Exhibit
99.1
Corporate Contact:
Matthew
E. Oakes
Paybox
Corp
954-510-3750
investorrelations@gopaybox.com
FOR IMMEDIATE RELEASE
Paybox
Announces Fourth Quarter and Fiscal Year 2016 Results
FORT LAUDERDALE, FL – March 31,
2017 – Paybox Corp (OTCQB:PBOX), provider of the PAYBOX®
unified working capital management platform, today announced
financial results for the fourth quarter and year ended December
31, 2016. The net loss for the three months ended December 31,
2016, was $1,615,000, compared with last year’s fourth
quarter net income of $216,000. The net loss for the year ended
December 31, 2016 was $1,471,000, compared with net income of
$568,000 for the year ended December 31, 2015.
The losses
for both the quarter and the year are attributable to two events:
(1) As noted in our Current Reports on Form 8-K filed with the SEC
on December 22, 2016, the company is planning a reverse stock split
during 2017. Costs of approximately $263,000 related to this
transaction were recorded in the fourth quarter of 2016; and (2) As
noted in our Current Reports on Form 8-K filed with the SEC on
March 3, 2017, we were notified by our customer IBM that they will
be terminating one of their contracts with us effective September
1, 2017. Although it is possible that the Company may continue ot
provide certain services relating to this agreement on a
month-to-month basis following termination, there can be no
assurances that the Company will continue to provide such services
to this client. As a result of this notification, we have recorded
a non-cash valuation allowance against our deferred tax asset
($916,000), and expensed all costs capitalized (non-cash) during
the year ($372,000) during the fourth quarter of 2016. Excluding
the one-time charges associated with the reverse stock split
transaction and the IBM notification, net income (loss) for the
three months and year ended December 31, 2016 were ($64,000) and
$80,000, respectively.
Total
revenue for the three months ended December 31, 2016 was
$1,467,000, a decrease of $496,000 or 25.2%, from revenue of
$1,962,000 for the three months ended December 31, 2015. Total
revenue for the year ended December 31, 2016, was $6,512,000, a
decrease of $1,499,000, or 18.7%, from revenue of $8,011,000 for
the year ended December 31, 2015.
Recurring revenue
for the three months ended December 31, 2016 was $1,225,000, a
decrease of $434,000, or 26.2%, from recurring revenue of
$1,659,000 for the three months ended December 31, 2015. Recurring
revenue for the year ended December 31, 2016 was $5,303,000, a
decrease of $1,442,000, or 21.4%, from recurring revenue of
$6,745,000 for the year ended December 31, 2015. The year-over-year
decrease in recurring revenue for both the quarter and year were
due to previously disclosed February 2016 and August 2016
terminations of two channel partner clients.
Non-recurring
revenue for the three months ended December 31, 2016 was $242,000,
a decline of $61,000, or 20.1%, from non-recurring revenue of
$303,000 for the comparable prior year period. Non-recurring
revenue for the year ended December 31, 2016, was $1,209,000, a
decline of $57,000, or 4.5%, from non-recurring revenue of
$1,266,000 for the year ended December 31, 2015. The year-over-year
decrease in non-recurring revenue for both the quarter and year
were due to the non-recurrence of certain large prior year
customer-requested modifications, partially offset by higher
scanning fees.
Working
capital at December 31, 2016, was $2,377,000, a decrease of
$331,000, or 12.2%, from working capital of $2,708,000 at December
31, 2015. Cash provided by operating activities at December 31,
2016 was $154,000, a decrease of $1,578,000 compared to cash
provided by operating activities of $1,732,000 for the same period
in 2015. About $635,000 of this decline resulted from the
above-noted reverse stock split transaction costs and the reversal
of previously capitalized IBM capitalized software
costs.
Paybox
Corp Chairman and Chief Executive Officer, Matthew E. Oakes stated
“The notification of termination from IBM was obviously
disappointing but the momentum of our numerous new customer
signings during late 2016 and early 2017, coupled with the expected
savings to be derived from the reverse stock split, will give us
the runway to grow the business profitably in the near future.
These customer signings demonstrate the market driven demand for
our Paybox suite of services and we continue to aggressively move
to address the opportunity.”
The
financial information stated above and in the tables below has been
abstracted from Paybox Corp’s Annual Report on Form 10-K for
the fiscal year ended December 31, 2016, filed with the Securities
and Exchange Commission on March 29, 2017, and should be read in
conjunction with the information provided therein.
Summarized Financial Information – Statements of
Income
|
|
For
the Three Months Ended
|
For
the Year Ended
|
||
|
|
Dec.
31, 2016
|
Dec.
31, 2015
|
Dec.
31, 2016
|
Dec.
31, 2015
|
|
Revenue
|
$1,467,000
|
$1,962,000
|
$6,512,000
|
$8,011,000
|
|
Operating Income
(Loss)
|
$(438,000)
|
$217,000
|
$(292,000)
|
$595,000
|
|
Other Expense
(Income), Net
|
$(264,000)
|
$2,000
|
$(263,000)
|
$4,000
|
|
Income (Loss)
Before Income Taxes
|
$(700,000)
|
$215,000
|
$(555,000)
|
$591,000
|
|
Provision for
(Benefit from) Income Taxes
|
$(917,000)
|
$(1,000)
|
$(916,000)
|
$23,000
|
|
Net Income
(Loss)
|
$(1,615,000)
|
$216,000
|
$(1,471,000)
|
$568,000
|
|
Basic and diluted
Income (Loss) per Share
|
$(0.12)
|
$0.01
|
$(0.11)
|
$0.04
|
|
Basic shares
outstanding
|
13,046,000
|
12,890,677
|
12,989,000
|
12,846,000
|
|
Diluted shares
outstanding
|
13,046,000
|
12,902,677
|
12,989,000
|
12,865,000
|
Summarized Financial Information – Balance Sheet
|
Balance
Sheet
|
Dec.
31, 2016
|
Dec.
31, 2015
|
|
Total
Cash
|
$2,346,000
|
$2,375,000
|
|
Total Current
Assets
|
$4,016,000
|
$4,224,000
|
|
Total
Assets
|
$5,397,000
|
$6,600,000
|
|
Total Current
Liabilities
|
$1,639,000
|
$1,516,000
|
|
Total
Liabilities
|
$1,639,000
|
$1,516,000
|
|
Total
Stockholders’
Equity
|
$3,758,000
|
$5,084,000
|
About PAYBOX Corp
PAYBOX®
provides a powerful platform for unified working capital management
that facilitates over $160 billion worth of transactions annually
between more than 375,000 companies worldwide. PAYBOX Corp’s
clients include IBM, Siemens, HP Enterprises, Saint Gobain,
Carlson, and one of the world’s largest financial
institutions. The flagship component of PAYBOX’s unified
working capital management platform is PAYBOX® Cloud, which
offers robust and secure Accounts Payable and Receivables solutions
that seamlessly integrate with a company’s ERP system. Paper,
manual processes and customer/client invoice inaccuracies and
associated resolution costs are eliminated, while improving working
capital and customer satisfaction. Learn more at
www.gopaybox.com.
FORWARD-LOOKING
STATEMENTS. Statements in this press release regarding our future
operations are forward-looking statements. Such forward-looking
statements are based on the beliefs of the Company's management, as
well as assumptions made by and information currently available to
the Company's management. These statements reflect the views of the
Company with respect to future events and are subject to these and
other risks, uncertainties and assumptions relating to the
operations, results of operations, growth strategy and liquidity of
the Company. Actual results could differ materially from those
contemplated by the forward-looking statements as a result of
various factors, including but not limited to, our ability to
successfully implement our platform for new customers, our ability
to retain existing customers, the effectiveness of our marketing
efforts in attracting new customers, the success of our research
and development efforts in continuing to create competitively
attractive e-invoicing solutions, other competitive factors,
general business and economic conditions, and pricing pressures.
Readers are cautioned not to place undue reliance on these
forward-looking statements. The Company does not undertake any
obligation to release publicly any revisions to these
forward-looking statements to reflect future events or
circumstances or to reflect the occurrence of unanticipated
events.