3Pea International Reports Record Third Quarter and Nine Month 2012 Results
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, 2012 | December 31, 2011 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash | $ | 202,856 | $ | 63,826 | ||||||||||||||||
Cash Restricted | 4,739,491 | 5,514,661 | ||||||||||||||||||
Accounts Receivable | 388,027 | 1,250,320 | ||||||||||||||||||
Prepaid Expenses | 13,750 | 3,970 | ||||||||||||||||||
Other receivables | 8,490 | -- | ||||||||||||||||||
Total current assets | 5,352,614 | 6,832,777 | ||||||||||||||||||
Fixed assets, net | 118,657 | 88,720 | ||||||||||||||||||
Intangible and other assets | ||||||||||||||||||||
Deposits | 3,551 | 3,551 | ||||||||||||||||||
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 funding | 4,739,491 | 5,514,661 | ||||||||||||||||||
Notes payable- related parties | 538,000 | 538,000 | ||||||||||||||||||
Convertible note payable | 10,000 | 10,000 | ||||||||||||||||||
Notes payable | 244,400 | 1,943,900 | ||||||||||||||||||
Total current liabilities | 6,436,843 | 10,007,608 | ||||||||||||||||||
Total liabilities | 6,436,843 | 10,007,608 | ||||||||||||||||||
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 | 38,861 | 35,250 | ||||||||||||||||||
Additional paid-in capital | 5,536,769 | 4,975,686 | ||||||||||||||||||
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 amortization | 15,654 | 10,603 | |||||||||||||||||||
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 interest | 114,987 | 31,764 | |||||||||||||||||||
Provision for income taxes | -- | -- | |||||||||||||||||||
Net income before noncontrolling interest | 114,987 | 31,764 | |||||||||||||||||||
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 amortization | 44,529 | 34,126 | ||||||||||||||||||||
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 | |||||||||||||||||||||
