SOURCE: DirectCash Payments Inc.

DirectCash Payments Inc.

July 15, 2015 08:30 ET

DirectCash Payments Inc. Announces Operational Highlights and Conference Call for the Three and Six Months Ended June 30, 2015, and Change to Management

CALGARY, AB--(Marketwired - July 15, 2015) - DirectCash Payments Inc. (TSX: DCI) ("DCPayments" or the "Company") today announced select operational highlights results and conference call details for the three and six months ended June 30, 2015, as well as the appointment of Mr. Patrick W. Moriarty, C.A. as Chief Financial Officer ("CFO").

Operational Highlights:

  • Successfully implemented consumer direct charge increases across the network in Australia and Canada over the course of the three months ended June 30, 2015
  • Successfully launched DC TAG with credit union client in British Columbia
  • Implemented Dynamic Currency Conversion ("DCC") in Australia and the United Kingdom
  • Completed roll out of Bank of Montreal branded ATMs at approximately 400 Shell Canada Products locations exclusively across Canada
  • Increased ATM transactions by 8% and 5% respectively for the three and six months ended June 30, 2015 compared to the prior year periods
  • Increased the number of active ATMs as at June 30, 2015 by 6% to 21,509 as compared to the prior year
  • Subsequent to the quarter, completed transition of the Morrison's ATM Fleet adding approximately 220 ATMs in total to the United Kingdom fleet, of which 217 were transacting as at June 30, 2015
  • Subsequent to the quarter, acquired A$2.0 million of ATM assets, including processing contracts for approximately 250 ATM locations in Australia

Management's Commentary
"We are very encouraged by our preliminary operating statistics for the second quarter in our diversified worldwide business. We continue to focus on growth and expansion of product offerings. Looking forward to the remainder of 2015, we are well positioned to continue to grow and diversify our business, while generating shareholder value" said Jeffrey Smith, DCPayments' President and Chief Executive Officer.

DCPayments will pursue growth through additional accretive acquisitions at reasonable multiples as opportunities arise. DCPayments' stable and contracted revenue stream in our various geographic markets will continue to provide consistent cash dividends to DCPayments' Shareholders.

Summary Operating Results
  Three months ended  Six months ended
  June 30  June 30
  2015 2014  2015 2014
Summary operating results         
Number of machines         
Active ATM terminals(1) 21,509 20,232  21,509 20,232
 Americas 8,200 8,449  8,200 8,449
 Australasia 7,446 6,196  7,446 6,196
 Europe 5,863 5,587  5,863 5,587
          
ATM transactions, thousands 32,993 30,660  63,431 60,201
Average Monthly ATM Transactions per terminal 511 505  491 496
1DCPayments has included statistics only for sites that recorded a transaction in the last calendar month of the period indicated

In the Americas, the number of active ATMs decreased by 249 as compared to the prior year period. The decrease was driven by the removal of approximately 224 ATMs from Mac's Convenience Stores ("Mac's") in Canada due to contract expiration and approximately 124 ATMs from Target stores in Canada that closed, offset by the new terminals installed as a result of the partnership between the Bank of Montreal ("BMO") and DCPayments to deploy BMO branded ATMs to Shell Canada Products locations across Canada exclusively and ATMs installed for temporary events. The Company is excited to retain and grow the Mac's business in the Other Services business segment, where it will gain the processing business of an additional approximate 830 ATMs in select Mac's, Couche-Tard and Circle K locations across Canada through its operation of The EXCHANGE® Network, which was part of the credit union and other financial institution processing and outsourcing services business acquired from Threshold Financial Technologies Inc. in 2013.

In Australasia, the number of active ATMs increased by 1,250 or 20% as at June 30, 2015 compared to the prior year period. This increase is primarily attributable to the previously announced acquisition of Ezeatm Limited ("Eze") on October 31, 2014. Excluding the active Eze ATMs, as at June 30, 2015 the transacting Australasian ATM fleet was consistent compared to the prior year.

In Europe, the number of active ATMs increased by 276 year over year primarily due to the Morrison's stores ATMs purchased from HSBC Bank Plc in the United Kingdom in March, 2015, as well as continued organic expansion in the market.

ATM transactions increased by 8% and 5% respectively during the three and six months ended June 30, 2015 as compared to the prior year period. Transactions per ATM in Australasia have not been further impacted by the deployment of the tap and pay technology, as the step-down previously disclosed remained consistent during the second quarter. DCPayments has not experienced declines in transactions per ATM during Q2 2015, as compared to the prior year, as a result of the consumer direct charge increases implemented during the quarter.

Consumer Direct Charge Increases
DCPayments' focus in the ATM business continues to be on managing ATM profitability. Over the course of the three months ended June 30, 2015, the Company implemented increases to the consumer direct charge across its network in Canada and Australasia. In Canada, DCPayments has adjusted its network direct charge in response to a market shift, following the majority of Canadian banks who increased the direct charge on their deployed ATM fleet to $3.00 earlier in 2015.

DCPayments has not experienced declines in average transactions per ATM during the period as a result of these pricing changes.

Appointment of New Chief Financial Officer
As part of our global realignment of management resources, Mr. Moriarty, the current General Manager of Finance for the Company in Australia, will assume the role of CFO for DCPayments, as well as the various other limited partnerships, partnerships, corporations, and subsidiaries that are part of the DCPayments group effective immediately (collectively referred to as "DCPayments"). DCPayments current CFO, Ms. Brenda G Hughes continues to be an integral part of the DCPayments management team. Ms. Hughes will assist in the transition to Mr. Moriarty as CFO and will continue to contribute to the long term success of DCPayments with her valuable skill set.

Mr. Moriarty has been employed with DCPayments since December 2009 and has extensive experience in the payments business. Mr. Moriarty has been an integral part of the management team in Australasia and will be an excellent addition to the global finance team of DCPayments. Prior to DCPayments, Mr. Moriarty worked with KPMG Melbourne in the Audit and Risk Advisory service department. Mr. Moriarty is a member of the Institute of Chartered Accountants Australia and holds a Bachelor of Accounting degree from Flinders University of South Australia.

Mr. Moriarty's contact information is as follows:

Patrick Moriarty
Chief Financial Officer
DirectCash Payments Inc.
Direct: (905) 461-2285
e-mail: pmoriarty@directcash.net

Management's Commentary
"We are pleased to have Patrick assume the role of CFO and his continued contribution to our success as his experience and skill set significantly augments our global management team" said Jeffrey Smith, DCPayments' President and Chief Executive Officer.

Conference Call
DCPayments' consolidated financial results for the three and six months ended June 30, 2015 will be released to the market on Thursday, August 13, 2015 after market close. A conference call will be held on Friday, August 14, 2015 at 10:00 a.m. Mountain Standard Time (MST) to review second quarter 2015 results. Jeffrey J. Smith, President & CEO, Patrick W. Moriarty, Chief Financial Officer, and Amanda J. Gallacher, Vice President, Corporate Strategy & Acquisitions, will host the call. The financial results, and an accompanying presentation, will be available on the Company website at www.directcash.net prior to the conference call.

DCPayments invites participants to listen to the conference call by calling toll-free 1-800-355-4959 or locally 1-416-340-8527. A replay of the conference call will be available until Friday, August 21, 2015 by dialing toll-free 1-800-408-3053 or locally 1-905-694-9451 and entering passcode 4807383.

Forward Looking Information:
This press release offers our assessment of DCPayments' future plans and operations and contains "forward-looking information" relating to future events as defined under applicable Canadian securities legislation.

The forward-looking information is expressly qualified by this cautionary statement. Certain statements that contain words such as "could", "may", "believe", "should", "expect", "will", "intends", "plan", "anticipates", "potential", "estimates", "continues" or similar words relating to matters that are not historical facts constitute "forward-looking information" within the meaning of applicable Canadian securities legislation.

Specifically, forward-looking information and statements contained in this press release include statements related to DCPayments' projected growth in business and operations in our various business segments in the Americas, Australasia and Europe, expected impact on revenue of our increase to the consumer direct charge across our network in Canada and Australasia and when that impact is expected to become evident, intention to complete quality accretive acquisitions at reasonable multiples on a go forward basis as opportunities arise, ability to provide consistent cash dividends, ability to drive growth and increase our margins, expansion of DCPayments' merchant base through new and innovative products and services, ability to continue to acquire long-term recurring services contracts and negotiate renewals thereof in advance of their expiry, ability to maintain current customer relationships, ability to add product offerings in the markets we operate in, ability to diversify both domestically and internationally and the possible increase in capital expenditures for technology and infrastructure or due to regulatory mandated security upgrade changes and the sufficiency of funds generated from operations to fund the same.

Readers are cautioned that our expectations, estimates, projections and assumptions used in the preparation of such forward-looking information and statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking information. The Company's actual results or performance could differ materially from those expressed in, or implied by, this forward-looking information. DCPayments can give no assurance that any of the events anticipated will transpire or occur or, if any of them do, what benefits or costs we will derive from them. Forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond DCPayments' ability to control, including but not limited to general economic conditions, interest rates, foreign currency rates, consumer spending, borrowing trends and regulatory changes to name a few. Additional risks and uncertainties are described in DCPayments' Annual Information Form for the year ended December 31, 2014 which is available at www.SEDAR.com.

With respect to forward-looking statements and information contained within this press release, expectations are based on our current strategic plan and management forecasts, historical financial performance and operational data, and our existing contracts schedule.

The assumptions and estimates relating to the forward-looking information referred to above are updated quarterly and except as required by law, we do not undertake to update any other forward-looking information.

Additional information about DCPayments is available on SEDAR (www.sedar.com) or DCPayments' website at www.directcash.net.

Contact Information

  • For further information please contact:

    Amanda J. Gallacher
    Vice President, Corporate Strategy & Acquisitions
    Direct Telephone: (403) 387-2158
    Fax: (403) 451-3058
    e-mail: investorrelations@directcash.net

    or

    Jeffrey J. Smith
    President & Chief Executive Officer
    Direct Telephone: (403) 387-2101
    Fax: (403) 451-3001
    e-mail: jeff@directcash.net