Press release
Priority Technology Holdings, Inc. Announces First Quarter 2020 Financial Results
ALPHARETTA, Ga.--(BUSINESS WIRE)-- Priority Technology Holdings, Inc. (NASDAQ: PRTH) (“Priority” or the “Company”), a leading provider of merchant acquiring,
About this update from Priority Technology Holdings, Inc.
[{"type":"text","content":" ALPHARETTA, Ga.--(BUSINESS WIRE)--\nPriority Technology Holdings, Inc. (NASDAQ: PRTH) (“Priority” or the “Company”), a leading provider of merchant acquiring, integrated payment software and commercial payment solutions, today announced its first quarter 2020 financial results.\n\n\nHighlights of Consolidated Results\n\n\nFirst Quarter 2020, Compared with First Quarter 2019\n\n\n\nRevenues of $96.9 million increased 10.6% from $87.6 million.\n\n\nGross profit of $30.6 million increased 11.0% from $27.5 million.\n\n\nGross profit margin of 31.5% increased 11 basis points from 31.4%.\n\n\nIncome from operations of $3.6 million increased $2.6 million from $1.0 million.\n\n\nNet loss of $5.9 million decreased $0.6 million from $6.4 million.\n\n\nAdjusted EBITDA of $15.8 million increased 26.8% from $12.5 million. The Company’s non-GAAP adjusted EBITDA measure is net loss before interest, taxes, depreciation and amortization (EBITDA), further adjusted for non-cash stock-based compensation and certain expenses considered non-recurring.\n\n\nMerchant bankcard processing dollar volume of $10.6 billion increased 2.6% from $10.3 billion.\n\n\n\n\"Despite the coronavirus outbreak, we experienced excellent growth in the first quarter of 2020, reflecting the continuing momentum and fundamental strength of our business segments,\" said Tom Priore, Executive Chairman and CEO of Priority. \"Starting in mid-March, COVID-19 began to negatively impact the Company’s daily consumer payment processing volumes as the pandemic spread across the United States and restrictive shelter-in-place requirements were instituted. However, these headwinds were offset by revenue growth in our defensively positioned and counter-cyclical integrated partner payment solutions for the rent, hospitality, healthcare and B2B markets. As a result, we were able to slightly outperform our expectations for the first quarter.”\n\n\nNon-GAAP Adjusted EBITDA\n\n\nSelling, general and administrative expenses included certain operating expenses that the Company considers non-recurring in nature. These expenses totaled $1.4 million and $1.2 million in the first quarters of 2020 and 2019, respectively. In 2020, these expenses included $0.9 million associated with transition services from YapStone, Inc. related to the integration of the March 2019 asset acquisition, and $0.5 million...