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Pipeline Data Inc.
Annual Shareholder Meeting
May 22, 2008
22
Investor DisclaimerInvestor Disclaimer
The information provided for in this investor presentation contains forward-looking statements that involve risks and uncertainties more fully set forth in the Company's filing. Certain information included in this presentation may contain statements that are forward-looking, such as statements relating to uncertainties that could affect performance and results of the Company in the future and, accordingly, such performance and results may materially differ from those expressed or implied in any forward-looking statements made by or on behalf of the Company. These risks and uncertainties include, but are not limited to those relating to the Company's growth strategy, customer concentration, outstanding indebtedness, seasonality, expansion and other activities of competitors, changes in federal or state laws and the administration of such laws, protection of the securities markets and other risks detailed in the Company's filings with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. The Company's actual results could differ significantly from those discussed and/or implied herein.
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Company ProfileCompany Profile
Pipeline Data Inc. (PPDA) is a value-added provider of merchant payment processingservices and other related software products. The Company currently delivers credit anddebit card-based payment processing and related services to small to medium-sizedmerchants who operate either in a physical “brick and mortar” business environment orover the Internet. Pipeline’s payment processing services enable merchants to processboth traditional card-present, or “swipe” transactions, as well as card not-presenttransactions. For more information please visit www.pipelinedata.com.
Credit Card Processing and Merchant Accounts
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Northern Merchant Services, Inc. Bank referral division representing 54 banks, comprising 420 bank branch locations, along with 48 credit unions
SecurePay, Inc. Custom credit card transaction processor serving as a gateway intermediary between the customer and the financial networks, integrating shopping cart, gateway and custom third-party solutions
Pipeline Data Processing, Inc. Provider of wholesale payment processing solutions, new account boarding, underwriting and risk management
Charge.Com, Inc.Internet industry leader in merchant account acquiring and marketing
AIRCHARGE®, Inc.Provider of cellular phone-based credit card acceptance solutions for mobile business merchants
Cardaccept, Inc.Inbound telemarketing and Web presence for marketing of Internet solutions
Northern Merchant Services Inc. Northern Merchant Services Inc.
Pipeline Companies
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18 20 22 25 28 32 36
569 10
1113
1517
19
34
34
56
67
9
26
2000 2001 2002 2003 2004 2005 2006 2012E
United States Europe Asia/Pacific Latin America Canada Middle East/Africa
33
48
54
62
71
133
4338
00-'06 06-'12Region Actual Forecast
United States 12% 8%Europe 13% 11%Asia/Pacific 18% 20%Latin America 21% 14%Canada 9% 8%Middle East/Africa 14% 17%Global 14% 11%
CAGR
Industry overview Industry overview
The use of non-cash forms of payment, such as credit and debit cards, has steadily increased over the past ten years.
The Nilson Report, a leading industry publication that tracks the transaction processing industry, is forecasting the following:– Global purchase volume grew at a compound annual growth of 14.0% over the period 2000-2006
Additional forecasts estimate that purchase volume by U.S. consumers using Visa credit cards will increase 63% from 2003 through 2008, while MasterCard usage is projected to increase by 46% during the same period.
The Internet marketplace is growing at a rate of 20% annually.
Pipeline is poised to capitalize on this rapid growth.
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Large and Growing MarketLarge and Growing Market
Electronic 36%
Electronic 51%
Electronic 72%
Traditional 64%
Traditional 49%
Traditional 28%
2000 2005 2010
5.3 trilliontransactions
6.7 trilliontransactions
8.2 trilliontransactions
Merchants locations accepting credit cards continue to grow
* First Annapolis Consulting Inc.
CAGR > 10 %
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Large and Growing MarketLarge and Growing Market
• Pipeline Data focuses exclusively on the 5 million small merchants that generate $422 billion in Visa / MasterCard charge volume
Small merchants represent a large market opportunity
• Small merchants represent an attractive customer base
• Largest market
• Fastest growing market
• Difficult to identify and serve – less competition
• Most profitable to merchant processors
$2.202 trillion
* The Nilson Report
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Stable and Recurring Revenue Base Stable and Recurring Revenue Base
Processing fees paid by merchant are recurring in nature Credit card processing is vital to a merchant’s success Approximately 88% of Pipeline Data’s volume recurs
Recurring Volume88%
Loss Volume12%
Terminated by PPDA10%
Other17%
Out of Business56%
Competition17%
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MasterCard
Visa
MasterCard and Visa IPOs
12 months
2 months
1010
Efficient ModelEfficient Model
Pipeline enjoys low costs related to account acquisition
through the Internet and strategic partners
Pipeline generates leads from potential merchants via the Internet.
The Company also obtains leads via call generation and other marketing media.
Pipeline owns a sophisticated call center that enables quick turnaround. Merchants can be activated for card acceptance within 24 hours.
Pipeline Data has favorable search engine positioning through its proprietary optimization tools.
Optimal positioning places the Company in prime viewing area for potential customers who search via the Internet.
A high barrier to entry gives Pipeline Data a significant cost advantage over its competitors.
1111
Organic Growth StrategyOrganic Growth Strategy
Management seeks to aggressively grow the number of merchant accounts serviced through the solicitation of new merchant accounts.
The Pipeline sales team intends to expand the portfolio of merchant clients through internal sales efforts augmented by expanding marketing and advertising. Management focused on aligning marketing, sales capacity and sales incentives in a cost-effective sales cycle.
The Company aims to achieve greater business efficiencies by creating, operating and continually enhancing processing and servicing operations in an efficient and scalable manner.
The Company’s service and support platforms are completely flexible, enabling merchant customization to meet the their specific requirements.
1212
Application GrowthApplication Growth
Application Count by Month (Trailing 15 months)Application Count by Month (Trailing 15 months)
0
500
1000
1500
2000
2500
Dec
Jan '06
Feb
Marc
h
April
May
June
July
Aug
Sept
Oct
Nov
Dec
Jan '07
Feb
Mar
April
May
June
July
Aug
Sept
Oct
Nov
Dec
Jan '08
Feb
Mar
April
Applications
Approved
Linear (Approved)
1313
Financial Overview
1414
Financial Overview ($,000)Financial Overview ($,000)
2007– Revenue of $49,903 up 19 % from $41,814 in 2006– Gross Profit of $17,716 up from $14,926 for 2006 – EBITDA of $5,765 compared to $3,392 for 2006– Adjusted EBITDA of $6,389 compared to $6,339 for 2006– Net Income (loss) of $(1,970) compared to $(2,286) for 2006
1st Quarter 2008– Revenue of $11,410 down 3.8% compared to 1Q2007– Gross Profit of $4,306 up 10.2% from $3,908 for 1Q2007– EBITDA of $888 compared to $1,148 for 1Q2007– Adjusted EBITDA of $953 compared to $1,256 for 1Q2007 – Net Income (loss) of $(1,161) compared to $(1,098) for
1Q2007
1515
Annual Financial Results
Year Ended December 31($,000) 2007 2006 Change
Revenues 49,903$ 41,814$ 8,089$ 19.3%Cost of Goods and Services 32,187 26,888 5,299 19.7%Gross Profit 17,716 14,926 2,790 18.7%
Operating Expenses 12,109 9,515 2,594 27.3%Depreciation and Amort 3,739 2,797 942 33.7%Total Operating Expenses 15,848 12,312 3,536 28.7%
Operating Income 1,868 2,614 (746) -28.5%
Interest Income/(Expense) (6,116) (6,739) 623 -9.2%Income Taxes Exp (Benefit) (2,278)$ (247)$ (2,031)$ 822.3%
Net Income (1,970)$ (2,286)$ 316$ -13.8%
EBITDA 5,765 3,392 2,373 70.0%Adjusted EBITDA 6,389 6,339 50 0.8%
1616
Pipeline Data, Inc.Consolidated Statement of Operations
For the Twelve Months Ending March 31, 2008
TwelveQtr ending Qtr ending Qtr ending Qtr ending months ending
($,000) June 30, 2007 September 30, 2007 December 31, 2007 March 31, 2008 March 31, 2008
Revenue $13,082 $12,754 $12,209 $11,410 $49,455
Cost of salesCost of goods sold 115 90 90 78 373 Cost of services sold 2,542 1,999 1,756 1,739 8,036 Interchange 6,025 5,944 5,677 5,287 22,933
Total cost of sales 8,682 8,033 7,523 7,104 31,342
Gross profit 4,399 4,722 4,686 4,306 18,113
Operating expensesSalaries and payroll costs 1,712 1,591 1,714 1,850 6,867 Selling, general and administrative expense 1,332 1,488 1,453 1,592 5,866 Customer acquisition cost amortization 189 173 163 158 683 Amortization expense 706 729 729 728 2,892 Depreciation expense 60 64 71 73 269
Total operating expenses 4,000 4,044 4,131 4,402 16,576
Net operating income 399 677 555 (96) 1,536
Other income and (expenses) - - - - - Interest and other income 54 26 22 25 126 Interest expense (1,513) (1,529) (1,594) (1,536) (6,173)
Total other income(expense) (1,460) (1,503) (1,572) (1,511) (6,046)
Income before income taxes (1,060) (826) (1,017) (1,607) (4,510)
Provision for income taxes (233) (719) (1,080) (445) (2,476)
Net income(loss) (828) (107) 63 (1,162) (2,033)
1717
Financial Results – Year End Comparative Balance Sheets Financial Results – Year End Comparative Balance Sheets
($,000) 12/31/2007 12/31/2006 Change
Assets:
Cash & Short Term Investments 995$ 2,770$ (1,775)$ -64%Accounts Receivable 2,646 3,036 (390) -13%Other Current Assets 333 639 (306) -48%Property and Equip, net 1,395 1,117 278 25%Intangibles / Goodwill 57,027 54,407 2,620 5%Other Assets 3,846 3,054 791 26%
Total Assets 66,242$ 65,024$ 1,218$ 2%
Liabilities & Shareholder Equity:
Current Liabilities 3,903$ 2,513$ 1,390$ 55%Debt 30,358 28,221 2,137 8%Other Liabilities 1,482 3,694 (2,212) -60%Temporary Equity 13,486 12,577 909 7%Shareholder Equity 17,013 18,020 (1,007) -6%
Total Liabilities & Shareholder Equity 66,242$ 65,024$ 1,218$ 2%
1818
Financial Results-Cash Flows Selected DataFinancial Results-Cash Flows Selected Data
($,000)Yr Ended Yr Ended
12/31/2007 12/31/2006Cash Flow from Operations 3,066$ 2,035$
Cash Flow from Investing Activities (4,341) (18,833)
Cash Flow from Financing Activities (501) 17,313
Total Change in Cash (1,775) 516
Cash and Equivalents, Year End 995$ 2,771$
1919
1st Quarter Financial Results
Three months endingMarch 31,
($,000) 2008 2007 Change
Revenues 11,410$ 11,856$ (446)$ -3.8%Cost of Goods and Services 7,104 7,947 (843) -10.6%Gross Profit 4,306 3,909 397 10.2%
Operating Expenses 3,600 2,918 682 23.4%Depreciation and Amort 801 755 46 6.1%Total Operating Expenses 4,401 3,673 728 19.8%
Operating Income (95) 236 (331) NM
Interest Income/(Expense) (1,511) (1,581) 70 -4.4%Income Taxes Exp (Benefit) (445) (247) (198) 80.2%
Net Income (loss) (1,161)$ (1,098)$ (63)$ 5.7%
2020
($,000) 3/31/2008 12/31/2007 Change
Assets:
Cash & Short Term Investments 242$ 995$ (753)$ -75.7%Accounts Receivable 2,341 2,646 (305) -11.5%Other Current Assets 1,255 333 922 276.9%Property and Equip, net 1,488 1,395 93 6.7%Intangibles / Goodwill 56,336 57,027 (691) -1.2%Other Assets 4,291 3,846 445 11.6%
Total Assets 65,953$ 66,242$ (289)$ -0.4%
Liabilities & Shareholder Equity:
Current Liabilities 4,459$ 3,903$ 556$ 14.2%Debt 31,024 30,358 666 2.2%Other Liabilities 1,068 1,482 (414) -27.9%Temporary Equity 14,086 13,486 600 4.4%Shareholder Equity 15,316 17,013 (1,697) -10.0%
Total Liabilities & Shareholder Equity 65,953$ 66,242$ (289)$ -0.4%
Financial Results – Year End and March 31 Balance Sheets
2121
Financial Results-Cash Flows Selected DataFinancial Results-Cash Flows Selected Data
($,000)Qtr Ended Qtr Ended3/31/2008 3/31/2007
Cash Flow from Operations 1,139$ 1,062$
Cash Flow from Investing Activities (1,853) (173) (38)
Cash Flow from Financing Activities (752) (24)
Total Change in Cash (752) 865
Cash and Equivalents, Year End 242$ 3,635$
2222
COCARD TRANSACTIONCOCARD TRANSACTION
Details behind Merger
2323
OPPORTUNITYOPPORTUNITY
Combine Pipeline and COCARD together at an estimated 6.5X pro forma EBITDA
Historically this is between 1-2X the EBITDA multiples of most comparable trading values and represents a 40-50% discount to the average sale and going private multiples over the last several years.– Take advantage of a unique opportunity to incorporate Pipeline’s excess
processing capacity and extremely attractive pricing into COCARD
– Plug the COCARD sales engine into the Pipeline processing machine to increase the reach of Pipeline beyond the Internet marketing engine it has developed
– Repurchase ownership of the main portfolio at NPC and use it to increase cash flow and drive down costs
Combining the processing volumes of the two companies will drive transactional pricing down through the Fidelity National Information Services contract previously negotiated.
23
Pipeline
2424
Highly ComplementaryHighly Complementary
Both Pipeline and COCARD are companies involved in the processing of credit and debit card transactions and related services. Each has a unique and complementary approach to the merchant service processing (“MSP”) business. – Pipeline is a leader in boarding and servicing e-commerce merchants. Its
primary distribution channel is through its Internet marketing initiatives. COCARD is a leading marketing organization whose distribution channel
is independent sales offices that focus primarily on retail merchant sales. – COCARD produces between 650 and 800 new merchant accounts each
month.– COCARD is comprised of over 71 sales offices (as of December 31, 2007).
Pipeline’s risk, underwriting and customer service departments will be utilized for new COCARD merchants, as well as the approximately 27,000 existing merchants that will be converted to the preferential pricing provided by the combined volumes of the two entities.
Pipeline will process and support the merchant base derived from the sales efforts of all of its combined entities, including COCARD and all of its sales offices and agents.
2525
Operational Efficiencies Operational Efficiencies
Pipeline would have processed over 75 million transactions and $5.1 billion in transaction volume per year on a pro forma basis for 2007.
Pipeline is qualified to provide direct-connect card association authorizations, which will magnify the Company’s already significant processing capability.
COCARD’s business will flow through Pipeline’s access points, providing significant leverage with the Company’s transaction settlement providers.
Pipeline has already achieved significant price discounts from its settlement providers. By combining the volume of Pipeline and COCARD, the Company has the ability to achieve additional discounts from these providers.
2626
Roles and CapabilitiesRoles and CapabilitiesAcquiring has a fairly complex value chain which gives rise to a number of different business models and types of players in the market.
Sales &MarketingSales &Marketing
Underwriting & BoardingUnderwriting & Boarding
Deployment& ActivationDeployment& Activation
MARKETING & ACCOUNT SETUPMARKETING & ACCOUNT SETUP BACK-OFFICE SUPPORTBACK-OFFICE SUPPORTTRANSACTION PROCESSINGTRANSACTION PROCESSING
Merchant Services Value Chain & Business Models
Front-end ProcessingFront-end Processing
Operations/Risk MgmtOperations/Risk Mgmt
MerchantServicingMerchantServicing
RelationshipMgmtRelationshipMgmt
ProductDev. & MgmtProductDev. & Mgmt
Back-end ProcessingBack-end Processing
Network/ ClearingNetwork/ Clearing
Fully Integrated Large Bank Acquirer (example: Fifth Third)
Fully Integrated Non-Bank Acquirers (example: Global Payments)
Bank – non-Bank Alliance (ex. First Data, Wells Fargo Merchant Services)
SponsorBank
Bank
Regional Bank Acquirer (ex. Commerce Bank)3rd Party Processor
More Sophisticated ISO (ex. iPayment)3rd Party Processor (ex. TSYS)
3rd Party Processor
Less Sophisticated ISO (or Small Referral Bank)
Pipeline
YES YES YES NO 2Q’08 NO 1Q’08 YES YES Limited
COCARD
YES NO NO NO NO NO NO NO NO YES
2727
Actual Results 2007, Pro forma and Baseline Projections 2008Actual Results 2007, Pro forma and Baseline Projections 2008
Fiscal Year Ended December 31,2007
in millions Pipeline COCARD 2007 Proj 2008COMBINED COMBINED
Revenue 49.9 16.8 66.7 75.60
Interchange 23.2 - 23.2 25.71 Cost of Services Sold 6.2 - 6.2 6.09 ISO Payments 2.4 15.1 17.5 4.12 Cost of Goods Sold 0.4 - 0.4 0.32 Total COGS 32.2 15.1 47.3 36.2
Gross Profit 17.7 1.7 19.4 39.37
Salaries and payroll cost 6.6 0.2 6.9 6.4
Selling, general and administrative 5.4 1.0 6.3 6.6
Total Operating Expenses 12.00 1.20 13.20 13.00
EBITDA AS REPORTED 5.73 0.48 6.2 26.4 Pro Forma EBITDA as adjusted 7.96 16.86 24.8 27.9
Consolidated Pipeline/COCARD Financials
2828
Current Debt Funding Term SheetsCurrent Debt Funding Term Sheets
$50 million from a major financial institution at a cost of L+450 (8%)– $5 million from draw on revolving credit
• further availability limited to $7 million until credit metrics are achieved: either 1.5x EBITDA or 2x Gross Profit
– $25 million term loan, 5 year maturity $40 million from an institutional lending source at 13.5%
– No amortization, 5.5 year maturity– Repayable at 105% year 1, 103% year 2
$11+ million in 12% seller’s financing notes from COCARD and other parties to the transaction
04/13/23
2
2929
REVOLVING CREDIT AVAILABILITYREVOLVING CREDIT AVAILABILITY
VS 1.5X LTM trailing EBITDA.
– Example- Estimated LTM EBITDA at close will be $24 million in adjusted pro forma EBITDA
– Availability would be 1.5X $24 million=$36 million plus reimbursement of $2 million in cash expenses already paid plus $500,000 estimated cash on hand
Thus, availability= $36m+$2m+$500,000= $38.5 million Funding available to support the transaction= $38.5m-
$10.00m in working capital=$28.5 million
04/13/23
2
3030
Comp Loan Metrics and Key Terms Comp Loan Metrics and Key Terms 1st Lien LENDER 2nd Lien 2nd Lien
Term EBITDA GROSS PROFIT
EBITDA GROSS PROFIT
Revolver Availability
1.5x less Funded 1st Lien Debt
TOTAL SENIOR 3.25X LTM EBITDA 2.0x
TOTAL DEBT 5X LTM EBITDA 4.4x
INTEREST RATE
4%+ 450 bps or 400bps less than 2nd
=8.5%
=9.5%
4%+950bps =13.5%
04/13/23
2
3131
Estimated Capital Structure Pro formaEstimated Capital Structure Pro forma
04/13/23
CONFIDENTIAL: BLUMBERG INVESTMENTS
31
CAPITAL STRUCTURE
AVAILABLE WORKING CAPITAL 10,000,000
REVOLVER 8.50% 5,000,000
TERM LOAN 8.50% 25,000,000
2nd Lien TERM LOAN 13.50% 40,000,000
TOTAL SELLER’S NOTES 12.00% 20,000,000
TOTAL DEBT $90,000,000
PREFERRED EQUITY 16.00% 50,000,000
TOTAL CASH INTEREST $10,175,000
TOTAL INTEREST EXPENSE $18,975,000
DEBT/EBITDA (LTM est q2 $25.5) 3.39X
DEBT AND PFD/EBITDA 5.47X
EBITDA/CASH INTEREST 2.60X
EBITDA/TOTAL INTEREST 1.39X
3232
Estimated Cash Flow and Potential Debt Amortization Pro forma (low end case ‘09)Estimated Cash Flow and Potential Debt Amortization Pro forma (low end case ‘09)
04/13/23
CONFIDENTIAL: BLUMBERG INVESTMENTS
32
CASH FLOW
NET INCOME$(6,520,000)
DEPRECIATION & NON- CASH $16,030,000
NON- CASH INTEREST 8,800,000
WORKING CAPITAL NEEDS $(1,500,000)
CAPEX $(750,000)
NET FREE CASH FLOW FROM OPS.$16,060,000
MANDATORY TERM DEBT PAYMENTS$(5,000,000)
NET ESTIMATED FREE CASH FLOW FOR ADDITIONAL DEBT PAYMENTS $11,060,000
3333
Total Estimated Sources and UsesTotal Estimated Sources and Uses
USES NEEDED
SOURCES FUNDING
Convertible Bond Redemption
$42,550,000 Senior Secured 1st Lien $30,000,000
COCARD Purchase
$79,100,000 Senior Secured 2nd Lien $40,000,000
Temporary Equity
$14,385,000 COCARD Loan $11,000,000
Other $465,000 Deferral of fees by BI $1,500,000
Fees & Expenses
$6,000,000
TOTAL EST. USES
$142,500,000 TOTAL ESTIMATED NEED
$60,000,000
04/13/23
2
3434
RationalizationRationalization
The combination of Pipeline and COCARD brings an opportunity to rationalize the operating structures of both companies.
Pipeline possesses a significant Internet service, as well as a back office and information technology structure capable of servicing the combined companies.
As a cooperative, COCARD did not build its own infrastructure. Instead, it entered into an agreement with National Processing Company (“NPC”) for the back-end settlement of transactions. Under the terms of the agreement, each ISO provides its own services and is responsible for its own selling, general and administrative expenses.
3535
Significant Growth DriversSignificant Growth Drivers
Proprietary advantages and sales engines Top-tier search engine placement Advanced underwriting and application processing technology Proprietary gateway and shopping cart solutions Proprietary wireless payment solutions
Acquisitions Highly fragmented merchant portfolio market in e-commerce and retail Consolidating market with diminishing number of purchasers of small-to-
medium portfolios
Operating model leverage Increased transactional volume and growing merchant base improves Pipeline’s
ability to effectively negotiate advantageous processing contracts Proven model to improve portfolio margins after acquisition and alleviate
attrition Highly scalable model
3636
Experienced and Vested Management TeamExperienced and Vested Management Team
Experienced and Vested Management Team
The Company’s combined management team has more than 150 years of industry experience.
Management team members average 16 years of experience each.
Management’s solid industry underpinnings and business know-how is unique in that its breadth spans almost every major processor and processing system in the credit card industry today.
Management is deeply vested in the industry as evidenced by its combined 50 plus years of service on industry association boards and committees.
3737
Experienced integration execution Experienced integration execution
SecurePay.com, Inc. Pipeline Data Processing, Inc.
AIRCHARGE® Valadata, Inc.
Jun-97 Feb-02 Aug-02 Jul-04 Nov-04 Sep-05 Dec-05 Jul-06 Jul-06 To come
Company FoundedJun-97
Northern Merchant
Services, Inc.Pipeline Portfolio Acquisitions, Inc.
Charge.com, Inc.
Paynet Systems, Inc.
CardAccept, Inc.
3838
Investment HighlightsInvestment Highlights
Emerging Growth Company in Large and Growing Market
Strong and Broad Operating Platform
Significant Growth Drivers
Strategic Partnerships
Stable and Recurring Revenue Base
Cash-efficient Model
Strong, Committed Management Team
3939
Contact UsContact Us
Pipeline Data Inc.(OTCBB: PPDA)
1515 Hancock Street, Suite 301
Quincy, MA 02169
Phone: 617-405-2600
Fax: 617-405-2619
Web site: www.pipelinedata.com
For more information:
4040
Management Management
MacAllister Smith, President,Chief Executive Officer and Director – Mr. Smith has served as Pipeline Data’s president and CEO since March 2002. He has over fifteen years of experience in the merchant processing industry and has held ownership positions in three companies that have been merged with public corporations. Mr. Smith was most recently regional vice president of Elavon, formerly Nova Information Systems (acquired by U.S. Bank (NYSE:USB)), a multi-billion dollar corporation and one of the three largest credit card processors in the industry. He was president and CEO of Pinnacle Financial Technologies, Inc., a nationally recognized firm and a pioneer in electronic benefits transfer programs. Pinnacle Financial Technologies, Inc. merged with Nova Information Systems in 1998. Mr. Smith was also co-founder and senior partner of AccesServices, Inc. (“AccesServices”). He was part of the team that designed and built a nationwide network processing switch for retail and online MasterCard, Visa, American Express and debit card transactions. AccesServices was sold to Digital Courier Technologies, Inc. (NASDAQ:DCTI) in 1999.
Don Gruneisen, Chief Financial Officer – Mr. Gruneisen has over 20 years of experience in the volatile, high-growth telecommunications industry, with expertise in the areas of finance, management, accounting and top executive corporate management. Mr. Gruneisen holds an MBA from Clarkson University in Accounting and Management Information Systems and is a Certified Public Accountant with twelve years experience as a corporate officer (including serving in positions of chief executive officer/general manager). He has been the Treasurer and Director of Finance of NMSI since July 2001. From June 2000 to July 2001, Mr. Gruneisen was a consultant providing strategic guidance with specialization in billing, accounting, and tax issues associated with the telecommunications industry and financial management. From January 1999 to June 2000, he was a senior accountant at Whalen, Davey & Looney, and LLP. From 1977 to 1998, he worked for Nicholville Telephone Company, a $3.5 million ESOP-owned local exchange carrier/utility. He started with the company in 1977 as an accountant and accounting manager and ultimately became Chief Executive Officer.
Kevin Smith, Chief Operating Officer – Mr. Smith has served as Pipeline Data’s chief operating officer since May 2004, and as the president and director of Pipeline Data subsidiary, Pipeline Data Processing. He has over 14 years of experience in the merchant processing industry. Mr. Smith was employed by Concord EFS (acquired by First Data (NYSE:FDC)) from 1998 to 2004, serving as its senior vice president of ISO Sales and as COO of Concord Payment Systems, a wholly owned subsidiary of Concord EFS. Mr. Smith was responsible for the wholesale credit card processing division, which included all aspects of operations and sales. Prior to that, he served as operations director for Bancard Systems.
4141
ManagementManagement
Thomas Tesmer, Chief Technology Officer – Mr. Tesmer has served as Pipeline Data’s chief technology officer since July 2004. Mr. Tesmer is an experienced senior operations executive with more than 25 years in the transaction processing business. Prior to joining Pipeline, he was the president of Symmetrex, Inc., a processing company supporting third-party clients that operated stored value card programs in the United States and foreign markets. Mr. Tesmer was the executive vice president of Front End Systems for Heartland Payment Systems (NYSE: HPY), one the nation’s largest merchant processing companies. He served as president and chief executive officer of Access Services, Inc. (“AccesServices”), a credit card payment processing corporation servicing merchant sales agencies and financial institutions nationwide. Mr. Tesmer is also the chairman of the board of Q Comm International, Inc. (Amex:QMM).
Jack Rubinstein, Chairman – Mr. Rubinstein has served as Pipeline Data’s chairman since the Company’s inception. He has been the general partner of DICA Partners, an investment hedge fund, since the commencement of its operations in 1991. Mr. Rubinstein also acts as a management and financial consultant to various public companies in the telecommunications industry. He was a founding public board member of CD Radio, Inc. (Sirius Satellite Radio (NASDAQ:SIRI)) and aided in the funding of the Molloy Group, a help desk software developer. Mr. Rubinstein is also a founding member of The Capital Advisory Services, a consortium of consultants aiding the capital market needs of emerging private and smaller public companies. Mr. Rubinstein has been a securities analyst with Shearson Hammill & Co., and was employed at Bear Stearns & Co. where he was a director, managing the proceeds of corporate insider securities sales. Prior to Bear Stearns, Mr. Rubinstein joined Morgan Stanley & Co. where, in addition to serving corporate officers and select individual clients, he provided his expertise to private investment partnerships. Mr. Rubinstein is a graduate of Cornell University and received an MBA in Finance from New York University.
James Plappert, Chief Marketing Officer – Mr. Plappert has served as Pipeline Data’s chief marketing officer since October 2005. Mr. Plappert is a seasoned executive with over 24 years experience in the payment systems and merchant bankcard industry. He has held a number of executive level positions in prominent companies including National Processing Company [NPC], PNC Bank and First National Processing acquired by iPayment Holdings in 2001. He also served as executive vice president M&A of First American Payment Systems from January 2002 to April 2003 culminating in a private equity transaction with Lindsay, Goldberg and Bessemer. He co-founded ACH Payment Solutions Inc. in 2002 where he remains a director. Additionally, for over eleven years, Mr. Plappert held a number of executive level board positions, including president, with the Electronic Transaction Association (ETA), the leading international trade association in the merchant processing industry.
