Press release
Priority Technology Holdings, Inc. Announces Second 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 second quarter 2020 financial results.\n\n\nHighlights of Consolidated Results\n\n\nSecond Quarter 2020, Compared with Second Quarter 2019\n\n\nThe second quarter of 2020 began with nationwide shelter in place orders due to the COVID-19 pandemic. Priority’s April results were reflective of this with merchant bankcard processing dollar volumes down 31.8% year over year, and a corresponding, albeit more modest, revenue decline of 11.7%. As we quickly adapted to the new market dynamic, and the strength of our product offering and counter-cyclical assets accelerated, May and June results posted strong improvements. In May, merchant bankcard processing dollar volumes declined 15.8% year over year, however, revenue increased by 1.7%. In June, merchant bankcard processing dollar volumes showed a modest decline of 1.9% year over year, with a revenue increase of 10.8%.\n\n\nFor the full quarter, increases in ecommerce volume mix and product-driven vertical segment growth resulted in a modest revenue increase in spite of the total processing volume declines. This revenue stability, coupled with the implementation of thoughtful expense management strategies, contributed to year over year adjusted EBITDA growth in each of April, May and June, with 11.6% growth for the full quarter. Monthly adjusted EBITDA in the second quarter of 2020 was $4.6 million in April, $5.9 million in May, and $6.2 million in June. The Company’s non-GAAP adjusted EBITDA measure is net loss before interest, taxes, depreciation and amortization, further adjusted for non-cash stock-based compensation and certain expenses considered non-recurring. See “Non-GAAP Adjusted EBITDA” and “Non-GAAP Financial Measures” for additional information and the reconciliation of adjusted EBITDA to its most comparable GAAP measure provided below.\n\n\nHighlights of the second quarter of 2020, compared with the second quarter of 2019 are as follows (any differences are due to rounding):\n\n\n\nRevenue of $92.4 million increased 0.2% from $92.1 million.\n\n\nGross profit of $30.0 million decreased 0.6% from $30.1 million.\n\n\nGross profit margin of ...