Toronto, ON – August 17, 2017 – VersaPay Corporation (TSXV: VPY) (“VersaPay” or the “Company”), a leading provider of cloud-based invoicing, accounts receivable management and payment solutions, today announced second quarter (“Q2”) financial results for the three and six months ended June 30, 2017. “We’re very pleased with the progress we’ve made this quarter,” said Craig O’Neill, CEO of VersaPay. “We formally announced our partnership with the Royal Bank of Canada to white label ARCTM to RBC’s business clients, and we signed our largest client to-date, Livingston International. We also achieved strong new sales in the quarter and we reached an important milestone in our client base, with 100 clients signed and 50,000 end-customers active on the platform. With results like these VersaPay ARCTM is becoming the new standard for A/R automation.”
The following highlights treat the Company’s POS Merchant Services business as a discontinued operation.
- Revenue for Q2 2017 increased by 77.0% to $0.63 million compared to $0.36 million in Q2 2016. Revenue for the six months ended June 30, 2017 increased by 72.1% to $1.12 million compared to $0.65 million in the six months ended June 30, 2016.
- Gross margin percentage for Q2 2017 was 57.3%, compared to 54.0% in Q2 2016. Gross margin percentage for the six months ended June 30, 2017 was 56.9%, compared to 53.6% for the six months ended June 30, 2016.
- Adjusted EBITDA (1) was ($1.79) million in Q2 2017, compared to ($1.14) million in Q2 2016. Adjusted EBITDA (1) was ($3.59) million for the six months ended June 30, 2017, compared to ($2.54) million for the six months ended June 30, 2016, in accordance with the Company’s plans to invest in its software business.
- Net (loss) earnings from discontinued operations was ($9) thousand for the three months ended June 30, 2017, compared to $246 thousand for the three months ended June 30, 2016. Net earnings from discontinued operations was $8.92 million for the six months ended June 30, 2017, compared to $666 thousand for the six months ended June 30, 2016.
- Total comprehensive loss for the three months ended June 30, 2017, was ($1.95) million, compared to a loss of ($1.61) million for the three months ended June 30, 2016. Total comprehensive income for the six months ended June 30, 2017, was $5.10 million, compared to a loss of ($3.12) million due to the large gain from the sale of the Company’s POS Merchant Services businesses.
- Cash operating expense for the six months ended June 30, 2017 increased by 19.1% to $3.92 million compared to $3.29 million for the six months ended June 30, 2016.
- As at June 30, 2017, the Company had cash on hand of $8.10 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 and six months ended June 30, 2017, for further information on the Company’s use of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net earnings.
The Company is pleased to announce the appointment of Eddie Chan as its Chief Technology Officer. In his expanded role, Eddie will have responsibility for product and client solution delivery, as well as client support. Eddie is an accomplished technology executive with over 15 years of career success delivering innovative solutions in several industries including electronic payments. Mathew Roby, VersaPay’s current CTO is leaving the Company to pursue other interests, effective August 25th, 2017.
Conference Call Details:
Date: Friday, August 18, 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: 10556238
Recording Playback Numbers:
Toronto (+1) 416 764 8677
Toll Free – North America (+1) 888 390 0541
Passcode: 556238 #
Expiry Date: Friday, August 25, 2017 11:59 PM
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 Fintech company and leading provider of cloud-based invoice-to-cash solutions, enabling businesses to provide a superior customer experience, get paid faster, streamline financial operations, and dramatically reduce DSO and costs. VersaPay ARC is the new standard in accounts receivable and collections management with a customer self-service environment to view invoices online, collaborate on inquiries and disputes and facilitate secure online payments (EFT/ACH and credit card). Businesses gain access to a suite of powerful tools that enable efficient collections, cash application and real-time insight into accounts receivable. VersaPay ARC automatically reconciles payments and account information through integrations with a wide range of ERPs and accounting software providers. 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:
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
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.