• |
Total revenues increased 12.0% year-over-year to $40.8 million, compared to $36.5 million in the prior year period.
|
• |
Payments, software, and advisory revenue (excluding equipment sales) increased 20.5% year-over-year to $30.1 million, compared to $25.0 million in the prior year period.
|
• |
Gross profit increased 44.0% year-over-year to $17.6 million, compared to $12.2 million in the prior year period. Gross margin improved to 43.1% compared to 33.5% in the prior year period.
|
• |
Gross profit on payments, software, and advisory revenue (excluding equipment sales) increased 32.8% to $15.4 million, compared to $11.6 million in the prior year period. Gross margin improved to 51.0% compared to 46.2% in the prior year period.
|
• |
Non-GAAP adjusted gross profit increased 35.3% year-over-year to $22.4 million, compared to $16.6 million in the prior year period. Non-GAAP adjusted gross margin improved to 54.9% compared to 45.4% in the prior year period.
|
• |
Non-GAAP adjusted gross profit on payments, software, and advisory revenue (excluding equipment sales) increased 26.9% to $20.2 million, compared to $15.9 million in the prior year period. Related Non-GAAP adjusted gross margin improved to 66.9% compared to 63.6% in the prior year period.
|
• |
Net loss decreased to $1.3 million from a net loss of $6.8 million in the prior year period.
|
• |
Non-GAAP adjusted EBITDA increased 68.5% to $8.4 million, compared to $5.0 million in the prior year period.
|
• |
Year-to-date monetized transaction volume (MTV) increased 25.8% to $755.7 million, compared to $600.7 million in the prior year period.
|
• |
Dollar-based net revenue retention was 109.0% for the trailing twelve months (TTM) ended March 31, 2022 compared to 95.3% for the TTM ended March 31, 2021.
|
• |
Signed a new multi-year agreement to provide order-to-cash solutions to a leading group purchasing organization with multi-billion dollars of purchasing volume.
|
• |
Completed integration and rebranding of 2020 acquisition of Vendorin to Corcentric Payments.
|
• |
Presented at numerous payments, procurement, and supply chain events in North America and Europe.
|
• |
Adjusted gross profit (non-GAAP) is defined as total revenues less total direct costs of revenue, excluding depreciation and amortization, plus stock-based compensation expense included in total direct costs of revenue.
|
• |
Adjusted gross margin (non-GAAP) is defined as adjusted gross profit divided by total revenues.
|
• |
EBITDA is defined as net income (loss) from continuing operations adjusted for (i) Interest expense, net; (ii) Provision (benefit) for income taxes; and (iii) Depreciation and amortization.
|
• |
Adjusted EBITDA (non-GAAP) is defined as EBITDA adjusted for (i) Stock-based compensation; (ii) Foreign exchange gain (loss); (iii) Equity in loss (income) of affiliate; (iv) Acquisition costs; and (v) Restructuring and strategic project expenses which qualify as adjustments to EBITDA as defined in our credit agreements.
|
• |
Monetized Transaction Volume ("MTV") is the dollar value of customer payment transactions that we process through our payment network and is a key driver of our payments revenue.
|
• |
Dollar Based Net Revenue Retention ("DBNRR") is a measure of customer retention. We calculate DBNRR at the end of each period by dividing the current period revenue from customers that existed during the prior year period by the revenue generated from the identical customer set during the prior period. Customers obtained through acquisition are not included in the calculation until revenues generated from them are comparable in both the current and prior periods. This calculation includes only our payments and software revenues as our advisory and equipment sale revenues are non-recurring in nature.
|
Three months ended
March 31,
| ||||||||
2022
|
2021
| |||||||
Revenue:
| ||||||||
Payments, software and advisory revenue
|
$
|
30,125
|
$
|
25,002
| ||||
Equipment sales
|
10,706
|
11,470
| ||||||
Total revenues
|
40,831
|
36,472
| ||||||
Direct costs of revenues (excluding depreciation and amortization
shown separately below):
| ||||||||
Direct costs of payments, software and advisory revenue
|
10,041
|
9,176
| ||||||
Direct costs of equipment sales
|
8,446
|
10,797
| ||||||
Total direct costs of revenue
|
18,487
|
19,973
| ||||||
Operating expenses:
| ||||||||
Research and development
|
1,081
|
566
| ||||||
Sales and marketing
|
6,710
|
6,367
| ||||||
General and administrative
|
7,140
|
5,915
| ||||||
Depreciation and amortization
|
5,966
|
5,765
| ||||||
Total operating expenses
|
20,897
|
18,613
| ||||||
Operating income (loss)
|
1,447
|
(2,114
|
)
| |||||
Interest expense
|
(2,274
|
)
|
(2,387
|
)
| ||||
Interest income
|
28
|
22
| ||||||
Foreign exchange gain
|
157
|
111
| ||||||
Loss before income taxes and equity in income of affiliate
|
(642
|
)
|
(4,368
|
)
| ||||
Provision for income taxes
|
(544
|
)
|
(2,439
|
)
| ||||
Equity in (loss) income of affiliate
|
(70
|
)
|
34
| |||||
Net loss
|
$
|
(1,256
|
)
|
$
|
(6,773
|
)
| ||
Less preferred stock dividends and accretion of preferences
|
(5,493
|
)
|
(5,304
|
)
| ||||
Net loss available for common stockholders
|
$
|
(6,749
|
)
|
$
|
(12,077
|
)
| ||
Net loss per common share, basic and diluted
|
$
|
(0.47
|
)
|
$
|
(0.93
|
)
| ||
Weighted average common shares outstanding:
| ||||||||
Basic shares and diluted shares
|
14,484,890
|
12,917,379
| ||||||
Comprehensive loss
| ||||||||
Net loss
|
$
|
(1,256
|
)
|
$
|
(6,773
|
)
| ||
Cumulative translation adjustment
|
(502
|
)
|
(288
|
)
| ||||
Comprehensive loss
|
$
|
(1,758
|
)
|
$
|
(7,061
|
)
|
March 31,
2022
(unaudited)
|
December 31,
2021
| |||||||
Assets
| ||||||||
Current assets:
| ||||||||
Cash and cash equivalents
|
$
|
8,628
|
$
|
9,856
| ||||
Accounts receivable, net
|
280,959
|
239,404
| ||||||
Rebates, fees, and other receivables
|
9,163
|
10,735
| ||||||
Inventories, prepaid expenses, and other current assets
|
29,837
|
17,705
| ||||||
Total current assets
|
328,587
|
277,700
| ||||||
Property and equipment, net
|
28,363
|
26,499
| ||||||
Goodwill
|
114,139
|
114,497
| ||||||
Other intangible assets, net
|
34,910
|
37,483
| ||||||
Other assets
|
13,146
|
12,753
| ||||||
Operating lease right-of-use assets
|
4,868
|
-
| ||||||
Total assets
|
$
|
524,013
|
$
|
468,932
| ||||
Liabilities, mezzanine equity and stockholders' equity (deficit)
| ||||||||
Current liabilities:
| ||||||||
Current portion of long-term debt, net
|
$
|
751
|
$
|
751
| ||||
Accounts payable
|
203,570
|
152,540
| ||||||
Rebates payable
|
8,704
|
6,785
| ||||||
Current portion of operating lease liabilities
|
1,377
|
-
| ||||||
Accrued expenses and other current liabilities
|
28,234
|
27,298
| ||||||
Total current liabilities
|
242,636
|
187,374
| ||||||
Long-term debt, net
|
154,813
|
164,625
| ||||||
Deferred income taxes
|
2,298
|
2,092
| ||||||
Other liabilities
|
9,001
|
1,084
| ||||||
Operating lease liabilities, net of current portion
|
3,580
|
-
| ||||||
Total liabilities
|
412,328
|
355,175
| ||||||
Mezzanine equity:
| ||||||||
Redeemable preferred stock - $0.001 par value per share; 2,700,967 shares authorized; 2,700,967 shares issued and outstanding at March 31, 2022 and December 31, 2021
|
115,024
|
109,531
| ||||||
Redeemable common stock - $.001 par value; 3,502,268 issued and outstanding at March 31, 2022 and December 31, 2021
|
5,419
|
5,419
| ||||||
Stockholders' equity (deficit):
| ||||||||
Common stock - $0.001 par value per share; 35,000,000 shares authorized; 13,343,058 shares issued and 11,241,054 shares outstanding at March 31, 2022; 13,343,058 shares issued and 11,276,027 shares outstanding at December 31, 2021
|
12
|
12
| ||||||
Additional paid-in capital
|
59,940
|
59,222
| ||||||
Cumulative translation adjustments
|
(327
|
)
|
175
| |||||
Retained earnings (accumulated deficit)
|
(45,455
|
)
|
(38,709
|
)
| ||||
Treasury stock at cost, 2,102,004 and 2,067,031 shares at March 31, 2022 and December 31, 2021, respectively
|
(22,928
|
)
|
(21,893
|
)
| ||||
Total stockholders' equity (deficit)
|
(8,758
|
)
|
(1,193
|
)
| ||||
Total liabilities, mezzanine equity and stockholders' equity (deficit)
|
$
|
524,013
|
$
|
468,932
|
Three months ended March 31, 2022
| ||||||||||||||||||||||||||||||||||||||||||||||||
Mezzanine Equity
|
Stockholders' Equity (Deficit)
| |||||||||||||||||||||||||||||||||||||||||||||||
Redeemable
Preferred Stock
|
Redeemable
Common Stock
|
Common Stock
|
Additional
Paid-In
Capital
|
Cumulative Translation
Adjustments
|
Retained
Earnings
(Accumulated Deficit)
|
Treasury Stock at Cost
| ||||||||||||||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Total
| ||||||||||||||||||||||||||||||||||||||||
Balance at
December
31, 2021
|
2,700,967
|
$
|
109,531
|
3,502,268
|
$
|
5,419
|
13,343,058
|
$
|
12
|
$
|
59,222
|
$
|
175
|
$
|
(38,709
|
)
|
2,067,031
|
$
|
(21,893
|
)
|
$
|
(1,193
|
)
| |||||||||||||||||||||||||
Stock-based compensation
|
-
|
-
|
-
|
-
|
-
|
699
|
-
|
-
|
-
|
-
|
699
| |||||||||||||||||||||||||||||||||||||
Repurchases
of common stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
34,973
|
(1,035
|
)
|
(1,035
|
)
| ||||||||||||||||||||||||||||||||||
Accretion of redemption preference and issuance costs
|
-
|
2,244
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,244
|
)
|
-
|
-
|
(2,244
|
)
| ||||||||||||||||||||||||||||||||||
Accumulated dividends
|
-
|
3,249
|
-
|
-
|
-
|
-
|
-
|
-
|
(3,249
|
)
|
-
|
-
|
(3,249
|
)
| ||||||||||||||||||||||||||||||||||
Other share activity
|
-
|
-
|
-
|
-
|
-
|
-
|
19
|
-
|
3
|
-
|
-
|
22
| ||||||||||||||||||||||||||||||||||||
Cumulative translation adjustments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(502
|
)
|
-
|
-
|
-
|
(502
|
)
| ||||||||||||||||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,256
|
)
|
-
|
-
|
(1,256
|
)
| ||||||||||||||||||||||||||||||||||
Balance at March, 31, 2022
|
2,700,967
|
$
|
115,024
|
3,502,268
|
$
|
5,419
|
13,343,058
|
$
|
12
|
$
|
59,940
|
$
|
(327
|
)
|
$
|
(45,455
|
)
|
2,102,004
|
$
|
(22,928
|
)
|
$
|
(8,758
|
)
|
Three months ended March 31, 2021
| ||||||||||||||||||||||||||||||||||||||||||||||||
Mezzanine Equity
|
Stockholders' Equity
| |||||||||||||||||||||||||||||||||||||||||||||||
Redeemable
Preferred Stock
|
Redeemable
Common Stock
|
Common Stock
|
Additional
Paid-In
Capital
|
Cumulative Translation
Adjustments
|
Retained
Earnings
|
Treasury Stock at Cost
| ||||||||||||||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Total
| ||||||||||||||||||||||||||||||||||||||||
Balance at
December
31, 2020
|
2,700,967
|
$
|
88,195
|
3,502,268
|
$
|
5,419
|
11,614,800
|
$
|
10
|
$
|
34,651
|
$
|
853
|
$
|
15,415
|
1,921,447
|
$
|
(18,285
|
)
|
$
|
32,644
| |||||||||||||||||||||||||||
Stock-based compensation
|
-
|
-
|
-
|
-
|
-
|
-
|
571
|
-
|
-
|
-
|
-
|
571
| ||||||||||||||||||||||||||||||||||||
Repurchases
of common stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
17,964
|
(144
|
)
|
(144
|
)
| ||||||||||||||||||||||||||||||||||
Accretion of redemption preference and issuance costs
|
-
|
2,244
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,244
|
)
|
-
|
-
|
(2,244
|
)
| ||||||||||||||||||||||||||||||||||
Accumulated dividends
|
-
|
3,060
|
-
|
-
|
-
|
-
|
-
|
-
|
(3,060
|
)
|
-
|
-
|
(3,060
|
)
| ||||||||||||||||||||||||||||||||||
Other share activity
|
-
|
-
|
-
|
-
|
-
|
-
|
19
|
-
|
-
|
-
|
-
|
19
| ||||||||||||||||||||||||||||||||||||
Cumulative translation adjustments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(288
|
)
|
-
|
-
|
-
|
(288
|
)
| ||||||||||||||||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(6,773
|
)
|
-
|
-
|
(6,773
|
)
| ||||||||||||||||||||||||||||||||||
Balance at
March 31, 2021
|
2,700,967
|
$
|
93,499
|
3,502,268
|
$
|
5,419
|
11,614,800
|
$
|
10
|
$
|
35,241
|
$
|
565
|
$
|
3,338
|
1,939,411
|
$
|
(18,429
|
)
|
$
|
20,725
|
March 31,
| ||||||||
2022
|
2021
| |||||||
Cash flows from operating activities:
| ||||||||
Net loss
|
$
|
(1,256
|
)
|
$
|
(6,773
|
)
| ||
Adjustments to reconcile net loss to net cash flows provided by operating activities:
| ||||||||
Depreciation and amortization
|
5,966
|
5,765
| ||||||
Bad debt expense (net of recoveries)
|
522
|
532
| ||||||
Stock-based compensation
|
699
|
571
| ||||||
Other share activity
|
20
|
19
| ||||||
Deferred income tax expense
|
206
|
2,394
| ||||||
Amortization of debt issuance costs
|
358
|
358
| ||||||
Equity in (income) loss of affiliate
|
70
|
(34
|
)
| |||||
Changes in operating assets and liabilities:
| ||||||||
Accounts receivable and other receivables
|
(40,505
|
)
|
(22,709
|
)
| ||||
Other current assets
|
(12,232
|
)
|
(501
|
)
| ||||
Accounts payable
|
51,030
|
21,901
| ||||||
Accrued expenses and other current liabilities
|
2,456
|
213
| ||||||
Other assets and liabilities
|
8,050
|
554
| ||||||
Net change in right-of-use assets and liabilities
|
89
|
-
| ||||||
Net cash provided by operating activities
|
15,473
|
2,290
| ||||||
Cash flows from investing activities:
| ||||||||
Purchases of property and equipment (including software development)
|
(5,229
|
)
|
(3,639
|
)
| ||||
Net cash used in investing activities
|
(5,229
|
)
|
(3,639
|
)
| ||||
Cash flows from financing activities:
| ||||||||
Proceeds from line of credit
|
604,431
|
474,957
| ||||||
Repayments on line of credit
|
(614,056
|
)
|
(474,468
|
)
| ||||
Repayment of term loan
|
(350
|
)
|
(350
|
)
| ||||
Repurchases of common stock
|
(1,035
|
)
|
(144
|
)
| ||||
Debt issuance costs
|
(32
|
)
|
-
| |||||
Payment of offering costs
|
(359
|
)
|
-
| |||||
Net cash used in financing activities
|
(11,401
|
)
|
(5
|
)
| ||||
Net decrease in cash and cash equivalents
|
(1,157
|
)
|
(1,354
|
)
| ||||
Effect of exchange rate on cash
|
(71
|
)
|
(111
|
)
| ||||
Cash and cash equivalents, beginning of period
|
9,856
|
10,721
| ||||||
Cash and cash equivalents, end of period
|
$
|
8,628
|
$
|
9,256
| ||||
Supplemental disclosures of cash flow information
| ||||||||
Cash paid for interest
|
$
|
1,818
|
$
|
1,894
| ||||
Cash income tax (refunds), net of payments made
|
$
|
(1,504
|
)
|
$
|
(30
|
)
|
Payment , Software &
Advisory
|
Equipment Sales
|
Total
| ||||||||||||||||||||||
Three months ended
March 31,
|
Three months ended
March 31,
|
Three months ended
March 31,
| ||||||||||||||||||||||
(in thousands)
|
2022
|
2021
|
2022
|
2021
|
2022
|
2021
| ||||||||||||||||||
Revenue
|
$
|
30,125
|
$
|
25,002
|
$
|
10,706
|
$
|
11,470
|
$
|
40,831
|
$
|
36,472
| ||||||||||||
Direct costs of revenues
|
(10,041
|
)
|
(9,176
|
)
|
(8,446
|
)
|
(10,797
|
)
|
(18,487
|
)
|
(19,973
|
)
| ||||||||||||
Depreciation and amortization allocated to costs of revenue
|
(4,726
|
)
|
(4,264
|
)
|
-
|
-
|
(4,726
|
)
|
(4,264
|
)
| ||||||||||||||
Gross profit
|
15,358
|
11,562
|
2,260
|
673
|
17,618
|
12,235
| ||||||||||||||||||
Depreciation and amortization
|
4,726
|
4,264
|
-
|
-
|
4,726
|
4,264
| ||||||||||||||||||
Stock-based compensation expense included in cost of revenues
|
83
|
72
|
-
|
-
|
83
|
72
| ||||||||||||||||||
Adjusted gross profit (Non-GAAP)
|
$
|
20,167
|
$
|
15,898
|
$
|
2,260
|
$
|
673
|
$
|
22,427
|
$
|
16,571
| ||||||||||||
Gross margin
|
51.0
|
%
|
46.2
|
%
|
21.1
|
%
|
5.9
|
%
|
43.1
|
%
|
33.5
|
%
| ||||||||||||
Adjusted gross margin (Non-GAAP)
|
66.9
|
%
|
63.6
|
%
|
21.1
|
%
|
5.9
|
%
|
54.9
|
%
|
45.4
|
%
|
Three months ended
March 31,
| ||||||||
(in thousands)
|
2022
|
2021
| ||||||
Net (loss) income
|
$
|
(1,256
|
)
|
$
|
(6,773
|
)
| ||
Adjustments:
| ||||||||
Interest expense, net
|
2,246
|
2,365
| ||||||
Provision for income taxes
|
544
|
2,439
| ||||||
Depreciation and amortization
|
5,966
|
5,765
| ||||||
Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)
|
$
|
7,500
|
$
|
3,796
| ||||
Adjustments:
| ||||||||
Stock-based compensation expense
|
$
|
699
|
$
|
571
| ||||
Foreign currency (gain) loss
|
157
|
111
| ||||||
Equity in (income) loss of affiliate
|
(70
|
)
|
34
| |||||
Acquisition costs 1
|
139
|
33
| ||||||
Restructuring and strategic project expenses 2
|
-
|
454
| ||||||
Adjusted EBITDA (Non-GAAP)
|
$
|
8,425
|
$
|
4,999
|
1 |
For the three months ended March 31, 2022, represents the provision for earn out compensation that may become payable to certain employees who are former shareholders of Vendorin LLC, if performance criteria are achieved. For the three months ended March 31, 2021, represents legal, accounting and other professional fees incurred in connection with the acquisition of Vendorin LLC (2020).
|
2 |
For the three months ended March 31, 2021, represents transaction costs associated with the Business Combination and charges associated with severance.
|
Three months ended
March 31,
| ||||||||
2022
|
2021
| |||||||
Payments
|
$
|
16,519
|
$
|
13,555
| ||||
Software
|
8,051
|
8,115
| ||||||
Advisory
|
5,555
|
3,332
| ||||||
Equipment sales
|
10,706
|
11,470
| ||||||
Total revenues
|
$
|
40,831
|
$
|
36,472
|
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Disclaimer
North Mountain Merger Corp. published this content on 21 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2022 20:53:06 UTC.