November 14, 2011 06:40 AM Eastern Time
NASHVILLE, Tenn.--()--iPayment Holdings, Inc. (“Holdings”) and iPayment, Inc. (“iPayment” or the “Company”) today announced financial results for the three months ended September 30, 2011. All operations are conducted through iPayment and its subsidiaries. Holdings is a holding company that does not have any operations or material assets other than its ownership of iPayment and its subsidiaries. The financial results of Holdings are identical to those of iPayment with the exception of interest expense, tax provision (benefit) and net income (loss). The financial results discussed below represent those of iPayment and its consolidated subsidiaries, except where otherwise noted.
Revenues increased 3.4% to $181.0 million for the third quarter of 2011 from $175.1 million for the third quarter of 2010. Revenues, net of interchange, were $80.6 million for the third quarter of 2011, up 3.5% compared to $77.9 million for the third quarter of 2010. Net loss was approximately $3.6 million for iPayment and its consolidated subsidiaries and $7.5 million for Holdings and its consolidated subsidiaries for the third quarter of 2011, in each case, compared to net income of $5.2 million for the same period last year. Net loss in the third quarter of 2011 was attributable to higher depreciation and amortization expense and higher interest expense as a result of the refinancing and equity redemption (collectively, the “Refinancing”) that we completed in May of this year. The Company had approximately 135,000 active merchants at September 30, 2011, compared to approximately 130,000 at September 30, 2010. For the third quarter of 2011, the Company processed $5.9 billion of total transaction volume, a 2.7% increase from the same period in 2010.
For the nine months ended September 30, 2011, revenues increased to $535.2 million from $518.6 million for the first nine months of 2010. Revenues, net of interchange, increased to $244.8 million for the first nine months of 2011 compared to $231.8 million for the same period in 2010. Net loss for the first nine months of 2011 was $4.8 million for iPayment and its consolidated subsidiaries and $11.0 million for Holdings and its consolidated subsidiaries, in each case, compared to net income of $15.7 million for the first nine months of 2010. Net loss for the nine months ended September 30, 2011 was attributable to costs associated with the Refinancing, 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. For the nine months ended September 30, 2011, the Company processed $17.1 billion of total transaction volume, which was approximately the same as the comparable period in 2010.
We filed our Quarterly Report on Form 10-Q for the three months ended September 30, 2011 with the Securities and Exchange Commission (the “SEC”) today.
Conference Call
Management will hold a conference call on Monday, November 14, 2011 at 10:00 a.m. (Eastern Time) to discuss its 2011 third quarter results. Participants should dial 913-312-0406 approximately 10 minutes prior to the start of the call. A telephonic replay will become available after 12:00 p.m. (Eastern Time) on November 14, 2011 and will continue to be available through November 22, 2011. You can access the replay by dialing 719-457-0820 and entering Confirmation Code 2474109.
The live broadcast of our quarterly conference call will be available online at www.ipaymentinc.com orhttp://www.videonewswire.com/event.asp?id=83504 on November 14, 2011 beginning at 10:00 a.m. (Eastern Time). The online replay will be available at approximately 12:00 p.m. (Eastern Time) on November 14, 2011 and will continue to be available for one week.
