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Priority Technology Holdings, Inc. Announces Second Quarter Financial Results

Strong Second Quarter Growth Driven by Performance Across Unified Commerce Platform

Priority Technology Holdings, Inc. (NASDAQ: PRTH) ("Priority" or the "Company"), the platform for unified commerce that delivers integrated payments and banking services at scale, today announced its second quarter 2024 financial results including strong year-over-year diversified revenue growth.

Highlights of Consolidated Results

Second Quarter 2024 Compared with Second Quarter 2023

  • Financial highlights of the second quarter of 2024 compared with the second quarter of 2023, are as follows1:
  • Revenue of $219.9 million increased 20.6% from $182.3 million
  • Adjusted gross profit (a non-GAAP measure2) of $81.7 million increased 22.0% from $67.0 million
  • Adjusted gross profit margin (a non-GAAP measure2) of 37.2% increased 40.0 basis points from 36.8%
  • Operating income of $33.2 million increased 73.4% from $19.1 million
  • Adjusted EBITDA (a non-GAAP measure2) of $51.6 million increased 25.4% from $41.1 million

(1)

Certain amounts/percentages may not add mathematically due to rounding.

(2)

See "Non-GAAP Financial Measures" and the reconciliations of Adjusted Gross Profit (non-GAAP), Adjusted Gross Profit Margin (non-GAAP), and Adjusted EBITDA, to their most comparable GAAP measures provided below for additional information.

"We again reported record results in the second quarter by capitalizing on our leading unified commerce platform that delivers elegant product solutions across our segments and customer service that is committed to our partners' success," said Tom Priore, Chairman & CEO of Priority. "Priority’s technology and operations are built for the future and executing on our mission to deliver a thriving ecosystem of financial solutions that accelerate cash flow and optimize working capital for businesses."

Full Year 2024 Financial Guidance

Priority's outlook remains strong and our adjusted full year 2024 guidance is as follows:

  • Revenue forecast to range between $875 million to $883 million, from $875 million to $890 million, a growth rate of 16% to 17%, compared to fiscal 2023 results
  • Adjusted gross profit (a non-GAAP measure) forecast to range between $325 million to $330 million, from $325 million and $335 million, a growth rate of 18% to 20% compared to fiscal 2023 results
  • Adjusted EBITDA (a non-GAAP measure) forecast to range between $196 million to $200 million, from $193 million to $198 million, a growth rate of 17% to 19% compared to fiscal 2023 results

Conference Call

Priority's leadership will host a conference call on Thursday, August 8, 2024 at 11:00 a.m. EDT to discuss its second quarter financial results. Participants can access the call by phone in the U.S. or Canada at (833) 636-1319 or internationally at (412) 902-4286.

The Internet webcast link and accompanying slide presentation can be accessed at https://edge.media-server.com/mmc/p/ds7wmbnk and will also be posted in the "Investor Relations" section of the Company's website at www.prioritycommerce.com.

An audio replay of the call will be available shortly after the conference call until August 15, 2024 at 2:00 p.m. EDT. To listen to the audio replay, dial (877) 344-7529 or (412) 317-0088 and enter conference ID number 2689178. Alternatively, you may access the webcast replay in the "Investor Relations" section of the Company's website at www.prioritycommerce.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.

Adjusted Gross Profit and Adjusted Gross Profit Margin

The Company's adjusted gross profit metric represents revenues less cost of revenue (excluding depreciation and amortization). Adjusted gross profit margin is adjusted gross profit divided by revenues. We review these non-GAAP measures to evaluate our underlying profit trends. The reconciliation of adjusted gross profit to its most comparable GAAP measure is provided below:

 

 

 

 

(in thousands)

Three Months Ended June 30,

 

2024

 

2023

Revenues

$

219,867

 

 

$

182,290

 

Cost of revenue (excluding depreciation and amortization)

 

(138,118

)

 

 

(115,281

)

Adjusted gross profit

$

81,749

 

 

$

67,009

 

Adjusted gross profit margin

 

37.2

%

 

 

36.8

%

Depreciation and amortization of revenue generating assets

 

(3,941

)

 

 

(3,030

)

Gross profit

$

77,808

 

 

$

63,979

 

Gross profit margin

 

35.4

%

 

 

35.1

%

EBITDA and 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. 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.

The reconciliation of adjusted EBITDA to its most comparable GAAP measure is provided below:

(in thousands)

Three Months Ended June 30,

 

2024

 

2023

Net income (loss)

$

994

 

$

(612

)

Interest expense

 

21,710

 

 

17,765

 

Income tax expense

 

2,515

 

 

2,355

 

Depreciation and amortization

 

15,244

 

 

17,980

 

EBITDA

 

40,463

 

 

37,488

 

Debt extinguishment and modification

 

8,623

 

 

 

Selling, general and administrative (non-recurring)

 

636

 

 

1,859

 

Non-cash stock-based compensation

 

1,829

 

 

1,746

 

Adjusted EBITDA

$

51,551

 

$

41,093

 

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 June 30,

 

2024

 

2023

Selling, general and administrative expenses (non-recurring):

 

 

 

Certain legal fees

 

204

 

 

1,221

Professional, accounting and consulting fees

 

310

 

 

509

Other expenses, net

 

122

 

 

129

 

$

636

 

$

1,859

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 solution provider in Payments and Banking as a Service operating at scale with over 1 million active customers across its SMB, B2B and Enterprise channels processing $125 billion in annual transaction volume and providing administration for $1 billion in deposits. Priority’s purpose-built technology enables clients to collect, store, lend and send money and provides customers the acceptance and AP payment applications and Passport financial tools that best optimize their cash flow and maximize working capital. Additional information can be found at www.prioritycommerce.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, our 2024 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. 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 12, 2024. These filings are available online at www.sec.gov or www.prioritycommerce.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.

Unaudited Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except per share amounts)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

Revenues

$

219,867

 

 

$

182,290

 

 

$

425,586

 

 

$

367,318

 

Operating expenses

 

 

 

 

 

 

 

Cost of revenue (excludes depreciation and amortization)

 

138,118

 

 

 

115,281

 

 

 

267,416

 

 

 

237,247

 

Salary and employee benefits

 

22,119

 

 

 

19,109

 

 

 

44,269

 

 

 

38,157

 

Depreciation and amortization

 

15,244

 

 

 

17,980

 

 

 

30,497

 

 

 

36,028

 

Selling, general and administrative

 

11,212

 

 

 

10,787

 

 

 

22,207

 

 

 

19,905

 

Total operating expenses

 

186,693

 

 

 

163,157

 

 

 

364,389

 

 

 

331,337

 

Operating income

 

33,174

 

 

 

19,133

 

 

 

61,197

 

 

 

35,981

 

Other (expense) income

 

 

 

 

 

 

 

Interest expense

 

(21,710

)

 

 

(17,765

)

 

 

(42,590

)

 

 

(35,464

)

Debt extinguishment and modification costs

 

(8,623

)

 

 

 

 

 

(8,623

)

 

 

 

Other income, net

 

668

 

 

 

375

 

 

 

1,300

 

 

 

587

 

Total other expense, net

 

(29,665

)

 

 

(17,390

)

 

 

(49,913

)

 

 

(34,877

)

Income before income taxes

 

3,509

 

 

 

1,743

 

 

 

11,284

 

 

 

1,104

 

Income tax expense

 

2,515

 

 

 

2,355

 

 

 

5,097

 

 

 

2,222

 

Net income (loss)

 

994

 

 

 

(612

)

 

 

6,187

 

 

 

(1,118

)

Less: Dividends and accretion attributable to redeemable senior preferred stockholders

 

(18,565

)

 

 

(11,765

)

 

 

(31,227

)

 

 

(23,060

)

Less: Return on redeemable NCI in consolidated subsidiary

 

(58

)

 

 

 

 

 

(639

)

 

 

 

Net loss attributable to common stockholders

 

(17,629

)

 

 

(12,377

)

 

$

(25,679

)

 

$

(24,178

)

Other comprehensive loss

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

4

 

 

 

7

 

 

 

(9

)

 

 

31

 

Comprehensive loss

$

(17,625

)

 

$

(12,370

)

 

$

(25,688

)

 

$

(24,147

)

 

 

 

 

 

 

 

 

Loss per common share:

 

 

 

 

 

 

 

Basic and diluted

$

(0.23

)

 

$

(0.16

)

 

$

(0.33

)

 

$

(0.31

)

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

Basic and diluted

 

77,736

 

 

 

78,292

 

 

 

77,878

 

 

 

78,213

 

 

Priority Technology Holdings, Inc.

Unaudited Consolidated Balance Sheets

(in thousands)

 

 

 

 

 

June 30, 2024

 

December 31, 2023

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

34,626

 

 

$

39,604

 

Restricted cash

 

12,625

 

 

 

11,923

 

Accounts receivable, net of allowances

 

65,746

 

 

 

58,551

 

Prepaid expenses and other current assets

 

19,479

 

 

 

13,273

 

Current portion of notes receivable, net of allowance

 

2,188

 

 

 

1,468

 

Settlement assets and customer/subscriber account balances

 

802,394

 

 

 

756,475

 

Total current assets

 

937,058

 

 

 

881,294

 

Notes receivable, less current portion

 

4,998

 

 

 

3,728

 

Property, equipment and software, net

 

49,800

 

 

 

44,680

 

Goodwill

 

376,091

 

 

 

376,103

 

Intangible assets, net

 

258,632

 

 

 

273,350

 

Deferred income taxes, net

 

25,556

 

 

 

22,533

 

Other noncurrent assets

 

21,294

 

 

 

13,649

 

Total assets

$

1,673,429

 

 

 

1,615,337

 

Liabilities, Redeemable Senior Preferred Stock, Redeemable NCI, and Stockholders' Deficit

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued expenses

$

66,724

 

 

$

52,643

 

Accrued residual commissions

 

36,091

 

 

 

33,025

 

Customer deposits and advance payments

 

3,569

 

 

 

3,934

 

Current portion of long-term debt

 

8,350

 

 

 

6,712

 

Settlement and customer/subscriber account obligations

 

798,753

 

 

 

755,754

 

Total current liabilities

 

913,487

 

 

 

852,068

 

Long-term debt, net of current portion, discounts and debt issuance costs

 

809,045

 

 

 

631,965

 

Other noncurrent liabilities

 

15,488

 

 

 

18,763

 

Total liabilities

 

1,738,020

 

 

 

1,502,796

 

Redeemable senior preferred stock, net of discounts and issuance costs

 

105,684

 

 

 

258,605

 

Stockholders' deficit:

 

 

 

Preferred stock

 

 

 

 

 

Common stock

 

76

 

 

 

77

 

Treasury stock, at cost

 

(18,673

)

 

 

(12,815

)

Additional paid-in capital

 

 

 

 

 

Accumulated other comprehensive loss

 

(38

)

 

 

(29

)

Accumulated deficit

 

(153,472

)

 

 

(134,951

)

Total stockholders' deficit attributable to stockholders of PRTH

 

(172,107

)

 

 

(147,718

)

Non-controlling interest

 

1,832

 

 

 

1,654

 

Total stockholders' deficit

 

(170,275

)

 

 

(146,064

)

Total liabilities, redeemable senior preferred stock, redeemable NCI and stockholders' deficit

$

1,673,429

 

 

$

1,615,337

 

 

Priority Technology Holdings, Inc.

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

 

Six Months Ended June 30,

 

2024

 

2023

Cash flows from operating activities:

 

 

 

Net income (loss)

$

6,187

 

 

$

(1,118

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization of assets

 

30,497

 

 

 

36,028

 

Stock-based, ESPP and incentive units compensation

 

3,462

 

 

 

3,682

 

Amortization of debt issuance costs and discounts

 

1,824

 

 

 

1,826

 

Debt extinguishment and modification costs

 

8,623

 

 

 

 

Deferred income tax

 

(3,023

)

 

 

(9,619

)

Change in contingent consideration

 

2,213

 

 

 

346

 

Other non-cash items, net

 

(929

)

 

 

(461

)

Change in operating assets and liabilities:

 

 

 

Accounts receivable

 

(7,145

)

 

 

18,066

 

Prepaid expenses and other current assets

 

(1,148

)

 

 

(3,560

)

Income taxes (receivable) payable

 

(5,037

)

 

 

498

 

Notes receivable

 

(584

)

 

 

(389

)

Accounts payable and other accrued liabilities

 

13,291

 

 

 

1,306

 

Customer deposits and advance payments

 

(365

)

 

 

635

 

Other assets and liabilities, net

 

(5,859

)

 

 

(383

)

Net cash provided by operating activities

 

42,007

 

 

 

46,857

 

Cash flows from investing activities:

 

 

 

Additions to property, equipment and software

 

(11,718

)

 

 

(9,869

)

Notes receivable, net

 

(1,406

)

 

 

(498

)

Acquisitions of assets and other investing activities

 

(7,474

)

 

 

(2,715

)

Net cash used in investing activities

 

(20,598

)

 

 

(13,082

)

Cash flows from financing activities:

 

 

 

Proceeds from issuance of long-term debt, net of issue discount

 

830,200

 

 

 

 

Debt issuance and modification costs paid

 

(7,555

)

 

 

 

Repayments of long-term debt

 

(654,372

)

 

 

(3,525

)

Borrowings under revolving credit facility

 

 

 

 

5,000

 

Repayments of borrowings under revolving credit facility

 

 

 

 

(12,000

)

Redemption of PHOT redeemable NCI

 

(2,130

)

 

 

 

Repurchases of shares withheld for taxes

 

(604

)

 

 

(1,018

)

Redemption of senior preferred stock

 

(136,936

)

 

 

 

Redemption of accumulated unpaid dividend on redeemable senior preferred stock

 

(30,819

)

 

 

 

Dividends paid to redeemable senior preferred stockholders

 

(16,393

)

 

 

(17,908

)

Settlement and customer/subscriber accounts obligations, net

 

40,914

 

 

 

175,548

 

Payment of contingent consideration related to business combination

 

(4,156

)

 

 

(1,959

)

Net cash provided by financing activities

 

18,149

 

 

 

144,138

 

Net change in cash and cash equivalents and restricted cash:

 

 

 

Net increase in cash and cash equivalents, and restricted cash

 

39,558

 

 

 

177,913

 

Cash and cash equivalents and restricted cash at beginning of period

 

796,223

 

 

 

560,610

 

Cash and cash equivalents and restricted cash at end of period

$

835,781

 

 

$

738,523

 

 

 

 

 

Reconciliation of cash and cash equivalents, and restricted cash:

 

 

 

Cash and cash equivalents

$

34,626

 

 

$

17,567

 

Restricted cash

 

12,625

 

 

 

12,357

 

Cash and cash equivalents included in settlement assets and customer/subscriber account balances

 

788,530

 

 

 

708,599

 

Total cash and cash equivalents, and restricted cash

$

835,781

 

 

$

738,523

 

 

Priority Technology Holdings, Inc.

Unaudited Reportable Segments' Results

 

(in thousands)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

SMB Payments:

 

 

 

 

 

 

 

Revenues

$

155,101

 

$

147,948

 

$

299,105

 

$

302,881

Adjusted EBITDA

$

28,597

 

$

28,434

 

$

53,620

 

$

56,836

 

 

 

 

 

 

 

 

Key Indicators:

 

 

 

 

 

 

 

Merchant bankcard processing dollar value

$

15,791,635

 

$

15,111,781

 

$

30,579,730

 

$

30,332,495

Merchant bankcard transaction count

 

193,841

 

 

180,343

 

 

369,069

 

 

343,749

 

 

 

 

 

 

 

 

B2B Payments:

 

 

 

 

 

 

 

Revenues

$

21,881

 

$

2,974

 

$

43,225

 

$

5,760

Adjusted EBITDA

$

1,530

 

$

608

 

$

3,276

 

$

518

 

 

 

 

 

 

 

 

Key Indicators:

 

 

 

 

 

 

 

B2B issuing dollar volume

$

249,454

 

$

216,358

 

$

477,266

 

$

414,904

B2B issuing transaction count

 

242

 

 

282

 

 

482

 

 

562

 

 

 

 

 

 

 

 

Enterprise Payments:

 

 

 

 

 

 

 

Revenues

$

43,670

 

$

31,438

 

$

84,660

 

$

58,744

Adjusted EBITDA

$

37,244

 

$

25,728

 

$

71,971

 

$

48,096

 

 

 

 

 

 

 

 

Key Indicators:

 

 

 

 

 

 

 

Average billed clients

$

782,466

 

$

520,028

 

$

753,531

 

$

492,622

Average monthly new enrollments

 

55,089

 

 

53,374

 

 

53,563

 

 

49,661

 

Priority Technology Holdings, Inc.

Unaudited Reportable Segments' Results

 

 

 

Three Months Ended June 30, 2024

(in thousands)

 

SMB Payments

 

B2B Payments

 

Enterprise Payments

 

Corporate

 

Total Consolidated

Reconciliation of Adjusted EBITDA to GAAP Measure:

Adjusted EBITDA

 

$

28,597

 

 

$

1,530

 

 

$

37,244

 

 

$

(15,820

)

 

$

51,551

 

Interest expense

 

 

 

 

 

(1,241

)

 

 

 

 

 

(20,469

)

 

 

(21,710

)

Depreciation and amortization

 

 

(8,541

)

 

 

(1,261

)

 

 

(4,087

)

 

 

(1,355

)

 

 

(15,244

)

Debt modification and extinguishment expenses

 

 

 

 

 

 

 

 

 

 

 

(8,623

)

 

 

(8,623

)

Selling, general and administrative (non-recurring)

 

 

 

 

 

 

 

 

 

 

 

(636

)

 

 

(636

)

Non-cash stock based compensation

 

 

(4

)

 

 

(109

)

 

 

(32

)

 

 

(1,684

)

 

 

(1,829

)

Income (loss) before taxes

 

$

20,052

 

 

$

(1,081

)

 

$

33,125

 

 

$

(48,587

)

 

$

3,509

 

 

 

 

Six Months Ended June 30, 2024

(in thousands)

 

SMB Payments

 

B2B Payments

 

Enterprise Payments

 

Corporate

 

Total Consolidated

Reconciliation of Adjusted EBITDA to GAAP Measure:

Adjusted EBITDA

 

$

53,620

 

 

$

3,276

 

 

$

71,971

 

 

$

(30,976

)

 

$

97,891

 

Interest expense

 

 

 

 

 

(2,214

)

 

 

 

 

 

(40,376

)

 

 

(42,590

)

Depreciation and amortization

 

 

(17,127

)

 

 

(2,731

)

 

 

(8,126

)

 

 

(2,513

)

 

 

(30,497

)

Debt modification and extinguishment expenses

 

 

 

 

 

 

 

 

 

 

 

(8,623

)

 

 

(8,623

)

Selling, general and administrative (non-recurring)

 

 

 

 

 

 

 

 

 

 

 

(1,435

)

 

 

(1,435

)

Non-cash stock based compensation

 

 

(8

)

 

 

(227

)

 

 

(65

)

 

 

(3,162

)

 

 

(3,462

)

Income (loss) before taxes

 

$

36,485

 

 

$

(1,896

)

 

$

63,780

 

 

$

(87,085

)

 

$

11,284

 

.

 

Priority Technology Holdings, Inc.

Unaudited Reportable Segments' Results

 

 

 

Three Months Ended June 30, 2023

(in thousands)

 

SMB Payments

 

B2B Payments

 

Enterprise Payments

 

Corporate

 

Total Consolidated

Reconciliation of Adjusted EBITDA to GAAP Measure:

Adjusted EBITDA

 

$

28,434

 

 

$

608

 

 

$

25,728

 

 

$

(13,677

)

 

$

41,093

 

Interest expense

 

 

 

 

 

 

 

 

(117

)

 

 

(17,648

)

 

 

(17,765

)

Depreciation and amortization

 

 

(9,151

)

 

 

(17

)

 

 

(6,319

)

 

 

(2,493

)

 

 

(17,980

)

Selling, general and administrative (non-recurring)

 

 

 

 

 

 

 

 

 

 

 

(1,859

)

 

 

(1,859

)

Non-cash stock based compensation

 

 

(112

)

 

 

(7

)

 

 

(65

)

 

 

(1,562

)

 

 

(1,746

)

Income (loss) before taxes

 

$

19,171

 

 

$

584

 

 

$

19,227

 

 

$

(37,239

)

 

$

1,743

 

 

 

 

Six Months Ended June 30, 2023

(in thousands)

 

SMB Payments

 

B2B Payments

 

Enterprise Payments

 

Corporate

 

Total Consolidated

Reconciliation of Adjusted EBITDA to GAAP Measure:

Adjusted EBITDA

 

$

56,836

 

 

$

518

 

 

$

48,096

 

 

$

(26,717

)

 

$

78,733

 

Interest expense

 

 

 

 

 

 

 

 

(230

)

 

 

(35,234

)

 

 

(35,464

)

Depreciation and amortization

 

 

(18,417

)

 

 

(37

)

 

 

(12,624

)

 

 

(4,950

)

 

 

(36,028

)

Selling, general and administrative (non-recurring)

 

 

 

 

 

 

 

 

 

 

 

(2,296

)

 

 

(2,296

)

Non-cash stock based compensation

 

 

(294

)

 

 

(201

)

 

 

(129

)

 

 

(3,058

)

 

 

(3,682

)

Other non-recurring loss, net

 

 

 

 

 

 

 

 

 

 

 

(159

)

 

 

(159

)

Income (loss) before taxes

 

$

38,125

 

 

$

280

 

 

$

35,113

 

 

$

(72,414

)

 

$

1,104

 

Priority Technology Holdings, Inc.

Unaudited Reportable Segments' Results

 

Appendix 1 – Reconciliation of adjusted EBITDA (non-GAAP measure to the nearest GAAP measure) for select periods:

 

 

Three Months Ended March 31, 2024

(in thousands)

 

SMB Payments

 

B2B Payments

 

Enterprise Payments

 

Corporate

 

Total Consolidated

Reconciliation of Adjusted EBITDA to GAAP Measure:

Adjusted EBITDA

 

 

25,023

 

 

$

1,747

 

 

$

34,727

 

 

$

(15,157

)

 

$

46,340

 

Interest expense

 

 

(1

)

 

 

(973

)

 

 

 

 

 

(19,906

)

 

 

(20,880

)

Depreciation and amortization

 

 

(8,586

)

 

 

(1,470

)

 

 

(4,039

)

 

 

(1,158

)

 

 

(15,253

)

Selling, general and administrative (non-recurring)

 

 

 

 

 

 

 

 

 

 

 

(798

)

 

 

(798

)

Non-cash stock based compensation

 

 

(4

)

 

 

(118

)

 

 

(33

)

 

 

(1,479

)

 

 

(1,634

)

Income (loss) before taxes

 

 

16,432

 

 

$

(814

)

 

$

30,655

 

 

$

(38,498

)

 

$

7,775

 

 

 

 

Three Months Ended March 31, 2023

(in thousands)

 

SMB Payments

 

B2B Payments

 

Enterprise Payments

 

Corporate

 

Total Consolidated

Reconciliation of Adjusted EBITDA to GAAP Measure:

Adjusted EBITDA

 

$

28,402

 

 

$

(90

)

 

$

22,368

 

 

$

(13,040

)

 

$

37,640

 

Interest expense

 

 

 

 

 

 

 

 

(113

)

 

 

(17,586

)

 

 

(17,699

)

Depreciation and amortization

 

 

(9,267

)

 

 

(20

)

 

 

(6,305

)

 

 

(2,456

)

 

 

(18,048

)

Selling, general and administrative (non-recurring)

 

 

 

 

 

 

 

 

 

 

 

(437

)

 

 

(437

)

Non-cash stock based compensation

 

 

(182

)

 

 

(193

)

 

 

(64

)

 

 

(1,497

)

 

 

(1,936

)

Other non-recurring loss, net

 

 

 

 

 

 

 

 

 

 

 

(159

)

 

 

(159

)

Income (loss) before taxes

 

$

18,953

 

 

$

(303

)

 

$

15,886

 

 

$

(35,175

)

 

$

(639

)

Priority Technology Holdings, Inc.

Unaudited Reportable Segments' Results

 

 

 

Three Months Ended September 30, 2023

(in thousands)

 

SMB Payments

 

B2B Payments

 

Enterprise Payments

 

Corporate

 

Total Consolidated

Reconciliation of Adjusted EBITDA to GAAP Measure:

Adjusted EBITDA

 

$

27,613

 

 

$

1,359

 

 

$

29,757

 

 

$

(13,767

)

 

$

44,962

 

Interest expense

 

 

 

 

 

(498

)

 

 

(62

)

 

 

(19,437

)

 

 

(19,997

)

Depreciation and amortization

 

 

(9,136

)

 

 

(719

)

 

 

(5,947

)

 

 

(1,473

)

 

 

(17,275

)

Selling, general and administrative (non-recurring)

 

 

 

 

 

 

 

 

 

 

 

(2,114

)

 

 

(2,114

)

Non-cash stock based compensation

 

 

(114

)

 

 

(36

)

 

 

(66

)

 

 

(1,285

)

 

 

(1,501

)

Other non-recurring gain, net

 

 

 

 

 

 

 

 

 

 

 

166

 

 

 

166

 

Income (loss) before taxes

 

$

18,363

 

 

$

106

 

 

$

23,682

 

 

$

(37,910

)

 

$

4,241

 

 

 

Three Months Ended December 31, 2023

(in thousands)

 

SMB Payments

 

B2B Payments

 

Enterprise Payments

 

Corporate

 

Total Consolidated

Reconciliation of Adjusted EBITDA to GAAP Measure:

Adjusted EBITDA

 

$

25,036

 

 

$

372

 

 

$

33,040

 

 

$

(13,811

)

 

$

44,637

 

Interest expense

 

 

 

 

 

(8032

 

 

 

(64

)

 

 

(19,780

)

 

 

(20,647

)

Depreciation and amortization

 

 

(9,162

)

 

 

(1,075

)

 

 

(3,856

)

 

 

(999

)

 

 

(15,092

)

Selling, general and administrative (non-recurring)

 

 

 

 

 

 

 

 

 

 

 

(5,256

)

 

 

(5,256

)

Non-cash stock based compensation

 

 

(131

)

 

 

(312

)

 

 

(66

)

 

 

(1,076

)

 

 

(1,585

)

Other non-recurring loss, net

 

 

 

 

 

 

 

 

 

 

 

(250

)

 

 

(250

)

Income (loss) before taxes

 

$

15,743

 

 

$

(1,818

)

 

$

29,054

 

 

$

(41,172

)

 

$

1,807

 

 

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