NASHVILLE, Tenn.--Nov. 3, 2005--iPayment, Inc. (NASDAQ: IPMT) today announced financial results for the third quarter and nine months ended September 30, 2005. Revenues grew 87.6% to $175,176,000 for the quarter from $93,388,000 for the third quarter of 2004. Net income was $8,129,000 for the third quarter of 2005, up 26.2% from $6,439,000 for the third quarter of 2004. Earnings per diluted share increased 25.0% to $0.45 from $0.36 for the third quarter of 2004. Results for the third quarter of 2005 include pre-tax expenses of $334,000 related to the previously announced work of the Special Committee of the Board of Directors as it continues to explore strategic alternatives.
The Company`s revenue growth for the quarter reflected an increase in charge volume to $6.4 billion from $3.3 billion for the third quarter of 2004. At September 30, 2005, iPayment, Inc. and its wholly-owned subsidiaries had 353 employees.
The Company has made the determination that during the pendency of the Special Committee process it will not provide financial guidance or hold a conference call to discuss its third quarter results.
This press release contains forward-looking statements about iPayment, Inc. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. For example, statements in the future tense, words such as "anticipates," "estimates," "expects," "intends," "plans," "believes," and words and terms of similar substance used in connection with any discussion of future results, performance or achievements identify such forward-looking statements. Those forward-looking statements involve risks and uncertainties and are not guarantees of future results, performance or achievements, and actual results, performance or achievements could differ materially from the Company`s current expectations as a result of numerous factors, including but not limited to the following: acquisitions; liability for merchant chargebacks; restrictive covenants governing the Company`s indebtedness; actions taken by its bank sponsors; migration of merchant portfolios to new bank sponsors; the Company`s reliance on card payment processors and on independent sales organizations; changes in interchange fees; risks associated with the unauthorized disclosure of data; imposition of taxes on Internet transactions; actions by the Company`s competitors; and risks related to the integration of companies and merchant portfolios the Company has acquired or may acquire. These and other risks are more fully disclosed in the Company`s filings with the U.S. Securities and Exchange Commission, including without limitation the Company`s Annual Report on Form 10-K for 2005. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
iPayment, Inc. is a provider of credit and debit card-based payment processing services to over 135,000 small merchants across the United States. iPayment`s payment processing services enable merchants to process both traditional card-present, or "swipe," transactions, as well as card-not-present transactions, including transactions over the internet or by mail, fax or telephone.
CONTACT:
iPayment, Inc.
Clay Whitson
615-665-1858, Ext. 115
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