3Pea International Reports Record Third Quarter and Nine Month 2012 Results

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3Pea International Reports Record Third Quarter and Nine Month 2012 Results

  • Revenues increased by 124% and 146% in the three and nine months, respectively.
  • Operating income increased by 126% and 270% in the three and nine months, respectively.

HENDERSON, Nev.--(BUSINESS WIRE)-- 3Pea International, Inc. (OTCBB:TPNL), a leading payment solutions provider focused on prepaid debit card program management and processing services, today announced record financial results for the quarter ended September 30, 2012.

Third Quarter 2012 Results:


Revenues for the three months ended September 30, 2012 were $662,368, an increase of $384,359, or 124% compared to the same period in the prior year, when revenues were $278,009.

In the three months ended September 30, 2012, we recorded operating income of $107,858 as compared to operating income of $47,750 in the same period in the prior year, an improvement of $60,108 or 126%.

Our net income for the three months ended September 30, 2012 was $112,191, an increase of $80,424, or 253% when compared to the same period in the prior year, when we recorded net income of $31,767.

The increase in revenue, operating income and net income can be attributed to the increase in debit card processing utilizing new incentive reward programs which we believe will contribute to an increase in overall revenues for 2012.

Historically, third quarter revenues tend to be impacted by the normal life cycle of our pharmaceutical debit card programs. We expect the effects of this cyclicality to abate over the next several quarters as we continue to diversify our product offerings.

YTD 2012 Financial Results

Revenues for the first nine months of 2012 were $4,655,964, an increase of $2,775,354, or 146% when compared to the same period in the prior year, when revenue was $1,880,610. The increase in revenue can be attributed to increased debit card processing and the launch of new incentive reward programs.

In the nine months ended September 30, 2012, we recorded operating income of $560,383 as compared to operating income of $151,483 in the same period in the prior year, an improvement of $408,900, or 270%.

Other income for the nine months ended September 30, 2012 was $1,111,558, an increase in net other income of $1,159,200 compared to the same period in the prior year when other income (expense) was ($47,642). The overall increase in net other income in 2012 is primarily due to a gain on debt extinguishment totaling $1,136,055.

Net income for the first nine months of 2012 was $1,669,152 or $.05 per share, an increase of $1,565,311 or 1,507%, when compared to the first nine months of 2011 when net income was $103,903. The increase can be attributed to the factors discussed above.

According to the Company's Chief Financial Officer, Arthur de Joya, "We are very pleased with our results and look forward to the remainder of 2012 and beyond. We will continue to focus on developing a targeted range of new card programs to take advantage of our proprietary and customizable payment solution processing platform."

              

3PEA INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEET

SEPTEMBER 30, 2012 AND DECEMBER 31, 2011


(UNAUDITED)

 
September 30, 2012December 31, 2011
ASSETS
 
Current assets
Cash$202,856$63,826
Cash Restricted4,739,4915,514,661
Accounts Receivable388,0271,250,320
Prepaid Expenses13,7503,970
Other receivables 8,490  -- 
Total current assets5,352,6146,832,777
 
Fixed assets, net118,65788,720
 
Intangible and other assets
Deposits3,5513,551
Intangible assets, net 287,871  171,775 
 
Total assets$5,762,693 $7,096,823 
 
LIABILITIES AND STOCKHOLDERS' DEFICIT
 
Current liabilities
Accounts payable and accrued liabilities$904,952$2,001,047
Customer card funding4,739,4915,514,661
Notes payable- related parties538,000538,000
Convertible note payable10,00010,000
Notes payable 244,400  1,943,900 
Total current liabilities6,436,84310,007,608
 
 
Total liabilities6,436,84310,007,608
 
Stockholders' deficit

Common stock; $0.001 par value; 150,000,000 shares authorized, 38,860,891 and 35,250,391 issued and outstanding at September 30, 2012 and December 31, 2011, respectively

38,86135,250
Additional paid-in capital5,536,7694,975,686
Treasury stock at cost, 303,450 shares(150,000)(150,000)
Accumulated deficit (6,159,952) (7,829,104)
Total 3Pea International, Inc.'s stockholders' deficit(734,322)(2,968,168)
Noncontrolling interest 60,172  57,383 
Total stockholders' deficit (674,150) (2,910,785)
 
Total liabilities and stockholders' deficit$5,762,693$7,096,823
 
 
     

3PEA INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011


(UNAUDITED)

 
For the three months ended Sept 30,
2012          2011
Revenues$622,368$278,009
Cost of revenues 307,307  90,050 
Gross profit 315,061  187,959 
 
Operating expenses
Depreciation and amortization15,65410,603
Selling, general and administrative 191,549  129,606 
Total operating expenses 207,203  140,209 
 
Income (loss) from operations 107,858  47,750 
 
Other income (expense)
Interest expense(16,248)(15,986)
Gain on debt extinguishment 23,377  -- 
Total other income (expense) 7,129  (15,986)
 
Income before provision for income taxes and noncontrolling interest114,98731,764
Provision for income taxes --  -- 
Net income before noncontrolling interest114,98731,764
Net (income) loss attributable to the noncontrolling interest (2,796) 3 
Net income attributable to 3Pea International, Inc.$112,191 $31,767 
 
Net income per common share - basic 0.00  0.00 
Net income per common share - fully diluted 0.00  0.00 
 
Weighted average common shares outstanding - basic 38,817,208  35,249,122 
Weighted average common shares outstanding - fully diluted 38,817,208  35,249,122 
 
 
     

3PEA INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011


(UNAUDITED)

 
For the nine months ended Sept 30,
2012           2011
 
Revenues$4,655,964$1,880,610
Cost of revenues 3,562,376  1,273,211 
Gross profit 1,093,588  607,399 
 
Operating expenses
Depreciation and amortization44,52934,126
Selling, general and administrative 488,676  421,790 
Total operating expenses 533,205  455,916 
Income from operations 560,383  151,483 
 
Other income (expense)
Interest expense(47,874)(47,642)
Gain on debt extinguishment 1,159,432  
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