August 15, 2011 08:00 AM Eastern Daylight Time
John Vickers to Join Board of Directors
Announces Planned Relocation of Corporate Headquarters
NASHVILLE, Tenn.--(BUSINESS WIRE)--iPayment, Inc. (“iPayment” or the “Company”) today announced financial results for the three months ended June 30, 2011. Revenues increased to $184.6 million for the second quarter of 2011 from $183.9 million for the second quarter of 2010. Revenues, net of interchange, were $85.3 million for the second quarter of 2011, which were flat compared to the second quarter of 2010. Net loss was $8.7 million for the second quarter of 2011 compared to net income of $8.3 million for the same period last year. The net loss in the second quarter of 2011 was attributable to costs associated with the refinancing and equity redemption completed by the Company during the period (collectively, the “Transaction Costs”), which totaled $18.7 million or $12.4 million after tax. In addition, the Company incurred higher interest and amortization expenses as a result of the refinancing and increased compensation expense. The Company had approximately 133,000 active merchants at June 30, 2011, unchanged from June 30, 2010.
For the six months ended June 30, 2011, revenues increased to $354.2 million from $343.5 million in the first six months of 2010. Revenues, net of interchange, increased 6.6% to $164.2 million in the first half of 2011 compared to the first half of 2010. The Company recorded a net loss of $1.1 million in the first half of 2011, which included the negative after-tax impact from the Transaction Costs of $12.4 million, compared to net income of $10.5 million in the first half of 2010.
The Company filed its Form 10-Q for the three months ended June 30, 2011 with the Securities and Exchange Commission (the “SEC”) today.
iPayment Holdings, Inc. to Expand its Board of Directors
The Company also announced that its direct parent, iPayment Holdings, Inc., will name John A. Vickers to its Board of Directors. Mr. Vickers is currently Chairman and Chief Executive Officer of Tishman Realty Corporation and Tishman Hotel Corporation, having served the Tishman organization for 27 years in positions in increasing responsibility. He is responsible for Tishman’s owned portfolio of hotels and for overseeing all of the firm’s service divisions. Mr. Vickers was also Vice Chairman and Principal of Tishman Construction Corporation prior to its sale to AECOM in July 2010. Mr. Vickers’ appointment to the Board will be effective September 1, 2011.
Carl Grimstad, Chairman and Chief Executive Officer of iPayment, remarked, “We are pleased to announce the addition of John Vickers to our Board of Directors. John has distinguished himself through his extensive record of success at Tishman, and he brings over 25 years of business experience in the hospitality and real estate industries to iPayment. We are confident of John’s ability to contribute to the long-term growth of iPayment, and we look forward to working with him. His selection is consistent with our previously announced intention to expand the number of our independent directors, as well as our commitment to strong corporate governance.”
Corporate Headquarters to Relocate to New York in January 2012
iPayment also announced that it plans to relocate its headquarters to New York City at the start of 2012. Mark Monaco, the Company’s Chief Financial Officer said, “Our decision to relocate to New York was primarily driven by the opportunity for us to be very close to a large portion of our sales organizations, a significant number of our investors and other key constituents. We expect this process, which is already underway, to be fully complete by January 2012.”
Afshin Yazdian, iPayment’s Executive Vice President and General Counsel and Secretary, has announced that he will leave the Company at the end of 2011, concurrent with the relocation of the corporate headquarters. Mr. Monaco remarked, “Afshin Yazdian has served iPayment with distinction as EVP and General Counsel since the Company’s founding over 11 years ago. During this time, Afshin has played an important role in the Company’s growth and expansion. All of us at iPayment appreciate the significant contribution he has made to our Company’s success. We wish him well in his future endeavors.” Mr. Yazdian resigned as an officer of the Company and its affiliates effective August 12, 2011 but will continue as an employee of the Company through the end of the year and assist with the relocation and the transitioning of his responsibilities to other executives. With the exception of Mr. Yazdian, all senior executives of the Company currently based in Nashville intend to relocate to New York.
Conference Call
Management will hold a conference call Tuesday, August 16, 2011 at 10:00 a.m. (Eastern Time) to discuss its 2011 second quarter results. Participants should dial 913-312-0399 approximately 10 minutes prior to the start of the call. A telephonic replay will become available after 12:00 p.m. (Eastern Time) on August 16, 2011 and continue through August 24, 2011. You can access the replay by dialing 719-457-0820 and entering Confirmation Code 2614480.
The live broadcast of iPayment’s quarterly conference call will be available online at www.ipaymentinc.com orhttp://www.videonewswire.com/event.asp?id=81167 on Tuesday, August 16, 2011 beginning at 10:00 a.m. (Eastern Time). The online replay will be available at approximately 12:00 p.m. (Eastern Time) on August 16, 2011 and continue to be available for one week.
