i3 Verticals, Inc. (NASDAQ:IIIV) Q2 2021 Earnings Conference Call May 11, 2021 8:30 AM ET Company Participants Scott Meriwether - Chief Operating Officer Greg Daily - Chief Executive Officer Clay Whitson - Chief Financial Officer Rick Stanford - President Conference Call Participants John Davis - Raymond James Peter Heckmann - D.A. Davidson George Mihalos - Cowen Chris Donat - Piper Sandler Maddie Schrage - KBCM Operator Good day, everyone, and welcome to the i3 Verticals Second Quarter 2021 Earnings Confer ...

Financial Position - As of March 31, 2021, the company had $2.4 million in cash and cash equivalents and $190.0 million of available capacity under its Senior Secured Credit Facility[238]. - As of March 31, 2021, the company had borrowings of $85.0 million under the Senior Secured Credit Facility, with a 1.0% change in interest rate impacting results by $0.9 million[325]. - The total contractual obligations as of March 31, 2021, amounted to $272.2 million, with $31.5 million due within one year[311]. - The total amount due under the Tax Receivable Agreement was $39.6 million as of March 31, 2021, with expected payments over the next 25 years[318]. - The company recognized an additional deferred tax asset of $3.0 million related to the Tax Receivable Agreement[308]. Acquisitions - The company acquired Business Information Systems for $96.0 million, including $52.5 million in cash and 1,202,914 shares of Class A Common Stock[244]. - The acquisition of ImageSoft, Inc. was completed for $47.0 million, with $40.0 million in cash consideration funded by the revolving credit facility[245]. - During the six months ended March 31, 2021, the company completed acquisitions totaling $23.0 million, including $19.6 million in cash consideration[246]. - Total purchase consideration for recent acquisitions included $37.4 million in cash, funded by proceeds from the revolving line of credit, and contingent consideration still being valued[243]. - Cash used in acquisitions for the six months ended March 31, 2021, was $112.1 million, net of cash acquired[301]. Revenue and Payment Volume - Revenue increased by $8.7 million, or 22.2%, to $47.9 million for the three months ended March 31, 2021, compared to $39.2 million for the same period in 2020, primarily driven by acquisitions[263]. - Payment volume rose by $0.7 billion, or 19%, to $4.3 billion for the three months ended March 31, 2021, from $3.6 billion for the same period in 2020, with acquisitions contributing an incremental $0.2 billion[267]. - Revenue increased by $10.9 million, or 13.6%, to $91.2 million for the six months ended March 31, 2021, compared to $80.3 million for the same period in 2020, primarily driven by acquisitions[278]. - Payment volume increased by $0.6 billion, or 8.7%, to $8.1 billion for the six months ended March 31, 2021, from $7.4 billion for the same period in 2020[282]. - Revenue from Proprietary Software and Payments increased by $14.1 million, or 51.6%, to $41.3 million for the six months ended March 31, 2021, from $27.3 million for the same period in 2020[281]. Expenses - Selling, general and administrative expenses increased by $9.7 million, or 46.8%, to $30.5 million for the three months ended March 31, 2021, primarily due to a rise in employment expenses[270]. - Selling, general and administrative expenses rose by $15.4 million, or 38.4%, to $55.5 million for the six months ended March 31, 2021, from $40.1 million for the same period in 2020[285]. - Depreciation and amortization expenses increased by $1.3 million, or 28.9%, to $5.9 million for the three months ended March 31, 2021, compared to $4.5 million for the same period in 2020[271]. - Other costs of services decreased by $0.6 million, or 5.4%, to $11.3 million for the three months ended March 31, 2021, from $12.0 million for the same period in 2020[268]. - Other costs of services increased by $0.1 million, or 0.4%, to $25.0 million for the six months ended March 31, 2021, from $24.9 million for the same period in 2020[283]. Net Income and Loss - The net loss attributable to i3 Verticals, Inc. was $440,000 for the three months ended March 31, 2021, a decrease of $297,000, or 40.3%, compared to a net income of $737,000 for the same period in 2020[262]. - Net (loss) income attributable to i3 Verticals, Inc. was $(2.1) million for the six months ended March 31, 2021, compared to $0.6 million for the same period in 2020, representing a decrease of $2.7 million[277]. Cash Flow - Net cash provided by operating activities was $23.9 million for the six months ended March 31, 2021, compared to $8.8 million for the same period in 2020[299]. - Net cash provided by operating activities increased by $15.0 million to $23.9 million for the six months ended March 31, 2021, compared to $8.8 million for the same period in 2020[300]. - Net cash used in investing activities increased significantly to $115.9 million for the six months ended March 31, 2021, from $3.9 million for the same period in 2020[299]. - Net cash used in investing activities rose by $112.1 million to $115.9 million for the six months ended March 31, 2021, primarily due to cash used in acquisitions[301]. - Net cash provided by financing activities increased by $88.9 million to $83.9 million for the six months ended March 31, 2021, compared to a cash outflow of $5.0 million for the same period in 2020[302]. Tax and Interest Rates - The effective tax rate was 62.1% for the three months ended March 31, 2021, differing from the federal statutory rate of 21% due to the company's tax structure[275]. - The Senior Secured Credit Facility requires maintenance of a minimum consolidated interest coverage ratio of 3.00 to 1.00 and a maximum total leverage ratio of 5.00 to 1.00[304]. - The interest rate on the Senior Secured Credit Facility is based on LIBOR plus an applicable margin of 3.25% as of March 31, 2021[324]. - The company is required to maintain a minimum consolidated interest coverage ratio of 3.00 to 1.00 and a maximum total leverage ratio of 5.00 to 1.00[324]. Market Impact - The company experienced a decline in payment volume and revenue due to the COVID-19 pandemic, particularly in the education and public sector verticals[235]. - Integrated payments accounted for 59% of payment volume for the three months ended March 31, 2021, up from 55% for the same period in 2020[259]. - Average net volume attrition per month remained below 2% during the six months ended March 31, 2021[260]. - The company does not expect significant impact from foreign currency transaction risk as invoices are denominated in U.S. dollars[326].

FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Registrant's telephone number, including area code) For the transition period from to Commission file number: 001-38532 i3 Verticals, Inc. (Exact name of registrant as specified in its charter) De ...

i3 Verticals, Inc. (NASDAQ:IIIV) Q1 2021 Earnings Conference Call February 9, 2021 8:30 AM ET Company Participants Scott Meriwether - Chief Operating Officer Greg Daily - Chairman & Chief Executive Officer Clay Whitson - Chief Financial Officer Rick Stanford - President Conference Call Participants John Davis - Raymond James Peter Heckmann - Davidson Allison Jordan - Cowen Cathy Chen - Bank of America Josh Beck - KeyBanc Chris Donat - Piper Sandler Operator Good day, everyone, and welcome to the i3 Vertical ...

VERTICALS Q1 Fiscal 2021 Supplemental Information Q1 Fiscal 2021 Segment Performance(1) | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------|-------|----------------------------------------|-------|------------------------------|----------------------------| | ($ in thousands) \nAdjusted Net Revenue (2) | | Three months ended December 31, \n2020 | | 2019 (3) | Period over period growth | | Merchant Services, excluding Purchased Portfolios | | | | $ 24,126 $ 2 ...

VERTICALS Q4 Fiscal 2020 Supplemental Information Q4 Fiscal 2020 Segment Performance(1)(3) | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------|-------|-----------------------------------------|-------|------------------------------|----------------------------| | ($ in thousands) | | Three months ended September 30, \n2020 | | 2019 | Period over period growth | | Adjusted Net Revenue (2) | | | | | | | Merchant Services, excluding Purchased Portfolios | | | | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38532 i3 Verticals, Inc. (Exact name of registrant as specified in its charter) Delaware 82-4052852 (State or other jurisdiction of incorporat ...

i3 Verticals Inc (NASDAQ:IIIV) Q4 2020 Results Conference Call November 20, 2020 8:30 AM ET Company Participants Scott Meriwether - Chief Operating Officer Gregory Daily - Chief Executive Officer Clay Whitson - Chief Financial Officer Rick Stanford - President Conference Call Participants John Davis - Raymond James & Associates George Mihalos - Cowen & company Jason Kupferberg - Bank of America Peter Heckman - DA Davidson Josh Beck - KeyBanc Capital Market Operator Good day, everyone, and welcome to i3 Vert ...

VERTICALS Q3 Fiscal 2020 Supplemental Information Q3 Fiscal 2020 Segment Performance(1) | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------|-------|------------------------------------|-------|-------------------------------|----------------------------| | ($ in thousands) | | Three months ended June 30, \n2020 | | 2019 | Period over period growth | | Adjusted Net Revenue (2) | | | | | | | Merchant Services, excluding Purchased Portfolios | | | | $ 20,676 $ ...

Financial Data and Key Metrics Changes - The company reported net revenue of $31.6 million for Q3 2020, a decline of 12% compared to $36.0 million in Q3 2019 [26][41] - Adjusted EBITDA decreased by 27% to $7.1 million for Q3 2020 from $9.7 million for Q3 2019, with an adjusted EBITDA margin of 22.3% compared to 26.9% in the prior year [28][41] - Payment volume saw a significant recovery after hitting a low in April, with May increasing by 29%, June by 19%, and July by 4% [23][41] Business Line Data and Key Metrics Changes - Proprietary Software and Payments segment net revenues were flat at $10.5 million for Q3 2020 compared to Q3 2019, with adjusted EBITDA declining 24% to $2.7 million [30][31] - Merchant Services segment net revenues declined 16% to $21.5 million for Q3 2020 from $25.5 million in Q3 2019, with adjusted EBITDA also down 24% to $6.6 million [36][37] - Software and related services revenues accounted for 26% of total revenues for Q3 2020, up from 5% in fiscal year 2017 [25][26] Market Data and Key Metrics Changes - The education sector was the hardest hit due to school closures, with expectations of lighter payment volumes in the fourth quarter [11][12] - Public Sector vertical showed signs of recovery with increased demand for modern solutions as local governments seek to digitize services [16][43] - The company noted that card-not-present transactions represented over 50% of total transactions, although this declined slightly due to the absence of school revenues [71] Company Strategy and Development Direction - The company has restarted its acquisition strategy after pausing due to COVID-19, closing two acquisitions in July, one in Public Sector and another in Nonprofit [19][55] - The focus remains on increasing software revenues, which have proven more resilient during the pandemic [25][84] - The company aims to become a one-stop shop for Public Sector customers by expanding its unified product offering [48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery trends in payment volume and the potential for growth in software revenues despite the challenges posed by COVID-19 [9][20] - The company does not anticipate Q4 2020 results to approach the levels seen in Q4 2019 due to ongoing uncertainties [41] - Management highlighted the importance of digitization in the Public Sector and Education sectors as a long-term growth opportunity [84] Other Important Information - The company implemented cost-cutting measures that saved nearly $3 million in Q3 2020, allowing corporate expenses to remain steady despite lower revenues [29] - The balance sheet remains strong, with $35 million borrowed under a $275 million revolver and a total leverage ratio of 3.7x [39] Q&A Session Summary Question: Is revenue tracking closely with volume changes? - Management indicated that while volumes are recovering, revenue may not deviate materially from volume growth [60] Question: Can you provide examples of increased demand in the Public Sector? - Management noted a shift towards SaaS models and online solutions, with increased interest from government entities [62] Question: What is the revenue impact of delayed implementations? - Management mentioned a specific $250,000 job that was pushed, indicating a broader impact across the company [63] Question: What is the expected contribution from recent acquisitions? - The acquisitions are expected to contribute between $1 million to $1.5 million of EBITDA [70] Question: How are card-not-present transactions trending? - Card-not-present transactions represent over 50% of total transactions, with expectations for growth over time [72] Question: What is the outlook for the Education sector? - Management estimates that they might see about 50% of normal payment revenues for the fall semester [79] Question: Will the recent acquisitions affect M&A activity? - Management confirmed that they will continue to pursue acquisitions while managing leverage ratios [99]