Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.19.1
Segment Information
3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION

The Company has two reportable segments that are reviewed by the Company's chief operating decision maker ("CODM"), who is the Company's President, Chief Executive Officer and Chairman. The Consumer Payments operating segment is one reportable segment. The Commercial Payments, Institutional Services, and Integrated Partners operating segments are aggregated into one reportable segment, Commercial Payments and Managed Services.

Consumer Payments – represents consumer-related services and offerings including merchant acquiring and transaction processing services including the proprietary MX enterprise suite. Either through acquisition of merchant portfolios or through resellers, the Company becomes a party or enters into contracts with a merchant and a sponsor bank. Pursuant to the contracts, for each card transaction, the sponsor bank collects payment from the credit, debit or other payment card issuing bank, net of interchange fees due to the issuing bank, pays credit card association (e.g., Visa, MasterCard) assessments and pays the transaction fee due to the Company for the suite of processing and related services it provides to merchants, with the remainder going to the merchant.

Commercial Payments and Managed Services – represents services provided to certain enterprise customers, including outsourced sales force to those customers and accounts payable automation services to commercial customers. Additional payment and payment adjacent services are provided to the health care and residential real estate industries.


Corporate includes costs of corporate functions and shared services not allocated to our reportable segments. During the fourth quarter of 2018, the Company adjusted its methodology of allocating certain corporate overhead costs to its reportable segments. All prior periods presented have been adjusted to reflect the current allocation methodology.

Information on segments and reconciliations to consolidated revenues, consolidated income (loss) from operations, and consolidated depreciation and amortization are as follows for the periods presented:

 
 
Quarter Ended March 31,
(in thousands)
 
2019
 
2018
Revenues:
 
 
 
 
Consumer Payments
 
$
89,822

 
$
108,981

Commercial Payments and Managed Services
 
10,155

 
6,615

Consolidated Revenues
 
$
99,977

 
$
115,596

 
 
 
 
 
Income (loss) from operations:
 
 
 
 
Consumer Payments
 
$
7,719

 
$
15,215

Commercial Payments and Managed Services
 
(684
)
 
(327
)
Corporate
 
(6,069
)
 
(7,010
)
Consolidated income from operations
 
$
966

 
$
7,878

 
 
 
 
 
Depreciation and amortization:
 
 
 
 
Consumer Payments
 
$
7,808

 
$
3,436

Commercial Payments and Managed Services
 
789

 
140

Corporate
 
328

 
191

Consolidated depreciation and amortization
 
$
8,925

 
$
3,767




A reconciliation of total income from operations of reportable segments to the Company's net loss is provided in the following table:

(in thousands)
 
Quarter Ended March 31,
 
 
2019
 
2018
 
 
 
 
 
Total income from operations of reportable segments
 
$
7,035

 
$
14,888

Less Corporate
 
(6,069
)
 
(7,010
)
Less interest expense
 
(9,363
)
 
(6,929
)
Plus (less) other, net
 
227

 
(4,126
)
Income tax benefit
 
(1,724
)
 

     Net loss
 
$
(6,446
)
 
$
(3,177
)


The Company is not significantly reliant upon any single customer for the quarters ended March 31, 2019 and 2018. Substantially all revenues are generated in the United States.