SAN ANTONIO, Aug. 14, 2014 (GLOBE NEWSWIRE) -- Payment Data Systems, Inc. (OTCQB:PYDS) an integrated electronic payments solutions provider, today announced financial results for the quarter ended June 30, 2014.
Revenues for the quarter ended June 30, 2014 grew 255% to $3,304,175 as compared to $930,830 for the same period in 2013 due to higher transaction volumes in credit card and debit card and ACH processing. The revenues are the highest the company has ever experienced in any previous quarter in its history.
Operating income for the quarter ended June 30, 2014 was $466,379 when compared to an operating loss of $321,900 for the same period in 2013.
The Company reported net income for the quarter ended June 30, 2014 of $486,801 as compared to a net loss of $266,484 for the same period in the prior year.
Gross profit for the quarter ended June 30, 2014 grew 792% to $954,905 from $107,042 for the same period in 2013.
Cash and cash equivalents for the quarter ended June 30, 2014 increased to $60,790,124 from $2,349,675 for the same period in 2013. The increase was attributed to the dramatic increase in processing from newly acquired customers during the last three quarters that resulted in higher customer deposits.
Highlights for the second quarter of 2014 include:
- Credit card processing volumes for the second quarter of 2014 were the highest in the history of the company for any previous quarter. Credit card dollars processed during the second quarter of 2014 were up 14% over the same time period in 2013. Credit cards transactions processed during the second quarter 2014 were up 56% over the same time period in 2013.
- Electronic check transaction volumes were up 45% and returned check transactions for the second quarter of 2014's were up 27% as compared to the same period in 2013. This growth was driven from the addition of new customers.
- Total dollars processed for the second quarter of 2014 set a new record for the company exceeding $793,000,000 and breaking the previous record that was achieved in first quarter of 2014 of $550,000.000.
Commenting on the results for the quarter, Michael R. Long, Chairman and Chief Executive Officer of Payment Data Systems, said, "This quarter continues as our third profitable quarter in a row and we expect our next quarter to continue this trend of increasing profits. The positive financial metrics continue to be derived from our growth in transactions processed from both credit and debit card processing and ACH processing. The growth is primarily from increased customer demand for our processing services. We believe the growth trends in payment transaction processing should continue for the foreseeable future and should result in our reporting positive third quarter financial metrics including revenue, gross profits, operating income and net income. We also believe that with our consistent growth in our financial metrics that our company is currently undervalued."
| PAYMENT DATA SYSTEMS, INC. | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (UNAUDITED) | ||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Revenues | $3,304,173 | $930,830 | $6,034,996 | $1,990,333 |
| Operating expenses: | ||||
| Cost of services | 2,349,268 | 823,788 | 4,441,294 | 1,650,088 |
| Selling, general and administrative: | ||||
| Stock-based compensation | 72,995 | 73,270 | 150,990 | 146,540 |
| Other expenses | 404,825 | 348,085 | 785,258 | 724,385 |
| Depreciation | 10,706 | 7,587 | 20,611 | 13,878 |
| Total operating expenses | 2,837,794 | 1,252,730 | 5,398,153 | 2,534,891 |
| Operating income (loss) | 466,379 | (321,900) | 636,843 | (544,558) |
| Other income and (expense): | ||||
| Interest income | 22,424 | 97 | 29,238 | 573 |
| Other income (expense) | 8,593 | 62,319 | 5,233 | 52,070 |
| Total other income and (expense), net | 31,017 | 62,416 | 34,471 | 52,643 |
| Income (loss) before income taxes | 497,396 | (259,484) | 671,314 | (491,915) |
| Income taxes | 10,595 | 7,000 | 22,774 | 7,000 |
| Net income (loss) | $486,801 | $ (266,484) | $648,540 | $ (498,915) |
| Basic earnings (loss) per common share: | $0.00 | $0.00 | $0.01 | $0.00 |
| Diluted earnings (loss) per common share: | $0.00 | $0.00 | $0.00 | $0.00 |
| Weighted average common shares outstanding | ||||
| Basic | 125,014,549 | 131,331,572 | 125,009,229 | 131,331,572 |
| Diluted | 132,833,380 | 131,331,572 | 132,555,239 | 131,331,572 |
For complete results, please view our 10Q report filed with the SEC today.
About Payment Data Systems, Inc.
Payment Data Systems is an integrated payment solutions provider to merchants and billers. The organization provides an extensive set of products to deliver world-class payment acceptance. Payment Data has solutions for merchants, billers, banks, service bureaus and card issuers. The strength of the Company is its ability to offer specifically tailored solutions for card issuance, payment acceptance and bill payments.
For additional information, visit www.paymentdata.com . Contact Michael Long for Investor Relations information at 210.249.4040 or email at ir@paymentdata.com .
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FORWARD-LOOKING STATEMENTS DISCLAIMER
Except for the historical information contained herein, the matters discussed in this release include certain forward-looking statements, which are intended to be covered by safe harbors. Those statements include, but may not be limited to, all statements regarding the Company's and management's intent, belief and expectations, such as statements concerning the Company's future and its operating and growth strategy. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, the factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. One or more of these factors have affected, and in the future could affect, the Company's businesses and financial results and could cause actual results to differ materially from plans and projections. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company's objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to the Company's management. The Company assumes no obligation to update any forward-looking statements, except as required by law.
