Calpian, Inc. (OTCQB: CLPI), a global mobile payments technology and
processing company, today released the company's 2014 Annual Report for
the fiscal year ending March 31, 2014, including for the first time the
consolidation of the company's Indian subsidiary Money-On-Mobile which
had previously been reported as an investment.
"Our company has continued to grow and we have strong opportunities
ahead as we expand both domestically and in India through
Money-On-Mobile," said Harold Montgomery, Calpian founder and CEO.
Annual 2014 and Fourth Quarter 2014 Financial Summary
Three Months Ended March 31
Revenues - Consolidated revenues were $54.9 million for the year
ending March 31, 2014. Revenues included only the fourth quarter of
Money-On-Mobile which contributed $29.7 million. Revenues also included
a full year of revenue from Calpian Commerce which was acquired in March
2013 and contributed $21.4 million of the total.
Revenue In India - Money-On-Mobile revenues were 8.97 billion
Indian rupees for the full year ending March 31, 2014. However, as
Calpian only achieved majority ownership in the fiscal fourth quarter,
only the fourth quarter's revenues were consolidated in Calpian's
financial results. (Note: the Indian Rupee to U.S. Dollar exchange rate
on March 31, 2014 was USD$1: INR 61.2).
Domestic Revenue in the U.S. - Domestic revenues were $25.5
million for the year ending March 31, 2014. Revenues included a full
year of revenue from Calpian Commerce which was acquired in March of
2013 and contributed $21.4 million of the total.
Income from Operations - Income from operations was a loss of
$5.0 million for the year ending March 31, 2014 which generally reflects
the Company's objectives to increase revenues as statement above, raise
capital and build our businesses. The losses include a number of
one-time costs further described below. The loss for the year ending
March 31, 2014 included a full year of results from Calpian Commerce
which was acquired in March of 2013, and contributed a $446,000
operating profit to the total. The 2014 loss also included one quarter
of results from Money-On-Mobile, which added $839,000 in operating
losses to the total.
Income from Operations in the U.S. - Domestic Income from
operations for 2014 was a loss of $4.8 million to which Calpian Commerce
contributed an operating profit of $446,000.
Income from Operations in India - Money-On-Mobile's loss from
operations was $839,000 or 51.3 million Indian rupees for the fourth
quarter of fiscal 2014 included in the consolidated results of Calpian
for the first time.
Non-GAAP Income from Operations - Non-GAAP Income from operations
was a gain of $851,000 for the year ending March 31, 2014. In
management's opinion, the prior fiscal year is not comparable on a
non-GAAP basis. Non-GAAP Income from operations for the full fiscal year
of 2014 includes an adjustment of $2.6 million for one-time costs
associated with fundraising (including commissions), a $509,000
adjustment for one-time legal and settlement costs, and a one-time
$403,000 charge for office consolidation and restructuring at Calpian
Commerce, as well as $2.3 million in residual portfolio amortization.
Non-GAAP Income from operations for the quarter ending March 31, 2014
was a loss of $905,000. In management's opinion, the prior fiscal
quarter in not comparable on a non-GAAP basis. Non-GAAP Income from
operations for the fourth quarter of 2014 includes an adjustment of $1.4
million for one-time costs associated with fundraising (including
commissions), as well as $818,000 in residual portfolio amortization.
Operating Margin - Changes in the Consolidated Operating Margin
are primarily driven by the changes in the proportional mix of the
Company's businesses. In the United States, these changes are the
residual acquisition business and Calpian Commerce, and in India,
Money-On-Mobile. The Operating Margin of 6% for the quarter ending March
31, 2014 is the most representative of the Company's current business
mix as the lower margin Money-On-Mobile business revenues continue to
grow and become a progressively large portion of the total. On a dollar
basis, the operating margin more than doubled year over year reflecting
the Company's aggressive growth strategy.
Operating Margin in the U.S. - The total dollar margin was
$7.6 million for the year ended March 31, 2014, up $5.0 million for the
year from $2.6 million in the prior year. However, the margin percentage
declined from 60% in 2013 to 28% in 2014. Both changes are the result of
adding the Calpian Commerce, a lower margin operating business, to the
higher margin residual acquisition business.
Operating Margin in India - As previously referenced,
Money-On-Mobile results were only consolidated for the fourth quarter of
2014. For the one quarter included, Money-On-Mobile contributed $508,000
to the total gross margin in 2014, a margin of 1.71% of revenues.
Net Income - Comprehensive Net Income was a loss of $6.0 million
for the year ending March 31, 2014 as compared with $4.2 million for the
prior year. Comprehensive Net Income for the quarter ending March 31,
2014 was a gain of $2.2 million. These results include the effects of
reflecting Money-On-Mobile as a subsidiary of Calpian, Inc. for the
first time. In prior reporting, Money-On-Mobile was reflected as an
Non-GAAP Net Income - Non-GAAP Comprehensive Net Income is
Non-GAAP Income from Operations plus interest expense. Management feels
that the majority of interest expense incurred supports the domestic
residual acquisition business, which is an inherent part of that
business and thus should be included when considering Non-GAAP Net
Diluted Earnings per Share (EPS) - Earnings per share was a loss
of 25 cents per share for the year ended March 31, 2014 compared to a
loss of 19 cents per share for the prior year. In the quarter ended
March 31, 2014, earnings per share were 4 cents per share compared to a
loss of 3 cents per share in the quarter ended March 31, 2013.
Non-GAAP Diluted Earnings per Share (EPS) - Non-GAAP Earnings per
share was a loss of 7 cents per share for the year ended March 31, 2014.
In the quarter ended March 31, 2014, Non-GAAP earnings per share were a
loss of 4 cents per share. These Non-GAAP earnings per share reflect the
adjustments previously referenced, plus the elimination of the
non-controlling interest which is not attributable to Calpian
Assets - Consolidated assets were $48.1 million for the year
ending March 31, 2014. Assets included $10.1 million of Calpian Commerce
assets and $15.9 in Money-On-Mobile assets. Also included in
consolidated assets is Calpian's history-to-date invested capital in the
Money-On-Mobile enterprise added to the consolidated balance sheet as
part of the conversion from the investment accounting method to the
equity accounting method when Calpian acquired majority control.
Equity - Total equity was $23.4 million for the year ending March
31, 2014, including the reversal of previously passed through losses
from the investment in Money-On-Mobile, which are now reflected as part
of the company's investment in the Money-On-Mobile enterprise as shown
in the consolidated assets of Calpian.
Cash - Calpian concluded the 2014 fiscal year with a partial
closing of an equity raise led by National Securities on March 31, 2014
that was a primary driver of the company's increase in cash to $8.0
million at year end.
"The change in fiscal year to March 31 and requisite audit of all our
balances, both domestically and abroad, has been a major undertaking,
but one we've executed efficiently and cost effectively without any
substantive adjustments to previously reported balances. Calpian is now
well positioned to move forward with timely financial reports that
fulfill reporting requirements in the U.S. and India with a single
annual audit in time periods that will be easy for our shareholders to
interpret," said Scott Arey, Calpian's Chief Financial Officer.
The financial information discussed herein does not purport to be
complete and is qualified in its entirety by reference to and should be
read together with financial statements and related notes appearing in
the Annual Report on Form 10-K filed on August 11, 2014.
About Calpian, Inc.
Calpian, Inc. (CLPI) is a global mobile payments technology and
processing company offering mobile payment services through Indian
subsidiary Money-On-Mobile and domestic transaction services through
Calpian Commerce. Money-On-Mobile is a mobile payments service provider
that enables Indian consumers to use their mobile phones to pay for
goods and services, or transfer funds from one cell phone to another
using simple SMS text functionality. Calpian Commerce provides the U.S.
merchant community with an integrated suite of payment processing
services and related software products. For more information, visit www.calpian.com.
Note to Investors:
This press release contains certain forward-looking statements based on
our current expectations, forecasts and assumptions that involve risks
and uncertainties. This release does not constitute an offer to sell or
a solicitation of offers to buy any securities of any entity.
Forward-looking statements in this release are based on information
available to us as of the date hereof. Our actual results may differ
materially from those stated or implied in such forward-looking
statements, due to risks and uncertainties associated with our business,
which include the risk factors disclosed in our Form 10-K filed on
August 11, 2014. Forward-looking statements include statements regarding
our expectations, beliefs, intentions or strategies regarding the future
and can be identified by forward-looking words such as "anticipate,"
"believe," "could," "estimate," "expect," "intend," "may," "should," and
"would" or similar words. We assume no obligation to update the
information included in this press release, whether as a result of new
information, future events or otherwise. Any forecasts that are provided
by management in this presentation and are based on information
available to us at this time and management expects that internal
projections and expectations may change over time. In addition, the
forecasts are entirely on management's best estimate of our future
financial performance given our current contracts, current backlog of
opportunities and conversations with new and existing customers about
(In dollars, except for per share amounts)
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