(in thousands) | |||||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues | $ 144,048 | $ 106,091 | $ 514,901 | $ 404,342 | |||||||||||||||||||
Costs of services | (95,358) | (73,641) | (359,885) | (277,374) | |||||||||||||||||||
Gross profit | $ 48,690 | $ 32,450 | $ 155,016 | $ 126,968 | |||||||||||||||||||
Gross Profit Margin | 33.8 % | 30.6 % | 30.1 % | 31.4 % |
(in thousands) | |||||||||||||||||||||||
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net (loss) income | $ 14,094 | $ (1,004) | $ 1,389 | $ 25,661 | |||||||||||||||||||
Interest expense | 11,877 | 9,385 | 36,485 | 44,839 | |||||||||||||||||||
Income tax (benefit) expense | (5,307) | (2,020) | (5,258) | 10,899 | |||||||||||||||||||
Depreciation and amortization | 17,574 | 9,889 | 49,697 | 40,775 | |||||||||||||||||||
EBITDA | 38,238 | 16,250 | 82,313 | 122,174 | |||||||||||||||||||
Debt extinguishment and modification | — | — | 8,322 | 1,899 | |||||||||||||||||||
Gain on sale of business and investment | (7,643) | — | (7,643) | (62,091) | |||||||||||||||||||
Write-off of equity method investment | — | — | — | 211 | |||||||||||||||||||
Selling, general and administrative | 1,403 | 1,180 | 10,089 | 5,710 | |||||||||||||||||||
Non-cash stock-based compensation | 864 | 803 | 3,213 | 2,430 | |||||||||||||||||||
Adjusted EBITDA | $ 32,862 | $ 18,233 | $ 96,294 | $ 70,333 |
(in thousands) | ||||||||||||||||||||||||||
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | Segment | ||||||||||||||||||||||
Selling, general and administrative expenses: | ||||||||||||||||||||||||||
Legal, professional, accounting and consulting fees | $ 170 | $ 419 | $ 7,291 | $ 1,222 | Corporate | |||||||||||||||||||||
Acquisition transaction services | — | (119) | 69 | 2,628 | Enterprise | |||||||||||||||||||||
Other expense, net | 1,233 | — | 2,729 | — | Corporate | |||||||||||||||||||||
Intangible carrying value adjustment | — | 773 | — | 1,753 | SMB | |||||||||||||||||||||
Change in fair value of contingent consideration | — | (360) | — | (360) | SMB | |||||||||||||||||||||
Write-down of note receivable | — | 467 | — | 467 | SMB | |||||||||||||||||||||
$ 1,403 | $ 1,180 | $ 10,089 | $ 5,710 |
Consolidated Total Debt at December 31, 2021: | |||||||||||||||||||||||
Term Facility | $ 616,900 | ||||||||||||||||||||||
Revolving Credit Facility | 15,000 | ||||||||||||||||||||||
631,900 | |||||||||||||||||||||||
Less unrestricted cash | (20,300) | ||||||||||||||||||||||
Consolidated Net Debt | $ 611,600 |
(in thousands, except per share amounts) | Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues | $ 144,048 | $ 106,091 | $ 514,901 | $ 404,342 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Costs of services | 95,358 | 73,641 | 359,885 | 277,374 | |||||||||||||||||||
Salary and employee benefits | 12,010 | 9,812 | 43,818 | 39,507 | |||||||||||||||||||
Depreciation and amortization | 17,574 | 9,889 | 49,697 | 40,775 | |||||||||||||||||||
Selling, general and administrative | 6,195 | 6,520 | 28,408 | 25,825 | |||||||||||||||||||
Total operating expenses | 131,137 | 99,862 | 481,808 | 383,481 | |||||||||||||||||||
Operating income | 12,911 | 6,229 | 33,093 | 20,861 | |||||||||||||||||||
Other (expenses) income | |||||||||||||||||||||||
Interest expense | (11,877) | (9,385) | (36,485) | (44,839) | |||||||||||||||||||
Debt extinguishment and modification costs | — | — | (8,322) | (1,899) | |||||||||||||||||||
Gain on sale of business and investment | 7,643 | — | 7,643 | 107,239 | |||||||||||||||||||
Other income, net | 110 | 182 | 202 | 596 | |||||||||||||||||||
Total other (expenses) income, net | (4,124) | (9,203) | (36,962) | 61,097 | |||||||||||||||||||
Income (loss) before income taxes | 8,787 | (2,974) | (3,869) | 81,958 | |||||||||||||||||||
Income tax (benefit) expense | (5,307) | (2,020) | (5,258) | 10,899 | |||||||||||||||||||
Net income (loss) | 14,094 | (954) | 1,389 | 71,059 | |||||||||||||||||||
Less: Dividends and accretion attributable to redeemable senior preferred stockholders | (8,285) | — | (18,009) | — | |||||||||||||||||||
Less: NCI preferred unit redemptions, net of deferred tax benefit | 2,756 | — | (8,021) | — | |||||||||||||||||||
Less: Net income attributable to redeemable and redeemed NCIs | — | (50) | — | (45,398) | |||||||||||||||||||
Net income (loss) attributable to common stockholders | $ 8,565 | $ (1,004) | $ (24,641) | $ 25,661 | |||||||||||||||||||
Earnings (loss) per common share: | |||||||||||||||||||||||
Basic | $ 0.11 | $ (0.01) | $ (0.34) | $ 0.38 | |||||||||||||||||||
Diluted | $ 0.11 | $ (0.01) | $ (0.34) | $ 0.38 | |||||||||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||||||
Basic | 78,467 | 67,288 | 71,902 | 67,158 | |||||||||||||||||||
Diluted | 79,013 | 67,532 | 71,902 | 67,263 |
(in thousands) | |||||||||||
December 31, 2021 | December 31, 2020 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ 20,300 | $ 9,241 | |||||||||
Restricted cash | 28,859 | 78,879 | |||||||||
Accounts receivable, net of allowances | 58,423 | 41,321 | |||||||||
Prepaid expenses and other current assets | 15,807 | 3,500 | |||||||||
Current portion of notes receivable, net of allowances | 272 | 2,190 | |||||||||
Settlement assets and customer account balances | 479,471 | 753 | |||||||||
Total current assets | 603,132 | 135,884 | |||||||||
Notes receivable, less current portion | 105 | 5,527 | |||||||||
Property, equipment and software, net | 25,233 | 22,875 | |||||||||
Goodwill | 365,740 | 106,832 | |||||||||
Intangible assets, net | 340,211 | 98,057 | |||||||||
Deferred income taxes, net | 8,265 | 46,697 | |||||||||
Other noncurrent assets | 9,256 | 1,957 | |||||||||
Total assets | $ 1,351,942 | $ 417,829 | |||||||||
Liabilities, Redeemable Senior Preferred Stock and Stockholders' Deficit | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ 42,523 | $ 29,821 | |||||||||
Accrued residual commissions | 29,532 | 23,824 | |||||||||
Customer deposits and advance payments | 5,021 | 2,883 | |||||||||
Current portion of long-term debt | 6,200 | 19,442 | |||||||||
Settlement and customer account obligations | 500,291 | 72,878 | |||||||||
Total current liabilities | 583,567 | 148,848 | |||||||||
Long-term debt, net of current portion, discounts and debt issuance costs | 604,105 | 357,873 | |||||||||
Other noncurrent liabilities | 18,349 | 9,672 | |||||||||
Total noncurrent liabilities | 622,454 | 367,545 | |||||||||
Total liabilities | 1,206,021 | 516,393 | |||||||||
Redeemable senior preferred stock | 210,158 | — | |||||||||
Stockholders' deficit: | |||||||||||
Preferred stock | — | — | |||||||||
Common stock | 77 | 68 | |||||||||
Treasury stock, at cost | (4,091) | (2,388) | |||||||||
Additional paid-in capital | 39,835 | 5,769 | |||||||||
Accumulated deficit | (100,058) | (102,013) | |||||||||
Total stockholders' deficit | (64,237) | (98,564) | |||||||||
Total liabilities, redeemable senior preferred stock and stockholders' deficit | $ 1,351,942 | $ 417,829 |
(in thousands) | Years Ended December 31, | ||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ 1,389 | $ 71,059 | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Gain and transaction costs recognized on sale of business and investment | (7,643) | (112,622) | |||||||||
Depreciation and amortization of assets | 49,697 | 40,775 | |||||||||
Stock-based compensation | 3,213 | 2,430 | |||||||||
Amortization of debt issuance costs and discounts | 2,305 | 2,396 | |||||||||
Write-off of deferred loan costs and discount | 2,580 | 1,523 | |||||||||
Deferred income tax (benefit) provision | (2,559) | 2,960 | |||||||||
Change in fair value of contingent consideration | — | (360) | |||||||||
Payment-in-kind interest | (23,715) | 8,573 | |||||||||
Impairment charges for intangible asset | — | 1,753 | |||||||||
Other non-cash items, net | 462 | 444 | |||||||||
Change in operating assets and liabilities (net of acquisitions and sale of business and investment): | |||||||||||
Accounts receivable | (16,694) | (5,160) | |||||||||
Prepaid expenses and other current assets | (1,597) | 303 | |||||||||
Income taxes (receivable) payable | (5,107) | (238) | |||||||||
Notes receivable | 333 | (2,230) | |||||||||
Accounts payable and other accrued liabilities | 7,018 | 1,343 | |||||||||
Customer deposits and advance payments | 2,138 | (2,045) | |||||||||
Other assets and liabilities, net | (2,443) | 1,298 | |||||||||
Net cash provided by operating activities | 9,377 | 12,202 | |||||||||
Cash flows from investing activities: | |||||||||||
Acquisitions of businesses, net of cash acquired | (407,129) | — | |||||||||
Proceeds from sale of business and investment | 15,278 | 179,416 | |||||||||
Additions to property, equipment and software | (9,719) | (7,461) | |||||||||
Notes receivable loan funding | — | — | |||||||||
Acquisitions of intangible assets | (49,463) | (5,559) | |||||||||
Net cash (used in) provided by investing activities | (451,033) | 166,396 | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of long-term debt, net of issue discount | 607,318 | — | |||||||||
Debt issuance and modification costs paid | (9,073) | (2,749) | |||||||||
Repayments of long-term debt | (361,425) | (110,507) | |||||||||
Borrowings under revolving credit facility | 30,000 | 7,000 | |||||||||
Repayments of borrowings under revolving credit facility | (15,000) | (18,505) | |||||||||
Proceeds from the issuance of redeemable senior preferred stock, net of discount | 219,062 | — | |||||||||
Redeemable senior preferred stock issuance fees and costs | (8,098) | — | |||||||||
Redemption of redeemable NCI in subsidiary | — | (5,654) | |||||||||
Repurchases of common stock and shares withheld for taxes | (1,703) | — | |||||||||
Dividends paid to redeemable senior preferred stockholders | (7,460) | — | |||||||||
Profit distributions to redeemable non-controlling interests of subsidiaries | (815) | (45,398) | |||||||||
Proceeds from exercise of stock options | 1,196 | — | |||||||||
Settlement and customer accounts obligations, net | 417,627 | 34,870 | |||||||||
Net cash provided by (used in) financing activities | 871,629 | (140,943) | |||||||||
Net change in cash and cash equivalents, and restricted cash: | |||||||||||
Net increase in cash and cash equivalents, and restricted cash | 429,973 | 37,655 | |||||||||
Cash and cash equivalents, and restricted cash at beginning of period | 88,120 | 50,465 | |||||||||
Cash and cash equivalents, and restricted cash equivalents at end of period | $ 518,093 | $ 88,120 |
Years Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Reconciliation of cash and cash equivalents, and restricted cash: | |||||||||||
Cash and cash equivalents | $ 20,300 | $ 9,241 | |||||||||
Restricted cash | 28,859 | 78,879 | |||||||||
Cash and cash equivalents included in customer account balances | 468,934 | — | |||||||||
Total cash and cash equivalents, and restricted cash | $ 518,093 | $ 88,120 |
(in thousands) | Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
SMB Payments: | ||||||||||||||||||||||||||
Revenue | $ 121,482 | $ 101,483 | $ 475,630 | $ 370,521 | ||||||||||||||||||||||
Operating expenses | 110,978 | 88,855 | 422,746 | 332,624 | ||||||||||||||||||||||
Operating Income | $ 10,504 | $ 12,628 | $ 52,884 | $ 37,897 | ||||||||||||||||||||||
Operating margin | 8.6 % | 12.4 % | 11.1 % | 10.2 % | ||||||||||||||||||||||
Depreciation and amortization | $ 11,014 | $ 9,532 | $ 41,144 | $ 35,627 | ||||||||||||||||||||||
Key indicators: | ||||||||||||||||||||||||||
Merchant bankcard processing dollar value | $ 13,847,825 | $ 11,070,839 | $ 53,411,622 | $ 42,020,429 | ||||||||||||||||||||||
Merchant bankcard transaction volume | 147,138 | 120,340 | 578,102 | 456,066 | ||||||||||||||||||||||
B2B Payments: | ||||||||||||||||||||||||||
Revenue | $ 5,416 | $ 3,905 | 17,138 | 20,922 | ||||||||||||||||||||||
Operating expenses | 4,865 | 4,390 | 17,003 | 19,999 | ||||||||||||||||||||||
Operating income (loss) | $ 551 | $ (485) | $ 135 | $ 923 | ||||||||||||||||||||||
Operating margin | 10.2 % | (12.4) % | 0.8 % | 4.4 % | ||||||||||||||||||||||
Depreciation and amortization | $ 74 | $ 76 | $ 294 | $ 306 | ||||||||||||||||||||||
Key indicators: | ||||||||||||||||||||||||||
Merchant bankcard processing dollar value | $ 97,447 | $ 53,984 | $ 323,502 | $ 249,779 | ||||||||||||||||||||||
Merchant bankcard transaction volume | 77 | 30 | 220 | 102 | ||||||||||||||||||||||
Enterprise Payments: | ||||||||||||||||||||||||||
Revenue | $ 17,150 | $ 703 | $ 22,133 | $ 12,899 | ||||||||||||||||||||||
Operating expenses | 11,952 | $ 523 | 15,370 | 11,000 | ||||||||||||||||||||||
Operating Income | $ 5,198 | $ 180 | $ 6,763 | $ 1,899 | ||||||||||||||||||||||
Operating margin | 30.3 % | 25.6 % | 30.6 % | 14.7 % | ||||||||||||||||||||||
Depreciation and amortization | $ 6,219 | $ (1) | $ 7,158 | $ 3,674 | ||||||||||||||||||||||
Key indicators: | ||||||||||||||||||||||||||
Merchant bankcard processing dollar value | $ 13,573 | $ 11,857 | $ 52,376 | $ 46,542 | ||||||||||||||||||||||
Merchant bankcard transaction volume | 144 | 113 | 549 | 487 | ||||||||||||||||||||||
Operating income of reportable segments | $ 16,253 | $ 12,323 | $ 59,782 | $ 40,719 | ||||||||||||||||||||||
Less: Corporate expense | (3,342) | (6,094) | (26,689) | (19,858) | ||||||||||||||||||||||
Consolidated operating income | $ 12,911 | $ 6,229 | $ 33,093 | $ 20,861 | ||||||||||||||||||||||
Corporate depreciation and amortization | $ 268 | $ 282 | $ 1,101 | $ 1,168 | ||||||||||||||||||||||
Key indicators: | ||||||||||||||||||||||||||
Merchant bankcard processing dollar value | $ 13,958,845 | $ 11,136,680 | $ 53,787,500 | $ 42,316,750 | ||||||||||||||||||||||
Merchant bankcard transaction volume | 147,359 | 120,483 | 578,871 | 456,655 |