Wall Street Signals: Payment Data Systems Announces Results for the First Quarter of 2018

Payment Data Systems Announces Results for the First Quarter of 2018

Payment Data Systems (PYDS), an integrated electronic payment solutions provider, today announced first quarter 2018 financial results for the period that ended March 31, 2018 featuring record revenues for the quarter, compared to the previous period in 2017.



First Quarter 2018 Financial Summary

  • Revenues were $5.8 million for Q1 2018 vs. $2.8 million for Q1 2017, an increase of 108%.
  • Gross margin was $1.3 million, or 21.7% of revenues during the first quarter compared to $0.9 million, or 33.5% for Q1 2017.
  • Q1 2018 operating loss was $1.06 million compared to an operating loss of $.3 million for Q1 2017.
  • Adjusted EBITDA was a loss of $.2 million or 3.9% for Q1 2018 compared to earnings of $.1 million or 4.1 % for Q1 2017.
  • Net loss for the first quarter of 2018 was $1.05 million or ($0.09) per basic and diluted share versus a net loss of $.3 million or ($0.03) per basic and diluted share for Q1 2017.
  • More than 2.8 million total transactions were processed during Q1 2018.
  • More than $782 million total dollars were processed during Q1 2018.
  • Achieved a company record high 305% percent increase in credit card dollars processed and 307% percent increase in credit card transactions in the first quarter compared to Q1 2017.
  • Payment Data Systems continues to be in solid financial condition with $3.5 million in cash and cash equivalents and no debt.
Amid the principal quarter of 2018 electronic check exchange volumes were up 5% over the final quarter of 2017, speaking to the third back to back quarter of development. Returned check exchanges prepared amid first quarter of 2018 were up 6% when contrasted with the final quarter of 2017. Electronic check exchange volumes amid the primary quarter of 2018 were down 2% versus a similar era in 2017. Returned check exchanges handled amid the principal quarter of 2018 were down 2% versus a similar day and age in 2017. 

"As we expected, we have begun off the new business year with strong development, proceeding with the pattern we set toward the finish of a year ago with record year-over-year exchange levels and triple-digit income increments," said Louis Hoch, president, and CEO of Payment Data Systems. "In 2017 we started an income development design concentrated on both natural and development through securing. In help of the income development design, we are actualizing numerous upgrades to our protected installment applications and propelling a few extra items. The outcomes represent themselves as incomes and volumes keep on growing significantly. Our standpoint for 2018 is to proceed with this direction and we expect record yearly incomes for 2018."

Financial Results for the Three Months Ending March 31, 2018

Incomes for the quarter finished March 31, 2018 expanded 108% to $5.8 million, when contrasted with $2.8 million for the quarter finished March 31, 2017.The expansion for the quarter finished March 31, 2018 versus a similar period in 2017 was because of the procurement of the matter of Singular Payments, LLC on September 1, 2017 and included natural development from existing administrations. Incomes expanded 4% versus Q4 2017.

As of March 31, 2018, the company has $3.5 million in cash and cash equivalents and no debt, compared to $4.8 million at December 31, 2017.

Gross margin dollars in the first quarter were $1.3 million, or 21.7% of revenues, compared to $0.9 million, or 33.5% of revenues in the first quarter of last year.  
Our first quarter operating loss was $1.06 million compared to an operating loss of $.3 million in the first quarter of 2017. 
Adjusted EBITDA in the first quarter of 2018 was a loss of $.2 million compared to positive adjusted EBITDA of $.1 million in the first quarter of 2017. One-time expenses affecting Adjusted EBITDA totaled approximately $.2 million.
Net misfortune for the primary quarter of 2018 was $1.05 million, or ($0.09) per essential and weakened offer, contrasted with a net loss of $.3 million or ($0.03) per fundamental and weakened offer for the main quarter of 2017. Components adding to the expanded net misfortune were roughly $.3 million of incremental amortization cost identified with the Singular Payments securing, around $.2 million of incremental stock (non-money) pay cost and incremental compensations and finance-related costs as we work out our business power to drive incremental incomes.
Working costs (counting COGS) were $6.9 million for the primary quarter of 2018 versus the $3.1 million amid the main quarter of 2017. The incremental working costs mirror the incremental handling expense and pay rates and worker-related costs identified with the obtaining of the matter of Singular Payments.
Conference Call and Webcast
Payment Data Systems, Inc.’s management will host a conference call with a live webcast today at 5:00 p.m. Eastern Time to provide a business update.
To listen to the conference call, interested parties within the U.S. should call 1-844-883-3890. International callers should call +1-412-317-9246. All callers should ask for the Payment Data Systems conference call. The conference call will also be available through a live webcast, which can be accessed via the company’s website at www.paymentdata.com/invest.
A replay of the call will be available approximately one hour after the end of the call through May 29, 2018. The replay can be accessed via the Company’s website or by dialing 1-877-344-7529 (U.S.) or +1-412-317-0088 (international). The replay conference playback code is 10120168.