SOURCE: Trycera Financial, Inc.

April 03, 2007 09:35 ET

Trycera Financial Announces Fiscal Year 2006 Financial Results

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

IRVINE, CA -- (MARKET WIRE) -- April 3, 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 year ended December 31, 2006.

"Our financial results for 2006 were indicative of the continued growth and accelerating momentum of the Company," said Matt Kerper, President and CEO of Trycera Financial. "We have successfully built a core debit card portfolio and are now positioned operationally to scale both new and existing card programs, add new card features and functionality and launch a complementary suite of financial services for our customers. While 2006 met our expectations, it was generally a final development and transition year for the Company. With this development and transition now complete, the Company has enjoyed robust exponential financial growth and order of magnitude increases in all key performance metrics and fundamentals in early 2007. Barring any unforeseen changes to the Company's existing business trends, we fully expect that the development and infrastructure investments made continuously from mid 2004 through year end 2006 will result in a materially different and significantly larger free cash generating company by the close of 2 QTR 2007."

2006 Financial Summary

The Company reported revenues of $1,095K for the year ended December 31, 2006, an increase of 100% compared to the year ended December 31, 2005. The Company reports its revenues, consistent with GAAP, on a net basis and does not state any financials using gross card load dollars.

The Company 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 2006 decreased 23% to $1,091K, or 100% of
    revenues.  This compares to a GAAP operating loss of $1,420K, or 260% of
    revenues, in 2005.

--  GAAP net loss for 2006 decreased 11% to $1,362K, as compared to
    $1,537K in 2005.

--  GAAP EPS for 2006 was ($0.19) on 7.25M weighted average shares
    outstanding, compared to a GAAP EPS of ($0.24) for 2005, on 6.41M weighted
    average shares outstanding.  This equates to an EPS loss reduction of 26%
    sequentially.
    
2006 Financial Highlights

Revenues - The Company reported revenues of $1,095K for the year ended December 31, 2006, an increase of 100% compared to the year ended December 31, 2005.

Cost of Sales - Cost of sales, which is comprised primarily of processing and portfolio transactional expenses, increased to $844K, or 77% of revenues, in 2006, compared to $426K, or 78% of revenues, in 2005. 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 $1,341K in 2006 and included $618K in payroll-related expenses, $146K in stock-based compensation, $292K in G&A expenses and $263K in professional fees. The $1,341K in 2006 represents an improvement of 13% or $199K over comparable operating expenses of $1,540K in 2005, which included $604K in payroll-related expenses, $252K in stock-based compensation, $320K in G&A expenses and $248K in professional fees.

Stock-Based Compensation - In 2006, the total charge related to stock-based compensation was $146K, as compared to $252K in 2005. The 42% year over year reduction was driven by a reduced number of options vesting in the comparable period.

2006 Portfolio Highlights

Gross Dollar Volume (GDV) - For the year ended 2006, GDV increased 526% to $8.4M from $1.35M for the comparable year ended 2005. The Company views this metric as a key indicator of cardholder adoption and recurring use.

Gross Transactional Volume (GTV) - For the year ended 2006, GTV increased 761% to $7.0M from $813K for the comparable year ended 2005. 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 year ended 2006, GDL increased 76% to $100.85 from $57.06 for the comparable year ended 2005. 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 year ended 2006, ATV increased 11.5% to $45.93 from $41.18 for the comparable year ended 2005. 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.

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


                                                     December    December
                                                     31, 2006    31, 2005
                                                    ----------  ----------
                       Assets

Current Assets
 Cash                                               $   87,193  $  211,523
 Accounts Receivable, net of allowance of $11,457
  and $1,999                                            86,628      99,811
 Prepaid Expenses and other current assets              12,429      42,786
 Client ACH Reserves                                     5,000       5,000
                                                    ----------  ----------
         Total Current Assets                          191,250     359,120

Property & Equipment, net                               18,395      12,764

Other Assets
 Deposits                                               12,507       9,207
 Definite Life Intangible Assets, net                   38,542      75,644
                                                    ----------  ----------

         Total Other Assets                             51,049      84,851
                                                    ----------  ----------

         Total Assets                               $  260,694  $  456,735
                                                    ==========  ==========

        Liabilities & Stockholders’ Equity

Current Liabilities
 Accounts Payable                                   $   71,452  $   52,469
 Portfolio reserves                                     25,425      10,000
 Accrued Expenses                                       78,542      36,827
 Line of Credit                                              -      14,485
 Deferred Revenue, net                                       -      22,191
                                                    ----------  ----------

 Total Current Liabilities                             175,419     135,972
                                                    ----------  ----------

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; 7,582,302 and 6,876,802 Shares            -           -
  Issued and Outstanding, Respectively                   7,582       6,876
 Additional Paid In Capital                          3,886,852   2,761,230
 Accumulated Deficit                                (3,809,159) (2,447,343)
                                                    ----------  ----------
        Total Stockholders’ Equity                      85,275     320,763
        Total Liabilities & Stockholders’ Equity    $  260,694  $  456,735
                                                    ==========  ==========


                          Trycera Financial, Inc.
                  Consolidated Statements of Operations


                                                  For the Twelve Months
                                                          Ended
                                                  ------------------------
                                                    December   December
                                                  31, 2006      31, 2005
                                                ------------  ------------
Revenues
 Consulting                                     $    156,434  $     27,309
 Stored Value                                        647,060       271,954
 Call Center                                         267,281       145,767
 Catalog Shopping                                      6,169       101,151
 Other revenue                                        17,639             -
                                                ------------  ------------
                                                   1,094,583       546,181

Cost of Sales                                        844,283       426,203
                                                ------------  ------------
 Gross Profit                                        250,300       119,978

Expenses
 Depreciation and Amortization                        21,354       115,510
 Salaries and Wages                                  617,831       604,184
 Stock Based Compensation                            146,416       252,004
 Professional Fees                                   262,852       248,274
 General & Administrative                            292,633       319,698
                                                ------------  ------------

    Total Expenses                                 1,341,086     1,539,670

    Income (Loss) from Operations                 (1,090,786)   (1,419,692)
                                                ------------  ------------

Other Income (Expenses)
 Interest, income                                      1,468             -
 Interest, expense                                    (2,853)       (1,107)
 Financing Costs                                    (247,845)     (116,238)
 Impairment of Intangible Assets                     (25,000)            -
 Other income (expense)                                4,000             -
                                                ------------  ------------

    Total Other Income (Expenses)                   (270,230)     (117,345)
                                                ------------  ------------

    Loss Before Taxes                             (1,361,016)   (1,537,037)
    Income Taxes                                        (800)            -
                                                ------------  ------------
    Net Loss                                    $ (1,361,816) $ (1,537,037)
                                                ============  ============

 Basic earnings per share:
    Loss per share                              $      (0.19) $      (0.24)
                                                ============  ============
    Weighted average shares                        7,252,169     6,412,499
                                                ============  ============


                          Trycera Financial, Inc.
                  Consolidated Statements of Cash Flows


                                                  For the Twelve Months
                                                          Ended
                                                  ------------------------
                                                  December      December
                                                  31, 2006      31, 2005
                                                ------------  ------------
Cash Flows from Operating Activities
  Net Loss                                      $ (1,361,816) $ (1,537,037)
  Adjustments to Reconcile Net Loss to Net Cash
  Provided by Operations;
    Depreciation and amortization                     21,354       115,510
    Bad debt expense                                  11,457             -
    Impairment of intangible assets                   25,000             -
    Stock issued for services                         84,067        67,000
    Stock options and warrants                       394,261       301,242
    (Increase) decrease in accounts receivable         1,726       (78,386)
    (Increase) decrease in prepaid and other
     current assets                                   30,357       (29,481)
    (Increase) decrease in deposits                   (3,300)            -
    Increase (decrease) in accounts payable           18,983        16,048
    Increase (decrease) in portfolio reserves         25,425        (5,000)
    Increase (decrease) in accrued expenses           31,715        36,778
    Increase (decrease) in unearned revenue          (22,191)      (60,902)
                                                ------------  ------------
Net Cash Provided (Used) by Operating
 Activities                                         (742,962)   (1,174,228)
                                                ------------  ------------

Cash Flows from Investing Activities
  Acquisition of property & equipment                (13,686)      (15,892)
  Acquisition of intangible assets and other          (1,197)      (30,000)
                                                ------------  ------------
Net Cash Provided (Used) by Investing
 Activities                                          (14,883)      (45,892)
                                                ------------  ------------

Cash Flows from Financing Activities
  Proceeds from issuance of common stock             648,000       462,500
  Payments made on line of credit                    (14,485)       (5,515)
                                                ------------  ------------
Net Cash Provided (Used) by Financing
 Activities                                          633,515       456,985
                                                ------------  ------------

Net Increase (Decrease) in Cash and Cash
 Equivalents                                        (124,330)     (763,135)

Cash and Cash Equivalents at Beginning of
 Period                                              211,523       974,658
                                                ------------  ------------

Cash and Cash Equivalents at End of Period      $     87,193  $    211,523
                                                ============  ============

Cash Paid for:
  Interest                                      $        992  $     10,358
  Income Taxes                                  $          -  $          -
Non-cash financing activities:
  Common stock issued for services              $     84,067  $     67,000
  Financing costs satisfied by warrants         $    247,845  $          -
  Common stock issued for IsleCore assets       $          -  $     40,000

Contact Information

  • INVESTOR / PRESS / MEDIA CONTACT:

    Bryan Kenyon, CFO
    (949) 273-4304
    Email Contact