Exhibit 99.01
Planet Payment
Announces 2012 Results and Guidance for 2013
Implemented 11 Customers In 9 Countries; During 2012 Increased Active Merchants 47%; Focus on Emerging Markets
LONG BEACH, N.Y., March 18, 2013 — Planet Payment, Inc. (NASDAQ:PLPM) (LSE:AIM:PPT), a leading provider of international payment processing and multi-currency processing services, today announced its results for the fourth quarter and fiscal year ended December 31, 2012.
Financial Highlights for the Fourth Quarter Ended December 31, 2012
· Net revenue for the period decreased approximately 4% to $11.9 million compared to $12.3 million in the fourth quarter of 2011.
· Consolidated gross billings increased 8% to $34.0 million compared to $31.5 million in the fourth quarter of 2011. (See Table 3 for explanation of this metric).
· Gross foreign currency mark-up increased 11% to $30.1 million compared to $27.2 million in the fourth quarter of 2011. (See Table 3 for explanation of this metric).
· Net loss for the period was $(0.1) million or $0.00 earnings per diluted share compared to net income of $1.8 million or $0.03 per diluted share in the fourth quarter of 2011.
· Adjusted EBITDA for the period was $0.9 million compared to $2.7 million in the fourth quarter of 2011. (See Table 1 for reconciliation of net (loss) income to Adjusted EBITDA).
Financial Highlights for the Year Ended December 31, 2012
· Net revenue increased approximately 4% to $43.6 million compared to $41.9 million for fiscal year 2011.
· Consolidated gross billings increased 15% to $117.9 million compared $102.4 million for fiscal year 2011. (See Table 3 for explanation of this metric).
· Gross foreign currency mark-up increased 17% to $103.2 million compared to $87.8 million for fiscal year 2011. (See Table 3 for explanation of this metric).
· Net loss was $(4.5) million or $(0.09) loss per diluted share compared to net income of $2.4 million or $0.04 per diluted share for fiscal year 2011, in part due to the expensing of deferred IPO costs of $2.6 million in 2012 and additional costs incurred arising out of the acquisition and operations of Branded Payment Solutions Ltd (“BPS”) totaling $1.4 million during the year.
· Adjusted EBITDA was $2.4 million compared to $5.9 million for fiscal year 2011. (See Table 1 for reconciliation of net (loss) income to Adjusted EBITDA).
Operational Highlights for the Year Ended December 31, 2012
· Total active merchant locations increased by 47% to approximately 41,000 (See Table 3 for explanation of this metric).
· Settled multi-currency dollar volume processed increased 12% to $2.6 billion. (See Table 3 for explanation of this metric).
· Total settled dollar volume processed increased 27% to $6.1 billion and total settled transactions processed increased 48% to 46.0 million. (See Table 3 for explanation of these metrics).
· Entered into a number of new contracts, notably multi-currency processing agreements with Taishin Bank in Taiwan, Mashreq in UAE, and with Payment Alliance International for ATMs in the USA.
· Entered into a processing agreement and UPOP participation agreement with UnionPay to enable online UnionPay acceptance in the USA and Canada.
· Launched services with Global Payments Canada, Vantiv ATMs in the USA, Mashreq UAE, Citibank Philippines, Citibank Hong Kong and Macau, Taishin Bank in Taiwan and our hospitality solution with Banorte in Mexico.
· Acquired BPS commercial services platform and its enabling technology, which allows us to put value-added applications on the point-of-sale.
· Continued to enhance our processing platform including implementing support for ATMs and UnionPay online and at the point-of-sale, to help merchants access the Chinese market.
· Entered into a strategic processing relationship with Visa and launched ATM services with two banks in Myanmar.
Outlook for Fiscal Year 2013
· Net revenue estimated to be in the range of $52.2 million to $55.0 million.
· Net income estimated to be in the range of $2.6 million to $4.8 million.
· Adjusted EBITDA estimated to be in the range of $8.3 million to $10.6 million. (See Table 2 for reconciliation of prospective net income to Adjusted EBITDA).
· Fully diluted earnings per share estimated to be in the range of $0.05 to $0.09 based upon 56.4 million fully diluted common shares outstanding.
· Our guidance assumes an effective tax rate of between 12% and 15%.
Commenting on the results, Philip Beck, CEO and Chairman of Planet Payment, Inc., said:
“2012 has been a significant year for Planet Payment. We continued to make substantial progress implementing 11 customers in 9 countries including a number in exciting emerging markets, while increasing our merchant base by nearly 50%. While we are happy with this operational progress, our 2012 results are reflective of our investment in opening new markets, winning new customers, and acquiring and developing our commercial services platform. We look forward to continued growth based on our strong pipeline and significant opportunities in emerging growth markets.”
Conference Call
The Company will host a conference call to discuss fourth quarter and fiscal year 2012 financial results today at 5:00 pm EST. Philip Beck, Chief Executive Officer, and Robert Cox, Chief Financial Officer will host the call. The conference call can be accessed live over the phone by dialing (877) 705-6003, or for international callers (201) 493-6725. A replay will be available approximately two hours after the call concludes and can be accessed by dialing (877) 870-5176, or for international callers (858) 384-5517, and entering the conference ID 410139. The replay will be available through Monday, March 25, 2013. The call will be webcast live from the Company’s investor relations website at http://ir.planetpayment.com/.
Additional analysis of the Company’s performance can be found in the “Management’s Discussion & Analysis of Financial Condition and Results of Operations,” included in the Annual Report on Form 10-K to be filed at www.sec.gov.
About Planet Payment
Planet Payment is a leading provider of international payment processing and multi-currency processing services. We provide our services in more than 20 countries and territories across the Asia Pacific region, North America, the Middle East, Africa and Europe, primarily through our more than 50 acquiring bank and processor customers. Our point-of-sale and e-commerce services help merchants sell more goods and services to consumers, and together with our ATM services are integrated within the payment card transaction flow enabling our acquiring customers, their merchants and consumers to shop, pay, transact and reconcile payment transactions in multiple currencies, geographies and channels.
Planet Payment is headquartered in New York and has offices in Atlanta, Beijing, Bermuda, Delaware, Dubai, Dublin, London, Hong Kong, Mexico City, Shanghai and Singapore. Visit ww.planetpayment.com for more information about the Company and its services. For up-to-date information follow Planet Payment on Twitter at @PlanetPayment or join Planet Payment’s Facebook page.
Notice Regarding Forward-Looking Statements.
Information contained in this announcement may include ‘forward-looking statements’. All statements other than statements of historical facts included herein, including, without limitation, those set forth in “Outlook for Fiscal Year 2013” and those regarding the financial position, business strategy, plans and objectives of management for future operations of both Planet Payment and its business partners, estimated net revenue, net income, Adjusted EBITDA, diluted earnings per share, future service launches with customers and new initiatives and customer pipeline are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding Planet Payment’s present and future business strategies, and the environment in which Planet Payment expects to operate in future, which assumptions may or may not be fulfilled in practice. Implementation of some or all of the new services referred to is subject to regulatory or other third party approvals. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of risk factors, including the risk that implementation, adoption and offering of the service by processors, acquirers, merchants and others may take longer than anticipated, or may not occur at all, regulatory changes and changes in card association regulations and practices, changes in
domestic and international economic conditions and changes in volume of international travel and commerce and others. Additional risks may arise, with respect to commencing operations in new countries and regions, of which Planet Payment is not fully aware at this time. See the Company’s registration statement on Form 10, filed at www.sec.gov for other risk factors which investors should consider. These forward-looking statements speak only as to the date of this announcement and cannot be relied upon as a guide to future performance. Planet Payment expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in its expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.
Enquiries:
Planet Payment, Inc. Robert Cox (CFO) |
| Tel: + 1 516 670 3200 www.planetpayment.com |
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Redleaf Polhill (UK PR for Planet Payment) Emma Kane / Henry Columbine / David Ison |
| Tel: +44 207 382 4730 planet@redleafpolhill.com |
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ICR (USA IR for Planet Payment) Don Duffy / Dara Dierks |
| Tel: +1 646-277-1212 |
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Canaccord Genuity Ltd (UK) (Nomad for Planet Payment) |
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Simon Bridges / Andrew Chubb |
| Tel: +44 20 7523 8000 |
Non-GAAP Financial Information
The Company provides certain non-GAAP financial measures in this statement. Management believes that Adjusted EBITDA, when viewed with our results under GAAP and the accompanying reconciliations, provides useful information about our period-over-period results. Adjusted EBITDA is presented because management believes it provides additional information with respect to the performance of our fundamental business activities and is also frequently used by securities analysts, investors and other interested parties in the evaluation of comparable companies. We also rely on Adjusted EBITDA as a primary measure to review and assess the operating performance of our company and our management team in connection with our executive compensation. These non-GAAP key business indicators, which include Adjusted EBITDA, should not be considered replacements for and should be read in conjunction with the GAAP financial measures.
We define Adjusted EBITDA as GAAP net (loss) income adjusted to exclude: (1) interest expense, (2) interest income, (3) provision (benefit) for income taxes, (4) depreciation and amortization, (5) stock-based expense from options and warrants and (6) certain other items management believes affect the comparability of operating results. Please see “Adjusted EBITDA” below for more information and for a reconciliation of Adjusted EBITDA to net (loss) income, the most directly comparable financial measure calculated and presented in accordance with GAAP.
Table 1. Reconciliation of Net (Loss) Income to Adjusted EBITDA
For the three months and year ended December 31, 2012 and 2011
|
| Three months ended |
| Twelve months ended |
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|
| December 31, |
| December 31, |
| ||||||||
|
| 2012 |
| 2011 |
| 2012 |
| 2011 |
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| US$Millions |
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ADJUSTED EBITDA: |
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| ||||
Net (loss) income |
| $ | (0.1 | ) | $ | 1.8 |
| $ | (4.5 | ) | $ | 2.4 |
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Interest expense |
| 0.0 |
| 0.0 |
| 0.1 |
| 0.3 |
| ||||
Interest and other expense (income) |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| ||||
(Benefit) provision for income taxes |
| (0.1 | ) | 0.2 |
| 0.2 |
| 0.3 |
| ||||
Depreciation and amortization |
| 0.8 |
| 0.6 |
| 2.8 |
| 2.4 |
| ||||
Expensing of deferred IPO costs(1) |
| 0.0 |
| 0.0 |
| 2.6 |
| 0.0 |
| ||||
Stock-based expense |
| 0.3 |
| 0.1 |
| 1.1 |
| 0.6 |
| ||||
Acquisition deal costs |
| 0.0 |
| 0.0 |
| 0.1 |
| 0.0 |
| ||||
Convertible debt prepayment fee(2) |
| 0.0 |
| 0.0 |
| 0.0 |
| 0.6 |
| ||||
Derecognition of note payable(3) |
| 0.0 |
| 0.0 |
| 0.0 |
| (0.7 | ) | ||||
Adjusted EBITDA (non-GAAP) |
| $ | 0.9 |
| $ | 2.7 |
| $ | 2.4 |
| $ | 5.9 |
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(1) July 2011, we filed our first registration statement on Form S-1. From July 2011 through August 2012 we continued to update and amend Form S-1. During the quarter ended September 30, 2012 we determined that it is likely that our IPO will be postponed for a period in excess of 90 days and as a result deemed it to be an aborted offering in accordance with the guidance set forth in ASC 340-10-S99-1. For the three months ending September 30, 2012, we expensed previously deferred IPO costs of $2.3 million associated with our registration statement on Form S-1 as well as any IPO costs incurred in the third quarter to selling, general and administrative expenses. The total amount of the expense for the year was $2.6 million.
(2) In April 2011, the convertible debt holders converted the outstanding principal amount of $9.0 million under convertible notes issued in 2007 and 2008 into an aggregate of 4,049,776 shares of common stock. In addition, we issued 127,318 shares of common stock valued at $0.3 million in lieu of cash payments for accrued interest and 297,682 shares of common stock valued at $0.6 million as a prepayment fee negotiated at the time of conversion. The shares issued for the accrued interest and the prepayment fee were valued at the average closing price of our common stock on AIM under the symbol “PPTR” during the 10 trading day period ending two days prior to the conversion.
(3) In 2003, we entered into an agreement with FHMS and FTB and recorded a liability. Due to a breach of the contractual terms by FHMS and FTB, we did not believe we were liable to repay these amounts. As of March 31, 2011, the statute of limitations had expired on $0.66 million of the $0.7 million balance and as of September 30, 2011, the statute of limitations had expired on the remaining $40,000. For the twelve months ended December 31, 2011, we recorded other income due to the derecognition of the note payable in the amount of $0.7 million.
Table 2. Reconciliation of Prospective Net Income to Adjusted EBITDA
For the year ending December 31, 2013
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| Range |
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| US$ Millions |
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ADJUSTED EBITDA: |
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Net income |
| $ | 2.6 |
| $ | 4.8 |
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Interest expense |
| 0.1 |
| 0.1 |
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Interest income |
| 0.0 |
| 0.0 |
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Provision for income taxes |
| 0.5 |
| 0.7 |
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Depreciation and amortization |
| 3.4 |
| 3.4 |
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Stock-based expense |
| 1.6 |
| 1.6 |
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Adjusted EBITDA (non-GAAP) |
| $ | 8.3 |
| $ | 10.6 |
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Table 3. Explanation of Key Metrics
|
| Year ended December 31, |
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| 2012 |
| 2011 |
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KEY METRICS: |
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Consolidated gross billings(1) |
| $ | 117,945,131 |
| $ | 102,439,474 |
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Total settled dollar volume processed(2) |
| $ | 6,114,241,521 |
| $ | 4,833,375,222 |
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Total active merchant locations (at period end)(3) |
| 40,918 |
| 27,887 |
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Multi-currency processing services key metrics: |
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Active merchant locations (at period end)(3) |
| 22,015 |
| 16,347 |
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Settled transactions processed(4) |
| 11,883,366 |
| 10,801,177 |
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Gross foreign currency mark-up(5) |
| $ | 103,174,205 |
| $ | 87,820,070 |
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Settled dollar volume processed(6) |
| $ | 2,628,252,265 |
| $ | 2,339,615,142 |
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Average net mark-up percentage on settled |
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dollar volume processed(7) |
| 1.10 | % | 1.16 | % | ||
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Payment processing services key metrics: |
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Active merchant locations (at period end)(3) |
| 18,921 |
| 11,552 |
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Payment processing services revenue(8) |
| $ | 14,770,926 |
| $ | 14,619,404 |
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Settled transactions processed(9) |
| 34,084,805 |
| 20,176,344 |
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Settled dollar volume processed(10) |
| $ | 3,485,989,256 |
| $ | 2,493,760,080 |
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(1) Represents gross foreign currency mark-up plus payment processing services revenue.
(2) Represents total settled dollar volume processed through both our multi-currency and payment processing services.
(3) We consider a merchant location to be active as of a date if the merchant completed at least one revenue-generating transaction at the location during the 90-day period ending on such date. The total number of active merchant locations exceeds the total number of merchants, as merchants may have multiple locations. As of December 31, 2012 and 2011 and 2010, there were 18 and 12 active merchant locations, respectively, that used both our multi-currency processing services and our payment processing services. These amounts are included in multi-currency and payment processing active merchant locations but are not included in total active merchant locations.
(4) Represents settled transactions processed using our multi-currency processing services.
(5) Represents the gross foreign currency mark-up amount on settled dollar volume processed using our multi-currency processing services. Gross foreign currency mark-up represents multi-currency processing services net revenue plus amounts paid to acquiring banks and their merchants associated with such multi-currency processing transactions. Management believes this metric is relevant because it provides the reader an indication of the gross mark-up derived from multi-currency transactions processed through our platform during a given period.
(6) Represents the total settled dollar volume processed using our multi-currency processing services.
(7) Represents the average net mark-up percentage earned on settled dollar volume processed using our multi-currency processing services. The average net mark-up percentage on settled dollar volume processed is calculated by taking the reported total multi-currency processing services net revenue ($28.8 million, and $27.2 million for the years ended December 31, 2012 and 2011, respectively) and dividing by settled dollar volume processed.
(8) Represents revenue earned and reported on payment processing services.
(9) Represents settled transactions processed using our payment processing services.
(10) Represents the total settled dollar volume processed using our payment processing services.
Planet Payment, Inc. unaudited consolidated balance sheets
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| December 31, |
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| 2012 |
| 2011 |
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Current assets: |
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Cash and cash equivalents |
| $ | 6,002,457 |
| $ | 7,671,963 |
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Restricted cash |
| 2,517,616 |
| 1,941,909 |
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Accounts receivable, net of allowances of $1.5 million and $1.4 million, respectively, as of December 31, 2012 and 2011 |
| 5,585,815 |
| 4,768,040 |
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Prepaid expenses and other assets |
| 2,395,137 |
| 947,043 |
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Total current assets |
| 16,501,025 |
| 15,328,955 |
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Other assets: |
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Restricted cash |
| 669,406 |
| 659,958 |
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Property and equipment, net |
| 1,396,154 |
| 1,223,562 |
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Software development costs, net |
| 4,776,320 |
| 4,978,002 |
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Intangible assets, net |
| 3,289,590 |
| 799,648 |
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Goodwill |
| 347,599 |
| — |
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Security deposits and other assets |
| 338,408 |
| 213,230 |
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Deferred IPO costs |
| — |
| 1,650,789 |
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Total other assets |
| 10,817,477 |
| 9,525,189 |
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Total assets |
| $ | 27,318,502 |
| $ | 24,854,144 |
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Accounts payable |
| $ | 889,118 |
| $ | 993,872 |
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Accrued expenses |
| 5,298,789 |
| 2,482,255 |
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Due to merchants |
| 2,546,140 |
| 2,137,064 |
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Current portion of capital leases |
| 337,588 |
| 247,257 |
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Total current liabilities |
| 9,071,635 |
| 5,860,448 |
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Long-term liabilities: |
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Long-term portion of capital leases and other long-term liabilities |
| 364,010 |
| 248,730 |
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Total long-term liabilities |
| 364,010 |
| 248,730 |
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Total liabilities |
| 9,435,645 |
| 6,109,178 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Convertible preferred stock—10,000,000 shares authorized,—as of December 31, 2012 and 4,000,000 shares authorized as of December 31, 2011, $0.01 par value: Series A—2,243,750 issued and outstanding as of December 31, 2012 and 2011; $8,975,000 aggregate liquidation preference |
| 22,438 |
| 22,438 |
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Common stock—250,000,000 shares authorized as of December 31, 2012 and 80,000,000 shares authorized as of December 31, 2011, $0.01 par value, and 53,658,857 and 51,764,405 shares issued and outstanding as of December 31, 2012 and 2011, respectively |
| 536,589 |
| 517,644 |
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Additional paid-in capital |
| 97,576,498 |
| 94,083,901 |
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Warrants |
| 1,622,651 |
| 1,622,651 |
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Accumulated other comprehensive gain (loss) |
| 37,925 |
| (40,729 | ) | ||
Accumulated deficit |
| (81,913,244 | ) | (77,460,939 | ) | ||
Total stockholders’ equity |
| 17,882,857 |
| 18,744,966 |
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Total liabilities and stockholders’ equity |
| $ | 27,318,502 |
| $ | 24,854,144 |
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Planet Payment, Inc. unaudited consolidated statements of operations
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| Year ended December 31, |
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| 2012 |
| 2011 |
| 2010 |
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Revenue: |
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Net revenue |
| $ | 43,578,016 |
| $ | 41,858,166 |
| $ | 30,553,164 |
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Operating expenses: |
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Cost of revenue: |
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Payment processing service fees |
| 10,943,290 |
| 11,677,012 |
| 10,051,640 |
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Processing and service costs |
| 11,010,778 |
| 9,093,674 |
| 6,980,981 |
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Software licenses impairment |
| — |
| — |
| 1,108,514 |
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Total cost of revenue |
| 21,954,068 |
| 20,770,686 |
| 18,141,135 |
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Selling, general and administrative expenses |
| 25,865,652 |
| 18,152,014 |
| 14,304,448 |
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Total operating expenses |
| 47,819,720 |
| 38,922,700 |
| 32,445,583 |
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(Loss) income from operations |
| (4,241,704 | ) | 2,935,466 |
| (1,892,419 | ) | |||
Other (expense) income: |
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Interest expense |
| (55,987 | ) | (319,098 | ) | (1,169,578 | ) | |||
Interest income |
| 1,236 |
| 1,582 |
| 429 |
| |||
Other (expense) income, net |
| (8,739 | ) | 98,682 |
| — |
| |||
Total other expense, net |
| (63,490 | ) | (218,834 | ) | (1,169,149 | ) | |||
(Loss) income from operations before provision for income taxes |
| (4,305,194 | ) | 2,716,632 |
| (3,061,568 | ) | |||
Provision for income taxes |
| (147,111 | ) | (331,903 | ) | (3,219 | ) | |||
Net (loss) income |
| $ | (4,452,305 | ) | $ | 2,384,729 |
| $ | (3,064,787 | ) |
Basic net (loss) income per share applicable to common stockholders |
| $ | (0.09 | ) | $ | 0.04 |
| $ | (0.08 | ) |
Diluted net (loss) income per share applicable to common stockholders |
| $ | (0.09 | ) | $ | 0.04 |
| $ | (0.08 | ) |
Weighted average common stock outstanding (basic) |
| 52,187,144 |
| 49,348,033 |
| 40,431,073 |
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Weighted average common stock outstanding (diluted) |
| 52,187,144 |
| 52,167,492 |
| 40,431,073 |
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Planet Payment, Inc. unaudited consolidated statements of cash flows
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| Year ended December 31, |
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| 2012 |
| 2011 |
| 2010 |
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Cash flows from operating activities: |
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Net (loss) income |
| $ | (4,452,305 | ) | $ | 2,384,729 |
| $ | (3,064,787 | ) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
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Stock-based expense |
| 1,075,079 |
| 555,882 |
| 739,992 |
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Depreciation and amortization expense |
| 2,831,379 |
| 2,416,873 |
| 1,769,650 |
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Provision (recovery) for doubtful accounts |
| 136,350 |
| 75,384 |
| (36,703 | ) | |||
Deferred tax liability |
| (66,009 | ) | — |
| — |
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Disposal of property and equipment |
| 86,388 |
| — |
| — |
| |||
Expensing of deferred IPO costs |
| 2,346,210 |
| — |
| — |
| |||
Software license impairment charge |
| — |
| — |
| 1,108,514 |
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Accrued insurance proceeds |
| (100,000 | ) | — |
| — |
| |||
Non-cash interest expense on convertible debt |
| — |
| 254,636 |
| 808,193 |
| |||
Non-cash interest expense on term debt |
| — |
| — |
| 295,743 |
| |||
Warrant expense |
| — |
| 14,928 |
| 89,741 |
| |||
Common stock issued for payment of account payable |
| — |
| 20,000 |
| — |
| |||
Derecognition of note payable |
| — |
| (700,000 | ) | — |
| |||
Non-cash prepayment fee on conversion of convertible debt |
| — |
| 601,318 |
| — |
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Changes in operating assets and liabilities net of effects of acquisitions: |
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(Increase) decrease in settlement assets |
| (575,707 | ) | 118,448 |
| (46,859 | ) | |||
Increase in accounts receivables, prepaid expenses and other current assets |
| (1,725,523 | ) | (1,825,403 | ) | (1,787,798 | ) | |||
Increase in software licenses |
| — |
| — |
| (80,209 | ) | |||
(Increase) decrease in security deposits and other assets |
| (11,575 | ) | 32,051 |
| 52,247 |
| |||
Increase in accounts payable and accrued expenses |
| 1,713,071 |
| 2,088,190 |
| 231,768 |
| |||
Increase (decrease) in due to merchants |
| 409,076 |
| (157,188 | ) | 201,103 |
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Other |
| (65,018 | ) | (13,128 | ) | (1 | ) | |||
Net cash provided by operating activities |
| 1,601,416 |
| 5,866,720 |
| 280,594 |
| |||
Cash flows from investing activities: |
|
|
|
|
|
|
| |||
(Increase) decrease in restricted cash |
| (9,448 | ) | 90,042 |
| — |
| |||
Purchase of property and equipment |
| (269,557 | ) | (161,705 | ) | (300,540 | ) | |||
Capitalized software development |
| (1,360,091 | ) | (1,862,653 | ) | (1,970,349 | ) | |||
Purchase of intangible assets |
| (149,420 | ) | (78,453 | ) | (79,618 | ) | |||
Cash paid for business combination, net of cash acquired |
| (1,577,829 | ) | — |
| — |
| |||
|
| Year ended December 31, |
| |||||||
|
| 2012 |
| 2011 |
| 2010 |
| |||
|
|
|
|
|
|
|
| |||
Net cash used in investing activities |
| (3,366,345 | ) | (2,012,769 | ) | (2,350,507 | ) | |||
Cash flows from financing activities: |
|
|
|
|
|
|
| |||
Proceeds from issuance of common stock |
| 774,749 |
| 269,965 |
| 6,058,702 |
| |||
Principal payments on capital lease obligations |
| (324,795 | ) | (284,682 | ) | (187,144 | ) | |||
Payment of capital-raising expense |
| — |
| — |
| (343,969 | ) | |||
Repayment of long-term debt |
| — |
| — |
| (2,000,000 | ) | |||
Payment of IPO costs |
| (354,531 | ) | (1,349,770 | ) | — |
| |||
Net cash provided by (used in) financing activities |
| 95,423 |
| (1,364,487 | ) | 3,527,589 |
| |||
Effect of exchange rate changes on cash and cash equivalents(*) |
| — |
| — |
| (27,600 | ) | |||
Net (decrease) increase in cash and cash equivalents |
| (1,669,506 | ) | 2,489,464 |
| 1,430,076 |
| |||
Beginning of period |
| 7,671,963 |
| 5,182,499 |
| 3,752,423 |
| |||
End of period |
| $ | 6,002,457 |
| $ | 7,671,963 |
| $ | 5,182,499 |
|
Supplemental disclosure: |
|
|
|
|
|
|
| |||
Cash paid for: |
|
|
|
|
|
|
| |||
Interest |
| $ | 53,994 |
| $ | 64,462 |
| $ | 65,642 |
|
Income taxes |
| 541,933 |
| 233,535 |
| 142 |
| |||
Non cash investing and financing activities: |
|
|
|
|
|
|
| |||
Convertible debt converted to common stock |
| $ | — |
| $ | 8,979,926 |
| $ | — |
|
Common stock issued to pay accrued interest |
| — |
| — |
| 1,103,936 |
| |||
Common stock issued for BPS acquisition |
| 1,596,862 |
| — |
| — |
| |||
Common stock issued for stock options and warrants exercised |
| 13,335 |
| 354 |
| 19,661 |
| |||
Assets acquired under capital leases |
| 530,984 |
| 349,484 |
| 223,965 |
| |||
Common stock issued for warrants exercised |
| — |
| — |
| 2,000,000 |
| |||
Reduction of long-term debt through exercise of warrants |
| — |
| — |
| (2,000,000 | ) | |||
Accrued IPO costs |
| — |
| 301,019 |
| — |
| |||
(*) For the year ended December 31, 2012 and 2011, the effect of exchange rate changes on cash and cash equivalents was inconsequential.
Planet Payment, Inc. unaudited consolidated statements of changes in convertible preferred stock and stockholders’ (deficit) equity
|
| Convertible |
| Common stock |
| Additional |
|
|
| Accumulated |
|
|
| Total |
| |||||||||||
|
| Shares |
| Shares par |
| December 31, 2012 |
| paid-In |
|
|
| comprehensive |
| Accumulated |
| stockholders’ |
| |||||||||
|
| issued |
| Value |
| Issued |
| Par value |
| capital |
| Warrants |
| loss |
| deficit |
| (deficit) equity |
| |||||||
Balance—December 31, 2009 |
| 2,243,750 |
| $ | 22,438 |
| 39,170,213 |
| $ | 391,701 |
| $ | 73,969,455 |
| $ | 1,517,982 |
| $ | — |
| $ | (76,780,881 | ) | $ | (879,305 | ) |
Stock issued |
| — |
| — |
| 5,357,897 |
| 53,579 |
| 6,765,090 |
| — |
| — |
| — |
| 6,818,669 |
| |||||||
Warrant exercised |
| — |
| — |
| 1,526,718 |
| 15,267 |
| 1,984,733 |
| — |
| — |
| — |
| 2,000,000 |
| |||||||
Options exercised |
| — |
| — |
| 13,668 |
| 137 |
| (137 | ) | — |
| — |
| — |
| — |
| |||||||
Warrant expense |
| — |
| — |
| — |
| — |
| — |
| 89,741 |
| — |
| — |
| 89,741 |
| |||||||
Stock-based expense |
| — |
| — |
| — |
| — |
| 739,992 |
| — |
| — |
| — |
| 739,992 |
| |||||||
Cumulative translation adjustment |
| — |
| — |
| — |
| — |
| — |
| — |
| (27,600 | ) | — |
| (27,600 | ) | |||||||
Net loss |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| (3,064,787 | ) | (3,064,787 | ) | |||||||
Balance—December 31, 2010 |
| 2,243,750 |
| 22,438 |
| 46,068,496 |
| 460,684 |
| 83,459,133 |
| 1,607,723 |
| (27,600 | ) | (79,845,668 | ) | 5,676,710 |
| |||||||
Stock issued |
| — |
| — |
| 4,484,776 |
| 44,848 |
| 9,811,033 |
| — |
| — |
| — |
| 9,855,881 |
| |||||||
Restricted stock issued |
| — |
| — |
| 915,000 |
| 9,150 |
| — |
| — |
|
|
|
|
| 9,150 |
| |||||||
Warrants exercised |
| — |
| — |
| 28,560 |
| 286 |
| (286 | ) | — |
| — |
| — |
| — |
| |||||||
Options exercised |
| — |
| — |
| 267,573 |
| 2,676 |
| 258,139 |
| — |
| — |
| — |
| 260,815 |
| |||||||
Warrant expense |
| — |
| — |
| — |
| — |
| — |
| 14,928 |
| — |
| — |
| 14,928 |
| |||||||
Stock-based expense |
| — |
| — |
| — |
| — |
| 555,882 |
| — |
| — |
| — |
| 555,882 |
| |||||||
Cumulative translation adjustment |
| — |
| — |
| — |
| — |
| — |
| — |
| (13,129 | ) | — |
| (13,129 | ) | |||||||
Net income |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 2,384,729 |
| 2,384,729 |
| |||||||
Balance—December 31, 2011 |
| 2,243,750 |
| 22,438 |
| 51,764,405 |
| 517,644 |
| 94,083,901 |
| 1,622,651 |
| (40,729 | ) | (77,460,939 | ) | 18,744,966 |
| |||||||
Options exercised |
| — |
| — |
| 488,513 |
| 4,885 |
| 769,864 |
| — |
| — |
| — |
| 774,749 |
| |||||||
Issuance of common shares—Acquisition of BPS |
| — |
| — |
| 488,337 |
| 4,884 |
| 1,596,862 |
| — |
| — |
| — |
| 1,601,746 |
| |||||||
Stock-based expense |
| — |
| — |
| — |
| — |
| 1,135,047 |
| — |
| — |
| — |
| 1,135,047 |
| |||||||
Warrants exercised |
| — |
| — |
| 917,602 |
| 9,176 |
| (9,176 | ) | — |
| — |
| — |
| — |
| |||||||
Cumulative translation adjustment |
| — |
| — |
| — |
| — |
| — |
| — |
| 78,654 |
| — |
| 78,654 |
| |||||||
Net loss |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| (4,452,305 | ) | (4,452,305 | ) | |||||||
Balance— December 31, 2012 |
| 2,243,750 |
| $ | 22,438 |
| 53,658,857 |
| $ | 536,589 |
| $ | 97,576,498 |
| $ | 1,622,651 |
| $ | 37,925 |
| $ | (81,913,244 | ) | $ | 17,882,857 |
|