Priority Technology Holdings, Inc. Announces Fourth Quarter and Full Year 2020 Financial Results

Rhea-AI Summary

Priority Technology Holdings, Inc. (NASDAQ: PRTH) reported its Q4 2020 financial results, showing an 8.1% increase in revenue to $106.1 million compared to Q4 2019. Gross profit rose 3.2% to $32.5 million, while income from operations surged 489.3% to $6.2 million. Although the company posted a net loss of $1.0 million, this was an improvement from a net loss of $7.2 million in the prior year. Adjusted EBITDA grew 12.7% to $18.2 million. The total net leverage ratio improved to 5.85x, down from 6.16x in Q3 2020. Executives expressed optimism for continued growth in 2021.

Positive

• Revenue increased 8.1% year-over-year to $106.1 million.
• Income from operations rose 489.3% to $6.2 million.
• Adjusted EBITDA increased 12.7% to $18.2 million.
• Total net leverage ratio decreased to 5.85x, indicating improved financial health.

Negative

• Net loss of $1.0 million, though improved from $7.2 million last year.
• Gross profit margin decreased by 144 basis points to 30.6%.

ALPHARETTA, Ga., March 16, 2021 /PRNewswire/ -- Priority Technology Holdings, Inc. (NASDAQ: PRTH) ("Priority" or the "Company"), a leading provider of merchant acquiring, integrated payment software and commercial payment solutions, today announced its fourth quarter financial results including strong year-over-year revenue growth and further deleveraging during the quarter.     

Highlights of Consolidated Results

Fourth Quarter 2020, Compared with Fourth Quarter 2019

Financial highlights of the fourth quarter of 2020 compared with the fourth quarter of 2019, are as follows:

• Revenue of $106.1 million increased 8.1% from $98.2 million.
• Gross profit (a non-GAAP measure¹) of $32.5 million increased 3.2% from $31.4 million.
• Gross profit margin (a non-GAAP measure¹) of 30.6% decreased 144 basis points from 32.0%.
• Income from operations of $6.2 million increased 489.3% from $1.1 million.
• Net loss of $1.0 million compares with a net loss of $7.2 million.
• Diluted loss per share of $0.01 compares with a diluted loss per share of $0.11.
• Adjusted EBITDA (a non-GAAP measure¹) of $18.2 million increased 12.7% from $16.2 million.
• Total net leverage ratio of 5.85x at December 31, 2020 decreased from 6.16x at September 30, 2020².

The fourth quarter of 2019 includes the results of the RentPayment business sold to MRI Software in September 2020.  The fourth quarter of 2020 compared with the results of the fourth quarter of 2019, excluding the RentPayment business³, are as follows:

• Revenue increased 12.3% from $94.5 million.
• Gross profit (a non-GAAP measure¹) increased 15.5% from $28.2 million.
• Gross profit margin (a non-GAAP measure¹) increased 84 basis points from 29.8%.
• Adjusted EBITDA (a non-GAAP measure¹) increased 35.2% from $13.6 million.

Full Year 2020, Compared with Full Year 2019

Financial highlights of the full year 2020 compared with the full year 2019, are as follows:

• Revenue of $404.3 million increased 8.7% from $371.9 million.
• Gross profit (a non-GAAP measure¹) of $127.0 million increased 6.4% from $119.3 million.
• Gross profit margin (a non-GAAP measure¹) of 31.4% decreased 68 basis points from 32.1%.
• Income from operations of $20.9 million increased 190.4% from $7.2 million.
• Net income of $25.7 million, which includes the pre-tax gain from the sale of the RentPayment business, net of non-controlling interests ("NCIs"), of $62.1 million, compares with a net loss of $33.6 million.
• Diluted income per share of $0.38 compares with a diluted loss per share of $0.50.
• Adjusted EBITDA (a non-GAAP measure¹) of $70.3 million increased 19.4% from $58.9 million.

The consolidated results include the results of the RentPayment business from March 1, 2019 through September 22, 2020.  Excluding the RentPayment business³, results for the full year 2020 compared with the results for the full year 2019 are as follows:

• Revenue of $392.3 million increased 8.9% from $360.2 million.
• Gross profit (a non-GAAP measure¹) of $116.3 million increased 6.9% from $108.8 million.
• Gross profit margin (a non-GAAP measure¹) of 29.6% decreased 55 basis points from 30.2%.
• Adjusted EBITDA (a non-GAAP measure¹) of $62.1 million increased 25.0% from $49.7 million.

(1) See "Non-GAAP Financial Measures" and the reconciliations of Gross Profit, Gross Profit Margin, and Adjusted EBITDA to their most comparable GAAP measures provided below for additional information.
(2) See "Non-GAAP Financial Measures" and the calculation of Total Net Leverage Ratio for the year ended December 31, 2020, provided below for additional information.
(3) See "Results With and Without RentPayment" for a summary of the results for the three and the twelve months ended December 31, 2020 and 2019, excluding the actual results of the RentPayment business sold in September 2020.

"The momentum that we built in the third quarter continued through the fourth quarter and while these successes would have been meaningful in any year, I am especially proud of our team given the challenges presented by the pandemic," said Tom Priore, Chairman and Chief Executive Officer of Priority. "We produced growth in revenue, gross profit and adjusted EBITDA and with our Finxera acquisition, we will be a one stop-shop for payments and virtual bank account management that today's merchants and modern software companies are seeking in order to manage and monetize their payment networks."

"We have executed on our plan to build out our Payment Infrastructure as a Service (PIaaS) solutions while continuing to grow our consumer, commercial and integrated payments divisions," continued Priore. "We enter 2021 in growth mode with strong activity and a solid pipeline. We expect that the strength of our core acquiring business and complimentary high growth, countercyclical payment assets will drive strong financial performance in 2021."

Conference Call

Priority Technology Holdings, Inc.'s leadership will host a conference call on Wednesday, March 17, 2021 at 11:00 a.m. EST to discuss its fourth quarter and full year 2020 financial results. Participants can access the call by Phone: US/Canada: (877) 501-3161 or International: (786) 815-8443.

The Internet webcast link and accompanying slide presentation can be accessed at https://edge.media-server.com/mmc/p/9rjzgeoo and will also be posted in the "Investor Relations" section of the Company's website at www.PRTH.com.

An audio replay of the call will be available shortly after the conference call until March 20, 2021 at 1:30 p.m. EST. To listen to the audio replay, dial (855) 859-2056 or (404) 537-3406 and enter conference ID number 6918659. Alternatively, you may access the webcast replay in the "Investor Relations" section of the Company's website at www.PRTH.com.

Non-GAAP Financial Measures

This communication includes certain non-GAAP financial measures that we regularly review to evaluate our business and trends, measure our performance, prepare financial projections, allocate resources, and make strategic decisions. We believe these non-GAAP measures help to illustrate the underlying financial and business trends relating to our results of operations and comparability between current and prior periods. We also use these non-GAAP measures to establish and monitor operational goals. However, these non-GAAP measures are not superior to or a substitute for prominent measurements calculated in accordance with GAAP. Rather, the non-GAAP measures are meant to be a complement to understanding measures prepared in accordance with GAAP.

Gross Profit and Gross Profit Margin

The Company's non-GAAP gross profit metric represents revenues less costs of services. Gross profit margin is gross profit divided by revenues. We review these non-GAAP measures to evaluate our underlying profit trends. The reconciliation of gross profit to its most comparable GAAP measure is provided below:

	(in thousands)
	Three Months Ended December 31,								Twelve Months Ended December 31,
	2020				2019				2020				2019
Revenues	$	106,091			$	98,183			$	404,342			$	371,854
Costs of Services	(73,641)				(66,742)				(277,374)				(252,569)
Gross Profit	$	32,450			$	31,441			$	126,968			$	119,285
Gross Profit Margin	30.6		%		32.0		%		31.4		%		32.1		%

EBITDA, Adjusted EBITDA and Consolidated Adjusted EBITDA

EBITDA and adjusted EBITDA are performance measures. EBITDA is earnings before interest, income tax, and depreciation and amortization expenses ("EBITDA"). Adjusted EBITDA begins with EBITDA but further excludes certain non-cash costs, such as stock-based compensation and the write-off of the carrying value of investments or other assets, as well as debt extinguishment and modification expenses and other expenses and income items considered non-recurring, such as acquisition integration expenses, certain professional fees, and litigation settlements.  Consolidated adjusted EBITDA, which is a liquidity measure used in determining our total net leverage ratio, is adjusted EBITDA further adjusted for items specified in the definition of consolidated adjusted EBITDA within our debt agreements, which include the pro-forma impact of acquisitions and dispositions and other specified adjustments. We review the non-GAAP adjusted EBITDA measure to evaluate our business and trends, measure our performance, prepare financial projections, allocate resources, and make strategic decisions. 

We review the non-GAAP consolidated adjusted EBITDA to evaluate compliance with our total net leverage ratio at each measurement period.  The reconciliation of adjusted EBITDA to its most comparable GAAP measure is provided below:

	(in thousands)
	Three Months Ended December 31,								Twelve Months Ended December 31,
	2020				2019				2020				2019
Net (loss) income	$	(1,004)			$	(7,169)			$	25,661			$	(33,589)
Interest expense	9,385				10,051				44,839				40,653
Income tax (benefit) expense	(2,020)				(1,638)				10,899				830
Depreciation and amortization	9,889				10,329				40,775				39,092
EBITDA	16,250				11,573				122,174				46,986
Gain on sale, net of NCIs	—				—				(62,091)				—
Debt extinguishment and modification	—				—				1,899
Write-off of equity-method investment	—				—				211				—
Selling, general and administrative	1,180				4,310				5,710				8,266
Non-cash stock-based compensation	803				298				2,430				3,652
Adjusted EBITDA	$	18,233			$	16,181			$	70,333			$	58,904
Reconciliation to Consolidated Adjusted EBITDA for the twelve months ended December 31, 2020:
Adjusted EBITDA													$	70,333
Allowable Board fee add-back													1,500
Other adjustments													161
RentPayment 2020 adjusted EBITDA													(8,221)
Consolidated Adjusted EBITDA													$	63,773
Consolidated Total Debt at December 31, 2020:
Current portion of long-term debt													$	19,442
Long-term debt, net of discounts and deferred financing costs													357,873
Unamortized debt discounts and deferred financing costs													4,725
													382,040
Less unrestricted cash													(9,241)
Consolidated Net Debt													$	372,799
Total Net Leverage Ratio													5.85x

Further detail of certain of these adjustments, and where these items are recorded in our consolidated statements of operations, is provided below:

	(in thousands)
	Three Months Ended December 31,								Twelve Months Ended December 31,
	2020				2019				2020				2019			Segment
Selling, general and administrative expense:
Acquisition integration services	$	(119)			$	1,723			$	2,628			$	2,910		Integrated Partners
Intangible carrying value adjustment	773				—				1,753				—			Consumer
Legal and professional fees	416				3,173				1,941				6,353			Corporate
Legal settlements	3				34				(719)				(377)			Corporate
Change in fair value of contingent consideration	(360)				(620)				(360)				(620)			Consumer
Write-down of note receivable	467				—				467				—			Consumer
	$	1,180			$	4,310			$	5,710			$	8,266
Salary and employee benefit expense:
Non-cash stock-based compensation	$	108			$	141			$	440			$	1,572		Consumer
Non-cash stock-based compensation	27				32				122				588			Commercial
Non-cash stock-based compensation	1				1				2				3			Integrated Partners
Non-cash stock-based compensation	667				124				1,866				1,489			Corporate
	$	803			$	298			$	2,430			$	3,652
Other:
Debt extinguishment and modification									$	1,899
Write-off of equity-method investment									211
									$	2,110
Gain on sale of business									$	107,239
Attributable to NCIs									(45,148)
Gain on sale, net of NCIs									$	62,091

Priority does not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable GAAP financial measures because it could not do so without unreasonable effort due to the unavailability of the information needed to calculate reconciling items and due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the non-GAAP financial measures in future periods. When planning, forecasting and analyzing future periods, the Company does so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for various cash and non-cash reconciling items that would be difficult to predict with reasonable accuracy. For example, stock-based compensation expense would be difficult to estimate because it depends on the Company's future hiring and retention needs, as well as the future fair market value of the Company's common stock, all of which are difficult to predict and subject to constant change. As a result, the Company does not believe that a GAAP reconciliation would provide meaningful supplemental information about the Company's outlook.

About Priority Technology Holdings, Inc.

Priority is a leading provider of merchant acquiring, integrated payment software and commercial payment solutions, offering unique product and service capabilities to its merchant network and distribution partners. Priority's enterprise operates from a purpose-built business platform that includes tailored customer service offerings and bespoke technology development, allowing the Company to provide end-to-end solutions for payment and payment-adjacent opportunities. Additional information can be found at www.PRTH.com.

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, expectations and intentions with respect to future operations, products and services, and other statements identified by words such as "may," "will," "should," "anticipates," "believes," "expects," "plans," "future," "intends," "could," "estimate," "predict," "projects," "targeting," "potential" or "contingent," "guidance," "outlook" or words of similar meaning. These forward-looking statements include, but are not limited to, expected timing of the closing of Priority Technology Holdings, Inc.'s ("Priority", "we", "our", or "us") merger with Finxera Holdings, Inc. ("Finxera") and our 2021 outlook and statements regarding our market and growth opportunities. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive risks, trends and uncertainties that could cause actual results to differ materially from those projected, expressed, or implied by such forward-looking statements.   These forward-looking statements may include, but are not limited to, statements about the effects of the COVID-19 pandemic on our revenues and financial operating results.  Our actual results could differ materially, and potentially adversely, from those discussed or implied herein.

We caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed in our SEC filings, including our most recent Annual Report on Form 10-K filed with the SEC on March 30, 2020. These filings are available online at www.sec.gov or www.PRTH.com.

We caution you that the important factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences we anticipate or affect us or our operations in the way we expect. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance. The forward-looking statements included in this press release are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements.

PRIORITY TECHNOLOGY HOLDINGS, INC. Condensed Consolidated Statements of Operations Unaudited
(in thousands, except per share amounts)	Three Months Ended December 31,								Year Ended December 31,
	2020				2019				2020				2019
REVENUES	$	106,091			$	98,183			$	404,342			$	371,854
OPERATING EXPENSES:
Costs of services	73,641				66,742				277,374				252,569
Salary and employee benefits	9,812				10,291				39,507				42,214
Depreciation and amortization	9,889				10,329				40,775				39,092
Selling, general and administrative	6,520				9,764				25,825				30,795
Total operating expenses	99,862				97,126				383,481				364,670
Income from operations	6,229				1,057				20,861				7,184
OTHER (EXPENSES) INCOME:
Interest expense	(9,385)				(10,051)				(44,839)				(40,653)
Debt extinguishment and modification costs	—				—				(1,899)				—
Gain on sale of business	—				—				107,239				—
Other income, net	182				187				596				710
Total other (expenses) income, net	(9,203)				(9,864)				61,097				(39,943)
(Loss) income before income taxes	(2,974)				(8,807)				81,958				(32,759)
Income tax (benefit) expense	(2,020)				(1,638)				10,899				830
Net (loss) income	(954)				(7,169)				71,059				(33,589)
Less net income attributable to non-controlling interests	(50)				—				(45,398)				—
Net (loss) income attributable to stockholders of Priority Technology Holdings, Inc.	$	(1,004)			$	(7,169)			$	25,661			$	(33,589)
Income (loss) per common share:
Basic and diluted	$	(0.01)			$	(0.11)			$	0.38			$	(0.50)
Weighted-average common shares and equivalents:
Basic	67,288				67,019				67,158				67,086
Diluted	67,532				67,019				67,263				67,086

 

PRIORITY TECHNOLOGY HOLDINGS, INC.  Condensed Consolidated Balance Sheets
(in thousands)	Unaudited
	December 31, 2020				December 31, 2019
ASSETS
Current assets:
Cash	$	9,241			$	3,234
Restricted cash	78,879				47,231
Accounts receivable, net of allowance for doubtful accounts	41,321				37,993
Prepaid expenses and other current assets	3,500				3,897
Current portion of notes receivable	2,190				1,326
Settlement assets	753				533
Total current assets	135,884				94,214
Notes receivable, less current portion	5,527				4,395
Property, equipment and software, net	22,875				23,518
Goodwill	106,832				109,515
Intangible assets, net	98,057				182,826
Deferred income taxes, net	46,697				49,657
Other non-current assets	1,957				380
Total assets	$	417,829			$	464,505
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable and accrued expenses	$	29,821			$	26,965
Accrued residual commissions	23,824				19,315
Customer deposits and advance payments	2,883				4,928
Current portion of long-term debt	19,442				4,007
Settlement obligations	72,878				37,789
Total current liabilities	148,848				93,004
Long-term debt, net of current portion, discounts and debt issuance costs	357,873				485,578
Other non-current liabilities	9,672				6,612
Total long-term liabilities	367,545				492,190
Total liabilities	516,393				585,194
Stockholders' deficit:
Preferred stock	—				—
Common stock	68				68
Treasury stock, at cost	(2,388)				(2,388)
Additional paid-in capital	5,769				3,651
Accumulated deficit	(102,013)				(127,674)
Total Priority Technology Holdings, Inc. stockholders' deficit	(98,564)				(126,343)
Non-controlling interest in subsidiary	—				5,654
Total stockholders' deficit	(98,564)				(120,689)
Total liabilities and stockholders' deficit	$	417,829			$	464,505

 

PRIORITY TECHNOLOGY HOLDINGS, INC. Condensed Consolidated Statements of Cash Flows Unaudited
(in thousands)	Year Ended December 31,
	2020				2019
Cash flows from operating activities:
Net income (loss)	$	71,059			$	(33,589)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Gain recognized on sale of business	(107,239)				—
Transaction costs upon sale of business	(5,383)				—
Depreciation and amortization of assets	40,775				39,092
Equity-classified and liability-classified stock compensation	2,430				3,652
Amortization of debt issuance costs and discounts	2,396				1,667
Deferred income tax expense, net of change in allowance	2,960				765
Payment-in-kind interest	8,573				5,126
Write off of deferred loan costs and discount	1,523				—
Impairment charges for intangible assets	1,753				—
Other non-cash items, net	84				(1,428)
Change in operating assets and liabilities, excluding business sale:
Accounts receivable	(5,160)				(1,736)
Settlement assets and obligations, net	34,870				27,284
Prepaid expenses and other current assets	65				(1,230)
Notes receivable	(2,230)				(390)
Accounts payable and other accrued liabilities	1,343				(1,061)
Customer deposits and advance payments	(2,045)				1,646
Other assets and liabilities, net	1,298				(434)
Net cash provided by operating activities	47,072				39,364
Cash flows from investing activities:
Sale of business	179,416				—
Additions to property, equipment and software	(7,461)				(11,118)
Acquisitions of intangible assets	(5,559)				(82,945)
Notes receivable loan funding	—				(3,500)
Other investing activity	—				(184)
Net cash provided by (used in) investing activities	166,396				(97,747)
Cash flows from financing activities:
Proceeds from issuance of long-term debt, net of issue discount	—				69,650
Repayments of long-term debt	(110,507)				(3,828)
Profit distributions to non-controlling interests of subsidiaries	(45,398)				—
Borrowings under revolving credit facility	7,000				14,000
Repayments under revolving credit facility	(18,505)				(2,500)
Debt issuance and modification costs (paid) refunded	(2,749)				83
Redemption of redeemable non-controlling interest of subsidiary	(5,654)				—
Repurchases of common stock	—				(2,388)
Net cash (used in) provided by financing activities	(175,813)				75,017
Net change in cash and restricted cash:
Net increase in cash and restricted cash	37,655				16,634
Cash and restricted cash at beginning of year	50,465				33,831
Cash and restricted cash at end of year	$	88,120			$	50,465

 

PRIORITY TECHNOLOGY HOLDINGS, INC. Reportable Segments' Results Unaudited
(in thousands)		Three Months Ended December 31,							Year Ended December 31,
		2020			2019				2020			2019
Consumer Payments:
Revenue		$	100,777		$	87,394			$	367,816		$	330,599
Operating expenses		87,905			77,453				329,424			298,362
Income from operations		$	12,872		$	9,941			$	38,392		$	32,237
Operating margin		12.8		%	11.4		%		10.4		%	9.8		%
Depreciation and amortization		$	9,281		$	8,627			$	35,002		$	32,842
Key indicators:
Merchant bankcard processing dollar value		$	11,070,937		$	10,752,475			$	41,703,661		$	42,303,880
Merchant bankcard transaction volume		120,344			129,176				455,240			511,852
Commercial Payments:
Revenue		$	3,905		$	6,488			20,922			25,980
Operating expenses		4,390			6,264				19,999			26,871
Income (loss) from operations		$	(485)		$	224			$	923		$	(891)
Operating margin		(12.4)		%	3.5		%		4.4		%	(3.4)		%
Depreciation and amortization		$	75		$	75			$	306		$	323
Key indicators:
Merchant bankcard processing dollar value		$	53,775		$	75,626			$	249,004		$	312,342
Merchant bankcard transaction volume		29			25				99			109
Integrated Partners:
Revenue		$	1,409		$	4,301			$	15,604		$	15,275
Operating expenses		1,471			4,918				14,200			14,550
Income from operations		$	(62)		$	(617)			$	1,404		$	725
Operating margin		(4.4)		%	(14.3)		%		9.0		%	4.7		%
Depreciation and amortization		$	251		$	1,312			$	4,299		$	4,398
Key indicators:
Merchant bankcard processing dollar value		$	11,940		$	126,207			$	364,084		$	386,101
Merchant bankcard transaction volume		109			467				1,316			1,380
Income from operations of reportable segments		$	12,325		$	9,548			$	40,719		$	32,071
Less:  Corporate expense		(6,096)			(8,491)				(19,858)			(24,887)
Consolidated income from operations		$	6,229		$	1,057			$	20,861		$	7,184
Corporate depreciation and amortization		$	282		$	315			$	1,168		$	1,529
Key indicators:
Merchant bankcard processing dollar value		$	11,136,652		$	10,954,308			$	42,316,749		$	43,002,323
Merchant bankcard transaction volume		120,482			129,668				456,655			513,341

 

PRIORITY TECHNOLOGY HOLDINGS, INC. Results With and Without RentPayment Unaudited
	(in thousands)												(in thousands)
	Twelve Months Ended December 31, 2020												Twelve Months Ended December 31, 2019
	Consolidated				RentPayment				Excl RentPayment				Consolidated				RentPayment				Excl RentPayment
Revenues	$	404,342			$	12,042			$	392,300			$	371,854			$	11,694			$	360,160
Operating Expenses:
Costs of services	277,374				1,362				276,012				252,569				1,166				251,403
Salary and employee benefits	39,507				1,649				37,858				42,214				882				41,332
Depreciation and amortization	40,775				3,668				37,107				39,092				4,031				35,061
Selling, general and administrative	25,825				3,538				22,287				30,795				3,340				27,455
Total operating expenses	383,481				10,217				373,264				364,670				9,419				355,251
Income from operations	20,861				1,825				19,036				7,184				2,275				4,909
Depreciation and amortization	40,775				3,668				37,107				39,092				4,031				35,061
Other income, net	807				—				807				710				—				710
Net income attributable to NCIs	(250)				—				(250)				—				—				—
Non-cash stock-based compensation	2,430				—				2,430				3,652				—				3,652
Legal and professional fees	1,941				—				1,941				6,353				—				6,353
Legal settlements	(719)				100				(819)				(377)				—				(377)
Acquisition integration services	2,628				2,628				—				2,910				2,910				—
Intangible carrying value adjustment	1,753				—				1,753				—				—				—
Change in FV of contingent consideration	(360)				—				(360)				(620)				—				(620)
Write-down of note receivable	467				—				467				—				—				—
Adjusted EBITDA	$	70,333			$	8,221			$	62,112			$	58,904			$	9,216			$	49,688

 

PRIORITY TECHNOLOGY HOLDINGS, INC. Results With and Without RentPayment Unaudited
	(in thousands)												(in thousands)
	Fourth Quarter 2020												Fourth Quarter 2019
	Consolidated				RentPayment (1)				Excl RentPayment				Consolidated				RentPayment				Excl RentPayment
Revenues	$	106,091			$	(76)			$	106,167			$	98,183			$	3,636			$	94,547
Operating Expenses:
Costs of services	73,641				(7)				73,648				66,742				362				66,380
Salary and employee benefits	9,812				23				9,789				10,291				441				9,850
Depreciation and amortization	9,889				—				9,889				10,329				1,208				9,121
Selling, general and administrative	6,520				(113)				6,633				9,764				1,935				7,829
Total operating expenses	99,862				(97)				99,959				97,126				3,946				93,180
Income (loss) from operations	6,229				21				6,208				1,057				(310)				1,367
Depreciation and amortization	9,889				—				9,889				10,329				1,208				9,121
Other income, net	182				—				182				187				—				187
Net income attributable to NCIs	(50)				—				(50)				—				—				—
Non-cash stock-based compensation	803				—				803				298				—				298
Legal and professional fees	416				—				416				3,173				—				3,173
Legal settlements	3				—				3				34				—				34
Acquisition integration services	(119)				(119)				—				1,723				1,723				—
Intangible carrying value adjustment	773				—				773				—				—				—
Change in FV of contingent consideration	(360)				—				(360)				(620)				—				(620)
Write-down of note receivable	467				—				467				—				—				—
Adjusted EBITDA	$	18,233			$	(98)			$	18,331			$	16,181			$	2,621			$	13,560

(1)	RentPayment activity in the fourth quarter of 2020 relates to finalization of pre-sale operations.

 

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SOURCE Priority Technology Holdings, Inc.

FAQ

What were Priority Technology Holdings' Q4 2020 revenue figures?

Priority Technology Holdings reported Q4 2020 revenue of $106.1 million, an 8.1% increase from Q4 2019.

How did Priority Technology's net income change in Q4 2020 compared to Q4 2019?

The company reported a net loss of $1.0 million in Q4 2020, an improvement from a net loss of $7.2 million in Q4 2019.

What is the total net leverage ratio of Priority Technology Holdings as of December 31, 2020?

As of December 31, 2020, Priority Technology's total net leverage ratio was 5.85x.

What was the adjusted EBITDA for Priority Technology Holdings in Q4 2020?

The adjusted EBITDA for Q4 2020 was $18.2 million, reflecting a 12.7% increase from the prior year.

What guidance did Priority Technology provide for 2021?

The company anticipates strong financial performance in 2021, driven by growth in its core acquiring business and complementary payment assets.