Toronto, ON – May 23, 2017 – VersaPay Corporation (TSXV: VPY) (“VersaPay” or the “Company”), a leading provider of cloud-based invoicing, accounts receivable management and payment solutions, today announced first quarter (“Q1”) financial results for the three month ended March 31, 2017.
“The first quarter of the year introduced some important firsts for the company,” said Craig O’Neill, CEO of VersaPay. “With the sale of our POS Merchant Services business closing in January, VersaPay began operating as a pure fintech company for the first time. With the launch of our go-to-market plans with top-tier channel partners we introduced the white label version of ARC™ for the first time. As well, I’m pleased to announce that each of our channel partners won their first clients in the quarter. With these significant firsts and the 67% growth in software revenues in the quarter, we are very pleased with our start to 2017.”
The following highlights treat the Company’s POS Merchant Services business as a discontinued operation.
- Revenue for Q1 2017 increased by 66.8% to $0.49 million compared to $0.29 million in Q1 2016.
- Gross margin percentage for Q1 2017 was 56.4%, compared to 53.0% in Q1 2016.
- Adjusted EBITDA(1) was ($1.80) million in Q1 2017, compared to ($1.39) million in Q1 2016, in accordance with the Company’s plans to invest in its software business.
- Net earnings from discontinued operations was $8.92 million for the three months ended March 31, 2017, compared to $420 thousand for the three months ended March 31, 2016.
- Total comprehensive income for the three months ended March 31, 2017 was $7.01 million compared to a loss of ($1.51) million for the three months ended March 31, 2016, due to the large gain from the sale of the Company’s POS Merchant Services businesses.
- Cash operating expense for the three months ended March 31, 2017 increased by 20.4% to $2.16 million compared to $1.89 million for the three months ended March 31, 2016.
- As at March 31, 2017, the Company had cash on hand of $9.43 million compared to $2.75 million as at December 31, 2016.
(1) Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, share-based payments, other income and expense, and other comprehensive income. Adjusted EBITDA is a non-IFRS financial measure which does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. It should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS. Please refer to the Company’s management’s discussion and analysis for the three months ended March 31, 2017 for further information on the Company’s use of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net earnings.
Conference Call Details:
Date: Wednesday, May 24, 2017
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local – Toronto (+1) 416 764 8609
Toll Free – North America (+1) 888 390 0605
Conference ID: 01894928
Recording Playback Numbers:
Toronto (+1) 416 764 8677
Toll Free – North America (+1) 888 390 0541
Passcode: 894928 #
Expiry Date: Wednesday, May 31, 2017 9:00 AM
A live audio webcast and archive of the conference call will be available by visiting the Company’s website at http://www.versapay.com/company/investor-relations/. Please connect at least 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.
VersaPay is a leading cloud-based invoice presentment and payment provider for businesses of all sizes. VersaPay’s ARC software-as-a-service offering allows businesses to easily deliver customized electronic invoices to their customers, to accept credit card and EFT payments and automatically reconcile payments to their ERP and accounting software.
More information about VersaPay can be found on the Company’s website at www.versapay.com or under the Company’s profile on SEDAR at www.sedar.com
For additional information, please contact:
Vice President, Marketing
Virtus Advisory Group Inc.
Forward Looking and Other Cautionary Statements
This news release contains “forward-looking information” which may include, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future. Such forward-looking information is often, but not always, identified by the use of words and phrases such as “plans,” “expects,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates,” or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved.
These forward-looking statements, and any assumptions upon which they are based are made in good faith and reflect our current judgment regarding the direction of our business. Management believes that these assumptions are reasonable. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risks related to the speculative nature of the Company’s business, the Company’s formative stage of development and the Company’s financial position.
Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.