3Pea International, Inc. Reports Record Year End 2012 Results
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 year ended December 31, 2012. Revenues for the year ended December 31, 2012 increased 103% to a record $6,700,388, compared to $3,300,213 for the year ended December 31, 2011. Operating Income increased 106% to a record $574,851 for the year ended December 31, 2012 compared to $278,886 in the year ended December 31, 2011. Net income for the year ended December 31, 2012 increased 743% to $1,816,861, or $.05 per share, compared to $215,186 for the year ended December 31, 2011.
"We are pleased with our performance in 2012, as it was a record year for 3Pea. We generated strong annual results, as we delivered triple digit revenue, operating income and net income growth, and had significant balance sheet improvement," said Arthur De Joya, Chief Financial Officer, 3Pea International. "3Pea has invested in the technology and infrastructure necessary to fuel our recent growth. We believe we are in the process of building the foundation needed to achieve the next stage of corporate growth."
Fiscal Years Ended December 31, 2012 and 2011
Revenues for the year ended December 31, 2012 were $6,700,388, an increase of $3,400,175 compared to the year ended December 31, 2011, when revenues were $3,300,213. The increase in revenue is due to two factors: the first factor being the launch of several new card programs during 2012; and the second factor due to an increase in processing, program management, development, fulfillment and customer service fees compared to the prior year. We expect our revenues to continue to trend upward as the economy improves and as we roll out additional debit card programs utilizing our newest processing platform, diversify our product line and increase the number of support services offered to our customers.
Cost of revenues for the year ended December 31, 2012 were $5,305,359, an increase of $2,902,234 compared to the year ended December 31, 2011, when cost of revenues were $2,403,125. Our costs of revenues have increased primarily due to an increase in transaction processing fees. Cost of revenues constituted approximately 79% and 74% of total revenues in 2012 and 2011, respectively. Cost of revenues is comprised of transaction processing fees, data connectivity and data center expenses, network fees, card production costs, customer service and program management expenses, application integration setup and sales expense.
In the fiscal year ended December 31, 2012, we recorded operating income of $574,851, as compared to an operating income of $278,886 in the fiscal year ended December 31, 2011, and improvement of $295,965.
Other income (expense) for the year ended December 31, 2012 was $1,233,723, an increase in net other income of $1,297,423 compared to the prior year ended December 31, 2011 when other (expense) was $(63,700). The overall increase in net other income (expense) in 2012 is primarily due to a gain on debt extinguishment totaling $1,295,879.
Our net income for the year ended December 31, 2012 was $1,816,861, an increase of $1,610,570 compared to the year ended December 31, 2011, when we recorded a net income of $215,291. The overall change in net income is attributable to the aforementioned factors.
3PEA INTERNATIONAL, INC.
STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
For the year ended
For the year ended
December 31, 2012
December 31, 2011
Cost of revenues
Depreciation and amortization
Selling, general and administrative
Total operating expenses
Income from operations
Other income (expense)
Gain on forgiveness of debts
Total other income (expense)
Income before provision for income taxes and noncontrolling interest
Provision for income taxes
Net income before noncontrolling interest
Net loss attributable to the noncontrolling interest
Net income attributable to 3Pea International, Inc.
Net income per common share - basic and fully diluted
Weighted average common shares outstanding - basic
Weighted average common shares outstanding - fully diluted
3PEA INTERNATIONAL, INC.
DECEMBER 31, 2012 AND 2011
December 31, 2012
Total current assets
Fixed assets, net
Intangible and other assets
Intangible assets, net
LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable and accrued liabilities
Customer card funding
Notes payable- related parties
Convertible note payable
Total current liabilities
Commitments and contingencies
Common stock; $0.001 par value; 150,000,000 shares authorized,
38,911,606 and 35,250,391 issued and outstanding
at December 31, 2012 and December 31, 2011, respectively
Additional paid-in capital
Treasury stock at cost, 303,450 shares
Total 3Pea International, Inc.'s stockholders' deficit
Total stockholders' deficit
Total liabilities and stockholders' deficit
About 3Pea International:
We are a payment solutions company which currently focuses on providing prepaid debit program management and processing services. We provide a card processing platform consisting of proprietary systems and innovative software applications based on the unique needs of our programs. Through this platform, we provide a variety of services including transaction processing, card creation and fulfillment, cardholder enrollment, value loading, cardholder account management, reporting, integrated voice response, and customer service.
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.
KEYWORDS: United States North America Nevada
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