Message #27 From:
Stock News Bot Date: November 14, 2006 06:00:00 AM
PPDA News Pipeline Data Announces Third Quarter Financial Results
QUINCY, Mass.--(BUSINESS WIRE)--Pipeline Data Inc. (OTCBB: PPDA), a provider of payment processing
solutions and services, announced its financial results for the third
quarter ended September 30, 2006.
Revenue increased $8.6 million to $14.9 million in the third quarter of
2006 as compared to $6.3 million for the same period last year. Gross
Profit increased 171% to $4.3 million for the third quarter as compared
to $1.6 million for the same period last year. Operating income
increased to $1.2 million from $156,300 for the same period last year.
Net loss was $(304,800), as the company incurred an interest expense of
$1.5 million of which $764,200 was due to the amortization of debt
issuance costs.
For the nine months ended September 30, 2006, revenue increased 80% to a
record of $30.7 million as compared to $17.0 million for the same period
last year. Gross Profit increased 139% to $10.5 million as compared to
$4.4 million for the same period last year. Operating income increased
to $1.7 million from $156,200 for the same period last year. Net loss
for the first nine months of 2006 was $(2,142,600) or $(0.05) per basic
share. Pipeline’s net earnings were impacted
by an interest expense of $3.1 million and a one time adjustment of
$2.14 million related to the early retirement of debt.
MacAllister Smith, CEO, stated, "We are pleased with the strong results
we achieved during the third quarter as we experienced strong organic
growth and completed the Valadata and Paynet acquisitions. Our operating
profits of $1.2 million were a major improvement over prior year and
EBITDA for the quarter increased 106% to more than $1.9 million. As we
continue to grow our business and focus on our margins, we hope to
continue to improve our revenues, EBITDA, operating income and overall
financial results."
Mr. Smith, continued, “During the third
quarter, we continued to strengthen our in-house sales force to further
accelerate our organic growth as we are now accepting over 1,500 new
applications per month and serving more than 40,000 merchants, a 217%
increase as compared to last year. Additionally, we processed $407
million worth of transactions during the third quarter alone, up
substantially from prior year’s processing
volume of $187 million.”
SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
EBITDA is a non-GAAP financial measure used by management, as well as
some industry analysts, to measure operating performance. The Company
believes that presenting adjusted EBITDA is useful to investors because
the measure excludes infrequent charges related to specific
non-recurring transactions, as the Company believes that these items are
not indicative of its operating performance. The Company believes that
EBITDA and adjusted EBITDA are useful supplements to net income and
other income statement data in understanding income from operations that
best reflects its operating performance.
When evaluating EBITDA from continuing operations, investors should
consider, among other things, increasing and decreasing trends in EBITDA
. However, these measures should not be construed as alternatives to
operating income (as an indicator of operating performance) or cash
provided by operating activities (as a measure of liquidity) as
determined in accordance with GAAP. All companies do not calculate
EBITDA in the same manner. Accordingly, the EBITDA may not be comparable
to similarly titled measures of other companies.
As used herein, "GAAP" refers to accounting principles generally
accepted in the United States of America.
For the three months ended
--------------------------
September 30, 2006 September 30, 2005
------------------ ------------------
Net Income / (Loss) $(304,822) $274,944
Adjustments:
Interest expense $1,527,158 $173,869
Income tax expense /
(benefit) $114 $(277,908)
Depreciation and
amortization $717,827 $214,938
EBITDA from continuing
operations $1,940,659 $941,659
For the nine months ended
-------------------------
September 30, 2006 September 30, 2005
------------------ ------------------
Net Income / (Loss) $(2,142,599) $244,688
Adjustments:
Interest expense $3,061,454 $495,762
Loss On Early
Retirement of Debt $2,140,107 0
Income tax expense /
(benefit) $(1,285,794) $(531,678)
Depreciation and
amortization $1,640,866 $625,473
EBITDA $3,414,034 $834,245
Pipeline Data provides integrated credit card transaction processing
services for merchants in three key areas: e-commerce solutions, retail
merchant payment and wireless mobile payment. Pipeline Data services
more than 40,000 accounts.
Safe Harbor Statement:
The information provided for in this Press Release contains
forward-looking statements that involve risks and uncertainties more
fully set forth in the Company's filing. The Private Securities
Litigation Reform Act of 1995 provides a "safe harbor" for
forward-looking statements. Certain information included in this press
release contains statements that are forward-looking, such as statements
relating to uncertainties that could affect performance and results of
the Company in the future and, accordingly, such performance and results
may materially differ from those expressed or implied in any
forward-looking statements made by or on behalf of the Company. These
risks and uncertainties include, but are not limited to those relating
to the Company's growth strategy, customer concentration, outstanding
indebtedness, seasonality, expansion and other activities of
competitors, changes in federal or state laws and the administration of
such laws, protection of the securities markets and other risks detailed
in the Company's filings with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date the
statement was made. Statements made in this Press Release that are not
historical facts are forward-looking statements that are subject to the
"safe harbor" created by the Private Securities Litigation Reform Act of
1995. The Company's actual results could differ significantly from those
discussed and/or implied herein.
