TORONTO, May 27, 2015 /CNW/ - VersaPay Corporation (TSXV: VPY) ("VersaPay" or the "Company"), a leading provider of cloud-based invoicing, accounts receivable management and payment solutions, reported first quarter (Q1) financial results for the three month period ended March 31, 2015.
"While we saw some softness in our POS Merchant Services results due to seasonal factors, we made solid progress piloting ARC™ with our first customers," said Craig O'Neill, CEO of VersaPay. "With over 1,200 counterparties on the platform and transaction volumes of over half a million dollars in the quarter, we were able to gather very compelling evidence that ARC™ delivers a major improvement in accounts receivable for businesses of many shapes and sizes. As a result we are more confident than ever that ARC™ will drive significant growth for the Company, and we expect to become an industry leader in the business-to-business integrated payments space."
- Total revenue for Q1 2015 increased by 2% to $1.24 million, compared to $1.21 million in Q1 2014. The moderate year-over-year improvement was driven primarily by growth in VersaPay Solutions revenues, which offset a seasonal decline in the Company's POS Merchant Services revenues.
- POS Merchant Services revenue for Q1 2015 decreased by 3% to $1.08 million compared to $1.12 million in Q1 2014.
- VersaPay Solutions revenue for Q1 2015 increased by 62% to $0.16 million compared to $0.10 million in Q1 2014.
- Gross margin percentages for the three month period ended March 31, 2015 were 60.0%, compared to 63.0% in Q1 2014.
- Cash operating expense (excluding non-cash operating items) increased 40% to $1.82 million in Q1 2015 from $1.30 million in Q1 2014. The increase reflects the Company's strategy of building the VersaPay Solutions business.
- Adjusted EBITDA(1) of $(1.09) million in Q1 2015, compared to ($0.50) million in Q1 2014, in keeping with the Company's plans to invest in the VersaPay Solutions business.
- Total comprehensive loss for Q1 2015 was $(1.20) million compared to a loss of $(0.82) million for Q1 2014, in keeping with the Company's plans to invest in the VersaPay Solutions business.
- As at March 31, 2015, the Company had cash on hand of $2.07 million compared to $3.00 million as at December 31, 2014.
(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 quarter ended March 31, 2015 for further information on the Company's use of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net earnings.
- During the quarter, VersaPay successfully implemented ARC™, with Metroland Media Group, Ontario's largest and most successful community newspaper publisher.
- Subsequent to the quarter, the Company signed British Columbia based Mister Tire as a new ARC customer.
- Subsequent to the quarter, VersaPay announced that Chicago-based LoadDelivered Logistics became a new adopter of the Company's ARC software-as-a-service solution.
- Subsequent to the quarter, the Company announced a $4 million bought-deal private placement financing and completed an over-subscribed deal for a total gross proceeds of approximately $4.8 million.
The Company will hold its first quarter conference call on Thursday, May 28, 2015, at 10:00am EDT. A question and answer session will follow the corporate update.
CONFERENCE CALL DETAILS
Date: Thursday, May 28, 2015
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local – Toronto (+1) 416 764 8609
Local – Vancouver (+1) 778 383 7417
Toll Free - North America (+1) 888 390 0605
Conference ID: 56098627
Recording Playback Numbers:
Toronto (+1) 416 764 8677
Toll Free - North America (+1) 888 390 0541
Expiry Date: Thursday, June 4, 2015 11:59pm
A live audio webcast and archive of the conference call will be available by visiting the Company's website at www.versapay.com/investors/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. VersaPay is headquartered in Toronto, Canada and also has operations in Montreal and New York.
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.
SOURCE VersaPay Corporation
Image with caption: "VersaPay Corporation Logo (CNW Group/VersaPay Corporation)". Image available at: http://photos.newswire.ca/images/download/20150527_C8883_PHOTO_EN_17107.jpg
For further information: David CW Chan, Chief Financial Officer, VersaPay Corporation, 647-258-9475, [email protected]; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, [email protected]