OPAY 4th quarter numbers customers up huge%%---->
Official Payments Corporation Announces Fourth
Quarter and Fiscal 1999 Financial Results; Fourth
Quarter Revenues Grew 75%; Government Clients
Increased by 77% in 1999
NEW YORK--(BUSINESS WIRE)--Jan. 26, 2000--Official Payments Corporation
(NASDAQ:OPAY), a leading provider of electronic payment options to government entities,
today announced 1999 fourth quarter and year-end financial results.
Revenues for the fourth quarter ended December 31, 1999 were 1.63 million, a 75 increase
over revenues of 935,000 for the fourth quarter ended December 31, 1998. Operating loss
for the quarter, excluding the amortization of stock-based compensation was, 1.82 million.
During the corresponding quarter in 1998, which did not have any amortization of
stock-based compensation, operating income was 1,000.
The net loss for the quarter ended December 31, 1999 was 8.86 million. Based on 21.3
million basic and diluted shares outstanding as of December 31,1999, the pro forma fourth
quarter net loss totaled 0.42 per share.(1) This compares to a loss of 17,000, or a basic and
diluted net loss of 0.00 per share based on 15.0 million shares outstanding for the quarter
ended December 31, 1998.
For the year ended December 31, 1999, revenues increased 273, to 8.84 million from
revenues of 2.37 million for the year ended December 31, 1998. Operating loss before
amortization of stock-based compensation for the year ended December 31, 1999 was 2.82
million, as compared to the operating loss of 270,000 for the year ended December 31,
1998, which did not include any amortization of stock-based compensation. The net loss for
the year ended December 31, 1999 was 10.40 million. Based on 21.3 million basic and
diluted shares outstanding as of December 31, 1999, the pro forma full year net loss totaled
0.49 per share.(2) This compares to the net loss of 325,000 or 0.02 per share in 1998.
During 1999, the Company's government client base increased 77, from 264 at year-end
1998 to 467 at year-end 1999. Additionally, the number of payment services provided on
behalf of those clients increased 53, from 373 to 570 total payment services.
At the end of 1999, Official Payments Corp. had contracts with the Internal Revenue Service
(IRS) and the states of California, New Jersey, Connecticut, Illinois and the District of
Columbia. In January, the company has also signed contracts with the State of Oklahoma
and the State of Minnesota.
"Since the beginning of the fourth quarter, we successfully completed our IPO, substantially
increased our client base by four states and dozens of municipalities, and picked up additional
services from existing clients," said Thomas R. Evans, Chairman and Chief Executive Officer
of Official Payments Corp.
"With this tax season approaching, we believe that our growth will be enhanced, as we, our
government clients and credit card partners actively market our services," continued Mr.
Evans. "For the first time, our service is being promoted in the 140 million tax instruction
booklets which the IRS provides to taxpayers. Most of our state clients and many of our
municipal clients are featuring our service in the materials sent to their constituents. And for
the first time, we will be running our own consumer advertising campaign to increase
awareness and drive customer utilization during the weeks preceding tax day, April 17,
2000."
Recent highlights include:
- Thomas R. Evans was named Chairman and CEO of the Company. Mr.
Evans was previously the President and CEO of GeoCities.
- In October, the Company changed its name from U.S. Audiotex
Corporation to Official Payments Corp., and announced several key
management additions.
- On November 23, 1999, the Company's Initial Public Offering of
5,750,000 shares of common stock began trading on the Nasdaq
National Market. The shares were priced at 15 per share,
providing the Company with over 80 million in cash.
- The Company signed separate agreements with the Connecticut
Department of Revenue Services and the State of Illinois
Treasurer's office. Official Payments Corp. will provide those
states' taxpayers with the ability to pay 1999 state income tax
balance-due payments by credit card.
- During the fourth quarter of 1999, ETRADE Group, Inc.
(NASDAQ:EGRP) and Official Payments Corp. entered into a
strategic alliance. As part of this arrangement, ETRADE
purchased 5 million of Official Payments Corp. common stock
prior to the firm's November 23, 1999 initial public offering. In
addition to the investment, Christos M. Cotsakos, Chairman & CEO
of ETRADE Group, Inc., joined Official Payments Corp.'s Board of
Directors. The companies have also entered into a cross-marketing
relationship.
- On January 14, 2000, the Company announced that it signed an
agreement with the State of Oklahoma to allow the state's
residents to pay their 1999 balance-due state income tax bills by
credit card over the Internet.
- On January 20, 2000, Official Payments Corp. announced it had
been awarded additional contracts with the Franchise Tax Board of
California. These new contracts allow California taxpayers to pay
their 1999 balance-due and extension tax payments by credit card
over the Internet or telephone, in addition to delinquent and
estimated payments.
- On January 25, 2000 the Company announced it signed an agreement
with the State of Minnesota, allowing the state's residents to
pay their 1999 balance-due state taxes by credit card over the
Internet or telephone.
About Official Payments Corp.
Official Payments Corp. is a leading provider of electronic payment options to government
entities. The Company enables consumers to pay government fees and taxes via the Internet
or telephone, using their credit cards. The Company has partnered with the United States
Internal Revenue Service, several state governments, including California, Connecticut,
Illinois, New Jersey, Minnesota, Oklahoma, the District of Columbia and over 450 municipal
and county entities, in which it collects property taxes, real estate taxes, traffic fines and other
government fees by credit card over the Internet and the telephone. The Company is publicly
listed on Nasdaq under the symbol OPAY. Official Payments Corp. is committed to making
payments to the government go fast, smart and safe.
Statements contained in this release may be deemed to contain forward-looking statements
that involve risks and uncertainties, including, but not limited to, statements regarding the
Company's competitive position and business model and expected growth of electronic
payments to government entities. All forward-looking statements included in this press release
are based upon information available to Official Payments Corp. as of the date of the release,
and the Company assumes no obligation to update any such forward-looking statements.
Actual results may differ materially from those anticipated in, or caused by, any
forward-looking statements as a result of certain risks and uncertainties, including, without
limitation, the general economic and business conditions, major systems failures, constraints in
capacity, rapid technological changes, maintenance of government contracts, competitive
nature of the market in which the Company competes, the early stage of development of the
Company's products, and the lack of market acceptance of the Company's products. These
and other risks and uncertainties associated with the Company's business are detailed in the
Company's registration statement on Form S-1 declared effective on November 23, 1999 by
the Securities and Exchange Commission.
Note: Official Payments Corp. and Official Payments Corp. logo 1-888-2-PAYTAX are
registered trademarks. All other products or company names mentioned are used for
identification purposes only, and may be trademarks of their respective owners.
(1) Basic and diluted net loss of 0.50 per share based on 17.7
million weighted average shares outstanding.
(2) Basic and diluted net loss of 0.66 per share based on 15.7
million weighted average shares outstanding. NOTE TO EDITORS: In the company name
ETRADE noted in this news release, there is an asterisk between E and TRADE. This
symbol may not appear properly in some systems.
Official Payments Corp.
Condensed Statements of Operations
(In thousands, except per share data)
Three months ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1999 1998
Revenues:
Transaction fees $ 1,597 $ 790 $ 8,592 $ 2,076
Other revenues 36 145 249 293
Total revenues 1,633 935 8,841 2,369
Cost of revenues:
Cost of transaction
fees 1,026 416 6,332 1,009
Cost of other
revenues 83 58 204 71
Total cost of
revenues 1,109 474 6,536 1,080
Gross profit 524 461 2,305 1,289
Operating expenses:
Sales and marketing 565 69 1,301 356
Development costs 384 133 1,032 608
General and
administrative 1,397 258 2,789 595
Deferred stock
compensation 7,424 7,940
Total operating
expenses 9,770 460 13,062 1,559
Income (loss) from
operation (9,246) 1 (10,757) (270)
Other income (expense),
net 384 (18) 357 (55)
Net income (loss) $ (8,862) $ (17) $ (10,400) $ (325)
========= ========= ========= =========
Basic and diluted net
income (loss) per
share $ (0.50) $ $ (0.66) $ (0.02)
========= ========= ========= =========
Basic and diluted net
income (loss) per
share excluding
deferred stock
compensation $ (0.08) $ $ (0.16) $ (0.02)
========= ========= ========= =========
Weighted average
shares used in basic
and diluted net
income (loss) per
share 17,687 15,000 15,677 15,000
========= ========= ========= =========
Pro forma basic and
diluted net income
(loss) per share (i) $ (0.42) $ (0.49)
========= =========
Number of shares used
in pro forma basic
and diluted net
income (loss) per
share 21,263 21,263
========= =========
Note
(i) Pro forma presentation assumes that the Company's IPO occurred at
the beginning of the period presented.
Official Payments Corp.
Balance Sheet
(In thousands)
December 31,
1999 1998
ASSETS
Current assets:
Cash $ 1,643 $ 631
Investments 78,871
Accounts receivable, net 1,135 554
Prepaid expenses and other current
assets 849 29
Total current assets 82,498 1,214
Property and equipment, net 1,802 533
Total assets $ 84,300 $ 1,747
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
expenses $ 2,077 $ 654
Deferred revenue 65 99
Current portion of notes payable
and capital lease obligations 206 69
Total current liabilities 2,348 822
Notes payable and capital lease
obligations 391 241
Notes payable to related party 500
Total liabilities 2,739 1,563
Stockholders' equity:
Common stock 213 150
Additional paidin capital 127,707 1,028
Deferred stockbased
compensation (34,964)
Accumulated deficit (11,395) (994)
Stockholders' equity 81,561 184
Total liabilities and
stockholders' equity $ 84,300 $ 1,747
========== ==========
Contact:
Official Payments Corp.
Bruce J. Zanca, 917/322-2540
E-Mail:
BZANCA@OFFICIALPAYMENTS.COM
or
The Abernathy MacGregor Group
Carina Thate, 212/371-5999
E-Mail:
CCT@ABMAC.COM |
