Repay (RPAY) - 2023 Q3 - Quarterly Report

Financial Performance - Total revenue for Q3 2023 was $74,320,000, representing a 3.5$71,555,000 in Q3 2022[10] - Net loss attributable to the Company for Q3 2023 was $6,168,000, compared to a net income of$5,845,000 in Q3 2022[10] - For the nine months ended September 30, 2023, the net loss was $39.746 million compared to a net income of$16.906 million for the same period in 2022[19] - Total revenue for the three months ended September 30, 2023, was $74.3 million, an increase from$71.6 million in the same period of 2022[102] - Total revenue for the nine months ended September 30, 2023, was $220.6 million, a 6.4$206.6 million in 2022[161] - The Company reported a net loss of $39.746 million for the nine months ended September 30, 2023, compared to a net income of$16.906 million in the same period of 2022[157] Expenses and Costs - Operating expenses for Q3 2023 totaled $79,439,000, up from$76,988,000 in Q3 2022, reflecting a 3.0% increase[10] - Total operating expenses for the nine months ended September 30, 2023 were $253.589 million, an increase from$235.461 million in the prior year[157] - Costs of services for Q3 2023 were $17.6 million, up 6.0$16.6 million in Q3 2022, attributed to new client growth[122] - Selling, general and administrative expenses decreased by 2.1% to $35.3 million in Q3 2023 from$36.0 million in Q3 2022[123] - The company incurred depreciation and amortization expenses of $79.146 million for the nine months ended September 30, 2023, down from$82.442 million in 2022[19] Cash and Liquidity - Cash and cash equivalents increased to $117,730,000 as of September 30, 2023, from$64,895,000 at the end of 2022, marking an 81.5% increase[8] - Cash flows from operating activities provided $68.751 million, an increase from$52.392 million in the prior year[19] - Total cash, cash equivalents, and restricted cash at the end of the period was $141.390 million, up from$86.726 million at the end of September 2022[19] - The company had $117.7 million in cash and cash equivalents as of September 30, 2023, with an available borrowing capacity of$185.0 million under the Amended Credit Agreement[173] Debt and Liabilities - Total liabilities decreased to $680,421,000 as of September 30, 2023, from$698,507,000 at the end of 2022, a reduction of 2.6%[8] - The Company’s long-term debt stood at $433,454,000 as of September 30, 2023, slightly down from$451,319,000 at the end of 2022, a decrease of 4.0%[8] - The Company had $0 drawn against the revolving credit facility as of September 30, 2023, with an undrawn capacity of$185 million[67] - The carrying value of the 2026 Notes was $433.5 million as of September 30, 2023, compared to$451.3 million at the end of 2022[54] Equity and Stock Performance - Total stockholders' equity as of September 30, 2023, was $902,346,000, down from$928,293,000 at the end of 2022, a decrease of 2.8%[8] - The Company recognized a loss of $10 million associated with the sale of Blue Cow Software, LLC, which had cash proceeds of$41.9 million[22] - The Company has a share repurchase program approved for up to $50 million of its outstanding Class A common stock[175] Segment Performance - The Consumer Payments segment accounted for approximately 87$68.7 million and $204.6 million respectively[99][102] - Business Payments segment revenue decreased by 15.2$9.7 million in Q3 2023 from $11.4 million in Q3 2022, impacted by declines in media payments[140] - Revenue for the Consumer Payments segment increased by 9.1$68.7 million in Q3 2023 from $63.0 million in Q3 2022[138] Tax and Regulatory Matters - The effective tax rate for the three months ended September 30, 2023, was 24$2.0 million for the three months ended September 30, 2023[87] - The company has concluded that all deferred tax assets associated with the ceiling rule limitation are not likely to be realized, resulting in a 100% valuation allowance[92] Future Outlook - The Company plans to continue focusing on market expansion and new product development to drive future growth[10] - The company anticipates that cash flow from operations and available borrowing capacity will be sufficient to fund operations and capital expenditures for the next twelve months[173] - The company continues to monitor macroeconomic conditions, including inflation and rising interest rates, which may impact payment volumes and overall financial performance[111]