Paysign, Inc. · NASDAQ:PAYS
Paysign — 3PEA International — Investor Presentation (December 2018)
22 slides from Paysign's investor presentation, Dec 7, 2018
Slide 1: Investor Presentation December 2018
Investor Presentation December 2018 NASDAQ: TPNL
Slide 2: Important Notices: Forward Looking Statements and Use of Non-GAAP Financial Information
3PEA International Investor Presentation IMPORTANT NOTICES FORWARD LOOKING STATEMENTS AND USE OF NON - GAAP FINANCIAL INFORMATION . This presentation may include "forward - looking statements." To the extent that the information presented in this presentation discusses financial projections, informa
Slide 3: Company Overview
3PEA International Investor Presentation Vertically integrated payment solutions company providing prepaid card programs and payment processing services under the PaySign® brand for corporate, consumer and government applications Real time payment processing with 99 . 999 % uptime A leading provider
Slide 4: Investment Highlights
3PEA International Investor Presentation Investment Highlights Vertically Integrated Business Record of Historical Growth Captive Audience to Grow Organically High Client Retention Clean Capital Structure with No Debt Large Market Opportunity in an Industry with High Barriers to Entry 4
Slide 5: Management Team
3PEA International Investor Presentation ▪ Co - founded the Company in 2001 ▪ Driving force behind the Company's significant growth and strategic direction ▪ Shaping the future of the business as a premier prepaid card services leader, delivering a strong value proposition for clien ts and over 2 mi
Slide 6: Management Team (cont'd)
3PEA International Investor Presentation MANAGEMENT TEAM (cont’d) 6 ▪ 13+ years of legal experience in non - traditional banking ▪ Previously at Republic Bank & Trust Company (Louisville, KY) as Deputy General Counsel and Vice President where he managed al l l egal affairs for Republic’s non - tradi
Slide 7: Board of Directors
3PEA International Investor Presentation ▪ Former CEO of NetSpend (2008 - 2013). Grew annual revenue from $129M to $351M, with over 2.4 million cardholder accounts . NetSpend acquired by Total System Services: (NYSE: TSS) for $1.4B ▪ Co - founder, Former President and Chief Operations Officer and Di
Slide 8: Prepaid Market Overview
3PEA International Investor Presentation $242.8 $263.7 $287.1 $295.0 $307.7 $321.5 $336.4 $352.6 2013 2014 2015 2016 2017(f) 2018(f) 2019(f) 2020(f) CAGR of 5.5% Amount loaded onto open loop cards ($Billions) 7 Prepaid Market Overview Source: Mercator Advisory Group 8 How big is the open loop prepai
Slide 9: 3PEA's Proprietary Payment Processing Platform - PaySign
3PEA International Investor Presentation 3PEA’s payments platform has allowed 3PEA to significantly expand its operations The PaySign® payments platform was built on modern cross - platform architecture, which has allowed 3PEA to significantly expand its operational capabilities through its flexibil
Slide 10: Complete life cycle prepaid card solution
3PEA International Investor Presentation x Allows companies to launch their own customized incentive and rewards program to their customers, target markets, agents, and employees through pre - paid card solutions x Allows for flexibility, customer response and creativity x Leveraging existing cardho
Slide 11: 3PEA's Current Market Base
3PEA International Investor Presentation 3PEA offers virtual and traditional payment solutions to companies across diverse industries PLASMA DONOR COMPENSATION • Plasma donations have grown rapidly in the U.S., reflecting a 10.1% CAGR from 2012 – 2017 • 3PEA is an industry leader currently with ~ 33
Slide 12: Expansion into general purpose reloadable card market and corporate incentives
3PEA International Investor Presentation 3PEA plans to heavily expand its operations into the general purpose reloadable card market & corporate incentive program business General Purpose Reloadable Card Market ▪ 3 PEA has a growing user base of over 2 M cardholders ▪ Currently, 3 PEA’s cardholders
Slide 13: 3PEA's Target Markets (cont'd)
3PEA International Investor Presentation 3PEA’s Target Markets (cont’d) 13 Clinical Trials ▪ 3 PEA will offer Clinical Research Organizations ( CROs) a patient reimbursement and compensation solution designed to improve patient engagement and retention while streamlining administration Payroll ▪ Pay
Slide 14: Growth Strategy
3PEA International Investor Presentation Growth Strategy 3PEA believes it is positioned for strategic growth Strategic Acquisitions Pursue acquisition candidates that have long standing reputations, a corporate culture of innovation, and demonstrated growth and profitability New Markets and Customer
Slide 15: Recent Milestones
3PEA International Investor Presentation 15 August 2018 Listed on NASDAQ as TPNL May 2018 Appointed Dan Henry as the Chairman of the Board September 2018 • 2 Million+ cardholders • 244 card programs Recent Milestones Q3 2018 revenue and earnings grew 60% YOY December 2017 • 1.5 Million+ cardholders
Slide 16: Competitive Advantages: What sets 3PEA apart from competitors?
3PEA International Investor Presentation ▪ End - to - end solution – vertically integrated payments processor & prepaid debit card program manager ▪ Responsive, fully - staffed, in - house bi - lingual customer service department ▪ Customizable payment solutions to meet customers’ needs ▪ Program ch
Slide 17: 3PEA's Revenue Sources
3PEA International Investor Presentation Administration and Usage Fees Charged to corporate clients when programs are created, distributed or reloaded Program Maintenance & Management Fees Charged to corporate clients for ongoing program maintenance Software Development and Consulting Service Fees S
Slide 18: Financial Highlights
3PEA International Investor Presentation $8.2 $10.4 $15.2 $21.2 2015 2016 2017 TTM (Q3 2018) Revenue 3PEA’s YoY Revenue $Millions 3PEA’s Adjusted EBITDA $Millions High Revenue Capture 3PEA has experienced strong year - over - year growth and increasing gross and net margins through both cost reducti
Slide 19: Balance Sheet
3PEA International Investor Presentation Balance Sheet 16 19 Balance Sheet Sep 30, 2018 Dec 31, 2017 Cash $4,299,570 $2,748,313 Cash Restricted 20,436,369 14,416,444 Other Current Assets 1,494,366 738,312 Total Current Assets 26,230,305 17,903,069 Non Current Assets 2,897,348 2,499,510 Total Assets
Slide 20: Investment Highlights
3PEA International Investor Presentation Investment Highlights Vertically Integrated Business Record of Historical Growth Captive Audience to Grow Organically & Inorganically High Client Retention Clean Capital Structure with No Debt Large Market Opportunity in an Industry with High Barriers to Entr
Slide 21: Appendix A: Reconciliation of Net Income to Adjusted EBITDA
3PEA International Investor Presentation Appendix A 16 21 Reconciliation of annual and TTM (Q3 2018) Net Income to adjusted EBITDA Year Ended December 31, TTM 2015 2016 2017 (Q3 2018) Net income (loss) attributable to 3PEA $(2,410,337) $1,400,799 $1,791,141 $2,475,203 Depreciation and amortization 3
Slide 22: Contact Information
Contact Information 3PEA International, Inc. 1700 W Horizon Ridge Parkway Suite 200 Henderson, NV Tel: (702) 453 - 2221 www.3PEA.com Company Contact Jim McCroy Investor Relations / Strategic Development Tel: (702) 613 - 2265 IR@3PEA.com 22 3PEA International Investor Presentation
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