Repay Holdings Corporation · NASDAQ:RPAY
Repay — Q4 2019 Earnings Presentation
21 slides from Repay's earnings presentation, March 2020
Slide 1: REPAY Q4'19 / FY19 Earnings Supplement
REPAY Q419/ FY19 Earnings Supplement March 2020 HIGHLY CONFIDENTIAL – DO NOT DISTRIBUTE
Slide 2: Disclaimer
Disclaimer On July 11, 2019 (the “Closing Date”), Thunder Bridge Acquisition Ltd. (“Thunder Bridge”) and Hawk Parent Holdings LLC (“Hawk Parent”) completed their previously announced business combination under which Thunder Bridge acquired Hawk Parent, upon which Thunder Bridge changed its name to R
Slide 3: Section 1: Financial Update
Section 1: Financial Update
Slide 4: Financial Highlights
Financial Highlights Q4 2019 FY 2019 Card Payment $3.4Bn $10.7Bn Volume (+72%) (+44%) Total Revenue(1) $49.3MM $165.8MM (+45%) (+28%) Gross Profit(2) $24.3MM $78.7MM (+ 67%) (+43%) Adj. EBITDA $14.7MM $48.4MM (+ 52%) (+32%) (Represents Y-o-Y Growth) 1) Excludes impact from adoption of ASC 606 for co
Slide 5: Financial Update – Q4 2019
Financial Update – Q4 2019 ($MM) Card Payment Volume Gross Profit (1) Adjusted EBITDA 3,422 67% $24.3 1,988 $14.5 52% $14.7 $9.7 Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q4 2018 Q4 2019 % Margin (2) 68% 71% % Margin (2) 45% 43% 1) Gross Profit is defined as Total Revenue less Interchange and Network Fees and
Slide 6: Financial Update – FY 2019
Financial Update – FY 2019 ($MM) Card Payment Volume Gross Profit (1) Adjusted EBITDA $10,697 43% $78.7 $7,452 $55.0 32% $48.4 $36.8 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 % Margin (2) 67% 73% % Margin (2) 45% 45% 1) Gross Profit is defined as Total Revenue less Interchange and Network Fees
Slide 7: ASC 606 Impact
ASC 606 Impact Adoption of ASC 606 resulted in a decrease to revenue and cost of sales, but no impact to gross profit(1); this adoption does result in an increase to gross profit margins(2) Q4 2019 FY 2019 ASC 605 Adjustment ASC 606 ASC 605 Adjustment ASC 606 ($MM) Revenue Processing and service fee
Slide 8: Section 2: Strategy & Outlook
Section 2: Strategy & Outlook
Slide 9: Executing on Growth Plan
Executing on Growth Plan CONTINUE TO ADDRESS LARGE, UNDERSERVED LOAN REPAYMENT VERTICALS, SPECIFICALLY AUTO, AND INCREASE DEBIT PENETRATION WITH EXISTING CUSTOMERS ADDING NEW CUSTOMERS VIA DIRECT SALESFORCE ACROSS ALL VERTICALS INCREASED SOFTWARE PARTNER RELATIONSHIPS, ENDING 2019 WITH 70 ESTABLISHE
Slide 10: Multiple Levers to Continue to Drive Growth
Multiple Levers to Continue to Drive Growth Repay’s Leading Platform & Attractive Market Opportunity Position It To Build On Its Record Of Robust Growth & Profitability Strategic M&A Majority of growth Future Market derived from further Expansion penetration of existing Opportunities client base Ope
Slide 11: FY 2020 Outlook
FY 2020 Outlook FY 2020 Card Payment $15.5 – $16.0 billion Volume Total Revenue $155 – $165 million Gross Profit $115 – $120 million Adjusted EBITDA $66 – $70 million Note: Revenue information for the full year 2020 outlook is presented in accordance with Accounting Standards Codification (“ASC”) 60
Slide 12: FY 2020 Gross Profit Outlook Bridge
FY 2020 Gross Profit Outlook Bridge REPAY’s 2020 Gross Profit Outlook Represents ~50% Total Growth & ~20% Organic Growth ($MM) (2) $118 $24 $15 Growth from $79 Acquired Entities (+~30%) (1) Organic Growth (+~20%) 2019A 2020E 1) Includes full year contributions for TriSource and APS, and ~10.5 months
Slide 13: Section 3: Appendix
Section 3: Appendix
Slide 14: Q4 2019 Financial Update
Q4 2019 Financial Update Three Months Ended December 31, Change ($MM) 2019 2018 Amount % Card Payment Volume $3,422.1 $1,988.1 $1,433.9 72% Processing and Service Fees 34.2 21.4 12.8 60% Interchange and Network Fees 15.0 12.5 2.6 21% Total Revenue $49.3 $33.9 $15.4 45% Interchange and Network Fees 1
Slide 15: FY 2019 Financial Update
FY 2019 Financial Update Twelve months ended December 31, Change ($MM) 2019 2018 Amount % Card Payment Volume $10,696.7 $7,451.8 $3,244.9 44% Processing and Service Fees 108.2 82.2 26.0 32% Interchange and Network Fees 57.6 47.8 9.8 20% Total Revenue $165.8 $130.0 $35.8 28% Interchange and Network F
Slide 16: Income Statement – Historical
Income Statement – Historical ($MM) 2017A 2018A 2019A Card Payment Volume $5,248 $7,452 $10,697 YoY Growth 21% 42% 44% Processing and Service Fees $57.1 $82.2 $108.2 Interchange and Network Fees 36.9 47.8 57.6 Total Revenue $94.0 $130.0 $165.8 YoY Growth 14% 38% 28% Interchange and Network Fees 36.9
Slide 17: Adjusted EBITDA Reconciliation – Historical
Adjusted EBITDA Reconciliation – Historical Adjusted EBITDA Reconciliation ($MM) 2017A 2018A 2019A Q4 2019 Q4 2018 Net Income (Loss) $9.4 $10.5 ($39.9) ($7.5) $2.1 Interest Expense 5.7 6.1 9.1 3.2 1.6 Depreciation and Amortization 7.5 10.4 14.6 4.9 2.8 (1) Income Tax Expense (Benefit) - - (5.0) (2.3
Slide 18: Adjusted Net Income Reconciliation – Historical
Adjusted Net Income Reconciliation – Historical Adjusted Net Income Reconciliation ($MM) 2017A 2018A 2019A Q4 2019 Q4 2018 Net Income (Loss) $9.4 $10.5 ($39.9) ($7.5) $2.1 (1) Amortization of Acquisition-Related Intangibles 6.6 7.9 9.9 3.4 2.0 Other Adjustments Loss on Extinguishment of Debt(2) 1.2
Slide 19: Depreciation and Amortization Detail – Historical
Depreciation and Amortization Detail – Historical Depreciation and Amortization ($MM) 2017A 2018A 2019A Q4 2019 Q4 2018 Acquisition-Related Intangibles $6.6 $7.9 $9.9 $3.4 $2.0 Software 0.7 2.1 3.9 1.2 0.7 Reseller Buyouts 0.0 0.1 0.1 0.0 0.0 Amortization 7.3 10.0 13.9 4.6 2.7 Depreciation 0.2 0.4 0
Slide 20: Share Count
Share Count Shares (1) Number Notes (2) Shares held by Public 18,905,687 Shares previously held by SPAC public shareholders, together with shares issued related to warrant exercises Founder Shares 4,115,000 Not subject to forfeiture; not in escrow Shares Underlying the Post-Merger Repay Units 29
Slide 21: REPAY – Realtime Electronic Payments
R EPA Realtime Electronic Payments