Repay Holdings Corporation · NASDAQ:RPAY
Repay — Q1 2020 Earnings Presentation
17 slides from Repay's earnings presentation, May 2020
Slide 1: REPAY Q120 Earnings Supplement
REPAY Q120 Earnings Supplement May 2020 HIGHLY CONFIDENTIAL – DO NOT DISTRIBUTE
Slide 2: Disclaimer
Disclaimer On July 11, 2019 (the “Closing Date”), Thunder Bridge Acquisition Ltd. (“Thunder Bridge”) and Hawk Parent Holdings LLC (“Hawk Parent”) completed their previously announced business combination under which Thunder Bridge acquired Hawk Parent, upon which Thunder Bridge changed its name to R
Slide 3: Section 1: Financial Update
Section 1: Financial Update
Slide 4: Financial Highlights
Financial Highlights Q1 2020 Card Payment $3.8Bn Volume (+58%) Total Revenue $39.5MM (+71%) Gross Profit(1) $28.7MM (+ 60%) Adj. EBITDA $17.4MM (+ 53%) (Represents Y-o-Y Growth) 1) Gross Profit is defined as Revenue less Cost of Services 3
Slide 5: Financial Update – Q1 2020
Financial Update – Q1 2020 ($MM) Card Payment Volume Gross Profit (1) Adjusted EBITDA $3,849 60% $28.7 53% $17.4 $2,439 $17.9 $11.3 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 % Margin (2) 77% 72% % Margin (2) 49% 44% 1) Gross Profit is defined as Revenue less Cost of Services 2) As a % of Reven
Slide 6: Strong Liquidity Position as of April 30, 2020
Strong Liquidity Position as of April 30, 2020 Preliminary Financial Metrics as of April 30, 2020 Liquidity Leverage Cash on Hand $34MM Total Debt $268MM Revolver Capacity $30MM Cash on Hand $34MM DDTL Capacity $46MM Net Debt $234MM Total Liquidity $110MM PF Net Leverage(1) 3.6x Focused on Maintaini
Slide 7: Section 2: Strategy & Outlook
Section 2: Strategy & Outlook
Slide 8: Executing on Growth Plan
Executing on Growth Plan CONTINUE TO ADDRESS LARGE, UNDERSERVED LOAN REPAYMENT VERTICALS, SPECIFICALLY AUTO, AND INCREASE DEBIT PENETRATION WITH EXISTING CUSTOMERS ADDING NEW CUSTOMERS VIA DIRECT SALESFORCE ACROSS ALL VERTICALS. REPAY SELECTED AS A PAYMENT PROCESSING PROVIDER FOR MERCEDES-BENZ FINAN
Slide 9: Multiple Levers to Continue to Drive Growth
Multiple Levers to Continue to Drive Growth Repay’s Leading Platform & Attractive Market Opportunity Position It To Build On Its Record Of Robust Growth & Profitability Strategic M&A Majority of growth Future Market derived from further Expansion penetration of existing Opportunities client base Ope
Slide 10: FY 2020 Outlook
FY 2020 Outlook Scenario 1: Q3 Recovery Scenario 2: Q4 Recovery Scenario 3: Early 2021 Recovery • Well coordinated public health • Consumer demand and • The economic picture remains Macro Economic measures cause consumer employment gradually improve cloudy through the end of the Backdrop demand and
Slide 11: Section 3: Appendix
Section 3: Appendix
Slide 12: Q1 2020 Financial Update
Q1 2020 Financial Update Three Months Ended March 31, Change ($MM) 2020 2019 Amount % Card Payment Volume $3,848.9 $2,439.3 $1,409.5 58% Total Revenue $39.5 $23.0 $16.4 71% Cost of Services 10.8 5.1 5.7 110% (1) Gross Profit $28.7 $17.9 $10.8 60% SG&A(2) 18.7 8.7 10.0 115% EBITDA $10.0 $9.2 $0.8 9%
Slide 13: Adjusted EBITDA Reconciliation – Historical
Adjusted EBITDA Reconciliation – Historical Adjusted EBITDA Reconciliation ($MM) Q1 2020 Q1 2019 Net Income (Loss) $1.9 $4.9 Interest Expense 3.5 1.4 Depreciation and Amortization 5.7 2.9 (1) Income Tax Expense (Benefit) (1.1) - (1) EBITDA $10.0 $9.2 (2) Non-cash Change in FV of Tax Receivable Liabi
Slide 14: Adjusted Net Income Reconciliation – Historical
Adjusted Net Income Reconciliation – Historical Adjusted Net Income Reconciliation ($MM) Q1 2020 Q1 2019 Net Income (Loss) $1.9 $4.9 Amortization of Acquisition-Related Intangibles (1) 4.1 2.0 Other Adjustments Non-cash Change in FV of Tax Receivable Liability (2) 0.5 - (3) Share-based Compensation
Slide 15: Depreciation and Amortization Detail – Historical
Depreciation and Amortization Detail – Historical Depreciation and Amortization ($MM) Q1 2020 Q1 2019 Acquisition-Related Intangibles $4.1 $2.0 Software 1.4 0.8 Reseller Buyouts 0.0 0.0 Amortization 5.5 2.8 Depreciation 0.2 0.1 Total Depreciation & Amortization $5.7 $2.9 Note: Adjusted Net Income ex
Slide 16: Share Count
Share Count Shares 1 Number Notes 2 Shares held by Public 19,088,328 ▪ Shares previously held by SPAC public shareholders, together with shares issued related to warrant exercises Founder Shares 4,115,000 ▪ Not subject to forfeiture; not in escrow Shares Underlying the Post-Merger Repay 29,505,623 ▪
Slide 17: REPAY – Realtime Electronic Payments
R EPA Realtime Electronic Payments