December 27, 2014 10:18 PM ET

IT Services

Company Overview of iPayment Inc.

Company Overview

iPayment, Inc. provides credit and debit card payment processing services to small merchants in the United States. It performs various functions for small merchants, such as application processing, underwriting, account set-up, risk management, fraud detection, merchant assistance and support, and equipment deployment and chargeback services. The company’s processing services enable merchants to accept credit cards and other forms of payment, including debit cards, checks, gift cards, and loyalty programs in traditional card-present or swipe transactions, as well as in card-not-present transactions, such as those conducted over the phone or through the Internet. It markets and sells its serv...

126 East 56th Street

New York, NY 10022

United States

Founded in 1999

422 Employees

Phone:

212-802-7200

Key Executives for iPayment Inc.

Chairman and Chief Executive Officer
Age: 46
Chief Financial Officer
Age: 48
Chief Accounting Officer and Vice President of Finance
Age: 44
Senior Vice President
Age: 52
Compensation as of Fiscal Year 2014.

iPayment Inc. Key Developments

iPayment Inc. Announces Earnings and Operating Results for the Third Quarter and Nine Months Ended September 30, 2014

iPayment Inc. announced earnings and operating results for the third quarter and nine months ended September 30, 2014. Total revenue for the third quarter was $178.6 million, an increase of 6.5% over the third quarter of 2013. Net revenue increased 1.5% to $79 million in the third quarter from $77.8 million in the third quarter of last year. The contributors to the third quarter increase in net Revenues were higher transaction volume, partially offset by lower rate despite a lower number of merchants and lower other revenue. Income from operations for the third quarter was $10.9 million versus $11.7 million in the comparable period of 2013. This decrease was attributable to higher cost -- other cost of services and SG&A, partially offset by higher net revenues. Excluding stock-based compensation and nonrecurring items, income from operations would have been $11.8 million. Consolidated EBITDA for the third quarter was $23.1 million compared to $25.9 million for the third quarter of last year. During the third quarter, the company spent $1.1 million on capital expenditures, $5 million on acquisitions of businesses and $2.5 million on residual buybacks. Total revenue for the first nine months similarly increased 4.4% to $519.6 million from $497.7 million in the prior period. The revenue increase was driven by higher transaction volumes, mitigated by a lower number of merchants. Net revenue increased 0.6% to $236.6 million from $235.3 million in the same period of 2013. Income from operations increased to $33.6 million from $30.5 million in the comparable period of last year, an increase of 10.4%. Net and comprehensive income for iPayment for the third quarter was a loss of $4.7 million versus a loss of $7 million in the third quarter 2013. The loss in 2014 was driven by a loss before income taxes of $5.7 million and an income tax benefit of $1 million. The company used $13.5 million of cash for investment -- investing activities. Of this, $3.1 million was for capital expenditures, $8 million was for acquisitions of businesses and $2.5 million was for residual buybacks. Total transactions processed in the third quarter were $90.3 million, an increase of 3.7% year-over-year. Transactions per merchant per month in the third quarter were 286, a 7.7% increase from the prior period. Average ticket in the quarter remained unchanged at $64.90. At the end of the third quarter, the company had approximately 104,000 active merchants, down 3.3% from the third quarter of 2013. In the third quarter, average monthly volume per active merchant was approximately $18,600, an 8.6% increase over the comparable period in 2013. New merchant applications in the third quarter increased 22.7% from the third quarter of 2013. Headcount at September 30 was 429 versus 433 at the same time last year. For the nine months, total charge volume was $16.9 billion, up 1.9% from the first nine months of the prior year. For the first 9 months of this year, the year-over-year comparison improved from the first half, where the volume increase was 0.5%. Transactions processed were $259.8 million, 2.3% more than the first nine months of 2013.

iPayment Holdings, Inc., iPayment Inc., Q3 2014 Earnings Call, Nov 17, 2014

iPayment Holdings, Inc., iPayment Inc., Q3 2014 Earnings Call, Nov 17, 2014

IPayment Holdings Inc. and iPayment Inc. Appoint Greg Cohen as President

IPayment Holdings Inc. and iPayment Inc. on Oct. 14, 2014 appointed Greg Cohen as president. Since February 2013, Cohen served as chief revenue and strategy officer for Merchant Warehouse Inc.

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