Company Reaffirms 2025 Outlook
NASHVILLE, Tenn.–(BUSINESS WIRE)–$IIIV–i3 Verticals, Inc. (Nasdaq: IIIV) (“i3 Verticals” or the “Company”) today reported its financial results for the fiscal fourth quarter and year ended September 30, 2024.
Highlights from continuing operations1 for the fiscal fourth quarter and full fiscal year of 2024 vs. 2023
- Fourth quarter revenue from continuing operations was $60.9 million, an increase of 3.9% over the prior year’s fourth quarter; full year revenue from continuing operations was $229.9 million, an increase of 1.4% over the prior year.
- Fourth quarter net income from continuing operations was $7.0 million, compared to a net loss from continuing operations of $1.2 million in the prior year’s fourth quarter. Net loss from continuing operations for the year ended September 30, 2024, was $13.3 million, compared to a net loss from continuing operations of $23.7 million for the year ended September 30, 2023.
- Fourth quarter net income from continuing operations attributable to i3 Verticals, Inc. was $11.2 million, compared to net income from continuing operations attributable to i3 Verticals, Inc. of $1.3 million in the prior year’s quarter; full year net loss from continuing operations attributable to i3 Verticals, Inc. was $5.3 million, compared to a net loss from continuing operations attributable to i3 Verticals, Inc. of $15.5 million for the year ended September 30, 2023.
- Fourth quarter adjusted EBITDA from continuing operations2 was $16.2 million, an increase of 3.5% over the prior year’s fourth quarter. Adjusted EBITDA from continuing operations2 for the year ended September 30, 2024, was $58.3 million, a decrease of 1.8% over the prior year.
- Adjusted EBITDA from continuing operations2 as a percentage of revenue was 26.7% for the three months ended September 30, 2024, compared to 26.8% for the three months ended September 30, 2023, respectively. Adjusted EBITDA from continuing operations2 as a percentage of revenue was 25.4% for the year ended September 30, 2024, compared to 26.2% for the year ended September 30, 2023.
- Fourth quarter diluted net income per share attributable to Class A common stock from continuing operations was $0.23, compared to a diluted net loss per share of $0.02 in the prior year’s fourth quarter; full year diluted net loss per share attributable to Class A common stock from continuing operations was $0.34, compared to a diluted net loss per share of $0.67 in the prior year.
-
For the fourth quarter and year ended September 30, 2024, pro forma adjusted diluted earnings per share from continuing operations2, which gives pro forma effect to the Company’s tax rate, was $0.15 and $0.46, respectively, compared to $0.16 and $0.65 for the fourth quarter and year ended September 30, 2023, respectively.
- Diluted net income per share attributable to Class A common stock from continuing operations and pro forma adjusted diluted earnings per share from continuing operations both exclude discontinued operations but include the consolidated cash interest expense. Cash interest expense for the three months and year ended September 30, 2024, was $6.7 million and $28.1 million, respectively. The Company’s pro forma weighted average shares of adjusted diluted Class A common stock outstanding for the three months and year ended September 30, 2024, was 34,169,684 and 33,879,163, respectively. The fully diluted per share impact, adjusted for pro forma income tax expense at 25%, of cash interest expense for the three months and year ended September 30, 2024, was $0.15 and $0.62, respectively.
- Annualized Recurring Revenue (“ARR”)3 from continuing operations for the fourth quarter of 2024 and 2023 was $188.2 million and $175.1 million, respectively, representing a period-to-period growth rate of 7.5%.
See footnotes on the following page.
| 1. |
As a result of the sale of the Company’s merchant services business, which was completed on September 20, 2024, the historical results of i3 Verticals’ merchant services business have been reflected in discontinued operations in the consolidated statement of operations included in this earnings release, and continuing operations reflect the Company’s remaining operations after giving effect to such classification. Prior period results have been recast to reflect this presentation. |
|
| 2. |
Represents a non-GAAP financial measure. For additional information (including reconciliation information), see the attached schedules to this release. |
|
| 3. |
Annualized Recurring Revenue (“ARR”) is the annualized revenue derived from software-as-a-service (“SaaS”) arrangements, transaction-based software-revenue, software maintenance, recurring software-based services, payments revenue and other recurring revenue sources within the quarter. This excludes contracts that are not recurring or are one-time in nature. The Company focuses on ARR because it helps i3 Verticals to assess the health and trajectory of the business. ARR does not have a standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. It should be reviewed independently of revenue and it is not a forecast. Additionally, ARR does not take into account seasonality. The active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers. |
Greg Daily, Chairman and Chief Executive Officer of i3 Verticals, commented, “We are pleased to report our earnings for the fourth quarter of fiscal 2024. Our results for the year reflect a culmination of what has been a significant transition for our business. We are now a streamlined and scaled vertical market software provider. We have also de-levered and are ready to capitalize on multiple growth opportunities in 2025.
“i3 Verticals has an excellent financial profile and we expect revenue growth and margin expansion to accelerate in the next fiscal year. We remain focused on growing recurring revenue, which improved by 7.5% this quarter. Looking ahead we expect to achieve high-single digits organic revenue growth in fiscal 2025 and increase our margins by more than 100 bps.
“Finally, I want to welcome Chad Fenner, our new Chief Product Officer. Chad has more than two decades of experience driving growth through product development and management. We are excited to have him on our team to help us bring the best possible products to market.”
2025 Outlook
The Company’s practice is to provide annual guidance, excluding the impact of future acquisitions, dispositions and transaction-related costs.
The Company is providing the following outlook for the fiscal year ending September 30, 2025, which remains unchanged from the previous guidance included in the Company’s earnings release issued on August 8, 2024:
|
(in thousands, except share and per share amounts) |
Outlook Range |
||||
|
|
Fiscal year ending September 30, 2025 |
||||
|
Revenue |
$ |
243,000 |
– |
$ |
263,000 |
|
Adjusted EBITDA (non-GAAP) |
$ |
63,000 |
– |
$ |
71,500 |
|
Depreciation and internally developed software amortization |
$ |
12,000 |
– |
$ |
14,000 |
|
Cash interest expense |
$ |
1,000 |
– |
$ |
2,000 |
|
Pro forma adjusted diluted earnings per share(1)(non-GAAP) |
$ |
1.05 |
– |
$ |
1.25 |
| ________________ | ||
| 1. |
Assumes an effective pro forma tax rate of 25.0% (non-GAAP). |
|
With respect to the “2025 Outlook” above, reconciliations of adjusted EBITDA, pro forma adjusted diluted earnings per share and adjusted diluted earnings per share guidance to the most comparable GAAP measures on a forward-looking basis are not available without unreasonable efforts. This inability results from the inherent difficulty in forecasting generally and quantifying certain projected amounts that are necessary for such reconciliations. In particular, sufficient information is not available to calculate certain adjustments required for such reconciliations, including changes in the fair value of contingent consideration, income tax expense of i3 Verticals, Inc. and equity-based compensation expense. The Company expects these adjustments may have a potentially significant impact on future GAAP financial results.
Change in Segments
As noted above, the Company completed the sale of its merchant services business on September 20, 2024. As a result, the historical results of the merchant services business have been reflected in discontinued operations in the Company’s consolidated financial statements, and the Company no longer presents a merchant services segment. After giving effect to these developments, the Company has two reportable segments, Public Sector and Healthcare. See below under “i3 Verticals, Inc. Segment Summary” for financial information for our reportable segments for the periods presented.
Conference Call
The Company will host a conference call on Tuesday, November 19, 2024, at 8:30 a.m. ET, to discuss financial results and operations. To listen to the call live via telephone, participants should dial (844) 887-9399 approximately 10 minutes prior to the start of the call. A telephonic replay will be available from 11:30 a.m. ET on November 19, 2024, through November 26, 2024, by dialing (877) 344-7529 and entering Confirmation Code 4184020.
To listen to the call live via webcast, participants should visit the “Investors” section of the Company’s website, www.i3verticals.com, and go to the “Events” page approximately 10 minutes prior to the start of the call. The online replay will be available on this page of the Company’s website beginning shortly after the conclusion of the call and will remain available for 30 days.
Non-GAAP Measures
This press release contains information prepared in conformity with GAAP as well as non-GAAP information. It is management’s intent to provide non-GAAP financial information to enhance understanding of the Company’s consolidated financial information as prepared in accordance with GAAP. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure and the most directly comparable GAAP financial measure are presented for historical periods so as not to imply that more emphasis should be placed on the non-GAAP measure. The non-GAAP financial information presented may be determined or calculated differently by other companies.
Additional information about non-GAAP financial measures, including, but not limited to, pro forma adjusted net income from continuing operations, adjusted EBITDA from continuing operations and pro forma adjusted diluted EPS from continuing operations, and a reconciliation of those measures to the most directly comparable GAAP measures is included in the financial schedules of this release.
About i3 Verticals
The Company delivers seamless integrated software to customers in strategic vertical markets. Building on its sophisticated and diverse platform of software and services solutions, the Company creates and acquires software products to serve the specific needs of public and private organizations in its strategic verticals, including its Public Sector and Healthcare verticals.
Forward-Looking Statements
This release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this release are forward-looking statements, including any statements regarding the Company’s fiscal 2025 financial outlook and statements of a general economic or industry specific nature. Forward-looking statements give the Company’s current expectations and projections relating to its financial condition, results of operations, guidance, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “could have,” “exceed,” “significantly,” “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.
The forward-looking statements contained in this release are based on assumptions that we have made in light of the Company’s industry experience and its perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. As you review and consider information presented herein, you should understand that these statements are not guarantees of future performance or results. They depend upon future events and are subject to risks, uncertainties (many of which are beyond the Company’s control) and assumptions. Factors that could cause actual results to differ from those expressed or implied by our forward-looking statements include, among other things: ongoing and future economic and geopolitical conditions, including the impact of inflation and elevated interest rates, competition in our industry and our ability to compete effectively, regulatory developments, the successful integration of acquired businesses, our ability to execute on our strategy and achieve our goals following the completion of the sale of our merchant services business, and future decisions made by us and our competitors. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A – Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we have updated in Part II, Item 1A – Risk Factors in Quarterly Reports on Form 10-Q we have filed thereafter, and the risks and uncertainties identified in other filings filed with the Securities and Exchange Commission from time to time.
Any forward-looking statement made by us in this release speaks only as of the date of this release and we undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
|
i3 Verticals, Inc. Consolidated Statements of Operations |
|||||||||||||||||||||
|
($ in thousands, except share and per share amounts) |
|||||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||||
|
|
Three months ended September 30, |
|
Year ended September 30, |
||||||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenue |
$ |
60,864 |
|
|
$ |
58,584 |
|
|
4 |
% |
|
$ |
229,923 |
|
|
$ |
226,722 |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Other costs of services |
|
5,033 |
|
|
|
4,083 |
|
|
23 |
% |
|
|
18,573 |
|
|
|
15,355 |
|
|
21 |
% |
|
Selling, general and administrative |
|
44,842 |
|
|
|
45,221 |
|
|
(1 |
)% |
|
|
176,390 |
|
|
|
177,731 |
|
|
(1 |
)% |
|
Depreciation and amortization |
|
7,580 |
|
|
|
7,149 |
|
|
6 |
% |
|
|
28,796 |
|
|
|
26,438 |
|
|
9 |
% |
|
Change in fair value of contingent consideration |
|
(145 |
) |
|
|
876 |
|
|
n/m |
|
|
|
(690 |
) |
|
|
10,767 |
|
|
n/m |
|
|
Total operating expenses |
|
57,310 |
|
|
|
57,329 |
|
|
— |
% |
|
|
223,069 |
|
|
|
230,291 |
|
|
(3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Income (loss) from operations |
|
3,554 |
|
|
|
1,255 |
|
|
n/m |
|
|
|
6,854 |
|
|
|
(3,569 |
) |
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Other expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest expense, net |
|
6,956 |
|
|
|
6,714 |
|
|
4 |
% |
|
|
29,263 |
|
|
|
25,128 |
|
|
16 |
% |
|
Other income |
|
(1,245 |
) |
|
|
(929 |
) |
|
n/m |
|
|
|
(3,395 |
) |
|
|
(1,224 |
) |
|
n/m |
|
|
Total other expenses |
|
5,711 |
|
|
|
5,785 |
|
|
(1 |
)% |
|
|
25,868 |
|
|
|
23,904 |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loss before income taxes |
|
(2,157 |
) |
|
|
(4,530 |
) |
|
(52 |
)% |
|
|
(19,014 |
) |
|
|
(27,473 |
) |
|
(31 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Benefit from income taxes |
|
(9,175 |
) |
|
|
(3,288 |
) |
|
n/m |
|
|
|
(5,668 |
) |
|
|
(3,788 |
) |
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net income (loss) from continuing operations |
|
7,018 |
|
|
|
(1,242 |
) |
|
|
|
|
(13,346 |
) |
|
|
(23,685 |
) |
|
|
||
|
Income from discontinued operations, net of income taxes |
|
171,526 |
|
|
|
4,691 |
|
|
|
|
|
188,476 |
|
|
|
21,033 |
|
|
|
||
|
Net income (loss) |
|
178,544 |
|
|
|
3,449 |
|
|
n/m |
|
|
|
175,130 |
|
|
|
(2,652 |
) |
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net loss from continuing operations attributable to non-controlling interest |
|
(4,134 |
) |
|
|
(2,506 |
) |
|
|
|
|
(8,078 |
) |
|
|
(8,208 |
) |
|
|||
|
Net income from discontinued operations attributable to non-controlling interest |
|
64,768 |
|
|
|
1,407 |
|
|
|
|
|
69,867 |
|
|
|
6,367 |
|
|
|||
|
Net income (loss) attributable to non-controlling interest |
|
60,634 |
|
|
|
(1,099 |
) |
|
n/m |
|
|
|
61,789 |
|
|
|
(1,841 |
) |
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net income (loss) from continuing operations attributable to i3 Verticals, Inc. |
|
11,152 |
|
|
1,264 |
|
|
|
|
|
(5,268 |
) |
|
|
(15,477 |
) |
|
|
|||
|
Net income from discontinued operations attributable to i3 Verticals, Inc. |
|
106,758 |
|
|
|
3,284 |
|
|
|
|
|
118,609 |
|
|
|
14,666 |
|
|
|
||
|
Net income (loss) attributable to i3 Verticals |
$ |
117,910 |
|
|
$ |
4,548 |
|
|
n/m |
|
|
$ |
113,341 |
|
|
$ |
(811 |
) |
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net income (loss) per share attributable to Class A common stockholders from continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic |
$ |
0.47 |
|
$ |
0.05 |
|
|
|
|
$ |
(0.22 |
) |
|
$ |
(0.67 |
) |
|
|
|||
|
Diluted |
$ |
0.23 |
|
$ |
(0.02 |
) |
|
|
|
$ |
(0.34 |
) |
|
$ |
(0.67 |
) |
|
|
|||
|
Net income per share attributable to Class A common stockholders from discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic |
$ |
4.51 |
|
|
$ |
0.14 |
|
|
|
|
$ |
5.06 |
|
|
$ |
0.63 |
|
|
|
||
|
Diluted |
$ |
4.42 |
|
|
$ |
0.13 |
|
|
|
|
$ |
4.98 |
|
|
$ |
0.57 |
|
|
|
||
|
Weighted average shares of Class A common stock outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic, for continuing operations |
|
23,657,149 |
|
|
|
23,236,620 |
|
|
|
|
|
23,419,421 |
|
|
|
23,137,586 |
|
|
|
||
|
Diluted, for continuing operations |
|
34,169,684 |
|
|
|
34,011,302 |
|
|
|
|
|
33,486,820 |
|
|
|
23,137,586 |
|
|
|
||
|
Basic, for discontinued operations |
|
23,657,149 |
|
|
|
23,236,620 |
|
|
|
|
|
23,419,421 |
|
|
|
23,137,586 |
|
|
|
||
|
Diluted, for discontinued operations |
|
24,137,008 |
|
|
|
34,011,302 |
|
|
|
|
|
23,811,764 |
|
|
|
33,970,731 |
|
|
|
||
|
n/m = not meaningful |
|||||||||||||||||||||
|
i3 Verticals, Inc. Segment Summary from Continuing Operations |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
($ in thousands) |
|||||||||||||||
|
|
For the Three Months Ended September 30, 2024 |
||||||||||||||
|
|
Public Sector |
|
Healthcare |
|
Other |
|
Total |
||||||||
|
Revenue |
$ |
49,603 |
|
|
$ |
11,399 |
|
|
$ |
(138 |
) |
|
$ |
60,864 |
|
|
Other costs of services |
|
4,370 |
|
|
|
799 |
|
|
|
(136 |
) |
|
|
5,033 |
|
|
Recurring cash SG&A expenses(1) |
|
25,034 |
|
|
|
8,441 |
|
|
|
6,123 |
|
|
|
39,598 |
|
|
Adjusted EBITDA(2) |
$ |
20,199 |
|
|
$ |
2,159 |
|
|
$ |
(6,125 |
) |
|
$ |
16,233 |
|
|
Adjusted EBITDA Margin(2) |
|
41 |
% |
|
|
19 |
% |
|
|
n/m |
|
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income (loss) from operations |
$ |
14,268 |
|
|
$ |
1,172 |
|
|
$ |
(11,886 |
) |
|
$ |
3,554 |
|
|
|
For the Year Ended September 30, 2024 |
||||||||||||||
|
|
Public Sector |
|
Healthcare |
|
Other |
|
Total |
||||||||
|
Revenue |
$ |
184,841 |
|
|
$ |
45,566 |
|
|
$ |
(484 |
) |
|
$ |
229,923 |
|
|
Other costs of services |
|
16,125 |
|
|
|
2,932 |
|
|
|
(484 |
) |
|
|
18,573 |
|
|
Recurring cash SG&A expenses(1) |
|
95,500 |
|
|
|
33,622 |
|
|
|
23,920 |
|
|
|
153,042 |
|
|
Adjusted EBITDA(2) |
$ |
73,216 |
|
|
$ |
9,012 |
|
|
$ |
(23,920 |
) |
|
$ |
58,308 |
|
|
Adjusted EBITDA Margin(2) |
|
40 |
% |
|
|
20 |
% |
|
|
n/m |
|
|
25 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income (loss) from operations |
$ |
49,712 |
|
|
$ |
5,821 |
|
|
$ |
(48,679 |
) |
|
$ |
6,854 |
|
|
|
For the Three Months Ended September 30, 2023 |
||||||||||||||
|
|
Public Sector |
|
Healthcare |
|
Other |
|
Total |
||||||||
|
Revenue |
$ |
46,895 |
|
|
$ |
11,714 |
|
|
$ |
(25 |
) |
|
$ |
58,584 |
|
|
Other costs of services |
|
3,388 |
|
|
|
718 |
|
|
|
(23 |
) |
|
|
4,083 |
|
|
Recurring cash SG&A expenses(1) |
|
24,490 |
|
|
|
8,726 |
|
|
|
5,603 |
|
|
|
38,819 |
|
|
Adjusted EBITDA(2) |
$ |
19,017 |
|
|
$ |
2,270 |
|
|
$ |
(5,605 |
) |
|
$ |
15,682 |
|
|
Adjusted EBITDA Margin(2) |
|
41 |
% |
|
|
19 |
% |
|
|
n/m |
|
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income (loss) from operations |
$ |
12,182 |
|
|
$ |
1,491 |
|
|
$ |
(12,418 |
) |
|
$ |
1,255 |
|
|
|
For the Year Ended September 30, 2023 |
||||||||||||||
|
|
Public Sector |
|
Healthcare |
|
Other |
|
Total |
||||||||
|
Revenue |
$ |
182,214 |
|
|
$ |
44,583 |
|
|
$ |
(75 |
) |
|
$ |
226,722 |
|
|
Other costs of services |
|
13,326 |
|
|
|
2,103 |
|
|
|
(74 |
) |
|
|
15,355 |
|
|
Recurring cash SG&A expenses(1) |
|
95,397 |
|
|
|
33,242 |
|
|
|
23,329 |
|
|
|
151,968 |
|
|
Adjusted EBITDA(2) |
$ |
73,491 |
|
|
$ |
9,238 |
|
|
$ |
(23,330 |
) |
|
$ |
59,399 |
|
|
Adjusted EBITDA Margin(2) |
|
40 |
% |
|
|
21 |
% |
|
|
n/m |
|
|
26 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income (loss) from operations |
$ |
41,987 |
|
|
$ |
4,770 |
|
|
$ |
(50,326 |
) |
|
$ |
(3,569 |
) |
| ________________ | ||
| 1. |
Recurring cash SG&A expenses represents the following items; payroll, fringe, third-party labor, capitalized development, commissions, rent, travel & entertainment, office, connectivity, SaaS & hosting, tech services, professional services, advertising, and other operating expenses. |
|
| 2. |
Adjusted EBITDA and Adjusted EBITDA margin as presented at a segment level are measures reported to our management for purposes of making decisions about allocating resources to our business segments and assessing the performance of our business segments, and these measures will be presented in our financial statement footnotes in accordance with ASC 280, beginning with the Company’s annual report on Form 10-K to be filed for the fiscal year ending September 30, 2024. Adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue. Adjusted EBITDA and Adjusted EBITDA margin, as presented on a consolidated basis, are non-GAAP financial measures. For additional information regarding these non-GAAP financial measures, including reconciliations of consolidated Adjusted EBITDA to the most comparable GAAP measure, see below under “Reconciliation of GAAP to Non-GAAP Financial Measures.” |
|
|
i3 Verticals, Inc. Consolidated Balance Sheets |
|||||||
|
($ in thousands, except share and per share amounts) |
|||||||
|
(Unaudited) |
|||||||
|
|
September 30, |
|
September 30, |
||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Assets |
|
|
|
||||
|
Current assets |
|
|
|
||||
|
Cash and cash equivalents |
$ |
86,541 |
|
|
$ |
3,105 |
|
|
Accounts receivable, net |
|
55,988 |
|
|
|
50,785 |
|
|
Settlement assets |
|
632 |
|
|
|
4,873 |
|
|
Prepaid expenses and other current assets |
|
10,232 |
|
|
|
9,512 |
|
|
Current assets held for sale |
|
— |
|
|
|
17,269 |
|
|
Total current assets |
|
153,393 |
|
|
|
85,544 |
|
|
Property and equipment, net |
|
8,677 |
|
|
|
10,059 |
|
|
Restricted cash |
|
2,424 |
|
|
|
4,215 |
|
|
Capitalized software, net |
|
58,592 |
|
|
|
58,057 |
|
|
Goodwill |
|
280,678 |
|
|
|
267,983 |
|
|
Intangible assets, net |
|
162,816 |
|
|
|
163,149 |
|
|
Deferred tax asset |
|
48,445 |
|
|
|
52,514 |
|
|
Operating lease right-of-use assets |
|
8,954 |
|
|
|
11,815 |
|
|
Other assets(1) |
|
6,696 |
|
|
|
11,727 |
|
|
Long-term assets held for sale |
|
— |
|
|
|
219,354 |
|
|
Total assets |
$ |
730,675 |
|
|
$ |
884,417 |
|
|
Liabilities and equity |
|
|
|
||||
|
Liabilities |
|
|
|
||||
|
Current liabilities |
|
|
|
||||
|
Accounts payable |
$ |
5,370 |
|
|
$ |
6,369 |
|
|
Current portion of long-term debt |
|
26,223 |
|
|
|
— |
|
|
Accrued expenses and other current liabilities |
|
89,972 |
|
|
|
33,580 |
|
|
Settlement obligations |
|
632 |
|
|
|
4,873 |
|
|
Deferred revenue |
|
39,029 |
|
|
|
32,785 |
|
|
Current portion of operating lease liabilities |
|
3,505 |
|
|
|
3,657 |
|
|
Current liabilities held for sale |
|
— |
|
|
|
12,197 |
|
|
Total current liabilities |
|
164,731 |
|
|
|
93,461 |
|
|
Long-term debt, less current portion and debt issuance costs, net(1) |
|
— |
|
|
|
388,005 |
|
|
Long-term tax receivable agreement obligations |
|
29,347 |
|
|
|
40,079 |
|
|
Operating lease liabilities, less current portion |
|
6,317 |
|
|
|
8,968 |
|
|
Other long-term liabilities |
|
14,921 |
|
|
|
23,078 |
|
|
Long-term liabilities held for sale |
|
— |
|
|
|
2,530 |
|
|
Total liabilities |
|
215,316 |
|
|
|
556,121 |
|
|
Commitments and contingencies |
|
|
|
||||
|
Stockholders’ equity |
|
|
|
||||
|
Preferred stock, par value $0.0001 per share, 10,000,000 shares authorized; 0 shares issued and outstanding as of September 30, 2024 and 2023 |
|
— |
|
|
|
— |
|
|
Class A common stock, par value $0.0001 per share, 150,000,000 shares authorized; 23,882,035 and 23,253,272 shares issued and outstanding as of September 30, 2024 and 2023, respectively |
|
2 |
|
|
|
2 |
|
|
Class B common stock, par value $0.0001 per share, 40,000,000 shares authorized; 10,032,676 and 10,093,394 shares issued and outstanding as of September 30, 2024 and 2023, respectively |
|
1 |
|
|
|
1 |
|
|
Additional paid-in-capital |
|
279,335 |
|
|
|
249,688 |
|
|
Accumulated earnings (deficit) |
|
100,397 |
|
|
|
(12,944 |
) |
|
Total stockholders’ equity |
|
379,735 |
|
|
|
236,747 |
|
|
Non-controlling interest |
|
135,624 |
|
|
|
91,549 |
|
|
Total equity |
|
515,359 |
|
|
|
328,296 |
|
|
Total liabilities and equity |
$ |
730,675 |
|
$ |
884,417 |
|
|
See footnotes on the following page.
| ________________ | ||
| 1. |
During the fourth quarter of 2024, the Company elected to change its presentation of debt issuance costs associated with the revolver pursuant to the 2023 Senior Secured Credit Facility to an asset rather than a reduction in the related liability as the previously drawn amounts on the 2023 Senior Secured Credit Facility were repaid upon the closing of the sale of the Merchant Services Business. As of September 30, 2023, $2,924 was reclassified from a reduction in “Long-term debt, less current portion and debt issuance costs, net” to “Other assets” to conform to the current period presentation. |
|
Contacts
Clay Whitson
Chief Strategy Officer
(888) 251-0987
investorrelations@i3verticals.com
