i3 Verticals Reports Second Quarter 2020 Financial Results
Highlights for the fiscal second quarter and six months ended
-
Second quarter revenue was
$39.2 million , a decrease of 54% over the prior year's second quarter. Revenue for the six months endedMarch 31, 2020 , was$80.3 million , a decrease of 53% over the prior year's first six months. Results for 2020 reflect the adoption of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers.1 -
Second quarter adjusted net revenue2, which excludes acquisition revenue adjustments and interchange and network fees, was
$39.3 million , an increase of 25% over the prior year's second quarter. Adjusted net revenue2 for the six months endedMarch 31, 2020 , was$80.9 million , an increase of 33% over the prior year's first six months.
-
Second quarter net income was
$1.9 million , compared to a net loss of$1.2 million in the prior year's second quarter. Net income for the six months endedMarch 31, 2020 , was$3.9 million , an increase of 241.3% over the prior year's first six months. -
Second quarter adjusted EBITDA2 was
$10.0 million , an increase of 14% over the prior year's second quarter. Adjusted EBITDA2 for the six months endedMarch 31, 2020 , was$21.8 million , an increase of 26% over the prior year's first six months. -
Second quarter adjusted EBITDA2 as a percentage of adjusted net revenue2 was 25.3%, compared to 27.8% in the prior year's second quarter. For the six months ended
March 31, 2020 , adjusted EBITDA2 as a percentage of adjusted net revenue2 was 27.0%, compared to 28.4% for the prior year's first six months.
-
Second quarter diluted net income per share available to Class A common stock was
$0.05 , compared to diluted net loss per share available to Class A common stock of$0.12 in the prior year's second quarter. For the six months endedMarch 31, 2020 , diluted net income per share available to Class A common stock was$0.04 , compared to diluted net loss per share available to Class A common stock of$0.10 for the prior year's first six months. -
For the three and six months ended
March 31, 2020 , pro forma adjusted diluted earnings per share1, which gives pro forma effect to the Company's going forward effective tax rate, was$0.20 and$0.44 , respectively, compared to$0.20 and$0.40 for the three and six months endedMarch 31, 2019 , respectively. -
Integrated payments3 were 55% of payment volume for both the three and six months ended
March 31, 2020 . -
At
March 31, 2020 , the ratio of consolidated interest coverage ratio was 6.11x, total leverage ratio was 3.41x and consolidated senior leverage ratio was 0.38x. These ratios are defined in the Company's Senior Secured Credit Facility.1.
Effective
October 1, 2019 , our revenues are presented net of interchange and network fees in accordance with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. This change in presentation affected our reported revenues and operating expenses for the three and six months endedMarch 31, 2020 , by the same amount and had no effect on our income from operations.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.
“Due to the uncertainty of the economic environment, we have paused acquisition activity until there is greater clarity on the impact of the COVID-19 pandemic. We have several deals currently on hold. Despite the market downturn, our acquisition pipeline has continued to build. We believe our strong balance sheet, recent exchangeable notes offering and capacity under our senior credit facility position us well for acquisition activity, even in the current economic environment.”
Impact of COVID-19
Daily continued, “Our first priority is the health and safety of our employees and their families, so we implemented work-from-home policies for our employees in mid-March and limited all employee travel. Throughout this period, I have been inspired by the creativity, dedication and commitment of our team, which has allowed us to quickly adapt to the work-from-home structure and continue to service our customers in a prompt and efficient manner.
“We expect that the continuation of the COVID-19 pandemic will adversely impact our fiscal third quarter performance. The various strategies enacted by federal, state and local governments to combat the spread of COVID-19 have obviously slowed the pace of commerce. This has caused a decrease in our payment volume and adversely impacted our revenues. In particular, our Education vertical experienced a significant decline in payment volumes as K-12 schools closed for the remainder of the current school year. Our restaurant and hotel customers also experienced a significant decline in payment volume. Our Public Sector, B2B and other vertical customers experienced less of an impact in payment volume. We benefited from our strategy of diversifying our business across multiple verticals to reduce sector-specific downturns and safeguard against effects on our payment volume from any one market sector. This strategy should also serve us well in a recovery.
“We also expect the long-term impact of COVID-19 to lead to further digitization of payments, particularly within the Public Sector and Education verticals, which have been slower to adopt electronic payments. We believe that the Public Sector and Education markets will have increased budget pressures and their constituents will demand greater access to online services and payments. We believe that our SaaS solutions are designed to address many of these issues and that the ability of our nimble salesforce in each vertical to sell technology-enabled payments will help us drive growth as the economy begins to rebound. On the other side of this crisis, we believe that we are well-positioned to capture market share,” concluded Daily.
2020 Outlook
The COVID-19 pandemic has created significant uncertainty in the economy and the extent to which COVID-19 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 through 13 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 regarding guidance and 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.
(Unaudited) ($ in thousands, except share and per share amounts) |
|||||||||||||||||||
|
Three months ended |
|
Six months ended |
||||||||||||||||
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
39,178 |
|
|
$ |
85,394 |
|
|
(54)% |
|
$ |
80,289 |
|
|
$ |
170,262 |
|
|
(53)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interchange and network fees(1) |
|
|
54,685 |
|
|
n/m |
|
|
|
110,514 |
|
|
n/m |
||||||
Other costs of services |
11,955 |
|
|
10,193 |
|
|
17% |
|
24,873 |
|
|
19,983 |
|
|
24% |
||||
Selling general and administrative |
20,786 |
|
|
14,319 |
|
|
45% |
|
40,073 |
|
|
26,835 |
|
|
49% |
||||
Depreciation and amortization |
4,538 |
|
|
3,898 |
|
|
16% |
|
9,193 |
|
|
7,450 |
|
|
23% |
||||
Change in fair value of contingent consideration |
(142) |
|
|
2,502 |
|
|
n/m |
|
12 |
|
|
2,153 |
|
|
(99)% |
||||
Total operating expenses |
37,137 |
|
|
85,597 |
|
|
(57)% |
|
74,151 |
|
|
166,935 |
|
|
(56)% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
2,041 |
|
|
(203) |
|
|
n/m |
|
6,138 |
|
|
3,327 |
|
|
84% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
2,184 |
|
|
1,155 |
|
|
89% |
|
4,198 |
|
|
2,069 |
|
|
103% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(Loss) income before income taxes |
(143) |
|
|
(1,358) |
|
|
(89)% |
|
1,940 |
|
|
1,258 |
|
|
54% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(Benefit from) provision for income taxes |
(2,062) |
|
|
(136) |
|
|
1,416% |
|
(1,913) |
|
|
129 |
|
|
n/m |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
1,919 |
|
|
(1,222) |
|
|
n/m |
|
3,853 |
|
|
1,129 |
|
|
241% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to non-controlling interest |
1,182 |
|
|
(120) |
|
|
n/m |
|
3,265 |
|
|
2,053 |
|
|
59% |
||||
Net income (loss) attributable to |
$ |
737 |
|
|
$ |
(1,102) |
|
|
n/m |
|
$ |
588 |
|
|
$ |
(924) |
|
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share available to Class A common stock: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.05 |
|
|
$ |
(0.12) |
|
|
|
|
$ |
0.04 |
|
|
$ |
(0.10) |
|
|
|
Diluted |
$ |
0.05 |
|
|
$ |
(0.12) |
|
|
|
|
$ |
0.04 |
|
|
$ |
(0.10) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares of Class A common stock outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
14,456,970 |
|
|
8,887,050 |
|
|
|
|
14,344,768 |
|
|
8,849,431 |
|
|
|
||||
Diluted |
16,106,757 |
|
|
8,887,050 |
|
|
|
|
15,778,077 |
|
|
8,849,431 |
|
|
|
n/m = not meaningful
__________________________ |
|
1. |
Effective |
(Unaudited) ($ in thousands, except per share amounts) |
|||||||||||||||||||
|
Three months ended |
|
Six months ended |
||||||||||||||||
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net revenue (non-GAAP) |
$ |
39,311 |
|
|
$ |
31,448 |
|
|
25% |
|
$ |
80,935 |
|
|
$ |
61,018 |
|
|
33% |
Adjusted EBITDA (non-GAAP) |
9,965 |
|
|
8,747 |
|
|
14% |
|
21,824 |
|
|
17,325 |
|
|
26% |
||||
Pro forma adjusted diluted earnings per share (non-GAAP) |
$ |
0.20 |
|
|
$ |
0.20 |
|
|
—% |
|
$ |
0.44 |
|
|
$ |
0.40 |
|
|
10% |
(Unaudited) ($ in thousands)
|
|||||||||||||||
|
Three months ended |
|
Six months ended |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Payment volume(1) |
$ |
3,577,735 |
|
|
$ |
2,942,808 |
|
|
$ |
7,416,853 |
|
|
$ |
5,886,657 |
|
__________________________ | |
1. |
Payment volume is the net dollar value of both 1) |
(Unaudited) ($ in thousands) |
|||||||||||||||
|
For the Three Months Ended |
||||||||||||||
|
Merchant Services |
|
Proprietary Software and Payments |
|
Other |
|
Total |
||||||||
Revenue |
$ |
25,018 |
|
|
$ |
14,691 |
|
|
$ |
(531) |
|
|
$ |
39,178 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Other costs of services |
11,297 |
|
|
1,188 |
|
|
(530) |
|
|
11,955 |
|
||||
Selling general and administrative |
6,469 |
|
|
7,717 |
|
|
6,600 |
|
|
20,786 |
|
||||
Depreciation and amortization |
2,861 |
|
|
1,498 |
|
|
179 |
|
|
4,538 |
|
||||
Change in fair value of contingent consideration |
(400) |
|
|
258 |
|
|
— |
|
|
(142) |
|
||||
Income (loss) from operations |
$ |
4,791 |
|
|
$ |
4,030 |
|
|
$ |
(6,780) |
|
|
$ |
2,041 |
|
|
|
|
|
|
|
|
|
||||||||
Payment volume |
$ |
3,393,710 |
|
|
$ |
184,025 |
|
|
$ |
— |
|
|
$ |
3,577,735 |
|
|
For the Six Months Ended |
||||||||||||||
|
Merchant Services |
|
Proprietary Software and Payments |
|
Other |
|
Total |
||||||||
Revenue |
$ |
52,483 |
|
|
$ |
28,747 |
|
|
$ |
(941) |
|
|
$ |
80,289 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Other costs of services |
23,410 |
|
|
2,403 |
|
|
(940) |
|
|
24,873 |
|
||||
Selling general and administrative |
12,791 |
|
|
15,653 |
|
|
11,629 |
|
|
40,073 |
|
||||
Depreciation and amortization |
5,808 |
|
|
3,037 |
|
|
348 |
|
|
9,193 |
|
||||
Change in fair value of contingent consideration |
(1,606) |
|
|
1,618 |
|
|
— |
|
|
12 |
|
||||
Income (loss) from operations |
$ |
12,080 |
|
|
$ |
6,036 |
|
|
$ |
(11,978) |
|
|
$ |
6,138 |
|
|
|
|
|
|
|
|
|
||||||||
Payment volume |
$ |
7,028,766 |
|
|
$ |
388,087 |
|
|
$ |
— |
|
|
$ |
7,416,853 |
|
|
For the Three Months Ended |
||||||||||||||
|
Merchant Services |
|
Proprietary Software and Payments |
|
Other |
|
Total |
||||||||
Revenue |
$ |
76,875 |
|
|
$ |
8,519 |
|
|
$ |
— |
|
|
$ |
85,394 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Interchange and network fees |
53,121 |
|
|
1,564 |
|
|
— |
|
|
54,685 |
|
||||
Other costs of services |
9,725 |
|
|
468 |
|
|
— |
|
|
10,193 |
|
||||
Selling general and administrative |
6,226 |
|
|
3,675 |
|
|
4,418 |
|
|
14,319 |
|
||||
Depreciation and amortization |
2,917 |
|
|
842 |
|
|
139 |
|
|
3,898 |
|
||||
Change in fair value of contingent consideration |
(390) |
|
|
2,892 |
|
|
— |
|
|
2,502 |
|
||||
Income (loss) from operations |
$ |
5,276 |
|
|
$ |
(922) |
|
|
$ |
(4,557) |
|
|
$ |
(203) |
|
|
|
|
|
|
|
|
|
||||||||
Payment volume |
$ |
2,794,120 |
|
|
$ |
148,688 |
|
|
$ |
— |
|
|
$ |
2,942,808 |
|
|
For the Six Months Ended |
||||||||||||||
|
Merchant Services |
|
Proprietary Software and Payments |
|
Other |
|
Total |
||||||||
Revenue |
$ |
154,577 |
|
|
$ |
15,685 |
|
|
$ |
— |
|
|
$ |
170,262 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Interchange and network fees |
107,485 |
|
|
3,029 |
|
|
— |
|
|
110,514 |
|
||||
Other costs of services |
19,121 |
|
|
862 |
|
|
— |
|
|
19,983 |
|
||||
Selling general and administrative |
12,317 |
|
|
6,662 |
|
|
7,856 |
|
|
26,835 |
|
||||
Depreciation and amortization |
5,699 |
|
|
1,503 |
|
|
248 |
|
|
7,450 |
|
||||
Change in fair value of contingent consideration |
(709) |
|
|
2,862 |
|
|
— |
|
|
2,153 |
|
||||
Income (loss) from operations |
$ |
10,664 |
|
|
$ |
767 |
|
|
$ |
(8,104) |
|
|
$ |
3,327 |
|
|
|
|
|
|
|
|
|
||||||||
Payment volume |
$ |
5,598,259 |
|
|
$ |
288,398 |
|
|
$ |
— |
|
|
$ |
5,886,657 |
|
($ in thousands, except share and per share amounts) |
|||||||
|
|
|
|
||||
|
2020 |
|
2019 |
||||
|
(unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
1,591 |
|
|
$ |
1,119 |
|
Accounts receivable, net |
13,515 |
|
|
15,335 |
|
||
Prepaid expenses and other current assets |
4,662 |
|
|
4,117 |
|
||
Total current assets |
19,768 |
|
|
20,571 |
|
||
|
|
|
|
||||
Property and equipment, net |
5,035 |
|
|
5,026 |
|
||
Restricted cash |
1,581 |
|
|
2,081 |
|
||
Capitalized software, net |
14,472 |
|
|
15,454 |
|
||
|
167,054 |
|
|
168,284 |
|
||
Intangible assets, net |
102,837 |
|
|
107,419 |
|
||
Deferred tax asset |
35,334 |
|
|
28,138 |
|
||
Other assets |
5,101 |
|
|
2,329 |
|
||
Total assets |
$ |
351,182 |
|
|
$ |
349,302 |
|
|
|
|
|
||||
Liabilities and equity |
|
|
|
||||
Liabilities |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
3,520 |
|
|
$ |
3,438 |
|
Accrued expenses and other current liabilities |
17,884 |
|
|
21,560 |
|
||
Deferred revenue |
9,613 |
|
|
10,237 |
|
||
Total current liabilities |
31,017 |
|
|
35,235 |
|
||
|
|
|
|
||||
Long-term debt, less current portion and debt issuance costs, net |
123,226 |
|
|
139,298 |
|
||
Long-term tax receivable agreement obligations |
25,773 |
|
|
23,204 |
|
||
Other long-term liabilities |
4,385 |
|
|
9,124 |
|
||
Total liabilities |
184,401 |
|
|
206,861 |
|
||
|
|
|
|
||||
Commitments and contingencies (see Note 9) |
|
|
|
||||
Stockholders' equity |
|
|
|
||||
Preferred stock, par value |
— |
|
|
— |
|
||
Class A common stock, par value |
1 |
|
|
1 |
|
||
Class B common stock, par value |
1 |
|
|
1 |
|
||
Additional paid-in-capital |
104,122 |
|
|
82,380 |
|
||
Accumulated (deficit) earnings |
(1,016) |
|
|
(2,309) |
|
||
Total stockholders' equity |
103,108 |
|
|
80,073 |
|
||
Non-controlling interest |
63,673 |
|
|
62,368 |
|
||
Total equity |
166,781 |
|
|
142,441 |
|
||
Total liabilities and stockholders' equity |
$ |
351,182 |
|
|
$ |
349,302 |
|
(Unaudited) ($ in thousands) |
|||||||
|
Six months ended |
||||||
|
2020 |
|
2019 |
||||
|
|
|
|
||||
Net cash provided by operating activities |
$ |
8,847 |
|
|
$ |
11,424 |
|
Net cash used in investing activities |
$ |
(3,881) |
|
|
$ |
(44,945) |
|
Net cash (used in) provided by financing activities |
$ |
(4,994) |
|
|
$ |
34,343 |
|
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 |
|
Six months ended |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Net income (loss) attributable to |
$ |
737 |
|
|
$ |
(1,102) |
|
|
$ |
588 |
|
|
$ |
(924) |
|
Net income (loss) attributable to non-controlling interest |
1,182 |
|
|
(120) |
|
|
3,265 |
|
|
2,053 |
|
||||
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Provision for (benefit from) income taxes |
(2,062) |
|
|
(136) |
|
|
(1,913) |
|
|
129 |
|
||||
Offering-related expenses(1) |
221 |
|
|
— |
|
|
221 |
|
|
— |
|
||||
Non-cash change in fair value of contingent consideration(2) |
(142) |
|
|
2,502 |
|
|
12 |
|
|
2,153 |
|
||||
Equity-based compensation(3) |
2,510 |
|
|
1,363 |
|
|
4,634 |
|
|
2,314 |
|
||||
Acquisition revenue adjustments(4) |
133 |
|
|
739 |
|
|
646 |
|
|
1,270 |
|
||||
Acquisition-related expenses(5) |
583 |
|
|
261 |
|
|
845 |
|
|
621 |
|
||||
Acquisition intangible amortization(6) |
3,600 |
|
|
3,205 |
|
|
7,321 |
|
|
6,110 |
|
||||
Non-cash interest expense(7) |
879 |
|
|
232 |
|
|
979 |
|
|
465 |
|
||||
Other taxes(8) |
81 |
|
|
187 |
|
|
135 |
|
|
190 |
|
||||
Non-GAAP pro forma adjusted income before taxes |
7,722 |
|
|
7,131 |
|
|
16,733 |
|
|
14,381 |
|
||||
Pro forma taxes at effective tax rate(9) |
(1,930) |
|
|
(1,783) |
|
|
(4,183) |
|
|
(3,595) |
|
||||
Pro forma adjusted net income(10) |
$ |
5,792 |
|
|
$ |
5,348 |
|
|
$ |
12,550 |
|
|
$ |
10,786 |
|
Cash interest expense, net(11) |
1,305 |
|
|
923 |
|
|
3,219 |
|
|
1,604 |
|
||||
Pro forma taxes at effective tax rate(9) |
1,930 |
|
|
1,783 |
|
|
4,183 |
|
|
3,595 |
|
||||
Depreciation, non-acquired intangible asset amortization and internally developed software amortization(12) |
938 |
|
|
693 |
|
|
1,872 |
|
|
1,340 |
|
||||
Adjusted EBITDA |
$ |
9,965 |
|
|
$ |
8,747 |
|
|
$ |
21,824 |
|
|
$ |
17,325 |
|
________ |
|
1. |
Offering-related expenses includes expenses directly related to certain transactions as part of an offering. |
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 and other non-income based taxes. Taxes related to salaries or employment are not included. |
9. |
Pro forma corporate income tax expense is based on Non-GAAP adjusted income before taxes and is calculated using a tax rate of 25.0% for both 2020 and 2019, based on blended federal and state tax rates. |
10. |
Pro forma adjusted net income assumes that all net income during that period was available to the holders of the Company's Class A common stock. |
11. |
Cash interest expense, net represents all interest expense 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. |
12. |
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 |
|
Six months ended |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Diluted net loss available to Class A common stock per share |
$ |
0.05 |
|
|
(0.12) |
|
|
$ |
0.04 |
|
|
(0.10) |
|
||
Pro forma adjusted diluted earnings per share (non-GAAP)(1) |
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.44 |
|
|
$ |
0.40 |
|
Pro forma adjusted net income(2) |
$ |
5,792 |
|
|
$ |
5,348 |
|
|
$ |
12,550 |
|
|
$ |
10,786 |
|
Pro forma weighted average shares of adjusted diluted Class A common stock outstanding(3) |
28,876,325 |
|
|
27,289,888 |
|
|
28,624,095 |
|
|
27,124,176 |
|
__________ | |
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 12,769,568 and 17,112,164 outstanding shares of Class A common stock issuable upon the exchange of Common Units in |
(Unaudited) ($ in thousands) |
|||||||||||||||
|
Three months ended |
|
Six months ended |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Revenue |
$ |
39,178 |
|
|
$ |
85,394 |
|
|
$ |
80,289 |
|
|
$ |
170,262 |
|
Acquisition revenue adjustments(1) |
133 |
|
|
739 |
|
|
646 |
|
|
1,270 |
|
||||
Interchange and network fees(2) |
|
|
(54,685) |
|
|
|
|
(110,514) |
|
||||||
Adjusted Net Revenue |
$ |
39,311 |
|
|
$ |
31,448 |
|
|
$ |
80,935 |
|
|
$ |
61,018 |
|
__________ | |
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/20200507006132/en/
Chief Financial Officer
(615) 988-9890
cwhitson@i3verticals.com
Source: