Slide 1: Supplemental Slides for the Second Quarter 2021 Earnings Call
Priority Technology Holdings, Inc. Supplemental Slides for the Second Quarter 2021 Earnings Call August 9, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements The press release and this presentation contain “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 future financial and operating results, our plans, obj
Slide 3: Second Quarter Highlights
Second Quarter Highlights • Revenue of $125.0 million increased 35.4% from $92.4 million in 2020 • Gross profit of $35.2 million increased 17.4% from $30.0 million in 2020 • Gross profit margin of 28.1% decreased 429 basis points from 32.4% in 2020 • Income from operations of $7.4 million increased
Slide 4: Second Quarter Highlights (Non-GAAP Adjusted)
Second Quarter Highlights (Non-GAAP Adjusted) The second quarter 2021 results compared with second quarter 2020 results, excluding the RentPayment business sold in September 2020, and excluding non-recurring expenses from both quarters, are as follows: • Revenue of $125.0 million increased 42.1% fro
Slide 5: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP (dollars in m illions) Second Quarter 2021 Second Quarter 2020 GAAP N R Exp Adjusted GAAP RentPayment NR Exp Adjusted Revenue $ 125.0 $ 125.0 $ 92.4 $ (4.4) $ 88.0 Cost of services 89.8 89.8 62.4 (0.5) 61.9 Gross Profit $ 35.2 $ 35.2 $ 30.0 $ (3.9) $ 26.1 Gro ss Pr
Slide 6: Revenue – Non-GAAP Adjusted in 2020
Revenue – Non-GAAP Adjusted in 2020 Second Quarter 2021 Revenue of $125.0 million increased 42.1% from $88.0 million in 2020 • Consumer Payments increased 46.4% to $119.6 million from $81.7 million • Commercial Payments decreased 28.5% to $4.0 million from $5.7 million ➢ CPX increased 16.3% to $1.6
Slide 7: Key Consumer Payments Revenue Growth Contributors
Key Consumer Payments Revenue Growth Contributors Base and Specialized Merchant Acquiring were both Strong Key Contributors to Revenue Growth • Revenue of $119.6 million increased $37.9 million, or 46.4%, from $81.7 million ➢ Base Revenue of $112.2 million increased $36.2 million, or 48%, from $76.0
Slide 8: Merchant Bankcard Volume
Merchant Bankcard Volume Q2 2021 Total Merchant Bankcard volume of $14.0 billion increased 51.8% from $9.2 billion Second Quarter 2021 2020 Variance Consumer Payments: Merchant bankcard processing dollar value $ 13,876.0 $ 9,010.9 54.0% Merchant bankcard transaction volume 150.6 92.8 62.2% Average T
Slide 9: Gross Profit (a Non-GAAP Measure) - Adjusted in 2020
Gross Profit (a Non-GAAP Measure) - Adjusted in 2020 Second Quarter 2021 Gross Profit of $35.2 million increased 35.0% from $26.1 million in 2020 • Consumer Payments increased 42.0% to $32.1 million from $22.6 million • Commercial Payments decreased 17.1% to $2.5 million from $3.1 million ➢ CPX incr
Slide 10: Operating Expenses – Non-GAAP Adjusted
Operating Expenses – Non-GAAP Adjusted Second Quarter 2021 Operating Expense of $25.9 million increased $3.4 million from $22.5 million in 2020 • Salaries and benefits of $10.3 million increased $1.3 million from $9.0 million in 2020 • SG&A of $4.9 million increased 0.6 million from $4.3 million in
Slide 11: Income from Operations - Non-GAAP Adjusted
Income from Operations - Non-GAAP Adjusted Second Quarter 2021 Income from Operations of $9.2 million increased 161.3% from $3.5 million in 2020 • Consumer Payments increased $7.2M or 98.7% to $14.5 million from $7.3 million • Commercial Payments decreased $0.5 million to $0.0 million from $0.5 mill
Slide 12: Interest Expense
Interest Expense Second Quarter 2021 Interest expense of $7.3 million decreased by $4.4 million from $11.7 million in 2020 Second Quarter 2021 2020 (dollars in millions) Cash Interest & Fees $ 6.1 $ 9.0 PIK Interest 0.6 2.0 Amortization of OID & DIC 0.6 0.7 $ 7.3 $ 11.7 • Cash interest includes admi
Slide 13: Cash Flow
Cash Flow Second Quarter 2021 Comparative Cash Flows – Unrestricted & Restricted Cash Activity • Investing Activities used $77.4 million in cash in Second Quarter, including: ➢ Acquisitions of $74.9 million ➢ Software development and Equipment Purchases of $2.5 million • Financing Activities provide
Slide 14: Total Debt Walk
qQi'21 Total Debt Walk ($379.1) Debt Repayments (dollars in millions) New Facility $30.0 Revolver Borrowing $330.0 Q2'21 13
Slide 15: EBITDA Walk
EBITDA Walk • Net leverage ratio of 3.43x at June 30, 2021 with Net Debt of $318.9 million and LTM consolidated adjusted EBITDA of $92.9 million • EBITDA adjustments are a summary of specific clauses within the Senior Term Loan Facility (in thousands) LTM Adjusted EBITDA (Non-GAAP) $ 76,885 Pro form
Slide 16: Senior Preferred Stock Dividend
Senior Preferred Stock Dividend The Senior Preferred Stock has a quarterly cumulative preferred dividend at LIBOR plus 12.0%, with a cash portion at the discretion of the Company at LIBOR (1.0% floor) plus 5.0% and payment-in-kind (“PIK”) portion at 7.0%. The dividend is subject to a 2.0% increase i
Slide 17: Preferred Unit Redemption
Preferred Unit Redemption $10.8 million Distribution to Non-Controlling Interests in a Subsidiary In February 2019, a subsidiary of the Company, Priority Hospitality Technology (“PHOT”), received a contribution of substantially all of the operating assets of eTab, LLC (“eTab”) and CUMULUS POS, LLC (