3Pea International, Inc. (OTCBB:TPNL), a payment solutions company focused on prepaid debit card program management and processing services, today announced record financial results for the first quarter ended March 31, 2013.

First Quarter 2013 Highlights:

  • Revenues increased 42% to $2,111,037 for the quarter ended March 31, 2013 up from $1,484,592 for the quarter ended March 31, 2012.
  • Operating income increased 150% to $240,781 for the quarter ended March 31, 2013 up from $92,228 for the quarter ended March 31, 2012.
  • Net income increased 196% to $226,405, or $.01 per share for the quarter ended March 31, 2013 up from $76,390, or $.00 per share for the quarter ended March 31, 2012

Three months ended March 31, 2013 and 2012

Revenues for the three months ended March 31, 2013 were $2,111,037, an increase of $626,445 compared to the same period in the prior year, when revenues were $1,484,592. The increase in revenue is due to the following factors: the first factor being the launch of several new card programs during the latter part of 2012; and the second factor due to an increase in processing, program management, development, fulfillment and customer service fees compared to the prior year. We expect our revenues to continue to trend upward as the economy improves and as we roll out additional debit card programs utilizing our newest processing platform, diversify our product line and increase the number of support services offered to our customers.

Gross profit for the three months ended March 31, 2011 was $519,566, an increase of $256,779 compared to the same period in the prior year, when gross profit was $262,787. Our overall gross profit percentage approximated 25% and 18% during the fiscal years 2013 and 2012 which is consistent with our overall expectations.

Our net income for the three months ended March 31, 2013 was $226,398, an increase of $150,013 compared to the same period in the prior year, when we recorded net income of $76,385. The increase in our net income is attributable to the aforementioned factors.

“We are pleased with our first quarter performance as revenues, operating margins, and net income improved as compared to the first quarter of 2012,” commented Arthur De Joya, Chief Financial Officer, 3Pea International. “We look forward to the remainder of 2013 as we continue to diversify our product line and introduce new value added services to our product mix.”

       
3PEA INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2013 AND DECEMBER 31, 2012
(UNAUDITED)
 
March 31, 2013 December 31, 2012
ASSETS
 
Current assets
Cash $ 1,771,502 $ 1,872,911
Cash Restricted

4,312,313

5,050,867
Accounts Receivable 53,766 81,333
Prepaid Expenses and other assets   55,500         16,050  
Total current assets 6,193,081 7,021,161
 
Fixed assets, net 118,212 108,938
 
Intangible and other assets
Deposits 3,551 3,551
Intangible assets, net   370,078         326,625  
 
Total assets $ 6,684,922       $ 7,460,275  
 
LIABILITIES AND STOCKHOLDERS' DEFICIT
 
Current liabilities
Accounts payable and accrued liabilities $ 1,942,615 $ 2,212,312
Customer card funding 4,312,313 5,050,867
Notes payable-related parties 538,000 538,000
Notes payable   169,400         169,400  
Total current liabilities 6,962,328 7,970,579
 
 
Total liabilities 6,962,328 7,970,579
 
Stockholders' deficit
Common stock; $0.001 par value; 150,000,000 shares authorized,
38,936,606 and 38,911,606 issued and outstanding 38,937 38,912
at March 31, 2013 and December 31, 2012, respectively
Additional paid-in capital 5,570,406 5,563,931
Treasury stock at cost, 303,450 shares (150,000 ) (150,000 )
Accumulated deficit   (5,785,838 )       (6,012,243 )
Total 3Pea International, Inc.'s stockholders' deficit (326,495 ) (559,400 )
Noncontrolling interest   49,089         49,096  
Total stockholders' deficit   (277,406 )       (510,304 )
 
Total liabilities and stockholders' deficit $ 6,684,922       $ 7,460,275  
 
3PEA INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012
(UNAUDITED)
 
For the three months ended March 31,
  2013         2012  
 
Revenues $ 2,111,037 $ 1,484,592
 
Cost of revenues   1,591,471     1,221,805  
 
Gross profit   519,566     262,787  
 
Operating expenses
Depreciation and amortization 10,181 16,826
Selling, general and administrative   268,604     153,733  
 
Total operating expenses   278,785     170,559  
 
Income from operations   240,781     92,228  
 
Other income (expense)
Interest expense   (14,383 )   (15,843 )
Total other income (expense)   (14,383 )   (15,843 )
 
Income before provision for income taxes and noncontrolling interest 226,398 76,385
 
Provision for income taxes   --     --  
 
Net income before noncontrolling interest 226,398 76,385
 
Net (income) loss attributable to the noncontrolling interest   (7 )   (3 )
 
Net income attributable to 3Pea International, Inc. $ 226,405   $ 76,390  
 
Net income per common share - basic   0.01     0.00  
Net income per common share - fully diluted   0.01     0.00  
 
Weighted average common shares outstanding - basic   38,927,540     35,250,391  
Weighted average common shares outstanding - fully diluted   42,388,040     35,250,391  

About 3Pea International:

3Pea International is a payment solutions company that focuses on providing prepaid debit program management and processing services. The company provides a card processing platform consisting of proprietary systems and innovative software applications based on the unique needs of our programs. Through this platform, the company provides a variety of services including transaction processing, card creation and fulfillment, cardholder enrollment, value loading, cardholder account management, reporting, integrated voice response, and customer service.

Forward-Looking Statements:

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. There is no assurance that such statements will prove to be accurate, and actual results and future events could differ materially. 3Pea undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise.


Contacts

3Pea International
Brian Polan, 702-749-7234
Investor Relations
investor@3pea.com
bpolan@3pea.com