Points selected by eBay as vendor for new Loyalty Initiative@
eBay Anything Points' Seller Issuance Tool powered by Points.com
TORONTO, Nov. 24 /CNW/ - As announced on August 26, 2003, Points
International Ltd. (TSX-VEN: PTS), operator of pointsxchange(R), the only
independent loyalty program currency exchange - at www.points.com - has,
again, been selected as a key vendor and entered into a multi year, formal
agreement with eBay Inc. The agreement engages Points International to develop
and power new functionality for eBay Anything Points that will enable sellers
to offer points to buyers.
In addition to becoming a partner with pointsxchange(R), as
announced May
20, 2003, eBay has selected Points to develop, and operate the Offer Manager
for their Anything Points, eBay's new member loyalty program. The Offer
Manager will allow eBay sellers to issue eBay Anything Points to buyers who
purchase their goods and services on eBay. The Offer Manager complements the
current set of tools and features that eBay sellers can use to increase their
business on eBay.
""Points International has been selected as our key vendor for
delivering
this very exciting service to our community at eBay. We have been very pleased
with our partnership on the Points Exchange and remain very impressed with
Points International's technical custom service solutions,"" says Todd Kurie,
Director of Loyalty at eBay Inc.
""We welao?YKQe opportunity to develop and operate the Offer
Manager as
we believe it a key tool for expansion of the eBay Anything Points program and
a wonderful extension of our multi-faceted and growing relationship with eBay.
We are pleased to have entered into our third material contractual
relationship with a landmark partner and an industry leader. We applaud eBay
for offering this great new tool to their users,"" says Rob MacLean, CEO of
Points.
Points earns revenue in the form of upfront development fees and
monthly
hosting fees, and will also receive a portion of proceeds from the value of
points issued via the Offer Manager.
During May 2003, eBay's Anything Points program became an anchor
pointsxchange(R) partner, and Points International implemented a number of
Points Solutions to power core elements of the eBay program.
The suite of Points Solutions that will deliver features for the
eBay
Anything Points program include:
- Pointsxchange(R) - powering the exchange of Anything Points among
select pointsxchange partners at www.points.com.
- pointsintegrate - powering integration between Anything Points
and its
""earn"" partners such as Lending Tree and the eBay Anything
Points MBNA
MasterCard, and facilitating the posting of points into
individual
member accounts.
- private label conversion - powering the conversion of points from
member accounts of ""conversion"" partners (such as Hilton
HHonors) to
eBay Anything Points accounts.
More about Points International Ltd. and www.points.com
Points operates the only independent points exchange - at
www.points.com
- allowing consumers to exchange points and miles from one participating
loyalty program to another to achieve the rewards they want faster than ever
before.
Pointsxchange(R) has to date attracted nearly 40 partners, including
industry leaders eBay (Anything Points), American Airlines (AAdvantage),
InterContinental Hotels (Priority Club(R) Rewards), Air Canada (Aeroplan),
Delta Air Lines (Sky Miles), Imperial Oil (Esso Extra), GiftCertificates.com,
Fairmont Hotels & Resorts, Cathay Pacific Airways (Asia Miles), American West
Airlines (FlightFund), Alaska Airlines (Mileage Plan), Sprint, JCPenney and
many more.
Through a portfolio of custom technology solutions, Points is
building
rewarding partnerships with the world's leading loyalty players. Additional
Points Solutions include the innovative pointspurchase(TM) and pointsgift
solutions, which power the online sale of miles and points to members of
leading loyalty programs.
Points Solutions, including pointsxchange, are internationally
marketed
to travel providers and loyalty programs through a distribution alliance with
Sabre, the leading provider of technology, distribution and marketing services
for the travel industry.
Points' shares trade on the TSX Venture Exchange under the stock
symbol
PTS.
About eBay
eBay is the world's online marketplace(TM). Founded in 1995, eBay
created
a powerful platform for the sale of goods and services by a passionate
community of individuals and businesses. On any given day, there are millions
of items across thousands of categories for sale on eBay. eBay enables trade
on a local, national and international basis with customized sites in markets
around the world.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
-0- 11/24/2003
/For further information: visit www.points.com or contact Media
Inquiries: Scott Goldberg, Edelman Public Relations, (312) 297-7414,
scott.goldberg(at)edelman.com; Investor Inquiries: Christopher Barnard,
President, Points International Ltd, (416) 596-6381,
Christopher.Barnard(at)points.com; Business Inquiries: Morley Ivers, Vice
President, Business Strategy, Points International Ltd, (416) 596-3254,
morley.ivers(at)points.com; Mr. Todd Kurie, Director, Buyer Loyalty, eBay
Inc., (408) 376-6131, tkurie(at)ebay.com/
(PTS.)
CO: Points International Ltd.
ST: Ontario
IN: MLM
SU: CON
-30-
"
-30-
"
and the earnings (loss) before undernoted under
Other in the consolidated statements of earnings (loss). This
charge
comprises contract termination costs amounting to $7.3 and the
write
off of leasehold improvements amounting to $1.0. The Company
does not
anticipate incurring further charges associated with this
abandonment.
Upon abandoning this leased property, terms of the existing head
office lease were modified resulting in an extended lease term
and
related lease inducements. The benefit of these lease
inducements
will be recognized in earnings over the modified lease term.
As the results of operations by segment are presented on the
consolidated statements of earnings, the information is not
repeated
in this note. As shown on the consolidated statements of
earnings,
the Company's revenue, direct operating profit and earnings
before
undernoted related to the Broadcast Group are reported with a
distinction between the Company's operating channels and
developing
channels. The Company's specialty television channels are
transferred
from developing channels status to operating channels status at
the
earliest of (a) two years from the date of launch of the
service,
(b) when management's predetermined subscriber level has been
attained, or (c) the net earnings break-even point for the new
business has been attained. Management has not presented the
Broadcast Group's total assets or additions to property and
equipment
and goodwill using the same distinction as many of these assets
are
commonly used by both sets of channels. As a result, the
following
table shows these amounts for the Broadcast Group as a whole.
Information on the reportable operating segments is as follows:
---------------------------------------------------------------------
Motion
Picture
Distri- Enter-
Broadcast bution tainment
Group Group Group Other
Total
---------------------------------------------------------------------
Three months ended
September 30, 2003
Goodwill 40.9 2.0 109.6 -
152.5
Total assets 426.1 296.4 917.6 87.1
1,727.2
Additions to
long-lived assets - 0.1 1.0
0.6 1.7
---------------------------------------------------------------------
2002 (revised)
Goodwill 40.9 2.0 109.6 -
152.5
Total assets 403.3 238.4 1,042.9 119.9
1,804.5
Additions to
long-lived assets - - 0.7
0.7 1.4
---------------------------------------------------------------------
Six months ended
September 30, 2003
Goodwill 40.9 2.0 109.6 -
152.5
Total assets 426.1 296.4 917.6 87.1
1,727.2
Additions to
long-lived assets 0.1 0.1 1.2
1.0 2.4
---------------------------------------------------------------------
2002 (revised)
Goodwill 40.9 2.0 109.6 -
152.5
Total assets 403.3 238.4 1,042.9 119.9
1,804.5
Additions to
long-lived assets 0.3 0.1 1.1
1.4 2.9
---------------------------------------------------------------------
For the three months ended September 30, 2003, segment
revenues, as
shown on the consolidated statements of earnings, are net of
intersegment sales of programming of $2.9 (2002 - $1.9) from the
Motion Picture Distribution Group to the Broadcast Group and
$0.5
(2002 - $0.5) from the Entertainment Group to the Broadcast
Group.
For the six months ended September 30, 2003, segment revenues,
as
shown on the consolidated statements of earnings, are net of
intersegment sales of programming of $6.0 (2002 - $4.7) from the
Motion Picture Distribution Group to the Broadcast Group and
$1.3
(2002 - $1.0) from the Entertainment Group to the Broadcast
Group.
Geographical information, based on customer location, is as
follows:
-------------------------------------
Three months ended Six months
ended
September 30
September 30
-------------------------------------
2003 2002 2003
2002
-------------------------------------
Revenue (revised)
(revised)
Canadian 175.2 175.0 282.9
283.7
U.S. 14.1 26.2 33.0
37.0
Other Foreign 27.3 41.4 64.7
84.5
-------------------------------------
216.6 242.6 380.6
405.2
-------------------------------------
-------------------------------------
All of the Company's broadcast licences and goodwill, and the
majority of the Company's property and equipment, are in Canada.
The following table outlines further information on the
Company's
Broadcast Group revenue that has not been shown on the
consolidated
statements of earnings.
-------------------------------------
Three months ended Six months
ended
September 30
September 30
-------------------------------------
Broadcast Group Revenue 2003 2002 2003
2002
------------------
------------------
Operating Channels
Subscriber 21.9 19.2 42.2
38.7
Advertising and other 21.4 17.4 47.8
36.7
-------------------------------------
43.3 36.6 90.0
75.4
-------------------------------------
-------------------------------------
Developing Channels
Subscriber 4.9 4.0
9.7 7.4
Advertising and other 0.7 0.8
1.6 1.6
-------------------------------------
-------------------------------------
5.6 4.8
11.3 9.0
-------------------------------------
-------------------------------------
Total Broadcast Group 48.9 41.4 101.3
84.4
-------------------------------------
-------------------------------------
10. New accounting standards
a) On April 1, 2003, the Company adopted the recommendations of
the new
CICA Handbook Section 3063, ""Impairment of Long-Lived
Assets"", on a
prospective basis. Under this section, an impairment loss is
measured
as the difference between the carrying value of an asset and
its fair
value. The adoption of this standard had no material impact on
the
Company's results of operations or financial position.
b) On April 1, 2002, the Company adopted the recommendations of
the new
CICA Handbook Section 3870, ""Stock-Based Compensation and Other
Stock-Based Payments"", on a prospective basis. The new standard
requires that, for all stock-based payments to non-employees
and to
employees where the stock-based awards call for settlement in
cash or
other assets, including stock appreciation rights, a
compensation
expense be recognized in the statement of earnings, determined
using
a fair value based method of accounting. There was no impact on
the
Company's net earnings or earnings per share for the year ended
March 31, 2003 as a result of the adoption of this new
standard. The
Company was previously in compliance with this new standard as
the
compensation costs associated with such payments and awards were
expensed in the statement of earnings.
Additionally, for stock options granted to its employees, the
new
standard does not require the Company to recognize a
compensation
expense if the Company chooses the disclosure-only method of
adoption. Consideration paid by employees on the exercise of
stock
options is recorded as an increase in the Company's cash and
share
capital accounts. The Company has, however, chosen to record
compensation expense related to the grant of stock options to
its
employees.
c) On April 1, 2002, the Company retroactively adopted the
recommendations of the revised CICA Handbook Section 1650,
""Foreign
Currency Translation."" The revisions eliminate the deferral and
amortization of foreign currency translation gains and losses on
long-lived monetary items. At March 31, 2002, the Company had
$12.0
of unamortized foreign exchange losses related to the
translation of
U.S. dollar denominated senior subordinated notes. Accordingly,
other
assets were reduced by $12.0, opening retained earnings reduced
by
$10.2 and future income taxes increased by $1.8.
d) On April 1, 2002, the Company adopted the recommendations of
Accounting Guideline AcG-13, ""Hedging Relationships."" The new
standard establishes criteria for identification and
documentation of
hedging relationships. There was no impact on net earnings,
basic
earnings per share and diluted earnings per share as a result
of the
adoption of the new standard.
11. Unusual items
During the six months ended September 30, 2003, the Company
recorded
the following unusual items:
In July 2003, the Company made a final production financing
non-fulfillment payment of $1.3 to Serendipity Point Projects
Inc.
(""Serendipity"") pursuant to the terms of the production
agreement
dated July 18, 1998 between the Company and Serendipity. The
Company
does not expect to make any further production financing
non-fulfillment payments pursuant to this agreement.
During the six months ended September 30, 2002, the Company
recorded
the following unusual items:
In April 2002, the Company reduced its staffing levels in the
Broadcast Group. The Company incurred $0.6 in restructuring
charges
including cash expenses for employee severance and professional
fees
related to the elimination of 37 positions.
In May 2002 and September 2002, the Company made production
financing
non-fulfillment payments of $3.0 and $2.4 respectively to
Serendipity
Point Projects Inc. (""Serendipity"") pursuant to the terms of
the
production agreement dated July 18, 1998 between the Company and
Serendipity.
12. Contingency
The Company is periodically subject to reassessments in respect
of
prior years' tax returns. In December 2002, a subsidiary of the
Company received an income tax reassessment for approximately
$14.0,
including interest and penalties. The Company intends to pursue
all
available administrative and judicial appeals in respect of this
reassessment. The Company strongly believes that it will prevail
because, in the opinion of management, the reassessment runs
counter
to the applicable law and certain previous rulings. A liability
for
the amount will be recorded should it become probable that the
income
tax authority's position will be upheld.
13. Seasonality
The financial position and results of operations for any period
are
significantly dependent on the number, timing and commercial
success
of film and television programs delivered or made available to
various media, none of which can be predicted with certainty.
Consequently, the financial position and results of operations
may
fluctuate materially from period to period and the results of
any one
period are not necessarily indicative of results for future
periods.
Cash flows may also fluctuate and are not necessarily closely
correlated with revenue recognition. A large percentage of a
television program's revenue is recognized when the programming
is
delivered pursuant to a non-cancellable agreement, provided the
licence period has commenced. Minimum guaranteed revenue from
motion
picture license agreements are typically recognized when the
licence
period begins and the motion picture is delivered. Revenue from
subsequent licencing of delivered programming, including rerun
strip
syndication (i.e., sales of previously-aired episodes licensed
for
broadcast in a five-day-a-week format) are recognized on the
commencement of the license agreement and delivery of the film
or
television program.
Although industry practices are changing, due, in part, to
increased
competition from new channels, broadcasters make most of their
annual
programming commitments between February and June so that new
television programs are ready for telecast at the start of the
broadcast season in September or as mid-season replacements in
January. Because of this annual production cycle, television
revenue
is not earned evenly throughout the year. In particular,
television
revenue is generally lowest in the second calendar quarter, as
fewer
programs are completed and delivered during this period and
higher in
the first, third and, particularly the fourth calendar quarter.
Also,
debt levels generally increase substantially between the fiscal
year
end on March 31 and the end of the first quarter on June 30 as
the
Company finances productions to be delivered later in the year.
In
addition, the delivery schedules of motion pictures are
difficult to
predict and not consistent from year to year. Consequently,
motion
picture production revenue fluctuates from period to period. |
