Pipeline Data reports Q1 results

Source: Pipeline Data

Pipeline Data Inc. (OTCBB: PPDA), a provider of payment processing solutions and services, announced its financial results for the quarter ended March 31, 2006.

Gross profit for the three months ended March 31, 2006 grew 121.5% to $2,872,651 from $1,297,071 for the three months ended March 31, 2005, historically the weakest quarter for the payment processing industry due to reduced consumer purchase volume. EBITDA, which means earnings before interest, taxes, depreciation and amortization, was $444,702 for the quarter ended March 31, 2006 as compared with $175,363 for the same quarter in 2005, representing an increase of 153.5%. In response to new accounting policies, the Company chose to vest its historical employee options and incur a one-time non-cash expense of $232,279. Adjusted pro-forma EBITDA, without the inclusion of this one-time stock option expense, would have been $676,980. The increase in gross profit and EBITDA was partially attributed to the late-year acquisition of Charge.com. As of April 30, 2006, the Company serviced more than 25,000 accounts.

Net loss for the first quarter ended March 31, 2006 was $353,577. The loss can be attributed to (i) one-time merger expenses incurred related to Aircharge and Charge.com, (ii) a one-time, non-cash expense associated with the acceleration of unvested employee stock options, (iii) increased amortization and additional interest expense associated with the AIRCHARGE and Charge.com mergers, and (iv) delayed rollout expenses associated with the launch of the AIRCHARGE national marketing campaign.Download the document now 32.6 kb (Adobe Acrobat Document)

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