Priority Technology Holdings, Inc. · NASDAQ:PRTH
Priority Technology — Q1 2021 Earnings Presentation
17 slides from Priority Technology's earnings presentation, May 13, 2021
Slide 1: Supplemental Slides for the First Quarter 2021 Earnings Call
Priority Technology Holdings, Inc. Supplemental Slides for the First Quarter 2021 Earnings Call May 13, 2021 EXHIBIT 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements This press release 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 future financial and operating results, our plans, objectives, expectation
Slide 3: First Quarter Highlights
First Quarter Highlights 2 • Revenue of $113.3 million increased 16.9% from $96.9 million in 2020 • Gross profit of $31.4 million increased 2.8% from $30.6 million in 2020 • Gross profit margin of 27.7% decreased 379 basis points from 31.5% in 2020 • Income from operations of $4.5 million increased
Slide 4: First Quarter GAAP and Adjusted Results
(dollars in millions) First Quarter 2021 First Quarter 2020 GAAP NR Exp Adjusted GAAP RentPayment NR Exp Adjusted Revenue 113.3$ 113.3$ 96.9$ (3.8)$ 93.1$ Cost of services 81.9 81.9 66.4 (0.4) 66.0 Gross Profit 31.4$ 31.4$ 30.6$ (3.5)$ 27.1$ Gross Profit Margin 27.7% 27.7% 31.5% 90.2% 29.1% Salary a
Slide 5: Pro Forma Including Finxera and Reseller Acquisition
Pro Forma First Quarter 2021 4 Pro Forma Includes Actual Results of Finxera and an April 2021 Reseller Acquisition The Company announced during first quarter 2021 that it entered into an agreement to acquire Finxera Holdings, Inc. (“Finxera”). That acquisition is expected to close in third quarter 2
Slide 6: First Quarter Highlights - Adjusted
Revenue, Gross Profit and Adjusted EBITDA First Quarter Highlights - Adjusted 5 • Revenue of $113.3 million increased 21.7% from $93.1 million in 2020 • Gross profit of $31.4 million increased 16.0% from $27.1 million in 2020 • Gross profit margin of 27.7% decreased 140 basis points from 29.1% in 20
Slide 7: Revenue
Revenue • Consumer Payments increased 26.0% to $108.4 million from $86.0 million • Commercial Payments decreased 45.0% to $3.5 million from $6.4 million ➢ CPX increased 5.3% to $1.7 million from $1.6 million ➢ Managed Services decreased 61.8% to $1.8 million from $4.8 million • Integrated Partners i
Slide 8: 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 Strong Revenue Growth Momentum in Base and SMA (dollars in millions) • Revenue of $108.4 million increased $22.4 million, or 26.0%, from $86.0 million ➢ Base
Slide 9: New Merchant Boards
• New Merchant Boards remain strong despite the economic impact of COVID ➢ Historically, monthly new merchant boards average in the range of 4,500 - 5,000 ➢ Monthly First Quarter average of 4,874 in 2021 compared to 5,139 in 2020 ➢ March 2021 added 5,069 new merchants ➢ SMA merchant count at the end
Slide 10: Merchant Bankcard Volume
Merchant Bankcard Volume Q1 2021 Merchant Bankcard volume of $11.9 billion increased 12.9% from $10.6 billion 9 First Quarter 2021 2020 Variance Consumer Payments: Merchant bankcard processing dollar value 11,871.9$ 10,386.7$ 14.3% Merchant bankcard transaction volume 127.5 119.4 6.7% Average Ticket
Slide 11: Gross Profit
Gross Profit • Consumer Payments increased 23.8% to $28.9 million from $23.3 million • Commercial Payments decreased 41.7% to $2.0 million from $3.5 million • Integrated Partners increased 77.1% to $0.6 million from $0.3 million Gross Profit Growth (Decline) by Segment First Quarter 2021 Gross Profi
Slide 12: Operating Expenses
Operating Expenses • Salaries and employee benefits of $9.5 million approximated $9.6 million in 2020 • SG&A of $4.7 million decreased 5.9% from $5.0 million in 2020 • Depreciation and amortization of $9.1 million approximated $9.1 million in 2020 Increase (Decrease) by Type Excluding non-recurring
Slide 13: Income from Operations
Income from Operations • Consumer Payments increased 86.8% to $13.4 million from $7.2 million • Commercial Payments decreased $1.2 million to a loss of $0.4 million from $0.8 million • Integrated Partners increased $0.3 million to $0.1 million from a loss of $0.2 million • Corporate expense increase
Slide 14: Interest Expense
First Quarter 2021 2020 Cash Interest & Fees 6.7$ 8.5$ PIK Interest 1.9 1.4 Amortization of OID & Costs 0.6 0.5 9.2$ 10.3$ • Cash interest includes administrative fees of $0.1 million in 2021 and $0.3 million in 2020 Interest Expense First Quarter 2021 Interest expense of $9.2 million decreased by $
Slide 15: Cash Flow
Cash Flow First Quarter 2021 Comparative Cash Flows – Unrestricted & Restricted Cash Activity • Investing Activities in First Quarter 2021 include: ➢ Software development of $1.7 million ➢ Equipment of $1.1 million ➢ Acquisitions of intangible assets of $2.9 million • Financing Activities in First Q
Slide 16: Outstanding Debt Walk
Q4'20 Outstanding Debt Walk (dollars in millions) $1.9 ($4.9) Senior Repayment PIK $379.1 Q1'21 15
Slide 17: Debt Compliance Adjusted EBITDA Reconciliation
Loan Document (dollars in million) Sect. 1.01 Clause Actual Net income 28.9$ Interest expense (i)(b) 43.7 Income tax expense (i)(c) 9.9 Depreciation and amortization (i)(d),(i)(e) 39.6 EBITDA 122.0$ Gain on sale of business, net of $45.1 million attributable to non-controlling interest (ii)(c) (62.1
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