PR Newswire
TORONTO, May 8, 2024
Payfare generated net income of $5.1 million, and Adjusted net income per share1 of $0.15 in Q1 2024. The Company has also provided an update on its Audited Annual Filings.
TORONTO, May 8, 2024 /PRNewswire/ - Payfare Inc. ("Payfare" or the "Company") (TSX: PAY) (OTCQX: PYFRF), a leading international Earned Wage Access ("EWA") company powering instant access to earnings and digital banking solutions for workforces, today announced the filing of its Financial Statements and Management's Discussion and Analysis ("MD&A") for the quarter ending March 31, 2024. A comprehensive discussion of Payfare's financial position and results of operations are provided in the MD&A, which is filed on SEDAR+ under Payfare's profile and can be found at www.sedarplus.ca.
Q1 2024 Highlights:
Payfare Provides Update on Annual Filings
Payfare provided an update to its previously disclosed management cease trade order ("MCTO"), in respect of its delayed filing of its audited annual financial statements, management's discussion and analysis, annual information form, and related certifications, all for the year ended December 31, 2023 (collectively, the "Annual Filings").
The delay in the Annual Filings is due solely to the delay in receiving the System and Organization Controls ("SOC 1") auditor's report from its material vendor (the "Vendor") which is required in order for the Company's auditors to complete their required audit procedures to issue their opinion.
There have been no changes to the expected timing of the delivery of the SOC 1 report from the Vendor disclosed within the press release dated April 25, 2024. Payfare continues to anticipate that it will complete its Annual Filings by May 22, 2024. The Company will issue a news release announcing completion of filing of the Annual Filings at such time as they are completed and filed.
Until the Company files the Annual Filings, it will comply with the alternative information guidelines set out under National Policy 12-203 – Cease Trade Orders for Continuous Disclosure Defaults, including issuing bi-weekly default status reports by way of news releases such as this one, which will be filed on SEDAR+.
No Conference Call Scheduled
Management recently hosted a conference call on April 29, 2024, and provided an update on Payfare's financial outlook, strategy, and operations. There have been no new developments to discuss since the previous conference call, and as such management believes there is no value in hosting another conference call to discuss Q1 2024 financial results. An archived recording of the previous conference call hosted on April 29, 2024 will be available until May 29, 2024. To listen to the recording, call 289-819-1325 or 1-888-660-6264 and enter passcode 10007.
About Payfare (TSX:PAY, OTCQX: PYFRF)
Payfare is a leading, international Earned Wage Access ("EWA") company powering instant access to earnings through an award-winning digital banking platform for today's workforce. Payfare partners with leading e-commerce marketplaces, payroll platforms, and employers to provide financial security and inclusion for all workers.
1Non-IFRS and Supplementary Financial Measures
This press release contains references to "active users", "Total GDV", "adjusted net income", "adjusted net income per share", "EBITDA", "Adjusted EBITDA" and "free cash flow", which are not measures prescribed by IFRS Accounting Standards ("IFRS"). These supplementary financial measures are provided as additional information to complement IFRS measures by providing a further understanding of our results of operations from management's perspective, to provide investors and security analysts with supplemental measures to evaluate the financial performance of the Company and highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. Management also uses non-IFRS and supplementary financial measures to facilitate operating performance comparisons from period to period, prepare annual operating budgets and strategic business plans and to evaluate and price potential acquisitions. Accordingly, non-IFRS and supplementary financial measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS. Such measures do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other corporations. The non-IFRS and supplementary financial measures are not subject to standard industry definition and our definitions and method of calculation may differ from other issuers and therefore may not be comparable to similar measures presented by other issuers.
The Company determines the number of users to its services based on active users. "Active users" represent users who have loaded earnings and direct deposits on their card in the period. "Total GDV" is defined as the aggregate dollar amount of active user earnings and direct deposits loaded on their payment card during the period.
"EBITDA" means net income (loss) before amortization and depreciation expenses, foreign exchange gain (loss), amortization of deferred income, finance and interest income/ costs, current tax expense and change in fair value of derivative liability.
"Adjusted EBITDA" adjusts EBITDA for stock-based compensation expense, restructuring costs and non-recurring expense items. Non-recurring expense items are transactions or events which management believes will not re-occur within the foreseeable future and includes legal and professional fees related to claim settlements, acquisition, divestiture, asset impairment charges and going public transaction.
The table below reconciles net income to EBITDA and Adjusted EBITDA for the three months ended March 31, 2024 and 2023.
| Three Months Ended March 31, | ||
In CAD $ | 2024 | | 2023 |
Net income | $ 5,108,563 | | $ 1,288,876 |
Add: | | | |
Current tax expense | 41,517 | | 17,269 |
Finance income | (871,181) | | (482,882) |
Other income | - | | (7,790) |
Foreign exchange (gain) loss | (626,729) | | 55,231 |
Amortization of intangible assets | 1,220,356 | | 571,983 |
Depreciation of building, property and equipment | 25,624 | | 35,516 |
EBITDA1 | 4,898,150 | | 1,478,203 |
Adjustments: | | | |
Restructuring expense/other | 500,987 | | 614,490 |
Share based compensation | 601,586 | | 941,693 |
Adjusted EBITDA1 | $ 6,000,723 | | $ 3,034,386 |
"Adjusted net income" adjusts net income for share-based compensation expense, restructuring costs and non-recurring expense items. Non-recurring expense items are transactions or events which management believes will not re-occur within the foreseeable future and includes legal and professional fees related to claim settlements, acquisition, divestiture, asset impairment charges and going public transaction.
The table below reconciles net income to Adjusted net income for the three months ended March 31, 2024 and 2023.
| Three Months Ended March 31, | ||
In CAD $ | 2024 | | 2023 |
Net income | $ 5,108,563 | | $ 1,288,876 |
Add: | | | |
Amortization of intangible assets | 1,220,356 | | 571,983 |
Depreciation of building, property and equipment | 25,624 | | 35,516 |
Restructuring expense/other | 500,987 | | 614,490 |
Share based compensation | 601,586 | | 941,693 |
Adjusted net income1 | $ 7,457,116 | | $ 3,452,558 |
"Adjusted net income " per share is calculated as Adjusted net income divided by the basic weighted average number of shares outstanding during the period.
The Company defines its free cash flow as cash from operating activities less cash used in investing activities (including additions to intangible assets and purchase of building, property and equipment). The table below reconciles cash from operating activities to free cash flow for the three months ended March 31, 2024 and 2023.
| Three Months Ended March 31, | ||
In CAD $ | 2024 | | 2023 |
Cash from operating activities | $ 7,546,074 | | $ 7,701,845 |
Less: Cash used in investing activities: | | | |
Purchase of building, property and equipment | (30,742) | | (1,283) Werbung Mehr Nachrichten zur Paymentus Holdings Inc Aktie kostenlos abonnieren
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