LML Payment Systems Inc. (LMLP, Financial) filed Quarterly Report for the period ended 2009-12-31.
Lml Payment Systems Inc. has a market cap of $55.3 million; its shares were traded at around $2.04 with a P/E ratio of 68 and P/S ratio of 4.4.
Cost of revenue increased from approximately $1,561,000 for the three months ended December 31, 2008, to approximately $2,330,000 for the three months ended December 31, 2009, an increase of approximately $769,000 or approximately 49.3%. The increase was primarily attributable to an increase in our TPP segment cost of revenue of approximately $398,000 or approximately 36.5% from approximately $1,091,000 for the three months ended December 31, 2008 to approximately $1,489,000 for the three months ended December 31, 2009 and an increase in IPL segment cost of revenue of approximately $447,000 from approximately for the three months ended December 31, 2008 to approximately $447,000 for the three months ended December 31, 2009. The increase in TPP segment cost of revenue was primarily attributable to a strengthening Canadian dollar in relation to the U.S. dollar which increased approximately 12% from the prior fiscal third quarter. Since a significant amount of our TPP segment cost of revenue originates in Canadian dollars, the conversion of these costs to U.S. dollars was at an increased exchange rate when compared to the prior fiscal third quarter conversion. TPP segment costs of revenue originating in Canadian dollars was approximately $1,574,000CAD for the three months ended December 31, 2009 compared to $1,323,000CAD for the three months ended December 31, 2008, an increase of approximately $251,000 or approximately 19%. The increase in IPL segment cost of revenue was primarily attributable to the costs incurred in entering into the License Agreement during the three months ended December 31, 2009.
General and administrative expenses increased to approximately $1,059,000 from approximately $963,000 for the three months ended December 31, 2009 and 2008, respectively, an increase of approximately $96,000 or approximately 10%. Included in general and administrative expenses are TPP segment expenses of approximately $258,000 for the three months ended December 31, 2009, an increase of approximately $113,000 compared to general and administrative expenses of approximately $145,000 for the three months ended December 31, 2008. The increase in TPP segment general and administrative expenses is primarily attributable to the foreign exchange effect of a strengthening Canadian dollar in relation to the U.S. dollar which increased approximately 12% from the prior fiscal third quarter. CP/SL segment expenses increased to approximately $137,000 from approximately $112,000 for the three months ended December 31, 2009 and 2008, respectively, an increase of approximately $25,000 or approximately 22.3%.
Cost of revenue increased from approximately $4,580,000 for the nine months ended December 31, 2008, to approximately $5,671,000 for the nine months ended December 31, 2009, an increase of approximately $1,091,000 or approximately 23.8%. This increase was primarily attributable to an increase in TPP segment cost of revenue of approximately $809,000 or approximately 25.1%, from approximately $3,224,000 for the nine months ended December 31, 2008 to approximately $4,033,000 for the nine months ended December 31, 2009. The increase in TPP segment cost of revenue was primarily attributable to an increase in our transaction costs which include interchange, assessments and other transaction fees and partially attributable to an increase in staffing within our customer service support team. CP/SL segment cost of revenue was approximately $1,079,000 for the nine months ended December 31, 2009 as compared to approximately $1,241,000 for the nine months ended December 31, 2008, a decrease in CP/SL segment cost of revenue of approximately $162,000 or approximately 13.1%. IPL segment cost of revenue was approximately $447,000 for the nine months ended December 31, 2009, as compared to approximately $2,000 for the nine months ended December 31, 2008, an increase in IPL segment cost of revenue of approximately $445,000. The increase in IPL segment cost of revenue was primarily attributable to the costs incurred in entering into the License Agreement during the nine months ended December 31, 2009.
General and administrative expenses decreased to approximately $3,084,000 from approximately $3,209,000 for the nine months ended December 31, 2009 and 2008, respectively, a decrease of approximately $125,000 or approximately 3.9%. Included in general and administrative expenses for the nine months ended December 31, 2009 are TPP segment expenses of approximately $629,000 as compared to approximately $457,000 for the nine months ended December 31, 2008. The increase in TPP segment general and administrative expenses was primarily attributable to an increase in accounting and legal fees, bank charges and interest expense of approximately $127,000 collectively. CP/SL segment expenses decreased to approximately $362,000 from approximately $467,000 for the nine months ended December 31, 2009 and 2008, respectively, a decrease of approximately $105,000 or approximately 22.5%. The decrease in CP/SL segment general and administrative expenses is primarily attributable to staff reductions and cost savings relating to the relocation of our Wichita, Kansas office during the third quarter of our prior fiscal year. Also included in general and administrative expenses are stock-based compensation expenses of approximately $781,000 for the nine months ended December 31, 2009 compared to approximately $871,000 for the nine months ended December 31, 2008, a decrease of approximately $90,000 or approximately 10.3%.
Our liquidity and financial position consisted of approximately $5,511,000 in working capital as of December 31, 2009 compared to approximately $2,762,000 in working capital as of March 31, 2009, an increase of approximately $2,749,000. The increase in working capital was primarily attributable to an increase in the current portion of future income taxes of approximately $1,014,000 resulting from the implementation of tax planning strategies during the nine months ended December 31, 2009. These strategies are intended to permit the recovery of income taxes previously paid on behalf of our subsidiary, Beanstream. Cash provided by operating activities was approximately $175,000 for the nine months ended December 31, 2009, as compared to cash used in operating activities of approximately $584,000 for the nine months ended December 31, 2008, an increase in cash generated by operating activities of approximately $759,000. The increase in cash provided by operating activities was primarily attributable to a decrease in cash used in discharging accounts payable and accrued liabilities of approximately $71,000 for the nine months ended December 31, 2009 as compared to cash used in discharging accounts payable and accrued liabilities of approximately $802,000 for the nine months ended December 31, 2008. Cash used in investing activities was approximately $86,000 for the nine months ended December 31, 2009 as compared to approximately $102,000 for the nine months ended December 31, 2008, a decrease in cash used in investing activities of approximately $16,000. The decrease in cash used in investing activities was primarily attributable to a decrease in acquisition of property and equipment of approximately $16,000 for the nine months ended December 31, 2009 as compared to the nine months ended December 31, 2008. Cash used in financing activities was approximately $2,462,000 for the nine months ended December 31, 2009 as compared to approximately $2,990,000 for the nine months ended December 31, 2008, a decrease in cash used in financing activities of approximately $528,000. The decrease in cash used in financing activities was primarily due to the difference in the payments on the promissory notes relating to the acquisition of Beanstream. During the nine months ended December 31, 2009 we made the second and final payment of approximately $2,321,000 on the promissory notes as compared to the first payment of approximately $2,844,000 on the promissory notes made during the nine months ended December 31, 2008, a difference in payments of approximately $523,000.
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Lml Payment Systems Inc. has a market cap of $55.3 million; its shares were traded at around $2.04 with a P/E ratio of 68 and P/S ratio of 4.4.
Highlight of Business Operations:
Transaction fees for the three months ended December 31, 2009 were approximately $2,042,000 compared to approximately $1,588,000 for the three months ended December 31, 2008, an increase of approximately $454,000 or approximately 28.5%. The increase in transaction fees was primarily attributable to a strengthening Canadian dollar in relation to the U.S. dollar which increased approximately 12% from the prior fiscal third quarter. Since a significant amount of our TPP segment revenue originates in Canadian dollars, the conversion of this revenue to U.S. dollars was at an increased exchange rate when compared to the prior fiscal third quarter conversion. Transaction fees originating in Canadian dollars were approximately $2,159,000CAD for the three months ended December 31, 2009 compared to $1,926,000CAD for the three months ended December 31, 2008, an increase of approximately $233,000 or approximately 12.1%. The amortized portion of one-time set-up fees recognized was approximately $46,000 for the three months ended December 31, 2009 compared to approximately $35,000 for the three months ended December 31, 2008, an increase of approximately $11,000 or approximately 31.4%. Monthly gateway fees for the three months ended December 31, 2009 were approximately $318,000 compared to approximately $243,000 for the three months ended December 31, 2008, an increase of approximately $75,000 or approximately 30.9%.Cost of revenue increased from approximately $1,561,000 for the three months ended December 31, 2008, to approximately $2,330,000 for the three months ended December 31, 2009, an increase of approximately $769,000 or approximately 49.3%. The increase was primarily attributable to an increase in our TPP segment cost of revenue of approximately $398,000 or approximately 36.5% from approximately $1,091,000 for the three months ended December 31, 2008 to approximately $1,489,000 for the three months ended December 31, 2009 and an increase in IPL segment cost of revenue of approximately $447,000 from approximately for the three months ended December 31, 2008 to approximately $447,000 for the three months ended December 31, 2009. The increase in TPP segment cost of revenue was primarily attributable to a strengthening Canadian dollar in relation to the U.S. dollar which increased approximately 12% from the prior fiscal third quarter. Since a significant amount of our TPP segment cost of revenue originates in Canadian dollars, the conversion of these costs to U.S. dollars was at an increased exchange rate when compared to the prior fiscal third quarter conversion. TPP segment costs of revenue originating in Canadian dollars was approximately $1,574,000CAD for the three months ended December 31, 2009 compared to $1,323,000CAD for the three months ended December 31, 2008, an increase of approximately $251,000 or approximately 19%. The increase in IPL segment cost of revenue was primarily attributable to the costs incurred in entering into the License Agreement during the three months ended December 31, 2009.
General and administrative expenses increased to approximately $1,059,000 from approximately $963,000 for the three months ended December 31, 2009 and 2008, respectively, an increase of approximately $96,000 or approximately 10%. Included in general and administrative expenses are TPP segment expenses of approximately $258,000 for the three months ended December 31, 2009, an increase of approximately $113,000 compared to general and administrative expenses of approximately $145,000 for the three months ended December 31, 2008. The increase in TPP segment general and administrative expenses is primarily attributable to the foreign exchange effect of a strengthening Canadian dollar in relation to the U.S. dollar which increased approximately 12% from the prior fiscal third quarter. CP/SL segment expenses increased to approximately $137,000 from approximately $112,000 for the three months ended December 31, 2009 and 2008, respectively, an increase of approximately $25,000 or approximately 22.3%.
Cost of revenue increased from approximately $4,580,000 for the nine months ended December 31, 2008, to approximately $5,671,000 for the nine months ended December 31, 2009, an increase of approximately $1,091,000 or approximately 23.8%. This increase was primarily attributable to an increase in TPP segment cost of revenue of approximately $809,000 or approximately 25.1%, from approximately $3,224,000 for the nine months ended December 31, 2008 to approximately $4,033,000 for the nine months ended December 31, 2009. The increase in TPP segment cost of revenue was primarily attributable to an increase in our transaction costs which include interchange, assessments and other transaction fees and partially attributable to an increase in staffing within our customer service support team. CP/SL segment cost of revenue was approximately $1,079,000 for the nine months ended December 31, 2009 as compared to approximately $1,241,000 for the nine months ended December 31, 2008, a decrease in CP/SL segment cost of revenue of approximately $162,000 or approximately 13.1%. IPL segment cost of revenue was approximately $447,000 for the nine months ended December 31, 2009, as compared to approximately $2,000 for the nine months ended December 31, 2008, an increase in IPL segment cost of revenue of approximately $445,000. The increase in IPL segment cost of revenue was primarily attributable to the costs incurred in entering into the License Agreement during the nine months ended December 31, 2009.
General and administrative expenses decreased to approximately $3,084,000 from approximately $3,209,000 for the nine months ended December 31, 2009 and 2008, respectively, a decrease of approximately $125,000 or approximately 3.9%. Included in general and administrative expenses for the nine months ended December 31, 2009 are TPP segment expenses of approximately $629,000 as compared to approximately $457,000 for the nine months ended December 31, 2008. The increase in TPP segment general and administrative expenses was primarily attributable to an increase in accounting and legal fees, bank charges and interest expense of approximately $127,000 collectively. CP/SL segment expenses decreased to approximately $362,000 from approximately $467,000 for the nine months ended December 31, 2009 and 2008, respectively, a decrease of approximately $105,000 or approximately 22.5%. The decrease in CP/SL segment general and administrative expenses is primarily attributable to staff reductions and cost savings relating to the relocation of our Wichita, Kansas office during the third quarter of our prior fiscal year. Also included in general and administrative expenses are stock-based compensation expenses of approximately $781,000 for the nine months ended December 31, 2009 compared to approximately $871,000 for the nine months ended December 31, 2008, a decrease of approximately $90,000 or approximately 10.3%.
Our liquidity and financial position consisted of approximately $5,511,000 in working capital as of December 31, 2009 compared to approximately $2,762,000 in working capital as of March 31, 2009, an increase of approximately $2,749,000. The increase in working capital was primarily attributable to an increase in the current portion of future income taxes of approximately $1,014,000 resulting from the implementation of tax planning strategies during the nine months ended December 31, 2009. These strategies are intended to permit the recovery of income taxes previously paid on behalf of our subsidiary, Beanstream. Cash provided by operating activities was approximately $175,000 for the nine months ended December 31, 2009, as compared to cash used in operating activities of approximately $584,000 for the nine months ended December 31, 2008, an increase in cash generated by operating activities of approximately $759,000. The increase in cash provided by operating activities was primarily attributable to a decrease in cash used in discharging accounts payable and accrued liabilities of approximately $71,000 for the nine months ended December 31, 2009 as compared to cash used in discharging accounts payable and accrued liabilities of approximately $802,000 for the nine months ended December 31, 2008. Cash used in investing activities was approximately $86,000 for the nine months ended December 31, 2009 as compared to approximately $102,000 for the nine months ended December 31, 2008, a decrease in cash used in investing activities of approximately $16,000. The decrease in cash used in investing activities was primarily attributable to a decrease in acquisition of property and equipment of approximately $16,000 for the nine months ended December 31, 2009 as compared to the nine months ended December 31, 2008. Cash used in financing activities was approximately $2,462,000 for the nine months ended December 31, 2009 as compared to approximately $2,990,000 for the nine months ended December 31, 2008, a decrease in cash used in financing activities of approximately $528,000. The decrease in cash used in financing activities was primarily due to the difference in the payments on the promissory notes relating to the acquisition of Beanstream. During the nine months ended December 31, 2009 we made the second and final payment of approximately $2,321,000 on the promissory notes as compared to the first payment of approximately $2,844,000 on the promissory notes made during the nine months ended December 31, 2008, a difference in payments of approximately $523,000.
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