Points International, Ltd. - Report of Foreign Issuer
Points International, Ltd.
POINTS INTERNATIONAL LTD (Form: 6-K, Received: 03/09/2017 06:02:42)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE   13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March, 2017

Commission File Number: 001-35078

 

POINTS INTERNATIONAL LTD.

(Translation of registrant's name into English)
 
111 Richmond St., W. Suite 700, Toronto, ON, M5H 2G4, Canada
(Address of principal executive offices)
 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 Form 20-F [  ]      Form 40-F [X]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [  ]

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [  ]

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes [  ]   No [X]

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________________.

  SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  Points International Ltd.
  (Registrant)
     
Date: March 8, 2017 By: /s/ Michael D'Amico
  Name: Michael D'Amico
* Print the name and title under the signature of the signing officer. Title: Chief Financial Officer

 

NYC#: 108692.1

Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.

SEC1815(04-09)

 


EXHIBIT INDEX
 

99.1 News Release dated March 8, 2017





Points International Ltd. Reports Fourth Quarter and Full Year 2016 Financial Results

Full Year Revenue of $321.8 Million Increases 9% and Gross Profit of $43.3 Million Increases 2% Year-over-year

Full Year Net Income of $3.5 Million, before the impact of an impairment loss of $5.0 Million, Decreases 33% Year-over-year

Toronto, Canada, March 8, 2017 – Points (TSX: PTS) (Nasdaq: PCOM), the global leader in powering loyalty commerce, today announced results for the fourth quarter and full year ended December 31, 2016.

“Our strong fourth quarter operating performance, with a 67% increase in Adjusted EBITDA 1 and a 20% increase in Gross Profit 2 , our ability to grow net operating cash by 51% year-over-year and our recent multiple announcements on new business activity, clearly indicate that during 2016 we made important progress across the entire business, and we are optimistic that we will extend our track record of success as we look ahead,” stated Rob MacLean, CEO. “We produced strong strategic results in 2016. Based upon our prudent investment strategy, our core Currency Retailing, or Buy, Gift and Transfer, business has been highly profitable, now generating baseline economics of approximately $20 million of annual Adjusted EBITDA 1 enabling us to invest in longer-term opportunities. Our Platform Partners initiative, where our Loyalty Wallet plays a key role in bringing third parties onto the Loyalty Commerce Platform, will represent approximately 15% of our Gross Profit 2 and approach breakeven on an Adjusted EBITDA basis and therefore is a very compelling option for the Company. Finally, our unique market position, tremendous early traction on business development, growing ties with strategic industry players and a large, proven, high margin market in the online travel booking space all support our belief that our ongoing investment in the Points Travel service is clearly one of the most compelling ways we can build long-term shareholder value.”

Fourth Quarter 2016 Financial Results

(Unless otherwise stated, all comparisons are on a year-over-year basis and all amounts are in USD$)

  • Revenue increased 2% to $82.0 million from $80.2 million. Principal Revenues totaled $78.0 million, or growth of 1% as compared to $77.0 million. Other Partner Revenue was $3.9 million, an increase of 23% from $3.1 million.


______________________________________________
1
Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization, foreign exchange, share-based compensation, and impairment of long-term investment) is considered by Management to be a useful supplemental measure when assessing financial performance. Management believes that Adjusted EBITDA is an important indicator of the Corporation's ability to generate liquidity through operating cash flow to fund future capital expenditures and working capital needs. However, Adjusted EBITDA is not a measure of financial performance under IFRS and should not be considered a substitute for Net Income (Loss), which we believe to be the most directly comparable IFRS measure.
2 Gross profit is defined as total revenues less the direct cost of principal revenues. Gross profit is considered by Management to be an integral measure of financial performance and represents the amount of revenues retained by the Corporation after incurring direct costs. However, gross profit is not a recognized measure of profitability under IFRS.


  • Net Loss totaled $(3.7) million, or $(0.24) per diluted share, compared to a Net Income of $1.0 million, or $0.06 per diluted share. Included in the Net Loss for the fourth quarter of 2016 is a non-recurring, non-cash expense of $5.0 million associated with the write-off of Points’ co- investment in China Rewards.

  • Gross Profit 2 grew 20% to $11.9 million, or 14.5% of Total Revenue, compared to $10.0 million, or 12.4% of total revenue. As a percentage of Revenue, Gross Margin reflects the relative mix of partner and promotional activity during the quarter.

  • Total ongoing Operating Expenses, which consist of Employment Expenses, Marketing, Technology, and Other Operating Expenses, were $8.8 million in the fourth quarter of 2016, compared to $7.8 million in the prior year period.

  • Adjusted EBITDA 1 grew 67% to $3.7 million compared to $2.2 million.

Fourth Quarter 2016 Business Metrics

   Q4/16 Q4/15 Q4/16 vs.
Q4/15
Q3/16 Q4/16 vs.
Q3/16


Total All Channels


Points/Miles Transacted (in 000s)
6,775,312 5,879,013 15% 6,100,500 11%


No. of Points/Miles Transactions
624,684 581,861 7% 606,555 3%

Full Year 2016 Financial Highlights
(Unless otherwise stated, all comparisons are on a year-over-year basis and all amounts are in USD$)

  • Revenues increased 9% on a year-over-year basis to $321.8 million from $296.4 million in 2015. Principal Revenues were $309.0 million, up 9% from 2015. Other Partner Revenue was $12.6 million, a decrease of 2% from last year.

  • Net Loss was $(1.5) million, or $(0.10) per diluted share, compared to Net Income of $5.2 million, or $0.33 per diluted share, in 2015. Included in the Net Loss for 2016 is a non-recurring, non-cash expense of $5.0 million associated with the write-down of Points’ investment in the China Rewards retail coalition.

  • Gross Profit 2 grew to $43.3 million, an increase of 2% year-over-year, or approximately 13.5% as a percent of Total Revenue, down slightly from 14.4% in 2015, reflecting the relative mix of partner and promotional activity during the year.

  • Total ongoing Operating Expenses, which consist of Employment Expenses, Marketing, Technology, and Other Operating Expenses, were $33.5 million in 2016, up 6% over $31.6 million in the prior year period, primarily due to investments in growth opportunities in our Travel and Platform Partnerships lines of business.


  • Adjusted EBITDA 1 was $12.1 million, compared to $12.6 million in 2015.

  • As of December 31, 2016, total funds available, comprised of cash and cash equivalents together with short term investments, restricted cash and amounts with payment processors, was $67.5 million. Net operating cash, which is defined as total funds available less amounts payable to loyalty program partners, increased 51% to $14.2 million as of December 31, 2016 versus $9.4 million on the same date in 2015.

Recent Business Highlights

  • Launched a partnership with Copa Airlines to enable ConnectMiles program members to buy, gift or transfer their reward miles. The partnership supports Points' expansion into the Central American market and allows Copa Airlines to better engage their ConnectMiles members.
  • Initiated new relationship with Air Canada’s Altitude program to sell tier qualifying miles.
  • Signed a new partnership with the WestJet Rewards program to better engage their members through Points services.
  • Expanded Point Travel SaaS booking service to include car rental booking functionality. The new service launched with Miles & More, Europe's leading frequent flyer and awards program with more than 300 partners, giving over 29 million members the ability to book car rentals by using their miles, or a combination of miles and cash.
  • Signed a multi-year Points Travel agreement with All Nippon Airways (ANA) Mileage Club, the frequent flyer program of Japan’s largest airline to launch ANA Global Hotels and Car Rentals, giving members the ability to book using their Mileage Club miles or earn miles on bookings.
  • In collaboration with Collinson Latitude, Points will also launch ANA Global Mileage Mall and ANA Global Selection for additional opportunities to earn or redeem awards.
  • Choice Hotels became the industry’s first hotel loyalty program to leverage the Points Loyalty Wallet service to manage points transfers between the Choice Privileges program and its twelve international frequent flyer program partners.
  • Alaska Airlines takes advantage of the Points Loyalty Wallet service to assist in the integration of the newly acquired Virgin America Elevate program.

Share Buyback

In the fourth quarter, the Company repurchased 293,970 shares of its common stock for a total of $2.0 million at an average price of $6.90 per share. The Board of Directors has approved the renewal of the Corporation's normal course issuer bid for an additional year. The renewal of the issuer bid, and any purchases made thereunder, is and will be subject to compliance with the requirements of the Toronto Stock Exchange and applicable Canadian and United States laws.

Outlook

“As we lay the foundation for stronger growth from newer, high-margin products, the contribution from these products to gross profit will be disproportionately larger than their impact on total revenue,” commented MacLean, “Given our ultimate goal of increasing profitability, we are increasingly focused on total gross profit and adjusted EBITDA, as reflected in our guidance to these metrics.”

The Company is initiating financial guidance for the year ending December 31, 2017, as follows:

  • Gross profit 2 is expected to increase up to 10% from 2016
  • Adjusted EBITDA 1 is expected to increase up to 10% from 2016

Investor Conference Call

Points' conference call with investors will be held today at 4:30 p.m. Eastern Time. To participate, investors from the US and Canada should dial (877) 407-0784 ten minutes prior to the start time. International callers should dial (201) 689-8560.

In addition, the call is being webcast and can be accessed at the Company's web site: www.points.com and will be archived online upon completion of the call. A telephonic replay of the conference call will also be available until 11:59 p.m. Eastern Time on Wednesday, March 22, 2017, by dialing (844) 512-2921 in the U.S. and Canada and (412) 317-6671 internationally and entering the passcode 13655904.

About Points

Points, publicly traded as Points International Ltd. (TSX: PTS) (Nasdaq: PCOM), provides loyalty eCommerce and technology solutions to the world's top brands to power innovative services that drive increased loyalty program revenue and member engagement. With a growing network of over 50 global loyalty programs integrated into its unique Loyalty Commerce Platform, Points offers three core private or co-branded services: its Buy Gift and Transfer service retails loyalty points and miles directly to consumers; its Points Loyalty Wallet service offers any developer transactional access to dozens of loyalty programs and their hundreds of millions of members via a package of APIs; and its Points Travel service helps loyalty programs increase program revenue from hotel bookings, and provides more opportunities for members to earn and redeem loyalty rewards more quickly. Points is headquartered in Toronto with offices in San Francisco and London.

For more information, visit company.points.com , follow Points on Twitter ( @PointsLoyalty ) or read the Points blog . For Points’ financial information, visit investor.points.com.

Caution Regarding Forward-Looking Statements

This press release contains or incorporates forward-looking statements within the meaning of United States securities legislation, and forward-looking information within the meaning of Canadian securities legislation (collectively, "forward-looking statements"). These forward-looking statements include, among other things, opportunities for new products and partners and incremental revenue, potential for growth in revenue and gross margin and our guidance for 2017 with respect to gross profit and adjusted EBITDA expectations. These statements are not historical facts but instead represent only Points' expectations, estimates and projections regarding future events.

Although Points believes the expectations reflected in such forward-looking statements are reasonable, such statements are not guarantees of future performance and are subject to important risks and uncertainties that are difficult to predict. Certain material assumptions or estimates are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Undue reliance should not be placed on such statements. In particular, the financial outlooks herein assume Points will be able to maintain its existing contractual relationships and products, that such products continue to perform in a manner consistent with Points' past experience, that Points will be able to generate new business from our pipeline at expected margins, our in-market and newly launched products and services will perform in a manner consistent with the Company's past experience and we will be able to contain costs. Our ability to convert our pipeline of prospective partners and product launches is subject to significant risk and there can be no assurance that we will launch new partners or new products with existing partners as expected or planned nor can there be any assurance that Points will be successful in maintaining its existing contractual relationships or maintaining existing products with existing partners. Other important risk factors that could cause actual results to differ materially include the risk factors discussed in Points' annual information form, Form-40-F, annual and interim management's discussion and analysis, and annual and interim financial statements and the notes thereto. These documents are available at www.sedar.com and www.sec.gov .

The forward-looking statements contained in this press release are made as at the date of this release and, accordingly, are subject to change after such date. Except as required by law, Points does not


undertake any obligation to update or revise any forward-looking statements made or incorporated in this press release, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Measures

The Corporation’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). Management uses certain non-GAAP measures, which are defined in the appropriate sections of this press release, to better assess the Corporation’s underlying performance. These measures are reviewed regularly by management and the Corporation’s Board of Director’s in assessing the Corporation’s performance and in making decisions about ongoing operations. These measures are also used by investors as an indicator of the Corporation’s operating performance. Readers are cautioned that these terms are not recognized GAAP measures and do not have a standardized GAAP meaning under IFRS and should not be construed as alternatives to IFRS terms, such as net income.

 

Contact

Points Investor Relations
ICR, Inc.
Garo Toomajanian
ir@points.com


Points International Ltd.
Key Financial Measures and Schedule of Non-GAAP Reconciliations

Gross Profit 3 Information

Expressed in thousands of United States dollars

    For the three months ended     For the twelve months ended  
                         
    December 31, 2016     December 31, 2015     December 31, 2016     December 31, 2015  
                         
Total Revenue $  81,955   $  80,228   $  321,821   $  296,376  
Direct cost of principal revenue   70,034     70,264     278,483     253,710  
Gross Profit $  11,921   $  9,964   $  43,338   $  42,666  
Gross Margin   15%     12%     13%     14%  

Reconciliation of Net Income (loss) to Adjusted EBITDA 4

Expressed in thousands of United States dollars

    For the three months ended     For the twelve months ended  
                         
    December 31, 2016     December 31, 2015     December 31, 2016     December 31, 2015  
                         
Net Income (loss) $  (3,674 ) $  961   $  (1,515 ) $  5,165  
Share-based compensation   570     6     2,317     1,588  
Income tax expense (recovery)   628     451     1,545     2,474  
Depreciation and Amortization   1,078     895     4,529     3,546  
Foreign Exchange loss (gain)   61     (117 )   230     (131 )
Impairment of long-term investments   5,000     -     5,000     -  
Adjusted EBITDA $  3,663   $  2,196   $  12,106   $  12,642  

______________________________________________
3
Gross Profit is defined as total revenues less the direct cost of principal revenues. Gross profit is considered by Management to be an integral measure of financial performance and represents the amount of revenues retained by the Corporation after incurring direct costs. However, gross profit is not a recognized measure of profitability under IFRS.

4 Adjusted EBITDA (Earnings before income tax expense, depreciation and amortization, foreign exchange, share-based compensation and impairment of long-term investments) is considered by Management to be a useful supplemental measure when assessing financial performance. Management believes that Adjusted EBITDA is an important indicator of the Corporation's ability to generate liquidity through operating cash flow to fund future capital expenditures and working capital needs. However, Adjusted EBITDA is not a measure of financial performance under IFRS and should not be considered a substitute for Net Income (Loss), which we believe to be the most directly comparable IFRS measure.


Points International Ltd.
Consolidated Statements of Financial Position

Expressed in thousands of United States dollars

As at December 31   2016     2015  
             
ASSETS            
Current assets            
       Cash and cash equivalents $  46,492   $  51,364  
       Short-term investments   10,033     -  
       Restricted cash   500     1,000  
       Funds receivable from payment processors   10,461     6,588  
       Accounts receivable   4,057     2,988  
       Prepaid expenses and other assets   1,475     1,256  
Total current assets   73,018     63,196  
             
Non-current assets            
         Property and equipment   1,750     1,466  
         Intangible assets   16,896     18,616  
         Goodwill   7,130     7,130  
         Deferred tax assets   1,725     1,755  
         Long-term investment   -     5,000  
         Other assets   2,715     2,765  
Total non-current assets   30,216     36,732  
Total assets $  103,234   $  99,928  
             
LIABILITIES            
Current liabilities            
     Accounts payable and accrued liabilities $  6,335   $  5,530  
     Income taxes payable   1,638     278  
     Payable to loyalty program partners   53,242     49,526  
     Current portion of other liabilities   771     1,852  
Total current liabilities   61,986     57,186  
             
Non-current liabilities            
     Deferred tax liabilities   211     425  
     Other liabilities   719     122  
Total non-current liabilities   930     547  
             
Total liabilities $  62,916   $  57,733  
             
SHAREHOLDERS’ EQUITY            
     Share capital   58,412     59,293  
     Contributed surplus   9,881     9,859  
     Accumulated other comprehensive loss   (127 )   (624 )
     Accumulated deficit   (27,848 )   (26,333 )
Total shareholders’ equity $  40,318   $  42,195  
Total liabilities and shareholders’ equity $  103,234   $  99,928  


Points International Ltd.
Consolidated Statements of Comprehensive Income (Loss)

Expressed in thousands of United States dollars, except per share amounts

    For the three months     For the twelve months  
    ended     ended  
    December     December     December     December  
    31, 2016     31, 2015     31, 2016     31, 2015  
REVENUE                        
     Principal $  78,023   $  77,045   $  308,964   $  283,409  
     Other partner revenue   3,862     3,143     12,648     12,871  
     Interest   70     40     209     96  
Total Revenue $  81,955   $  80,228   $  321,821   $  296,376  
                         
EXPENSES                        
     Direct cost of principal revenue   70,034     70,264     278,483     253,710  
     Employment costs   5,646     5,220     23,220     22,699  
     Marketing and communications   973     531     2,220     1,704  
     Technology services   455     355     1,691     1,343  
     Depreciation and amortization   1,078     895     4,529     3,546  
     Foreign exchange (gain) loss   61     (117 )   230     (131 )
     Operating expenses   1,754     1,668     6,418     5,866  
     Impairment of long-term investments   5,000     -     5,000     -  
Total Expenses $  85,001   $  78,816   $  321,791   $  288,737  
                         
INCOME (LOSS) BEFORE INCOME TAXES $  (3,046 ) $  1,412   $  30   $  7,639  
                         
     Income tax expense   628     451     1,545     2,474  
NET INCOME (LOSS) $  (3,674 ) $  961   $  (1,515 ) $  5,165  
                         
OTHER COMPREHENSIVE INCOME (LOSS)                        
     Items that will subsequently be reclassified to profit or loss:                        
     Unrealized gain (loss) on foreign exchange derivatives 
     designated as cash flow hedges
  (358 )   (418 )   401     (1,796 )
     Income tax effect   95     111     (106 )   476  
     Reclassification to net income of loss (gain) on foreign 
     exchange derivatives designated as cash flow hedges
  (41 )   447     269     1,428  
     Income tax effect   15     (218 )   (67 )   (378 )
Other comprehensive income (loss) for the period, net of income tax $  (289 ) $  (78 ) $  497   $  (270 )
                         
TOTAL COMPREHENSIVE INCOME (LOSS) $  (3,963 ) $  883   $  (1,018 ) $  4,895  
                         
EARNINGS (LOSS) PER SHARE                        
     Basic earnings (loss) per share $  (0.24 ) $  0.06   $  (0.10 ) $  0.33  
     Diluted earnings (loss) per share $  (0.24 ) $  0.06   $  (0.10 ) $  0.33  


Points International Ltd.
Consolidated Statements of Changes in Shareholders’ Equity

    Attributable to equity holders of the Company  
Expressed in thousands of United States dollars except                     Accumulated              
number of shares                     other           Total  
                Contributed     comprehensive     Accumulated     shareholders’  
    Share     Capital     Surplus     loss     deficit     equity  
    Number of     Amount                          
       Shares                                  
                                     
Balance at December 31, 2015   15,306,402   $  59,293   $  9,859   $  (624 ) $  (26,333 ) $  42,195  
Net loss   -     -     -     -     (1,515 )   (1,515 )
Other comprehensive income   -     -     -     497     -     497  
Total comprehensive loss   -     -     -     497     (1,515 )   (1,018 )
Effect of share option compensation plan   -     -     540     -     -     540  
Effect of RSU compensation plan   -     -     1,777     -     -     1,777  
Share issuances – share options   500     7     (2 )   -     -     5  
Share issuances – RSUs   -     791     (791 )   -     -     -  
Shares repurchased   (428,228 )   (1,679 )   (1,502 )   -     -     (3,181 )
Balance at December 31, 2016   14,878,674   $  58,412   $  9,881   $  (127 ) $  (27,848 ) $  40,318  
                                     
                                     
Balance at December 31, 2014   15,649,085   $  61,084   $  11,985   $  (354 ) $  (31,498 ) $  41,217  
Net income   -     -     -     -     5,165     5,165  
Other comprehensive loss   -     -     -     (270 )   -     (270 )
Total comprehensive income   -     -     -     (270 )   5,165     4,895  
Effect of share option compensation plan   -     -     934     -     -     934  
Effect of RSU and PSU compensation plan   -     -     654     -     -     654  
Share issuances – share options   96,411     615     (338 )   -     -     277  
Share issuances – RSUs   -     513     (513 )   -     -     -  
Share capital held in trust   -     (1,215 )   -     -     -     (1,215 )
Shares repurchased   (439,094 )   (1,704 )   (2,863 )   -     -     (4,567 )
Balance at December 31, 2015   15,306,402   $  59,293   $  9,859   $  (624 ) $  (26,333 ) $  42,195  


Points International Ltd.
Consolidated Statements of Cash Flows
Expressed in thousands of United States dollars

    For the three months     For the twelve months  
    ended     ended  
    December     December 31,     December     December  
    31, 2016     2015     31, 2016     31, 2015  
                         
    Cash flows from operating activities                        
   Net income (loss) for the period $  (3,674 ) $  961   $  (1,515 ) $  5,165  
   Adjustments for:                        
       Depreciation of property and equipment   191     231     1,127     1,037  
       Amortization of intangible assets   887     664     3,402     2,509  
       Unrealized foreign exchange loss (gain)   (638 )   (226 )   (1,088 )   (949 )
       Equity-settled share-based payment transactions   570     6     2,317     1,588  
       Impairment of long-term investments   5,000     -     5,000     -  
       Deferred income tax expense (recovery)   (181 )   804     (345 )   2,261  
   Net (gain) loss on derivative contracts designated
     as cash flow hedges
  (399 )   (107 )   670     (368 )
   Changes in non-cash balances related to operations   8,966     11,531     286     10,689  
    Net cash provided by operating activities $  10,722   $  13,864   $  9,854   $  21,932  
                         
    Cash flows from investing activities                        
   Acquisition of property and equipment   (294 )   (115 )   (1,411 )   (647 )
   Additions to intangible assets   (332 )   (842 )   (1,682 )   (2,805 )
   Changes in short-term investments   (10,033 )   -     (10,033 )   -  
   Changes in restricted cash   -     280     500     530  
    Net cash used in investing activities $  (10,659 ) $  (677 ) $  (12,626 ) $  (2,922 )
                         
    Cash flows from financing activities                        
   Proceeds from exercise of share options   -     5     5     277  
   Shares repurchased   (2,028 )   (902 )   (3,181 )   (4,567 )
   Purchases of share capital held in trust   -     -     -     (1,215 )
    Net cash used in financing activities $  (2,028 ) $  (897 ) $  (3,176 ) $  (5,505 )
                         
    Net increase (decrease) in cash and cash equivalents $  (1,965 ) $  12,290   $  (5,948 ) $  13,505  
   Cash and cash equivalents at beginning of the period $  47,832   $  38,847   $  51,364   $  36,868  
   Effect of exchange rate fluctuations on cash held   625     227     1,076     991  
    Cash and cash equivalents at end of the period $  46,492   $  51,364   $  46,492   $  51,364  
                         
Interest Received $  38   $  34   $  153   $  89  
Interest Paid   -     -     -     -  
                         
Taxes Received   -     -     -     31  
Taxes Paid $  -   $  (9 ) $  (542 ) $  (435 )

Amounts paid and received for interest were reflected as operating cash flows in the consolidated statements of cash flows.