REPAY Honored As Silver Stevie® Award Winner In 2021 American Business Awards®

After banner year, REPAY was named the winner of a Silver Stevie® Award in the Achievement in Growth category in The 19th Annual American Business Awards®.

The American Business Awards are the U.S.A.’s premier business awards program. All organizations operating in the U.S.A. are eligible to submit nominations – public and private, for-profit and non-profit, large and small.

More than 3,800 nominations – a record number – from organizations of all sizes and in virtually every industry were submitted this year for consideration in a wide range of categories, including Startup of the Year, Executive of the Year, Best New Product or Service of the Year, Marketing Campaign of the Year, Virtual Event of the Year, and App of the Year, among others. REPAY was nominated in the Achievement in Growth category.

Over the last year, REPAY has achieved remarkable success, including a 48 percent revenue increase and 44 percent profit growth, expanded market verticals and demonstrated a strategic M&A playbook with five acquisitions, which has led to its selection for this award. Additionally, the company’s employee-first focus has resulted in significant employee growth, despite the pandemic backdrop, and a workplace that fosters a diverse, equitable and inclusive employee culture.

“It’s a tremendous honor to be recognized as a Silver Stevie® for Achievement in Growth alongside so many other amazing companies, and we are so proud of the effort all of our employees put in to make this year such a success, particularly in the midst of a global pandemic,” said John Morris, CEO of REPAY. “As a customer- and employee-first organization, we’re thrilled about this honor and are committed to continuing to deliver the best integrated payments solutions.”

More than 250 professionals worldwide participated in the judging process to select this year’s Stevie Award winners.

“The American economy continues to show its resilience, and as we’re poised on the beginning of what should be a phenomenal period of growth, we celebrate the remarkable achievements of a wide range of organizations and people over the past 18 months,” said Stevie Awards president Maggie Gallagher.  “This year’s Stevie-winning nominations in The American Business Awards are testament to the ingenuity, the commitment, the passion, the adaptability, and the creativity of the American people.  We look forward to celebrating this year’s winners during our virtual ceremony on June 30.”

Details about The American Business Awards and the list of 2021 Stevie winners are available at www.StevieAwards.com/ABA.

 

About the Stevie Awards
Stevie Awards are conferred in eight programs: the Asia-Pacific Stevie Awards, the German Stevie Awards, the Middle East & North Africa Stevie Awards, The American Business Awards®, The International Business Awards®, the Stevie Awards for Women in Business, the Stevie Awards for Great Employers, and the Stevie Awards for Sales & Customer Service. The Stevies also produce the annual Women|Future Conference.  Stevie Awards competitions receive more than 12,000 entries each year from organizations in more than 70 nations. Honoring organizations of all types and sizes and the people behind them, the Stevies recognize outstanding performances in the workplace worldwide. Learn more about the Stevie Awards at http://www.StevieAwards.com.

REPAY Partners With Paysafe to Enable U.S. Merchants to Accept Online Cash Payments

Consumers will have access to 60,000 retail locations to make online cash payments to merchants on the REPAY platform using Paysafe’s Paysafecash solution, with transactions recorded in real time

ATLANTA–(BUSINESS WIRE)–May 26, 2021– Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY”), a leading provider of vertically-integrated payment solutions, today announced a partnership with Paysafe (NYSE: PSFE), a leading specialized payments platform, to enable REPAY merchants to accept cash payments at over 60,000 of Paysafe’s retail partner locations, including major convenience stores, dollar stores, and pharmacies across the United States.

Leveraging Paysafe’s Paysafecash online cash, or eCash, solution, these cash transactions are recorded as real-time payments, adding even greater convenience to payers and expanding the capabilities of lenders and B2C companies to meet customer payment preferences.

The strategic partnership will complement REPAY’s suite of electronic payment solutions by offering cash as an online payment option through Paysafecash, enabling businesses, particularly lenders, to accept cash in any U.S. retail location that accepts Paysafe’s eCash product. Effectively, offering opportunities for payers to use eCash helps to bridge the gap between cash and online payments, particularly for the large number of unbanked and under-banked Americans today.

Consumers initiate the online cash payment by selecting Paysafecash at checkout. They then receive a unique barcode, which gets scanned at the payment location and settled in cash. Once the cash transaction is complete, the payment is posted and REPAY delivers the transaction details back to the merchant, seamlessly updating the consumer’s account with the most recent payment information. The money is subsequently deposited into the merchant’s bank account via ACH – and is not subject to chargebacks as other electronic payments may be.

“As REPAY continues to innovate, we aim to reduce the friction of the repayment process by offering convenient payment solutions for lenders and their borrowers,” said Susan Perlmutter, Chief Revenue Officer, REPAY. “Through our partnership with Paysafe, lenders on the REPAY platform will be able to accept cash within the REPAY ecosystem through the Paysafecash eCash solution, benefiting from real-time posting and streamlined reconciliation processes. Consumers can now easily access any Paysafe retail partner location and quickly pay their bill.”

Udo Müller, CEO of paysafecard, Paysafe’s eCash division, commented: “Over 60 million Americans are still underbanked, according to the Federal Reserve, so offering consumers a way to pay loans and other bills via cash is essential in promoting financial inclusion. We understand how important it is to meet the payment preferences of the consumer, which are a critical aspect of the online transaction experience. We’re proud to partner with REPAY to enable lenders by equipping them with a cash payment option to meet the needs of their cash-reliant customers.”

About Paysafe 

Paysafe (NYSE: PSFE) is a leading specialized payments platform. Its core purpose is to enable businesses and consumers to connect and transact seamlessly through industry-leading capabilities in payment processing, digital wallet, and online cash solutions. With over 20 years of online payment experience, an annualized transactional volume of US $92 billion in 2020, and approximately 3,400 employees located in 12+ global locations, Paysafe connects businesses and consumers across 70 payment types in over 40 currencies around the world. Delivered through an integrated platform, Paysafe solutions are geared toward mobile-initiated transactions, real-time analytics and the convergence between brick-and-mortar and online payments. Further information is available at www.paysafe.com.

About Paysafecash™

Paysafecash™, from leading specialized payments platform Paysafe, is an eCash payment method for customers who want to pay online easily and safely using cash. Available in nearly 30 countries, Paysafecash™ makes online transactions possible for customers, who do not have a debit or credit card, or who do not want to use them online. Payments are made by generating a barcode during the online checkout, which can then be scanned and paid for in person at one of more than 190,000 payment points. Paysafecash™ was launched in 2018 by the same Paysafe team who created the award-winning, prepaid cash solution paysafecard in 2000. A market leader in eCash payment solutions, paysafecard allows customers to buy prepaid vouchers that they can then redeem online.

About REPAY

REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for merchants, while enhancing the overall experience for consumers and businesses.

Investor Relations Contact for REPAY:
repayIR@icrinc.com

Media Relations Contact for REPAY:
Kristen Hoyman
khoyman@repay.com

Media Relations Contact for Paysafe:
Nick Say: Manager, Corporate Communications, North America, Paysafe
Nick.Say@Paysafe.com
T: +1-514-452-8747

Source: Repay Holdings Corporation

ACG Atlanta Announces REPAY on 40 Fastest-­Growing Companies in Georgia List

ACG ATLANTA ANNOUNCES 40 FASTEST-­GROWING COMPANIES IN GEORGIA

Honorees Recognized in at Celebration in June and via a robust Online Platform

 

May 20, 2021: ATLANTA -­ The Atlanta National Chapter of the Association for Corporate Growth® (ACG), a global professional organization with the mission of Driving Middle Market Growth®, today announced the 2021 Georgia Fast 40, recognizing the top 40 fastest-growing middle market companies in Georgia.

“The companies being honored this year demonstrate the strength and significance of the middle market sector in Georgia,” said Melanie Brandt CEO of the Association for Corporate Growth’s South Region and ACG Atlanta President and CEO.

Applicants were required to submit three years of verifiable revenue and employment growth records, which were validated by national accounting firm and founding Diamond sponsor, Cherry Bekaert LLP. An ACG Selection Committee evaluated each application and conducted interviews with all qualified applicants. Companies on the list are for profit and headquartered in Georgia and span across a variety of industries including logistics, healthcare, manufacturing, and financial services, among others.

“These companies represent more than 6,600 new jobs and nearly 2.4 billion dollars in revenue growth over the last three years,” said Michelle Galvani, chairperson of the Georgia Fast 40 Awards and Executive Managing Director with Wildmor Advisors. “In speaking with many of the CEO’s, the supportive business environment and accessibility of capital are contributors to growth. By far the biggest challenge is tightness of the labor market. We are proud to honor these companies and look forward to learning more insights online and at the celebration in June.”

ACG Atlanta will present the awards at the Georgia Fast 40 celebration outdoors at the Atlanta History Center in Buckhead on June 24, 2021. Single tickets for ACG Members can be purchased online at http://www.acg.org/atlanta.

 

Honored companies for 2021 include:

Advanced Urology

Albion General Contractors, Inc.

Alora Pharmaceuticals, LLC

Ansley Real Estate

Azalea Health Innovations, Inc

BELAY

BioIQ

Bitcoin Depot

Catalyst Nutraceuticals

CRH Healthcare

DLH Corporation

East West Manufacturing

Envistacom

FiberLight, LLC

Flip Electronics

FullStory

Grayshift

Green Worldwide Shipping, LLC

High Road Craft

IBEX IT Business Experts

Intellum

Kill Cliff

LeaseQuery

MacStadium, Inc

MMS Motorsports, LLC

mySupplier

NPSG Global

Omega Bio-tek, Inc

Oversight

Paralell

PDI

Phobio LLC

QGenda

REPAY

Roadie, Inc

Ruby-Collins, Inc

SalesLoft

Stord Inc.

StruXure Outdoor, Inc

Summit Spine & Joint Centers

Wahoo Fitness

Watershed Geosynthetics LLC

 

About ACG Atlanta

ACG’s Global Network comprises more than 100,000 middle market professionals from corporations, private equity, finance, and professional service firms representing Fortune 500, Fortune1000, FTSE 100, and mid-market companies in 59 chapters in North America and Europe. Founded in 1974, ACG Atlanta is one of the oldest and most active chapters, providing the area’s executives and professionals a unique forum for exchanging ideas and experiences concerning organic and acquisitive growth. Programs include M&A South (formerly the Atlanta ACG Capital Connection, The Georgia Fast 40 Honoree Awards and Celebration, a Wine Tasting Reception, a Deal of the Year event as well as an active Women’s Forum and Young Professionals group.

 

Contact: Melanie Brandt, 770-316-0528, mbrandt@acg.org

 

REPAY Further Streamlines B2B Payments with Sage Accounts Payable Automation

Vendor Payments Automation added to the Sage 100 integration to reduce the costs of paying vendors, while lowering risks of costly manual errors and fraud

ATLANTA–(BUSINESS WIRE)–May 19, 2021– Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY), a leading provider of vertically-integrated payment solutions, today announced the launch of its Vendor Payments Automation solution into Sage 100, which will enable businesses to seamlessly pay vendors in a simple, secure way while also reducing unnecessary costs. This supplements REPAY’s existing integrations with Sage X3 and Sage 300 solutions.

The new integration is available through APS Payments, a REPAY company and a leading provider of omni-channel B2B integrated payment solutions. Extending REPAY’s integration into Sage rounds out the comprehensive, full-service vendor enablement with both AR and AP payments automation. Businesses can streamline processes and boost their bottom lines by simply paying bills more efficiently and effectively.

“With the addition of accounts payable solutions to our Sage 100 integration, we continue our commitment to reducing costs and optimizing the transaction process for businesses,” says Darin Horrocks, SVP, B2B, REPAY. “Intentionally designed with simplicity in mind, a single integration eliminates unnecessary manual processes while increasing revenue and security – a true win-win for business users on Sage.”

The Vendor Payments Automation solution supports creation and approval of payment groups, vendor group management, and invoicing, along with automatic reconciliation and custom reporting within Sage 100.

About REPAY

REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for merchants, while enhancing the overall experience for consumers and businesses.

Investor Relations Contact for REPAY:
repayIR@icrinc.com

Media Relations Contact for REPAY:
Kristen Hoyman
khoyman@repay.com

Source: Repay Holdings Corporation

REPAY Reports First Quarter 2021 Financial Results and Updated 2021 Guidance

ATLANTA–(BUSINESS WIRE)–May 10, 2021– Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY” or the “Company”), a leading provider of vertically-integrated payment solutions, today reported financial results for its first quarter ended March 31, 2021.

“We are pleased with our results in the first quarter, with card payment volume and gross profit growth of 20% and 22%, respectively. This was driven by strong results across all of our businesses,” said John Morris, CEO of REPAY. “We made solid progress against our key growth objectives in the quarter, by increasing the size of our direct sales force as well as integrating additional software partners and expanding our B2B supplier network. During the quarter we also strengthened our balance sheet, positioning us well for acquisition opportunities, including BillingTree which we announced today.”

Three Months Ended March 31, 2021 Highlights

  • Card payment volume was $4.6 billion, an increase of 20% over the first quarter of 2020
  • Total revenue was $47.5 million, a 20% increase over the first quarter of 2020
  • Gross profit was $35.0 million, an increase of 22% over the first quarter of 2020
  • Net loss was ($18.0) million, as compared to a net loss of ($13.2) million in the first quarter of 2020
  • Adjusted EBITDA was $20.5 million, an increase of 18% over the first quarter of 2020
  • Adjusted Net Income was $15.1 million, an increase of 22% over the first quarter of 2020
  • Adjusted Net Income per share was $0.18

Gross profit represents total revenue less cost of services. Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per share are non-GAAP financial measures. See “Non-GAAP Financial Measures” and the reconciliations of Adjusted EBITDA and Adjusted Net Income to their most comparable GAAP measures provided below for additional information.

Subsequent Events

On May 10, 2021, the Company announced the acquisition of BillingTree for approximately $503 million, consisting of $275 million in cash and $228 million in stock. The cash consideration for the transaction will be financed with cash on hand and is expected to close by the end of the second quarter, subject to certain customary closing conditions.

On April 12, 2021 the Securities and Exchange Commission issued guidance (the “Statement”) regarding the accounting and reporting of warrants by special purpose acquisition companies. On April 30, 2021, the Company announced that, following a review of the Statement and its accounting practices, that it is restating certain of its previously issued financial statements included in the Company’s Form 10-K for the year ended December 31, 2020 and the quarterly periods included therein. There was no impact from the restatement to the Company’s financial results for the quarter ended March 31, 2021, as no warrants were outstanding after July 27, 2020. The financial results for the quarter ended March 31, 2020 reported in this communication reflect the reclassification of warrants as liabilities for the reporting period.

2021 Outlook Update

REPAY expects the following financial results for full year 2021, which reflects the assumption that the BillingTree acquisition closes by the end of the second quarter 2021, and replaces previously provided guidance.

Full Year 2021 Outlook

Updated Guidance

Card Payment Volume

$19.9 – 20.4 billion

Total Revenue

$210 – 220 million

Gross Profit

$159 – 165 million

Adjusted EBITDA

$91 – 96 million

This range assumes no further unforeseen COVID-related impacts, which could create substantial economic duress in 2021. REPAY does not provide quantitative reconciliation of forward-looking, non-GAAP financial measures, such as forecasted 2021 Adjusted EBITDA, to the most directly comparable GAAP financial measure, because it is difficult to reliably predict or estimate the relevant components without unreasonable effort due to future uncertainties that may potentially have significant impact on such calculations, and providing them may imply a degree of precision that would be confusing or potentially misleading.

Conference Call

REPAY will host a conference call to discuss first quarter 2021 financial results today at 5:00 pm ET. Hosting the call will be John Morris, CEO, and Tim Murphy, CFO. The call will be webcast live from REPAY’s investor relations website at https://investors.repay.com/investor-relations. The conference call can also be accessed live over the phone by dialing (877) 407-3982, or for international callers (201) 493-6780. A replay will be available one hour after the call and can be accessed by dialing (844) 512-2921 or (412) 317-6671 for international callers; the conference ID is 13718958. The replay will be available at https://investors.repay.com/investor-relations.

Non-GAAP Financial Measures

This communication includes certain non-GAAP financial measures that REPAY’s management uses to evaluate its operating business, measure its performance and make strategic decisions. Adjusted EBITDA is a non-GAAP financial measure that represents net income prior to interest expense, tax expense, depreciation and amortization, as adjusted to add back certain non-cash and non-recurring charges, such as loss on extinguishment of debt, loss on termination of interest rate hedge, non-cash change in fair value of contingent consideration, non-cash change in fair value of assets and liabilities, non-cash change in fair value of warrant liabilities, share-based compensation charges, transaction expenses, employee recruiting costs, other taxes, restructuring and other strategic initiative costs and other non-recurring charges. Adjusted Net Income is a non-GAAP financial measure that represents net income prior to amortization of acquisition-related intangibles, as adjusted to add back certain non-cash and non-recurring charges, such as loss on extinguishment of debt, loss on termination of interest rate hedge, non-cash change in fair value of contingent consideration, non-cash change in fair value of assets and liabilities, non-cash change in fair value of warrant liabilities, share-based compensation expense, transaction expenses, employee recruiting costs, restructuring and strategic initiative costs and other non-recurring charges, non-cash interest expense, net of tax effect associated with these adjustments. Adjusted Net Income is adjusted to exclude amortization of all acquisition-related intangibles as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. Management believes that the adjustment of acquisition-related intangible amortization supplements GAAP financial measures because it allows for greater comparability of operating performance. Although REPAY excludes amortization from acquisition-related intangibles from its non-GAAP expenses, management believes that it is important for investors to understand that such intangibles were recorded as part of purchase accounting and contribute to revenue generation. Adjusted Net Income per share is a non-GAAP financial measure that represents Adjusted Net Income divided by the weighted average number of shares of Class A common stock outstanding (on as-converted basis) for the three months ended March 31, 2021 and the three months ended March 31, 2020 (in each case, excluding shares subject to forfeiture). REPAY believes that Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per share provide useful information to investors and others in understanding and evaluating its operating results in the same manner as management. However, Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per share are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for net income, operating profit, or any other operating performance measure calculated in accordance with GAAP. Using these non-GAAP financial measures to analyze REPAY’s business has material limitations because the calculations are based on the subjective determination of management regarding the nature and classification of events and circumstances that investors may find significant. In addition, although other companies in REPAY’s industry may report measures titled Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per share, or similar measures, such non-GAAP financial measures may be calculated differently from how REPAY calculates its non-GAAP financial measures, which reduces their overall usefulness as comparative measures. Because of these limitations, you should consider Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per share alongside other financial performance measures, including net income and REPAY’s other financial results presented in accordance with GAAP.

Forward-Looking Statements

This communication 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, REPAY’s plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as “guidance,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “believe,” “intend,” “plan,” “projection,” “outlook” or words of similar meaning. These forward-looking statements include, but are not limited to, REPAY’s updated 2021 outlook, anticipated benefits from, and the expected timing for completion of, the BillingTree acquisition, the impact of the restatement, the effects of the COVID-19 pandemic, expected demand on REPAY’s product offering, including further implementation of electronic payment options and statements regarding REPAY’s market and growth opportunities, and our business strategy and the plans and objectives of management for future operations. Such forward-looking statements are based upon the current beliefs and expectations of REPAY’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control.

In addition to factors disclosed in REPAY’s reports filed with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2020, as amended, and those identified elsewhere in this communication, the following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: exposure to economic conditions and political risk affecting the consumer loan market and consumer and commercial spending; the impacts of the ongoing COVID-19 coronavirus pandemic and the actions taken to control or mitigate its spread (which impacts are highly uncertain and cannot be reasonably estimated or predicted at this time); a delay or failure to complete, integrate and/or realize the benefits of the BillingTree acquisition; a delay or failure to integrate and/or realize the benefits of the Company’s other recent acquisitions; changes in the payment processing market in which REPAY competes, including with respect to its competitive landscape, technology evolution or regulatory changes; changes in the vertical markets that REPAY targets, including the regulatory environment applicable to REPAY’s customers; risks relating to REPAY’s relationships within the payment ecosystem; risk that REPAY may not be able to execute its growth strategies, including identifying and executing acquisitions; risks relating to data security; changes in accounting policies applicable to REPAY; and the risk that REPAY may not be able to develop and maintain effective internal controls.

Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance. All information set forth herein speaks only as of the date hereof in the case of information about REPAY or the date of such information in the case of information from persons other than REPAY, and REPAY disclaims any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication. Forecasts and estimates regarding REPAY’s industry and end markets are based on sources it believes to be reliable, however there can be no assurance these forecasts and estimates will prove accurate in whole or in part. Pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

About REPAY

REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for merchants, while enhancing the overall experience for consumers and businesses.

Consolidated Statement of Operations

Three Months ended March 31

(in $ thousands)

2021

2020

Revenue

$47,520

$39,463

Operating expenses

Other costs of services

$12,475

$10,771

Selling, general and administrative

23,393

18,166

Depreciation and amortization

17,793

13,904

Change in fair value of contingent consideration

2,649

Total operating expenses

$56,310

$42,841

Income (loss) from operations

$(8,790)

$(3,379)

Interest expenses

(1,183)

(3,518)

Loss on extinguishment of debt

(5,941)

Change in fair value of warrant liabilities

(6,898)

Change in fair value of tax receivable liability

1,043

(542)

Other income

28

39

Other loss

(9,080)

Total other (expenses) income

(15,133)

(10,919)

Income (loss) before income tax expense

(23,923)

(14,298)

Income tax benefit

5,942

1,116

Net income (loss)

$(17,981)

$(13,182)

Net income (loss) attributable to non-controlling interest

(2,187)

(2,852)

Net income (loss) attributable to the Company

$(15,794)

$(10,330)

Weighted-average shares of Class A common stock outstanding – basic and diluted

76,602,766

37,624,829

Loss per Class A share – basic and diluted

($0.21)

($0.27)

Consolidated Balance Sheets

(in $ thousands)

March 31, 2021
(Unaudited)

December 31,
2020

Assets

Cash and cash equivalents

$390,922

$91,130

Accounts receivable

23,897

21,311

Prepaid expenses and other

6,078

6,925

Total current assets

420,897

119,366

Property, plant and equipment, net

1,980

1,628

Restricted cash

19,525

15,375

Customer relationships, net of amortization

272,923

280,887

Software, net of amortization

59,987

64,435

Other intangible assets, net of amortization

23,389

23,905

Goodwill

458,960

458,970

Operating lease right-of-use assets, net of amortization

9,650

10,075

Deferred tax assets

141,799

135,337

Total noncurrent assets

988,213

990,612

Total assets

$1,409,111

$1,109,978

Liabilities

Accounts payable

$14,112

$11,880

Related party payable

17,775

15,812

Accrued expenses

17,359

19,216

Current maturities of long-term debt

6,761

Current operating lease liabilities

1,563

1,527

Current tax receivable agreement

10,146

10,240

Total current liabilities

60,955

65,436

Long-term debt, net of current maturities

427,288

249,953

Noncurrent operating lease liabilities

8,470

8,837

Tax receivable agreement

220,237

218,988

Other liabilities

889

10,583

Total noncurrent liabilities

656,884

488,361

Total liabilities

$717,839

$553,797

Commitment and contingencies (Note 12)

Stockholders’ equity

Class A common stock, $0.0001 par value; 2,000,000,000 shares authorized and 78,084,846 issued and outstanding as of March 31, 2021; 2,000,000,000 shares authorized and 71,244,682 issued and outstanding as of December 31, 2020

8

7

Class V common stock, $0.0001 par value; 1,000 shares authorized and 100 shares issued and outstanding as of March 31, 2021 and 2020

Additional paid-in capital

839,589

691,675

Accumulated other comprehensive (loss) income

(6,437)

Accumulated deficit

(191,726)

(175,932)

Total stockholders’ equity

$647,871

$509,313

Equity attributable to non-controlling interests

43,400

46,868

Total liabilities and stockholders’ equity and members’ equity

$1,409,111

$1,109,978

Key Operating and Non-GAAP Financial Data

Unless otherwise stated, all results compare first quarter 2021 results to first quarter 2020 results from continuing operations for the period ended March 31, respectively.

The following tables and related notes reconcile these non-GAAP measures and the pro forma measures to GAAP information for the three-month periods ended March 31, 2021 and 2020:

Three months ended March 31,

(in $ thousands)

2021

2020

% Change

Card payment volume

$4,614,003

$3,848,883

20%

Gross profit1

35,045

28,691

22%

Adjusted EBITDA2

20,460

17,350

18%

(1)

Gross profit represents total revenue less other costs of services.

(2)

Adjusted EBITDA is a non-GAAP financial measure that represents net income adjusted for interest expense, depreciation and amortization and certain other non-cash charges and non-recurring items. See “Non-GAAP Financial Measures” above and the reconciliation of Adjusted EBITDA to its most comparable GAAP measure below.

Reconciliations of GAAP Net Income to Non-GAAP Adjusted EBITDA

For the Three Months Ended March 31, 2021 and 2020

(Unaudited)

Three Months ended March 31, 2021

(in $ thousands)

2021

2020(m)

Revenue

$47,520

$39,463

Operating expenses

Other costs of services

$12,475

$10,771

Selling, general and administrative

23,393

18,166

Depreciation and amortization

17,793

13,904

Change in fair value of contingent consideration

2,649

Total operating expenses

$56,310

$42,841

Income (loss) from operations

$(8,790)

$(3,379)

Interest expenses

(1,183)

(3,518)

Loss on extinguishment of debt

(5,941)

Change in fair value of warrant liabilities

(6,898)

Change in fair value of tax receivable liability

1,043

(542)

Other income

28

39

Other loss

(9,080)

Total other (expenses) income

(15,133)

(10,919)

Income (loss) before income tax expense

(23,923)

(14,298)

Income tax benefit

5,942

1,116

Net income (loss)

$(17,981)

$(13,182)

Add:

Interest expense

1,183

3,518

Depreciation and amortization(a)

17,793

13,904

Income tax (benefit)

(5,942)

(1,116)

EBITDA

$(4,947)

$3,124

Loss on extinguishment of debt(b)

5,941

Loss on termination of interest rate hedge(c)

9,080

Non-cash change in fair value of warrant liabilities(d)

6,898

Non-cash change in fair value of contingent consideration(e)

2,649

Non-cash change in fair value of assets and liabilities(f)

(1,043)

542

Share-based compensation expense(g)

5,151

3,523

Transaction expenses(h)

2,340

2,869

Employee recruiting costs(i)

136

Other taxes(j)

139

186

Restructuring and other strategic initiative costs(k)

628

78

Other non-recurring charges(l)

386

130

Adjusted EBITDA

$20,460

$17,350

Reconciliations of GAAP Net Income to Non-GAAP Adjusted Net Income

For the Three Months Ended March 31, 2021 and 2020

(Unaudited)

Three Months ended March 31, 2021

(in $ thousands)

2021

2020(m)

Revenue

$47,520

$39,463

Operating expenses

Other costs of services

$12,475

$10,771

Selling, general and administrative

23,393

18,166

Depreciation and amortization

17,793

13,904

Change in fair value of contingent consideration

2,649

Total operating expenses

$56,310

$42,842

Income (loss) from operations

$(8,790)

$(3,379)

Interest expenses

(1,183)

(3,518)

Loss on extinguishment of debt

(5,941)

Change in fair value of warrant liabilities

(6,898)

Change in fair value of tax receivable liability

1,043

(542)

Other income

28

39

Other loss

(9,080)

Total other (expenses) income

(15,133)

(10,919)

Income (loss) before income tax expense

(23,923)

(14,298)

Income tax benefit

5,942

1,116

Net income (loss)

$(17,981)

$(13,182)

Add:

Amortization of Acquisition-Related Intangibles(n)

16,039

13,203

Loss on extinguishment of debt(b)

5,941

Loss on termination of interest rate hedge(c)

9,080

Non-cash change in fair value of warrant liabilities(d)

6,898

Non-cash change in fair value of contingent consideration(e)

2,649

Non-cash change in fair value of assets and liabilities(f)

(1,043)

542

Share-based compensation expense(g)

5,151

3,523

Transaction expenses(h)

2,340

2,869

Employee recruiting costs(i)

136

Restructuring and other strategic initiative costs(k)

628

78

Other non-recurring charges(l)

386

130

Non-cash interest expense(o)

536

Pro forma taxes at effective rate(p)

(8,722)

(1,697)

Adjusted Net Income

$15,140

$12,364

Shares of Class A common stock outstanding (on an as-converted basis)(q)

84,578,585

67,130,452

Adjusted Net income per share

$0.18

$0.18

(a)

See footnote (n) for details on our amortization and depreciation expenses.

(b)

Reflects write-offs of debt issuance costs relating to prior term loans.

(c)

Reflects realized loss of REPAY’s interest rate hedging arrangement which terminated in conjunction with the repayment of prior term loans.

(d)

Reflects the mark-to-market fair value adjustments of the warrant liabilities.

(e)

Reflects the changes in management’s estimates of future cash consideration to be paid in connection with prior acquisitions from the amount estimated as of the most recent balance sheet date.

(f)

Reflects the changes in management’s estimates of the fair value of the liability relating to the Tax Receivable Agreement.

(g)

Represents compensation expense associated with equity compensation plans, totaling $5,150,598 in the three months ended March 31, 2021, and $3,522,731 in the three months ended March 31, 2020.

(h)

Primarily consists of (i) during the three months ended March 31, 2021, professional service fees and other costs incurred in connection with the acquisition of Ventanex, cPayPlus and CPS Payments, as well as professional service expenses related to the January 2021 equity and convertible notes offerings, and (ii) during the three months ended March 31, 2020, professional service fees and other costs incurred in connection with the acquisition of Ventanex, and additional transaction expenses incurred in connection with the Business Combination and the acquisitions of TriSource Solutions and APS Payments.

(i)

Represents payments made to third-party recruiters in connection with a significant expansion of REPAY’s personnel, which REPAY expects will become more moderate in subsequent periods.

(j)

Reflects franchise taxes and other non-income based taxes.

(k)

Reflects consulting fees related to our processing services and other operational improvements, including restructuring and integration activities related to our acquired businesses, that were not in the ordinary course during the three months ended March 31, 2021 and 2020.

(l)

For the three months ended March 31, 2021 and the three months ended March 31, 2020 reflects extraordinary refunds to customers and other payments related to COVID-19. Additionally, in the three months ended March 31, 2021 reflects non-cash rent expense, and in the three months ended March 31, 2020, reflects expenses incurred related to one-time accounting system and compensation plan implementation related to becoming a public company.

(m)

Does not include adjustment for incremental depreciation and amortization recorded due to fair-value adjustments under ASC 805.

(n)

For the three months ended March 31, 2021, reflects amortization of customer relationships, non-compete agreement, software, and channel relationship intangibles acquired through the Business Combination, and customer relationships, non compete agreement, and software intangibles acquired through Repay Holdings, LLC’s acquisitions of TriSource Solutions, APS Payments, Ventanex, cPayPlus, and CPS Payments. For the three months ended March 31, 2020 reflects amortization of customer relationships, non-compete agreement, software, and channel relationship intangibles acquired through the Business Combination, and customer relationships, non compete agreement, and software intangibles acquired through Repay Holdings, LLC’s acquisitions of TriSource Solutions, APS Payments, and Ventanex. This adjustment excludes the amortization of other intangible assets which were acquired in the regular course of business, such as capitalized internally developed software and purchased software. See additional information below for an analysis of our amortization expenses:

Three months ended March 31,

(in $ thousands)

2021

2020

Acquisition-related intangibles

$16,039

$13,203

Software

1,465

462

Amortization

$17,504

$13,665

Depreciation

289

239

Total Depreciation and amortization1

$17,793

$13,904

1)

Adjusted Net Income is adjusted to exclude amortization of all acquisition-related intangibles as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions (see corresponding adjustments in the reconciliation of net income to Adjusted Net Income presented above). Management believes that the adjustment of acquisition-related intangible amortization supplements GAAP financial measures because it allows for greater comparability of operating performance. Although REPAY excludes amortization from acquisition-related intangibles from our non-GAAP expenses, management believes that it is important for investors to understand that such intangibles were recorded as part of purchase accounting and contribute to revenue generation. Amortization of intangibles that relate to past acquisitions will recur in future periods until such intangibles have been fully amortized. Any future acquisitions may result in the amortization of additional intangibles.

(o)

Represents non-cash deferred debt issuance costs.

(p)

Represents pro forma income tax adjustment effect associated with items adjusted above.

(q)

Represents the weighted average number of shares of Class A common stock outstanding (on as-converted basis) for the three months ended March 31, 2021, and the three months ended March 31, 2020.

 

Investor Relations Contact for REPAY:
repayIR@icrinc.com

Media Relations Contact for REPAY:
Kristen Hoyman
(404) 637-1665
khoyman@repay.com

Source: Repay Holdings Corporation

REPAY to Acquire Integrated Payments Provider BillingTree for $503 Million

Acquisition Further Expands REPAY’s Footprint and Provider-of-Choice Positioning in Healthcare, Credit Unions, and Accounts Receivable Management

ATLANTA–(BUSINESS WIRE)–May 10, 2021– Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY”), a leading provider of vertically-integrated payment solutions, today announced it has signed a definitive agreement to acquire BillingTree for approximately $503 million. The acquisition will be financed with approximately $275 million in cash from REPAY’s balance sheet and $228 million in newly issued shares of REPAY Class A common stock to be issued to the seller. The transaction is subject to certain customary closing conditions and is expected to close by the end of the second quarter of 2021.

BillingTree, founded in 2003 and headquartered in Scottsdale, AZ, is a leading provider of omni-channel, integrated payments solutions to the Healthcare, Credit Union, Accounts Receivable Management (ARM), and Energy industries. Through its technology-enabled suite of products and services, including a variety of payment channels and reporting capabilities, BillingTree helps organizations get paid faster and more efficiently.

“We are thrilled to announce this acquisition, our largest to date, and look forward to further expanding our position in Healthcare, Credit Unions, and Accounts Receivable Management with the help of BillingTree’s team and strong platform capabilities,” said John Morris, CEO of REPAY. “BillingTree satisfies all of our acquisition investment criteria, including a large addressable market opportunity that is amid a shift away from legacy payment methods and towards the technology-first, industry-specific payment mediums in which BillingTree specializes. Additionally, BillingTree has strong recurring revenue streams, high customer retention, approximately 50 unique ISV integrations, an attractive financial profile, and numerous opportunities for synergy realization. We are looking forward to welcoming BillingTree into the REPAY family and together pursuing many amazing growth opportunities ahead.”

“BillingTree’s unique approach has always been to develop strategic alliances with service, software, and billing providers resulting in full integrations that create seamless, compliant, and innovative payment solutions. We believe that we are an ideal strategic partner for BillingTree, as we also go to market with a highly integrated, omni-channel approach. Together, we can capture more of the massive addressable market in payments and combine our incredible team members and technology to create simplified experiences for merchants across our collective, ever-expanding verticals,” continued Morris.

Transaction Details

  • REPAY will acquire BillingTree for approximately $503 million, inclusive of a tax asset
    • $275 million in cash from REPAY’s balance sheet
    • $228 million in newly issued shares of REPAY Class A common stock
    • The effective purchase price is approximately $483 million, net of the tax asset
  • Parthenon Capital, BillingTree’s majority owner, will own approximately 10% of REPAY’s outstanding shares of common stock following the closing of the transaction
  • Net leverage is expected to approximate 2.9x1 on a post-transaction basis
  • In 2021, BillingTree is expected to generate $4.4 billion in card payment volume, $48 million in gross profit, and $26 million in adjusted EBITDA, excluding cost synergies and pro forma adjustments
  • Through processing cost reductions and operating expense rationalization, REPAY expects to realize $5 million in annualized synergies

Strategic Rationale

  • Further expands REPAY’s position in Healthcare, Credit Unions, and Accounts Receivable Management
    • This acquisition is expected to strengthen REPAY’s existing product suite of deeply integrated, custom-tailored payment and software solutions for enterprise customers in the Healthcare, Credit Union, and ARM industries
    • CareView, BillingTree’s Healthcare payments and software platform, streamlines patient communication, promotes patient engagement, and allows customers to accept all forms of payment
    • BillingTree’s Payrazr solution offers an omni-channel platform that allows customers to accept and reconcile payments using the medium of their choice
  • Enhances REPAY’s scale and client diversification
    • BillingTree serves 1,650+ clients across multiple, attractive end markets with industry leading retention metrics
    • BillingTree’s solutions are tightly integrated with over 50 software platforms
    • The acquisition is expected to increase REPAY’s total card payment volume to over $20 billion on an annualized basis2 and expand REPAY’s software partner integrations to over 175
  • Large and Growing Addressable Markets
    • BillingTree’s existing Healthcare, Credit Union, ARM, and Energy verticals provide BillingTree with access to an estimated annual payment volume opportunity of over $700 billion
    • Addressable payment volume in BillingTree’s core end markets has experienced favorable tailwinds as a result of the COVID-19 pandemic, accelerating the paper-to-digital payment shift within BillingTree’s biller direct verticals
  • Attractive Synergy Opportunities
    • The scale, capabilities, and infrastructure of the combined platform presents significant opportunities for cost savings and increased efficiencies
    • As a result of processing costs enhancements and operating expense rationalization, REPAY expects to realize annualized synergies of approximately $5 million by 2022

Advisors

Credit Suisse served as exclusive financial advisor and Troutman Pepper served as legal advisor to REPAY. Financial Technology Partners (“FT Partners”) served as exclusive financial advisor and Kirkland & Ellis served as legal advisor to BillingTree and Parthenon.

About BillingTree 

BillingTree is a leading provider of integrated payments solutions to customers in the Healthcare, Credit Union, ARM, and Energy verticals. Leveraging more than a decade of market experience, BillingTree is dedicated to growing payments with technology through an integrated omni-channel offering, suite of proprietary products and value-added services, and a company-wide focus on delivering extraordinary customer service.

About REPAY

REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for merchants, while enhancing the overall experience for consumers and businesses.

Forward-Looking Statements

This communication 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, REPAY’s plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as “is expected to,” “is anticipated,” “estimated,” “believe,” “projection” or words of similar meaning. These forward-looking statements include: anticipated benefits from, and the expected timing for completion of, the BillingTree acquisition, the effects of the COVID-19 pandemic, expected strengthening of REPAY’s product offering, statements regarding market and growth opportunities, and synergy opportunities. Such forward-looking statements are based upon the current beliefs and expectations of REPAY’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control.

In addition to factors disclosed in REPAY’s reports filed with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2020, as amended, and those identified elsewhere in this communication, the following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: any inability to integrate and/or realize the benefits of the BillingTree acquisition, including expected synergies; events that could rise to termination of the definitive acquisition agreement, including by reason of the failure to obtain necessary governmental approvals or to satisfy other closing conditions; that the announcement of the proposed acquisition could disrupt REPAY’s or BillingTree’s relationships with financial institutions, customers, employee or other business partners; changes in the payment processing market in which REPAY and BillingTree compete, including with respect to the applicable competitive landscape, technology evolution or regulatory changes; changes in the vertical markets that REPAY and/or BillingTree target, including the regulatory environment applicable to those customers; risks relating to REPAY’s and BillingTree’s relationships within the payment ecosystem; and risks relating to data security.

Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance. All information set forth herein speaks only as of the date hereof in the case of information about REPAY or the date of such information in the case of information from persons other than REPAY, and REPAY disclaims any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication. Forecasts and estimates regarding REPAY’s industry and end markets are based on sources it believes to be reliable, however there can be no assurance these forecasts and estimates will prove accurate in whole or in part. Pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

_________________________

1

Denotes net leverage, including $5.0 million of run-rate synergies, as of 4/30/21. Based on pro forma metrics for BillingTree, assuming full-year contribution of recent acquisitions.

2

Assuming BillingTree was acquired on January 1, 2021.

 

Investor Relations Contact for REPAY:
repayIR@icrinc.com

Media Relations Contact for REPAY:
Kristen Hoyman
(404) 637-1665
khoyman@repay.com

Source: Repay Holdings Corporation

Great Place to Work® and Fortune® Name REPAY One of the 2021 Best Workplaces in Financial Services & Insurance™

ATLANTA–(BUSINESS WIRE)–May 5, 2021– Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY”), a leading provider of vertically-integrated payment solutions, today announced it has been honored by Great Place to Work® and Fortune®1 as one of the Best Workplaces in Financial Services & Insurance™. Earning a spot on this prestigious list means that REPAY is one of the best companies in the financial services industry to work for in the country.

The Best Workplaces in Financial Services & Insurance award is based on analysis of survey responses from more than 840,000 current employees across the U.S. In that survey, 94% of REPAY’s employees said REPAY is a great place to work, coming in at 35 points higher than the average company in the United States.

“We are honored to be recognized by Fortune and are grateful for our dedicated employees who continue to contribute to REPAY’s positive work environment and overall success,” said Naomi Barnett, EVP, Human Resources, REPAY. “This achievement is a celebration of our people and reinforces our commitment to building an inclusive culture of trust for all.”

“I’m extremely proud that REPAY has been certified as a Great Place to Work for the past five years,” said John Morris, CEO, REPAY. “Our employee-first approach remains a priority as we continue to experience tremendous growth year over year, especially while adapting to the recent challenges of the COVID-19 pandemic. We will continue to cultivate a culture where our people are empowered, appreciated and rewarded.”

The Best Workplaces in Financial Services & Insurance is highly competitive. Great Place to Work, the global authority on workplace culture, selected the list using rigorous analytics and confidential employee feedback. Companies were only considered if they had been a Great Place to Work-Certified™ organization.

Great Place to Work is the only company culture award in America that selects winners based on how fairly employees are treated. Companies are assessed on how well they are creating a great employee experience that cuts across race, gender, age, disability status, or any aspect of who employees are or what their role is.

“Congratulations to the Best Workplaces in Financial Services & Insurance. These companies are meeting the moment. Not only have they pivoted to new ways of working, but their employees report an even better company culture than before COVID-19,” said Michael C. Bush, CEO Great Place to Work. “The leaders of these companies can expect excellent business results thanks to their inclusive, high-trust cultures.”

About REPAY

REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for merchants, while enhancing the overall experience for consumers and businesses.

About the Best Workplaces in Financial Services & Insurance™

Great Place to Work® selected the Best Workplaces for Financial Services & Insurance™ by gathering and analyzing confidential survey responses from more than 840,000 employees at Great Place to Work-Certified™ organizations across the country. Company rankings are derived from 75 employee experience questions within the Great Place to Work Trust Index™ surveyRead the full methodology.

To get on this list next year, start here.

About Great Place to Work®

Great Place to Work® is the global authority on workplace culture. Since 1992, they have surveyed more than 100 million employees worldwide and used those deep insights to define what makes a great workplace: trust. Their employee survey platform empowers leaders with the feedback, real-time reporting and insights they need to make data-driven people decisions. Everything they do is driven by the mission to build a better world by helping every organization become a great place to work For All™.

Learn more at greatplacetowork.com and on LinkedInTwitterFacebook and Instagram.


1 From FORTUNE. ©2021 FORTUNE Media IP Limited. All rights reserved. Used under license.

Investor Relations Contact for REPAY:
repayIR@icrinc.com

Media Relations Contact for REPAY:
Kristen Hoyman
khoyman@repay.com

Source: Repay Holdings Corporation

REPAY to Announce First Quarter 2021 Results on May 10, 2021

ATLANTA–(BUSINESS WIRE)–Apr. 30, 2021– Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY” or the “Company”), a leading provider of vertically-integrated payment solutions, today announced that the Company will host a conference call to discuss first quarter 2021 financial results on Monday, May 10, 2021 at 5:00pm ET. Hosting the call will be John Morris, CEO, and Tim Murphy, CFO. A press release with first quarter 2021 financial results will be issued after the market closes that same day.

The conference call will be webcast live from the Company’s investor relations website at https://investors.repay.com/ under the “Events” section. The conference call can also be accessed live over the phone by dialing (877) 407-3982, or for international callers (201) 493-6780. A replay will be available two hours after the call and can be accessed by dialing (844) 512-2921 or (412) 317-6671 for international callers; the conference ID is 13718958. The replay will be available until Monday, May 17, 2021. An archive of the webcast will be available at the same location on the website shortly after the call has concluded.

About REPAY

REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for merchants, while enhancing the overall experience for consumers and businesses.

Investor Relations Contact for REPAY:
repayIR@icrinc.com

Media Relations Contact for REPAY:
Kristen Hoyman
(404) 637-1665
khoyman@repay.com

Source: Repay Holdings Corporation