Priority Technology Holdings Inc
For the period ended Mar 31, 2024. Filed May 9, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 9, 2024
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16. Segment Information
- Segment Information
The Company hasthree reportable segments:
SMB Payments –Provides full-service acquiring and payment-enabled solutions for B2C transactions, leveraging Priority's proprietary software platform, distributed through ISO, direct sales and vertically focused ISV channels.
B2B Payments – provides market-leading AP automation solutions to corporations, software partners and industry leading FIs (including Citibank and Mastercard) in addition to working improving cash flow by providing instant access to working capital.
Enterprise Payments –Provides embedded finance and treasury solutions to enterprise customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments.
Corporate includes costs of corporate functions and shared services not allocated to our reportable segments.
In January 2024, the Company changed the grouping of certain business activity to conform to the way we internally manage and monitor the business. As a result, certain immaterial activity was reassigned from the SMB Payments segment to the Enterprise Payments segment effective January 1, 2024. Impact on prior year segment results were determined to be immaterial and have not been reclassified to reflect this change.
Information on reportable segments and reconciliations to consolidated revenues, consolidated depreciation and amortization, and consolidated operating income are as follows:
| (in thousands) | Three Months Ended March 31, | |
|---|---|---|
| 2024 | 2023 | |
| Revenues: | ||
| SMB Payments | $143,751 | $154,933 |
| B2B Payments | 21,115 | 2,786 |
| Enterprise Payments | 40,853 | 27,309 |
| Consolidated revenues | $205,719 | $185,028 |
| Depreciation and amortization: | ||
| SMB Payments | $8,802 | $10,846 |
| B2B Payments | 1,640 | 125 |
| Enterprise Payments | 4,356 | 6,690 |
| Corporate | 455 | 387 |
| Consolidated depreciation and amortization | $15,253 | $18,048 |
| Operating income (loss): | ||
| SMB Payments | $12,383 | $12,011 |
| B2B Payments | (793) | (849) |
| Enterprise Payments | 25,547 | 12,663 |
| Corporate | (9,114) | (6,977) |
| Consolidated operating income | $28,023 | $16,848 |
A reconciliation of total operating income of reportable segments to the Company's net (loss) income is provided in the following table:
| (in thousands) | Three Months Ended March 31, | |
|---|---|---|
| 2024 | 2023 | |
| Total operating income of reportable segments | $37,137 | $23,825 |
| Corporate | (9,114) | (6,977) |
| Interest expense | (20,880) | (17,699) |
| Other income, net | 632 | 212 |
| Income tax (expense) benefit | (2,582) | 133 |
| Net income (loss) | $5,193 | $(506) |
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