Points International Ltd. (TSX: PTS) (Nasdaq: PCOM) (Points or the
Company), the global leader in powering loyalty commerce, is
reporting financial results for the third quarter ended September
30, 2019.
Unless otherwise noted, all comparisons are on a year-over-year
basis and all amounts are in USD. The complete third quarter
Condensed Consolidated Interim Financial Statements and Management
Discussion & Analysis, including segmented results, are
available at www.sedar.com and www.sec.gov.
Third Quarter 2019 Financial Results (vs. Q3 2018 where
applicable)
- Total revenue increased 4% to $98.0 million compared to $94.4
million.
- Gross profit1 increased 12% to $14.0 million compared to $12.6
million.
- Net income was $1.1 million or $0.08 per diluted share,
compared to $1.5 million or $0.10 per diluted share.
- Adjusted EBITDA2 increased 7% to $4.4 million compared to $4.1
million.
Recent Operational Highlights
- Launched LCR Call Centre application for Choice Hotels.
- Extended Points Travel partnership with the AIR MILES Reward
Program and launched a new redemption product, enabling their
loyalty members to use Miles when booking on over 330,000 hotels
across the globe.
- Added Alaska Airlines Mileage Plan as an option on Home
Chef, enabling members the ability to earn miles when they
sign up and make Home Chef purchases.
- Added both Cathays Pacific’s Asia Miles and Aeromexico’s Club
Premier miles to the Citibank thankyou points exchange
program.
- Opened new Dubai office ahead of schedule to support current
and prospective growth in the region.
Management Commentary
“We continued to execute on our strategic initiatives during the
quarter as we balanced appropriate investments with our aggressive
growth plans,” said Rob MacLean, CEO of Points. “Our Loyalty
Currency Retailing segment continues to drive our performance as
both new and existing partners are generating solid results, with
nine of our top ten partners generating double-digit gross profit
growth. We are also building pipeline momentum in Points Travel and
Platform Partners, with new partnerships and upcoming launches
setting the stage for accelerated growth in Q4 and 2020.
“In Points Travel, we expanded our partnership with AIR MILES,
one of Canada’s most recognizable loyalty programs, by adding a
wider range of redemption opportunities that leverage new features
from our platform. The investments we have made to enhance our
marketing technology and capabilities are bearing fruit, and we
look forward to expanding this relationship to further support the
growth of AIR MILES’ loyalty program.
“Looking ahead, we are currently on pace for a record fourth
quarter and expect to accelerate annual growth in 2020 for both
gross profit and adjusted EBITDA. We have one of the strongest
sales pipelines in Company history, and when coupled with the
progress we are making across our key initiatives, we believe we
are approaching an inflection in our business. We remain firmly
committed to and on track for our long-term growth plans, which
will have us generating gross profit in the high-90 million range
by 2022, while more than doubling adjusted EBITDA to the mid-$40
million range.”
Third Quarter 2019 Financial Results
Total revenue in the third quarter of 2019 increased 4% to $98.0
million compared to $94.4 million in the prior year quarter.
Principal revenue increased 4% to $92.0 million compared to $88.7
million, and other partner revenue increased 5% to $6.0 million
compared to $5.7 million.
Gross profit in the third quarter increased 12% to $14.0 million
compared to $12.6 million in the prior year quarter. The increase
was primarily driven by continued strong performance in the Loyalty
Currency Retailing segment.
Adjusted operating expenses3 in the third quarter of 2019 were
$9.9 million compared to $8.7 million in the prior year quarter.
The increase was primarily a result of higher employment costs
associated with the resources added in 2019 to support the
Company’s growth initiatives.
Net income was $1.1 million or $0.08 per diluted share, compared
to $1.5 million or $0.10 per diluted share in the prior year
quarter. The decline was primarily a result of the aforementioned
increase in operating expenses.
Adjusted EBITDA in the third quarter increased 7% to $4.4
million compared to $4.1 million in the prior year quarter.
Effective margin, which is defined as adjusted EBITDA as a
percentage of gross profit, was 31% compared to 33% from the prior
year period.
At September 30, 2019, total funds available, comprised of cash
and cash equivalents together with funds receivable from payment
processors, was $63.4 million compared to $67.6 million at the end
of the second quarter. The decrease is primarily a result of timing
of partner sales and promotions. The Company remains debt free.
During the third quarter, Points repurchased for cancellation
approximately 213,000 common shares at an average price of $11.63
per share through its Automatic Share Purchase Plan in conjunction
with its Normal Course Issuer Bid.
___________________________________1 Gross profit is defined as
total revenue less the direct cost of revenue. Gross profit
is considered by management to be an integral measure of financial
performance and represents the amount of revenues retained by the
Company after incurring direct costs. However, gross profit
is not a recognized measure of profitability under IFRS.2 Adjusted
EBITDA (Earnings before income tax expense, depreciation and
amortization, foreign exchange, finance costs and equity-settled
share-based compensation and other one-time costs or benefits such
as a tax rebate related to prior periods) is considered by
management to be a useful supplemental measure when assessing
financial performance. Management also believes that adjusted
EBITDA is an important indicator of the Company’s ability to
generate liquidity through operating cash flow to fund future
capital expenditures and working capital needs. However,
adjusted EBITDA is not a measure of financial performance under
IFRS and should not be considered a substitute for Net Income,
which we believe to be the most directly comparable IFRS measure.3
Adjusted operating expenses consist of employment expenses
excluding equity-settled share-based compensation, marketing and
communications, technology services and other operating
expenses. Adjusted operating expense is not a measure of
financial performance under IFRS and should not be considered a
substitute for total operating expenses, which we believe to be the
most directly comparable IFRS measure.
2019 Outlook
Points has reiterated its 2019 outlook and expects gross profit
to range between $58.5 million and $64.5 million, reflecting
approximately 9% to 20% growth compared to 2018. Points also
continues to expect adjusted EBITDA to range between $20.5 million
and $23.5 million, reflecting approximately 10% to 26% growth from
2018.
Conference Call
Points will hold a conference call today at 4:30 p.m. Eastern
time to discuss its third quarter 2019 results, followed by a
question-and-answer session.
Date: Wednesday, November 13, 2019Time: 4:30 p.m. Eastern time
(1:30 p.m. Pacific time)Toll-free dial-in number:
1-877-407-0784International dial-in number:
1-201-689-8560Conference ID: 13695694
Please call the conference telephone number 5-10 minutes prior
to the start time, and an operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact Gateway Investor Relations at
1-949-574-3860.
A replay of the conference call will be available after 7:30
p.m. Eastern time on the same day through November 27, 2019.
Toll-free replay number: 1-844-512-2921International replay
number: 1-412-317-6671Replay ID: 13695694
About Points International Ltd.
Points (TSX: PTS) (Nasdaq: PCOM) provides loyalty e-commerce and
technology solutions to the world's top brands to power innovative
services that drive increased loyalty program revenue and member
engagement. The Company has a growing network of nearly 60 global
loyalty programs integrated into its unique Loyalty Commerce
Platform. Points offers three core private or co-branded services:
its Loyalty Currency Retailing service, which retails loyalty
points and miles directly to consumers; its Platform Partners
service, which offers developers transactional access to dozens of
loyalty programs and hundreds of millions of members via a package
of APIs; and its Points Travel service, which helps loyalty
programs increase revenue from hotel bookings and car rentals,
while enabling members to more effectively earn and redeem loyalty
rewards. Points is headquartered in Toronto, with offices in San
Francisco, London and Singapore.
For more information, please visit company.points.com, follow
Points on Twitter (@PointsLoyalty) or read the Points blog. For
Points' financial information, visit investor.points.com.
Caution Regarding Forward-Looking
Statements
This press release contains or incorporates forward-looking
statements within the meaning of United States securities
legislation, and forward-looking information within the meaning of
Canadian securities legislation (collectively, "forward-looking
statements"). These forward-looking statements include, among other
things, our expected performance in the fourth quarter of 2019, our
ability to deliver on our long-term goals for 2022, our ability to
sign and launch new loyalty program partnerships, our ability to
sell additional products and services to existing loyalty program
partner, our core growth strategies, and our guidance for 2019 with
respect to gross profit and adjusted EBITDA. 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 actual results may differ materially from those
expressed or implied in such statements. Undue reliance should not
be placed on such statements. In particular, the financial outlooks
herein assume Points will be able to maintain its existing
contractual relationships and products, that such products continue
to perform in a manner consistent with Points' past experience,
that Points 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. Our ability
to convert our pipeline of prospective partners and products and
cross-sell existing partners is subject to significant risk and
there can be no assurance that we will launch new partners or new
products with existing partners as expected or planned nor can
there be any assurance that Points will be successful in
maintaining its existing contractual relationships or maintaining
existing products with existing partners. Other important risk
factors that could cause actual results to differ materially
include the risk factors discussed in Points' annual information
form, Form 40-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.
Non-GAAP Financial Measures
The Company’s financial statements are prepared in accordance
with International Financial Reporting Standards ("IFRS").
Management uses certain non-GAAP measures, which are defined in the
appropriate sections of this press release, to better assess the
Company’s underlying performance. These measures are reviewed
regularly by management and the Company's Board of Directors in
assessing the Company’s performance and in making decisions about
ongoing operations. In addition, we use certain non-GAAP measures
to determine the components of management compensation. We believe
that these measures are also used by investors as an indicator of
the Company’s operating performance. Readers are cautioned that
these terms are not recognized GAAP measures and do not have a
standardized GAAP meaning under IFRS and should not be construed as
alternatives to IFRS terms, such as net income.
Investor Relations Contact
Sean Mansouri, CFA or Cody SlachGateway Investor
Relations1-949-574-3860IR@points.com
|
|
|
Points International Ltd. |
Key Financial Measures and Schedule of Non-GAAP
Reconciliations |
|
|
|
|
Gross Profit Information[1] |
|
|
|
|
|
|
Expressed in thousands of United States dollars |
|
|
|
For the three months ended |
|
|
|
|
|
Sept 30, 2019 |
Sept 30, 2018 |
Total Revenue |
|
$ |
97,997 |
|
$ |
94,358 |
|
Direct cost of revenue |
|
|
83,949 |
|
|
81,776 |
|
Gross Profit |
|
$ |
14,048 |
|
$ |
12,582 |
|
Gross Margin |
|
|
14 |
% |
|
13 |
% |
|
|
|
|
[1] Gross Profit is defined as total revenues less the direct cost
of revenue. Gross profit is considered by management to be an
integral measure of financial performance and represents the amount
of revenues retained by the Company after incurring direct costs.
However, gross profit is not a recognized measure of profitability
under IFRS. |
|
|
|
|
|
|
|
Points International Ltd. |
|
|
Key Financial Measures and Schedule of Non-GAAP
Reconciliations |
|
|
|
|
Reconciliation of Gross Profit to Contribution
[2] |
|
|
|
|
|
Expressed in thousands of United States dollars |
|
|
|
For the three months ended |
|
|
|
|
|
Sept 30, 2019 |
Sept 30, 2018 |
Gross Profit |
|
$ |
14,048 |
|
$ |
12,582 |
|
Less: |
|
|
|
Direct adjusted operating expenses [3] |
|
6,269 |
|
|
5,269 |
|
Contribution |
|
$ |
7,779 |
|
$ |
7,313 |
|
|
|
|
|
[2] Contribution is defined as Gross profit less direct adjusted
operating expenses. Contribution is considered by Management to be
a useful supplemental measure when assessing financial performance.
Management believes that Contribution is an important indicator of
the Company’s segment profitability. However, Contribution is not a
recognized measure of profitability under IFRS. |
[3] Direct adjusted operating expenses is defined as expenses which
are directly attributable to each operating segment. Direct
adjusted operating expenses is not a measure of financial
performance under IFRS. |
|
|
|
|
|
|
|
Points International Ltd. |
Key Financial Measures and Schedule of Non-GAAP
Reconciliations |
|
|
|
|
Contribution by Line of Business |
|
|
|
|
|
|
Expressed in thousands of United States dollars |
|
|
|
For the three months ended |
|
|
|
|
|
Sept 30, 2019 |
Sept 30, 2018 |
|
|
|
|
Loyalty Currency Retailing |
|
|
Revenue |
|
$ |
95,677 |
|
$ |
91,950 |
|
Gross Profit |
|
|
11,879 |
|
|
10,378 |
|
Direct adjusted operating expenses |
|
3,605 |
|
|
3,048 |
|
Contribution |
|
$ |
8,274 |
|
$ |
7,330 |
|
|
|
|
|
Platform Partners |
|
|
|
Revenue |
|
$ |
1,782 |
|
$ |
1,940 |
|
Gross Profit |
|
|
1,631 |
|
|
1,773 |
|
Direct adjusted operating expenses |
|
964 |
|
|
831 |
|
Contribution |
|
$ |
667 |
|
$ |
942 |
|
|
|
|
|
Points Travel |
|
|
|
Revenue |
|
$ |
538 |
|
$ |
468 |
|
Gross Profit |
|
|
538 |
|
|
431 |
|
Direct adjusted operating expenses |
|
1,700 |
|
|
1,390 |
|
Contribution |
|
$ |
(1,162 |
) |
$ |
(959 |
) |
|
|
|
|
|
|
|
Points International Ltd. |
|
|
Key Financial Measures and Schedule of Non-GAAP
Reconciliations |
|
|
|
|
Reconciliation of Net Income to Adjusted EBITDA
[4] |
|
|
|
|
Expressed in thousands of United States dollars |
|
|
|
For the three months ended |
|
|
|
|
|
Sept 30, 2019 |
Sept 30, 2018 |
|
|
|
|
Net Income |
|
$ |
1,098 |
|
$ |
1,476 |
|
Income tax expense |
|
|
670 |
|
|
693 |
|
Finance costs |
|
|
51 |
|
|
- |
|
Depreciation and amortization |
|
1,131 |
|
|
858 |
|
Foreign exchange loss |
|
254 |
|
|
40 |
|
Equity-settled share-based payment expense |
|
|
1,193 |
|
|
1,054 |
|
Adjusted EBITDA |
|
$ |
4,397 |
|
$ |
4,121 |
|
|
|
|
|
[4] Adjusted EBITDA (Earnings before income tax expense, finance
costs, depreciation and amortization, foreign exchange and
equity-settled share-based payment expense) is considered by
management to be a useful supplemental measure when assessing
financial performance. Management believes that adjusted EBITDA is
an important indicator of the Company’s ability to generate
liquidity through operating cash flow to fund future capital
expenditures and working capital needs. However, adjusted EBITDA is
not a measure of financial performance under IFRS and should not be
considered a substitute for Net Income, which we believe to be the
most directly comparable IFRS measure. |
|
|
|
|
|
|
|
Points International Ltd. |
|
|
Key Financial Measures and Schedule of Non-GAAP
Reconciliations |
|
|
|
|
Reconciliation of Total Operating Expenses to Adjusted
Operating Expenses [5] |
|
|
|
|
Expressed in thousands of United States dollars |
|
|
|
For the three months ended |
|
|
|
|
|
Sept 30, 2019 |
Sept 30, 2018 |
|
|
|
|
Total Operating Expenses |
$ |
12,437 |
|
$ |
10,655 |
|
Subtract (add): |
|
|
|
Depreciation and amortization |
|
1,131 |
|
|
858 |
|
Foreign exchange loss |
|
254 |
|
|
40 |
|
Equity-settled share-based payment expense |
|
|
1,193 |
|
|
1,054 |
|
Adjusted Operating Expenses |
$ |
9,859 |
|
$ |
8,703 |
|
|
|
|
|
[5] Adjusted operating expenses consists of employment expenses
excluding equity-settled share-based payment expense, marketing
& communications, technology services, and other operating
expenses. Adjusted operating expenses is not a measure of financial
performance under IFRS and should not be considered a substitute
for total operating expenses, which we believe to be the most
directly comparable IFRS measure. |
|
|
|
|
|
|
|
Points International Ltd. |
|
|
Condensed Consolidated Interim Statements of Financial
Position |
|
|
|
Expressed in thousands of United States dollars |
|
|
(Unaudited) |
|
|
As at |
September 30,2019 |
December 31,2018[6] |
|
|
|
ASSETS |
|
|
Current assets |
|
|
Cash and cash equivalents |
$ |
54,326 |
|
$ |
69,131 |
|
Restricted cash |
|
- |
|
|
500 |
|
Funds receivable from payment processors |
|
9,111 |
|
|
13,512 |
|
Accounts receivable |
|
20,921 |
|
|
9,318 |
|
Prepaid taxes |
|
181 |
|
|
383 |
|
Prepaid expenses and other assets |
|
3,712 |
|
|
3,618 |
|
Total current assets |
$ |
88,251 |
|
$ |
96,462 |
|
|
|
|
Non-current assets |
|
|
Property and equipment |
|
2,255 |
|
|
2,351 |
|
Right-of-use assets |
|
3,320 |
|
|
- |
|
Intangible assets |
|
12,915 |
|
|
13,952 |
|
Goodwill |
|
7,130 |
|
|
7,130 |
|
Deferred tax assets |
|
2,761 |
|
|
2,645 |
|
Total non-current assets |
$ |
28,381 |
|
$ |
26,078 |
|
Total assets |
$ |
116,632 |
|
$ |
122,540 |
|
|
|
|
LIABILITIES |
|
|
Current liabilities |
|
|
Accounts payable and accrued liabilities |
$ |
11,061 |
|
$ |
9,489 |
|
Income taxes payable |
|
1,851 |
|
|
117 |
|
Payable to loyalty program partners |
|
58,559 |
|
|
69,749 |
|
Current portion of lease liabilities |
|
1,267 |
|
|
- |
|
Current portion of other liabilities |
|
807 |
|
|
1,680 |
|
Total current liabilities |
$ |
73,545 |
|
$ |
81,035 |
|
|
|
|
Non-current liabilities |
|
|
Lease liabilities |
|
2,487 |
|
|
- |
|
Other liabilities |
|
105 |
|
|
495 |
|
Deferred tax liabilities |
|
763 |
|
|
- |
|
Total non-current liabilities |
$ |
3,355 |
|
$ |
495 |
|
Total liabilities |
$ |
76,900 |
|
$ |
81,530 |
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
Share capital |
|
49,176 |
|
|
53,886 |
|
Contributed surplus |
|
- |
|
|
4,446 |
|
Accumulated other comprehensive income (loss) |
|
(74 |
) |
|
(646 |
) |
Accumulated deficit |
|
(9,370 |
) |
|
(16,676 |
) |
Total shareholders’ equity |
$ |
39,732 |
|
$ |
41,010 |
|
Total liabilities and shareholders’ equity |
$ |
116,632 |
|
$ |
122,540 |
|
|
|
|
[6] The Company has initially applied IFRS 16 at January 1, 2019,
using the modified retrospective approach. Under this approach,
comparative information is not restated. |
|
|
|
|
|
|
|
Points International Ltd. |
|
|
|
|
|
Condensed Consolidated Interim Statements of Comprehensive
Income |
|
|
|
|
|
|
|
|
Expressed in thousands of United States dollars, except per share
amounts |
|
|
(Unaudited) |
|
|
|
|
|
|
|
For the three months ended |
For the nine months ended |
|
|
Sept 30, 2019 |
Sept 30, 2018[7] |
Sept 30, 2019 |
Sept 30, 2018[7] |
|
|
|
|
|
|
REVENUE |
|
|
|
|
|
Principal |
|
$ |
92,035 |
|
$ |
88,689 |
|
$ |
276,330 |
|
$ |
263,394 |
|
Other partner revenue |
|
|
5,962 |
|
|
5,669 |
|
|
17,840 |
|
|
17,933 |
|
Total Revenue |
|
$ |
97,997 |
|
$ |
94,358 |
|
$ |
294,170 |
|
$ |
281,327 |
|
Direct cost of revenue |
|
|
83,949 |
|
|
81,776 |
|
|
246,304 |
|
|
241,528 |
|
Gross Profit |
|
$ |
14,048 |
|
$ |
12,582 |
|
$ |
47,866 |
|
$ |
39,799 |
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
|
Employment costs |
|
|
7,887 |
|
|
6,934 |
|
|
23,090 |
|
|
20,698 |
|
Marketing and communications |
|
|
429 |
|
|
308 |
|
|
1,237 |
|
|
1,096 |
|
Technology services |
|
|
652 |
|
|
545 |
|
|
1,928 |
|
|
1,592 |
|
Depreciation and amortization |
|
|
1,131 |
|
|
858 |
|
|
3,399 |
|
|
2,624 |
|
Foreign exchange loss (gain) |
|
|
254 |
|
|
40 |
|
|
408 |
|
|
(33 |
) |
Other operating expenses |
|
|
2,084 |
|
|
1,970 |
|
|
5,557 |
|
|
6,483 |
|
Total Operating Expenses |
|
$ |
12,437 |
|
$ |
10,655 |
|
$ |
35,619 |
|
$ |
32,460 |
|
|
|
|
|
|
|
Finance income |
|
|
(208 |
) |
|
(242 |
) |
|
(727 |
) |
|
(446 |
) |
Finance costs |
|
|
51 |
|
|
- |
|
|
163 |
|
|
- |
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES |
|
$ |
1,768 |
|
$ |
2,169 |
|
$ |
12,811 |
|
$ |
7,785 |
|
|
|
|
|
|
|
Income tax expense |
|
|
670 |
|
|
693 |
|
|
3,680 |
|
|
2,239 |
|
NET INCOME |
|
$ |
1,098 |
|
$ |
1,476 |
|
$ |
9,131 |
|
$ |
5,546 |
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME (LOSS) |
|
|
|
|
|
Items that will subsequently be reclassified to profit or
loss: |
|
|
|
|
|
|
|
Unrealized gain (loss) on foreign exchange derivative designated as
cash flow hedges |
|
|
(259 |
) |
|
205 |
|
|
225 |
|
|
(545 |
) |
Income tax effect |
|
|
68 |
|
|
(54 |
) |
|
(60 |
) |
|
144 |
|
Reclassification to net income of loss (gain) on foreign exchange
derivatives designated as cash flow hedges |
|
|
117 |
|
|
180 |
|
|
525 |
|
|
(141 |
) |
Income tax effect |
|
|
(31 |
) |
|
(48 |
) |
|
(139 |
) |
|
37 |
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
3 |
|
|
- |
|
|
21 |
|
|
- |
|
Other comprehensive
income (loss) for the period, net of income tax |
|
$ |
(102 |
) |
$ |
283 |
|
$ |
572 |
|
$ |
505 |
) |
TOTAL COMPREHENSIVE INCOME |
|
$ |
996 |
|
$ |
1,759 |
|
$ |
9,703 |
|
$ |
5,041 |
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
|
Basic earnings per share |
|
$ |
0.08 |
|
$ |
0.10 |
|
$ |
0.66 |
|
$ |
0.39 |
|
Diluted earnings per share |
|
$ |
0.08 |
|
$ |
0.10 |
|
$ |
0.66 |
|
$ |
0.38 |
|
|
|
|
|
|
|
[7] The Company has initially applied IFRS 16 at January 1, 2019,
using the modified retrospective approach. Under this approach,
comparative information is not restated. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Points International Ltd. |
|
Condensed Consolidated Interim Statements of Changes in
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to equity holders of the Company |
Expressed in thousands of United States dollars except number of
shares (Unaudited) |
|
Share Capital |
ContributedSurplus |
|
Accumulatedothercomprehensiveincome (loss) |
|
Accumulateddeficit |
|
Totalshareholders’equity |
|
|
|
Number ofShares |
|
|
Amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2018 |
|
14,111,864 |
|
$ |
53,886 |
|
$ |
4,446 |
|
$ |
(646 |
) |
$ |
(16,676 |
) |
$ |
41,010 |
|
Net income |
|
- |
|
- |
|
- |
|
- |
|
9,131 |
|
9,131 |
|
Other comprehensive income, net of tax |
|
- |
|
- |
|
- |
|
572 |
|
- |
|
572 |
|
Total comprehensive income |
|
- |
|
- |
|
- |
|
572 |
|
9,131 |
|
9,703 |
|
Effect of share option compensation plan |
|
- |
|
- |
|
432 |
|
- |
|
- |
|
432 |
|
Effect of RSU compensation plan |
|
- |
|
- |
|
3,090 |
|
- |
|
- |
|
3,090 |
|
Share issuances – options exercised |
|
2,338 |
|
28 |
|
(7 |
) |
- |
|
- |
|
21 |
|
Settlement of RSUs |
|
- |
|
1,431 |
|
(4,534 |
) |
- |
|
- |
|
(3,103 |
) |
Shares purchased and held in trust |
|
- |
|
(3,636 |
) |
- |
|
- |
|
- |
|
(3,636 |
) |
Shares repurchased and cancelled |
|
(664,884 |
) |
(2,533 |
) |
(3,427 |
) |
- |
|
(1,825 |
) |
(7,785 |
) |
Balance at September 30, 2019 |
|
13,449,318 |
|
$ |
49,176 |
|
$ |
- |
|
$ |
(74 |
) |
$ |
(9,370 |
) |
$ |
39,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2017 |
|
14,561,450 |
|
$ |
56,394 |
|
$ |
10,647 |
|
$ |
374 |
|
$ |
(24,468 |
) |
$ |
42,947 |
|
Net income |
|
- |
|
- |
|
- |
|
- |
|
5,546 |
|
5,546 |
|
Other comprehensive loss, net of tax |
|
- |
|
- |
|
- |
|
(505 |
) |
- |
|
(505 |
) |
Total comprehensive income |
|
- |
|
- |
|
- |
|
(505 |
) |
5,546 |
|
5,041 |
|
Effect of share option compensation plan |
|
- |
|
- |
|
40 |
|
- |
|
- |
|
40 |
|
Effect of RSU compensation plan |
|
- |
|
- |
|
3,157 |
|
- |
|
- |
|
3,157 |
|
Share issuances - options exercised |
|
118,288 |
|
1,348 |
|
(997 |
) |
- |
|
- |
|
351 |
|
Settlement of RSUs |
|
- |
|
1,316 |
|
(3,905 |
) |
- |
|
- |
|
(2,589 |
) |
Shares purchased and held in trust |
|
- |
|
(2,956 |
) |
- |
|
- |
|
- |
|
(2,956 |
) |
Shares repurchased and cancelled |
|
(457,556 |
) |
(1,782 |
) |
(4,576 |
) |
- |
|
- |
|
(6,358 |
) |
Balance at September 30, 2018 |
|
14,222,182 |
|
$ |
54,320 |
|
$ |
4,366 |
|
$ |
(131 |
) |
$ |
(18,922 |
) |
$ |
39,633 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Points International Ltd. |
|
Condensed Consolidated Interim Statements of Cash
Flows |
|
Expressed in thousands of United States dollars |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the nine months ended |
|
|
|
Sept 30, 2019 |
|
Sept 30, 2018[8] |
|
Sept 30, 2019 |
|
Sept 30, 2018[8] |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
Net income for the period |
|
$ |
1,098 |
|
$ |
1,476 |
|
$ |
9,131 |
|
$ |
5,546 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
Depreciation of property and equipment |
|
316 |
|
247 |
|
894 |
|
715 |
|
Depreciation of right-of-use assets |
|
290 |
|
- |
|
868 |
|
- |
|
Amortization of intangible assets |
|
525 |
|
611 |
|
1,637 |
|
1,909 |
|
Unrealized foreign exchange gain |
|
(542 |
) |
(127 |
) |
(614 |
) |
(558 |
) |
Equity-settled share-based payment transactions |
|
1,193 |
|
1,054 |
|
3,522 |
|
3,197 |
|
Finance costs |
|
51 |
|
- |
|
163 |
|
- |
|
Deferred income tax expense (recovery) |
|
6 |
|
(337 |
) |
448 |
|
(708 |
) |
Unrealized net (gain) loss on derivative contracts designated as
cash flow hedges |
|
(142 |
) |
385 |
|
750 |
|
(686 |
) |
Changes in restricted cash balance |
|
- |
|
- |
|
500 |
|
- |
|
Changes in non-cash balances
related to operations |
|
(1,940 |
) |
(17,426 |
) |
(15,867 |
) |
(4,757 |
) |
Interest paid |
|
(51 |
) |
- |
|
(163 |
) |
- |
|
Net cash provided by (used in) operating
activities |
|
$ |
804 |
|
$ |
(14,117 |
) |
$ |
1,269 |
|
$ |
4,658 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
Acquisition of property and equipment |
|
(130 |
) |
(60 |
) |
(798 |
) |
(798 |
) |
Additions to intangible assets |
|
(61 |
) |
(189 |
) |
(600 |
) |
(712 |
) |
Net cash used in investing activities |
|
$ |
(191 |
) |
$ |
(249 |
) |
$ |
(1,398 |
) |
$ |
(1,510 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
Payment of lease liabilities |
|
(350 |
) |
- |
|
(808 |
) |
- |
|
Proceeds from exercise of share options |
|
- |
|
- |
|
21 |
|
351 |
|
Shares repurchased and cancelled |
|
(2,473 |
) |
(557 |
) |
(7,785 |
) |
(6,358 |
) |
Purchase of share capital held in trust |
|
(2,176 |
) |
- |
|
(3,636 |
) |
(2,956 |
) |
Taxes paid on net settlement of RSUs |
|
(134 |
) |
(53 |
) |
(3,103 |
) |
(2,589 |
) |
Net cash used in financing activities |
|
$ |
(5,133 |
) |
$ |
(610 |
) |
$ |
(15,311 |
) |
$ |
(11,552 |
) |
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate fluctuations on cash held |
|
545 |
|
127 |
|
635 |
|
558 |
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents |
|
$ |
(3,975 |
) |
$ |
(14,849 |
) |
$ |
(14,805 |
) |
$ |
(7,846 |
) |
Cash and cash equivalents at beginning of the period |
|
$ |
58,301 |
|
$ |
70,517 |
|
$ |
69,131 |
|
$ |
63,514 |
|
Cash and cash equivalents at end of the
period |
|
$ |
54,326 |
|
$ |
55,668 |
|
$ |
54,326 |
|
$ |
55,668 |
|
|
|
|
|
|
|
|
|
|
|
Interest Received |
|
$ |
235 |
|
$ |
212 |
|
$ |
745 |
|
$ |
358 |
|
Taxes Received |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
110 |
|
Taxes Paid |
|
$ |
(27 |
) |
$ |
(542 |
) |
$ |
(1,213 |
) |
$ |
(2,223 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts received
and paid for interest and taxes were reflected as operating cash
flows in the condensed consolidated interim statements of cash
flows. |
|
(8) The
Corporation has initially applied IFRS 16 at January 1, 2019, using
the modified retrospective approach. Under this approach
comparative information is not restated. |
|
|
|
|
|
|
|
|
|
|
|
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