Exhibit 99.1

 

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3PEA Reports Full Year 2017 Financial Results

 

2017 Revenue up 46% to a Record $15.2M; Drives Net Income of $1.8M and Diluted EPS of $0.04

 

HENDERSON, Nev.--(BUSINESS WIRE)-- 3PEA International, Inc. (OTCQB:TPNL), a vertically integrated provider of innovative prepaid card programs and processing services for corporate, consumer and government applications, reported financial results for the fourth quarter and full year ended December 31, 2017.

 

Management Commentary

 

“We are very pleased with our 2017 results. We recorded record revenue, increased our cardholder base significantly, and increased our net profits,” said Mark Newcomer, Chief Executive Officer, 3PEA International. “We are executing on our strategy focused on expanding both the PaySign brand and our cardholder base in existing markets as we continue to build our sales team. In 2017, there were over 1,550,000 PaySign cardholders nationwide. We are extremely optimistic as we continue to experience a robust sales pipeline in both new and existing markets.”

 

“2017 was a breakthrough year for 3PEA,” said Brian Polan, Chief Financial Officer, 3PEA International. “The Company successfully grew revenues and net profit, maintained gross margins, increased its cash flow from operations, and continued to operate debt free.”

 

2017 Financial Results

 

Revenues for the year ended December 31, 2017 were $15,234,091, an increase of $4,817,419 compared to the year ended December 31, 2016, when revenues were $10,416,672. The increase in revenue approximating 46% was primarily due to an increase in the number of new corporate incentive prepaid card products and growth within our existing card products.

 

Gross profit in 2017 increased to $6.7 million, or 44.0% of total revenues, compared to $4.5 million, or 43.6% of total revenues in 2016. The Company expects gross profit margins will improve in 2018.

 

Total operating expenses in 2017 were $4.9 million compared to $3.2 million in 2016. The increase was due to increases in selling, general and administrative expenses and depreciation and amortization as we continued to add administrative staff, invest in infrastructure, and build out our Sales, Marketing and Business Development departments.

 

Net income in 2017 was $1.8 million, or $0.04 per diluted share, compared to net income of $1.4 million, or $0.03 per share in 2016.

 

 

 

 

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Company Update

 

In 2018, the Company’s revenue focus will be to increase our footprint in our existing markets, expand our product and services offerings to existing cardholders, while aggressively targeting new, high margin business in new markets and geographies. Recent investments in sales and marketing have resulted in the most robust sales pipeline in the company’s history. For 2018, the Company believes it will experience growth rates comparable to, or better than, those experienced in 2017 as a result of growth in our existing card products and the expected addition of new card products in various market verticals. The Company expects gross profit margins to see improvement in 2018. As of December 31, 2017, the Company had over 1,550,000 PaySign Cardholders participating in 205 card products and continues to increase the number of card products in its portfolio.

In the first quarter of 2018, The Company has begun taking the necessary steps to meet the various requirements to apply for uplisting to a national exchange.

 

About 3PEA International

 

3PEA International (OTCQB:TPNL) is an experienced and trusted prepaid debit card payment solutions provider as well as an integrated payment processor. Through its PaySign brand, 3PEA designs and develops payment solutions, prepaid card programs, and customized payment services. 3PEA’s corporate incentive prepaid cards are changing the way corporations reward, motivate, and engage their current and potential customers, employees, and agents. 3PEA’s customizable prepaid solutions offer significant cost savings while improving brand recognition and customer loyalty. 3PEA’s customers include healthcare companies, major pharmaceutical companies, large multinationals, prestigious universities, and social media companies. PaySign is a registered trademark of 3PEA Technologies, Inc. in the United States and other countries. For more information visit us at www.3pea.com or follow us on LinkedInTwitter and Facebook.

 

Forward-Looking Statements

 

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. There is no assurance that such statements will prove to be accurate, and actual results and future events could differ materially. 3PEA undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise.

 

 

 

 

 

 

 

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3PEA INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME

FOR THE TWELVE MONTHS ENDED DECEMBER 30, 2017 AND 2016

(AUDITED)

         

 

   For the year ended   For the year ended 
   December 31, 2017   December 31, 2016 
Revenues  $15,234,091   $10,416,672 
           
Cost of revenues   8,534,272    5,879,238 
           
Gross profit   6,699,819    4,537,434 
           
Operating expenses          
Depreciation and amortization   876,191    572,320 
Selling, general and administrative   4,055,836    2,606,505 
Total operating expenses   4,932,027    3,178,825 
           
Income from operations   1,767,792    1,358,609 
           
Other income (expense)          
Other income   55,541    16,149 
Interest expense   (31,623)   (77,107)
Total other income (expense)   23,918    (60,958)
           
Income before noncontrolling interest   1,791,710    1,297,651 
Provision for income taxes   6,000     
           
Net income before noncontrolling interest   1,785,710    1,297,651 
Net loss attributable to the noncontrolling interest   5,431    103,148 
           
Net income attributable to 3PEA International, Inc.  $1,791,141   $1,400,799 
           
Net income per common share - basic  $0.04   $0.03 
Net income per common share - fully diluted  $0.04   $0.03 
           
Weighted average common shares outstanding - basic   43,397,477    42,875,519 
Weighted average common shares outstanding - fully diluted   44,934,977    43,867,228 
           

 

 

 

 

 

 

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3PEA INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2017 AND 2016

(AUDITED)

         

   December 31,   December 31, 
   2017   2016 
ASSETS          
Current assets          
Cash  $2,748,313   $1,631,943 
Restricted Cash   14,416,444    10,002,505 
Accounts Receivable   165,523    110,269 
Prepaid Expenses and other current assets   572,789    270,634 
Total current assets   17,903,069    12,015,351 
           
Fixed assets, net   854,402    300,761 
           
Intangible and other assets          
Deposits   5,551    5,551 
Intangible assets, net   1,639,557    1,550,044 
           
Total assets  $20,402,579   $13,871,707 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
Current liabilities          
Accounts payable and accrued liabilities  $1,145,083   $765,596 
Customer card funding   14,416,444    10,002,505 
Legal settlement payable - current portion       254,900 
Notes payable       124,168 
Total current liabilities   15,561,527    11,147,169 
           
Long-term liabilities          
Notes Payable       27,892 
Total long-term liabilities       27,892 
           
Total liabilities   15,561,527    11,175,061 
           
Stockholders' equity          
Common stock: $0.001 par value; 150,000,000 shares authorized, 43,670,765 and 43,185,765 issued and outstanding at December 31, 2017 and December 31, 2016, respectively   43,671    43,186 
Additional paid-in capital   7,155,970    6,797,759 
Treasury stock at cost, 303,450 shares and 303,450 shares, December 31, 2017 and December 31, 2016, respectively   (150,000)   (150,000)
Accumulated deficit   (2,008,472)   (3,799,613)
Total 3PEA International, Inc.'s stockholders' equity   5,041,169    2,891,332 
Non-controlling interest   (200,117)   (194,686)
Total stockholders' equity   4,841,052    2,696,646 
           
Total liabilities and stockholders' equity  $20,402,579   $13,871,707 

 

 

           

Contacts

3PEA International, Inc.
Brian Polan, 1-702-749-7234
Chief Financial Officer
bpolan@3pea.com
www.3pea.com

Source: 3PEA International, Inc.

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The following information was filed by 3Pea International, Inc. (TPNL) on Wednesday, March 28, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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