– – Introduces Preliminary Outlook for Full Year 2011; Robust First Half 2011 Partner Pipeline – –
– – Announces Board Approval of Share Consolidation – –
– – NASDAQ Listing Process Underway – –
The Company is updating its guidance for the year ended December 31, 2010 as follows:
For the twelve months ended December 31, 2010, the Company anticipates revenues of approximately $95 million, which is at the high-end of the Company’s previous guidance range of $85 million to $95 million, and represents year-over-year anticipated revenue growth of approximately 19%.
Net income, which is expected to be positive on a full year basis, is forecasted to increase significantly year-over-year.
Points International cautions that any preliminary financial results are unaudited and based on the best information currently available and are subject to completion of its financial statements for the fiscal 2010 fourth quarter and full year. Points International currently expects to release its full results for the fourth quarter and full year 2010 on or before March 15, 2011.
Preliminary 2011 Guidance
The Company is initiating its financial guidance for the year ended December 31, 2011, as follows:
- Revenue is expected to be in the range of $120 million to $130 million, representing a 26% to 37% year-over-year increase from the Company’s 2010 estimated revenues of $95 million
- EBITDA is expected to be in the range of $5 million to $8 million
MacLean added, "Looking to the first half of 2011, our partner pipeline remains robust. We currently expect over 20 new product deployments on a white label and branded basis on the Points.com portal, which we expect to contribute to our anticipated improved results."
The Company announced today that its Board of Directors has approved a share consolidation of its common shares through a one-for-ten reverse split. Shareholders previously approved the consolidation with over 90% of the votes cast in favour at a special meeting held on October 26, 2010. The share consolidation, which is subject to standard clearance by the TSX, is expected to be completed within 10 business days. Following the share consolidation, the Company expects to have approximately 15.0 million common shares issued and outstanding. The Company also announced that it has filed an application to list its common shares on the NASDAQ Capital Market and expects to effect a NASDAQ listing as soon as possible. The Company’s common shares will continue to be quoted on OTC Markets until such time as the shares may be listed on the NASDAQ Capital Market.
"Given our strong anticipated results for the 2010 fiscal year and our positive preliminary outlook for 2011, we believe we are appropriately positioned to initiate our planned share consolidation," said CEO Rob MacLean. "Effecting the share consolidation is consistent with our objective of obtaining a NASDAQ listing and increasing Points’ reach to a broader universe of institutional investors. We also believe a lower share count will better reflect our future earnings performance on a per share basis. Over the past twelve months, Points has delivered significantly strengthened financial results, characterized by sequential revenue growth, enhanced gross margins and expanded profitability. Based on our strong operational and financial performance to-date, and our preliminary performance expectations for the coming year, we are increasingly confident in our business strategy and growth prospects. We look forward to the opportunity to demonstrate our improving fundamentals to a wider audience."
Information for Shareholders
Upon execution, Points’ common shareholders will receive one new common share for every ten shares held. Registered holders of Points common shares will receive a letter of transmittal shortly after the effective date with instructions for the exchange of common share certificates. No fractional shares will be issued as a result of the share consolidation, and in the event that a shareholder would otherwise be entitled to receive a fractional share, such fraction will be rounded down to the nearest whole number. Computershare Trust Company of Canada will act as the transfer agent, and can be contacted at (1-800-564-6253) with any questions.
Shareholders with shares in brokerage accounts will be contacted by their brokers with instructions.
About Points International Ltd
Caution Regarding Forward-Looking Statements
The forward-looking statements contained in this press release are made as at the date of this release and, accordingly, are subject to change after such date. Except as required by law, Points does not undertake any obligation to update or revise any forward-looking statements made or incorporated in this press release, whether as a result of new information, future events or otherwise.
SOURCE Points International Ltd.