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Points International Reports Second Quarter 2019 Results and Increases Full Year Outlook

- Reports Record Quarterly Revenue, Gross Profit and Adjusted EBITDA -
- Progress Across Numerous Long Term Strategic Initiatives -

TORONTO, Aug. 01, 2019 (GLOBE NEWSWIRE) -- Points International Ltd. (TSX: PTS) (Nasdaq: PCOM) (Points or the Company), the global leader in powering loyalty commerce, is reporting financial results for the second quarter ended June 30, 2019.

Unless otherwise noted, all comparisons are on a year-over-year basis and all amounts are in USD. The complete second quarter Condensed Consolidated Interim Financial Statements and Management Discussion & Analysis, including segmented results, are available at www.sedar.com and www.sec.gov.

Second Quarter 2019 Financial Highlights (vs. Q2 2018)

  • Total revenue increased to a record $100.2 million compared to $97.9 million.
  • Gross profit1 increased 49% to $20.5 million compared to $13.7 million. Excluding the benefit of an approximate $6.0 million tax rebate that was confirmed in the second quarter for claims related to prior periods, gross profit was up 5% to $14.4 million, a quarterly record.
  • Net income increased to $6.3 million or $0.45 per diluted share, compared to $1.8 million or $0.12 per diluted share. Excluding the impact of the aforementioned tax rebate related to prior periods, net income was flat compared to the prior year.
  • Adjusted EBITDA2 increased 13% to a record $5.2 million compared to $4.6 million.

Recent Operational Highlights

  • Launched a new Accelerator service (LCR) with Emirates Airlines.
  • Launched, via Platform Partners, the integration between Hilton and Lyft to power the new relationship that sees users link accounts in order to earn points on each ride.
  • Entered into multi-year partnership with Home Chef; starting with the United Airlines MileagePlus program, members will now earn frequent flyer miles when they sign up and make Home Chef purchases.
  • Added Wyndham Hotel rewards to the Marathon Fuel, Platform Partners offering.
  • Initiated deployment work to add Redemptions to an existing Points Travel partnership, targeted for a Q3 launch.
  • Commenced regional Singapore office activities, including initial personnel decisions to capitalize on growth opportunities in the APAC region.

Management Commentary

“We are very pleased to report a record second quarter across all our key operating metrics - gross profit and adjusted EBITDA,” said CEO Rob MacLean. “As we continue to benefit from our investment in and focus on enhanced, data-led marketing initiatives, we have driven solid results which have mitigated the headwinds we faced to start the year. Building on this momentum, we are now well placed to continue executing on our other two key strategic drivers in the second half and we’re excited about both new partnerships launching as well as meaningful service additions to current ones.

“Along with entering new industry verticals, and increased focus on corporate development, our other key growth accelerant is to expand our geographical footprint to more efficiently close and service international partners. During the second quarter, we laid the groundwork to officially launch operations in Singapore with several new personnel. Although it is still early and we are in the process of ramping, we expect this new regional presence to build upon our momentum with new client wins and expanded engagements with current APAC partners.

“Given our strong performance during the second quarter, the ongoing success of current partnerships, and our pipeline expectations heading into the back half of the year, we are increasing our 2019 outlook. We now expect gross profit to range between $58.5 million to $64.5 million, with adjusted EBITDA ranging between $20.5 million to $23.5 million. With the momentum and strong performance in our underlying business, we are all-the-more confident in achieving our long-term financial goals set for 2022.”

Second Quarter 2019 Financial Results

Total revenue in the second quarter of 2019 increased 2% to $100.2 million compared to $97.9 million in the prior year quarter. Principal revenue increased 3% to $94.3 million compared to $91.4 million, and other partner revenue was $5.9 million compared to $6.5 million.

Gross profit in the second quarter increased 49% to $20.5 million compared to $13.7 million in the prior year quarter. Excluding the benefit of a $6.0 million tax rebate that was confirmed in the second quarter for claims related to prior periods, gross profit was $14.4 million, an increase of 5% over the prior year quarter. The increase was primarily driven by continued strong performance in the LCR segment, along with improvements in the Points Travel segment.

Adjusted operating expenses3 in the second quarter of 2019 were $9.4 million compared to $9.2 million in the prior year quarter.

Net income increased to $6.3 million or $0.45 per diluted share, compared to $1.8 million or $0.12 per diluted share in the prior year quarter. The improvement was a result of the aforementioned benefit from a tax rebate related to prior periods.

Adjusted EBITDA in the second quarter increased 13% to $5.2 million compared to $4.6 million in the prior year quarter. This does not include the benefit from the prior periods tax rebate. Effective margin, which is defined as adjusted EBITDA as a percentage of gross profit, was 25.7% compared to 33.9% from the prior year period. Excluding the impact of the tax rebate related to prior periods, effective margin increased 250 basis points to 36.4%.

At June 30, 2019, total funds available, comprised of cash and cash equivalents together with restricted cash and funds receivable from payment processors, was $67.6 million compared to $83.1 million at December 31, 2018. The decrease is primarily a result of timing of partner sales and promotions. The company remains debt free.

During the second quarter, Points repurchased for cancellation approximately 233,000 common shares at an average price of $12.28 per share through its Automatic Share Purchase Plan in conjunction with its Normal Course Issuer Bid (“NCIB”).

___________________________________
1 Gross profit is defined as total revenue less the direct cost of revenue.  Gross profit is considered by management to be an integral measure of financial performance and represents the amount of revenues retained by the Company after incurring direct costs.  However, gross profit is not a recognized measure of profitability under IFRS.
2 Adjusted EBITDA (Earnings before income tax expense, depreciation and amortization, foreign exchange, finance costs and equity-settled share-based compensation and other one-time costs or benefits such as a tax rebate related to prior periods) 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 Company’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, which we believe to be the most directly comparable IFRS measure.
3 Adjusted operating expenses consist of employment expenses excluding equity-settled share-based compensation, marketing and communications, technology services and other operating expenses.  Adjusted operating expense is not a measure of financial performance under IFRS and should not be considered a substitute for total operating expenses, which we believe to be the most directly comparable IFRS measure.

Increased 2019 Outlook

Points has increased its 2019 outlook and now expects gross profit to range between $58.5 million and $64.5 million (previously $56.5 million to $62.5 million), reflecting approximately 9% to 20% growth compared to 2018. Points also now expects adjusted EBITDA to range between $20.5 million and $23.5 million (previously $19.5 million to $22.5 million), reflecting approximately 10% to 26% growth from 2018.

Points Announces Renewal of Share Repurchase

Points also announced today that the board of directors has approved a normal course issuer bid to repurchase up to 5% of its issued and outstanding common shares (the “Repurchase”), and that it intends to enter into an automatic share purchase plan with a broker in order to facilitate the Repurchase.

The Repurchase is subject to approval by the TSX, and is expected to commence on August 14, 2019. Points’ previous normal course issuer bid commenced on August 14, 2018 and will terminate on August 13, 2019.

Conference Call

Points will hold a conference call today at 4:30 p.m. Eastern time to discuss its second quarter 2019 results, followed by a question-and-answer session.

Date: Thursday, August 1, 2019
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Toll-free dial-in number: 1-855-327-6837
International dial-in number: 1-631-891-4304
Conference ID: 10007319

Please call the conference telephone number 5-10 minutes prior to the start time, and an operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.

A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through August 15, 2019.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 10007319

About Points International Ltd.

Points (TSX: PTS) (Nasdaq: PCOM) provides loyalty e-commerce and technology solutions to the world's top brands to power innovative services that drive increased loyalty program revenue and member engagement. The Company has a growing network of nearly 60 global loyalty programs integrated into its unique Loyalty Commerce Platform. Points offers three core private or co-branded services: its Loyalty Currency Retailing service, which retails loyalty points and miles directly to consumers; its Platform Partners service, which offers developers transactional access to dozens of loyalty programs and hundreds of millions of members via a package of APIs; and its Points Travel service, which helps loyalty programs increase revenue from hotel bookings, while enabling members to more effectively earn and redeem loyalty rewards. Points is headquartered in Toronto, with offices in San Francisco, London and Singapore.

For more information, please 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, targeted launch of redemptions to an existing Points Travel partnership, expected benefits of our new regional presence in APAC, our ability to deliver on our long-term goals for 2022, our core growth strategies, our guidance for 2019 with respect to gross profit and adjusted EBITDA, and receipt of funds for tax rebates. 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 products and cross-sell existing partners 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.

Non-GAAP Financial Measures

The Company’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 Company’s underlying performance. These measures are reviewed regularly by management and the Company's Board of Directors in assessing the Company’s performance and in making decisions about ongoing operations. In addition, we use certain non-GAAP measures to determine the components of management compensation. We believe that these measures are also used by investors as an indicator of the Company’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.

Investor Relations Contact

Sean Mansouri, CFA or Cody Slach
Gateway Investor Relations
1-949-574-3860
IR@points.com

     
Points International Ltd.
Key Financial Measures and Schedule of Non-GAAP Reconciliations
       
Gross Profit Information[1]
       
Expressed in thousands of United States dollars
    For the three months ended
    June 30, 2019
  June 30, 2018  
       
Total Revenue   $    100,230   $ 97,859  
Direct cost of revenue       79,778     84,158  
Gross Profit   $    20,452   $ 13,701  
Gross Margin     20 %   14 %
       
       
[1] Gross Profit is defined as total revenues less the direct cost of revenue. Gross profit is considered by management to be an integral measure of financial performance and represents the amount of revenues retained by the Company after incurring direct costs. However, gross profit is not a recognized measure of profitability under IFRS.
               

 

       
Points International Ltd.
Key Financial Measures and Schedule of Non-GAAP Reconciliations
           
Reconciliation of Gross Profit to Contribution [2]
           
Expressed in thousands of United States dollars
      For the three months ended
      June 30, 2019
  June 30, 2018  
           
Gross Profit   $    20,452   $ 13,701  
Less:        
  Direct adjusted operating expenses [3]     6,072     5,737  
Contribution   $    14,380   $ 7,964  
           
           
[2] Contribution is defined as Gross profit less direct adjusted operating expenses.  Contribution is considered by Management to be a useful supplemental measure when assessing financial performance.  Management believes that Contribution is an important indicator of the Company’s segment profitability.  However, Contribution is not a recognized measure of profitability under IFRS.
[3] Direct adjusted operating expenses is defined as expenses which are directly attributable to each operating segment.  Direct adjusted operating expenses is not a measure of financial performance under IFRS.
                 

 

     
Points International Ltd.
Key Financial Measures and Schedule of Non-GAAP Reconciliations
       
Contribution by Line of Business
       
Expressed in thousands of United States dollars
    For the three months ended
    June 30, 2019
  June 30, 2018  
       
Loyalty Currency Retailing    
Revenue   $    97,784   $ 95,506  
Gross Profit       18,203     11,508  
Direct adjusted operating expenses     3,326     3,366  
Contribution   $    14,877   $ 8,142  
       
Platform Partners      
Revenue   $    1,901   $ 1,906  
Gross Profit       1,704     1,770  
Direct adjusted operating expenses     981     982  
Contribution   $    723   $ 788  
       
Points Travel      
Revenue   $    545   $ 447  
Gross Profit       545     423  
Direct adjusted operating expenses     1,765     1,389  
Contribution   $    (1,220 ) $ (966 )
       

 

       
Points International Ltd.
Key Financial Measures and Schedule of Non-GAAP Reconciliations
         
Reconciliation of Net Income to Adjusted EBITDA [4]
         
Expressed in thousands of United States dollars
    For the three months ended
    June 30, 2019
  June 30, 2018  
         
Net Income   $    6,276   $ 1,812  
Income tax expense       2,325     684  
Finance costs       36     -  
Depreciation and amortization     1,126     900  
Foreign exchange loss       398     85  
Equity-settled share-based payment expense     1,112     1,168  
Prior years tax rebate, net of fees     (6,027 )   -  
Adjusted EBITDA   $    5,246   $ 4,649  
         
         
[4] Adjusted EBITDA (Earnings before income tax expense, finance costs, depreciation and amortization, foreign exchange, equity-settled share-based payment expense and other one-time costs or benefits such as a tax rebate related to prior periods) 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 Company’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, which we believe to be the most directly comparable IFRS measure.
               

 

 
Points International Ltd.
Key Financial Measures and Schedule of Non-GAAP Reconciliations
           
Reconciliation of Total Operating Expenses to Adjusted Operating Expenses [5]
           
Expressed in thousands of United States dollars
      For the three months ended
      June 30, 2019
  June 30, 2018  
           
Total Operating Expenses $    12,072   $ 11,332  
Subtract (add):        
  Depreciation and amortization     1,126     900  
  Foreign exchange loss     398     85  
  Equity-settled share-based payment expense     1,112     1,168  
Adjusted Operating Expenses $    9,436   $ 9,179  
           
           
[5] Adjusted operating expenses consists of employment expenses excluding equity-settled share-based payment expense, marketing & communications, technology services, and other operating expenses. Adjusted operating expenses is not a measure of financial performance under IFRS and should not be considered a substitute for total operating expenses, which we believe to be the most directly comparable IFRS measure.
                 

 

 
Points International Ltd.
Condensed Consolidated Interim Statements of Financial Position
       
Expressed in thousands of United States dollars 
(Unaudited)
As at June 30,
2019

  December 31,
2018[6]
 
       
ASSETS    
Current assets    
  Cash and cash equivalents $ 58,301   $ 69,131  
  Restricted cash   -      500  
  Funds receivable from payment processors   9,256     13,512  
  Accounts receivable   18,707     9,318  
  Prepaid taxes   202     383  
  Prepaid expenses and other assets   3,452     3,618  
Total current assets $ 89,918   $ 96,462  
       
Non-current assets    
  Property and equipment   2,441     2,351  
  Right-of-use assets   3,610     -  
  Intangible assets   13,379     13,952  
  Goodwill   7,130     7,130  
  Deferred tax assets   2,370     2,645  
Total non-current assets $ 28,930   $ 26,078  
Total assets $ 118,848   $ 122,540  
       
LIABILITIES    
Current liabilities    
  Accounts payable and accrued liabilities $ 10,478   $ 9,489  
  Income taxes payable   1,270     117  
  Payable to loyalty program partners   59,379     69,749  
  Current portion of lease liabilities   1,260     -  
  Current portion of other liabilities   801     1,680  
Total current liabilities $ 73,188   $ 81,035  
       
Non-current liabilities    
  Lease liabilities   2,844     -  
  Other liabilities   87     495  
  Deferred tax liabilities   403     -  
Total non-current liabilities $ 3,334   $ 495  
Total liabilities $ 76,522   $ 81,530  
       
SHAREHOLDERS’ EQUITY    
  Share capital   52,057     53,886  
  Contributed surplus   -      4,446  
  Accumulated other comprehensive income (loss)   28     (646 )
  Accumulated deficit   (9,759 )   (16,676 )
Total shareholders’ equity $ 42,326   $ 41,010  
Total liabilities and shareholders’ equity  $ 118,848   $ 122,540  
       
       
[6] The Company has initially applied IFRS 16 at January 1, 2019, using the modified retrospective approach. Under this approach, comparative information is not restated.
 

 

 
Points International Ltd.
Condensed Consolidated Interim Statements of Comprehensive Income
           
Expressed in thousands of United States dollars, except per share amounts 
(Unaudited)
    For the three months ended For the six months ended
    June 30, 2019   June 30, 2018[7]   June 30, 2019   June 30, 2018[7]  
           
REVENUE        
  Principal $    94,289   $ 91,398   $    184,295   $ 174,705  
  Other partner revenue     5,941     6,461       11,878     12,264  
Total Revenue     100,230     97,859       196,173     186,969  
  Direct cost of revenue     79,778     84,158       162,355     159,752  
Gross Profit $    20,452   $ 13,701   $    33,818   $ 27,217  
           
OPERATING EXPENSES        
  Employment costs     7,567     7,050       15,203     13,764  
  Marketing and communications     429     385       808     788  
  Technology services     659     552       1,276     1,047  
  Depreciation and amortization     1,126     900       2,268     1,766  
  Foreign exchange loss (gain)     398     85       154     (73 )
  Other operating expenses     1,893     2,360       3,473     4,513  
Total Operating Expenses $    12,072   $ 11,332   $    23,182   $ 21,805  
           
  Finance income     (257 )   (127 )     (519 )   (204 )
  Finance costs     36     -       112     -  
           
INCOME BEFORE INCOME TAXES $    8,601   $ 2,496   $    11,043   $ 5,616  
           
  Income tax expense     2,325     684       3,010     1,546  
NET INCOME $    6,276   $ 1,812   $    8,033   $ 4,070  
           
OTHER COMPREHENSIVE INCOME (LOSS)         
  Items that will subsequently be reclassified to profit or loss:        
  Unrealized gain (loss) on foreign exchange derivative designated as cash flow hedges     246     (320 )     484     (750 )
  Income tax effect     (65 )   85       (128 )   198  
  Reclassification to net income of loss (gain) on foreign exchange derivatives designated as cash flow hedges     159     (150 )     408     (321 )
  Income tax effect     (42 )   40       (108 )   85  
           
  Foreign currency translation adjustment     (6 )   -       18     -  
Other comprehensive income (loss) for the period, net of income tax $    292   $ (345 ) $    674   $ (788 )
TOTAL COMPREHENSIVE INCOME  $    6,568   $ 1,467   $    8,707   $ 3,282  
           
EARNINGS PER SHARE        
  Basic earnings per share $    0.46   $ 0.12   $    0.58   $ 0.28  
  Diluted earnings per share $    0.45   $ 0.12   $    0.57   $ 0.28  
           
[7] The Company has initially applied IFRS 16 at January 1, 2019, using the modified retrospective approach. Under this approach, comparative information is not restated.
                           

 

                                     
Points International Ltd.
Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity
               
        Attributable to equity holders of the Company
Expressed in thousands of United States dollars
except number of shares
(Unaudited)
Share Capital Contributed
Surplus

  Accumulated
other
comprehensive
income (loss)

  Accumulated
deficit

  Total
shareholders’
equity

 
    Number of
Shares
  Amount
         
               
Balance at December 31, 2018   14,111,864   $    53,886   $    4,446   $    (646 ) $    (16,676 ) $    41,010  
Net income   -       -       -       -        8,033       8,033  
Other comprehensive income, net of tax  -       -       -        674      -        674  
Total comprehensive income  -       -       -        674       8,033       8,707  
Effect of share option compensation plan  -       -        282      -       -        282  
Effect of RSU compensation plan  -       -        2,047      -       -        2,047  
Share issuances – options exercised   2,338       28       (7 )    -       -        21  
Settlement of RSUs  -        1,348       (4,317 )    -       -        (2,969 )
Shares purchased and held in trust  -        (1,460 )    -       -       -        (1,460 )
Shares repurchased and cancelled   (452,189 )     (1,745 )     (2,451 )    -        (1,116 )     (5,312 )
Balance at June 30, 2019    13,662,013   $    52,057   $    -    $    28   $    (9,759 ) $    42,326  
               
               
Balance at December 31, 2017 14,561,450   $ 56,394   $ 10,647   $ 374   $ (24,468 ) $ 42,947  
Net income -     -     -     -     4,070     4,070  
Other comprehensive loss, net of tax -     -     -     (788 )   -     (788 )
Total comprehensive income -     -     -     (788 )   4,070     3,282  
Effect of share option compensation plan -     -     36     -     -     36  
Effect of RSU compensation plan -     -     2,107     -     -     2,107  
Share issuances - options exercised 74,966     1,041     (690 )   -     -     351  
Settlement of RSUs -     1,244     (3,780 )   -     -     (2,536 )
Shares purchased and held in trust -     (2,956 )   -     -     -     (2,956 )
Shares repurchased and cancelled (418,556 )   (1,633 )   (4,168 )   -     -     (5,801 )
Balance at June 30, 2018 14,217,860   $ 54,090   $ 4,152   $ (414 ) $ (20,398 ) $ 37,430  
               

 

 
Points International Ltd.
Condensed Consolidated Interim Statements of Cash Flows
Expressed in thousands of United States dollars 
(Unaudited)
           
    For the three months ended For the six months ended
    June 30, 2019   June 30, 2018[8]   June 30, 2019   June 30, 2018[8]  
           
Cash flows from operating activities        
Net income for the period $    6,276   $ 1,812   $    8,033   $ 4,070  
Adjustments for:        
  Depreciation of property and equipment     290     247       578     468  
  Depreciation of right-of-use assets     295     -       578     -  
  Amortization of intangible assets     541     653       1,112     1,298  
  Unrealized foreign exchange (gain) loss     51     (851 )     (72 )   (431 )
  Equity-settled share-based payment transactions     1,112     1,168       2,329     2,143  
  Finance costs     36     -       112     -  
  Deferred income tax expense (recovery)     332     (177 )     442     (371 )
Unrealized net gain (loss) on derivative contracts designated as cash flow hedges     405     (470 )     892     (1,071 )
Changes in non-cash balances related to operations     (14,898 )   3,852       (13,427 )   12,669  
Interest paid     (36 )   -       (112 )   -  
Net cash provided by (used in) operating activities $    (5,596 ) $ 6,234   $    465   $ 18,775  
           
Cash flows from investing activities        
Acquisition of property and equipment     (148 )   (424 )     (668 )   (738 )
Additions to intangible assets     (252 )   (226 )     (539 )   (523 )
Net cash used in investing activities $    (400 ) $ (650 ) $    (1,207 ) $ (1,261 )
           
Cash flows from financing activities         
Payment of lease liabilities     (246 )   -       (458 )   -  
Proceeds from exercise of share options    -      351       21     351  
Shares repurchased and cancelled     (2,856 )   (4,357 )     (5,312 )   (5,801 )
Purchase of share capital held in trust     (861 )   (152 )     (1,460 )   (2,956 )
Taxes paid on net settlement of RSUs     (4 )   (2,536 )     (2,969 )   (2,536 )
Net cash used in financing activities  $    (3,967 ) $ (6,694 ) $    (10,178 ) $ (10,942 )
           
Effect of exchange rate fluctuations on cash held     (57 )   851       90     431  
           
Net increase (decrease) in cash and cash equivalents $    (10,020 ) $ (259 ) $    (10,830 ) $ 7,003  
Cash and cash equivalents at beginning of the period $    68,321   $ 70,776   $    69,131   $ 63,514  
Cash and cash equivalents at end of the period $    58,301   $ 70,517   $    58,301   $ 70,517  
           
Interest Received $    248   $ 86   $    510   $ 146  
Taxes Received $    -    $ 110   $    -    $ 110  
Taxes Paid $    (572 ) $ (554 ) $    (1,186 ) $ (1,681 )
           
Amounts received and paid for interest and taxes were reflected as operating cash flows in the condensed consolidated interim statements of cash flows.
                           
(8) The Corporation has initially applied IFRS 16 at January 1, 2019, using the modified retrospective approach. Under this approach comparative information is not restated.
                           


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Source: Points International, Ltd.