I-Remit Reports 17.6% Net Income Growth in 1Q2012

Pasig–(PHStocks)–I-Remit Inc. (PSE: I) realized a consolidated net income of PhP33.4 million in the first quarter of 2012, an increase of PhP5 million or 17.6% over the consolidated net income of PhP28.4 million in the same period last year.

Revenues decreased by PhP15 million or PhP199.3 million, down by 7% from PhP214.3 million in first quarter of 2011. Accordingly, the company’s gross income decreased by PhP17.3 million or -10.4% year-on-year to PhP148.2 million.

Transaction count increased by 4.4% from 698,007 in First Quarter 2011 to 728,465 in First Quarter 2012). US Dollar (US$) remittance volume increased by 47.3% from US$320.4 million in First Quarter 2011 to US$471.8 million in First Quarter 2012). Of the total transaction count in First Quarter 2012, the percentage contributions per region are as follows: Asia-Pacific, 43%; Middle East, 29%; North America, 13%; and Europe, 12%. In terms of USD remittance volume, the regional contributions are as follows: Asia-Pacific, 26%; Middle East, 13%, North America, 10%, and Europe, 9%.

Other operating income increased by PhP12.7 million from a net loss of PhP3.8 million in the first quarter of 2011 to an income of PhP8.9 million in the first quarter 2012.

Total operating expenses was lower by PhP8.5 million or -7% from PhP120.7 million in the first quarter 2011 to PhP112.2 million in the first quarter 2012, mainly on account of lower professional fees, salaries, wages and employee benefits, transportation and travel, and marketing expenses. Interest expense was lower by PhP2.6 million from PhP8.3 million in First Quarter 2011 to PhP5.8 million in First Quarter 2012.

The total assets of the Company decreased by PhP212.4 million or -8.4% to PhP2.325 billion as of March 31, 2012 against PhP2.537 billion as of March 31, 2011. Cash and cash equivalents increased by PhP190.4 million or 19.8% from PhP961.4 million as of March 31, 2011 to PhP1.151 billion as of March 31, 2012. Financial assets at FVPL, which consist of investments in private debt securities (listed overseas) held for trading, stood at PhP109 million as of March 31, 2012, a decrease of PhP2 million or -1.8% against PhP111 million as of March 31, 2011. Receivables decreased by PhP387.8 million or -31% from PhP1.252 billion as of March 31, 2011 to PhP864.6 million as of March 31, 2012. Other current assets decreased by PhP2.7 million or -15.1% from PhP17.9 million as of March 31, 2011 to PhP15.2 million as of March 31, 2012. Investments in associates decreased by PhP2.9 million or -13.6% from PhP21.6 million as of March 31, 2011 to PhP18.6 million as of March 31, 2012. Property and equipment-net decreased by PhP4.8 million or -17% from PhP28.1 million as of March 31, 2011 to PhP23.3 million as of March 31, 2012. Goodwill decreased by PhP1.5 million or -1.6% from PhP94.5 million as of March 31, 2011 to PhP93 million as of March 31, 2012 due to foreign exchange adjustment. Deferred tax asset increased by PhP1.9 million or 36.5% from PhP5.3 million as of March 31, 2011 to PhP7.2 million as of March 31, 2012. Software costs–net decreased by PhP1 million or -38.8% from PhP2.6 million as of March 31, 2011 to PhP1.6 million as of March 31, 2012. Other noncurrent assets decreased by PhP2.3 million or -5.4% from PhP43.1 million as of March 31, 2011 to PhP40.8 million as of March 31, 2012.

Total liabilities decreased by PhP313 million or -25.0% from PhP1.250 billion as of March 31, 2011 to PhP937.9 million as of March 31, 2012. Current liabilities decreased by PhP312.4 million or -25% from PhP1.250 billion as of March 31, 2011 to PhP937.8 million as of March 31, 2012 mainly due to the decrease in beneficiaries and other payables by PhP229.8 million or -43.1 from PhP533.2 million as of March 31, 2011 to PhP303.4 million as of March 31, 2012 as well as to interest-bearing loans by PhP83 million or -11.8 from PhP701.0 million as of March 31, 2011 to PhP618 million as of March 31, 2012. Interest-bearing loans consist of unsecured, short-term peso-denominated loans from various local financial institutions with interest rates ranging from 5% to 6.75% per annum in first quarter 2012 and 5% to 6.0% in first quarter 2011.

Accounts payable and other liabilities decreased by PhP229.4 million or -41.8% to PhP319.8 million as of March 31, 2012 compared with PhP549.2 million as of March 31, 2011. Comprising accounts payable and other liabilities are payables to beneficiaries of PhP232.9 million, payables to agents, couriers and trading clients of PhP34.6 million, accrued expenses of PhP17.2 million, withholding tax payable of PhP2.2 million, advances from related parties of PhP12.2 million, income tax payable of PhP16.4 million, payables to government agencies of PhP1.4 million, and other non-trade payables of PhP2.9 million. Noncurrent liabilities amounting to PhP0.12 million as of March 31, 2012 consist of retirement liability of PhP0.09 million and deferred tax liability of PhP0.03 million.

The Company’s stockholders’ equity as of March 31, 2012 stood at PhP1.387 billion, higher by PhP100.6 million or 7.8% against the March 31, 2011 level of PhP1.286 billion due to higher net income and stock dividend.

The Bangko Sentral ng Pilipinas reported last month that money transfers by overseas Filipinos grew by 5.8% to US$1.587 billion in February 2012 from US$1.5 billion a year earlier. On a year-to-date basis, the total remittance inflows amounted to US$3.144 billion in January to February of 2012, growing by 5.6% against the inflows of US$2.977 billion in the first two (2) months of 2011. The continued inflow of remittances is supported by the sustained demand for Filipino manpower in various foreign labor markets. The Philippine Overseas Employment Administration (POEA) recently announced that it expects over a million highly skilled Filipino workers would be hired abroad this year. The latest data from the POEA showed that for the period January-March 2012, job orders for professional and technical, service and production workers increased 24.6% to 200,010 compared with the same period last year. These are mainly intended for employment opportunities in Saudi Arabia, United Arab Emirates, Qatar, Taiwan, Kuwait, Singapore and Hong Kong, among others.