- - Updates 2010 Full Year Guidance - -
- - Introduces Preliminary Outlook for Full Year 2011; Robust First Half
2011 Partner Pipeline - -
- - Announces Board Approval of Share Consolidation - -
- - NASDAQ Listing Process Underway - -
TORONTO, Jan. 27 /CNW/ - Points International Ltd. (TSX: PTS; OTCBB:
PTSEF), the owner and operator of Points.com, the world's leading reward program management web site, today
announced a business update, including updated full year 2010 financial
guidance, preliminary financial guidance for 2011 and an update on the
Company's previously announced share consolidation. All dollar figures
are in US Dollars.
The Company is updating its guidance for the year ended December 31,
2010 as follows:
For the twelve months ended December 31, 2010, the Company anticipates
revenues of approximately $95 million, which is at the high-end of the
Company's previous guidance range of $85 million to $95 million, and
represents year-over-year anticipated revenue growth of approximately
EBITDA1 margin for the full year of 2010 is expected to be in the range of 3.0%
to 3.5% of revenue.
Net income, which is expected to be positive on a full year basis, is
forecasted to increase significantly year-over-year.
Points International cautions that any preliminary financial results are
unaudited and based on the best information currently available and are
subject to completion of its financial statements for the fiscal 2010
fourth quarter and full year. Points International currently expects to
release its full results for the fourth quarter and full year 2010 on
or before March 15, 2011.
Preliminary 2011 Guidance
The Company is initiating its financial guidance for the year ended
December 31, 2011, as follows:
Revenue is expected to be in the range of $120 million to $130 million,
representing a 26% to 37% year-over-year increase from the Company's
2010 estimated revenues of $95 million
EBITDA is expected to be in the range of $5 million to $8 million
MacLean added, "Looking to 2011, we are optimistic about our prospects.
In addition to expecting revenue growth of approximately 26% to 37%, we
are forecasting meaningful EBITDA profitability. This profitable
growth is expected to be driven primarily from the expansion of our
core Loyalty Currency Services business through the addition of new
partnerships as well as increased participation among our existing
partnerships. We also look forward to the continued expansion of our Points.com consumer portal, which following the initial launch in the third
quarter, demonstrated increased traffic levels and improved transaction
conversion rates in the fourth quarter of 2010."
MacLean added, "Looking to the first half of 2011, our partner pipeline
remains robust. We currently expect over 20 new product deployments on
a white label and branded basis on the Points.com portal, which we
expect to contribute to our anticipated improved results."
The Company announced today that its Board of Directors has approved a
share consolidation of its common shares through a one-for-ten reverse
split. Shareholders previously approved the consolidation with over
90% of the votes cast in favour at a special meeting held on October
26, 2010. The share consolidation, which is subject to standard
clearance by the TSX, is expected to be completed within 10 business
days. Following the share consolidation, the Company expects to have
approximately 15.0 million common shares issued and outstanding. The
Company also announced that it has filed an application to list its
common shares on the NASDAQ Capital Market and expects to effect a
NASDAQ listing as soon as possible. The Company's common shares will
continue to be quoted on OTC Markets until such time as the shares may
be listed on the NASDAQ Capital Market.
"Given our strong anticipated results for the 2010 fiscal year and our
positive preliminary outlook for 2011, we believe we are appropriately
positioned to initiate our planned share consolidation," said CEO Rob
MacLean. "Effecting the share consolidation is consistent with our
objective of obtaining a NASDAQ listing and increasing Points' reach to
a broader universe of institutional investors. We also believe a lower
share count will better reflect our future earnings performance on a
per share basis. Over the past twelve months, Points has delivered
significantly strengthened financial results, characterized by
sequential revenue growth, enhanced gross margins and expanded
profitability. Based on our strong operational and financial
performance to-date, and our preliminary performance expectations for
the coming year, we are increasingly confident in our business strategy
and growth prospects. We look forward to the opportunity to demonstrate
our improving fundamentals to a wider audience."
Information for Shareholders
Upon execution, Points' common shareholders will receive one new common
share for every ten shares held. Registered holders of Points common
shares will receive a letter of transmittal shortly after the effective
date with instructions for the exchange of common share certificates.
No fractional shares will be issued as a result of the share
consolidation, and in the event that a shareholder would otherwise be
entitled to receive a fractional share, such fraction will be rounded
down to the nearest whole number. Computershare Trust Company of Canada
will act as the transfer agent, and can be contacted at
(1-800-564-6253) with any questions.
Shareholders with shares in brokerage accounts will be contacted by
their brokers with instructions.
About Points International Ltd
Points International Ltd. is the owner and operator of Points.com, the
world's leading reward program management web site which was recently
named one of the 28 Best Travel Sites by Kiplinger's. 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, Aeroplan(R),
AsiaMiles(TM), British Airways Executive Club, Delta SkyMiles(R) and
InterContinental Hotels Group's Priority Club(R) Rewards. Redemption
partners include Amazon.com(R) and Starbucks. For more information,
Caution Regarding Forward-Looking Statements
This press release contains or incorporates forward-looking statements
within the meaning of the United States Private Securities Litigation
Reform Act of 1995, as amended, and forward-looking information within
the meaning of Canadian securities legislation (collectively "forward-looking statements"). These forward-looking statements including the Company's expected
NASDAQ listing, the updated financial outlook for 2010 and the
preliminary financial outlook for the 2011 fiscal year. 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, such statements are not
guarantees of future performance and are subject to important risks and
uncertainties that are difficult to predict. Certain material
assumptions or estimates are applied in making forward-looking
statements, and may not prove to be correct. In particular, there can
be no guarantee that the NASDAQ will approve the Company's listing
application or that the share consolidation will result in the share
price required to qualify for listing on the NASDAQ Capital Market.
The financial outlooks herein assume we will be able to generate new
business from our pipeline at expected margins, our in-market and newly
launched products and services will perform in a manner consistent with
the Company's past experience, and we will be able to contain costs and
realize operational efficiencies from our upgraded technology platform.
Other important risk factors that could cause actual results to
differ materially include the risk factors discussed in Points' annual
information form, Form-20-F, annual and interim management's discussion
and analysis, and annual and interim financial statements and the notes
thereto. These documents are available at www.sedar.com and www.sec.gov.
The forward-looking statements contained in this press release are made
as at the date of this release and, accordingly, are subject to change
after such date. Except as required by law, Points does not undertake
any obligation to update or revise any forward-looking statements made
or incorporated in this press release, whether as a result of new
information, future events or otherwise.
1 EBITDA (Earnings (loss) before interest, taxes, amortization, foreign
exchange, impairment and restructuring) is considered by management to
be an integral measure of performance. EBITDA is not a recognized
measure under generally accepted accounting principles.
SOURCE Points International Ltd.
For further information:
Laura Foster / Andrew Greenebaum