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PAID Inc. Reports Record Revenue and Record Adjusted Income From Operations for the Third Quarter Ended September 2012
WESTBOROUGH, MA, Nov 21, 2012 (MARKETWIRE via COMTEX) --
PAID Inc. (OTCBB: PAYD) has been focused on growing revenue, driving
efficiencies and bringing the company to profitability. PAID reported
Record total revenue of $7,093,500 and $10,661,100 for the third
quarter of 2012 and for the nine months respectively. This compares
with revenue of $1,620,400 and $4,006,200 for the same periods last
year.
"PAID is having its best revenue year ever and we expect progress to
continue," said Austin Lewis, PAID Inc. CEO. "The company is focusing
on growing our VIP Experiences, streamlining costs, while continuing
to provide excellent service and value to our clients and fans. New
business prospects and other activities currently in the new business
pipeline are making us feel comfortable that 2013 should be another
strong year."
Proforma Results:
"The true operating results have been overshadowed by certain
accounting treatments, specifically option compensation and stock
price guarantees which are non-cash and non-operating charges," said
Christopher Culross, PAID Inc. CFO. We have been very focused on
cutting excess overhead and streamlining the operational processes so
that we can achieve profitability. The results of our initial efforts
which included salary and headcount reductions, reductions in legacy
IT costs, and reductions in general administrative costs, produced a
profit from operations in the third quarter of 2012 of $318,600 on a
proforma basis.
Three Months Ended
----------------------------
September 30, September 30,
2012 2011
------------- -------------
Revenues $ 7,093,500 $ 1,620,400
Cost of revenues 5,509,100 1,010,500
------------- -------------
Gross profit 1,584,400 609,900
Operating expenses 1,265,800 1,299,400
------------- -------------
Income (loss) from operations 318,600 (689,500)
------------- -------------
Reconciliation of non cash expenses to
reported results
Option compensation 352,300 113,000
Stock price guarantee 231,100 -
Reported loss from operations $ (264,800) $ (802,500)
============= =============
Operating Cash Flows
"Positive cash flow continues to be a high
priority for us," said Lewis. "We have moved our reliance off of
issuing stock options for payment of services and compensation, and
have moved our focus to reducing costs, and as a result, operating
cash flows in the third quarter of 2012 increased $406,400."
Nine Months
Ended Six Months
September 30, Ended June
2012 30, 2012
------------- -------------
Net loss $ (3,586,000) $ (2,674,700)
Depreciation and amortization 56,000 33,700
Unrealized gain on investment 24,400 51,600
Share based compensation 532,500 180,000
Amortization of prepaid facility costs 227,800 -
Change in fair value of stock price guarantee 919,500 236,200
Fair value of stock options awarded
in payment of outside services and
compensation 2,166,800 2,070,900
Deferred revenues, net of prepaid royalties (100,700) (870,500)
Changes in current assets and liabilities (523,900) 282,600
------------- -------------
Net cash provided by (used in) operating
activities $ (283,600) $ (690,000)
============= =============
Management's Plan
PAID, Inc. will continue to streamline its
operations with a focus on core revenue generating activities. PAID,
Inc. is a leader in custom developed VIP experience programs. "PAID's
new client acquisition strategy is centered on the plan to hone its
competitive edge by taking VIP experience programs to the next level
with expanded direct-to-consumer reach and engagement via mobile and
wireless communications channels, the addition of higher-margin
travel package services and VIP programs designed to support
celebrity client charitable fundraising and awareness campaigns,"
said Keith Garde, President of PAID Inc. celebrity services. PAID,
Inc. will be reaching beyond its celebrity clients' consumer-level
fan bases and increasing the volume of VIP experience package sales
by targeting corporate and institutional demand for VIP experience
and travel packages.
Patent Update
We continue to work with our legal counsel and believe
we are making progress in our efforts to maximize the value of PAID's
intellectual property on behalf of shareholders.
About PAID Inc.:
PAID Inc. is a one-stop brand management and
marketing resource to music, entertainment and sports personalities
and organizations, and offers AuctionInc(TM) online shipping
calculation and shopping cart software employing its patented
technology to streamline ecommerce. Known for quality and customer
service, PAID offers turnkey online, mobile, social media and
traditional marketing campaigns, as well as award-winning video &
film production, VIP ticketing, web site design, merchandising,
ecommerce and fan community management programs. More details are
available at www.paid.com.
Safe Harbor statement under the Private Securities Litigation Reform
Act of 1995:
Statements in this news release looking forward in
time involve risks and uncertainties, including the risks associated
with the effect of changing economic conditions, trends in the
markets, variations in the company's cash flow, competition,
celebrity programs, business development efforts, technology
availability and cost of materials and other risk factors. Factors
that could cause actual results to differ materially are discussed in
the Company's most recent filings with the Securities and Exchange
Commission.
CONTACT:
Austin Lewis
617-861-6050
Email Contact
SOURCE: PAID INC
http://www2.marketwire.com/mw/emailprcntct id=2AE9AF8BDDA071E0
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