Press release
Priority Technology Holdings, Inc. Announces Third Quarter 2020 Financial Results
Strong Financial Performance and Continued Growth ALPHARETTA, Ga.--(BUSINESS WIRE)-- Priority Technology Holdings, Inc. (NASDAQ: PRTH) (“Priority” or the
About this update from Priority Technology Holdings, Inc.
[{"type":"text","content":"\nStrong Financial Performance and Continued Growth\n\n 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 third quarter financial results including strong year-over-year revenue growth of 16.1% and deleveraging during the quarter of $124 million.\n\nHighlights of Consolidated Results\n\nThird Quarter 2020, Compared with Third Quarter 2019\n\nFinancial highlights of the third quarter of 2020 compared with the third quarter of 2019, are as follows:\n\n\nRevenue of $109.0 million increased 16.1% from $93.9 million.\n\n\nGross profit (a non-GAAP measure1) of $34.0 million increased 12.7% from $30.2 million.\n\n\nGross profit margin (a non-GAAP measure1) of 31.2% decreased 94 basis points from 32.1%.\n\n\nIncome from operations of $7.0 million increased 158.4% from $2.7 million.\n\n\nPre-tax gain from the sale of the RentPayment business, net of non-controlling interests (“NCIs”), was $62.1 million.\n\n\nNet income of $40.4 million increased $46.2 million from a loss of $5.8 million.\n\n\nAdjusted EBITDA (a non-GAAP measure1) of $19.6 million increased 28.1% from $15.3 million.\n\n\nNet debt (total debt less unrestricted cash) of $370.4 million at September 30, 2020 – a decrease of $123.6 million from $494.0 million at June 30, 2020.\n\n\nTotal net leverage ratio of 6.16x at September 30, 2020 decreased from 7.46x at June 30, 20202.\n\n\n(1) See “Non-GAAP Financial Measures” and the reconciliations of Gross Profit, Gross Profit Margin, and Adjusted EBITDA to their most comparable GAAP measures provided below for additional information.\n(2) Calculation of Total Net Leverage Ratio is provided in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 2 of our Form 10-Q for the quarter ended September 30, 2020.\n\n“Our strong results this quarter demonstrate continued resilience during this pandemic, and by all key metrics, validate the differentiation of our platform,” said Tom Priore, Chairman and CEO. “The execution of the transaction with MRI Software this quarter not only reduced debt by over $100 million, it will improve annual cashflow and established a multi-year processing partnership with a g...