Priority Technology Holdings, Inc. (NASDAQ:PRTH) Q2 2021 Earnings Conference Call August 9, 2021 11:00 AM ET Company Participants Dave Faupel - Chief Marketing Officer Tom Priore - Chairman and Chief Executive Officer Mike Vollkommer - Chief Financial Officer Conference Call Participants Andrew Scutt - ROTH Capital Partners Brian Kinstlinger - Alliance Global George Mihalos - Cowen Tyler Roberts - TBK Bank Operator Good day and thank you for standing by and welcome to the Priority Technology Holdings Second ...

Priority Technology Holdings, Inc. Supplemental Slides for the Second Quarter 2021 Earnings Call August 9, 2021 Forward-Looking Statements The press release and this presentation contain "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, products and services, and o ...

Part I. Financial Information [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for the quarter ended March 31, 2021, show total revenues of **$113.3 million**, an increase from **$96.9 million** in the prior-year period, with a net loss of **$2.7 million**, an improvement from **$5.9 million** in Q1 2020, and a total stockholders' deficit of **$99.8 million** Condensed Consolidated Balance Sheet Highlights (Unaudited) | (in thousands) | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $5,827 | $9,241 | | Total current assets | $122,778 | $135,884 | | Goodwill | $106,832 | $106,832 | | Intangible assets, net | $91,062 | $98,057 | | **Total assets** | **$400,492** | **$417,829** | | **Liabilities & Stockholders' Deficit** | | | | Total current liabilities | $140,790 | $148,848 | | Long-term debt, net | $350,667 | $357,873 | | **Total liabilities** | **$500,247** | **$516,393** | | **Total stockholders' deficit** | **$(99,755)** | **$(98,564)** | Condensed Consolidated Statements of Operations (Unaudited) | (in thousands, except per share) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | **Revenues** | **$113,297** | **$96,933** | | Income from operations | $4,527 | $3,559 | | Loss before income taxes | $(4,910) | $(7,102) | | **Net loss** | **$(2,679)** | **$(5,869)** | | **Loss per common share (Basic & Diluted)** | **$(0.04)** | **$(0.09)** | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | (in thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(13,426) | $(7,254) | | Net cash used in investing activities | $(5,691) | $(3,229) | | Net cash used in financing activities | $(4,243) | $(251) | | **Net decrease in cash and restricted cash** | **$(23,360)** | **$(10,734)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies, revenue disaggregation, debt obligations, segment performance, and significant subsequent events, including a new **$630 million** credit facility, **$150 million** in senior preferred stock, and the acquisition of Finxera Holdings, Inc Disaggregation of Revenue | (in thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Merchant card fees | $107,702 | $89,086 | | Outsourced services and other services | $4,378 | $6,791 | | Equipment | $1,217 | $1,056 | | **Total revenues** | **$113,297** | **$96,933** | Outstanding Debt Obligations | (in thousands) | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Senior Credit Agreement - Term facility | $274,557 | $279,417 | | Term Loan - Subordinated | $104,547 | $102,623 | | **Total debt obligations** | **$379,104** | **$382,040** | - On March 5, 2021, the company entered into a Merger Agreement to acquire Finxera Holdings, Inc. for a purchase price starting at **$425 million**, consisting of cash and stock[113](index=113&type=chunk)[115](index=115&type=chunk) - On April 27, 2021, the company entered into a new Credit and Guaranty Agreement with Truist Bank for senior credit facilities of up to **$630 million** to refinance existing debt and fund the Finxera acquisition[122](index=122&type=chunk)[123](index=123&type=chunk) - On April 27, 2021, the company issued and sold **150,000 shares** of senior preferred stock for **$150 million** and issued warrants to purchase common stock, with proceeds used to fund the refinancing[117](index=117&type=chunk)[119](index=119&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights a **16.9%** increase in consolidated revenue to **$113.3 million** for Q1 2021, driven primarily by **26.0%** growth in the Consumer Payments segment, reflecting a recovery from COVID-19 impacts and strength in specialized ecommerce, while the Integrated Partners segment saw a significant revenue decline due to a business sale Consolidated Results of Operations Comparison | (dollars in thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | % Change | | :--- | :--- | :--- | :--- | | **Revenues** | **$113,297** | **$96,933** | **16.9%** | | Costs of services | $81,863 | $66,364 | 23.4% | | Income from operations | $4,527 | $3,559 | 27.2% | | **Net loss** | **$(2,679)** | **$(5,869)** | **(54.4)%** | - The Consumer Payments segment revenue increased by **$22.4 million (26.0%)**, driven by **$9.7 million (372.1%)** growth from high-margin specialized ecommerce merchants and **$12.7 million (15.2%)** growth in the base consumer payments business[155](index=155&type=chunk) - The Integrated Partners segment revenue decreased by **$3.1 million (69.0%)** primarily due to the sale of the RentPayment business on September 22, 2020, which had generated **$3.8 million** in revenue in Q1 2020[159](index=159&type=chunk) - As of March 31, 2021, the company was in compliance with its debt covenants, with a Total Net Leverage Ratio of **5.44x**, below the maximum permitted ratio of **7.71x**[71](index=71&type=chunk)[191](index=191&type=chunk)[193](index=193&type=chunk) - The company's operating results reflect a **recovery** from the negative effects of the COVID-19 pandemic, with processing volumes returning and **revenue growth accelerating** since May 2020[152](index=152&type=chunk)[153](index=153&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company states that its exposures to market risk have **not materially changed** since the disclosures made in its Annual Report on Form 10-K for the year ended December 31, 2020 - There have been **no material changes** in the company's market risk exposures since December 31, 2020[208](index=208&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were **effective** as of March 31, 2021, with **no material changes** in internal control over financial reporting during the first quarter of 2021 - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2021[210](index=210&type=chunk) - **No changes occurred** during the first quarter of 2021 that have **materially affected**, or are reasonably likely to materially affect, the company's internal control over financial reporting[211](index=211&type=chunk) Part II. Other Information [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in legal proceedings and claims in the ordinary course of business but does **not believe** any current proceedings will have a **material adverse effect** on its financial position, operations, or cash flows - The company is **not currently a party** to any legal proceedings that are expected to have a **material adverse effect** on its financial condition or results of operations[214](index=214&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) The company refers investors to the risk factors discussed in its Annual Report on Form 10-K, stating that those factors, along with other information in this report, should be carefully considered - The report directs readers to the "Risk Factors" section of the company's Annual Report for a **comprehensive discussion** of potential risks[215](index=215&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were **no unregistered sales** of equity securities or use of proceeds to report for the period - This item is **not applicable** for the reporting period[217](index=217&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the CEO and CFO, and agreements related to the April 2021 financing activities such as the **Securities Purchase Agreement** and the **new Credit Agreement** - Key exhibits filed include the **Securities Purchase Agreement**, **Registration Rights Agreement**, and the **new Credit Agreement**, all dated April 27, 2021[218](index=218&type=chunk)

Priority Technology Holding Inc. (NASDAQ:PRTH) Q1 2021 Earnings Conference Call May 13, 2021 11:00 AM ET Company Participants Dave Faupel - Chief Marketing Director Tom Priore - Chairman and Chief Executive Officer Mike Vollkommer - Chief Financial Officer Conference Call Participants Brian Kinstlinger - Alliance Global Andrew Scutt - ROTH Capital Partners George Mihalos - Cowen Operator Good day, and thank you for standing by, and welcome to the Priority Technology Holdings' First Quarter 2021 Earnings Ca ...

Priority Technology Holdings, Inc. Supplemental Slides for the First Quarter 2021 Earnings Call May 13, 2021 Forward-Looking Statements This press release 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, products and services, and other statements identif ...

Commission file number: 001-37872 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 December 31, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to __________ Priority Technology Holdings, Inc. (Exact name of registrant as specified in its charter) | Delaware | | 47-4257046 ...

Financial Performance - Q4 2020 - Revenue increased by 81% to $1061 million from $982 million in 2019[5] - Gross profit increased by 32% to $325 million from $314 million in 2019[5] - Income from operations increased significantly by 4893% to $62 million from $11 million in 2019[5] - Adjusted EBITDA increased by 127% to $182 million from $162 million in 2019[5] Financial Performance - Excluding RentPayment (Q4 2020) - Revenue increased by 123% to $1062 million from $945 million in 2019[8] - Gross profit increased by 155% to $325 million from $282 million in 2019[8] - Adjusted EBITDA increased by 352% to $183 million from $136 million in 2019[8] Revenue Segment Performance - Q4 2020 - Consumer Payments revenue increased by 153% to $1008 million from $874 million[19] - Commercial Payments revenue decreased by 398% to $39 million from $65 million[19] Full Year 2020 - Full Year 2020 Interest expense of $448 million increased by $42 million from $407 million in 2019[57]

Priority Technology Holdings, Inc. (NASDAQ:PRTH) Q4 2020 Earnings Conference Call March 17, 2021 11:00 AM ET Company Participants Dave Faupel – Chief Marketing Officer Tom Priore – Chairman and Chief Executive Officer Mike Vollkommer – Chief Financial Officer Conference Call Participants Brian Kinstlinger – Alliance Global George Mihalos – Cowen Andrew Scutt – ROTH Capital Operator Ladies and gentlemen, thank you for standing by. Welcome to the Priority Technology Holdings’ Fourth Quarter 2020 Earnings Conf ...

Priority Technology Holdings, Inc. (NASDAQ:PRTH) Q3 2020 Earnings Conference Call November 13, 2020 11:00 AM ET Company Participants Chris Kettmann - IR Tom Priore - Chairman and CEO Mike Vollkommer - CFO Conference Call Participants Jacob Silverman - Alliance Global Partners Andrew Scutt - ROTH Capital Operator Ladies and gentlemen, thank you for standing by and welcome to the Priority Technology Holdings' Third Quarter 2020 Earnings Call. [Operator Instructions] I would now like to introduce you to today' ...

Priority Technology Holdings, Inc. Supplemental Slides for the Third Quarter 2020 Earnings Call November 13, 2020 1 Highlights Third Quarter 2020 Compared with Third Quarter 2019 A Strong Quarter with Accelerated Growth • Revenue of $109.0 million increased 16.1% from $93.9 million. • Gross profit of $34.0 million increased 12.7% from $30.2 million. • Income from operations of $7.0 million increased $4.3 million from $2.7 million. • Gain on sale of RentPayment of $62.1 million, net of minority interests • A ...