Repay (US:RPAY)2022-05-10 20:12Financial Performance - Revenue for the three months ended March 31, 2022, was $67,564,055, representing a 42.2% increase from $47,520,496 in the same period of 2021[12] - Net income for the first quarter of 2022 was $12,886,375, compared to a net loss of $17,981,173 in Q1 2021, marking a significant turnaround[12] - Basic income per Class A share attributable to the Company was $0.15 for Q1 2022, compared to a loss of $0.21 per share in Q1 2021[12] - Net income for the three months ended March 31, 2022, was $12,886,375, a significant improvement from a net loss of $17,981,173 in the same period of 2021[21] - Total revenue for the three months ended March 31, 2022, was $67,564,055, up 42.2% from $47,520,496 in the same period of 2021[37] - Adjusted EBITDA for the three months ended March 31, 2022, was $29.3 million, representing a 43.3% year-over-year increase from $20.5 million in 2021[154] - Adjusted Net Income for the same period was $18.4 million, a 21.6% increase compared to $15.1 million in 2021[154] - Net income attributable to the Company for the three months ended March 31, 2022, was $12.9 million, a significant increase of 186.4% from a loss of $18.0 million in 2021[154] Assets and Liabilities - Total current assets increased to $112,417,299 as of March 31, 2022, up from $95,711,434 at the end of 2021, reflecting a growth of 17.5%[9] - Total liabilities decreased to $740,557,580 as of March 31, 2022, down from $772,803,275 at the end of 2021, indicating a reduction of 4.2%[9] - Total stockholders' equity increased to $927,317,568 as of March 31, 2022, compared to $913,035,791 at the end of 2021, showing a growth of 1.6%[9] - The company’s total assets decreased slightly to $1,667,875,148 as of March 31, 2022, from $1,685,839,066 at the end of 2021, a decline of 1.1%[9] Cash Flow and Investments - Cash flows from operating activities increased to $13,754,373 for the three months ended March 31, 2022, compared to $4,769,416 in the same period of 2021[21] - Net cash provided by operating activities was $13.8 million for the three months ended March 31, 2022, compared to $4.8 million for the same period in 2021, reflecting a significant increase of 188%[161] - Net cash used in investing activities was $7,566,338 for the three months ended March 31, 2022, compared to $5,205,892 in the same period of 2021[21] - Net cash used in investing activities was $7.6 million for the three months ended March 31, 2022, up from $5.2 million in 2021, primarily due to software development capitalization[162] Operating Expenses - Operating expenses for Q1 2022 were $74,471,994, up from $56,309,955 in Q1 2021, representing a 32.2% increase[12] - Total operating expenses for the same period were $74.5 million, compared to $56.3 million in 2021, reflecting increased costs associated with growth initiatives[145] - Selling, general and administrative expenses rose to $32.2 million for the three months ended March 31, 2022, an increase of $8.8 million or 37.7% compared to $23.4 million for the same period in 2021[128] - Costs of services increased to $16.6 million for the three months ended March 31, 2022, up $4.1 million or 32.8% from $12.5 million in the same period in 2021[127] Acquisitions - The company acquired BT Intermediate, LLC for approximately $505.8 million, consisting of $277.5 million in cash and approximately 10 million shares of Class A common stock[41] - The total purchase price for BillingTree was $505.8 million, including $277.5 million in cash and $228.3 million in Class A common stock issued[42] - Goodwill recognized from the BillingTree acquisition amounted to $293.8 million, with $47.7 million expected to be tax-deductible[43] - The total purchase price for Kontrol was $7.9 million, consisting of $7.4 million in cash and $0.5 million in contingent consideration[45] - Goodwill from the Kontrol acquisition was $1.6 million, with $1.1 million expected to be tax-deductible[46] - The total purchase price for Payix was approximately $98.5 million, including $95.6 million in cash and $2.9 million in contingent consideration[49] - Goodwill recognized from the Payix acquisition was $71.2 million, with none expected to be tax-deductible[51] - Incremental revenues of approximately $17.2 million for the three months ended March 31, 2022, were attributable to the acquisitions of BillingTree, Kontrol, and Payix[126] Tax and Interest - The Company’s effective tax rate was 23.0% for the three months ended March 31, 2022, with an income tax expense of $3.8 million[103] - The Tax Receivable Agreement (TRA) balance decreased from $245,828,419 at the beginning of the period to $221,209,034 at the end of the period, with a valuation adjustment of $(25,580,251) for the three months ended March 31, 2022[67] - The Company had total borrowings of $460,000,000 as of March 31, 2022, which included $20,000,000 drawn against the revolving credit facility[83] - The interest expense on the revolving credit facility totaled $0.1 million for the three months ended March 31, 2022, compared to $0 for the same period in 2021[81] - The Company incurred an interest expense of $1.0 million for the three months ended March 31, 2022, a decrease of $0.2 million or 16.4% from $1.2 million in the same period in 2021[131] Shareholder Information - The weighted average shares of Class A common stock outstanding increased to 88,607,655 for the three months ended March 31, 2022, from 76,602,759 in the same period of 2021[39] - The weighted average number of shares of Class A common stock outstanding on an as-converted basis was 96,534,231 for the three months ended March 31, 2022[146] - Adjusted Net Income per share for the three months ended March 31, 2022, was $0.19, compared to $0.18 in 2021[146] Compliance and Risk Management - The Company is in compliance with its restrictive covenants under the Amended Credit Agreement as of March 31, 2022[80] - The Company expects to remain in compliance with restrictive financial covenants under the 2026 Notes and the Amended Credit Agreement[172] - Interest rate risk is present due to floating interest rates on debt, with a potential increase in interest rates possibly reducing net income[178] - The company has not experienced significant impacts from inflation on its revenues and cost of services, but future effects remain uncertain[177] Miscellaneous - The Company incurred transaction expenses of $2.8 million for the three months ended March 31, 2022, related to the acquisitions of BillingTree, Kontrol, and Payix[53] - The Company incurred transaction costs of $3.2 million for related parties for the three months ended March 31, 2022[95] - The document does not detail any new product developments, technologies, market expansions, or mergers and acquisitions[195] - The report includes certifications from the Principal Executive Officer and Principal Financial Officer, indicating compliance with the Sarbanes-Oxley Act[197] - Overall, the documents reviewed do not contain actionable insights or detailed financial analysis[196]