Exhibit 99.56
(POINTS INTERNATIONAL LTD LOGO)
POINTS INTERNATIONAL LTD. REPORTS 2003 YEAR END RESULTS
HIGHLIGHTS INCLUDE 147% ANNUAL REVENUE GROWTH;
NEW PARTNERSHIPS WITH INDUSTRY LEADERS
TORONTO, APRIL 26, 2004 - Points International Ltd (TSX: PTS), operator of
the only independent loyalty program currency exchange - at www.points.com -
reported financial results for 2003.
"Points marked an impressive year in 2003," noted CEO Rob MacLean. "In
addition to 147% revenue growth, we are pleased with the results of our
focus on major new partners and corporate relationships. During 2003 and
into early 2004, our team launched and enhanced several important
relationships with the world's leading loyalty players, including American
Airlines, eBay, US Airways, Lufthansa and Priority Club Rewards, just to
name a few. Our 2003 partnership with strategic investor and major online
player InterActiveCorp was also a major achievement and significant
corporate watershed event."
In addition, on March 31, 2004, Points completed the acquisition of
substantially all of the assets of MilePoint, Inc. "We look forward to building
on the long term customer relationships acquired from MilePoint, including
Northwest Airlines, Delta Air Lines, Midwest Airlines and Starwood Hotels &
Resorts," MacLean said. "With this dynamic partner base, the opportunity for
Points Solutions, particularly our key focus - The Points Exchange - is
impressive. Billions of points and miles have now been transacted through our
Points Solutions platform and we look forward to accelerating this growth."
2003 Financial Highlights include:
- Revenue of $5.86 million for 2003, compared with revenue of $2.37
million earned during 2002. Management continues to expect solid
revenue growth in 2004.
- G&A expenses were $8.03 million, up from $6.94 million for 2002.
The 15% growth in G&A expenses was related to investments for new
partner acquisitions and the expanding eBay relationship. Points
continues to expect managed growth in G&A expenses.
- A reduction in the annual net loss, to $6.54 million for 2003
compared with $7.81 for 2002. Growth in revenue was the major
contributor to the reduction of net losses. Non-cash expenses were
$4.36 million during 2003, accounting for approximately 66% of the
net loss. Non cash charges included $1.48 million in interest
accrued on the convertible debenture and the Series Two Preferred
Share and $2.88 million in amortization of property, plant and
equipment, intangible assets and deferred costs.
- Earnings before interest, taxes, depreciation and amortization
("EBITDA") of negative $2.17 million for 2003, a significant
improvement compared with negative $4.57 million for 2002. The
decrease in the loss was related to the growth of revenues,
partially offset by the 15% increase in the general and
administration expenses.
- Cash at year-end 2003 of $20.27 million, compared with $7.34
million at December 31, 2002. Increased cash is attributed to
growth in Points business and the $15.1 million strategic
investment of InterActiveCorp ("IAC") in April 2003.
- As at year-end, Points has powered the online exchange, sale and
transfer of over 3.03 billion points and miles, up from 977
million at year-end 2002.
- Points Exchange activity continued to demonstrate strong growth in
2003, with 500% more points and miles being exchanged vs. 2002.
The transaction size of each exchange also grew in 2003, to 16,000
points per exchange, an increase of 30% over 2002.
Additional financial and business metrics will be discussed in the
Corporation's annual continuous disclosure materials, including Management's
Discussion and Analysis and the audited financial statements. The annual
continuous disclosure materials are expected to be released on or about May
19, 2004.
2003 Business Developments Highlights:
- A key strategic relationship with IAC, a leading online travel and
retail player. Points looks forward to the business and marketing
opportunities presented within the IAC group of companies and
their numerous partners in the travel, retail, ticketing,
personals, local services and financial services.
- A new multi-year agreement with cornerstone partner American
Airlines AAdvantage program, the world's largest loyalty program.
The new agreement extends a number of existing short-term
agreements through 2007, including those for the Points Exchange.
- An exciting new relationships with eBay. Points invested
significant resources and effort to build and launch several
solutions for the eBay Anything Points program - solutions that
are critical to eBay's new loyalty program. These solutions, along
with participation in the Points Exchange, have provided the early
basis for a great long term relationship.
- Expansion of the Points Exchange to include offerings from
programs such as US Airways(R), eBay Anything Points, Marriott
International Inc., Cathay Pacific, Priority Club Rewards(R) and
ReserveAmerica, an IAC affiliate. Points continues to focus on
adding partners to enhance the 3,600 exchange options available to
consumers.
"Starting 2004 with the acquisition of MilePoint's assets, and with other
significant business development progress, I feel that 2004 holds much
promise for Points," MacLean said. "The Points team looks forward to
continued revenue growth as we capitalize on our newly enhanced partner base
and build upon a year of successes in all areas of our business."
ABOUT POINTS INTERNATIONAL LTD.
Points operates The Points Exchange, the only independent loyalty points
exchange - at www.points.com - allowing consumers to exchange points and
miles from one participating loyalty program to another to achieve the
rewards they want faster than ever before. The Points Exchange has to date
attracted over 35 partners, including industry leaders eBay (Anything
Points), American Airlines (the AAdvantage program), InterContinental Hotels
(Priority Club Rewards(R)), Air Canada (Aeroplan), US Airways (Dividend
Miles), Delta Air Lines (Sky Miles), Imperial Oil (Esso Extra),
GiftCertificates.com, Fairmont Hotels & Resorts, Cathay Pacific Airways
(Asia Miles), American West Airlines (FlightFund), Alaska Airlines, (Mileage
Plan), JCPenney(R) and many more.
Points' shares trade on the TSX under the stock symbol PTS. For more
information, visit www.points.com.
CONTACT:
FOR PRESS ONLY:
Jeremy Adams, Edelman Public Relations
(312) 233-1226, jeremy.adams@edelman.com
FOR INVESTOR RELATIONS:
Steve Yuzpe, CFO, Points International
(416) 596-6382, Steve.Yuzpe@points.com
FOR PARTNERSHIPS AND OTHER INQUIRIES:
Christopher Barnard, President, Points International
(416) 596-6381, christopher.barnard@points.com.
THE TSX HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE
ADEQUACY OR THE ACCURACY OF THIS RELEASE
ATTACHMENT:
POINTS INTERNATIONAL LTD.
EXCERPTS FROM CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2003
POINTS INTERNATIONAL LTD.
CONSOLIDATED BALANCE SHEETS
AS AT DECEMBER 31 2003 2002
- ----------------- ----------- -----------
ASSETS
CURRENT
Cash and short-term investments (Note 3) $20,274,836 $ 7,341,700
Accounts receivable 1,004,370 267,632
Prepaids and sundry assets 825,221 657,367
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22,104,427 8,266,699
LONG-TERM INVESTMENTS 161,629 161,629
PROPERTY, PLANT AND EQUIPMENT 513,723 1,764,199
INTANGIBLE ASSETS 1,320,692 1,946,539
FUTURE INCOME TAXES RECOVERABLE 590,000 590,000
DEFERRED COSTS 2,790,816 410,954
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$27,481,286 $13,140,020
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POINTS INTERNATIONAL LTD.
CONSOLIDATED BALANCE SHEETS
AS AT DECEMBER 31 2003 2002
- ----------------- ------------ ------------
LIABILITIES
CURRENT
Accounts payable and accrued liabilities $ 1,187,598 $ 1,017,955
Deposits 10,455,646 8,946,631
Current portion of obligation under
capital leases -- 407,128
------------ ------------
11,643,245 10,371,715
CONVERTIBLE DEBENTURE 8,036,372 7,182,500
CONVERTIBLE PREFERRED SHARES 13,024,478 --
------------ ------------
32,704,095 17,554,215
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SHAREHOLDERS' EQUITY
CAPITAL STOCK 17,728,461 14,361,033
WARRANTS 2,785,737 425,588
DEFICIT (25,737,007) (19,200,816)
------------ ------------
(5,222,809) (4,414,195)
------------ ------------
$ 27,481,286 $ 13,140,020
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See Accompanying Notes 5.
POINTS INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
FOR THE YEARS ENDED DECEMBER 31 2003 2002
- ------------------------------- ------------ ------------
REVENUES
Points operations $ 5,502,744 $ 2,308,846
Interest and other revenue 355,960 59,446
------------ ------------
5,858,704 2,368,292
GENERAL AND ADMINISTRATION 8,029,471 6,941,069
------------ ------------
LOSS - Before interest, amortization and other deductions (2,170,767) (4,572,777)
------------ ------------
Interest on convertible debenture 853,872 660,000
Interest on Series Two Preferred Share 624,478 --
Interest and bank charges 9,753 50,071
Amortization of property, plant and equipment, intangible
assets and deferred costs 2,877,321 2,408,800
------------ ------------
4,365,424 3,118,871
------------ ------------
LOSS - From continuing operations (6,536,191) (7,691,648)
Loss from discontinued operations -- (115,730)
------------ ------------
NET LOSS (6,536,191) (7,807,378)
DEFICIT - Beginning of year (19,200,816) (11,393,438)
------------ ------------
DEFICIT - End of year $(25,737,007) $(19,200,816)
============ ============
LOSS PER SHARE - From continuing operations $ (0.11) $ (0.15)
============ ============
NET LOSS PER SHARE $ (0.11) $ (0.15)
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POINTS INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31 2003 2002
- ------------------------------- ----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss from continuing operations $(6,536,191) $(7,691,648)
Items not affecting cash
Amortization of property, plant and equipment 1,589,206 1,512,887
Amortization of deferred costs 531,914 328,763
Amortization - acquired technology 756,201 567,150
Shares issued in exchange for services -- 366,379
Warrants issued in exchange for services -- 2,775
Interest on Series Two Preferred Share 624,478 --
Interest accrued on convertible debenture 853,872 660,000
----------- -----------
(2,180,520) (4,253,694)
Changes in non-cash balances related to operations (Note 12 (a)) 774,066 7,130,198
----------- -----------
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES (1,406,454) 2,876,504
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Repayment of loans receivable from significantly influenced companies -- 19,500
Purchase of property, plant and equipment, net of proceeds (338,730) (45,551)
Purchase of intangible assets (130,353) (144,774)
Fees paid on acquisition (Note 13) -- (139,750)
----------- -----------
CASH FLOWS USED IN INVESTING ACTIVITIES (469,083) (310,575)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Costs (issuance of Series Two Preferred Share & warrant) (717,048) --
Deferred financing costs (2,194,728) --
Repayment of obligations under capital leases (407,128) (634,795)
Issuance of warrants 2,700,000 --
Issuance of Series Two Preferred Share 12,400,000 --
Issuance of capital stock, net of share issue costs 3,027,577 2,631,916
----------- -----------
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 14,808,673 1,997,121
----------- -----------
INCREASE IN CASH FROM CONTINUING ACTIVITIES 12,933,136 4,563,050
CASH FLOWS USED IN DISCONTINUED OPERATIONS -- (115,730)
----------- -----------
INCREASE IN CASH FROM ALL ACTIVITIES 12,933,136 4,447,320
CASH AND SHORT TERM INVESTMENTS - Beginning of year 7,341,700 2,894,380
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CASH AND SHORT TERM INVESTMENTS - End of year $20,274,836 $ 7,341,700
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