REPAY Scales B2B Payments Offerings with Billtrust Partnership

Technology integration accelerates REPAY’s virtual credit card adoption, enabling B2B customers to easily automate electronic payments to thousands of suppliers on Billtrust’s Business Payments Network

ATLANTA–(BUSINESS WIRE)–Jan. 20, 2021– Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY”), a leading provider of vertically-integrated payment solutions, today announced a technology integration with Billtrust (NASDAQ: BTRS), a B2B accounts receivable automation and integrated B2B payments leader. Through REPAY’s participation in Billtrust’s Business Payments Network (BPN), REPAY’s corporate customers will instantly gain the ability to automate electronic payments to Billtrust’s vast network of suppliers, distributors and vendors – both accelerating and simplifying the payment process, while also further scaling adoption of virtual credit cards.

Traditionally, business buyers must work with each supplier individually to collect, verify, and securely store bank data in order to send payments electronically. REPAY’S B2B offerings, which include those from recent acquisitions, cPayPlus and CPS Payment Services, help automate those connections for tens of thousands of vendor relationships. The integration with Billtrust will expand REPAY’s reach to several thousand additional suppliers on the BPN, immediately streamlining the payments process for both buyers and their suppliers and enabling payments to be sent in the companies’ preferred formats, including virtual credit cards.

“Our goal is always to help our customers simplify and optimize their vendor payments by automating payments through a single interface. We believe our partnership with Billtrust will significantly bolster the adoption of electronic payments to suppliers who participate in the BPN,” said Darin Horrocks, Senior Vice President, B2B, at REPAY.

“The service and supplier industry has seen an acceleration in adoption and preference of digital payments to streamline efficiencies and reduce costs related to the invoice-to-cash process,” said Nick Babinsky, Senior Vice President and General Manager, Business Payments Network at Billtrust. “Considering REPAY’s powerful payment automation platform and virtual card capabilities, this partnership was a natural fit. Their B2B customers will now be able to instantly leverage the extensive and continually growing Billtrust network of suppliers.”

About Billtrust

Billtrust (NASDAQ: BTRS) is a leading provider of cloud-based software and integrated payment processing solutions that simplify and automate B2B commerce. Accounts receivable is broken and relies on conventional processes that are outdated, inefficient, manual and largely paper based. Billtrust is at the forefront of the digital transformation of AR, providing mission-critical solutions that span credit decisioning and monitoringonline orderinginvoice deliverypayments and remittance captureinvoicingcash application and collections. For more information, visit Billtrust.com.

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 Announces Public Offering of Common Stock

ATLANTA–(BUSINESS WIRE)–Jan. 12, 2021– Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY” or the “Company”) announced today that it has commenced an underwritten public offering of $130 million of shares of REPAY’s Class A common stock, subject to market and other conditions. In conjunction with the offering, the Company intends to grant to the underwriters a 30-day option to purchase up to $19.5 million of additional shares of REPAY’s Class A common stock.

REPAY intends to use the net proceeds from the offering, together with the net proceeds from a concurrent private offering of convertible senior notes, for the repayment of the term loans issued under its existing credit agreement and other general corporate purposes, which may include, without limitation, repurchase, redemption or retirement of securities, including interests in Hawk Parent Holdings LLC, future acquisitions, satisfaction of earnout obligations from prior acquisitions, the repayment of outstanding indebtedness and working capital. In connection with the repayment of the term loans, REPAY expects to seek to increase the amount of availability under its revolving credit facility.

Credit Suisse Securities (USA) LLC and Barclays Capital Inc. are acting as joint book-running managers for the offering. Citigroup Global Markets Inc. and Truist Securities, Inc. are also acting as book-runners for the offering.

The offering is being made pursuant to an effective shelf registration statement (including a prospectus) on Form S-3 (File No. 333-248483) previously filed with the Securities and Exchange Commission (“SEC”). The offering may be made only by means of a prospectus supplement and accompanying prospectus. Before investing, interested parties should read the prospectus supplement, accompanying prospectus and other documents filed by the Company with the SEC for information about the Company and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, a copy of the prospectus supplement and accompanying prospectus may be obtained from any of the following underwriters at: Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, NC 27560, by telephone at 1-800-221-1037 or by email at usa.prospectus@credit-suisse.com; Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, email: Barclaysprospectus@broadridge.com, tel: 888-603-5847; Citigroup Global Markets Inc. at c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by calling toll-free telephone (800) 831-9146, or by email at prospectus@citi.com; or Truist Securities, Inc., 303 Peachtree Street, Atlanta, GA 30308, Attn: Prospectus Department, tel.: 800-685-4786, email: TSIdocs@Truist.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of, or any solicitation of an offer to buy, REPAY’s Class A common stock or any convertible senior notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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 the timing and terms of the offering and the proposed use of proceeds and other statements identified by words such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “believe,” “intend,” “plan,” “projection,” “outlook” or words of similar meaning. 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 REPAY’s control, including, without limitation, the factors described in REPAY’s reports filed with the SEC. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.

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 we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.

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 and LiveVox Announce Partnership to Enhance Customer Experience and Improve Agent Performance

Partnership to enable LiveVox to accept credit, debit card, and ACH payment capabilities via online portal or agent-assisted transaction, designed to boost accounts receivable and collections results

ATLANTA–(BUSINESS WIRE)–Dec. 17, 2020– Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY”), a leading provider of vertically-integrated payment solutions, today announced a technology integration with LiveVox, a next-generation contact center platform. The partnership further enhances the LiveVox customer experience by providing additional digital payment options and processing capabilities in either self-service or agent-assisted transactions.

LiveVox provides companies with a unified approach to creating personalized customer conversations by offering seamless integration capabilities across omnichannel communications, CRM, and workforce optimization. REPAY’s technology will serve as a payment engine within the LiveVox platform, enabling accounts receivable and collections teams to seamlessly and securely accept credit and debit cards as well as ACH payments, 24/7.

“We are excited to be partnering with LiveVox and powering such a large and rapidly expanding customer base with our payment processing technology,” said Susan Perlmutter, Chief Revenue Officer of REPAY. “Payment preferences across the B2B and B2C landscapes, alike, continue to move overwhelmingly toward digital, and customers today expect options and convenience. REPAY is a payment industry leader in the collections, consumer finance and automotive industries. Leading companies in these industries use LiveVox to run their contact centers – making this a natural partnership to further improve agent performance and the overall customer experience.”

“LiveVox is very focused on enabling exceptional agent and customer experiences through our platform,” said Louis Summe, LiveVox CEO. “We’re very excited to partner with REPAY, as it offers our customers an exceptional option to facilitate both self-service and agent-assisted payment transactions.”

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 LiveVox
LiveVox is a next-generation contact center platform that powers more than 14 billion interactions a year. We seamlessly integrate omnichannel communications, CRM, and WFO to deliver exceptional agent and customer experiences, while helping to reduce compliance risk. Our reliable, easy-to-use technology enables effective engagement strategies on channels of choice to drive performance in the contact center. To learn more, visit http://www.livevox.com/.

Investor Relations Contact for REPAY:
repayIR@icrinc.com

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

Media Relations Contact for LiveVox:
Nick Bandy
nbandy@livevox.com

Source: Repay Holdings Corporation

REPAY Announces Partnership with the Strategic Regional Healthcare Organization – The National Association (SRHO)

Partnership will expand REPAY’s reach within the healthcare sector by providing health system members accounts payable disbursement automation and revenue generating rebates

ATLANTA–(BUSINESS WIRE)–Dec. 7, 2020– Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY”), a leading provider of vertically integrated payment solutions, today announced a partnership with the Strategic Regional Healthcare Organization – The National Association (SRHO), a healthcare consortium enabling providers and facilities to operate and achieve economies of scale to succeed in population health care delivery.

REPAY’s partnership with SRHO is through CPS Payment Services (“CPS”), a REPAY company and market leader in healthcare accounts payable (AP) virtual card and AP disbursement services, and will provide SRHO health system members with new automation capabilities for accounts payable disbursements, optimizing internal efficiencies and bringing revenue generating savings to their bottom line.

CPS’ TotalPay platform automates the facilitation of all supplier payments for a hospital or health system while helping generate significant monthly cash rebates based on payments to accounts payable suppliers. CPS has a proprietary network of healthcare suppliers, enabling healthcare clients to generate typically 50% more in rebates than a bank program could achieve.

“We are thrilled to join SRHO in its mission to streamline payment processing workflows and efficiencies for healthcare provider members,” said Susan Perlmutter, Chief Revenue Officer of REPAY. “Automating complex legacy processes will not only alleviate mundane tasks, but it will also accelerate performance, increase value, reduce operating costs and help improve the bottom-line.”

“We are excited to welcome CPS to our consortium and look forward to seeing the impact they will have on our Members and their affiliate Hospitals. Our partnership presents a tremendous opportunity for our health system members to utilize AP automation and revenue-generating solutions to create operational efficiencies and improve financial performance,” said Mark Tribbett, Chief Executive Officer at SRHO.

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 SRHO – The National Association

SRHO, representing over 400 Hospitals and Health Care Systems, was created to assist regional SRHOs in advancement of their common interests, to develop regional or national markets to create the scale required to achieve next level strategic cost reductions, and to design the fundamental building blocks to manage risk and improve quality of care all while sustaining their organizational autonomy.

Investor Relations for REPAY:
repayIR@icrinc.com

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

Source: Repay Holdings Corporation

REPAY to Participate in Upcoming Investor Conferences

ATLANTA–(BUSINESS WIRE)–Nov. 24, 2020– Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY” or the “Company”), a leading provider of vertically-integrated payment solutions, today announced that members of the Company’s management team will participate in the following upcoming virtual investor conferences.

  • On Tuesday, December 1, 2020, the Company will participate in a fireside chat at the Wells Fargo TMT Summit. The discussion will begin at 12:40pm ET.
  • On Wednesday, December 2, 2020, the Company will participate in a fireside chat at the Credit Suisse 24th Annual Technology Conference. The discussion will begin at 10:10am ET.

The fireside chats will be webcast live from the Company’s investor relations website at https://investors.repay.com/ under the “Events” section. An archive of the webcasts will be available at the same location on the website for 90 days.

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

REPAY to Present at Citi’s 2020 Financial Technology Virtual Conference

ATLANTA–(BUSINESS WIRE)–Nov. 10, 2020– Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY” or the “Company”), a leading provider of vertically-integrated payment solutions, today announced that members of the Company’s management team will participate in a fireside chat at Citi’s 2020 Financial Technology Virtual Conference on Tuesday, November 17, 2020 at 10:30am ET.

The fireside chat will be webcast live from the Company’s investor relations website at https://investors.repay.com/ under the “Events” section. An archive of the webcast will be available at the same location on the website for 90 days.

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

REPAY Reports Third Quarter 2020 Financial Results

ATLANTA–(BUSINESS WIRE)–Nov. 9, 2020– Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY” or the “Company”), a leading provider of vertically-integrated payment solutions, today reported financial results for its third quarter of 2020.

“Our solid third quarter results are a testament to the value proposition of our business, which has grown even more evident since the COVID-19 pandemic began almost eight months ago. Compared to the third quarter of 2019, card payment volume and gross profit increased 44% and 40%, respectively,” said John Morris, CEO of REPAY. “We are thrilled by our latest acquisition of CPS Payment Services, which fortifies our B2B and AP automation offering and will help us satisfy the heightened demand for comprehensive, technology-first B2B automation and payment solutions.”

Three Months Ended September 30, 2020 Highlights

  • Card payment volume was $3.8 billion, an increase of 44% over the third quarter of 2019
  • Total revenue was $37.6 million, a 43% increase over the third quarter of 2019
  • Gross profit was $27.1 million, an increase of 40% over the third quarter of 2019
  • Pro forma net loss1 was $(6.6) million, as compared to net loss of $(41.4) million in the third quarter of 2019
  • Adjusted EBITDA was $15.6 million, an increase of 31% over the third quarter of 2019
  • Adjusted Net Income was $9.5 million, a decrease of 9% from the third quarter of 20192
  • Adjusted Net Income per share was $0.12

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.

Business Combination

The Company was formed upon closing of the merger (the “Business Combination”) of Hawk Parent Holdings LLC (together with Repay Holdings, LLC and its other subsidiaries, “Hawk Parent”) with a subsidiary of Thunder Bridge Acquisition, Ltd. (“Thunder Bridge”), a special purpose acquisition company, on July 11, 2019 (the “Closing Date”). On the closing of the Business Combination, Thunder Bridge changed its name to Repay Holdings Corporation.

_______________

1 Please refer to “Basis of Presentation” below for an explanation of the presentation of this information.

2 Adjusted Net Income for the three months ended September 30, 2020 includes a pro forma tax impact. See ‘Key Operating and Non-GAAP Financial Data’ footnote (p) for additional detail.

Basis of Presentation

As a result of the Business Combination, the Company was identified as the acquirer for accounting purposes, and Hawk Parent, which owned the business conducted prior to the closing of the Business Combination, is the acquiree and accounting “Predecessor.” The Company is the “Successor” for periods after the Closing Date, which includes consolidation of the Hawk Parent business subsequent to the Closing Date. The Company’s financial statement presentation reflects the Hawk Parent business as the “Predecessor” for any periods ended prior to the Closing Date. Where we discuss results for any period ended September 30, 2019, we are referring to the combined results of the Predecessor for the periods from either January 1, 2019 or July 1, 2019 and the Successor for the period from the Closing Date through September 30, 2019. The combined basis of presentation reflects a simple arithmetic combination of the Predecessor and Successor periods. The acquisition was accounted for as a business combination using the acquisition method of accounting, and the Successor financial statements reflect a new basis of accounting that is based on the fair value of net assets acquired. As a result of the application of the acquisition method of accounting as of the effective time of the Business Combination, the financial statements for the Predecessor period and for the Successor period are presented on different bases. When information is noted as being “pro forma” in this press release, it means that the financial statements were adjusted to remove the effects of purchase accounting adjustments related to the Business Combination. The historical financial information of Thunder Bridge prior to the Business Combination has not been reflected in the Predecessor period financial statements.

Subsequent Events

On October 27, 2020, REPAY announced the acquisition of CPS Payment Services for up to $93 million, which includes up to $15 million in performance-based earnouts. The acquisition closed on November 2, 2020 and was financed with cash on hand.

On November 5, 2020, the Company, Truist Bank (formerly SunTrust Bank) and other members of its existing bank group agreed to amend REPAY’s existing credit facility in order to extend through August 2021 the availability period for the $60 million delayed draw term loan facility under the credit facility.

2020 Outlook

REPAY expects the following financial results for full year 2020, which reflects expected contributions from CPS Payment Services and replaces previously provided guidance.

Full Year 2020 Outlook

Updated Guidance

Card Payment Volume

$14.75 – 15.00 billion

Total Revenue

$148 – 153 million

Gross Profit

$110 – 113 million

Adjusted EBITDA

$63 – 65 million

This range assumes no further unforeseen COVID-related impacts, which could create substantial economic duress in the fourth quarter of the year. REPAY does not provide quantitative reconciliation of forward-looking, non-GAAP financial measures, such as forecasted 2020 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 third quarter 2020 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 13711329. 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 non-cash loss on extinguishment of debt, non-cash change in fair value of contingent consideration, non-cash change in fair value of assets and liabilities, share-based compensation charges, transaction expenses, management fees, legacy commission related charges, employee recruiting costs, other taxes, strategic initiative related 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 non-cash loss on extinguishment of debt, non-cash change in fair value of contingent consideration, non-cash change in fair value of assets and liabilities, share-based compensation expense, transaction expenses, management fees, legacy commission related charges, employee recruiting costs, strategic initiative related costs and other non-recurring charges, 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 we exclude 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. 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 and nine months ended September 30, 2020 (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 2020 outlook (including contributions of CPS Payment Services), 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. 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, 2019 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, 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 integrate and realize the benefits of the CPS Payment Services acquisition or any 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; 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
(Unaudited)

Successor

Predecessor

(in $ thousands)

Three Months ended September 30, 2020

Nine Months ended September 30, 2020

July 11, 2019 through September 30, 2019

July 1,

2019

through

July 10,

2019

January 1,

2019

through

July 10,

2019

Revenue

$37,635

$113,598

$23,926

$2,334

$47,043

Operating expenses

Other costs of services

$10,492

$29,990

$6,368

$468

$10,216

Selling, general and administrative

28,581

65,765

21,003

34,069

51,201

Depreciation and amortization

15,421

44,031

10,703

333

6,223

Change in fair value of contingent consideration

(3,750)

(3,010)

Total operating expenses

$50,744

$136,776

$38,074

$34,870

$67,640

Income (loss) from operations

$(13,109)

$(23,178)

$(14,148)

$(32,536)

$(20,597)

Other expenses

Interest expenses

(3,624)

(10,847)

(2,686)

(227)

(3,145)

Change in fair value of tax receivable liability

(1,475)

(12,056)

(451)

Other income

25

70

(1,316)

Total other (expenses) income

(5,074)

(22,833)

(4,453)

(227)

(3,145)

Income (loss) before income tax expense

(18,183)

(46,011)

(18,601)

(32,763)

(23,742)

Income tax benefit

3,383

8,395

2,719

Net income (loss)

$(14,800)

$(37,616)

$(15,882)

$(32,763)

$(23,742)

Net income (loss) attributable to non-controlling interest

(5,298)

(12,053)

(7,399)

Net income (loss) attributable to the Company

$(9,502)

$(25,563)

$(8,483)

$(32,763)

$(23,742)

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

57,913,089

45,806,225

34,326,127

Loss per Class A share – basic and diluted

($0.16)

($0.56)

($0.25)

Consolidated Balance Sheets

(in $ thousands)

September 30, 2020 (Unaudited)

December 31, 2019

Assets

Cash and cash equivalents

$182,290

$24,618

Accounts receivable

15,790

14,068

Related party receivable

563

Prepaid expenses and other

5,351

4,633

Total current assets

203,431

43,882

Property, plant and equipment, net

1,709

1,611

Restricted cash

10,388

13,283

Customer relationships, net of amortization

249,611

247,589

Software, net of amortization

62,067

61,219

Other intangible assets, net of amortization

23,677

24,242

Goodwill

415,511

389,661

Deferred tax assets

128,294

Other assets

555

Total noncurrent assets

891,257

738,160

Total assets

$1,094,688

$782,042

Liabilities

Accounts payable

$11,893

$9,586

Related party payable

14,896

14,571

Accrued expenses

12,678

15,966

Current maturities of long-term debt

6,761

5,500

Current tax receivable agreement

10,105

6,336

Total current liabilities

56,333

51,959

Long-term debt, net of current maturities

251,307

197,943

Line of credit

10,000

Tax receivable agreement

212,795

60,840

Deferred tax liability

768

Other liabilities

10,635

17

Total noncurrent liabilities

474,737

269,568

Total liabilities

$531,070

$321,527

Commitment and contingencies (Note 12)

Stockholders’ equity

Class A common stock, $0.0001 par value; 2,000,000,000 shares authorized and 71,087,989 issued and outstanding as of September 30, 2020

7

4

Class V common stock, $0.0001 par value; 1,000 shares authorized and 100 shares issued and outstanding as of September 30, 2020

Additional paid-in capital

609,915

307,914

Accumulated other comprehensive (loss) income

(9,266)

313

Accumulated deficit

(79,441)

(53,878)

Total stockholders’ equity

$521,215

$254,353

Equity attributable to non-controlling interests

42,403

206,162

Total liabilities and stockholders’ equity and members’ equity

$1,094,688

$782,042

Key Operating and Non-GAAP Financial Data

We believe that adjusting the key operating and non-GAAP measures for comparability between the Predecessor, Successor and Pro Forma periods is useful to the user of our financial statements.

The unaudited non-GAAP pro forma results of operations data for the three and nine months ended September 30, 2020 and 2019 included in the discussion below are based on our historical financial statements, adjusted to remove the effects of purchase accounting adjustments related to the Business Combination. The pro forma results included herein have not been prepared in accordance with Article 11 of Regulation S-X.

Unless otherwise stated, all results compare third quarter and nine-month 2020 results to third quarter and nine-month 2019 results from continuing operations for the period ended September 30, respectively.

The following tables and related notes reconcile these non-GAAP measures and the pro forma measures to GAAP information for the three-month and nine-month periods ended September 30, 2020 and 2019:

Three months ended September 30,

Nine months ended September 30,

(in $ thousands)

2020

2019

% Change

2020

2019

% Change

Card payment volume

$3,765,721

$2,618,561

44%

$11,240,005

$7,274,579

55%

Gross profit1

27,143

19,424

40%

83,608

54,385

54%

Adjusted EBITDA2

15,595

11,910

31%

49,167

33,694

46%

(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 September 30, 2020 and 2019

(Unaudited)

Successor

Successor

Predecessor

(in $ thousands)

Three Months Ended September 30, 2020

Adjustments(o)

Pro Forma

Three Months Ended September 30, 2020

July 11, 2019 through September 30, 2019

July 1, 2019 through July 10, 2019

Combined

Adjustments(o)

Pro Forma

Three Months Ended September 30, 2019

Revenue

$37,635

$37,635

$23,926

$2,334

$26,260

$26,260

Operating expenses

Other costs of services

$10,492

$10,492

$6,368

$468

$6,836

$6,836

Selling, general and administrative

28,581

28,581

21,003

34,069

55,072

55,072

Depreciation and amortization

15,421

(8,159)

7,262

10,703

333

11,036

(7,253)

3,783

Change in fair value of contingent consideration

(3,750)

(3,750)

Total operating expenses

$50,744

$42,585

$38,074

$34,870

$72,944

$65,691

Income (loss) from operations

$(13,109)

$(4,950)

$(14,148)

$(32,536)

$(46,684)

$(39,431)

Other expenses

Interest expenses

(3,624)

(3,624)

(2,686)

(227)

(2,913)

(2,913)

Change in fair value of tax receivable liability

(1,475)

(1,475)

(451)

(451)

(451)

Other income

25

25

(1,316)

(1,316)

(1,316)

Total other (expenses) income

(5,074)

(5,074)

(4,453)

(227)

(4,681)

(4,680)

Income (loss) before income tax expense

(18,183)

(10,024)

(18,601)

(32,763)

(51,364)

(44,111)

Income tax benefit

3,383

3,383

2,719

2,719

2,719

Net income (loss)

$(14,800)

$(6,641)

$(15,882)

$(32,763)

$(48,645)

$(41,392)

Add:

Interest expense

3,624

2,913

Depreciation and amortization(a)

7,262

3,783

Income tax (benefit)

(3,383)

(2,719)

EBITDA

$862

$(37,415)

Loss on extinguishment of debt (b)

1,316

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

(3,750)

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

1,475

451

Share-based compensation expense(e)

5,768

10,409

Transaction expenses(f)

3,332

35,017

Management Fees(g)

11

Legacy commission related charges(h)

7,221

1,877

Employee recruiting costs(i)

67

18

Other taxes(j)

171

32

Restructuring and other strategic initiative costs(k)

389

80

Other non-recurring charges(l)

60

114

Adjusted EBITDA

$15,595

$11,910

Reconciliations of GAAP Net Income to Non-GAAP Adjusted EBITDA

For the Nine Months Ended September 30, 2020 and 2019

(Unaudited)

Successor

Successor

Predecessor

(in $ thousands)

Nine Months Ended September 30, 2020

Adjustments(o)

Pro Forma

Nine Months Ended September 30, 2020

July 11, 2019 through September 30, 2019

January 1, 2019 through July 10, 2019

Combined

Adjustments(o)

Pro Forma

Nine Months Ended September 30, 2019

Revenue

$113,598

$113,598

$23,926

$47,043

$70,969

$70,969

Operating expenses

Other costs of services

$29,990

$29,990

$6,368

$10,216

$16,584

$16,584

Selling, general and administrative

65,765

65,765

21,003

51,201

72,204

72,204

Depreciation and amortization

44,031

(24,476)

19,555

10,703

6,223

16,926

(7,253)

9,673

Change in fair value of contingent consideration

(3,010)

(3,010)

Total operating expenses

$136,776

$112,300

$38,074

$67,640

$105,714

$98,461

Income (loss) from operations

$(23,178)

$1,298

$(14,148)

$(20,597)

$(34,745)

$(27,492)

Other expenses

0

Interest expenses

(10,847)

(10,847)

(2,686)

(3,145)

(5,831)

(5,831)

Change in fair value of tax receivable liability

(12,056)

(12,056)

(451)

(451)

(451)

Other income

70

70

(1,316)

(1,316)

(1,316)

Total other (expenses) income

(22,833)

(22,833)

(4,453)

(3,145)

(7,598)

(7,598)

Income (loss) before income tax expense

(46,011)

(21,535)

(18,601)

(23,742)

(42,343)

(35,090)

Income tax benefit

8,395

8,395

2,719

2,719

2,719

Net income (loss)

$(37,616)

$(13,140)

$(15,882)

$(23,742)

$(39,624)

$(32,371)

Add:

Interest expense

10,847

5,831

Depreciation and amortization(a)

19,555

9,673

Income tax (benefit)

(8,395)

(2,719)

EBITDA

$8,867

$(19,586)

Loss on extinguishment of debt (b)

1,316

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

(3,010)

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

12,056

451

Share-based compensation expense(e)

14,766

10,660

Transaction expenses(f)

7,777

37,513

Management Fees(g)

211

Legacy commission related charges(h)

7,221

2,427

Employee recruiting costs(i)

123

33

Other taxes(j)

396

259

Restructuring and other strategic initiative costs(k)

579

296

Other non-recurring charges(l)

392

114

Adjusted EBITDA

$49,167

$33,694

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

For the Three Months Ended September 30, 2020 and 2019

(Unaudited)

Successor

Successor

Predecessor

(in $ thousands)

Three Months Ended September 30, 2020

Adjustments(o)

Pro Forma

Three Months Ended September 30, 2020

July 11, 2019 through September 30, 2019

July 1, 2019 through July 10, 2019

Combined

Adjustments(o)

Pro Forma

Three Months Ended September 30, 2019

Revenue

$37,635

$37,635

$23,926

$2,334

$26,260

$26,260

Operating expenses

Other costs of services

$10,492

$10,492

$6,368

$468

$6,836

$6,836

Selling, general and administrative

28,581

28,581

21,003

34,069

55,072

55,072

Depreciation and amortization

15,421

(8,159)

7,262

10,703

333

11,036

(7,253)

3,783

Change in fair value of contingent consideration

(3,750)

(3,750)

Total operating expenses

$50,744

$42,585

$38,074

$34,870

$72,944

$65,691

Income (loss) from operations

$(13,109)

$(4,950)

$(14,148)

$(32,536)

$(46,684)

$(39,431)

Other expenses

Interest expenses

(3,624)

(3,624)

(2,686)

(227)

(2,913)

(2,913)

Change in fair value of tax receivable liability

(1,475)

(1,475)

(451)

(451)

(451)

Other income

25

25

(1,316)

(1,316)

(1,316)

Total other (expenses) income

(5,074)

(5,074)

(4,453)

(227)

(4,681)

(4,680)

Income (loss) before income tax expense

(18,183)

(10,024)

(18,601)

(32,763)

(51,364)

(44,111)

Income tax benefit

3,383

3,383

2,719

2,719

2,719

Net income (loss)

$(14,800)

$(6,641)

$(15,882)

$(32,763)

$(48,645)

$(41,392)

Add:

Amortization of Acquisition-Related Intangibles(m)

4,804

2,525

Loss on extinguishment of debt (b)

1,316

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

(3,750)

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

1,475

451

Share-based compensation expense(e)

5,768

10,409

Transaction expenses(f)

3,332

35,017

Management Fees(g)

11

Legacy commission related charges(h)

7,221

1,877

Employee recruiting costs(i)

67

18

Restructuring and other strategic initiative costs(k)

389

80

Other non-recurring charges(l)

60

114

Pro forma taxes at effective rate(p)

(3,218)

Adjusted Net Income

$9,507

$10,426

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

78,885,221

57,531,359

Adjusted Net income per share

$0.12

$0.18

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

For the Nine Months Ended September 30, 2020 and 2019

(Unaudited)

Successor

Successor

Predecessor

(in $ thousands)

Nine Months Ended September 30, 2020

Adjustments(o)

Pro Forma

Nine Months Ended September 30, 2020

July 11, 2019 through September 30, 2019

January 1, 2019 through July 10, 2019

Combined

Adjustments(o)

Pro Forma

Nine Months Ended September 30, 2019

Revenue

$113,598

$113,598

$23,926

$47,043

$70,969

$70,969

Operating expenses

Other costs of services

$29,990

$29,990

$6,368

$10,216

$16,584

$16,584

Selling, general and administrative

65,765

65,765

21,003

51,201

72,204

72,204

Depreciation and amortization

44,031

(24,476)

19,555

10,703

6,223

16,926

(7,253)

9,673

Change in fair value of contingent consideration

(3,010)

(3,010)

Total operating expenses

$136,776

$112,300

$38,074

$67,640

$105,714

$98,461

Income (loss) from operations

$(23,178)

$1,298

$(14,148)

$(20,597)

$(34,745)

$(27,492)

Other expenses

0

Interest expenses

(10,847)

(10,847)

(2,686)

(3,145)

(5,831)

(5,831)

Change in fair value of tax receivable liability

(12,056)

(12,056)

(451)

(451)

(451)

Other income

70

70

(1,316)

(1,316)

(1,316)

Total other (expenses) income

(22,833)

(22,833)

(4,453)

(3,145)

(7,598)

(7,598)

Income (loss) before income tax expense

(46,011)

(21,535)

(18,601)

(23,742)

(42,343)

(35,090)

Income tax benefit

8,395

8,395

2,719

2,719

2,719

Net income (loss)

$(37,616)

$(13,140)

$(15,882)

$(23,742)

$(39,624)

$(32,371)

Add:

Amortization of Acquisition-Related Intangibles(m)

13,463

6,485

Loss on extinguishment of debt (b)

1,316

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

(3,010)

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

12,056

451

Share-based compensation expense(e)

14,766

10,660

Transaction expenses(f)

7,777

37,513

Management Fees(g)

211

Legacy commission related charges(h)

7,221

2,427

Employee recruiting costs(i)

123

33

Restructuring and other strategic initiative costs(k)

579

296

Other non-recurring charges(l)

392

114

Pro forma taxes at effective rate(p)

(9,160)

Adjusted Net Income

$31,067

$27,135

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

71,307,517

57,531,359

Adjusted Net income per share

$0.44

$0.47

(a)

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

(b)

Reflects write-offs of debt issuance costs relating to Hawk Parent’s term loans and prepayment penalties relating to its previous debt facilities.

(c)

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.

(d)

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

(e)

Represents compensation expense associated with equity compensation plans, totaling $5,768,220 and $14,766,400 in the three and nine months ended September 30, 2020, respectively, $658,195 and $908,978 in the Predecessor periods from July 1, 2019 to July 10, 2019 and January 1, 2019 to July 10, 2019, respectively, and $9,750,821 as a result of new grants made in the Successor period from July 11, 2019 to September 30, 2019.

(f)

Primarily consists of (i) during the three and nine months ended September 30, 2020, professional service fees and other costs incurred in connection with the acquisition of cPayPlus, and additional transaction expenses incurred in connection with the Business Combination and the acquisitions of TriSource Solutions, APS Payments, and Ventanex, which closed in prior periods, as well as professional service expenses related to the follow-on offerings and (ii) during the three and nine months ended September 30, 2019, professional service fees and other costs in connection with the Business Combination, as well as the acquisitions of TriSource Solutions, and APS Payments.

(g)

Reflects management fees paid to Corsair Investments, L.P. pursuant to the management agreement, which terminated upon the completion of the Business Combination.

(h)

Represents payments made to certain employees in connection with significant restructuring of their commission structures. These payments represented commission structure changes which are not in the ordinary course of business.

(i)

Represents payments made to third-party recruiters in connection with a significant expansion of our 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 and nine months ended September 30, 2020 and 2019, and additionally one-time expenses related to the creation of a new entity in connection with equity arrangements for the members of Hawk Parent in connection with the Business Combination in the nine months ended September 30, 2019.

(l)

For the three and nine months ended September 30, 2020, reflects expenses incurred related to one-time accounting system and compensation plan implementation related to becoming a public company, as well as extraordinary refunds to customers and other payments related to COVID-19. For the nine months ended September 30, 2019, reflects expenses incurred related to other one-time legal and compliance matters. Additionally, for the three months ended September 30, 2019 reflects a one-time credit issued to a customer which was not in the ordinary course of business.

(m)

For the three and nine months ended September 30, 2020 reflects (i) amortization of the customer relationships intangibles acquired through Hawk Parent’s acquisitions of PaidSuite and Paymaxx during the year ended December 31, 2017 and the recapitalization transaction in 2016, through which Hawk Parent was formed in connection with the acquisition of a majority interest in Repay Holdings, LLC by certain investment funds sponsored by, or affiliated with, Corsair Capital LLC., (ii) customer relationships, non-compete agreement, software, and channel relationship intangibles acquired through the Business Combination, and (iii) customer relationships, non compete agreement, and software intangibles acquired through Repay Holdings, LLC’s acquisitions of TriSource Solutions, APS Payments, Ventanex, and cPayPlus. For the three and nine months ended September 30, 2019, reflects amortization of customer relationships intangibles acquired through Hawk Parent’s acquisitions and the recapitalization transaction in 2016 and the acquisition of TriSource Solutions described previously. 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

September 30,

Nine months ended

September 30,

(in $ thousands)

2020

2019

2020

2019

Acquisition-related intangibles

$4,804

$2,525

$13,463

$6,485

Software

2,070

1,064

5,176

2,698

Reseller buyouts

15

15

44

44

Amortization

$6,889

$3,604

$18,683

$9,227

Depreciation

373

179

872

446

Total Depreciation and amortization1

$7,262

$3,783

$19,555

$9,673

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.

(n)

Represents the weighted average number of shares of Class A common stock outstanding (on as-converted basis) for the three and nine months ended September 30, 2020, as well as the Successor period from July 11, 2019 to September 30, 2019 (excluding shares that were subject to forfeiture).

(o)

Adjustment for incremental depreciation and amortization recorded due to fair-value adjustments under ASC 805 in the Successor period.

(p)

Represents pro forma income tax adjustment effect associated with items adjusted above. As Hawk Parent, as the accounting Predecessor, was not subject to income taxes, the tax effect above was calculated on the adjustments related to the Successor period only.

 

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 Forms Advisory Board to Encourage Mortgage Transfer Payment Standards and Best Practices

Steady rise in mortgage service transfers between lenders prompts need for leadership to streamline the process across the mortgage industry

ATLANTA–(BUSINESS WIRE)–Nov. 6, 2020– Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY”), a leading provider of vertically integrated payment solutions, today announced the formation of an advisory board to guide development of their Service Transfer Exchange (STX) solution. The STX Advisory Board is composed of mortgage industry experts representing a variety of companies and leadership levels.

Charter members include representatives from:

  • LoanCare
  • loanDepot
  • PHH Mortgage
  • RoundPoint Mortgage Servicing
  • Shellpoint Mortgage Servicing
  • US Bank

REPAY’s Ventanex business unit coordinates the STX network, which automates payment processing and routing between mortgage servicers. “Our advisory board members recognize the challenges of service transfers and are stepping up to help shape standards that will improve the process for servicers and their customers,” said Todd Harbison, REPAY vice president and current moderator of the board.

STX eliminates many labor-intensive steps during the 60-day consumer grace period when the transferring servicer must ensure delivery of missent borrower payments to the receiving servicer. The current process of physical check processing, manual data entry and analysis and shipment processing is cumbersome and error prone.

The STX Advisory Board will design and promote implementation of operating standards to ensure consistency; recommend enhancements to products and services to improve workflows; and promote participation and adoption of the new standards throughout their networks. The goal is to improve and standardize payment flow, eliminate errors, reduce delinquencies and create a better experience for borrowers.

To learn more about the STX Advisory Board and inquire about participation for your organization, please visit www.stxmortgage.com.

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 Completes Acquisition of CPS Payment Services

CPS Payment Services

ATLANTA–(BUSINESS WIRE)–Nov. 3, 2020– Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY”), a leading provider of vertically-integrated payment solutions, today announced that it has completed the previously announced acquisition CPS Payment Services (“CPS”). REPAY paid approximately $78 million in cash at closing. In addition, up to $15 million may become payable through two separate earnouts, which are dependent upon CPS’s performance over various periods through December 31, 2022.

“We are thrilled to announce the quick completion of the CPS acquisition,” said John Morris, CEO of REPAY. “CPS will substantially enhance our B2B offerings and will bring us the opportunity to introduce REPAY’s solutions to new verticals, including education, government, and media sectors.”

CPS, founded in 2011 and headquartered in Atlanta, GA, is a B2B payments and accounts payable (“AP”) automation technology provider that facilitates the issuance, execution, and reconciliation of virtual card, enhanced ACH, ACH, and check payments through an integrated software platform. CPS’s offering is highlighted by its proprietary AP automation software, the CPS Payment Portal, which provides purpose-built, highly configurable workflow management and automation across the entire B2B payments lifecycle from ERP integration to payment execution and reconciliation. CPS has developed a proprietary database of over 20,000 virtual card and enhanced ACH accepting suppliers and serves an expanding base of over 160 enterprise clients across various sectors, with deepest representation in healthcare, education, government, media, and hospitality.

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, our plans, objectives, expectations and intentions with respect to future operations, sales opportunities and growth, products and services; and other statements identified by words such as “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, statements regarding the anticipated benefits from the CPS acquisition, future opportunities for REPAY, including CPS, as well as the level of CPS’s growth and financial contributions. 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 uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.

In addition to factors previously disclosed in prior reports filed with the U.S. Securities and Exchange Commission 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: 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 integrate and/or realize the benefits of the CPS acquisition and any difficulties associated with marketing products and services in the AP automation market to REPAY’s existing B2B customers; 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; risks relating to REPAY’s relationships within the payment ecosystem; the 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 as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond our control. 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 we disclaim 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 we believe to be reliable, however there can be no assurance these forecasts and estimates will prove accurate in whole or in part. Annualized, 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.

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 Expand Integrated B2B Payment Offerings with Sage

APS ClickToPay and APSPays Vault added to help reduce friction and facilitate fast, more convenient payments for medium-sized businesses

ATLANTA–(BUSINESS WIRE)–Nov. 2, 2020–

Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY), a leading provider of vertically integrated payment solutions, today announced a technology integration with Sage X3, providing medium-sized businesses with a simple and secure way to directly submit customer invoices from within the platform. This adds to REPAY’s existing integrations with the Sage 100, Sage 300 and Sage 500 solutions.

The integration is available through APS Payments, a REPAY company and a leading provider of omni-channel B2B integrated payment solutions, and enables business users within the financial management module of the Sage X3 suite with the ability to quickly, securely, and affordably accept credit card or ACH payment invoices with Level 3 transaction processing through APS ClickToPay and APSPays Vault.

“We are uniquely positioned to accommodate a variety of B2B transactions across several sectors, and this expanded integration with Sage further enhances our reach and demonstrates our value across the financial industry,” says Susan Perlmutter, Chief Revenue Officer, REPAY. “We remain committed to helping businesses eliminate friction in their workflows and look forward to continuing to help businesses drive positive outcomes and meet their payment processing needs.”

The APS Payments and Sage X3 is available at no cost to current users, and merchants can easily tokenize credit card data via the APSPays Vault, a PCI-DSS compliant gateway with secure data encryption and many reporting tools for reconciliation.

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 for REPAY:
repayIR@icrinc.com

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

Source: Repay Holdings Corporation