And welcome to the Paysign Third Quarter 2022 Earnings Conference Call. As a reminder, this conference call is being recorded. This call may include statements that may be deemed to be forward looking under federal securities laws and the company intends that such forward looking All statements besides statements of fact included on this call are forward looking. Such forward looking statements include, among others, that our unrestricted cash, anticipated revenues and operating profits will be sufficient to sustain operations for the next 12 months. That the expected total revenue, gross profit margins, operating expenses, depreciation and amortization, stock based compensation, adjusted EBITDA, plasma revenues and pharma revenues for 2022 meet our expectations that the company will continue to post year over year improvements That the company's growth prospects in plasma, pharma and other prepaid business materialize and that the company will continue to be affected by COVID-nineteen.
We caution that these statements are qualified by important risks, uncertainties and other factors that could cause actual results to differ materially from those reflected by such forward looking statements. Such factors include, among others, the inability to continue our current growth rate in future periods That a downturn in the economy, including as a result of COVID-nineteen and variance, as well as further government stimulus measures could reduce our customer base and demand for our products and services, which could have an adverse effect on our business, financial condition, profitability and cash flows, Operating in a highly regulated environment, failure by us or business partners to comply with applicable law and regulations, Changes in the laws, regulations, credit card association rules or other industry standards affecting our business that a data breach A security breach could expose us to liability and protracted and costly litigation and other risk factors set forth on our Form 10 ks for the year ended December 31, 2021. Except to the extent required by federal securities laws, the company undertakes no obligation to publicly update I'll revise any statements made today, whether as a result of new information, future events or otherwise. This conference call also includes comments about adjusted EBITDA, a non GAAP financial measure that is neither prepared in accordance with nor an alternative to Financial measures are prepared in accordance based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similarly titled measures presented by other companies.
It is now my pleasure to turn the call over to Mr. Mark Newcomer, CEO. Please go ahead, sir.
Thank you, Kevin. Good afternoon, and thank you for joining today's call to review PaySign's outstanding Q3 2022 results. I'm Mark Newcomer, Chief Executive Officer and with me this afternoon is Jeff Baker, our Chief Financial Officer. Earlier today, we announced our financial results. 3rd quarter revenue was $10,600,000 an increase of $2,800,000 a 36% improvement from Q3 2021 and an increase of $2,000,000 from the previous quarter, which translates to a 23% improvement.
Additionally, we reported net income of $852,000 Or $0.02 per fully diluted share. Our 3rd quarter results reflect the hard work and dedication of the entire PaySign team as we achieve our goal to return to profitability. During the quarter, we onboard an additional 13 plasma centers exiting the quarter with a total of 4 50 centers utilizing our services. We benefited from both the organic growth of our existing centers and the increase in revenue generated from centers added at the tail end of the 2nd quarter. We also began to see the effects of the U.
S. District Court's preliminary injunction on September 16th, allowing Mexican nationals with a valid B1B2 visa To resume donating plasma in the U. S. As the affected centers began to ramp up donations shortly after this decision. Source plasma collection companies continue to execute their aggressive growth strategies and we continue to have confidence in our growth prospects for this segment.
Looking at the remainder of the year, we expect to onboard an additional 3 to 4 centers each month for a total of 90 to 95 new centers in 2022. Throughout the quarter, we continue to see our load and spend trends improve as the number of plasma donations increased. Funds loaded on card was up percent from last year and was up 22.9% over last quarter. Turning to our patient affordability business, Q3 saw 2 additional program launches for this vertical. We continue to see daily claims volume increase as we add more retail and specialty pharmaceutical Products to our list of active programs.
In addition to onboarding new programs, we have completed integrations with additional hub service providers. Hub service providers are critical partners in our success, and we are thrilled to have gained the trust of these providers. We are confident that we will continue to build on that trust And form lasting partnerships that encourage continued growth. Our patient affordability teams have been busy fielding inquiries and conducting data analysis for potential clients Our transparent pricing strategies are having a positive impact I think forcing the industry to rethink how these pricing strategies are impacting the U. S.
Healthcare ecosystem. The Q4 pipeline for patient affordability looks robust with several program launches in process and several additional planned for Q4. Looking ahead to 2023 and beyond, we believe we are poised to see continued growth in this vertical with the ability to position PaySign as one of the leading We are always looking for new ways to support our existing clients as well as to expand our business into other payment verticals. In the Q3, we signed 2 new prepaid disbursement programs. The first program is for an employer per diem card for 1 of our existing plasma clients And the second is an additional corporate payout program.
Additionally, we were awarded the business in an RFP sponsored by a nationwide membership organization to provide general purpose reloadable and gift cards to over 440 of their brick and mortar locations. We expect to launch these programs during the Q4. Overall, we are very pleased with the Q3 results and we believe we have the building blocks in place to ensure the long term growth of PaySign and the enhancement of our shareholder value. With that, I'll pass it over to Jeff to give you more insight into our financials for the quarter.
Thank you, Mark. Good afternoon, everyone. As Mark pointed out, we are pleased with our Q3 operating results and the foundation we have built for 2022 and into 2023. Revenue, income from operations, EBITDA, Adjusted EBITDA and transactional trends all improved sequentially and year over year. This was the best quarter in the company's history for our Plasma business as we continue to grow our market share and benefit from individuals' needs to supplement their incomes.
With all of the details we provided in the press release and that will be available in our 10 Q tomorrow, I will simply hit the financial highlights for the Q3 2022 relative to the Q3 in 2021. Total revenue of 10 point $6,000,000 increased $2,800,000 or 36% versus the year ago period. Of that amount, Plasma revenue was $9,800,000 an increase of 40%. Pharma revenue was $693,000 an increase of 5% And other revenue was $73,000 an increase of 3%. The average revenue per month per plasma center was $7,384 versus $6,542 last year.
This marks our highest revenue per month per plasma center since COVID began in the Q1 of 2020. We added 13 centers during the quarter ending with 4 50 centers versus 3 59 centers at the end of Q3 2021. Gross profit margin for the quarter was 54.3% versus 51.1%, an increase 320 basis points. SG and A increased 21.2 percent to 4,400,000 And total operating expenses were up 20.7 percent to $5,100,000 As Mark mentioned, We posted net income of $852,000 or 0 point 0 $2 per diluted share versus a net loss of 271,000 or $0.01 per diluted share. Adjusted EBITDA, which adds back stock compensation to EBITDA, Was $1,900,000 or $0.04 per diluted share and marks the 6th consecutive quarter of positive adjusted EBITDA.
It is also more than double the adjusted EBITDA we posted during the same period last year. Regarding the health of our company, We exited the quarter with $8,000,000 in unrestricted cash and 0 debt, which is an increase of $595,000 from our 4th quarter ending cash balance. Our adjusted current ratio, which excludes Now turning your attention to our updated guidance for 2022. We now expect total revenue to grow 29% to 30% over 2021 to a range of $38,150,000 to 38,350,000 account for 1 of our plasma customers consolidating and closing 13 of their centers and 2 pharma prepaid programs ending in mid November. We expect to end the year with over 445 plasma centers and over 20 active pharma prepaid programs.
Full year gross profit margins are expected to be approximately 56% with operating expenses to be between $21,000,000 $21,250,000 as we continue to invest in people and technology and experienced higher costs in insurance, travel and entertainment and other inflationary pressures. Within total operating expenses, Depreciation and amortization is expected to be approximately $2,910,000 while stock based compensation is expected to be approximately $2,280,000 Adjusted EBITDA is expected to be $5,500,000 to $5,600,000 We expect our tax provision to be approximately $107,000 for 2022. Lastly, we plan And on providing guidance for 2023 during our Q4 earnings call in March. With that, I would like to turn the call back over to the moderator for
Our first question today is coming from Gary Prestopino from Barrington Research. Your line is now live.
Good afternoon, all. A couple of questions here. First of all, in terms of some of these new programs with the payroll processing customer and then an RFP for general purpose reloadable gift cards nationwide, Can you give us some idea of the magnitude of cards that you will be issuing combined for each of these companies or some kind of idea of what kind of processing
It's kind of early days as we're just getting ready to implement those. So, we're not really comfortable at this point I'm talking about volumes or numbers associated, but I mean you can kind of guess that With 440 retail locations, we're expecting to do a decent volume Gift card and general spend reloadable once it's been implemented. But we'll talk further about it next quarter.
Is the Payroll Processing client a large national organization or Is it more of a
No, it's a smaller organization. And at this time, they're ramping nicely. And hopefully, we'll be able to discuss that in a lot more detail Come Q4 as well.
Okay. And then in terms of The business on the southern border, obviously that district court decision was at the end of Q3. How has the ramp been in October early November in terms of getting the Mexican nationals back into the sites to donate plasma?
It's been ramping nicely Ever since they announced it, we immediately saw an increase in donations And a considerable increase. Jeff, you have roughly the percentage increase from where we were at. I mean, to give you an idea, Gary, we were at Probably 40 donations at some of those centers, which are now doing a day that are now doing some over 1200 per day. And continuing to ramp at this point. So we're pretty positive about what's going on over there.
Yes. I would also say, based on the data that we're seeing, the loaded amounts on those donations are Slightly lower than what we're seeing across the whole organization. So while the load numbers are up, the dollars being loaded Or a little less, but all in all, it should be a nice addition to the financials going forward. As you know, given the late Implementation in September, there's really not a lot of impact in the September quarter from that.
Okay. And then can you comment in Q2, you had an RFP, you won an RFP with a new client that is expected to begin onboarding in early 20 I believe at the time you didn't have any insight on to how many sites you could potentially get. Has that cleared up and
We're leaning more towards a lower number to start out, probably in the range of somewhere between probably in the range of 20 centers. And I think that will be a starting point. And then like most of the clients that we have, I think you'll see
Thank you. We do have a follow-up from Gary Prestopino from Barrington Research. Your line is now live.
Okay. Can you comment on I think you said your Gross profit margin is going to be about 56% in Q4. Is that correct? Or is that for the year?
Gary, That's for the year. And we were initially, we were 56% to 57%. What you're seeing there is just nothing more than mix. So when we're outperforming on the plasma business like we have been in the 3rd quarter and where it looks like we're going to see coming in 4th quarter relative to the pharma prepaid programs that are falling off and the growth in the co pay, it's literally just mix. So It looks like now we're going to come around at 56% for the full year.
And going into 2023, Can you hold that at around that level or can we actually expect it to go up as the revenues ramp again?
Actually, what's going to happen is, is it will probably go down. Again, it's mix driven. So that's Plasma, doing what it's been doing, and then pharma copay, which has still good margins, but not at The same level as the pharma prepaid business and in 2023, we won't have any pharma prepaid business any longer. Like I said, that's all ending this month. So it is mix.
I expect my plasma margins
Okay. And then the Entity that's closing and consolidating 13 centers, what's going on there that you could share with us?
Sure. It's really a combination of things, but there's been a whole lot of acquisitions in the And so basically, they found that they had a bunch of centers that were they have multiple centers in a given city and just found that it would
It would be better for them not to.
So it was a decision made by the organization. There's I don't see additional Center closures from them at this time. It was just something they went through their process and determined.
So those centers that they're closing, are you still servicing any centers that or the centers that they're keeping in those cities?
Yes.
Okay. So the business has got to go somewhere and that's why they're consolidating it. It's just it's more of a facilities thing. It's not an issue. The actual business is not good for them?
No, no, no. Nothing to do with that. It's just consolidation.
Okay. All right. Thank you very much.
You're very welcome.
Thank you. We reached the end of our question and answer session. I'd like to turn the floor back over to Mark for any further or closing comments.
Thank you, Kevin, and thank you everyone for taking the time to listen in on the call. We're very pleased with the results for the Q3 and we're really very excited about the potential growth and our pipeline as we finish out this year and enter 2023.