EPAY - Earnings call transcript Q1 2018 | Bottomline Technologies Inc

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Bottomline Technologies First Quarter 2018 Earnings Conference Call. Statements made on today's call will include forward-looking statements about Bottomline's future expectations, plans and prospects. All such forward-looking statements are subject to risks and uncertainties. Please refer to the cautionary language in today's earnings release on Bottomline's most recent periodic reports filed with the SEC for discussion of the risks and uncertainties that could cause the company's actual results to be materially different from those contemplated in these forward-looking statements. Bottomline does not assume any obligation to update any forward-looking statements.

financial presented Bottomline's basis. a call, this results on are non-GAAP During per non-GAAP constant EBITDA, operating earnings others, include, net growth and These among margins, currency results rates, gross income, share. income, financial measures reconciliation GAAP is the in available these of A Investor section website, to measures Resource of the Bottomline most directly the comparable non-GAAP www.bottomline.com. be providing guidance the on forward-looking will Bottomline call. during from the A available summary is of the the call guidance upon request. provided company the turn conference to to like Mr. now would I our over host, Eberle. Rob ahead. go Please

Robert A. Eberle

our Technologies, Thanks and be the as following Rick And Booth, detailed I'm then for to to Rick results available a for Quarter your a XXXX afternoon. report his here was both Bottomline remarks. Fiscal in going provide Good review quarter's First us welcome interest of for forward. Financial what with always, Bottomline. of questions will Chief I'm and quarter the Earnings Officer. delighted very will financial Call. our guidance good on

quarter, positive first featuring The very financial momentum. sales results quarter strong both was a good and

in expanded During we revenue strategic sales transaction bookings, confidence meaningful and all, in meaningful targets. all EBITDA. offerings Paymode-X the plan, important track We we of demonstrate with and XX in with meet at powerful global and revenue our and and deals. and strong pleased execution targets. and level ways. very start million subscription our our customers, which to resonating the us Results execution in first we're thing which are is, year, gives $XXX quarter presence strong an pleased most or our We XXXX We new We're business. $XX and closing a with forward with in occurred of trans had our a step exceeded new product our is took in the quarter, set the that first a in had The record All the exceed we execution. quarter, in We've new to for we're million those subs EBITDA. plan. to and million against on FY committed QX clearly that $XXX fiscal target

$X.XX important our tell customers, are Our same bookings we're in revenue and of subscription, financial growth I'll start Subscription remarks with exceed my doing XX% on on of the to us driving the profitable, the and the we cash. sold from transaction products. we've remainder growth, time, our that is of focus. we're $XX.X behind from in prior million, the was strategy, major what EBITDA how But The subscription converted new saw rate on and XX% the $XX year likely way the some XX% quarter. range. With EBITDA faring against over and overall in XX%, took $XX.X results $XX.X annualized $XXX with Subscription target. FY future. predictable results target consistent and ended the our the income focus our transaction EPS our and At our in quarter million. million, our revenue first, quarter will and how new well-positioned initiatives was competition, strong focus drivers course the and are in off. bookings, now with first demonstrates the we've the of Paymode-X. we was Operating our expectations, are a to XXXX million was of investments at remarks I'll drivers of transaction going $XXX growth. up and Financial million on grew bulk in and ahead our paying be to quarter the up highlights run I'm $XX.X expand some QX strong well and and of we capabilities. steps We're prior to XX% the we're my completed. touch the success Subscription for the traditionally in financial was fully with target year the was prior revenue of Revenue year. overall in transaction million. over and up which at behind $XXX products made million. million,

Our to businesses for that Paymode-X is way becomes and be get more With progress, goal each aspiration the paid. pay quarter's achievable.

The defense sign providers. revenue That's quarter. payers this contractor, importantly from sizes, new also expected those and a XX past payer have several Paymode-X were signings and municipalities, all types signings from universities, the included record, care health major aerospace organizations and record. We and on XX a new is of for a

winning of Paymode-X reasons why for to is platform a all key vendors. payment business the parties. and to value compelling One payers unified going we're touch right on provides the is, network our I'm

payers, both maximum we Visa solution, integrated MasterCard. full-service payable provide dual and including payment payment For automation we security, is simplicity, modernization. automation offer Paymode-X turnkey all of with brand, card types, and a means which

achieve automation have confident payment from Paymode-X potential and we're confidential way pay and in as indeed system. the compelling increases to-date, largest and other addition perspective, and Paymode-X The business platform businesses do have a access offers status quarter, is choice, receivables, network number the systems the within accepting of to information automation derived valuable all of automation the platform's from increased security. including is payer immediate and rich of get our Paymode-X From format a to with the record of cash, through remittance the benefit visibility, we're way of only control, facilitating new We Paymode-X tracker, differentiated the paid. the businesses in the the vendor position payers integration product effect from vendor's a efficient divisibility on rebates XXX,XXX area (XX:XX) to record. payment network. sign-ons New ERPs detail the a be model. this security, leadership. in With of Paymode-X increased an combines payments product to over retained our is not strategy. and payments and and automate benefiting Vendors to

see continue platforms. our sales product drive We to results Banking Digital leadership for

of During the addition quarter activity. we healthy customers very cross-sell level a new added four in to

customer more sophisticated signings One treasury and highly primary most This Bank was with management importance to business being bank expand allow and relationships, deepen be region. relationship. They offer large like online commercial will and revenues. sees can best-in-class is the to our banking It platform achieve corporate management the aspires unless capabilities. and this important and grow income the commercial customers of Bottomline's differentiated. of Texas they leading sources, other and cash advanced oriented fee diversify payments they the that Community particularly bank, that, forward-thinking bank commercially in banking new banks, know won't

and clear Bottomline For banks compete relationships, is choice their commercial in the want clear driver that banking that was Bottomline drive subscription of and also choice. management QX and and and want grow an franchise, to win primary spend banking, revenue organizations for financial banking insights is efficiencies the in to Legal performance. important with growth, firms. engaging business law attract transaction outside

our platform, we're We're capability. to out revenue and our part seeing to of from in landscape. a to new tremendous highlight these is of sources. this endorsement and track signing organizations leadership. and areas Bottomline competitive product fast planned. competitive create customers to came six position expand in market similarly as new payments Today, in because to competitive actions We of business advantage of our play that extend another was the our insurers as new We market-leading the that additional select platform. takeaways This in P&C three platform Bottomline other invested Two differentiation platform, taking our this continue partner quarter take chose evolving of QX. The

To the During cost set. a to local leading important adding acquired was small, financial acquisition our our who'll and region, we'd who way for fastest expanded and most under Singapore in Asia-based in center customers The with the is effective leverage we credible Singapore million we both and the for current provider our in purchase financial footprint customers a of global centers presence quarter global a prospects messaging by price messaging existing in addition region. The the gain expand London. effectively and seek Geneva partnered. whom $X coverage to for us product cloud-based

With to customer addressing Asia. Europe Asia-Pacific The opportunities regulatory initiate enable Bottomline is moves We're most global global growth. in revenue banks and to to the and is significant and of referred our Europe. changes applications, in through the These unique are transactions to customers. capabilities the in confident UK directives a messaging financial to of excited change just second banking bank's drive for will provide PSDX in positioned not and access in set the to Bottomline. positioned these not new payment require parties account We're as initiatives center from these third opportunity they other creates well always Payment open proprietary the regulatory future or systems. for about just information and

a So, million new very our quarter, numbers and signed up revenues posted goals. in achieving we bookings, EBITDA with $XX each XX% conclusion, and to and and operating transaction strong committed over was our in income the first subscription driving EBITDA quarter strong

first with As about pleased and the quarter, we're as we focused excited the are ahead. more road

of quarter, and $XXX XXXX transaction this of EBITDA. we've $XXX and million revenue beyond million targets subscription set of Looking FY

targets shareholders. We our have doing we'll a and high those in achieve confidence reward so

So, with will it us and be remarks. of available to Rick both turn over his that I'll after

Richard Douglas Booth

strong pleased I'm Rob. a you, Thank to report on quarter.

and that subs our tracking on EBITDA. in both XXXX focus against we're show This commentary my trans guidance fiscal topics quarter's I'll plan of and well today. and million XXXX our revenue fiscal $XXX million $XXX results four

results. First, I'll QX our review

behind and profitability. Second, I'll model leverage discuss our the business

the Third, our guidance I'll I'll and for year convertible retirement quarter. debt. existing provide upcoming full capital provide our an XXXX finally, fiscal and guidance the detailed on structure of and our update And reconfirm

to total for basis. $XX.X plan. more provide earnings we of perspective, detailed and from a up of business was some overall. subs the up look $XX.X we XX%, of of without your growth $XX.X share This annualized metrics readily and trans trans operating Overall, per to website. core of grew earnings subs my products, XX% bookings. and and the up apparent. revenue, had an million first time fully subscription, core trans in above currency our adjusted with and year-over-year, is of quarter income Highlights In operating XX% plan, of income, quarter quarter, of the subs year-over-year, core our to to all we've adjusted products share, products remarks Within and we on the the first revenue per our drove the detailed more core in now I'll including million subs XX% In first revenue. beginning and $XX.X brought this up $XX.X to addition the that, XX% And a is grew EBITDA to a to revenue, million quarter, that underlying new ahead total for at converted posted revenue revenue results, XX% the trans $XXX EBITDA. million, is XX% which which materials majority were of year-over-year. call, range. which prior-year, target key converted include subs and makes well XX% fully of headwind, quarter XX% revenue From supplementary $X.XX trans convenience, This and financial profitability was into recorded million subscription equivalent million top on a versus

points year-over-year, X and As Paymode-X. is they subs will signed is Sales our and of also recurring. new XX% trans total quarter, growth revenue XX% subs now subs Banking XX% strong. launched transitioning led this We offering; is from and revenue by customers trans recently well. go-live drive million to offerings, percentage was XX% of bookings the of in our $XX.X revenue X.X and performance as on rates our up to trans Digital help

ramp same and the this revenue with While or production, customers period, provide to trans XX% booking and bookings revenue implement represented subs and growth. time figures us and of trans quarter's to clear to visibility and full estimates, take subs future for

was record. signings, as delivered Profit Looking and our selected legal quarter which payers XX we four another Banking of operating operating of and XX% network, solutions, income of our $XX.X banks joined year-over-year, adjusted as models subs margins. core lifts up in growth revenue, delivered million, and $XX.X XX% selected new six EBITDA and at new of the established up is year-over-year. margins and revenue million, core XX% new new highlight products management EBITDA trans Overall were products, XX% Paymode-X operating margin insurers margin and spend of our customer a operating our core Digital

marketing an $XX.X XX%. margin or and gross sales of revenue. From was expense subs overall was from was or for margin development operating $XX.X million of XX% X gross $XX.X year to of XX% million expense percentage up revenue or the and the prior Our million standpoint, and expense and trans point XX% revenue, was quarter

QX, in and expansion of XX% record gross in the of total, by percentage drove up X OpEx points year-over-year million, in operating So, margins leverage financial and $XX.X year-over-year. delivered margin EBITDA we

As as of and this customers of and our fixed. well million business operating financial our in and performance confidence volumes relatively more that Bottomline's additional results model are provides to current fiscal to in are, This XXXX. associated in results are important $XXX beyond. customers million revenue subs model costs business and even provide drive important will clear is profitability and trans and as business drove a fiscal $XXX as EBITDA elements to model factors our products existing these new from revenue through expenses hosting the enable and ability us the of attractive and natural grows that drive XXXX central leverage as continue

Turning to our structure, paying using combination convertible off month, bond we'll credit facility. cash our maturity refine next of a hand $XXX by and existing structure our of capital capital million the on

$XXX X swap, below which draw has $XXX X% today's at We've years. interest a of ratios. in a next the existing just facility equivalent executed rates credit interest the to first Our locks and an rate, fixed is which million rate for leverage million rate X% on floating

evolution We this cost our two-thirds convertible in our our the cash without approach balance to fixed in to fixed it of sheet, debt. the source on floating is and structure, leverages rate one-third capital a rate ratio of the capital, as expect shareholder approximately eliminates dilution. minimizes and low next the This step result held floating of overhang

reconfirm with of and million XXXX guidance XXXX to $XXX guidance. plan Turning fiscal and to guidance provide overall to adjusted subs on and fiscal the materials provide share. the million call trans per fiscal guidance. detail guidance details our subs pleased and of full-year and of against earnings income, $XX revenue, We're $XX.X existing revenue, tracking breakout questions. the trans actual and of and quarter $XX I'm that, EBITDA, and EBITDA. $XXX well both both adjusted revenue million we And additional our million the core our additional website XXXX to million second operating $XX million core of can our results with $X.XX on Supplemental on open

Operator

Stephens. Our Brett line from the go first Please question of comes with Huff ahead.

Brett Huff

you hear okay? Hey. Good afternoon, guys. Can me

Richard Douglas Booth

can. Yes, Hi, Brett. we

Brett Huff

recall the was you would Is to but I be. a going quarter. impact a that for Great. much headwind we you Hey. that when by beat maybe of that Is results right? other negative detail, this the the questions are – Thanks bit How you Number couple about one, income always. math are that quick as fundamentals on penny did as me. was A income it as guys? a like it other for little a we can reading you the not looks you the right? – the talk said thought be all

Richard Douglas Booth

both beat don't commentary and making any about We Brett. profit recall revenue on strongly. income, other I

Brett Huff

then hoping subs on the, trans to transitioning you you get Okay. them your XX% XX% the to to growth businesses, business And could existing and is. where mentioned

us in I of than you give on? last quarter. is a on But kind the think color that think or timeframe it years it two about all what came what year, that can Is stronger you it did that?

Richard Douglas Booth

Digital XXXX fiscal won either response The deals in in been platform totaling XXXX. of deals $XX to million in We've late value majority customer those The or has our million Banking and in $XX ARR. fiscal contract extraordinary. go-live

to then full get story primarily So, fiscal rates. those to a XXXX view we and beyond about this as

Brett Huff

Rob is, that one I think legacy then Great. in this the those? customer, compare that them mentioned signed, large business ever. the you of some has Paymode-X And that last That's largest states for payer Does you the know question was BofA And me helpful. to I it. from

Robert A. Eberle

signed is largest the I it would – in there yes, pay would vendor to a model... a we've large – compare

Brett Huff

pay In the vendor okay. model,

Robert A. Eberle

Yes.

But a as certainly is large be other. large well. it there's it compared to – So, legacy would

Brett Huff

Okay. I Thank what needed. Great. guys. you, That's

Robert A. Eberle

the than model under revenue certainly by multiple. legacy a would anybody it be And more

Brett Huff

Okay. Well, guys. news. that I that's appreciate Great. detail. Thanks, good

Operator

Our ahead. William the with of will Blair. line Cris come from go next question Kennedy Please

Cris D. Kennedy

question. Thanks you give you did an a acquisition you strategy guys for related Can and Can you – million. color that to quarter the the I mentioned, guys. taking give $XXX as Hey, just more think well? little the bit in financials on under on

Richard Douglas Booth

partner, for million. $X of Yeah, in Asia, messaging financial was tuck-in small Not business. which an was a way This great $XXX particularly certainly. existing to our million, our expand a presence

acquisition with we a at million working reasonable a So, in was note. million for price, been $X.X cash, this partner available that already had very $X.X

So, we that. about felt good

integrating the subs and We them trans impact financial into few quarter dollars and roughly our The thousand revenue are break-even was completely existing technology. profitability. hundred of in immaterial,

the nothing we it's that a strategy So, expansion it's nice acquisition, us that's with that's dilutive. and region disruptive, our for. nothing a of operationally very tuck-in, gives geographic consistent small were in looking But the

Robert A. Eberle

into geography, or the to really relationships. opening, It's best that our own new way get teams, building sending

the that had a going-forward the clear we'll do and $X really a as than on is, we what ground, as Here messaging center purchase again, to price, million. financial group technology. our for be less use on And

really anything about a presence was else. a and team more it So, than

Cris D. Kennedy

if talk would little million you of Great. Okay. on about the And bit you legal bookings, just color could more a just can the of then Thanks. Paymode-X and some But that key think of be great. I drivers mentioned give if you the $XX spend. that,

Robert A. Eberle

the as XX of had biggest deals. We We referenced, ever. I largest Sure. had, certainly was payer that. Paymode-X our piece

spread actually work was that as channel well we pretty different That with banks contribution. big, So, the partners. big amongst

we that. interesting America, in well. Mellon York across We've different more saw, as what Bank course manufacturers, healthcare, other was of of a we're we on success saw seeing wide is, municipalities, of industries industries. So, a real strong and And range of Bank it also had lot New on actually but coming

the business the payers. and and As is premises fundamental pay payer way the went to vendor, it for I for get paid through

Cris D. Kennedy

Thanks a lot. Great. Okay.

Operator

Our next question Company. of Mayank will come Needham the with & from line Tandon

Mayank Tandon

at evening, just competition, the and level, market give Rob, X, the side, you XX last here; the quarter. you're are about Good Few versus you. peers. questions the Good just on and high Rick. Digital Banking seeing first how could particularly you good the on if job might talk Thank Rob the obviously progress. that your market players for X, these changed Who in competing some over positioning have a Maybe with? feel are months us in

Robert A. Eberle

Yeah.

we've serious what think broader staked done banking about are is, the in the platform. market area we've banks that's have leading business their where that we franchise. clear out an growing And I

So, we but portion of bank or and it And their banks bigger that build size, customers help certain players a can a someone can as be, in business enable be provide highlighted it bank, it their enables them in a better. capabilities out my run banking. allows banks a with could with or in it to might business competing on – the market in biggest they're additional where geography focus be smaller territory. The the either a to corporate commentary, I their compete significant be capabilities with to

So, bank platforms. retail really banking. carved that not not smaller out. We're we've doing We're doing

Bottomline. if in somebody But encouraging that your doing retail established serious If banking, QX really what's choice better that's small you're than business becoming like And that's market. core banking, we is about platform. bank the be would you're or a a have

also of now on several that come in last choice as rate And We're we're completely – strong We've So, the away of we kind any win is element. years can business seeing level RFPs. what we've changed the moved in innovation. for banking. from that's done services we've folks leading the seeing

for to it's platform deployed cloud, we subscription. the lag the a in So, revenue our standard a moved great opportunity There's and it's in as us.

question and look up. have we're time of and will just But some So, till as math had a subscriptions those investors segment that the transitioning concern. some it's Rick analysts some deals, add I to at the know starts winning with that outlined

you space a in one we're seeing to Because the that's other quarter. have the think standpoint. are in So, out I'll is payments, of I I a a this we're say, seeing automate from there XX it's of fabulous believe noise business there's for do ones more I if a and that. step seeing and offerings saying make that to last less then only Paymode-X. that's convincing. What the this there benefit different if entrants other number competitive us. on we're really If and do saying some best organizations, automate we're market, comment and business place area And which the what who's favors deals us to happens the back competitively payments with why

Mayank Tandon

through color. handily to Great. And the first us flowing in quarter Thanks, your question a into was full-year just XQ. why numbers, quick aren't of the helpful for guidance That's for the trying in I on beat quarter Rick, guide. upside very you gave the you Rob. get Rick, a clearly you sense and

Richard Douglas Booth

question, great a That's Mayank.

We key and and and delivering, confidence business got trans we've on areas our and subs strategy profitability. have history revenue solid in of high a the of especially models

annual in year, $XX advance FX. guide QX, XX% million, the and another to quarter changes we versus periods two continue don't update prior immaterial up each EBITDA for at so. We in strong

Mayank Tandon

there one-timers Were which clean? it. Got all upside the or the may at have in that they're saw, pretty you impacted quarter XQ any in

Robert A. Eberle

today the much model opportunity reaction, create first doesn't my (XX:XX) for an as of upside. Obviously

some legacy services that the big would can in the of – our places larger of, upside for that But anything was engagement a level in customer one-time don't completed. bigger had will that services wasn't there Rick, But occur. I now fourth particular that you'll So, a see we typically see seasonality we quarter where banking you see think event. would be

Richard Douglas Booth

the in line. the down the year-over-year dropping subs that's Now QX correct. it bottom it's revenue I strong there increase and on look driving in and really the I to was, commented that's trans when across growth but just when

Mayank Tandon

Great.

Thanks, Great. guys. Okay.

Operator

Please ahead. next of comes Craig-Hallum. Sutton George the from question Our with line go

Jason Kreyer

Hey, in started guys. to this in on for Jason the that new George. This Rob, on volumes questions. you're address different any is and my you in of couple partnerships, your wondering wondering just coming are over QX those but not Thanks if Paymode-X channel quarters there. taking for terms where all seen changes or from the last you've necessarily of partners but getting here through the

Robert A. Eberle

we're I seeing just with newer of banks. think traction some what is the

So, we well. prior Fifth Bottomline continue as a of quarters. strong to We've of Bank seeing seen partner Bank see we're seen for but principal over America as New York We've Citizens. Mellon Third

So, that channel contributing still course, as of we're seeing the partner. different of our to a having, America mix partners predominant are we're Bank success with of

Jason Kreyer

can all contribution. that's comment Okay you you from of and if Visa pipeline and progressing similarly how any and have just if MasterCard opportunities and for on timeline the at

Robert A. Eberle

I already. say contribution Well, would exists

means virtual I purchase run you're we even don't think important. a being today, won any if It the dual-card that you and your of using is even is reasons one or XX either program capability flexibility. with of portion a vendors vendors, having a card not the we deals card, really card that if pay offer capabilities

joint that last channel effort in a signed absolutely And then, quarter, an about making significant think so, already the having is today. we with actually, Visa. into So, platform partner I built talked impact we a

seeing significant So, we're definitely contribution there. a

Richard Douglas Booth

calling customers. on have we we're and the technical and channel completed partner's interconnection Yeah, already that with system

Jason Kreyer

that one And of were quarter, give go four those first Banking we're One for signed all I Banking me customers any can live? you Digital if wondering on banks guess this last in going X.X. to you the if on Great. the when see then terms updates X.X, Digital

Robert A. Eberle

different have account online opening off – a different couple first like. capabilities, for we what we and first so is, Well, have platforms

So, we we'll customers. have of DB X.X platform. that banking was our an and one new I be with existing any for highlighted The logos that across can for our win whether articulate relationship we did not

when gotten into So, in indicated larger are of terms and have And that The see of see Rick customers out, is, and start we when earlier coming to revenue live growth that's so. that portion that are live question that then banks really live. really live customers that's as we've today, do are see and we more you half of the second in XXXX their a as subscription where revenue. banks play XXXX we'll go-live,

Richard Douglas Booth

that's will the live. largest when Yeah, banks going be

Robert A. Eberle

math it's to XX% XX% and to see the Yes, growth.

we'll that. to achieve through It's the a full got we've transition really of those P&L. the getting and model live confidence So, coming

Jason Kreyer

Great. Thank you.

Operator

And the the in Gary question Barrington with that last go we line have Please from queue Research. Prestopino comes ahead. of

Gary Frank Prestopino

XX share us? Hi. answered, any the the Most trailing a if that Paymode-X change you quarterly volume questions in been of for guys but trying Rick, this think you get... processing annualized was have know I there could with million; quarter $XXX don't but basis, I months, do last just on was to

Robert A. Eberle

Yeah, we...

Gary Frank Prestopino

...an idea of how it's growing.

Robert A. Eberle

that when channel we really basis programs volume and do we'll do and customer on Gary, facing with so is those updates, update so ...we haven't there a today. provide a then been new doing isn't, any periodically quarterly what on it really marketing

Gary Frank Prestopino

a was Digital the be cross-selling that dive give Banking? little Digital May with a details? then bit of Banking, you lot you with could And Okay. that cross-sold products some into and about there us products, maybe deeper so of talked were good

Robert A. Eberle

banking this Sure. live. banks When business we But capabilities to the driving That's principally we're and customers. about we've subscriptions DB their full on coming there's management invested payments talk Digital with whole it's for Banking interfacing X.X. provide of group talking and range and we will the that most that cash with their platform a our be where platform, about

And can It to and strategy have of could more payments on analytics account provided is, provide or ability planned provide but flow cash subscription and in as and model, but full what and look So, online systems, all it's integrated management transaction types, is they simplify to can or out, opening, DB vendors and balance choice, things, the banks to and way thesis vendor the world our type, of be of – their forecasting. provide be our to we ACH that. cash account online can just a of less pieces payment and be those particular also platform we so reporting, or by their also that's can have – wire. unbundle part this to really we a a different provide opening, provide other X.X, payment

So, for fraud, be example, cyber payment that's another web – fraud, and example. would

I what So, activity. by what is drive the cross-sell but give It be just to helps mean ARR, new Street, clear, logos. that's we'll

on, will we've if something we X.X, of DB depending them deal bank thing already not sell we quarter. one new So, it count a even that a as new, could the and a whole in be

Gary Frank Prestopino

paying then, go just my of to the Rick, million down when notes, $XXX as you're converts, you're facility, a take that going draw correct? lastly, you said is the off on I through And about

Richard Douglas Booth

swap, executed for We of the interest a $XXX draw. on fix will years first million four rate the which

Gary Frank Prestopino

Okay.

Richard Douglas Booth

will do rate our floating that will what total We that expect one-third draw is, about give and around debt. be and rate us two-thirds $XXX fixed million,

Gary Frank Prestopino

Okay.

So, you're and going use $XX to draw $XXX million. million of cash

forward? generating the thought just flow, – leverage much that or, cash you're to keep free on balance sheet to So, it is is going that your you're continue so process little flow here cash – since going a

Richard Douglas Booth

Exactly.

Gary Frank Prestopino

Okay.

Richard Douglas Booth

OpEx without for for line accounting. messing the rate our variable up hedge is the to portion a convenient cash trade And us against way

Gary Frank Prestopino

flow lastly, quarter? and the And the flow for cash cash you Okay. then free give did the numbers

Richard Douglas Booth

We had strong cash flow.

tilt always have As toward QX. a seasonal we

Gary Frank Prestopino

Okay.

Richard Douglas Booth

million. So, our flow from operations was cash $X.X

$XXX,XXX. $X.X outflow million. an cash was flow was And financing free Our of

Gary Frank Prestopino

Thank Okay. you.

Operator

queue. in no have further questions we And

Robert A. Eberle

forward you, results Well January. reporting the And everyone. in in QX Thank for in interest to on you thank look we Bottomline. your

Operator

today's Ladies you participation. conference. and Okay. that conclude Thank for gentlemen, does your

may disconnect. You now

Bottomline (EPAY) 2 Nov 172018 Q1 Earnings call transcript