LML Payment Systems Inc. reports first quarter revenues were $2,145,545, an increase of $2,055,392 or 2,280% compared to revenues for the corresponding period for the previous year. Operating income was $403,196, an increase of $467,095 or 730% compared to an operating loss of ($63,899) for the corresponding period for the previous year. Sales and administrative expenses were $673,308, an increase of $478,237 or 245%, compared to $195,071 for the corresponding period for the previous year. The increase in revenues for the period was primarily attributable to the consolidated financial results of wholly-owned subsidiaries CF Data Corp. and Check Center, both of which were recently acquired by the Corporation.
There was a loss before interest, tax, depreciation and amortization (“EBITDA”) of ($52,204) or ($0.00) per share, compared to an EBITDA loss of ($267,445) or ($0.02) per share for the corresponding period for the previous year. Interest expenses were $82,048. Non-cash amortization expenses of $425,246 were primarily attributable to recent corporate acquisitions. There was a net loss of ($559,498) or ($0.04) per share compared to a net loss of ($433,149) or ($0.04) per share for the corresponding period for the previous year.
During the quarter, the Corporation retired $1,201,117 of long term debt. At the end of the quarter, the Corporation had working capital of $13,561,503 compared to a working capital deficiency of ($1,137,132) for the corresponding period for the previous year. The Corporation had cash and short term investments on hand of $14,393,577 at the end of the quarter.
The Corporation also announces subsidiary, ChequeMARK, Inc. has relocated its Jacksonville, Florida offices to Dallas, Texas where the Corporation presently maintains offices through subsidiaries CF Data Corp. and Check Technologies(TM) Inc.
Subsequent to the quarter end, the Corporation announced the acquisition of Phoenix EPS, Inc., a company that engineers and markets host-based software products that provide centralized gateway services for electronic payment authorization traffic between store registers and authorization networks. Phoenix EPS’ flagship product REPS (Retail Electronic Payment System) provides real-time transaction monitoring, authorization and selective routing of debit card, credit card, EBT and check verification transactions. Phoenix EPS plans to incorporate the Corporation’s check verification, Electronic Check Conversion (ECC), Electronic Check Re-presentment (RCK) and traditional check collection modules into the REPS IBM OS/390 platform. The Corporation is presently establishing a new primary data processing center in Phoenix, Arizona with plans to augment the existing processing facilities in Dallas, Texas to form a fully redundant secondary data center. “We plan on making significant investments in these facilities,” said President and CEO, Patrick H. Gaines.
“Overall, we are pleased with our progress. We believe these first quarter results indicate we are moving in the right direction. Phoenix EPS gives us strength and technical capabilities we never had before. Our challenge now is to combine these capabilities with our existing services. Successful integration, prudent capital investment, coupled with the advantages afforded by our expanding intellectual property estate, should position us well for electronic transaction processing, particularly electronic check transactions,” said Gaines.
LML Payment Systems is a financial payment processor specializing in providing end-to-end check processing solutions for national, regional and local retail merchants. The Corporation’s processing services include traditional check verification and collection along with electronic processing services including Electronic Check Re-presentment (whereby returned paper checks are represented for payment electronically) and Electronic Check Conversion (whereby paper checks are converted into electronic transactions right at the point of sale). The Corporation’s intellectual property estate will include a recently allowed patent application regarding internet checking transactions, in addition to U.S. Patent No. 5,484,988. U.S. Patent No. 5,484,988, describes a “Checkwriting point of sale system,” which, through a centralized database and authorization system, is capable of providing and administering various electronic payment services for customers and businesses.Details