TORONTO, ONTARIO — (Marketwired) — 12/12/13 — VersaPay Corporation (TSX VENTURE: VPY) (“VersaPay” or the “Company”), a provider of merchant credit and debit card payment processing services (“POS Merchant Services”) and proprietary, cloud-based financial technology solutions (“VersaPay Solutions”), today announced its financial and operational results for the three and nine months ended September 30, 2013. All amounts are in Canadian dollars unless otherwise noted.
“Overall, we are pleased with the results for the third quarter,” said Craig O-Neill, CEO of VersaPay. Mr. O-Neill continued, “While our financial results continue to be driven by our POS business, we are continue to be encouraged by the progress made in our VersaPay Solutions business. In addition to another quarter of strong growth in EMT transaction revenues, we signed an important agreement with Heartland Payment Systems in the United States. This five year agreement allows Heartland to market VersaPay-s eInvoice solution to its extensive customer base across the United States through its world class and industry- recognized sales distribution network.”
Q3 and Year to Date 2013 Financial Review
Total revenues for Q3 2013 increased 4% to $4.8 million from $4.6 million in Q3 2012. Total revenue for the nine months ended September 30, 2013 increased 5% to $13.3 million from $12.7 million for the same period in 2012. 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 2% to $1.0 million from $1.0 million in Q3 2013 from the same period in 2012. Cash operating expense for the nine months ended September 30, 2013 decreased 4% to $3.1 million from $3.2 million in 2012.
Adjusted EBITDA for Q3 2013 was $(0.1) million, compared to $(0.09) million in Q3 2012. For the nine months ended September 30, 2013, Adjusted EBITDA was $(0.5) million, compared to $(0.6) million in 2012.
Loss from continuing operations for Q3 2013 was $(0.2) million. This compares to a loss from continuing operations of $(0.2) million for Q3 2012. For the nine months ended September 30, 2013, loss from continuing operations was $(0.8) million, compared to $(1.0) million in 2012.
Appointment of Craig O-Neill to the Board
The Company is also pleased to announce that Craig O-Neill has been appointed to its board of directors. Mr. O-Neill took over as the Company-s Chief Executive Officer on September 1, 2013.
About VersaPay
VersaPay is a financial technology company that delivers payment solutions for businesses. Serving more than 25,000 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. To learn more about VersaPay, visit .
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.
Investors are cautioned against attributing undue certainty to forward-looking statements. There are a number of important factors that could cause the Company-s actual results to differ materially from those indicated or implied by forward-looking statements and information. Such factors include, among others, risks related to following: the Company-s financial position and the potential need for future financings, the ability of the Company to maintain its relationship with its strategic partner for payment processing, the efforts and abilities of the senior management team, the ability of the Company to attract and retain skilled management, competition in the payment processing industry, and the Company-s ability to respond to technological change and protect its intellectual property rights.
The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company-s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking statements and information to differ materially from actual results or events. There can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE SECURITIES LEGISLATION.
Neither 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.
Contacts:
VersaPay Corporation
Craig O-Neill
CEO
1-647-258-9378
Hogan Mullally
Investor Relations
1-204-479-2516
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