Points International Raises 2007 Revenue Guidance by More Than 50 Percent and Reports Record Third Quarter Revenue Growth of 159%



    
       Record Revenue and Strong EBITDA(1) Growth Driven by Traction of
             Significant Shift to Principal-Based Relationships

         Global Points Exchange (GPX) To Beta Launch in December 2007

    Third Quarter 2007 Highlights:
    -   Record Revenue of $7.4 Million, up 159% Year-Over-Year
    -   EBITDA(1) Grows $881,000 to $151,000, from a Q306 $730,000 EBITDA(1)
        Loss
    -   Transaction Volume Reached 2.6 Billion Points/Miles, a 39% Annual
        Increase

    Significantly Raising Full Year 2007 Revenue Guidance:
    -   Raising Revenue Guidance to $31.0 - $34.0 Million, up from $21.5 -
        $24.0 Million
    -   Reiterate Expectations for 2007 EBITDA(1) to be Positive for the Year
    

    TORONTO, Nov. 8 /CNW/ - Points International Ltd., "Points" - (OTCBB:
PTSEF, TSX: PTS) - the world's leading loyalty reward solutions provider and
owner of the Points.com portal - today announced results for the third quarter
ended September 30, 2007.
    "While posting record third quarter financial results we have executed on
our strategy by adding a number of new and renewal deals under the principal
model, where Points takes a much more active role in the management of our
partners' loyalty programs. Billions of miles and hundreds of millions of
dollars flow through our platform each year, and the strength of our third
quarter results indicates that Points is unlocking the value of this volume of
loyalty activity from many of the largest loyalty programs in the world," said
Rob MacLean, CEO of Points.
    "Record revenue and a significant EBITDA(1) improvement during the third
quarter mark an important inflection point in our business. These results
demonstrate the positive top and bottom line impact to our financials
resulting from a meaningful shift in a number of our partnerships to the
principal-based model. Recent principal-based deals include an expanded
three-year partnership with longtime partner Delta Airlines and new
partnerships with bmi (British Midland Airways), ATA Airlines and Choice
Hotels. For the past several quarters we have been communicating that we have
been undergoing a fundamental reorientation of our business. Our third quarter
financial and transaction results are evidence that we are successfully
executing on this very positive move to the principal-based model," added Mr.
MacLean.
    Points reported a 159% year-over-year increase in total revenue to a
record $7.4 million in the third quarter driven by new and expanded
principal-based partnerships with leading loyalty program providers around the
world. For the first nine months of 2007, Points grew revenues over 107% from
the prior year period to a record $17.4 million.
    "Points' third quarter financial results would have been even stronger if
not for the ongoing weakening of the U.S. dollar against the Canadian dollar.
Currency effects had a material negative impact on our revenue and EBITDA(1)
results. With the growth and evolution of our business we are evaluating a
range of alternatives to more accurately represent the U.S. denominated-nature
of our business, including starting to report our results in U.S. dollars in
2008," said Anthony Lam, Chief Financial Officer of Points.
    Total revenue was a record $7.4 million for the third quarter of 2007, an
increase of 159% over the $2.8 million reported in the third quarter of 2006,
and up 54% from $4.8 million in the second quarter of 2007. For the first nine
months of 2007, total revenues grew 107% to a record $17.4 million from
$8.4 million in the previous period of 2006. Adjusting total revenue for the
weakening of the U.S. dollar would result in an additional $547,000 in third
quarter revenue, and $390,000 for the nine month period ended September 30,
2007.
    For the third quarter of 2007, principal revenue totaled $4.6 million, an
increase of 544% over $720,000 in the same period last year, and up 96% from
$2.4 million in the second quarter of 2007. Adjusting for the weakened U.S.
dollar against the Canadian dollar, principal revenue in the third quarter
would be higher by an additional $233,000. Commission revenue was
$2.5 million, an increase of 20% over $2.1 million reported in the same period
of last year and up 11% from $2.2 million in the second quarter of 2007.
Adjusting for the weakened U.S. dollar would result in an additional $112,000
in commission revenue in the third quarter versus the second quarter. Interest
income was $251,000, an increase of 409% over $49,000 reported in the same
period of last year and up 49% from $168,000 in the second quarter of 2007.
    Points reported a net loss for the third quarter of 2007 of $1.2 million,
or $0.01 per share, compared to a net loss of $1.9 million, or $0.02 per share
in the previous year period, and versus a net loss of $1.6 million or $0.01
per share, in the second quarter of 2007. Non-cash charges, including foreign
exchange loss, accrued interest, the amortization of property, plant and
equipment, intangible assets, stock option expense and deferred costs,
accounted for $1.5 million of the net loss in the third quarter of 2007. For
the first nine months of 2007, Points reported a net loss of $3.6 million, a
50% improvement over the prior year period loss of $7.3 million for the same
period.
    During the third quarter of 2007, Points reported positive EBITDA(1) of
$151,000 compared to an EBITDA(1) loss of $730,000 in the same period of 2006
and versus an EBITDA(1) loss of $275,000 in the second quarter of 2007.
Adjusting for the weakened U.S. dollar would improve the positive EBITDA(1) by
$131,000 in the third quarter. For the first nine months of 2007, Points
reported positive EBITDA(1) of $193,000 compared to an EBITDA(1) loss of
$3.6 million in the previous year period. These results demonstrate a third
quarter EBITDA(1) improvement of more than $882,000 from the prior year period
and improved EBITDA(1) of approximately $3.8 million from the first nine
months of 2006.

    
    Third Quarter 2007 Business Metrics

    -   Total points/miles transacted during the third quarter increased 39%
        versus last year to 2.6 billion, bringing the total cumulative
        points/miles transacted to 31 billion
    -   The total number of transactions increased 35% versus last year to
        approximately 276,000

    Private Branded Channels
    ------------------------
    -   Total points/miles transacted on products distributed through
        Points' partner channels rose 44% to 2.2 billion bringing the
        cumulative total to 27.4 billion

    Points.com Channel
    ------------------
    -   Over 337 million points were transacted on Points.com, a 14% increase
        versus 2006
    -   Cumulative registered users on Points.com increased 25% year-over-
        year to 1.8 million
    

    Business Outlook

    "We are raising our full year 2007 guidance by approximately $10 million
to a range of $31.0 - $34.0 million. This significant improvement in our
financial outlook is based on the strength of our third quarter results and
the aggregate financial benefit of our successful shift to principal-based
deals with six new and incumbent partners. Additionally, we are reiterating
our forecast for our first year of EBITDA(1) profitability for the year. We
anticipate that we will announce additional strategic partnerships, continued
progress within our various partnership programs and the launch of the beta of
our GPX platform as we close out a very productive 2007," concluded Mr.
MacLean.

    Investor Conference Call

    Points' quarterly conference call with Rob MacLean, Points CEO,
Christopher Barnard, Points President and Anthony Lam, Points CFO, will be
held today at 5:00 p.m. Eastern Time. To participate in the conference call,
investors from the U.S. and Canada should dial (866) 904-6908 ten minutes
prior to the scheduled start time. International callers should dial (416)
915-8329. Points will also offer a live and archived webcast of the conference
call, accessible from the "Investor Relations" section of the company's Web
site at https://www.points.com/static/corporate/investor_overview.html.

    About Points International Ltd.

    Points International Ltd. is the owner and operator of Points.com, the
world's leading reward-program management portal. At Points.com consumers can
Swap, Earn, Buy, Gift, Share and Redeem miles and points from more than 25 of
the world's leading reward programs. Participating programs include American
Airlines AAdvantage(R) program, American Express(R) Membership Rewards(R),
Aeroplan(R), AsiaMiles(TM), Cendant TripRewards(R), Delta SkyMiles(R), Gold
Points Reward Network, InterContinental Hotels Group's Priority Club(R)
Rewards, and S&H greenpoints. Redemption partners include Amazon.com(R) and
Starbucks.
    Website: http://www.points.com

    Safe Harbor Statement

    This press release contains or incorporates forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995, as
amended, and forward-looking information within the meaning of the "safe
harbour" provisions of applicable Canadian provincial securities legislation
(collectively "forward-looking statements"). These forward-looking statements
relate to, among other things, our guidance for 2007 with respect to revenue,
EBITDA, and our objectives, strategic plans and business development goals and
may also include other statements that are predictive in nature or that depend
upon or refer to future events or conditions and can generally be identified
by words such as "will", "may", "expects," "anticipates," "intends," "plans,"
"believes," "estimates" or similar expressions. In addition, any statements
that refer to expectations, projections or other characterizations of future
events or circumstances are forward-looking statements. These statements are
not historical facts but instead represent only Points' expectations,
estimates and projections regarding future events.
    Although Points believes the expectations reflected in such
forward-looking statements are reasonable, the forward-looking statements are
not guarantees of future performance and involve certain risks and
uncertainties that are difficult to predict. Undue reliance should not be
placed on such statements. Certain material factors, assumptions or estimates
are applied in making forward-looking statements. Known and unknown factors
could cause actual results to differ materially from those expressed or
implied in such statements. Important factors that could cause actual results
to differ materially are referred to in the body of this news release and also
include the risks and uncertainties discussed herein, the matters set forth
under "Risks and Uncertainties" contained in Points' Annual Information Form
filed with applicable securities regulators and the factors detailed in
Points' other filings with applicable securities regulators, including the
factors detailed in Points' annual and interim financial statements and the
notes thereto. Readers of this press release are cautioned that
forward-looking statements are not guarantees of future performance.
    Points does not undertake any obligation to update or release any
revisions to these forward-looking statements to reflect events or
circumstances after the date of this news release or to reflect the occurrence
of unanticipated events, except as required by law. All dollar amounts are in
Canadian dollars unless otherwise specified.



    
                          POINTS INTERNATIONAL LTD.
                    UNAUDITED CONSOLIDATED BALANCE SHEETS

                                                  September 30,  December 31,
    AS AT                                                 2007          2006
    -------------------------------------------------------------------------

                                   ASSETS
                                   ------

    CURRENT
      Cash and cash equivalents                   $ 28,036,752  $ 24,689,040
      Accounts receivable                            2,018,987     2,310,253
      Prepaids and sundry assets                     1,957,565     2,124,925
                                                  ------------- -------------
                                                    32,013,304    29,124,218
                                                  ------------- -------------


      PROPERTY, PLANT AND EQUIPMENT                  2,126,158     2,934,238
      GOODWILL AND INTANGIBLE ASSETS                 6,303,172     6,837,155
      DEFERRED COSTS                                   768,557     1,167,331
      FUTURE INCOME TAXES RECOVERABLE                  590,000       590,000
                                                  ------------- -------------
                                                     9,787,887    11,528,724
                                                  ------------- -------------

                                                  $ 41,801,191  $ 40,652,942
                                                  ------------- -------------
                                                  ------------- -------------



                                 LIABILITIES
                                 -----------

    CURRENT
      Accounts payable and accrued liabilities    $  1,834,944  $  3,342,868
      Deposits                                      25,138,405    21,159,193
      Current portion of loan payable                   14,371        33,515
                                                  ------------- -------------
                                                    26,987,720    24,535,576

      LOAN PAYABLE                                           -         5,289
      CONVERTIBLE PREFERRED SHARES                  20,338,646    19,506,279
                                                  ------------- -------------
                                                    47,326,366    44,047,144
                                                  ------------- -------------

                          SHAREHOLDERS'  DEFICIENCY
                          -------------------------

      CAPITAL STOCK                                 45,438,656    43,051,048
      WARRANTS                                          30,668       186,688
      CONTRIBUTED SURPLUS                            7,979,902     8,703,517
      DEFICIT                                      (58,974,401)  (55,335,455)
                                                  ------------- -------------
                                                    (5,525,175)   (3,394,202)
                                                  ------------- -------------

                                                  $ 41,801,191  $ 40,652,942
                                                  ------------- -------------
                                                  ------------- -------------



                          POINTS INTERNATIONAL LTD.

               UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

                             3 Month Period              9 Month Period
                      --------------------------- ---------------------------
    FOR THE PERIODS
     ENDED
     SEPTEMBER 30          2007          2006          2007          2006
    -------------------------------------------------------------------------

    REVENUES
      Principal       $  4,633,171  $    719,794  $  9,233,018  $  2,579,522
      Commission         2,473,098     2,068,930     7,691,164     5,649,831
      Interest income      250,537        49,186       461,387       174,282
                      ------------- ------------- ------------- -------------
    Total Revenues       7,356,806     2,837,910    17,385,569     8,403,635


    GENERAL AND
     ADMINISTRATION
     EXPENSES            7,205,415     3,568,080    17,192,332    12,000,724
                      ------------- ------------- ------------- -------------

    INCOME (LOSS) -
     Before interest,
     amortization and
     other items           151,391      (730,170)      193,237    (3,597,089)
                      ------------- ------------- ------------- -------------

      Foreign exchange
       loss (gain)         300,722        (2,399)      605,676       240,650
      Interest on
       convertible
       debenture                 -             -             -       194,753
      Interest on
       convertible
       preferred shares    277,456       277,456       832,367       832,367
      Capital tax,
       interest and
       loss on
       short-term
       investment          (24,482)       60,564        44,169        71,478
      Amortization of
       property, plant
       and equipment,
       intangible
       assets and
       deferred costs      777,586       821,821     2,349,971     2,353,176
                      ------------- ------------- ------------- -------------

                         1,331,282     1,157,442     3,832,183     3,692,424
                      ------------- ------------- ------------- -------------
    NET LOSS AND
     COMPREHENSIVE
     LOSS             $ (1,179,891) $ (1,887,612) $ (3,638,946) $ (7,289,513)
                      ------------- ------------- ------------- -------------

    LOSS PER SHARE    $      (0.01) $      (0.02) $      (0.03) $      (0.07)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------



                          POINTS INTERNATIONAL LTD.

                 UNAUDITED CONSOLIDATED STATEMENTS OF DEFICIT


                            3 Month Period              9 Month Period
                      --------------------------- ---------------------------
    FOR THE PERIODS
     ENDED
     SEPTEMBER 30          2007          2006          2007          2006
    -------------------------------------------------------------------------
    DEFICIT -
     Beginning of
     the period       $(57,794,510) $(52,830,661) $(55,335,455) $(47,428,760)
    NET LOSS - For
     the period         (1,179,891)   (,887,612)   (3,638,946)   (7,289,513)
                      ------------- ------------- ------------- -------------
    DEFICIT - End
     of the period    $(58,974,401) $(54,718,273) $(58,974,401) $(54,718,273)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------


    (1) EBITDA (Earnings (loss) before interest, amortization and other
        items) is considered by management to be a useful supplemental
        measure of performance. However, EBITDA is not a recognized earnings
        measure under generally accepted accounting principles (GAAP).
    





For further information:

For further information: Anthony Lam, Chief Financial Officer, Points
International Ltd., (416) 596-6382, anthony.lam@points.com; Alex Wellins or
Brinlea Johnson, The Blueshirt Group, (415) 217-7722, alex@blueshirtgroup.com,
brinlea@blueshirtgroup.com

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