ATLANTA, Nov. 09, 2020 (GLOBE NEWSWIRE) -- Paya Holdings Inc. (NASDAQ: PAYA), a leading provider of integrated payment and commerce solutions, today reported financial results for its third quarter ended September 30, 2020.
“As Paya begins a new chapter as a publicly-traded company, we are pleased to report solid third quarter financial results that reflect strong execution of our growth strategy. Our results this quarter, as well our year-to-date performance, demonstrate the power and durability of integrated payments, particularly in our attractive end markets,” said Jeff Hack, CEO of Paya. “Even amid the COVID-19 pandemic, Paya returned to year-over-year revenue growth, reported positive net income, continued to achieve year-over-year EBITDA growth, and saw improving volume figures throughout the third quarter. We also executed well against our key growth initiatives, including strong progress implementing significant new partnerships; key wins in the education and healthcare verticals; and our acquisition of The Payment Group, a leading integrated payment provider focused on the local government and municipality sectors, which closed on October 1st. As we continue to expand our business and build long-term shareholder value, Paya is well-positioned to capitalize on the significant opportunities available to us.”
Third Quarter 2020 Financial Highlights
- Payment volume was $8.7 billion, an increase of 7.6% from $8.0 billion for the third quarter of 2019.
- Total revenue was $51.8 million, an increase of 2.4% from $50.6 million for the third quarter of 2019.
- Integrated Solutions segment revenue was $30.4 million, an increase of 2.7% from $29.6 million for the third quarter of 2019.
- Payment Services segment revenue was $21.4 million, an increase of 1.9% from $21.0 million for the third quarter of 2019.
- Gross profit was $25.9 million, resulting in a gross profit margin of 50.0%, as compared to $25.8 million with a gross profit margin of 51.0% for the third quarter of 2019.
- Net income was $1.6 million, compared to a net loss of $(0.6) million for the third quarter of 2019.
- Adjusted EBITDA was $13.5 million, an increase of 10.7% from $12.2 million for the third quarter of 2019.
- Adjusted Net Income was $8.2 million, an increase of 17.1% from $7.0 million for the third quarter of 2019.
- Ended September 30, 2020 with $32.3 million of cash and $229.3 million of gross debt.
Basis of Presentation
The financial information for the three and nine months ended September 30, 2020 and the three and nine months ended September 30, 2019 included in this press release reflects, and is based upon, information of Paya prior to giving effect to the business combination with FinTech Acquisition Corp. III Parent Corp. completed on October 16, 2020 (as further discussed below).
Business Combination
On October 16, 2020, Paya and FinTech Acquisition Corp. III (“FinTech”), a special purpose acquisition company, announced that they completed the previously announced business combination under which all of the equity interest of GTCR Ultra-Holdings II, LLC was contributed to the Company and a subsidiary of the Company merged with and into FinTech, with each outstanding share of FinTech common stock converting into one share of Paya common stock. Upon completion of the business combination, the Company changed its name from FinTech Acquisition Corp. III Parent Corp. to Paya Holdings Inc., and its common stock and warrants began trading on the Nasdaq Stock Market under the ticker symbols “PAYA” and “PAYAW,” respectively, on October 19, 2020.
Subsequent Events
On September 21, 2020, the Company entered into a purchase agreement with TPG Holdco, Inc. (“TPG”) to acquire TPG for an aggregate purchase price of approximately $21.0 million in cash. TPG specializes in providing integrated payments solutions to local municipalities for court, utility, license and permit payments. The Company closed the transaction on October 1, 2020.056 (for Domestic callers), or 1-404-537-3406 (for International callers), with passcode 4674947.
About Paya
Paya is a leading provider of integrated payment and frictionless commerce solutions that help customers accept and make payments, expedite receipt of money, and increase operating efficiencies. The company processes over $30 billion of annual payment volume across credit/debit card, ACH, and check, making it a top 20 provider of payment processing in the US and number 6 overall in e-Commerce. Paya serves more than 100,000 customers through over 2,000 key distribution partners focused on targeted, high growth verticals such as healthcare, education, non-profit, government, utilities, and other B2B goods and services. The business has built its foundation on offering robust integrations into front-end CRM and back-end accounting systems to enhance customer experience and workflow. Paya is headquartered in Atlanta, GA, with offices in Reston, VA, Fort Walton Beach, FL, Dayton, OH, Mt. Vernon, OH and Dallas, TX.
