i3 Verticals Reports Fourth Quarter and Full Fiscal Year 2020 Financial Results
Announces Public Sector Acquisition and Inducement Equity Grants
“We are also excited that on
Highlights for the fiscal fourth quarter and full fiscal year of 2020 vs. 2019
- Fourth quarter revenue was
$38.3 million , a decrease of 65% over the prior year's fourth quarter; Full year revenue was$150.1 million , a decrease of 60% over the prior year. Results for 2020 reflect the adoption of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers1. - Fourth quarter adjusted net revenue2, which excludes acquisition revenue adjustments and interchange and related network fees, was
$38.4 million , a decrease of 5% over the prior year's fourth quarter; Full year adjusted net revenue2 was$151.0 million , an increase of 10% over the prior year. - Fourth quarter net loss was
$2.0 million ; Full year net loss was$1.0 million . - Fourth quarter net loss attributable to
i3 Verticals, Inc. was$0.7 million ; Full year net loss attributable toi3 Verticals, Inc. was$0.4 million . - Fourth quarter adjusted EBITDA2 was
$9.7 million , a decrease of 17% over the prior year's fourth quarter; Full year adjusted EBITDA2 was$38.6 million , a decrease of less than 1% over the prior year. - Fourth quarter adjusted EBITDA2 as a percentage of adjusted net revenue2 was 25%, compared to 29% in the prior year's fourth quarter; Full year adjusted EBITDA2 as a percentage of adjusted net revenue2 was 26%, compared to 28% in the prior year.
- Fourth quarter diluted net loss per share available to Class A common stock was
$0.06 , compared to$0.07 in the prior year's fourth quarter; Full year diluted net loss per share available to Class A common stock was$0.03 , compared to$0.29 in the prior year. - Fourth quarter and full year ended
September 30, 2020 pro forma adjusted diluted earnings per share2, which gives pro forma effect to the Company's going forward effective tax rate, was$0.20 and$0.77 , respectively, compared to$0.24 and$0.83 for the fourth quarter and full year endedSeptember 30, 2019 , respectively. Integrated payments3 were 57% and 55% of payment volume for the three months and full year endedSeptember 30, 2020 , respectively. - At
September 30, 2020 , the ratio of consolidated total debt-to-EBITDA, as defined in the Company's Senior Secured Credit Facility, was 2.59x. - As previously announced in our press release dated
October 5, 2020 , the Company completed the acquisition of three companies that strengthen its vertical focus. The first acquisition is within the Company’s Public Sector vertical and provides software services to public safety and law enforcement customers. The second acquisition is within the Company’s Healthcare vertical and offers medical billing and other software. The final acquisition offers proprietary technology that will augment the Company’s existing platform across several verticals. The aggregate purchase price was$19.6 million in cash and an amount of contingent consideration, which is still being valued.
1. |
Effective |
2. |
Represents a non-GAAP financial measure. For additional information (including reconciliation information), see the attached schedules to this release. |
3. |
Integrated payments represents payment transactions that are generated in situations where payment technology is embedded within the Company's own proprietary software, a client’s software or critical business process. |
Acquisition of
On
In accordance with Nasdaq Listing Rule 5635(c)(4), the Company has granted equity awards under its 2020 Acquisition Equity Incentive Plan to the new employees who agreed to join the Company in connection with the
2021 Outlook
The COVID-19 pandemic has created significant uncertainty in the economy and the extent to which the COVID-19 pandemic will impact the Company's future results is difficult to reasonably estimate at this time. Therefore, the Company is not providing a financial outlook for the fiscal year ending
Conference Call
The Company will host a conference call on
To listen to the call live via webcast, participants should visit the “Investors” section of the Company’s website, www.i3verticals.com, and go to the “Events & Presentations” page approximately 10 minutes prior to the start of the call. The online replay will be available on this page of the Company’s website beginning shortly after the conclusion of the call and will remain available for 30 days.
Non-GAAP Measures
This press release contains information prepared in conformity with GAAP as well as non-GAAP information. It is management’s intent to provide non-GAAP financial information to enhance understanding of the Company's consolidated financial information as prepared in accordance with GAAP. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure and the most directly comparable GAAP financial measure are presented so as not to imply that more emphasis should be placed on the non-GAAP measure. The non-GAAP financial information presented may be determined or calculated differently by other companies.
Additional information about non-GAAP financial measures, including, but not limited to, adjusted net revenue, pro forma adjusted net income, adjusted EBITDA and pro forma adjusted diluted EPS, and a reconciliation of those measures to the most directly comparable GAAP measures is included on pages 10 to 12 in the financial schedules of this release.
About
Helping drive the convergence of software and payments,
Forward-Looking Statements
This release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this release are forward-looking statements, including any statements of a general economic or industry specific nature. Forward-looking statements give the Company's current expectations and projections relating to its financial condition, results of operations, guidance, plans, objectives, future performance and business. You generally can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “could have,” “exceed,” “significantly,” “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.
The forward-looking statements contained in this release are based on assumptions that we have made in light of the Company's industry experience and its perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. As you review and consider information presented herein, you should understand that these statements are not guarantees of future performance or results. They depend upon future events and are subject to risks, uncertainties and assumptions. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect the Company's actual future performance or results and cause them to differ materially from those anticipated in the forward-looking statements. Certain of these factors and other risks are discussed in the Company's filings with the
Any forward-looking statement made by us in this release speaks only as of the date of this release. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
|
|||||||||||||||||||
($ in thousands, except share and per share amounts) |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three months ended |
|
Year ended |
||||||||||||||||
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
||||||||
|
(unaudited) |
|
(unaudited) |
|
|
|
(unaudited) |
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
38,272 |
|
|
$ |
108,562 |
|
|
(65)% |
|
$ |
150,134 |
|
|
$ |
376,307 |
|
|
(60)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interchange and network fees(1) |
|
|
69,090 |
|
|
(100)% |
|
|
|
242,867 |
|
|
(100)% |
||||||
Other costs of services |
12,356 |
|
|
12,823 |
|
|
(4)% |
|
47,230 |
|
|
44,237 |
|
|
7% |
||||
Selling general and administrative |
20,117 |
|
|
18,438 |
|
|
9% |
|
78,323 |
|
|
62,860 |
|
|
25% |
||||
Depreciation and amortization |
4,549 |
|
|
4,689 |
|
|
(3)% |
|
18,217 |
|
|
16,564 |
|
|
10% |
||||
Change in fair value of contingent consideration |
52 |
|
|
1,653 |
|
|
(97)% |
|
(1,409) |
|
|
3,389 |
|
|
n/m |
||||
Total operating expenses |
37,074 |
|
|
106,693 |
|
|
(65)% |
|
142,361 |
|
|
369,917 |
|
|
(62)% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income from operations |
1,198 |
|
|
1,869 |
|
|
(36)% |
|
7,773 |
|
|
6,390 |
|
|
22% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
2,305 |
|
|
2,017 |
|
|
14% |
|
8,926 |
|
|
6,004 |
|
|
49% |
||||
Other expense |
1,792 |
|
|
— |
|
|
n/m |
|
2,621 |
|
|
— |
|
|
n/m |
||||
Total other expenses |
4,097 |
|
|
2,017 |
|
|
103% |
|
11,547 |
|
|
6,004 |
|
|
92% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(Loss) income before income taxes |
(2,899) |
|
|
(148) |
|
|
1,859% |
|
(3,774) |
|
|
386 |
|
|
(1,078)% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Benefit from income taxes |
(877) |
|
|
(175) |
|
|
401% |
|
(2,795) |
|
|
(177) |
|
|
1,479% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income |
(2,022) |
|
|
27 |
|
|
(7589)% |
|
(979) |
|
|
563 |
|
|
(274)% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income attributable to non-controlling interest |
(1,371) |
|
|
957 |
|
|
n/m |
|
(560) |
|
|
3,608 |
|
|
n/m |
||||
Net loss attributable to |
$ |
(651) |
|
|
$ |
(930) |
|
|
(30)% |
|
$ |
(419) |
|
|
$ |
(3,045) |
|
|
(86)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net loss per share available to Class A common stock: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.04) |
|
|
$ |
(0.07) |
|
|
|
|
$ |
(0.03) |
|
|
$ |
(0.29) |
|
|
|
Diluted |
$ |
(0.06) |
|
|
$ |
(0.07) |
|
|
|
|
$ |
(0.03) |
|
|
$ |
(0.29) |
|
|
|
Weighted average shares of Class A common stock outstanding(1): |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
15,780,082 |
|
|
14,159,957 |
|
|
|
|
14,833,378 |
|
|
10,490,981 |
|
|
|
||||
Diluted |
28,069,996 |
|
|
14,159,957 |
|
|
|
|
27,429,801 |
|
|
10,490,981 |
|
|
|
n/m = not meaningful |
|
__________________________ |
|
1. |
Effective |
(Unaudited) ($ in thousands, except per share amounts) |
|||||||||||||||||||
|
Three months ended |
|
Year ended |
||||||||||||||||
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net revenue (non-GAAP) |
$ |
38,426 |
|
|
$ |
40,565 |
|
|
(5)% |
|
$ |
150,958 |
|
|
$ |
137,597 |
|
|
10% |
Adjusted EBITDA (non-GAAP) |
9,682 |
|
|
11,726 |
|
|
(17)% |
|
38,557 |
|
|
38,745 |
|
|
—% |
||||
Pro forma adjusted diluted earnings per share (non-GAAP) |
$ |
0.20 |
|
|
$ |
0.24 |
|
|
(17)% |
|
$ |
0.77 |
|
|
$ |
0.83 |
|
|
(7)% |
(Unaudited) ($ in thousands) |
|||||||||||||||
|
Three months ended |
|
Year ended |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Payment volume(1) |
$ |
3,979,593 |
|
|
$ |
3,848,579 |
|
|
$ |
14,377,148 |
|
|
$ |
13,144,458 |
|
__________________________ |
|
1. |
Payment volume is the net dollar value of both 1) |
(Unaudited) ($ in thousands) |
|||||||||||||||
|
For the Three Months Ended |
||||||||||||||
|
Merchant |
|
Proprietary |
|
Other |
|
Total |
||||||||
Revenue |
$ |
24,759 |
|
|
$ |
13,924 |
|
|
$ |
(411) |
|
|
$ |
38,272 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Other costs of services |
10,962 |
|
|
1,805 |
|
|
(411) |
|
|
12,356 |
|
||||
Selling general and administrative |
6,276 |
|
|
7,335 |
|
|
6,506 |
|
|
20,117 |
|
||||
Depreciation and amortization |
2,774 |
|
|
1,603 |
|
|
172 |
|
|
4,549 |
|
||||
Change in fair value of contingent consideration |
(400) |
|
|
452 |
|
|
— |
|
|
52 |
|
||||
Income (loss) from operations |
$ |
5,147 |
|
|
$ |
2,729 |
|
|
$ |
(6,678) |
|
|
$ |
1,198 |
|
|
|
|
|
|
|
|
|
||||||||
Payment volume |
$ |
3,614,766 |
|
|
$ |
364,827 |
|
|
$ |
— |
|
|
$ |
3,979,593 |
|
|
For the Year Ended |
||||||||||||||
|
Merchant |
|
Proprietary |
|
Other |
|
Total |
||||||||
Revenue |
$ |
100,949 |
|
|
$ |
50,953 |
|
|
$ |
(1,768) |
|
|
$ |
150,134 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Other costs of services |
43,940 |
|
|
5,057 |
|
|
(1,767) |
|
|
47,230 |
|
||||
Selling general and administrative |
26,376 |
|
|
28,187 |
|
|
23,760 |
|
|
78,323 |
|
||||
Depreciation and amortization |
11,796 |
|
|
5,723 |
|
|
698 |
|
|
18,217 |
|
||||
Change in fair value of contingent consideration |
(4,691) |
|
|
3,282 |
|
|
— |
|
|
(1,409) |
|
||||
Income (loss) from operations |
$ |
23,528 |
|
|
$ |
8,704 |
|
|
$ |
(24,459) |
|
|
$ |
7,773 |
|
|
|
|
|
|
|
|
|
||||||||
Payment volume |
$ |
13,553,263 |
|
|
$ |
823,885 |
|
|
$ |
— |
|
|
$ |
14,377,148 |
|
________ |
|
1. |
Effective |
(Unaudited) ($ in thousands) |
|||||||||||||||
|
For the Three Months Ended |
||||||||||||||
|
Merchant |
|
Proprietary |
|
Other |
|
Total |
||||||||
Revenue |
$ |
95,584 |
|
|
$ |
12,978 |
|
|
$ |
— |
|
|
$ |
108,562 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Interchange and network fees |
66,940 |
|
|
2,150 |
|
|
— |
|
|
69,090 |
|
||||
Other costs of services |
11,713 |
|
|
1,110 |
|
|
— |
|
|
12,823 |
|
||||
Selling general and administrative |
7,129 |
|
|
5,916 |
|
|
5,393 |
|
|
18,438 |
|
||||
Depreciation and amortization |
3,223 |
|
|
1,306 |
|
|
160 |
|
|
4,689 |
|
||||
Change in fair value of contingent consideration |
895 |
|
|
758 |
|
|
— |
|
|
1,653 |
|
||||
Income (loss) from operations |
$ |
5,684 |
|
|
$ |
1,738 |
|
|
$ |
(5,553) |
|
|
$ |
1,869 |
|
|
|
|
|
|
|
|
|
||||||||
Payment volume |
$ |
3,666,707 |
|
|
$ |
181,872 |
|
|
$ |
— |
|
|
$ |
3,848,579 |
|
|
For the Year Ended |
||||||||||||||
|
Merchant |
|
Proprietary |
|
Other |
|
Total |
||||||||
Revenue |
$ |
338,968 |
|
|
$ |
37,339 |
|
|
$ |
— |
|
|
$ |
376,307 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Interchange and network fees |
236,170 |
|
|
6,697 |
|
|
— |
|
|
242,867 |
|
||||
Other costs of services |
41,487 |
|
|
2,750 |
|
|
— |
|
|
44,237 |
|
||||
Selling general and administrative |
27,275 |
|
|
17,059 |
|
|
18,526 |
|
|
62,860 |
|
||||
Depreciation and amortization |
12,221 |
|
|
3,790 |
|
|
553 |
|
|
16,564 |
|
||||
Change in fair value of contingent consideration |
(477) |
|
|
3,866 |
|
|
— |
|
|
3,389 |
|
||||
Income (loss) from operations |
$ |
22,292 |
|
|
$ |
3,177 |
|
|
$ |
(19,079) |
|
|
$ |
6,390 |
|
|
|
|
|
|
|
|
|
||||||||
Payment volume |
$ |
12,533,107 |
|
|
$ |
611,351 |
|
|
$ |
— |
|
|
$ |
13,144,458 |
|
________ |
|
1. |
Effective |
($ in thousands, except share and per share amounts) |
|||||||
|
|
|
|
||||
|
2020 |
|
2019 |
||||
|
(unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
15,568 |
|
|
$ |
1,119 |
|
Accounts receivable, net |
17,538 |
|
|
15,335 |
|
||
Prepaid expenses and other current assets |
4,869 |
|
|
4,117 |
|
||
Total current assets |
37,975 |
|
|
20,571 |
|
||
|
|
|
|
||||
Property and equipment, net |
5,339 |
|
|
5,026 |
|
||
Restricted cash |
5,033 |
|
|
2,081 |
|
||
Capitalized software, net |
16,989 |
|
|
15,454 |
|
||
|
187,005 |
|
|
168,284 |
|
||
Intangible assets, net |
109,233 |
|
|
107,419 |
|
||
Deferred tax asset |
36,755 |
|
|
28,138 |
|
||
Other assets |
5,197 |
|
|
2,329 |
|
||
Total assets |
$ |
403,526 |
|
|
$ |
349,302 |
|
|
|
|
|
||||
Liabilities and equity |
|
|
|
||||
Liabilities |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
3,845 |
|
|
3,438 |
|
||
Accrued expenses and other current liabilities |
24,064 |
|
|
21,560 |
|
||
Deferred revenue |
10,986 |
|
|
10,237 |
|
||
Total current liabilities |
38,895 |
|
|
35,235 |
|
||
|
|
|
|
||||
Long-term debt, less current portion and debt issuance costs, net |
90,758 |
|
|
139,298 |
|
||
Long-term tax receivable agreement obligations |
27,565 |
|
|
23,204 |
|
||
Other long-term liabilities |
6,140 |
|
|
9,124 |
|
||
Total liabilities |
163,358 |
|
|
206,861 |
|
||
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
Stockholders' equity |
|
|
|
||||
Preferred stock, par value |
— |
|
|
— |
|
||
Class A common stock, par value |
2 |
|
|
1 |
|
||
Class B common stock, par value |
1 |
|
|
1 |
|
||
Additional paid-in-capital |
157,598 |
|
|
82,380 |
|
||
Accumulated deficit |
(2,023) |
|
|
(2,309) |
|
||
Total stockholders' equity |
155,578 |
|
|
80,073 |
|
||
Non-controlling interest |
84,590 |
|
|
62,368 |
|
||
Total equity |
240,168 |
|
|
142,441 |
|
||
Total liabilities and stockholders' equity |
$ |
403,526 |
|
|
$ |
349,302 |
|
($ in thousands) |
|||||||
|
Year ended |
||||||
|
2020 |
|
2019 |
||||
|
(unaudited) |
|
|
||||
|
|
|
|
||||
Net cash provided by operating activities |
$ |
23,720 |
|
|
$ |
26,597 |
|
Net cash used in investing activities |
$ |
(35,431) |
|
|
$ |
(143,728) |
|
Net cash provided by financing activities |
$ |
29,112 |
|
|
$ |
119,094 |
|
Reconciliation of GAAP to Non-GAAP Financial Measures
The Company believes that non-GAAP financial measures are important to enable investors to understand and evaluate its ongoing operating results. Accordingly,
Although non-GAAP financial measures are often used to measure the Company's operating results and assess its financial performance, they are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation.
(Unaudited) ($ in thousands) |
|||||||||||||||
|
Three months ended |
|
Year ended |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Net (loss) income attributable to |
$ |
(651) |
|
|
$ |
(930) |
|
|
$ |
(419) |
|
|
$ |
(3,045) |
|
Net (loss) income attributable to non-controlling interest |
(1,371) |
|
|
957 |
|
|
(560) |
|
|
3,608 |
|
||||
Non-GAAP Adjustments: |
|
|
|
|
|
|
|
||||||||
(Benefit from) provision for income taxes |
(877) |
|
|
(175) |
|
|
(2,795) |
|
|
(177) |
|
||||
Financing-related expenses(1) |
43 |
|
|
— |
|
|
286 |
|
|
— |
|
||||
Non-cash change in fair value of contingent consideration(2) |
52 |
|
|
1,653 |
|
|
(1,409) |
|
|
3,389 |
|
||||
Equity-based compensation(3) |
3,002 |
|
|
2,002 |
|
|
10,452 |
|
|
6,124 |
|
||||
Acquisition revenue adjustments(4) |
154 |
|
|
1,093 |
|
|
824 |
|
|
4,157 |
|
||||
Acquisition-related expenses(5) |
508 |
|
|
412 |
|
|
1,811 |
|
|
1,859 |
|
||||
Acquisition intangible amortization(6) |
3,624 |
|
|
3,819 |
|
|
14,497 |
|
|
13,570 |
|
||||
Non-cash interest expense(7) |
1,429 |
|
|
102 |
|
|
3,844 |
|
|
873 |
|
||||
Other taxes(8) |
176 |
|
|
8 |
|
|
365 |
|
|
262 |
|
||||
Other expenses related to adjustments of liabilities under Tax Receivable Agreement(9) |
323 |
|
|
— |
|
|
323 |
|
|
— |
|
||||
Non-cash loss on Exchangeable Note repurchases(10) |
1,469 |
|
|
— |
|
|
2,297 |
|
|
— |
|
||||
COVID-19 related expenses(11) |
— |
|
|
— |
|
|
239 |
|
|
— |
|
||||
Non-GAAP pro forma adjusted income before taxes |
7,881 |
|
|
8,941 |
|
|
29,755 |
|
|
30,620 |
|
||||
Pro forma taxes at effective tax rate(12) |
(1,970) |
|
|
(2,235) |
|
|
(7,439) |
|
|
(7,655) |
|
||||
Pro forma adjusted net income(13) |
$ |
5,911 |
|
|
$ |
6,706 |
|
|
$ |
22,316 |
|
|
$ |
22,965 |
|
Cash interest expense, net(14) |
876 |
|
|
1,915 |
|
|
5,082 |
|
|
5,131 |
|
||||
Pro forma taxes at effective tax rate(12) |
1,970 |
|
|
2,235 |
|
|
7,439 |
|
|
7,655 |
|
||||
Depreciation, non-acquired intangible asset amortization and internally developed software amortization(15) |
925 |
|
|
870 |
|
|
3,720 |
|
|
2,994 |
|
||||
Adjusted EBITDA |
$ |
9,682 |
|
|
$ |
11,726 |
|
|
$ |
38,557 |
|
|
$ |
38,745 |
|
________ |
|
1. |
Financing-related expenses includes expenses directly related to certain transactions as part of financing transactions. |
2. |
Non-cash change in fair value of contingent consideration reflects the changes in management’s estimates of future cash consideration to be paid in connection with prior acquisitions from the amount estimated as of the later of the most recent balance sheet date forming the beginning of the income statement period or the original estimates made at the closing of the applicable acquisition. |
3. |
Equity-based compensation expense consisted of |
4. |
Under GAAP, companies must adjust, as necessary, beginning balances of acquired deferred revenue to fair value as part of acquisition accounting as defined by GAAP. Acquisition revenue adjustments remove the effect of these adjustments to acquisition date fair value from acquisitions that have closed as of the date of this earnings release. |
5. |
Acquisition-related expenses are the professional service and related costs directly related to the Company's acquisitions and are not part of its core performance. |
6. |
Acquisition intangible amortization reflects amortization of intangible assets and software acquired through business combinations, acquired customer portfolios, acquired referral agreements and related asset acquisitions. |
7. |
Non-cash interest expense reflects amortization of debt discount and debt issuance costs and any write-offs of debt issuance costs. |
8. |
Other taxes consist of franchise taxes, commercial activity taxes, employer payroll taxes related to stock exercises and other non-income based taxes. Taxes related to salaries are not included. |
9. |
Under our Tax Receivable Agreement we have a liability equal to 85% of certain deferred tax assets resulting from an increase in the tax basis of our investment in |
10. |
Non-cash loss on Exchangeable Note repurchases reflects the loss on retirement of debt the Company recorded during the relevant periods due to the carrying value exceeding the fair value of the repurchased portion of the 1.0% Exchangeable Senior Notes due 2025 (the “Exchangeable Notes”) at the dates of repurchases. |
11. |
COVID-19 related expenses reflects incremental expenses incurred as a result of the COVID-19 pandemic, including employee severance expenses and legal expenses. |
12. |
Pro forma corporate income tax expense is based on Non-GAAP adjusted income before taxes and is calculated using tax rates of 25.0% for 2020 and 2019, based on blended federal and state tax rates, considering the Tax Reform Act for 2018. |
13. |
Pro forma adjusted net income assumes that all net income during the period is available to the holders of the Company’s Class A common stock. |
14. |
Cash interest expense, net represents all interest expense net of interest income recorded on the Company's statement of operations other than non-cash interest expense, which represents amortization of debt discount and debt issuance costs and any write-offs of debt issuance costs. |
15. |
Depreciation, non-acquired intangible asset amortization and internally developed software amortization reflects depreciation on the Company's property, plant and equipment, net, and amortization expense on its internally developed capitalized software. |
(Unaudited) ($ in thousands, except share and per share amounts) |
|||||||||||||||
|
Three months ended |
|
Year ended |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Diluted net loss available to Class A common stock per share |
$ |
(0.06) |
|
|
$ |
(0.07) |
|
|
$ |
(0.03) |
|
|
$ |
(0.29) |
|
Pro forma adjusted diluted earnings per share (non-GAAP)(1) |
$ |
0.20 |
|
|
$ |
0.24 |
|
|
$ |
0.77 |
|
|
$ |
0.83 |
|
Pro forma adjusted net income(2) |
$ |
5,911 |
|
|
$ |
6,706 |
|
|
$ |
22,316 |
|
|
$ |
22,965 |
|
Pro forma weighted average shares of adjusted diluted Class A common stock outstanding(3) |
29,390,270 |
|
|
28,485,235 |
|
|
28,814,308 |
|
|
27,640,495 |
|
__________ |
|
1. |
Pro forma adjusted diluted earnings per share is calculated using pro forma adjusted net income and the pro forma weighted average shares of adjusted diluted Class A common stock outstanding. |
2. |
Pro forma adjusted net income assumes that all net income during the period is available to the holders of the Company's Class A common stock. Further, pro forma adjusted diluted earnings per share assumes that all Common Units in |
3. |
Pro forma weighted average shares of adjusted diluted Class A common stock outstanding include 12,289,914 and 12,596,423 weighted average outstanding shares of Class A common stock issuable upon the exchange of Common Units in |
(Unaudited) ($ in thousands) |
|||||||||||||||
|
Three months ended |
|
Year ended |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Revenue |
$ |
38,272 |
|
|
$ |
108,562 |
|
|
$ |
150,134 |
|
|
$ |
376,307 |
|
Acquisition revenue adjustments(1) |
154 |
|
|
1,093 |
|
|
824 |
|
|
4,157 |
|
||||
Interchange and network fees(2) |
|
|
(69,090) |
|
|
|
|
(242,867) |
|
||||||
Adjusted Net Revenue |
$ |
38,426 |
|
|
$ |
40,565 |
|
|
$ |
150,958 |
|
|
$ |
137,597 |
|
__________ |
|
1. |
Under GAAP, companies must adjust, as necessary, beginning balances of acquired deferred revenue to fair value as part of acquisition accounting as defined by GAAP. Acquisition revenue adjustments remove the effect of these adjustments to acquisition date fair value from acquisitions that have closed as of the date of this earnings release. |
2. |
Effective |
View source version on businesswire.com: https://www.businesswire.com/news/home/20201119006294/en/
Chief Financial Officer
(615) 988-9890
cwhitson@i3verticals.com
Source: