BM Technologies Reports Third Quarter & Year-to-Date 2024 Results
BM Technologies (BMTX) reported Q3 2024 results and announced its acquisition by First Carolina Bank for $5.00 per share in an all-cash transaction valued at approximately $67 million. The deal represents a 55% premium to the trading price as of October 24, 2024. Year-to-date revenue reached $42.8 million, up 6% YoY, while Q3 2024 showed a net loss of $(5.0) million. The company maintained strong liquidity with $11.2 million cash and no debt. Operating metrics included $708 million in average serviced deposits and $663 million in debit card spend for Q3 2024.
BM Technologies (BMTX) ha riportato i risultati del terzo trimestre del 2024 e ha annunciato l'acquisizione da parte di First Carolina Bank per 5,00 $ per azione in una transazione interamente in contante del valore di circa 67 milioni di dollari. L'accordo rappresenta un premio del 55% rispetto al prezzo di negoziazione del 24 ottobre 2024. I ricavi finora accumulati hanno raggiunto 42,8 milioni di dollari, con un incremento del 6% su base annua, mentre il terzo trimestre del 2024 ha mostrato una perdita netta di 5,0 milioni di dollari. L'azienda ha mantenuto una solida liquidità con 11,2 milioni di dollari in contante e senza debito. I parametri operativi hanno incluso 708 milioni di dollari in depositi medi gestiti e 663 milioni di dollari in spese con carta di debito per il terzo trimestre del 2024.
BM Technologies (BMTX) informó los resultados del tercer trimestre de 2024 y anunció su adquisición por parte de First Carolina Bank por 5,00 $ por acción en una transacción totalmente en efectivo valorada en aproximadamente 67 millones de dólares. El acuerdo representa una prima del 55% sobre el precio de negociación a partir del 24 de octubre de 2024. Los ingresos acumulados hasta la fecha alcanzaron 42,8 millones de dólares, con un aumento del 6% interanual, mientras que el tercer trimestre de 2024 mostró una pérdida neta de 5,0 millones de dólares. La empresa mantuvo una fuerte liquidez con 11,2 millones de dólares en efectivo y sin deudas. Los métricas operativas incluyeron 708 millones de dólares en depósitos promedio administrados y 663 millones de dólares en gastos de tarjeta de débito para el tercer trimestre de 2024.
BM Technologies (BMTX)는 2024년 3분기 실적을 발표하고 First Carolina Bank에 의해 주당 5.00 달러에 인수된다는 소식을 전했습니다. 이 전액 현금 거래는 약 6700만 달러로 평가됩니다. 이번 거래는 2024년 10월 24일 기준으로 거래 가격에 대해 55%의 프리미엄을 나타냅니다. 연초부터 지금까지의 수익은 4280만 달러에 달하며, 전년 대비 6% 증가했습니다. 하지만 2024년 3분기에는 500만 달러의 순 손실을 기록했습니다. 회사는 1120만 달러의 현금을 보유하며 부채 없이 강한 유동성을 유지하고 있습니다. 운영 지표에는 3분기에 대한 평균 관리 예치금 7억 8000만 달러와 직불 카드 사용액 6억 6300만 달러가 포함되었습니다.
BM Technologies (BMTX) a publié les résultats du troisième trimestre 2024 et a annoncé son acquisition par First Carolina Bank pour 5,00 $ par action dans le cadre d'une transaction entièrement en espèces d'un montant d'environ 67 millions de dollars. Cet accord représente une prime de 55 % par rapport au prix de marché au 24 octobre 2024. Les revenus cumulés jusqu'à présent s'élèvent à 42,8 millions de dollars, en hausse de 6 % par rapport à l'année précédente, tandis que le troisième trimestre 2024 a enregistré une perte nette de 5,0 millions de dollars. L'entreprise a maintenu une solide liquidité avec 11,2 millions de dollars en espèces et aucune dette. Les indicateurs opérationnels comprenaient 708 millions de dollars de dépôts moyens administrés et 663 millions de dollars de dépenses par carte de débit pour le troisième trimestre 2024.
BM Technologies (BMTX) berichtete über die Ergebnisse des dritten Quartals 2024 und gab die Übernahme durch die First Carolina Bank bekannt, die 5,00 $ pro Aktie in einer reinen Bartransaktion im Wert von etwa 67 Millionen Dollar umfasst. Das Geschäft stellt eine Prämie von 55 % auf den Handelspreis vom 24. Oktober 2024 dar. Die bisher erzielten Einnahmen beliefen sich auf 42,8 Millionen Dollar, was einem Anstieg von 6 % im Vergleich zum Vorjahr entspricht, während das dritte Quartal 2024 einen Nettoverlust von 5,0 Millionen Dollar verzeichnete. Das Unternehmen hielt eine starke Liquidität mit 11,2 Millionen Dollar in bar und ohne Schulden aufrecht. Zu den betrieblichen Kennzahlen gehörten 708 Millionen Dollar an durchschnittlichen verwalteten Einlagen und 663 Millionen Dollar an Ausgaben für Debitkarten im dritten Quartal 2024.
- All-cash acquisition deal at $5.00 per share, representing 55% premium
- YTD revenue increased 6% to $42.8 million
- Strong liquidity position with $11.2 million cash and zero debt
- Interchange and card revenue up 30% YoY in Q3
- University fees increased 21% YoY in Q3
- Q3 2024 net loss of $(5.0) million
- YTD net loss of $(9.1) million
- Q3 Core EBITDA loss of $(2.1) million
- Servicing fees declined 13% YoY in Q3
- Account fees decreased 13% YoY in Q3
Insights
The acquisition of BM Technologies by First Carolina Bank at
The strategic acquisition by First Carolina Bank positions BMTX's Banking-as-a-Service platform for potential growth through enhanced banking capabilities. The deal structure maintains operational continuity with current leadership while providing access to FCB's banking infrastructure. Key metrics show mixed performance - while interchange revenue grew
Year-to-Date 2024 Revenue of
BM Technologies to be Acquired by First Carolina Bank for
RADNOR, PA / ACCESSWIRE / November 14, 2024 / BM Technologies, Inc. (NYSE American:BMTX) ("BM Technologies", "BMTX", "we", or the "Company"), one of the largest digital banking platforms and Banking-as-a-Service (BaaS) providers in the country, today reported results for the three and nine months ended September 30, 2024.
On October 25, 2024, BM Technologies entered into a definitive agreement to be acquired by First Carolina Bank ("FCB" or "First Carolina") pursuant to which First Carolina will purchase all outstanding BMTX shares of common stock for
Under the terms of the agreement, BM Technologies stockholders will receive
Luvleen Sidhu, BMTX's Chair, CEO, and Founder, stated, "We are excited to announce this transaction with our partner bank, First Carolina Bank ("FCB"). This transaction not only delivers a significant premium to our stockholders but will also bring enhanced banking services and technology to all current BMTX customers as well as current and future FCB customers."
Third Quarter 2024 Financial Highlights
Operating revenues for the three and nine months ended September 30, 2024 totaled
$14.1 million and$42.8 million , respectively, compared to$14.4 million and$40.4 million for the three and nine ended September 30, 2023, respectively.Q3 2024 Net loss totaled
$(5.0) million , or$(0.42) per diluted share. Net loss for the nine months ended September 30, 2024 totaled$(9.1) million , or$(0.77) per diluted share.Q3 2024 Core EBITDA (Loss)[1] totaled
$(2.1) million . Core EBITDA1 (loss) for the nine months ended September 30, 2024 totaled$(1.6) million .Liquidity remained strong at September 30, 2024 with
$11.2 million of cash and no debt.
[1] Metrics such as Core EBITDA (Loss), Core Earnings (Loss), and Core Operating Expense are non-GAAP measures which exclude certain items from or add certain items to the comparable GAAP measure; a reconciliation appears on pages 8 and 9 of this release.
Third Quarter 2024 Operating Highlights
Average serviced deposits totaled
$708 million and ending serviced deposits totaled$820 million at September 30, 2024.Debit card spend totaled
$663 million in Q3 2024 and$2.1 billion in the nine months ended September 30, 2024.There were approximately 125 thousand new account sign-ups in the third quarter 2024 and approximately 290 thousand new account sign-ups in the first nine months of 2024.
Higher Education Organic Deposits (deposits that are not part of a school disbursement and are indicative of primary banking behavior) for the three and nine months ended September 30, 2024 totaled
$353 million and$1,167 million , respectively.
Financial Summary Table
| Q3 |
|
|
| Q2 |
|
|
| Q1 |
|
| Q4 |
|
|
| Q3 |
|
| Current Quarter Over Prior Year Quarter Change |
| |||||
(dollars in thousands) |
| 2024 |
|
|
| 2024 |
|
|
| 2024 |
|
| 2023 |
|
|
| 2023 |
|
| $ |
|
| % |
| |
Interchange and card revenue |
| 2,990 |
|
|
| 2,284 |
|
|
| 3,415 |
|
| 2,731 |
|
|
| 2,292 |
|
|
| 698 |
|
| 30 | % |
Servicing fees |
| 7,557 |
|
|
| 6,874 |
|
|
| 8,966 |
|
| 8,470 |
|
|
| 8,658 |
|
|
| (1,101 | ) |
| (13) | % |
Account fees |
| 1,680 |
|
|
| 1,805 |
|
|
| 2,095 |
|
| 2,118 |
|
|
| 1,931 |
|
|
| (251 | ) |
| (13) | % |
University fees |
| 1,712 |
|
|
| 1,469 |
|
|
| 1,612 |
|
| 1,410 |
|
|
| 1,412 |
|
|
| 300 |
|
| 21 | % |
Other revenue |
| 138 |
|
|
| 109 |
|
|
| 93 |
|
| 130 |
|
|
| 88 |
|
|
| 50 |
|
| 57 | % |
Total GAAP Operating Revenue | $ | 14,077 |
|
| $ | 12,541 |
|
| $ | 16,181 |
| $ | 14,859 |
|
| $ | 14,381 |
|
| $ | (304 | ) |
| (2) | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
GAAP Operating Expense | $ | 18,166 |
|
| $ | 17,210 |
|
| $ | 15,526 |
| $ | 19,038 |
|
| $ | 18,766 |
|
| $ | (600 | ) |
| (3) | % |
Less: restructuring, merger and acquisition related expenses |
| (58 | ) |
|
| (71 | ) |
|
| (79 | ) |
| 56 |
|
|
| - |
|
|
| (58 | ) |
| - | % |
Less: impairment of developed software |
| - |
|
|
| - |
|
|
| (50 | ) |
| (620 | ) |
|
| - |
|
|
| - |
|
| - | % |
Less: share-based compensation expense |
| (39 | ) |
|
| (486 | ) |
|
| 660 |
|
| (365 | ) |
|
| (176 | ) |
|
| 137 |
|
| (78) | % |
Less: NextGen implementation costs |
| - |
|
|
| (1,560 | ) |
|
| - |
|
| - |
|
|
| - |
|
|
| - |
|
| - | % |
Less: depreciation and amortization |
| (1,911 | ) |
|
| (1,671 | ) |
|
| (1,226 | ) |
| (2,488 | ) |
|
| (3,420 | ) |
|
| 1,509 |
|
| (44) | % |
Total Core Operating Expense | $ | 16,158 |
|
| $ | 13,422 |
|
| $ | 14,831 |
| $ | 15,621 |
|
| $ | 15,170 |
|
| $ | 988 |
|
| 7 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Core EBITDA (Loss) | $ | (2,081 | ) |
| $ | (881 | ) |
| $ | 1,350 |
| $ | (762 | ) |
| $ | (789 | ) |
| $ | (1,292 | ) | NM |
| |
Core EBITDA (Loss) Margin |
| (15) | % |
|
| (7) | % |
|
| 8 | % |
| (5) | % |
|
| (5) | % |
|
|
|
|
|
|
|
NM - Not meaningful
Contact Information
Investors:
Ajay Asija, Chief Financial Officer
BM Technologies, Inc.
AAsija@bmtx.com
Media Inquiries:
Brigit Hennaman
Rubenstein Public Relations, Inc.
bhennaman@rubensteinpr.com
About BM Technologies, Inc.
BM Technologies, Inc. (NYSE American: BMTX) - formerly known as BankMobile - is among the largest digital banking platforms and Banking-as-a-Service (BaaS) providers in the country, providing access to checking and savings accounts and financial wellness. It is focused on technology, innovation, easy-to-use products, and education with the mission to financially empower millions of Americans by providing a more affordable, transparent, and consumer-friendly banking experience. BM Technologies, Inc. (BMTX) is a technology company and is not a bank, which means it provides banking services through its partner banks. More information can be found at www.bmtx.com.
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainty. In general, forward-looking statements may be identified through the use of words such as "anticipate," "believe", "estimate," "expect," "intend," "plan," "will," "should," "plan," "continue," "potential" and "project" or the negative of these terms or other similar words and expressions, and in this press release, include the expected margin improvement on Durbin-exempt interchange fees, achievement of the PEP target as a result of the expected cost savings from the PEP, and the expected growth outlook and results from operations during 2024. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. Such statements are based on Management's current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Investors are cautioned that there can be no assurance actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors.
These risks and uncertainties include, but are not limited to, general economic conditions, consumer adoption, technology and competition, continuing interest rate volatility, the ability to enter into new partnerships, regulatory risks, risks associated with the higher education industry and financing, the operations and performance of the Company's partners, including bank partners, higher education partners, and BaaS partners, uncertainties as to the timing of the proposed transaction contemplated by the Merger Agreement (the "Merger"), the risk that the Merger may not be completed on the anticipated terms in a timely manner or at all, the failure to satisfy any of the conditions to the consummation of the Merger, including receiving, on a timely basis or otherwise, the required approvals of the Merger by the Company's stockholders, the possibility that competing offers or acquisition proposals for the Company will be made, the possibility that any or all of the various conditions to the consummation of the Merger may not be satisfied or waived, including the failure to receive any required regulatory approvals from any applicable governmental entities (or any conditions, limitations or restrictions placed on such approvals), the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement, including in circumstances which would require the Company to pay a termination fee, the effect of the announcement or pendency of the transactions contemplated by the Merger Agreement on the Company's ability to retain and hire key personnel, its ability to maintain relationships with its customers, suppliers and others with whom it does business, or its operating results and business generally, risks related to diverting management's attention from the Company's ongoing business operations, the risk that stockholder litigation in connection with the transactions contemplated by the Merger Agreement may result in significant costs of defense, indemnification and liability, certain restrictions during the pendency of the Merger that may impact the Company's ability to pursue certain business opportunities or strategic transactions, uncertainty as to the timing of completion of the Merger, risks that the benefits of the Merger are not realized when and as expected, and legislative, regulatory and economic developments. Further information regarding additional factors which could affect the forward-looking statements contained in this press release can be found in the cautionary language included under the headings "CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS" and "Risk Factors" in the Company's Annual Report on Form 10-K and other documents filed with the Securities and Exchange Commission ("SEC"). The Company's SEC filings are available publicly on the SEC website at www.sec.gov.
Many of these factors are beyond the Company's ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this communication, and BMTX undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law. BMTX qualifies all forward-looking statements by these cautionary statements.
Additional Information and Where to Find It
In connection with the proposed transaction, the Company has filed a proxy statement in preliminary form on November 13, 2024. This press release may be deemed to be solicitation material in respect of the proposed acquisition of the Company by FCB. The Company intends to file additional relevant materials with the SEC, including the Company's proxy statement in definitive form. When the Company files its proxy statement in definitive form with the SEC, the Company will mail the definitive proxy statement and a proxy card to each stockholder entitled to vote at the special meeting relating to the proposed transaction. INVESTORS AND STOCKHOLDERS OF THE COMPANY ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE COMPANY'S PROXY STATEMENT (INCLUDING THE DEFINITIVE PROXY STATEMENT WHEN IT IS AVAILABLE), BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, FCB AND THE PROPOSED TRANSACTION. Investors and stockholders of the Company are or will be able to obtain these documents (when they are available) free of charge from the SEC's website at www.sec.gov, or free of charge from the Company by directing a request to the Company at 201 King of Prussia Road, Suite 650, Wayne, PA 19087, Attention: Investor Relations or at tel: (877) 327-9515.
Participants in the Solicitation
The Company and its directors, executive officers and other members of management and employees, under SEC rules, may be deemed to be "participants" in the solicitation of proxies from stockholders of the Company in favor of the proposed transaction contemplated by the Merger Agreement. Information about the Company's directors and executive officers is set forth in the Company's Proxy Statement on Schedule 14A for its 2024 Annual Meeting of Shareholders, which was filed with the SEC on April 29, 2024. To the extent holdings of the Company's securities by its directors or executive officers have changed since the amounts set forth in such 2024 proxy statement, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC. Additional information concerning the interests of the Company's participants in the solicitation, which may, in some cases, be different than those of the Company's stockholders generally, will be set forth in the preliminary proxy statement, definitive proxy statement (if and when available) and any other relevant documents that are filed or will be filed with the SEC relating to the Merger. Investors and stockholders of the Company may obtain free copies of these documents using the sources indicated above.
No Offer or Solicitation
This press release is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
UNAUDITED FINANCIAL STATEMENTS
BM TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)- UNAUDITED
(amounts in thousands, except per share data)
| Q3 |
| Q2 |
| Q1 |
| Q4 |
| Q3 |
| ||||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interchange and card revenue |
| $ | 2,990 |
| $ | 2,284 |
| $ | 3,415 |
| $ | 2,731 |
| $ | 2,292 |
|
Servicing fees |
|
| 7,557 |
|
| 6,874 |
|
| 8,966 |
|
| 8,470 |
|
| 8,658 |
|
Account fees |
|
| 1,680 |
|
| 1,805 |
|
| 2,095 |
|
| 2,118 |
|
| 1,931 |
|
University fees |
|
| 1,712 |
|
| 1,469 |
|
| 1,612 |
|
| 1,410 |
|
| 1,412 |
|
Other revenue |
|
| 138 |
|
| 109 |
|
| 93 |
|
| 130 |
|
| 88 |
|
Total operating revenues |
|
| 14,077 |
|
| 12,541 |
|
| 16,181 |
|
| 14,859 |
|
| 14,381 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology, communication, and processing |
|
| 6,168 |
|
| 4,297 |
|
| 4,711 |
|
| 6,826 |
|
| 7,826 |
|
Salaries and employee benefits |
|
| 5,590 |
|
| 5,660 |
|
| 4,447 |
|
| 5,152 |
|
| 4,773 |
|
Professional services |
|
| 2,840 |
|
| 2,634 |
|
| 3,208 |
|
| 3,331 |
|
| 2,948 |
|
Provision for operating losses |
|
| 2,650 |
|
| 2,096 |
|
| 2,081 |
|
| 2,683 |
|
| 2,138 |
|
Occupancy |
|
| 11 |
|
| 10 |
|
| 16 |
|
| 2 |
|
| 9 |
|
Customer related supplies |
|
| 242 |
|
| 231 |
|
| 241 |
|
| 234 |
|
| 227 |
|
Advertising and promotion |
|
| 117 |
|
| 75 |
|
| 100 |
|
| 108 |
|
| 128 |
|
Restructuring, merger and acquisition related expenses |
|
| 58 |
|
| 71 |
|
| 79 |
|
| (56 | ) |
| - |
|
NextGen implementation costs |
|
| - |
|
| 1,560 |
|
| - |
|
| - |
|
| - |
|
Other expense |
|
| 490 |
|
| 576 |
|
| 643 |
|
| 758 |
|
| 717 |
|
Total operating expenses |
|
| 18,166 |
|
| 17,210 |
|
| 15,526 |
|
| 19,038 |
|
| 18,766 |
|
Income (loss) from operations |
|
| (4,089 | ) |
| (4,669 | ) |
| 655 |
|
| (4,179 | ) |
| (4,385 | ) |
Non-operating income and expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on fair value of private warrant liability |
|
| 54 |
|
| (162 | ) |
| 108 |
|
| 216 |
|
| 433 |
|
Other loss |
|
| 951 |
|
| - |
|
| - |
|
| - |
|
| - |
|
Income (loss) before income tax |
|
| (4,986 | ) |
| (4,831 | ) |
| 763 |
|
| (3,963 | ) |
| (3,952 | ) |
Income tax expense (benefit) |
|
| 9 |
|
| - |
|
| 15 |
|
| - |
|
| - |
|
Net income (loss) |
| $ | (4,995 | ) | $ | (4,831 | ) | $ | 748 |
| $ | (3,963 | ) | $ | (3,952 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted average number of shares outstanding - basic |
|
| 11,799 |
|
| 11,785 |
|
| 11,728 |
|
| 11,574 |
|
| 11,570 |
|
Weighted average number of shares outstanding - diluted |
|
| 11,799 |
|
| 11,785 |
|
| 11,746 |
|
| 11,574 |
|
| 11,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Basic earnings (loss) per common share |
| $ | (0.42 | ) | $ | (0.41 | ) | $ | 0.06 |
| $ | (0.34 | ) | $ | (0.34 | ) |
Diluted earnings (loss) per common share |
| $ | (0.42 | ) | $ | (0.41 | ) | $ | 0.06 |
| $ | (0.34 | ) | $ | (0.34 | ) |
BM TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(amounts in thousands)
September 30, |
| June 30, |
| March 31, |
| December 31, |
| September 30, |
| ||||||
ASSETS |
|
|
|
|
|
|
|
|
|
| |||||
Cash and cash equivalents | $ | 11,224 |
| $ | 12,457 |
| $ | 14,630 |
| $ | 14,288 |
| $ | 8,802 |
|
Accounts receivable, net allowance for doubtful accounts |
| 4,891 |
|
| 6,252 |
|
| 6,875 |
|
| 9,128 |
|
| 8,511 |
|
Prepaid expenses and other assets |
| 2,314 |
|
| 3,382 |
|
| 3,331 |
|
| 5,148 |
|
| 6,088 |
|
Total current assets |
| 18,429 |
|
| 22,091 |
|
| 24,836 |
|
| 28,564 |
|
| 23,401 |
|
Premises and equipment, net |
| 430 |
|
| 448 |
|
| 487 |
|
| 535 |
|
| 534 |
|
Developed software, net |
| 15,857 |
|
| 16,247 |
|
| 16,366 |
|
| 16,173 |
|
| 17,668 |
|
Goodwill |
| 5,259 |
|
| 5,259 |
|
| 5,259 |
|
| 5,259 |
|
| 5,259 |
|
Other intangibles, net |
| 3,869 |
|
| 3,949 |
|
| 4,029 |
|
| 4,109 |
|
| 4,189 |
|
Other assets |
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
Total assets | $ | 43,844 |
| $ | 47,994 |
| $ | 50,977 |
| $ | 54,640 |
| $ | 51,051 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities | $ | 10,295 |
| $ | 10,382 |
| $ | 8,880 |
| $ | 10,577 |
| $ | 12,513 |
|
Deferred revenue, current |
| 11,855 |
|
| 11,271 |
|
| 11,159 |
|
| 12,322 |
|
| 3,440 |
|
Total current liabilities |
| 22,150 |
|
| 21,653 |
|
| 20,039 |
|
| 22,899 |
|
| 15,953 |
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred revenue, non-current |
| 4 |
|
| 3 |
|
| - |
|
| 127 |
|
| - |
|
Liability for private warrants |
| - |
|
| - |
|
| 54 |
|
| 162 |
|
| 378 |
|
Other non-current liabilities |
| 162 |
|
| 216 |
|
| - |
|
| 480 |
|
| 480 |
|
Total liabilities | $ | 22,316 |
| $ | 21,872 |
| $ | 20,093 |
| $ | 23,668 |
| $ | 16,811 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
| - |
|
| - |
|
| - |
| $ | - |
| $ | - |
|
Common stock |
| 1 |
|
| 1 |
|
| 1 |
|
| 1 |
|
| 1 |
|
Additional paid-in capital |
| 71,421 |
|
| 71,020 |
|
| 70,951 |
|
| 71,787 |
|
| 71,092 |
|
Accumulated deficit |
| (49,894 | ) |
| (44,899 | ) |
| (40,068 | ) |
| (40,816 | ) |
| (36,853 | ) |
Total shareholders' equity | $ | 21,528 |
| $ | 26,122 |
| $ | 30,884 |
| $ | 30,972 |
| $ | 34,240 |
|
Total liabilities and shareholders' equity | $ | 43,844 |
| $ | 47,994 |
| $ | 50,977 |
| $ | 54,640 |
| $ | 51,051 |
|
NON-GAAP FINANCIAL RECONCILIATIONS - UNAUDITED
Certain financial measures used in this Press Release are not defined by U.S. generally accepted accounting principles ("GAAP"), and as such, are considered non-GAAP financial measures. Core expenses and EBITDA exclude the effects of items the Company does not consider indicative of its core operating performance, including restructuring, merger and acquisition related expenses, fair value mark to market income or expense associated with certain warrants, impairment of developed software, and non-cash share-based compensation. Management believes the use of core revenues, expenses, and EBITDA are appropriate to provide investors with an additional tool to evaluate the Company's ongoing business performance. Investors are cautioned that these non-GAAP financial measures may not be defined in the same manner by other companies and, as a result, may not be comparable to other similarly titled measures used by other companies. Also, these non-GAAP financial measures should not be construed as alternatives, or superior, to other measures determined in accordance with GAAP.
Reconciliation - GAAP Operating Expenses to Core Operating Expenses (in thousands)
Q3 |
| Q2 |
| Q1 |
| Q4 |
| Q3 |
| ||||||
GAAP total expenses | $ | 18,166 |
| $ | 17,210 |
| $ | 15,526 |
| $ | 19,038 |
| $ | 18,766 |
|
Less: restructuring, merger and acquisition related expenses |
| (58 | ) |
| (71 | ) |
| (79 | ) |
| 56 |
|
| - |
|
Impairment of developed software |
| - |
|
| - |
|
| (50 | ) |
| (620 | ) |
| - |
|
Less: NextGen implementation costs |
| - |
|
| (1,560 | ) |
|
|
|
|
|
|
|
|
|
Less: share-based compensation expense |
| (39 | ) |
| (486 | ) |
| 660 |
|
| (365 | ) |
| (176 | ) |
Core Operating Expenses inc Dep and Amort | $ | 18,069 |
| $ | 15,093 |
| $ | 16,057 |
| $ | 18,109 |
| $ | 18,590 |
|
Less: depreciation and amortization |
| 1,911 |
|
| 1,671 |
|
| 1,226 |
|
| 2,488 |
|
| 3,420 |
|
Core Operating Expenses ex. Dep and Amort | $ | 16,158 |
| $ | 13,422 |
| $ | 14,831 |
| $ | 15,621 |
| $ | 15,170 |
|
Reconciliation - GAAP Net Loss to Core Net (Loss) Income (in thousands, except per share data)
Q3 |
|
| Q2 |
|
| Q1 |
| Q4 |
|
| Q3 |
| ||||||
GAAP net income (loss) | $ | (4,995 | ) |
| $ | (4,831 | ) |
| $ | 748 |
| $ | (3,963 | ) |
| $ | (3,952 | ) |
Add: loss/(gain) on fair value of private warrant liability |
| (54 | ) |
|
| 162 |
|
|
| (108 | ) |
| (216 | ) |
|
| (433 | ) |
Add: restructuring, merger and acquisition related expenses |
| 58 |
|
|
| 71 |
|
|
| 79 |
|
| (56 | ) |
|
| - |
|
Add: impairment of developed software |
| - |
|
|
| - |
|
|
| 50 |
|
| 620 |
|
|
| - |
|
Add: share-based compensation expense |
| 39 |
|
|
| 486 |
|
|
| (660 | ) |
| 365 |
|
|
| 176 |
|
Add: NextGen implementation costs |
| - |
|
|
| 1,560 |
|
|
| - |
|
| - |
|
|
| - |
|
Add: Other loss |
| 951 |
|
|
| - |
|
|
| - |
|
| - |
|
|
| - |
|
Less: tax (@ actual ETR) on taxable non-core items |
| 2 |
|
|
| (1 | ) |
|
| (1 | ) |
| - |
|
|
| - |
|
Core net (loss)/income | $ | (3,999 | ) |
| $ | (2,553 | ) |
| $ | 108 |
| $ | (3,250 | ) |
| $ | (4,209 | ) |
Core diluted shares |
| 11,799 |
|
|
| 11,785 |
|
|
| 11,746 |
|
| 11,574 |
|
|
| 11,570 |
|
Core diluted (loss) earnings per common share | $ | (0.34 | ) |
| $ | (0.22 | ) |
| $ | 0.01 |
| $ | (0.28 | ) |
| $ | (0.36 | ) |
GAAP diluted (loss) earnings per common share | $ | (0.42 | ) |
| $ | (0.41 | ) |
| $ | 0.06 |
| $ | (0.34 | ) |
| $ | (0.34 | ) |
Reconciliation - GAAP Net Loss to Core EBITDA (Loss) (in thousands)
Q3 |
|
| Q2 |
|
| Q1 |
| Q4 |
|
| Q3 |
| ||||||
GAAP net income (loss) | $ | (4,995 | ) |
| $ | (4,831 | ) |
| $ | 748 |
| $ | (3,963 | ) |
| $ | (3,952 | ) |
Add: loss/(gain) on fair value of private warrant liability |
| (54 | ) |
|
| 162 |
|
|
| (108 | ) |
| (216 | ) |
|
| (433 | ) |
Add: Other loss |
| 951 |
|
|
| - |
|
|
| - |
|
| - |
|
|
| - |
|
Add: income tax expense |
| 9 |
|
|
| - |
|
|
| 15 |
|
| - |
|
|
| - |
|
Add: restructuring, merger and acquisition related expenses |
| 58 |
|
|
| 71 |
|
|
| 79 |
|
| (56 | ) |
|
| - |
|
Add: impairment of developed software |
| - |
|
|
| - |
|
|
| 50 |
|
| 620 |
|
|
| - |
|
Add: share-based compensation expense |
| 39 |
|
|
| 486 |
|
|
| (660 | ) |
| 365 |
|
|
| 176 |
|
Add: NextGen implementation costs |
| - |
|
|
| 1,560 |
|
|
| - |
|
| - |
|
|
| - |
|
Add: depreciation and amortization |
| 1,911 |
|
|
| 1,671 |
|
|
| 1,226 |
|
| 2,488 |
|
|
| 3,420 |
|
Core (Loss) EBITDA | $ | (2,081 | ) |
| $ | (881 | ) |
| $ | 1,350 |
| $ | (762 | ) |
| $ | (789 | ) |
Key Performance Metrics
Q3 |
| Q2 |
| Q1 |
| Q4 |
| Q3 |
| Year Over Year Change |
| ||||||||||
2024 |
| 2024 |
| 2024 |
| 2023 |
| 2023 |
| $ |
| % |
| ||||||||
Debit card POS spend ($ millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Higher education | $ | 511 |
| $ | 472 |
| $ | 636 |
| $ | 545 |
| $ | 567 |
| $ | (56 | ) |
| (10) | % |
BaaS | $ | 152 |
| $ | 158 |
| $ | 172 |
| $ | 168 |
| $ | 171 |
| $ | (19 | ) |
| (11) | % |
Total POS spend | $ | 663 |
| $ | 631 |
| $ | 809 |
| $ | 714 |
| $ | 737 |
| $ | (75 | ) |
| (10) | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Serviced deposits ($ millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher education | $ | 590 |
| $ | 392 |
| $ | 535 |
| $ | 361 |
| $ | 636 |
| $ | (46 | ) |
| (7) | % |
BaaS | $ | 230 |
| $ | 250 |
| $ | 284 |
| $ | 313 |
| $ | 357 |
| $ | (127 | ) |
| (36) | % |
Total Ending Deposits | $ | 820 |
| $ | 642 |
| $ | 820 |
| $ | 674 |
| $ | 994 |
| $ | (173 | ) |
| (17) | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Higher education | $ | 472 |
| $ | 425 |
| $ | 537 |
| $ | 479 |
| $ | 466 |
| $ | 6 |
|
| 1 | % |
BaaS | $ | 237 |
| $ | 261 |
| $ | 290 |
| $ | 326 |
| $ | 387 |
| $ | (150 | ) |
| (39) | % |
Total Average Deposits | $ | 708 |
| $ | 685 |
| $ | 828 |
| $ | 805 |
| $ | 853 |
| $ | (144 | ) |
| (17) | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Higher Education Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher education retention |
| 99 | % |
| 99 | % |
| 99 | % |
| 99 | % |
| 99 | % |
|
|
|
|
|
|
FAR(1) disbursement amount ($B) | $ | 3.9 |
| $ | 1.9 |
| $ | 4.3 |
| $ | 2.0 |
| $ | 3.6 |
| $ | 0.3 |
|
| 8 | % |
Organic deposits(2) ($M) | $ | 353 |
| $ | 366 |
| $ | 449 |
| $ | 390 |
| $ | 411 |
| $ | (58 | ) |
| (14) | % |
(1) FAR disbursements are Financial Aid Refund disbursements from a higher education institution.
(2) Organic Deposits are all deposits excluding any funds disbursed directly from the school.
SOURCE: BM Technologies
View the original press release on accesswire.com
FAQ
What is the acquisition price for BMTX by First Carolina Bank?
What was BMTX's revenue for Q3 2024?
What was BMTX's net loss in Q3 2024?
What premium does the First Carolina Bank acquisition offer BMTX shareholders?
