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3PEA Reports Record Fourth Quarter and Full Year 2014 Financial Results3PEA International, Inc. (OTCQB:TPNL), a vertically integrated provider of innovative prepaid card programs and processing services for corporate, consumer and government applications, reported financial results for the fourth quarter and full year ended December 31, 2014. 2014 Financial Highlights vs. 2013
Management Commentary "2014 was a breakthrough year for our Company, as we experienced record revenue and net income," said Arthur De Joya, Chief Financial Officer, 3PEA International, Inc. "Much of this growth is attributed to the continued traction in healthcare reimbursement payments, pharmaceutical co-pay assistance programs, and donor payments for source plasma using our PaySign brand of prepaid debit cards. Using the PaySign Platform, we can quickly design and implement comprehensive solutions for a variety of industries that are customizable and cost effective for our customers." "We've also internalized our sales and marketing teams, which we will leverage to further penetrate the growing plasma industry, sign additional customers in the pharmaceutical space, and enter into new targeted verticals, such as automotive, retail and payroll, among others. This has resulted in the most robust pipeline of potential customers in our Company's history." "Going forward, we anticipate an acceleration in our business. As we aggressively pursue new customers in our traditional plasma and pharmaceutical markets, and penetrate other targeted verticals with our PaySign payment solutions, we are confident that our overall margin structure will continue to expand in 2015 and beyond." Q4 2014 Financial Results Total revenues in the fourth quarter of 2014 increased 156% to $4.9 million compared to $1.9 million in the same fourth quarter of quarter 2013. The increase in revenue primarily due to an increase in corporate incentive reward programs, specifically, the Company's healthcare reimbursement payments, pharmaceutical co-pay assistance, and donor payments for source plasma. Gross profit in the fourth quarter of 2014 increased to $4.0 million, or 80.9% of total revenues, compared to $1.0 million, or 49.5% of total revenues in the year-ago quarter. This improvement was attributable to programs such as donor payments for source plasma and pharmaceutical co-pay assistance. Total operating expenses in the fourth quarter of 2014 were $1.1 million compared to $0.5 million in the year-ago quarter. The increase was primarily due to $0.5 million in stock-based compensation to employees and directors, as well as continued investment in the company's infrastructure and sales and marketing teams. Net income in the fourth quarter of 2014 was $2.8 million, or $0.07 per diluted share, compared to net income of $0.4 million, or $0.01 per diluted share in the year-ago quarter. At December 31, 2014, the company's cash balance totaled $3.9 million compared to $1.0 million at December 31, 2013. At December 31, 2014, the company had $1.0 million in total debt. 2014 Financial Results Total revenues in 2014 increased 63% to $10.3 million compared to $6.3 million in 2013. The increase in revenue was primarily due to an increase in corporate incentive reward programs, specifically, the Company's healthcare reimbursement payments, pharmaceutical co-pay assistance, and donor payments for source plasma. Gross profit in 2014 increased to $5.6 million, or 54.8% of total revenues, compared to $2.2 million, or 34.9% of total revenues in 2013. This improvement was attributable to higher margin card programs such as donor payments for source plasma and pharmaceutical co-pay assistance. The Company expects gross profit margins will continue to improve in the future as it launches new corporate incentive reward programs utilizing the PaySign platform. Total operating expenses in 2014 were $2.9 million compared to $1.5 million in 2013. The increase was primarily due to $0.6 million in stock-based compensation to employees and directors, as well as continued investment in the company's infrastructure and sales and marketing teams. Net income in 2014 was $2.6 million, or $0.06 per diluted share, compared to a net income of $0.6 million, or $0.01 per diluted share in 2013. Recent Operational Highlights
The company also recently launched a new website at www.3pea.com, which features 3PEA's complete range of prepaid card solutions, as well as an enhanced news and investors sections, among others. About 3PEA International 3PEA International (OTCQB:TPNL) is an experienced and trusted prepaid debit card payment solutions provider as well as an integrated payment processor that has millions of prepaid debit cards in its portfolio. Through its PaySign brand, 3PEA designs and develops payment solutions, prepaid card programs, and customized payment services. 3PEA manages programs for many of the world's largest pharmaceutical manufacturers with copay assistance products designed to maximize new patient acquisition, retention, and adherence. 3PEA's corporate incentive prepaid cards are changing the way corporations reward, motivate, and engage their current and potential customers, employees, and agents. 3PEA's customizable prepaid solutions offer significant cost savings while improving brand recognition and customer loyalty. 3PEA's customers include healthcare companies, major pharmaceutical companies and source plasma providers, large multinationals, prestigious universities, and social media companies. PaySign is a registered trademark of 3PEA Technologies, Inc. in the United States and other countries. For more information visit us at www.3pea.com or follow us on LinkedIn, Twitter and Facebook. Forward-Looking Statements Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. There is no assurance that such statements will prove to be accurate, and actual results and future events could differ materially. 3PEA undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise.
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