 - Achieves Positive Adjusted EBITDA for the Quarter - - Total Funds Available Remains at Approximately 107 Million -TORONTO, Aug. 12, 2020 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, 2020.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 Managements Discussion Analysis, including segmented results, are available at and Quarter 2020 Financial Summary vs. Q2 2019 Total revenue was 40.9 million compared to 100.2 million. Gross profit was 7.0 million compared to 14.4 million1 Net loss was 3.3 million or 0.25 per share, compared to net income of 6.3 million or 0.45 per share. Adjusted EBITDA2 was 0.3 million compared to 5.2 million. At June 30, 2020, total funds available3 stood at approximately 107 million, including a 35 million drawdown on the Companys revolving credit facility.Recent Operational Highlights Loyalty Currency Retailing LCR: Launched a new partnership with leading international airline Qatar Airways Privilege Club, deploying Buy, Gift and Transfer services into market with additional LCR services expected later this year. Points Travel: Restarted promotional campaigns with Miles More, Europes largest frequent flyer and rewards program. Platform Partners: Entered into new partnership with GetYourGuide, a leading tours and activities site; starting with Alaska Airlines Mileage Plan, members can now earn when they shop on GetYourGuide.Management CommentaryThe trends in our business and industry are steadily moving in the right direction, even as we continue to operate in an uncertain environment amid the COVID-19 pandemic, said Rob MacLean, CEO of Points International. During the second quarter, our results gradually improved each month across most financial metrics, and we made progress with new program deployments for both new and existing partners around the world. Further, we generated strong momentum in our pipeline, which is even more robust now than it was at the start of 2020.The travel and hospitality market remains volatile due to on-and-off again lockdowns and stay-at-home recommendations, which have restricted mobility patterns and transactions related to immediate travel. Within this environment, marketing campaigns have become a crucial point of focus for both customers and loyalty operators. This is especially important as loyalty customers have proven to be comfortable buying ahead for future travel needs. As a result, nearly all discussions with our partners revolve around utilizing loyalty rewards and promotions ahead of the return of travel and hospitality demand. We are optimistic about the opportunity set in our pipeline, as we recognize that the wins from this year will drive our results in 2021 and well after.In the months ahead, we will continue to closely monitor the industry landscape, along with the financial and strategic positions of our partners. Based on current trends in our business, we continue to believe that Points is well-positioned to weather the storm ahead and will remain adjusted EBITDA2 positive for the year. While we cant fully predict how our journey will progress, our deep and growing client relationships, strong balance sheet, record pipeline, and twenty-year track record of high-quality deployments provide us with a strong operational foundation to navigate our recovery.Second Quarter 2020 Financial ResultsTotal revenue in the second quarter of 2020 was 40.9 million compared to 100.2 million in the prior year quarter. Principal revenue was 35.8 million compared to 94.3 million, and other partner revenue was 5.1 million compared to 5.9 million.Gross profit in the second quarter was 7.0 million compared to 14.4 million1 in the prior year quarter. The decrease in gross profit was primarily driven by the impact of COVID-19, which had a significant adverse impact on all three operating segments.Adjusted operating expenses4 in the second quarter of 2020 decreased to 6.7 million compared to 9.4 million in the prior year quarter. During the second quarter, Points recognized 2.3 million in wage subsidies under the Canadian Emergency Wage Subsidy program, which was recorded as an offset to employment costs. In addition, reduced discretionary spending and cost management in response to the pandemic also contributed to reduced adjusted operating expenses during the quarter.Net loss in the second quarter was 3.3 million or 0.25 per share, compared to net income of 6.3 million or 0.45 per share in the prior year quarter. Net loss in the second quarter of 2020 included a one-time impairment charge of 1.8 million related to the Companys Points Travel Segment due to COVID-19 related impacts on the travel industry.Adjusted EBITDA2 in the second quarter was 0.3 million compared to 5.2 million in the prior year quarter. Effective margin5, which is defined as adjusted EBITDA as a percentage of gross profit, was 4.3 compared to 25.7 in the prior year period. Both declines were due to lower transaction volumes across all operating segments as a result of COVID-19.At June 30, 2020, total funds available3, comprised of cash and cash equivalents, funds receivable from payment processors, and cash held in trust were 106.8 million compared to 86.8 million at December 31, 2019. The Company drew down 40 million on its credit facility in the first quarter of 2020 and elected to pay down 5 million in June. The outstanding 35 million balance on the facility is reflected in the June 30, 2020 cash balance.___ 1 Q2 2019 Gross Profit adjusted for 6.0 million tax rebate related to prior periods recorded in direct cost of revenue in the second quarter of 2019. 2 Adjusted EBITDA Earnings before income tax expense, depreciation and amortization, foreign exchange, finance costs, equity-settled share-based compensation and other one-time costs or benefits such as impairment charges and a tax rebate related to prior periods is considered by management to be a useful supplemental measure when assessing financial performance. Management also believes that adjusted EBITDA is an important indicator of the Companys 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. See Non-GAAP Financial Measures. 3 Total funds available is defined as cash and cash equivalents, cash held in trust, and funds receivable from payment processors. 4 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. See Non-GAAP Financial Measures. 5 Effective margin measures our ability to generate profitability after we have funded operating expenses and is used by Management as a key internal measure of operating efficiency. Effective margin is not a measure of financial performance under IFRS. See Non-GAAP Financial Measures.Points Announces Renewal of Share RepurchasePoints 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 in August 2020. Points previous normal course issuer bid commenced on August 14, 2019 and will terminate on August 13, 2020.Conference CallPoints will hold a conference call today at 4:30 p.m. Eastern time to discuss its second quarter 2020 results, followed by a question-and-answer session.Date: Wednesday, August 12, 2020 Time: 4:30 p.m. Eastern time 1:30 p.m. Pacific time Toll-free dial-in number: 1-877-407-0784 International dial-in number: 1-201-689-8560 Conference ID: 13707859Please call the conference telephone number 5-10 minutes prior to the start time. 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 26, 2020.Toll-free replay number: 1-844-512-2921 International replay number: 1-412-317-6671 Replay ID: 13707859About Points International Ltd.Points TSX: PTSNASDAQ: PCOM is a trusted partner to the worlds leading loyalty programs, using a unique Loyalty Commerce Platform to build, power, and grow new ways for members to get and use their favourite loyalty currency. Our platform combines insights, technology, and resources to make the movement of loyalty currency simpler and more intelligent for nearly 60 reward programs around the world. Founded in 2000, Points is headquartered in Toronto with teams operating around the globe. For more information, visit company.points.com. 