SOURCE: Trycera Financial, Inc.

May 21, 2007 19:28 ET

Trycera Financial Announces First Quarter 2007 Financial Results

Financial Services Company Specializing in the Delivery of Prepaid Card Programs and Products Continues Sequential Growth in All Areas

IRVINE, CA -- (MARKET WIRE) -- May 21, 2007 -- Trycera Financial, Inc. (OTCBB: TRYF), a financial services company specializing in the delivery of prepaid card programs and products, today announced financial results for the quarter ended March 31, 2007.

"We are pleased with the ongoing growth and accelerating performance of the Company, as we continue to expand current card programs, features and services and develop new ones," said Matt Kerper, President and CEO of Trycera Financial. "Our success to date has enabled us to focus on continued organic growth, coupled with new product and program innovation for our entire cardholder base. These developments, in turn, have allowed the Company to systematically enhance cardholder value and deliver improved financial results quarter over quarter and year over year."

Q1 Financial Summary

Trycera Financial reported revenues of $1.2M for the quarter ended March 31, 2007, an increase of 312% compared to 1 QTR 2006, and an increase of 453% compared to 4 QTR 2006. The Company reports its revenues, consistent with GAAP, on a net basis and does not state any financials using gross card load dollars.

Trycera Financial reports operating income, net income and earnings per share (EPS) on a GAAP basis. The GAAP measures are described below in the accompanying financial highlights and are also provided in full via the financial tables provided at the end of this release.

--  GAAP operating loss for 1 QTR 2007 decreased 42% to $155K, or 13% of
    revenues.  This compares to a GAAP operating loss of $268K, or 119% of
    revenues, in 4 QTR 2006.
--  GAAP net loss for 1 QTR 2007 decreased 67% to $176K, as compared to
    $539K in 4 QTR 2006.
--  GAAP EPS for 1 QTR 2007 was ($0.02) on 7.72M weighted average shares
    outstanding, compared to a GAAP EPS of ($0.07) for 4 QTR 2006, on 7.25M
    weighted average shares outstanding.  This equates to an EPS loss reduction
    of 71% sequentially.
    
Q1 Financial Highlights

Revenues -- Trycera Financial reported revenues of $1.2M for 1 QTR 2007, an increase of 312% compared to 1 QTR 2006, and an increase of 453% compared to 4 QTR 2006.

Cost of Sales -- Cost of sales, which is comprised primarily of processing and portfolio transactional expenses, increased to $1.1M, or 89% of revenues, in 1 QTR 2007, compared to $150K, or 67% of revenues, in 4 QTR 2006. The large shift in cost of sales was driven by non-recurring program processing costs associated with new program rollouts.

Operating Expenses -- Operating expenses, other than cost of revenues, were $298K in 1 QTR 2007 and included $110K in payroll-related expenses, $20K in stock-based compensation, $90K in G&A expenses and $75K in professional fees, including $15K related to certain strategic consulting deals. The $298K in 1 QTR 2007 represents an improvement of 13% or $45K over comparable operating expenses of $343K in 4 QTR 2006, which included $153K in payroll-related expenses, $20K in stock-based compensation, $107K in G&A expenses and $59K in professional fees.

Stock-Based Compensation -- In 1 QTR 2007, the total charge related to stock-based compensation was $20K, as compared to $20K in 4 QTR 2006.

Q1 Portfolio Highlights

Gross Dollar Volume (GDV) -- For the first 3 months of 2007, GDV increased 875% to $14.2M from $1.4M for the comparable 3-month period of 2006. The Company views this metric as a key indicator of cardholder adoption and recurring use.

Gross Transactional Volume (GTV) -- For the first 3 months of 2007, GTV increased 1,137% to $12.8M from $1.0M for the comparable 3-month period of 2006. The Company views this metric as a key indicator of recurring cardholder use and convenient functionality such as bill payment.

Gross Dollars per Load (GDL) -- For the first 3 months of 2007, GDL increased 610% to $341 from $48 for the comparable 3-month period of 2006. The Company views this metric as a key indicator of cardholder adoption and a more sophisticated cardholder expanding use of the card as a valuable financial tool.

Average Ticket Value (ATV) -- For the first 3 months of 2007, ATV remained the same as the comparable 3-month period of 2006, at $44. The Company views this metric as a key indicator of a strategic advantage as the installed card base gains comfort with the features and functionality of the card product.

FORWARD-LOOKING STATEMENTS

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The Company wishes to caution readers that a number of important factors could cause actual results to differ materially from those provided in the forward-looking statements. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, the risk factors noted in the Company's filings with the United States Securities and Exchange Commission (SEC) such as such as the changes in federal, state or municipal laws governing the distribution and performance of financial services; a general economic downturn; the Company's startup phase of operations; the Company's continuing ability to fund its operations; the Company's reliance on third-party processors and product suppliers; the Company's inability to locate suitable acquisition targets; and those risks and uncertainties included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in our report on Form 10-QSB for the quarter ended March 31, 2007, which is on file with the SEC and is available on both our investor relations web site at www.trycera.com/investorrelationship.aspx and on the SEC's web site at www.sec.gov. All information provided in this release and in the related attachments is as of May 15, 2007, and Trycera Financial undertakes no duty to update this information.

ABOUT TRYCERA FINANCIAL, INC.

Trycera Financial, Inc. is a financial services company specializing in the delivery of prepaid card programs, prepaid card program management and private label catalog shopping cards. As a registered MSP for MasterCard and an ISO for Visa, the Company partners with companies focused on developing, implementing and marketing customized prepaid card solutions. For more information, please visit the Company's web site at www.trycera.com.

             TRYCERA FINANCIAL, INC. SUMMARY FINANCIAL TABLES

                          Trycera Financial, Inc.
                        Consolidated Balance Sheets

                                                     March       December
                                                    31, 2007     31, 2006
                                                  -----------  -----------
                                                  (Unaudited)  (Unaudited)
                        Assets

Current Assets
   Cash                                           $   406,295  $    87,193
   Accounts Receivable, net of allowance of
    $11,457 and $11,457                               110,154       86,628
   Prepaid Expenses and other current assets           15,552       12,429
   Client ACH Reserves                                  5,000        5,000
                                                  -----------  -----------
            Total Current Assets                      537,001      191,250

Property & Equipment, net                              12,264       18,395

Other Assets
   Deposits                                            12,507       12,507
   Definite Life Intangible Assets, net                 7,901       38,542
                                                  -----------  -----------

            Total Other Assets                         20,408       51,049
                                                  -----------  -----------

            Total Assets                          $   569,673  $   260,694
                                                  ===========  ===========

              Liabilities & Stockholders’ Equity

Current Liabilities
   Accounts Payable                               $    53,363  $    71,452
   Portfolio reserves                                  32,699       25,425
   Accrued Expenses                                   159,558       78,542
   Line of Credit                                      27,508            -
   Deferred Revenue, net                                7,500            -
                                                  -----------  -----------

   Total Current Liabilities                          280,628      175,419
                                                  -----------  -----------

Commitments                                                 -            -

Stockholders’ Equity

   Preferred Stock, 20,000,000 Shares Authorized,
     $.001 Par Value; None Issued and Outstanding           -            -
   Common Stock, 100,000,000 Shares Authorized at
     $.001 Par Value; 7,912,302 and 7,582,302
     Shares Issued and Outstanding, Respectively        7,932        7,582
   Additional Paid In Capital                       4,266,678    3,886,852
   Accumulated Deficit                             (3,985,564)  (3,809,159)
                                                  -----------  -----------
           Total Stockholders’ Equity                 289,045       85,275
           Total Liabilities & Stockholders’
            Equity                                $   569,673  $   260,694
                                                  ===========  ===========

The accompanying notes are an integral part of these financial statements



                          Trycera Financial, Inc.
                  Consolidated Statements of Operations


                                                     For the Three Months
                                                            Ended
                                                      March       March
                                                     31, 2007    31, 2006
                                                    ----------  ----------
                                                   (Unaudited)  (Unaudited)
Revenues
  Stored Value                                       1,246,643     302,865
                                                    ----------  ----------
                                                     1,246,643     302,865

Cost of Sales                                        1,104,593     205,468
                                                    ----------  ----------
   Gross Profit                                        142,050      97,397

Expenses
  Depreciation and Amortization                          3,338         874
  Salaries and Wages                                   109,664     138,933
  Stock Based Compensation                              19,926     104,750
  Professional Fees                                     75,300      34,201
  General & Administrative                              89,034      45,474
                                                    ----------  ----------

     Total Expenses                                    297,262     324,232

     Loss from Operations                             (155,212)   (226,835)
                                                    ----------  ----------

Other Income (Expenses)
  Interest, income                                         150         560
  Interest, expense                                       (534)          -
                                                    ----------  ----------
     Total Other Income (Expenses)                        (384)        560
                                                    ----------  ----------

                                                    ----------  ----------
     Loss from Continuing Operations before taxes   $ (155,596) $ (226,275)
                                                    ----------  ----------
     Income Taxes                                            -           -
                                                    ----------  ----------
     Loss from Continuing Operations                $ (155,596) $ (226,275)
                                                    ----------  ----------

Discontinued Operations
  Gain (Loss) on disposal of discontinued
   Operations, net                                     (27,852)          -
  Gain (Loss) from discontinued Operations, net          7,043      (7,580)
                                                    ----------  ----------
     Total Gain (Loss) from discontinued
      Operations, net                                  (20,809)     (7,580)

                                                    ----------  ----------
     Net Loss                                       $ (176,405) $ (233,855)
                                                    ==========  ==========

  Basic and dilutive earnings per share:

     Loss per share from Continuing Operations      $    (0.02) $    (0.03)
     Loss per share from Discontinued Operations    $    (0.02) $    (0.03)
                                                    ==========  ==========
     Weighted average shares                         7,721,303   6,946,524
                                                    ==========  ==========

The accompanying notes are an integral part of these financial statements



                         Trycera Financial, Inc.
                  Consolidated Statements of Cash Flows


                                                    For the Three Months
                                                            Ended
                                                     March        March
                                                    31, 2007     31, 2006
                                                  -----------  -----------
                                                  (Unaudited)  (Unaudited)
Cash Flows from Operating Activities
     Net Loss                                     $  (176,405) $  (233,855)
     Adjustments to Reconcile Net Loss to Net
      Cash (Used) by Operations;
       Depreciation and amortization                    3,338          873
       Depreciation and amortization on
        discontinued Operations                           581
       Loss on disposal of discontinued
        operations                                     27,852            -
       Stock issued for services                       45,250            -
       Stock options and warrants                      19,926      104,750
       (Increase) decrease in accounts receivable     (23,526)      45,161
       (Increase) decrease in prepaid and other
        current assets                                 (3,123)      25,251
       Increase (decrease) in accounts payable        (18,089)     (34,346)
       Increase (decrease) in portfolio reserves        7,274            -
       Increase (decrease) in accrued expenses         81,016         (269)
       Increase (decrease) in deferred revenue          7,500        9,173
                                                  -----------  -----------
Net Cash (Used) by Operating Activities               (28,406)     (83,262)
                                                  -----------  -----------

Cash Flows from Investing Activities
     Acquisition of intangible assets and other             -       (1,196)
     Proceeds from disposal of discontinued
      operations                                        5,000            -
                                                  -----------  -----------
Net Cash Provided (Used) by Investing Activities        5,000       (1,196)
                                                  -----------  -----------

Cash Flows from Financing Activities
     Proceeds from issuance of common stock           315,000      125,000
     Proceeds from line of credit                      27,508       (2,060)
                                                  -----------  -----------
Net Cash Provided by Financing Activities             342,508      122,940
                                                  -----------  -----------

Net Increase (Decrease) in Cash and Cash
 Equivalents                                          319,103       38,482

Cash and Cash Equivalents at Beginning of Period       87,193      211,523
                                                  -----------  -----------

Cash and Cash Equivalents at End of Period        $   406,295  $   250,005
                                                  ===========  ===========

Cash Paid for:
     Interest                                     $       534  $         -
     Income Taxes                                 $         -  $         -
Non-cash financing activities:
     Common stock issued for services             $    45,250  $         -

The accompanying notes are an integral part of these financial statements

Contact Information

  • INVESTOR / PRESS / MEDIA CONTACT:

    Bryan Kenyon
    CFO
    (949) 273-4304
    Email Contact