Points International reports 2004 first quarter results

Points recurring revenues grew by 31% over the fourth quarter of 2003 and by 53% year over year. As a result of this strong growth and the partners acquired, Management expects the second quarter revenues to experience higher growth rates than first quarter of 2004. General and administrative expenses were $2.65 million for the quarter (2003 - $1.50 million) and flat compared to the fourth quarter of 2003. Points expects the second quarter general and administrative expenses to be similar to the first quarter of 2004. Earnings (loss) before interest, amortization and other deductions (EBITDA) of ($1.03) million for the first quarter of 2004 compared with ($1.20 million) in the prior quarter and ($202,000) for the same period in 2003. A 25% reduction in the period net loss, to $1.90 million compared with $2.61 million in the prior quarter. The loss for the previous year was $1.02 million. Cash increased to $24.24 million at quarter end, compared to $20.27 million at 2003 year end. Increased cash is attributed to growth in Points business and, as a result, deposits have also increased. As at quarter-end, Points has powered the cumulative online exchange, sale and transfer of over 3.8 billion points and miles, up from 3.0 billion at year-end 2003. Points Exchange activity continued to demonstrate strong growth in the first quarter of 2004, with over 400% more points and miles being exchanged versus the same period in 2003. The transaction size of each exchange also grew to 17,900 points per exchange, an increase of 42% over the first quarter of 2003.