REPAY and Visa hosted a webinar on The Borrower's Digital Lending Journey for the American Financial Services Association (AFSA) on February 20, 2020. Susan Perlmutter, Chief Revenue Officer for REPAY, and Scott MacWilliams, Vice President, Merchant Sales with Visa, discussed the borrower's journey and the tools and services lenders can implement to transform the lending experience from beginning to end.

AFSA Members can view the recording here.

At this point, millennial borrowers probably make up a large portion of your customer base, so it's important to understand their spending habits and priorities. The American Institute for Certified Public Accountants (AICPA) conducted a study of millennials and found 70% believed that financial stability was the ability to pay all their bills each month. So, according to millennials, stability means striving for zero payments due at the end of the month. If you lend to millennials for student or consumer loans, think about this definition of financial stability and the simple aspiration of just paying the bills each month. According to Investopedia’s analysis of the AICPA study, one in four millennials had late payments or interaction with a debt collector. As a group, these borrowers are often loaded down with debt and still receiving financial support from their parents. And thanks to social media and the immediate gratification lifestyle, millennials may often be more concerned about chasing the latest technology gadgets and the same experiences and things their friends have. With all these competing priorities, consumer lenders can be the last to get paid. What’s a lender to do?

How Millennials Bank

It should come as no surprise that this group of borrowers uses mobile banking more than any other. The Balance uncovered some interesting banking trends and found the three things millennials do most often on their mobile banking apps are:

1. Schedule person to person money transfers
2. Transfer funds between accounts
3. Check their transaction history

Here’s what they are not doing: checking their accounts to see if they have the funds available to pay you after they’ve paid for rent, internet, utilities, and fun. While they may like their banks, they love technology more. They will jump at the chance to switch to another bank, fintech lender, or credit union if their bank is too inconvenient or if their mobile banking app is too slow or archaic.  Bottom line: millennials love mobile functionality and convenience. Are you leveraging this and making it easy for them to pay you?

Offer Payment Options

Millennial borrowers are starting to earn good money, so many are able to repay you at some point during the month. Yet, if you aren’t convenient or easily accessible, they will likely forget about you until after they’ve paid everyone else. Many lenders think ACH is the answer, and automatic drafts out of their borrowers’ bank accounts are the best solutions for guaranteeing payments. It’s possible, however, that given their spending habits, your millennial borrowers won’t have enough cash in their accounts to clear the payments. Why not offer payment options that fit into their daily lives and are easily accessible whenever your borrowers are ready to pay?  Mobile apps and text pay are great options that put you exactly where your customers are – on their mobile phones. You can send payment reminders, balance updates, and marketing campaigns via push notifications or text messages.  Your borrowers, in turn, can initiate and authorize payments and chat directly with your customer service representatives. Interactive Voice Response (IVR) enables borrowers to make payments 24/7 over the phone without ever speaking with a live agent. Millennials value little above convenience and tech-savvy options. You can use this to your advantage to ensure you get paid and keep default rates low. Make it easy for them, and you will get paid. If your payments system doesn’t offer options like IVR or text pay, contact REPAY to request a demo. You’ll see for yourself that these additional payment options will help you collect more easily from this fast-growing group of millennial borrowers.

REPAY is proud to announce it has been named a finalist in CreditUnions.com's 2020 Innovation Series, powered by Callahan & Associates. During the Innovation Series webinar on Tuesday, February 18, 2020, Fleurette Runyan from REPAY discussed how REPAY helps credit unions reinvent and elevate the member experience through payment technology.

Meet The Payments Finalists For The 2020 Innovation Series | Credit Unions

Upsizes Existing Credit Facility to $345 million

ATLANTA--(BUSINESS WIRE)--Feb. 10, 2020-- Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY”), a leading provider of vertically-integrated payment solutions, today announced the acquisition of Ventanex for up to $50 million, of which $36 million was paid at closing. The remaining $14 million may become payable upon the achievement of performance growth targets. The closing of the acquisition was financed with a combination of cash on hand and new borrowings under REPAY’s existing credit facility. As part of the financing for the transaction, REPAY has entered into an agreement with Truist Bank (formerly SunTrust Bank) and other members of its existing bank group to amend and upsize its existing credit facility by $115 million to provide additional capacity for growth.

Ventanex, founded in 2012 and headquartered in Dallas, TX, is an integrated payments solutions provider to the consumer finance and B2B healthcare verticals. Ventanex’s technology platform offers inbound and outbound omnichannel payment solutions and complex rules-based processing. Ventanex enables its clients to send and receive funds across numerous payment types, including but not limited to, ACH, debit card, credit card, virtual card, and check. The Ventanex solution is deeply integrated into its clients’ workflow via connectivity with their primary enterprise software solutions.

“The acquisition of Ventanex advances REPAY’s overarching strategy of being the preferred payments provider to high-growth verticals where our technology and payment capabilities serve as differentiators. The consumer finance and B2B healthcare markets will provide significant growth opportunities, as these verticals are in the early stages of a secular shift from legacy payment mediums to the more innovative and varied payment solutions in which we specialize. Additionally, Ventanex’s consumer finance and B2B focus aligns well with our existing client base, allowing us to provide both customer sets with more robust offerings,” said John Morris, CEO of REPAY. “We are eager to welcome the Ventanex team into the REPAY family and look forward to working together to grow our consumer finance and B2B healthcare businesses.”

“We are thrilled to partner with REPAY to accelerate our growth in the consumer finance and B2B healthcare verticals, as both markets are large and present numerous value creation opportunities. We expect the combination of our product suite and REPAY’s distribution capabilities to drive meaningful growth in our core markets,” said Chris Sanders, CEO of Ventanex.

Transaction Details

• REPAY acquired Ventanex for $50 million
  • $36 million was paid at closing
  • Up to $14 million may become payable through two separate earnouts, which are dependent upon Ventanex’s performance for the 12-month periods ending December 31, 2020 and 2021
• The acquisition was financed with a combination of cash on hand and new borrowings under REPAY’s existing credit facility
• As part of the financing for the transaction, REPAY has entered into an agreement with Truist Bank and other members of its existing bank group to amend and upsize its current $230 million credit facility to $345 million
  • Approximately $255 million was outstanding under the credit facility at the closing of the Ventanex transaction
• Combined net leverage is expected to approximate 3.7x on a post-transaction basis
• In 2019, Ventanex is expected to generate approximate revenue, gross profit, and adjusted EBITDA of $12.00 million, $6.50 million, and $4.25 million, respectively

Strategic Rationale

• New, Attractive, High-growth Markets
  • The consumer finance and B2B healthcare markets have large addressable markets and provide numerous technology-centered value creation opportunities
  • Ventanex’s mortgage loan servicer focus materially expands REPAY’s addressable market by approximately $500 billion. Ventanex’s solution is integrated with the largest mortgage loan servicing platforms, including Black Knight and Fiserv
  • Ventanex’s foothold in the B2B healthcare vertical will allow REPAY to pursue the high-growth, $170 billion market for outbound healthcare payments
• Cross Sell Opportunities
  • Similar client bases largely comprised of companies that service loans
  • Ventanex’s products are highly complementary to those of REPAY; therefore, bi-directional cross sell opportunities exist
• Growth Acceleration
  • REPAY believes that its distribution, technology, and processing capabilities will accelerate new client wins
  • Additionally, REPAY expects continued professionalization and infrastructure investments to enable Ventanex to scale and move up-market on the customer dimension

Forward-Looking Statements

This communication 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 identified by words such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “believe,” “intend,” “plan,” “projection,” “outlook” or words of similar meaning. These forward-looking statements include, but are not limited to, statements regarding REPAY’s industry and market sizes, future opportunities for REPAY, as well as the Ventanex estimated full year performance metrics. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.

In addition to factors previously disclosed in prior reports filed with the U.S. Securities and Exchange Commission and those identified elsewhere in this communication, the following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: a delay or failure to integrate and realize the benefits of the Ventanex acquisition and any difficulties associated with marketing products and services in the mortgage or B2B healthcare vertical markets in which REPAY does not have any experience; changes in the payment processing market in which REPAY competes, including with respect to its competitive landscape, technology evolution or regulatory changes; changes in the vertical markets that REPAY targets; risks relating to REPAY’s relationships within the payment ecosystem; the risk that REPAY may not be able to execute its growth strategies, including identifying and executing acquisitions; risks relating to data security; changes in accounting policies applicable to REPAY; and the risk that REPAY may not be able to develop and maintain effective internal controls.

Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond our control. All information set forth herein speaks only as of the date hereof in the case of information about REPAY or the date of such information in the case of information from persons other than REPAY, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication. Forecasts and estimates regarding REPAY’s industry and end markets are based on sources we believe to be reliable, however there can be no assurance these forecasts and estimates will prove accurate in whole or in part. Annualized, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

About REPAY

REPAY provides integrated payment processing solutions to verticals that have specific transaction processing and technology needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity and enhances the experience of electronic payments.

View source version on businesswire.com: 
https://www.businesswire.com/news/home/20200210005759/en/

Source: Repay Holdings Corporation

Contacts

Investor Relations Contact for REPAY:
repayIR@icrinc.com

Media Relations Contact for REPAY:
Kristen Hoyman
(404) 637-1665
khoyman@repay.com

Nortridge Software LLC, a leading software provider for lenders and loan servicing companies nationwide, today announced that its Nortridge Loan System (NLS) is now integrated with REPAY, a provider of vertically-integrated payment solutions, giving lenders another payment gateway option.

“We’re always working to provide more flexibility and robustness for our customers,” said Greg Hindson, president and CEO, Nortridge Software. “REPAY joins other payment gateways so NLS users can choose the best option based on their preferences and pricing, or new NLS users that already use REPAY can have a seamless transition.”

REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for merchants, while enhancing the overall experience for consumers.

“We are thrilled to partner with Nortridge Software to offer our shared clients powerful integrated payment and funding technology that enables them to securely accept payments and fund loans 24/7,” said Susan Perlmutter, Chief Revenue Officer, REPAY. “The integration between the two systems should make the payment collection and reconciliation processes easy and seamless, ultimately creating a better experience for our customers and their borrowers.”

Payment gateways in NLS now include REPAY, Merchant Partners, Payix, and ACI Universal Payments.

About Nortridge Software
Nortridge Software LLC provides lenders and loan servicers with the automation needed to more profitably originate, service, collect and report on loan portfolios. Since 1981, Nortridge has leveraged its experience in banking, lending, and software development to provide clients with quality software solutions and excellent support services. Today, the Nortridge Loan System is valued by loan servicing companies representing a wide range of industries and loan portfolio sizes. The company is headquartered in Foothill Ranch, Calif. For more information, visit: http://www.nortridge.com.

About REPAY
Repay Holdings Corporation (NASDAQ: RPAY) provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for merchants, while enhancing the overall experience for consumers. For more information, visit https://repay.com.

View source version on PRWeb: https://www.prweb.com/releases/nortridge_software_announces_integration_with_repay/prweb16833499.htm

ATLANTA--(BUSINESS WIRE)--Jan. 3, 2020-- Repay Holdings Corporation (NASDAQ: RPAY) a leading provider of vertically-integrated payment solutions, today announced that the Company will present at the 22^nd Annual Needham Growth Conference on Tuesday, January 14, 2020 in New York, NY. The presentation will begin at 4:10pm ET.

The presentation will be webcast live from the Company's investor relations website at https://investors.repay.com/ under the “Events” section. An archive of the webcast will be available at the same location on the website for 90 days.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200103005376/en/

Source: Repay Holdings Corporation

Investor Relations Contact for REPAY:
repayIR@icrinc.com

Media Relations Contact for REPAY:
Kristen Hoyman
(404) 637-1665
khoyman@repay.com

ATLANTA--(BUSINESS WIRE)--Nov. 14, 2019-- Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY” or the “Company”), a leading provider of vertically-integrated payment solutions, today reported financial results for its third quarter and nine months ended September 30, 2019.

“We are proud of our third quarter results, which included positive contributions from our TriSource acquisition, resulting in year-over-year growth in card payment volume and gross profit of 40% and 39%, respectively,” said John Morris, CEO of REPAY. “We are also thrilled to have recently entered the B2B payments space with the previously-announced acquisition of APS Payments.”

Three Months Ended September 30, 2019 Highlights

• Card payment volume was $2.6 billion, an increase of 40% over the third quarter of 2018
• Total revenue on a combined basis¹ was $41.1 million, an increase of 27% over the third quarter of 2018
• Gross profit was $19.4 million, an increase of 39% over the third quarter of 2018
• Pro forma net loss¹ was ($41.4) million, as compared to net income of $3.7 million in the third quarter 2018
• Adjusted EBITDA was $11.9 million, an increase of 29% over the third quarter of 2018
• Adjusted Net Income was $10.4 million, an increase of 49% over the third quarter of 2018
• Adjusted Net Income per share was $0.18

Nine Months Ended September 30, 2019 Highlights

• Card payment volume was $7.3 billion, an increase of 33% over the first three quarters of 2018
• Total revenue on a combined basis was $116.5 million, an increase of 21% over the first three quarters of 2018
• Gross profit was $54.4 million, an increase of 34% over the first three quarters of 2018
• Pro forma net loss was ($32.4) million, as compared to net income of $8.4 million over the first three quarters of 2018
• Adjusted EBITDA was $33.7 million, an increase of 24% over the first three quarters of 2018
• Adjusted Net Income was $27.1 million, an increase of 31% over the first three quarters of 2018
• Adjusted Net Income per share was $0.47

Gross profit represents total revenue less interchange and network fees and other costs of services. Adjusted EBITDA is a non-GAAP financial measure that represents net income (loss) adjusted for interest expense, tax expense, depreciation and amortization and certain other non-cash charges and non-recurring items. Adjusted Net Income is a non-GAAP financial measure that represents net income (loss) adjusted for amortization of acquisition-related intangibles and certain other non-cash charges and non-recurring items. Adjusted Net Income per share is a non-GAAP financial measure that represents Adjusted Net Income divided by the number of shares of Class A common stock outstanding (on as-converted basis) on September 30, 2019 (excluding certain shares that were subject to forfeiture on September 30, 2019). See “Non-GAAP Financial Measures” and the reconciliations of Adjusted EBITDA and Adjusted Net Income to their most comparable GAAP measure provided below for additional information.

^{____________________________}

¹ Please refer to “Basis of Presentation” below for an explanation of the presentation of this information.

Business Combination

The Company was formed upon closing of the merger (the “Business Combination”) of Hawk Parent Holdings LLC (together with REPAY Holdings, LLC and its other subsidiaries, “Hawk Parent”) with a subsidiary of Thunder Bridge Acquisition, Ltd, (“Thunder Bridge”), a special purpose acquisition company, on July 11, 2019 (the “Closing Date”). On the Closing Date, Thunder Bridge changed its name to Repay Holdings Corporation.

Basis of Presentation

As a result of the Business Combination, the Company was identified as the acquirer for accounting purposes, and Hawk Parent, which owned the business conducted prior to the closing of the Business Combination, is the acquiree and accounting “Predecessor.” The Company is the “Successor” for periods after the Closing Date, which includes consolidation of the Hawk Parent business subsequent to the Closing Date. The Company’s financial statement presentation reflects the Hawk Parent business as the “Predecessor” for periods through the Closing Date. Where we discuss results for any period ended September 30, 2019, we are referring to the combined results of the Predecessor for the periods from either January 1, 2019 or July 1, 2019 through July 10, 2019 and the Successor for the period from the Closing Date through September 30, 2019. The combined basis of presentation reflects a simple arithmetic combination of the Predecessor and Successor periods. The acquisition was accounted for as a business combination using the acquisition method of accounting, and the Successor financial statements reflect a new basis of accounting that is based on the fair value of net assets acquired. As a result of the application of the acquisition method of accounting as of the effective time of the Business Combination, the financial statements for the Predecessor period and for the Successor period are presented on different bases. When information is noted as being “pro forma” in this press release, it means that the financial statements were adjusted to remove the effects of purchase accounting adjustments related to the Business Combination. The historical financial information of Thunder Bridge prior to the Business Combination has not been reflected in the Predecessor period financial statements.

Subsequent Events

On October 1, 2019, as required under the terms of the Business Combination, REPAY issued 3,750,000 additional Class A units in Hawk Parent as a result of the volume-weighted average trading price of REPAY’s Class A common stock exceeding $12.50 for twenty out of thirty consecutive trading days during the first twelve months following the closing of the Business Combination. Beginning on the six-month anniversary of the Business Combination, these Class A units in Hawk Parent may be exchanged for REPAY’s Class A common stock on a one-for-one basis. Also, as a result of the achievement of similar share price triggers, 1,482,500 shares of REPAY’s Class A common stock held by Thunder Bridge Acquisition, LLC were released from escrow on October 2, 2019 and are no longer subject to forfeiture.

On October 1, 2019, in connection with the post-closing adjustment mechanism for the Business Combination, 39,674 Class A units in Hawk Parent, the parent of the Predecessor, were cancelled and 20,326 Class A units in Hawk Parent were released from escrow and are no longer subject to forfeiture.

On October 1, 2019, the Company entered into a swap transaction with Regions Bank. On a quarterly basis, commencing on December 31, 2019 up to and including the termination date of July 11, 2024, the Company will make fixed payments on a beginning notional amount of $140,000,000. On a quarterly basis, commencing on December 31, 2019 up to and including the termination date of July 11, 2024, the counterparty will make floating rate payments based on the 3 month LIBOR on the beginning notional amount of $140,000,000.

On October 14, 2019, REPAY announced the acquisition of APS Payments for up to $60 million, which includes a $30 million performance-based earnout. The closing of the acquisition was financed with a combination of cash on hand and proceeds from borrowings under REPAY’s existing credit facility.

2019 Outlook

The addition of APS Payments is expected to contribute the following to the remainder of 2019:

• $500 million in card payment volume
• $3.5 million in total revenue
• $2.8 million in gross profit
• $1.5 million in Adjusted EBITDA

REPAY now expects the below financial results for full year 2019, which reflects expected contributions from APS Payments. The difference between the Previous Guidance and the Updated Guidance is solely related to the contributions from APS.

		Full Year 2019 Outlook
		Previous Guidance		Updated Guidance
Card Payment Volume		$9.6 - 9.75 billion		$10.1 – 10.25 billion
Total Revenue		$157.0 - 162.0 million		$160.5 – 165.5 million
Gross Profit		$74.0 - 76.0 million		$76.8 – 78.8 million
Adjusted EBITDA		$45.3 - 46.8 million		$46.8 – 48.3 million

Revenue information for the full year 2019 outlook is presented in accordance with Accounting Standards Codification (“ASC”) 605. REPAY expects to adopt a new standard, ASC 606, when financial results for the full year ended December 31, 2019 are reported, and is continuing to evaluate the impact of that standard. In addition, REPAY does not provide quantitative reconciliation of forward-looking, non-GAAP financial measures such as forecasted 2019 Adjusted EBITDA to the most directly comparable GAAP financial measure because it is difficult to reliably predict or estimate the relevant components without unreasonable effort due to future uncertainties that may potentially have significant impact on such calculations, and providing them may imply a degree of precision that would be confusing or potentially misleading.

Conference Call

REPAY will host a conference call to discuss third quarter 2019 financial results today at 5:00 pm ET. Hosting the call will be John Morris, CEO, and Tim Murphy, CFO. The conference call can be accessed live over the phone by dialing (877) 407-3982, or for international callers (201) 493-6780. A replay will be available one hour after the call and can be accessed by dialing 844-512-2921 or (412) 317-6671 for international callers; the conference ID is 13695820. The call will be webcast live from REPAY’s investor relations website and the replay will be available at https://investors.repay.com/investor-relations.

Non-GAAP Financial Measures

This communication includes certain non-GAAP financial measures that REPAY’s management uses to evaluate its operating business, measure its performance and make strategic decisions. Adjusted EBITDA is a non-GAAP financial measure that represents net income prior to interest expense, tax expense, depreciation and amortization, as adjusted to add back certain non-cash and non-recurring charges, such as loss on extinguishment of debt, non-cash change in fair value of contingent consideration, share-based compensation charges, transaction expenses, management fees, legacy commission related charges, employee recruiting costs, loss on disposition of property and equipment, other taxes, strategic initiative related costs and other non-recurring charges. Adjusted Net Income is a non-GAAP financial measure that represents net income prior to amortization of acquisition-related intangibles, as adjusted to add back certain non-cash and non-recurring charges, such as loss on extinguishment of debt, non-cash change in fair value of contingent consideration, transaction expenses, share-based compensation expense, management fees, legacy commission related charges, employee recruiting costs, loss on disposition of property and equipment, strategic initiative related costs and other non-recurring charges. Adjusted Net Income is adjusted to exclude amortization of all acquisition-related intangibles as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. Management believes that the adjustment of acquisition-related intangible amortization supplements GAAP financial measures because it allows for greater comparability of operating performance. Although we exclude amortization from acquisition-related intangibles from our non-GAAP expenses, management believes that it is important for investors to understand that such intangibles were recorded as part of purchase accounting and contribute to revenue generation. Adjusted Net Income per share is a non-GAAP financial measure that represents Adjusted Net Income divided by the number of shares of Class A common stock outstanding (on as-converted basis) on September 30, 2019 (excluding certain shares that were subject to forfeiture on September 30, 2019). REPAY believes that Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per share provide useful information to investors and others in understanding and evaluating its operating results in the same manner as management. However, Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per share are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for net income, operating profit, or any other operating performance measure calculated in accordance with GAAP. Using these non-GAAP financial measures to analyze REPAY’s business has material limitations because the calculations are based on the subjective determination of management regarding the nature and classification of events and circumstances that investors may find significant. In addition, although other companies in REPAY’s industry may report measures titled Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per share or similar measures, such non-GAAP financial measures may be calculated differently from how REPAY calculates its non-GAAP financial measures, which reduces their overall usefulness as comparative measures. Because of these limitations, you should consider Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per share alongside other financial performance measures, including net income and REPAY’s other financial results presented in accordance with GAAP. You should be aware of additional limitations with respect to Adjusted Net Income per share because the GAAP presentation of net loss per share is only reflected for the Successor period.

Forward-Looking Statements

This communication 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, REPAY’s plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as “guidance,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “believe,” “intend,” “plan,” “projection,” “outlook” or words of similar meaning. These forward-looking statements include, but are not limited to, REPAY’s estimated future results, APS’s contributions, and the updated full year 2019 outlook. Such forward-looking statements are based upon the current beliefs and expectations of REPAY’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.

In addition to factors previously disclosed in prior reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: a delay or failure to realize the expected benefits from the Thunder Bridge business combination; a delay or failure to integrate and realize the benefits of the TriSource acquisition and any difficulties associated with operating in the back-end processing markets in which REPAY does not have any experience; a delay or failure to integrate and realize the benefits of the APS Payments acquisition and any difficulties associated with marketing products and services in the B2B vertical market in which REPAY does not have any experience; changes in the payment processing market in which REPAY competes, including with respect to its competitive landscape, technology evolution or regulatory changes; changes in the vertical markets that REPAY targets; risks relating to REPAY’s relationships within the payment ecosystem; risk that REPAY may not be able to execute its growth strategies, including identifying and executing acquisitions; risks relating to data security; changes in accounting policies applicable to REPAY; and the risk that REPAY may not be able to develop and maintain effective internal controls.

Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond REPAY’s control. All information set forth herein speaks only as of the date hereof in the case of information about REPAY or the date of such information in the case of information from persons other than REPAY, and REPAY disclaims any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication. Forecasts and estimates regarding REPAY’s industry and end markets are based on sources it believes to be reliable, however there can be no assurance these forecasts and estimates will prove accurate in whole or in part. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

About REPAY

REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for merchants, while enhancing the overall experience for consumers.

Key Operating and Non-GAAP Financial Data

We believe that adjusting the key operating and non-GAAP measures for comparability between the Predecessor, Successor and Pro Forma periods is useful to the user of our financial statements.

The unaudited non-GAAP pro forma results of operations data for the three and nine month periods ended September 30, 2019 included in the discussion below are based on our historical financial statements, adjusted to remove the effects of purchase accounting adjustments related to the Business Combination. The pro forma results included herein have not been prepared in accordance with Article 11 of Regulation S-X.

Unless otherwise stated, all results compare pro forma third quarter and nine-month 2019 results to third quarter and nine-month 2018 results from continuing operations for the period ended September 30, respectively.

The following tables and related notes reconcile these Non-GAAP measures and the Pro Forma Measures to GAAP information for the three and nine month periods ended September 30, 2019 and 2018:

(1) Gross profit represents total revenue less interchange and network fees and other costs of services.

(2) Adjusted EBITDA is a non-GAAP financial measure that represents net income adjusted for interest expense, depreciation and amortization and certain other non-cash charges and non-recurring items. See “Non-GAAP Financial Measures” above and the reconciliation of Adjusted EBITDA to its most comparable GAAP measure below.

(a) See footnote (m) for details on our amortization and depreciation expenses.

(b) Reflects write-offs of debt issuance costs relating to Hawk Parent’s term loans and prepayment penalties relating to its previous debt facilities.

(c) Reflects the changes in management’s estimates of future cash consideration to be paid in connection with prior acquisitions from the amount estimated as of the most recent balance sheet date.

(d) Reflects the changes in management’s estimates of the fair value of the liability relating to the Tax Receivable Agreement

(e) Represents compensation expense associated with Hawk Parent’s equity compensation plans, totaling $908,977 in the Predecessor period from January 1, 2019 to July 10, 2019 inclusive of charges from accelerated vesting due to a change of control triggered by the Business Combination, and $9,750,821 as a result of new grants made in the Successor period.

(f) Primarily consists of (i) during the three and nine months ended September 30, 2019, professional service fees and other costs in connection with the Business Combination, the acquisition of TriSource Solutions, and the subsequently announced acquisition of APS Payments, and (ii) during the three and nine months ended September 30, 2018, additional transaction related expenses in connection with the acquisitions of PaidSuite, Inc. and PaidMD, LLC (together, “PaidSuite”) and Paymaxx Pro, LLC (“Paymaxx”), which transactions closed in 2017.

(g) Reflects management fees paid to Corsair Investments, L.P. pursuant to the management agreement, which terminated upon the completion of the Business Combination.

(h) Represents payments made to certain employees in connection with significant restructuring of their commission structures. These payments represented commission structure changes which are not in the ordinary course of business.

(i) Represents payments made to third-party recruiters in connection with a significant expansion of our personnel, which REPAY expects will become more moderate in subsequent periods.

(j) Reflects franchise taxes and other non-income based taxes.

(k) Consulting fees relating to REPAY’s processing services and other operational improvements that were not in the ordinary course, in the aggregate amount of $124,000, and $55,000 as well as one-time fees relating to special projects for new market expansion that are not anticipated to continue in the ordinary course of business are reflected in the nine months ended September 30, 2019 and 2018, respectively. Additionally, one-time expenses related to the creation of a new entity in connection with equity arrangements for the members of Hawk Parent in connection with the Business Combination are reflected in the nine months ended September 30, 2019.

(l) For the nine months ended September 30, 2018 reflects reversal of adjustments over the prior and current periods made for legal expenses incurred related to a dispute with a former customer, for which we were reimbursed in the current period as a result of its settlement. For the three months ended September 30, 2018 and the nine months ended September 30, 2019, reflects expenses incurred related to other one-time legal and compliance matters. Additionally, for the three months ended September 30, 2019 reflects a one-time credit issued to a customer which was not in the ordinary course of business.

(m) For the three and nine months ended September 30, 2018, reflects amortization of customer relationships intangibles acquired through Hawk Parent’s acquisitions of PaidSuite and Paymaxx during the year ended December 31, 2017 and the recapitalization transaction in 2016, through which Hawk Parent was formed in connection with the acquisition of a majority interest in REPAY Holdings, LLC by certain investment funds sponsored by, or affiliated with, Corsair Capital LLC. For the three and nine months ended September 30, 2019 reflects amortization of the customer relationships intangibles described previously, as well as customer relationships, non-compete agreement, software, and channel relationship intangibles acquired through the Business Combination, and customer relationships, non compete agreement, and software intangibles acquired through REPAY Holdings, LLC’s acquisition of TriSource Solutions, LLC. This adjustment excludes the amortization of other intangible assets which were acquired in the regular course of business, such as capitalized internally developed software and purchased software. See additional information below for an analysis of our amortization expenses:

1. Adjusted Net Income is adjusted to exclude amortization of all acquisition-related intangibles as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions (see corresponding adjustments in the reconciliation of net income to Adjusted Net Income presented above). Management believes that the adjustment of acquisition-related intangible amortization supplements GAAP financial measures because it allows for greater comparability of operating performance. Although REPAY excludes amortization from acquisition-related intangibles from our non-GAAP expenses, management believes that it is important for investors to understand that such intangibles were recorded as part of purchase accounting and contribute to revenue generation. Amortization of intangibles that relate to past acquisitions will recur in future periods until such intangibles have been fully amortized. Any future acquisitions may result in the amortization of additional intangibles.

(n) Represents the total number of outstanding shares of Class A common stock on September 30, 2019 and not otherwise subject to vesting or forfeiture restrictions on such date, together with the total number of outstanding shares of Class A common issuable upon exchange of the total number of outstanding Class A units in Hawk Parent on September 30, 2019 (without regard to the restriction on exchanges prior to the six-month anniversary of the Business Combination). This amount does not take into the issuances, releases and cancellations of shares and units described in “Subsequent Events” above.

(o) Adjustment for incremental depreciation and amortization recorded due to fair-value adjustments under ASC 805 in the Successor Period.

View source version on businesswire.com: https://www.businesswire.com/news/home/20191114005866/en/

Source: Repay Holdings Corporation

Investor Relations Contact for REPAY:
repayIR@icrinc.com

Media Relations Contact for REPAY:
Kristen Hoyman
(404) 637-1665
khoyman@repay.com

ATLANTA--(BUSINESS WIRE)--Oct. 14, 2019--Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY”), a leading provider of vertically-integrated payment solutions, today announced the acquisition of APS Payments (“APS”) for $60 million, of which $30 million was paid at closing. The remaining $30 million may become payable upon the achievement of performance growth targets. The closing of the acquisition was financed with a combination of cash on hand and proceeds from borrowings under REPAY’s existing credit facility.

Is Your Credit Union Keeping Up with Modern Technology?

Seventy-nine percent of credit union members would leave their credit union for a financial technology (fintech) firm for convenience and easy access to services. If you are a credit union, this figure should scare you. But don’t jump to any hasty conclusions just yet -- you don’t have to invest a billion dollars in new technology. You can compete with larger financial institutions even if you don’t have the same access to funds. You do have options. At REPAY, we empower credit unions to enhance the member experience. Our real-time payment technology solutions enable credit unions to provide faster, more streamlined digital service offerings.

Buy, Build, or Partner

Why build something brand new when you can partner or buy? Banks and credit unions have been dealing with the rise of fintech by choosing one of three options: buy, build, or partner. A few large institutions have purchased smaller fintech disruptors and made them their own. For instance, SunTrust bought FirstAgain and rebranded it as SunTrust’s online lending arm, Lightstream.  Other banks have chosen to build their technology, as evidenced when Goldman Sachs introduced Marcus, its online banking service. While buying or building new technology can work for large financial institutions, smaller establishments have chosen another route – partnership. Many credit unions are in a place where partnering with a fintech firm makes the most sense, regardless of how much capital they’re willing to spend on new technology. This Forbes piece describes how most credit unions spend a similar percentage of assets (0.42%) on new technology, as compared to a group of nine mega- and regional banks. Credit unions only spend 12% less than the megabanks do, the difference due to their smaller size. However, credit unions can use that smaller size to their advantage by remaining agile and adaptable to ever-changing consumer demands. As this PYMNTS.com article states, fintech firms “aren’t an adversarial force in the market for credit unions. Rather they are potential partners for filling the gaps in service offerings.” And we couldn’t agree more. Each side brings something valuable to the table.

• Credit unions foster a much higher level of trust among their members when compared to banks and their customers. Credit unions also boast a much higher satisfaction rate than do most other financial institutions.
• Fintech firms bring new technology and innovation, allowing members to make payments faster, apply for loans online, and transact business around the clock.

When the two partner up, your credit union runs in a more modern, efficient, and agile manner thanks to the introduction of new technology.

Fintech Helps Answer Your Most Common Questions

A partnership with a fintech business means you can use the most advanced technology to streamline service offerings. You can give your members better answers to their most common questions:

• Can I apply for a mortgage with my credit union?
  • Why, of course, you can! And now, you can apply online, seamlessly submit documentation, and manage your loan payments on our mobile app.
• Can I use my credit union for business?
  • Definitely! Not only can you open a business account, but you can also process customer payments. You can also text us for service and access your account 24/7.

Credit Unions and Fintech Firms Are Better Together

Well-run credit unions do not threaten fintech firms. They don’t want to be credit unions, and they rarely seek banking licenses. However, because fintech firms often specialize in a few specific services, it makes sense they would want to fill those solution gaps. Credit unions, on the other hand, are always looking for ways to provide better technology to their members. Therefore, a partnership between a fintech firm and a credit union is an ideal scenario, thereby providing all members with both cutting-edge technology and premier customer service. In future articles, we are going to examine issues like technological trends for credit unions and how staying small and agile is an advantage in a market of banking giants. If you are curious about how the most advanced payment technologies can help your credit union grow, contact us to request a demo.

ATLANTA--(BUSINESS WIRE)--Sept. 10, 2019--Repay Holdings Corporation, (NASDAQ: RPAY) (“REPAY”) a leading provider of vertically-integrated payment solutions, today announced that it has joined the Symitar^® Vendor Integration Program (VIP). Participation in the program will provide REPAY with access to Symitar’s technical resources to enable REPAY’s proprietary payment platform to integrate with Symitar’s Episys^® platform. The Vendor Integration Program is designed to help ensure that Symitar’s customers can easily deploy third-party products.

REPAY’s payment platform integrates with Episys via SymXchange™, a services-based programming interface that enables third-party vendors and credit unions to access the platform’s core data and business rules. The integrity of data is maintained throughout any data exchange, because access to business rules and data is managed through a service layer which governs these interactions.

REPAY’s payment technology aims to help credit unions reduce the complexity of electronic payments, increase member satisfaction, and enhance the member experience by offering convenient and secure payment options. The REPAY platform provides access to credit/debit card processing, Instant Funding, ACH processing, IVR/phone pay, text pay, electronic bill payment and presentment (EBPP) systems, and white-labeled member-facing payment portals, including web portals and mobile apps. REPAY’s inclusion in the VIP will make it easier for Symitar’s customers to use these advanced payment technology solutions to seamlessly accept payments and automatically update member payment data.

“Competition for new customers is fierce in the world of lending,” said Susan Perlmutter, Chief Revenue Officer of REPAY. “Having a multitude of friendly, self-service payment options for members, as well as state of the art collection tools that are integrated to their core platform, can be a game changer for a credit union. REPAY’s technology integration to the Episys platform can be a quick resolution to close this gap for our credit union clients.”

Symitar’s VIP takes the customer out of the middle, providing vendors with direct access to Symitar’s technical resources and test systems. VIP inclusion is not an endorsement of the vendor’s product.

About Symitar

Symitar^®, a division of Jack Henry & Associates, Inc. (NASDAQ:JKHY), is a provider of integrated computer systems for credit unions of all sizes. Symitar has been selected as the primary technology partner by more than 800 credit unions, serving as a single source for integrated, enterprise-wide automation and as a single point of contact and support. Additional information about Symitar is available at www.symitar.com.

About Jack Henry & Associates, Inc.

Jack Henry & Associates, Inc.^® (NASDAQ: JKHY) is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Its solutions serve more than 9,000 customers nationwide, and are marketed and supported through three primary brands. Jack Henry Banking^® supports banks ranging from community banks to multi-billion-dollar institutions with information processing solutions. Symitar^® is a leading provider of information processing solutions for credit unions of all sizes. ProfitStars^® provides highly specialized products and services that enable financial institutions of every asset size and charter, and diverse corporate entities to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. Additional information is available at www.jackhenry.com.

About REPAY

REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for merchants, while enhancing the overall experience for consumers.

View source version on businesswire.com: 
https://www.businesswire.com/news/home/20190910005294/en/

Source: Repay Holdings Corporation

Investor Relations Contact for REPAY:
repayIR@icrinc.com 

Media Relations Contact for REPAY:
Kristen Hoyman
khoyman@repay.com