Points International Ltd., owner and operator of reward program management Website Points.com, today announced a business update and issued an update for its full year 2010 financial guidance, preliminary financial guidance for 2011, and an update on the company’s previously announced share consolidation.
For the 12 months ended December 31, 2010, the company updated its guidance, stating that it 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, representing year-over-year anticipated revenue growth of approximately 19 percent.
Net income, which is expected to be positive on a full year basis, is forecasted to increase significantly year-over-year.
The company is initiating its financial guidance for the year ended December 31, 2011, reporting expectations of revenue in the range of $120 million to $130 million, a 26 percent to 37 percent year-over-year increase from the company’s 2010 estimated revenues of $95 million.
Points International CEO Rob MacLean said the anticipated growth is derived primarily from expansion of its core business and the establishment of new partnerships.
“Looking to 2011, we are optimistic about our prospects. In addition to expecting revenue growth of approximately 26 percent to 37 percent, we are forecasting meaningful EBITDA profitability. This profitable growth is expected to be driven primarily from the expansion of our core Loyalty Currency Services business through the addition of new partnerships as well as increased participation among our existing partnerships,” MacLean stated in the press release.
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 also today announced the board-approved share consolidation of its common shares through a 1-for-10 reverse split. 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 said it expects to have approximately 15.0 million common shares issued and outstanding.
The company has also filed an application to list its common shares on the NASDAQ Capital Market; shares of Points International will continue to be quoted on OTCBB until such time as the shares may be listed on the NASDAQ.
“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,” MacLean stated. “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 12 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.”
For more information visit www.pointsinternational.com
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