Welcome!

News Feed Item

VersaPay Reports Q1 2014 Results

TORONTO, ONTARIO -- (Marketwired) -- 05/28/14 -- VersaPay Corporation (TSX VENTURE:VPY) ("VersaPay" or the "Company"), a leading provider of cloud-based payment solutions, is pleased to report financial results for the first quarter of 2014. Revenue for Q1 2014 grew to $4.3 million from $4.1 million in the previous year. Revenue growth occurred across both of the company's operating units, the POS Merchant Services business and the VersaPay Solutions business.

Q1 2014 Highlights:


--  Completed a $5 million bought-deal financing in order to further develop
    and market its Arc(TM) electronic invoice presentment and payment
    software and its ArcPay(TM) electronic payments service 
--  WinPak Ltd.'s Winnipeg manufacturing division became a VersaPay
    Solutions customer, selecting the Arc(TM) platform to automate its
    accounts receivable processes 
--  Grew total credit card processing volume to $220 million for Q1 2014
    versus $208 million in Q1 2013 
--  Launched an Arc(TM) direct marketing campaign in Canada and the United
    States that is generating higher than expected levels of interest from
    VersaPay's target market. 

Subsequent to Q1 2014 Highlights:


--  Heartland Payment Systems, the fifth largest payment processor in the
    United States completes integration with Arc(TM) and rolls out reseller
    program to its world class sales distribution network. 

Q1 2014 Financial Summary(1)


----------------------------------------------------------------------------
                                                Three months ended, March 31
                                                ----------------------------
                                                          2014          2013
----------------------------------------------------------------------------
Total Revenue                                     $       4.3M  $       4.1M
----------------------------------------------------------------------------
Cash Operating Expenses(2)                        $       1.3M  $       1.0M
----------------------------------------------------------------------------
Adjusted EBITDA(3)                                $     (0.5)M  $     (0.3)M
----------------------------------------------------------------------------
Net Loss                                          $     (0.8)M  $     (0.3)M
----------------------------------------------------------------------------
                                                              March 31, 2014
----------------------------------------------------------------------------
Cash                                                            $      5.4 M
----------------------------------------------------------------------------
Notes:                                                                      
1   The unaudited condensed interim consolidated financial statements for   
    the three months ended March 31, 2014 and the related Management's      
    Discussion and Analysis for the period will be available on the         
    Company's website at www.versapay.com and on SEDAR at www.sedar.com.    
2   Cash operating expense is defined as operating expense excluding        
    depreciation, amortization and share-based payments.                    
3   Adjusted EBITDA is defined as earnings before interest, taxes,          
    depreciation, amortization, share-based payments, and other income. See 
    table A below.                                                          

"Q1 saw the realization of several key milestones for the company," commented Craig O'Neill, VersaPay's CEO. "In launching our go-to-market plan for Arc(TM), securing financing to fund our growth plans, significantly strengthening our R&D team, and implementing our first major Arc(TM) partnership with Heartland, we have made solid progress towards our objectives for the year. In addition, we are very pleased with the expanding sales pipeline we are witnessing in both businesses, Solutions and POS. We expect this trend to continue as we increase our sales and marketing investment and as our strategic partners, Heartland Payment Systems in the U.S. and TD Merchant Services in Canada, gain market traction."

Q1 2014 Financial Review

Total revenues for Q1 2014 increased 5% to $4.3 million from $4.1 million in Q1 2013. The year-over-year improvement was driven primarily by growth in the Company's transaction processing fees.

Cash operating expense (excluding amortization and share-based payments) increased 22% to $1.3 million from $1.1 million in Q1 2014 from the same period in 2013.

Adjusted EBITDA for Q1 2014 was $(0.5) million, compared to $(0.3) million in Q1 2013. Loss from continuing operations for Q1 2014 was $(0.8) million. This compares to a loss from continuing operations of $(0.3) million for Q1 2013.

Table A


----------------------------------------------------------------------------
                                               Three months ended, March 31 
                                                        2014           2013 
                                                           $              $ 
----------------------------------------------------------------------------
Adjusted EBITDA(1)                                  (504,246)      (251,622)
Share based payments                                (260,016)       (61,172)
Interest expense                                     (43,145)       (39,810)
Amortization                                         (16,643)       (36,615)
Other income                                               -         62,746 
----------------------------------------------------------------------------
Net Loss                                            (824,050)      (326,473)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Notes:                                                                      
1   Adjusted EBITDA is defined as earnings before interest, taxes,          
    depreciation, amortization, share-based payments, and other income.     

About VersaPay

VersaPay is a financial technology company that delivers payment solutions for businesses. Serving more than 2,500 customers, VersaPay, together with its partners, provides the hardware, technology, infrastructure and support services to enable businesses of all types to accept and process electronic payments. In addition, the Company's cloud-based invoice presentment and payment platform facilitates the efficient exchange of documents and payments between suppliers and customers. VersaPay is headquartered in Toronto, Canada and has operations in Montreal and New York.

More information about VersaPay can be found at www.versapay.com.

Forward-Looking and Other Cautionary Statements

This news release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company's current expectations. When used in this news release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology, are intended to identify forward-looking statements and information. Such statements and information reflect the current view of the Company with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks relating 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 are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward looking statements if these beliefs, estimates and opinions or other circumstances should change.

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.


----------------------------------------------------------------------------
                                                    March 31,  December 31, 
                                                         2014          2013 
                                                            $             $ 
----------------------------------------------------------------------------
                                                                            
ASSETS                                                                      
Current                                                                     
Cash and cash equivalents                           5,368,355     1,276,410 
Funds held for merchants                            4,644,076     4,063,599 
Receivables                                           450,692       407,949 
Prepaid expenses                                       96,440        33,441 
----------------------------------------------------------------------------
                                                   10,559,563     5,781,399 
Non-current                                                                 
Equipment                                             213,817       194,999 
Intangible assets                                       6,537         7,215 
----------------------------------------------------------------------------
Total Assets                                       10,779,917     5,983,613 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
LIABILITIES                                                                 
Current                                                                     
Accounts payable and accrued liabilities              483,719       289,465 
Funds due to merchants                              4,644,076     4,063,599 
Current portion of obligations under finance                                
 lease                                                 19,889        24,367 
----------------------------------------------------------------------------
                                                    5,147,684     4,377,431 
Non-current                                                                 
Obligations under finance lease, net of current                             
 portion                                                    -         2,953 
Promissory note                                       718,949       698,927 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total Liabilities                                   5,866,633     5,079,311 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
EQUITY                                                                      
Share capital                                      15,504,300    10,812,937 
Reserve                                             2,057,557     1,928,724 
Warrants                                               64,985        52,149 
Deficit                                           (12,713,558)  (11,889,508)
----------------------------------------------------------------------------
Total Equity                                        4,913,284       904,302 
----------------------------------------------------------------------------
Total Liabilities and Equity                       10,779,917     5,983,613 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                                        Three months ended, 
                                                                   March 31 
                                                          2014         2013 
                                                             $            $ 
----------------------------------------------------------------------------
                                                                            
Revenue                                                                     
  VersaPay Solutions                                    97,866       71,049 
  POS Merchant Services                              4,236,944    4,066,924 
----------------------------------------------------------------------------
                                                     4,334,810    4,137,973 
----------------------------------------------------------------------------
                                                                            
Cost of Sales                                                               
  VersaPay Solutions                                    69,984       57,359 
  POS Merchant Services                              3,499,007    3,292,057 
----------------------------------------------------------------------------
                                                     3,568,991    3,349,416 
----------------------------------------------------------------------------
Gross Profit                                           765,819      788,557 
----------------------------------------------------------------------------
                                                                            
Expenses                                                                    
  Depreciation and amortization                         16,643       36,615 
  General and office expenses                          198,761      145,257 
  Interest expense                                      43,145       39,810 
  Marketing and promotion                               96,262       45,137 
  Professional and consulting fees                     221,332      211,472 
  Rent and occupancy                                    74,601       75,112 
  Research and development                             137,543      103,257 
  Salaries and benefits                                541,566      459,944 
  Share based payments                                 260,016       61,172 
----------------------------------------------------------------------------
Total Expenses                                       1,589,869    1,177,776 
----------------------------------------------------------------------------
                                                                            
Other Income                                                 -       62,746 
                                                                            
----------------------------------------------------------------------------
Net Loss and Comprehensive Loss for the Period        (824,050)    (326,473)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
----------------------------------------------------------------------------
                                                                            
Loss per share, basic                              $     (0.04) $     (0.02)
                                                                            
Weighted average number of common shares                                    
 outstanding, basic                                 18,943,216   15,367,770 
                                                                            
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                        Issued                                        Total 
                       Capital    Reserve  Warrants      Deficit     Equity 
                             $          $         $            $          $ 
----------------------------------------------------------------------------
As at December 31,                                                          
 2012                9,981,720  1,497,517   372,260  (10,778,860) 1,072,637 
Net loss for the                                                            
 period                      -          -         -     (326,473)  (326,473)
Shares Issued                -          -         -            -          - 
Exercise of options     15,063     (4,130)        -            -     10,933 
Share based                                                                 
 payments                    -     61,172         -            -     61,172 
Warrants expired             -          -         -            -          - 
----------------------------------------------------------------------------
At March 31, 2013    9,996,783  1,554,559   372,260  (11,105,333)   818,269 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
----------------------------------------------------------------------------
                        Issued                                        Total 
                       Capital    Reserve  Warrants      Deficit     Equity 
                             $          $         $            $          $ 
----------------------------------------------------------------------------
At December 31,                                                             
 2013               10,812,937  1,928,724    52,149  (11,889,508)   904,302 
Net loss for the                                                            
 period                      -          -         -     (824,050)  (824,050)
Shares Issued        4,367,337          -    55,453            -  4,422,790 
Exercise of options          -          -         -            -          - 
Exercise of                                                                 
 warrants              150,226     42,617   (42,617)           -    150,226 
Share based                                                                 
 payments              173,800     86,216         -            -    260,016 
Warrants expired             -          -         -            -          - 
----------------------------------------------------------------------------
At March 31, 2014   15,504,300  2,057,557    64,985  (12,713,558) 4,913,284 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                                         Three months ended 
                                                                  March 31, 
                                                          2014         2013 
                                                             $            $ 
----------------------------------------------------------------------------
                                                                            
Cash Provided By (Used In) Operating Activities                             
  Net loss for the period                             (824,050)    (326,473)
    Items not affecting cash:                                               
    Depreciation of equipment                           15,965       21,977 
    Amortization of intangible assets                      678       14,638 
    Interest accreted on promissory note                20,022       15,618 
    Share based payments                               260,016       61,172 
                                                                            
  Change in non-cash working capital items                                  
    Receivables                                        (42,743)     (50,591)
    Prepaid expenses                                   (62,999)     (10,431)
    Accounts payable and accrued liabilities           194,254       29,012 
----------------------------------------------------------------------------
                                                      (438,857)    (245,078)
                                                                            
Cash Provided By (Used in) in Investing Activities                          
  Acquisition of equipment                             (34,783)        (660)
----------------------------------------------------------------------------
                                                       (34,783)        (660)
                                                                            
Cash Provided by (Used In) Financing Activities                             
  Issuance of common shares, net of issuance costs   4,573,016       10,933 
  Finance lease payments                                (7,431)     (11,718)
----------------------------------------------------------------------------
                                                     4,565,585         (785)
                                                                            
Increase (decrease) in cash and cash equivalents     4,091,945     (246,523)
                                                                            
Cash and cash equivalents, beginning of period       1,276,410    1,461,388 
                                                                            
----------------------------------------------------------------------------
Cash and cash equivalents, end of period             5,368,355    1,214,865 
----------------------------------------------------------------------------

Cash and cash equivalents consist of the following:


----------------------------------------------------------------------------
                                                          2014          2013
                                                             $             $
----------------------------------------------------------------------------
Cash at bank and in hand                             4,882,478       357,154
Demand deposits                                        485,877       857,711
----------------------------------------------------------------------------
                                                     5,368,355     1,214,865
----------------------------------------------------------------------------

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, will explore the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences betwee...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
SYS-CON Events announced today BZ Media LLC has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and Commercial Drone markets.
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
The pace of innovation, vendor lock-in, production sustainability, cost-effectiveness, and managing risk… In his session at 18th Cloud Expo, Dan Choquette, Founder of RackN, will discuss how CIOs are challenged finding the balance of finding the right tools, technology and operational model that serves the business the best. He will discuss how clouds, open source software and infrastructure solutions have benefits but also drawbacks and how workload and operational portability between vendors...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
Cloud computing changed data analytics for good. It enabled companies to drastically decrease resources and architecture previously assigned with business intelligence departments. It also enabled laymen to run advanced business analytics. Cloud was also the architecture of choice for storing and processing big data. Data piling is a continuous process, which is going to explode with emerging Internet of Things concept. Answer to this issue developers found in new concept called fog computing. ...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...