Priority Technology Holdings, Inc. to Participate in the 33rd Annual Roth Conference on March 15, 2021

In Advance of the Scheduled Release of Financial Results on March 16, 2021, Unaudited 2020 Financial Results and 2021 Financial Guidance are Being Disclosed

ALPHARETTA, Ga., March 10, 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 that it is participating in the 33rd Annual Roth Conference on March 15, 2021.  Priority's Chairman and Chief Executive Officer Tom Priore and other company representatives will participate in one-on-one meetings with investors and analysts during the conference. To schedule a one-on-one meeting with Priority, please contact your Roth representative. A copy of the investor presentation will be available on our website on March 15, 2021. In these meetings, the Company may be discussing the following unaudited fourth quarter and full year 2020 financial results and financial guidance for 2021.

Fourth Quarter 2020 Unaudited Results
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.
  • Adjusted EBITDA (a non-GAAP measure1) of $18.2 million increased 12.7% from $16.2 million.

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

  • Revenue increased 12.3% from $94.5 million.
  • Adjusted EBITDA (a non-GAAP measure1) increased 35.2% from $13.6 million.

Full Year 2020 Unaudited Results
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.
  • 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.  The results for full year 2020 compared with the results for full year 2019, excluding the RentPayment business, are as follows:

  • Revenue of $392.3 million increased 8.9% from $360.2 million.
  • Adjusted EBITDA (a non-GAAP measure1) of $62.1 million increased 25.0% from $49.7 million.

Full Year 2021 Financial Guidance
The Company expects the full year 2021 results, before any increases related to its anticipated acquisition of Finxera Holdings, Inc., to include:

  • Revenue in a range between $450 to $470 million, a growth of 15% to 20% above 2020 revenue of $392.3 million, excluding RentPayment.
  • Adjusted EBITDA (a non-GAAP measure1) in a range between $76 to $80 million, a growth of 22% to 29% above 2020 adjusted EBITDA of $62.1 million, excluding RentPayment.

(1) See "Non-GAAP Financial Measures" and the reconciliations of Adjusted EBITDA to their most comparable GAAP measures provided within the attached financial schedules.

Results With and Without RentPayment

Summary reconciliations of actual financial results for each quarter and full year 2020 (unaudited) and 2019 with actual results excluding the RentPayment business sold in September 2020 are included within the attached financial schedules.

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.

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 within the attached financial schedules.

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.

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," "anticipates," "outlook" or words of similar meaning. These forward-looking statements include, but are not limited to, our 2021 outlook.  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 Securities and Exchange Commission ("SEC") filings, including our Annual Report on Form 10-K and our Quarterly Report on Form 10-Q filed with the SEC on March 30, 2020 and November 13, 2020, respectively. 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.

Non-GAAP Financial Measures

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.

Non-GAAP Financial Measures

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.

 

PRIORITY TECHNOLOGY HOLDINGS, INC.

Non-GAAP Financial Measures

Unaudited 


























(in thousands)


(in thousands)


Third Quarter 2020


Third Quarter 2019


Consolidated


RentPayment


Excl RentPayment


Consolidated


RentPayment


Excl RentPayment













Revenues

$

108,962



$

3,883



$

105,079



$

93,883



$

3,652



$

90,231














Operating Expenses:












Costs of services

74,971



497



74,474



63,718



342



63,376


Salary and employee benefits

10,010



580



9,430



10,668



395



10,273


Depreciation and amortization

10,251



1,238



9,013



10,077



1,206



8,871


Selling, general and administrative

6,688



1,261



5,427



6,695



592



6,103


Total operating expenses

101,920



3,576



98,344



91,158



2,535



88,623














Income from operations

7,042



307



6,735



2,725



1,117



1,608














Depreciation and amortization

10,251



1,238



9,013



10,077



1,206



8,871


Other income, net

190





190



158





158


Net income attributable to NCIs

(200)





(200)








Non-cash stock-based compensation

601





601



1,171





1,171


Legal and professional fees

560





560



853





853


Legal settlements

(801)





(801)



(100)





(100)


Acquisition integration services

1,012



1,012





441



441




Intangible carrying value adjustment

980





980




















Adjusted EBITDA

$

19,635



$

2,557



$

17,078



$

15,325



$

2,764



$

12,561


 

PRIORITY TECHNOLOGY HOLDINGS, INC.

Non-GAAP Financial Measures

Unaudited 






(in thousands)


(in thousands)


Second Quarter 2020


Second Quarter 2019


Consolidated


RentPayment


Excl RentPayment


Consolidated


RentPayment


Excl RentPayment













Revenues

$

92,356



$

4,391



$

87,965



$

92,142



$

3,336



$

88,806














Operating Expenses:












Costs of services

62,398



498



61,900



62,003



351



61,652


Salary and employee benefits

9,556



507



9,049



10,356



45



10,311


Depreciation and amortization

10,363



1,214



9,149



9,761



1,152



8,609


Selling, general and administrative

6,008



1,231



4,777



7,586



798



6,788


Total operating expenses

88,325



3,450



84,875



89,706



2,346



87,360














Income from operations

4,031



941



3,090



2,436



990



1,446














Depreciation and amortization

10,363



1,214



9,149



9,761



1,152



8,609


Other income, net

194





194



138





138


Non-cash stock-based compensation

688





688



1,023





1,023


Legal and professional fees

469





469



1,141





1,141


Legal settlements

77



100



(23)



(311)





(311)


Acquisition integration services

839



839





747



747
















Adjusted EBITDA

$

16,661



$

3,094



$

13,567



$

14,935



$

2,889



$

12,046


 

PRIORITY TECHNOLOGY HOLDINGS, INC.

Non-GAAP Financial Measures

Unaudited 






(in thousands)


(in thousands)


First Quarter 2020


First Quarter 2019


Consolidated


RentPayment


Excl RentPayment


Consolidated


RentPayment


Excl RentPayment













Revenues

$

96,933



$

3,844



$

93,089



$

87,646



$

1,070



$

86,576














Operating Expenses:












Costs of services

66,364



374



65,990



60,106



111



59,995


Salary and employee benefits

10,129



539



9,590



10,899



1



10,898


Depreciation and amortization

10,272



1,216



9,056



8,925



465



8,460


Selling, general and administrative

6,609



1,159



5,450



6,750



15



6,735


Total operating expenses

93,374



3,288



90,086



86,680



592



86,088














Income from operations

3,559



556



3,003



966



478



488














Depreciation and amortization

10,272



1,216



9,056



8,925



465



8,460


Other income, net

241





241



227





227


Non-cash stock-based compensation

338





338



1,160





1,160


Legal and professional fees

496





496



1,185





1,185


Legal settlements

2





2








Acquisition integration services

896



896






















Adjusted EBITDA

$

15,804



$

2,668



$

13,136



$

12,463



$

943



$

11,520


 

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SOURCE Priority Technology Holdings, Inc.