Priority Technology Holdings, Inc. · NASDAQ:PRTH
Priority Technology — Q3 2021 Earnings Presentation
15 slides from Priority Technology's earnings presentation, Nov 15, 2021
Slide 1: Supplemental Slides for the Third Quarter 2021 Earnings Call
Priority Technology Holdings, Inc. Supplemental Slides for the Third Quarter 2021 Earnings Call November 15, 2021
Slide 2: Forward-Looking Statement
Forward-Looking Statement Important Notice Regarding Forward-Looking Statements and Non-GAAP Measures This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about
Slide 3: Third Quarter Highlights
Third Quarter Highlights • Revenue of $132.5 million increased 21.6% from $109.0 million in 2020 ➢ Q3 2021 includes $3.0M from Finxera business acquired on 9/17/21 ➢ Q3 2020 includes $3.9M from RentPayment business disposed on 9/22/20 • Gross profit of $39.7 million increased 16.8% from $34.0 millio
Slide 4: Revenue
Revenue Third Quarter 2021 Revenue of $132.5 million increased 21.6% from $109.0 million in 2020 • Consumer Payments increased 24.9% to $124.0 million from $99.3 million • Commercial Payments decreased 16.3% to $4.2 million from $5.0 million ➢ CPX increased 3.9% to $1.6 million from $1.5 million ➢ M
Slide 5: Key Consumer Payments Revenue Growth Contributors
Key Consumer Payments Revenue Growth Contributors Strong Growth in Base partially offset by risk paring in SMA • Revenue of $124.0 million increased $24.7 million, or 24.9%, from $99.3 million ➢ Base Revenue of $120.2 million increased $30.0 million, or 33%, from $90.2 million ➢ SMA Revenue of $3.8
Slide 6: Consumer Payments Merchant Bankcard Volume
Consumer Payments Merchant Bankcard Volume Third Quarter 2021 Merchant Bankcard Volume of $13.8 billion increased 23% from $11.2 billion • Bankcard Volume of $13.8 billion increased $2.6 billion, or 23.0%, from $11.2 billion ➢ Base of $13.7 billion increased $2.6 billion, or 23.4%, from $11.1 billio
Slide 7: New Merchant Boards
New Merchant Boards New Merchant Boards Remain Strong • New Merchant Boards remain strong ➢ Historically, monthly new merchant boards average in the range of 4,300 - 5,000 ➢ Monthly Third Quarter average of 4,473 in 2021 compared to 4,638 in 2020 • SMA merchant count at the end of Third Quarter 2021
Slide 8: Gross Profit
Gross Profit Third Quarter 2021 Gross Profit of $39.7 million increased 16.8% from $34.0 million in 2020 • Consumer Payments increased 24.1% to $33.9 million from $27.4 million • Commercial Payments decreased 12.7% to $2.4 million from $2.8 million ➢ CPX decreased 12.4% to $1.0 million from $1.1 mil
Slide 9: Operating Expenses
Operating Expenses Third Quarter 2021 Operating Expense of $31.5 million increased $4.6 million from $26.9 million in 2020 • Salaries and benefits of $11.9 million increased $1.9 million from $10.0 million in 2020 ➢ Includes Stock Based Compensation of $0.9 million in 2021 and $0.6 million in 2020 •
Slide 10: Operating Income
Operating Income Third Quarter 2021 Operating Income of $8.3 million increased 17.2% from $7.0 million in 2020 • Consumer Payments increased $3.6 million or 32.1% to $14.7 million from $11.1 million • Commercial Payments decreased $0.2 million to $0.0 million from $0.2 million • Integrated Partners
Slide 11: Interest Expense
Interest Expense Third Quarter 2021 Interest expense of $8.2 million decreased by $5.3 million from $13.5 million in 2020 (dollars in millions) Third Quarter 2021 2020 Cash Interest & Fees $ 6.1 $ 9.6 PIK Interest - 3.2 Amortization of OID & DIC 2.1 0.7 $ 8.2 $ 13.5 Components of Third Quarter Inter
Slide 12: Other Income and Expense
Other Income and Expense Components of Third Quarter 2021 and 2020 Other Income (Expense) • Other income, net was comprised of: Third Quarter 2021 2020 (dollars in Millions) Other Income (Expense): Debt extinguishment and modification costs $ - $ (1.5) 1 Gain RentPayment Sale - 107.2 Other income, n
Slide 13: Outstanding Debt Walk
Outstanding Debt Walk • New Borrowings related to Acquisition financing. • Debt net of unamortized discount and deferred financing costs: ➢ $626.2M at Q3 2021 ($6.2M Current ; $620.0M Long-Term) ➢ $321.2M at Q2 2021 ($3.0M Current ; $318.2M Long-Term) 12
Slide 14: Common Stock Outstanding Walk
Common Stock Outstanding Walk (shares in thousands) • Share Issuance related to Acquisition financing. • Common Stock outstanding does not include unvested Restricted Stock units, unexercised Warrants, and unexercised employee stock options. 13
Slide 15: Preferred Stock Walk
Preferred Stock Walk (dollars in millions) • April Issuance refinanced subordinated debt and provided cash for Q2 tuck-in acquisitions • September Issuance related to Acquisition financing • Preferred Stock Net of Deferred Placement costs: ➢ $205.3M at September 2021 ➢ $133.8M at June 2021 14
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