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

By Business Wire via The Motley Fool

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."

PEA 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

Increase your money and finance knowledge from home

Building Credit from Scratch

Start building credit...now.

View Course »

Goal Setting

Want to succeed? Then you need goals!

View Course »

Add a Comment

*0 / 3000 Character Maximum