Points International Reports Preliminary Second Quarter 2020 Results

- Business Trends Continue to Improve -
- Achieved Approximately Break-Even Adjusted EBITDA for the Quarter -
- Full Q2 2020 Financial Results to be Issued on August 12, 2020 -

TORONTO, July 08, 2020 (GLOBE NEWSWIRE) -- Points International Ltd. (TSX: PTS) (Nasdaq: PCOM) (Points or the Company), the global leader in powering loyalty commerce, is providing a preliminary update on its second quarter 2020 results.

Q2 2020 Financial Highlights

• Gross profit is expected to range between $6.5 million and $7.1 million.
• Adjusted EBITDA¹ is expected to range between $(0.2) million and $0.3 million.
• At June 30, 2020, total funds available² stood at approximately $107 million, including a $35 million drawdown on the Company’s revolving credit facility.

Q2 2020 Operational Highlights

• Loyalty Currency Retailing (LCR): Launched a new partnership with Qatar Airways’ Privilege Club in June—deploying Buy, Gift and Transfer services into market with additional LCR services expected later this year.
• Platform Partners: Expanded exchange opportunities across the platform, including the addition of Virgin Australia’s Velocity program to the Choice Privileges exchange program, and connecting Citi Bank’s ThankYou points with the Emirates Skywards program.

Management Commentary

“Given the ongoing global impact from COVID-19, we felt it was important to provide an early look into our improving business metrics for the second quarter,” said Rob MacLean, CEO of Points. “Although we have paused hiring and material capital expenditures since mid-March, we have maintained our team and everyone continues to work remotely, seamlessly and at full capacity. This has proven to be an important asset, as many of our loyalty program partners have become increasingly engaged in marketing and merchandising our revenue generating services over the last couple of months. Since the lockdown started, we have been fully occupied with new deployments for a number of existing partners like Air Canada, while also launching new partners around the world such as Quidco in the UK and Qatar in the Middle East.

“Our performance in the second quarter was much stronger than we originally anticipated at the beginning of the pandemic, as trends have steadily improved since the low points in late March and early April. In June, we generated gross profit that was almost 70% of our 2019 monthly average, up from just under 50% in May and 20% in April. Cash grew through the May/June period and, at this point, we are optimistic these positive trends will continue through the second half of 2020. Given our improved performance and strong balance sheet, we elected to repay $5 million on our revolving credit facility in June, bringing our balance down to $35 million as of June 30, 2020.