Points International Ltd. (NASDAQ:PCOM) Q1 2019 Earnings Conference Call Transcript

May 09, 2019 • 04:30 pm ET


Points International Ltd. (NASDAQ:PCOM) Q1 2019 Earnings Conference Call Transcript


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Good afternoon, everyone, and thank you for participating in today's conference call to discuss Points International Financial Results for the First Quarter ended March 31, 2019. Delivering today's prepared remarks are Chief Executive Officer, Rob McLean; President, Christopher Barnard; and Chief Financial Officer, Erick Georgiou. After their prepared remarks, the management team will take your questions and will also address questions from investors received via e-mail over the last few weeks.

Before we go further, I would like to turn the call over to Sean Mansouri of Gateway Investor Relations, Points International's IR Advisor, as he reads the Company's safe harbor that provides important cautions regarding forward-looking statements. Sean, please go ahead.

Sean Mansouri

Thank you. Please be reminded that the remarks on this conference call may contain or refer to forward-looking statements within the meaning of Canadian and US securities laws. Management may also make additional forward-looking statements in response to your questions. Although management believes these forward-looking statements are reasonable, such statements are not guarantees of future performance or action and are subject to important risks and uncertainties that are difficult to predict.

Certain material assumptions are applied in making forward-looking statements and may not prove to be correct. Important factors that can cause actual results to differ materially and the assumptions used in making such statements are included in our first quarter financial results press release issued prior to this call as well as other documents filed with the Canadian and US securities regulators. Except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

With that said, I'll turn the call over to Points' Chief Executive Officer, Rob MacLean. Rob?

Robert MacLean

Thank you, Sean, and good afternoon, everyone. As is often the case with our first quarter conference calls, not much time has elapsed since the fourth quarter call in March and even less time since our investor event held in Toronto on March 28. For those of you that could not attend, we presented a very detailed overview of our business and industry and would encourage you to listen to the webcast replay posted on the Investors section of our website.

Now instead of repeating many of the same points made in those communications, today we're going to generally focus on key updates from the first quarter with the exception of reminding listeners about the key growth initiatives introduced on our last conference call. These growth drivers can be broken down into three key elements. Signing new partnerships, cross-selling new services to current partners and growing existing services already in market. All three benefit from an increased focus on geographic expansion, migration into new verticals and targeted corporate development.

Our execution of these growth initiatives will enable the accelerated growth we projected over the next few years, which will have us growing gross profit to the high $90 million range and more than doubling adjusted EBITDA to the mid-$40 million