Priority Technology Holdings Inc
For the period ended Sep 30, 2024. Filed Nov 7, 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.
Sep 30, 2024 · Filed Nov 7, 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 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.
The Company does not have dedicated assets assigned to any particular reportable segment and such information is not available and continues to be aggregated. Corporate includes costs of corporate functions and shared services not allocated to our reportable segments.
Due to the recent acquisitions, growth, implementation of a shared services model and management of a single unified commerce engine across our payments infrastructure, the costs of operating overhead and shared services becomes less identifiable at the segment level. Therefore, the process of review of the CODM was updated during the quarter ended June 30, 2024. The CODM's review of segment performance and allocation of resources are based on adjusted earnings before interest, income tax and depreciation and amortization expenses ("EBITDA"). Adjusted EBITDA at each segment level includes revenues of the segment, less costs of revenue (excluding depreciation and amortization) and operating expenses that are directly related to those revenues. Operating overhead and shared costs are managed centrally and included in the corporate segment. All comparative periods have been adjusted to reflect this update.
Information on reportable segments and reconciliations to income (loss) before income taxes are as follows:
| (in thousands) | SMB Payments | B2BPayments | Enterprise Payments | Corporate | Eliminations | Total Consolidated |
|---|---|---|---|---|---|---|
| Revenues | $158,770 | $22,143 | $47,099 | $— | $(963) | $227,049 |
| Adjusted EBITDA | $28,644 | $1,933 | $40,940 | $(16,876) | $— | $54,641 |
| (in thousands) | SMB Payments | B2BPayments | Enterprise Payments | Corporate | Eliminations | Total Consolidated |
|---|---|---|---|---|---|---|
| Revenues | $140,241 | $13,985 | $35,174 | $— | $(385) | $189,015 |
| Adjusted EBITDA | $27,613 | $1,359 | $29,757 | $(13,767) | $— | $44,962 |
| (in thousands) | SMB Payments | B2BPayments | Enterprise Payments | Corporate | Eliminations | Total Consolidated |
|---|---|---|---|---|---|---|
| Revenues | $457,875 | $65,368 | $131,758 | $— | $(2,366) | $652,635 |
| Adjusted EBITDA | $82,265 | $5,209 | $112,911 | $(47,853) | $— | $152,532 |
| (in thousands) | SMB Payments | B2BPayments | Enterprise Payments | Corporate | Eliminations | Total Consolidated |
|---|---|---|---|---|---|---|
| Revenues | $443,122 | $19,744 | $93,919 | $— | $(452) | $556,333 |
| Adjusted EBITDA | $84,449 | $1,877 | $77,853 | $(40,484) | $— | $123,695 |
| Three Months EndedSeptember 30, | Nine Months EndedSeptember 30, | |||
|---|---|---|---|---|
| (in thousands) | 2024 | 2023 | 2024 | 2023 |
| Reconciliation of Segment measure of profit or loss to income (loss) before income taxes | ||||
| Total consolidated Adjusted EBITDA | $54,641 | $44,962 | $152,532 | $123,695 |
| Interest expense | (23,246) | (19,997) | (65,836) | (55,461) |
| Depreciation and amortization | (13,733) | (17,275) | (44,230) | (53,303) |
| Debt modification and extinguishment expenses | (43) | — | (8,666) | — |
| Selling, general and administrative (non-recurring) | (696) | (2,114) | (2,131) | (4,410) |
| Non-cash stock based compensation | (1,416) | (1,501) | (4,878) | (5,183) |
| Other non-recurring gain, net | — | 166 | — | 7 |
| Income before income taxes | $15,507 | $4,241 | $26,791 | $5,345 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.