3Pea International Reports Record Third Quarter and Nine Month 2012 Results

3Pea International Reports Record Third Quarter and Nine Month 2012 Results

  • Revenues increased by 124% and 146% in the three and nine months, respectively.
  • Operating income increased by 126% and 270% in the three and nine months, respectively.

HENDERSON, Nev.--(BUSINESS WIRE)-- 3Pea International, Inc. (OTCBB:TPNL), a leading payment solutions provider focused on prepaid debit card program management and processing services, today announced record financial results for the quarter ended September 30, 2012.

Third Quarter 2012 Results:


Revenues for the three months ended September 30, 2012 were $662,368, an increase of $384,359, or 124% compared to the same period in the prior year, when revenues were $278,009.

In the three months ended September 30, 2012, we recorded operating income of $107,858 as compared to operating income of $47,750 in the same period in the prior year, an improvement of $60,108 or 126%.

Our net income for the three months ended September 30, 2012 was $112,191, an increase of $80,424, or 253% when compared to the same period in the prior year, when we recorded net income of $31,767.

The increase in revenue, operating income and net income can be attributed to the increase in debit card processing utilizing new incentive reward programs which we believe will contribute to an increase in overall revenues for 2012.

Historically, third quarter revenues tend to be impacted by the normal life cycle of our pharmaceutical debit card programs. We expect the effects of this cyclicality to abate over the next several quarters as we continue to diversify our product offerings.

YTD 2012 Financial Results

Revenues for the first nine months of 2012 were $4,655,964, an increase of $2,775,354, or 146% when compared to the same period in the prior year, when revenue was $1,880,610. The increase in revenue can be attributed to increased debit card processing and the launch of new incentive reward programs.

In the nine months ended September 30, 2012, we recorded operating income of $560,383 as compared to operating income of $151,483 in the same period in the prior year, an improvement of $408,900, or 270%.

Other income for the nine months ended September 30, 2012 was $1,111,558, an increase in net other income of $1,159,200 compared to the same period in the prior year when other income (expense) was ($47,642). The overall increase in net other income in 2012 is primarily due to a gain on debt extinguishment totaling $1,136,055.

Net income for the first nine months of 2012 was $1,669,152 or $.05 per share, an increase of $1,565,311 or 1,507%, when compared to the first nine months of 2011 when net income was $103,903. The increase can be attributed to the factors discussed above.

According to the Company's Chief Financial Officer, Arthur de Joya, "We are very pleased with our results and look forward to the remainder of 2012 and beyond. We will continue to focus on developing a targeted range of new card programs to take advantage of our proprietary and customizable payment solution processing platform."

                           

3PEA INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEET

SEPTEMBER 30, 2012 AND DECEMBER 31, 2011


(UNAUDITED)

 
September 30, 2012 December 31, 2011
ASSETS
 
Current assets
Cash $ 202,856 $ 63,826
Cash Restricted 4,739,491 5,514,661
Accounts Receivable 388,027 1,250,320
Prepaid Expenses 13,750 3,970
Other receivables   8,490     --  
Total current assets 5,352,614 6,832,777
 
Fixed assets, net 118,657 88,720
 
Intangible and other assets
Deposits 3,551 3,551
Intangible assets, net   287,871     171,775  
 
Total assets $ 5,762,693   $ 7,096,823  
 
LIABILITIES AND STOCKHOLDERS' DEFICIT
 
Current liabilities
Accounts payable and accrued liabilities $ 904,952 $ 2,001,047
Customer card funding 4,739,491 5,514,661
Notes payable- related parties 538,000 538,000
Convertible note payable 10,000 10,000
Notes payable   244,400     1,943,900  
Total current liabilities 6,436,843 10,007,608
 
 
Total liabilities 6,436,843 10,007,608
 
Stockholders' deficit

Common stock; $0.001 par value; 150,000,000 shares authorized, 38,860,891 and 35,250,391 issued and outstanding at September 30, 2012 and December 31, 2011, respectively

38,861 35,250
Additional paid-in capital 5,536,769 4,975,686
Treasury stock at cost, 303,450 shares (150,000 ) (150,000 )
Accumulated deficit   (6,159,952 )   (7,829,104 )
Total 3Pea International, Inc.'s stockholders' deficit (734,322 ) (2,968,168 )
Noncontrolling interest   60,172     57,383  
Total stockholders' deficit   (674,150 )   (2,910,785 )
 
Total liabilities and stockholders' deficit $ 5,762,693 $ 7,096,823
 
 
         

3PEA INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011


(UNAUDITED)

 
For the three months ended Sept 30,
2012                     2011
Revenues $ 622,368 $ 278,009
Cost of revenues   307,307     90,050  
Gross profit   315,061     187,959  
 
Operating expenses
Depreciation and amortization 15,654 10,603
Selling, general and administrative   191,549     129,606  
Total operating expenses   207,203     140,209  
 
Income (loss) from operations   107,858     47,750  
 
Other income (expense)
Interest expense (16,248 ) (15,986 )
Gain on debt extinguishment   23,377     --  
Total other income (expense)   7,129     (15,986 )
 
Income before provision for income taxes and noncontrolling interest 114,987 31,764
Provision for income taxes   --     --  
Net income before noncontrolling interest 114,987 31,764
Net (income) loss attributable to the noncontrolling interest   (2,796 )   3  
Net income attributable to 3Pea International, Inc. $ 112,191   $ 31,767  
 
Net income per common share - basic   0.00     0.00  
Net income per common share - fully diluted   0.00     0.00  
 
Weighted average common shares outstanding - basic   38,817,208     35,249,122  
Weighted average common shares outstanding - fully diluted   38,817,208     35,249,122  
 
 
         

3PEA INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011


(UNAUDITED)

 
For the nine months ended Sept 30,
2012                       2011
 
Revenues $ 4,655,964 $ 1,880,610
Cost of revenues   3,562,376     1,273,211  
Gross profit   1,093,588     607,399  
 
Operating expenses
Depreciation and amortization 44,529 34,126
Selling, general and administrative   488,676     421,790  
Total operating expenses   533,205     455,916  
Income from operations   560,383     151,483  
 
Other income (expense)
Interest expense (47,874 ) (47,642 )
Gain on debt extinguishment   1,159,432    

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