,717 | $ (4,768) |
Increase in accounts receivable | (1,577) | (3,684) |
Increase in taxes, prepaid expenses and other assets | (1,581) | (945) |
Decrease in other assets | 2,661 | 54 |
Increase in accounts payable and accrued liabilities | 1,491 | 1,663 |
Decrease in income taxes payable | (578) | (943) |
Increase in other liabilities | 237 | 448 |
Increase in payable to loyalty program partners | 4,182 | 12,325 |
Total non-cash balances related to operations | $ 6,552 | $ 4,150 |
Disclosure of information about
Disclosure of information about key management personnel (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements [Line Items] | ||
Short-term employee salaries and benefits | $ 2,382 | $ 2,240 |
Share-based payments | 3,232 | 3,230 |
Total compensation | $ 5,614 | $ 5,470 |