PAYS - Earnings call transcript Q1 2019

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Operator

Welcome to the PaySign, Inc.

First Quarter 2019 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. This presentation may include forward looking statements to the extent that the information presented in this presentation discusses financial projections, information and expectations about the company's business plans, results of operations, returns on equity, markets, or otherwise make statements about future events. looking. forward are statements Such Such forward of believes, by use be projects, statements such as can proposes. words or anticipates, expects, identified should, forecast, the plans looking may, estimates, intend,

statements. based expectations company the these statements such there and of believes from a the uncertainties cause looking on Although to reflected that differ assumptions, reasonable materially could that forward in looking number risks are are actual forward results

including the You our to disclosures statements review and risk consider heading and XXXX in cautionary made are any statements factors, urged carefully XXK. elsewhere the under other and Form

EBITDA looking the any may in the document Forward looking to only speak contained, does required company statements forward as as duty date of and except are they of update the undertake not any which generally statements also non-GAAP measures GAAP. not accounting adjusted an law. is that with U.S. presentation financial alternative in to measure with accepted by prepared accordance This financial accordance prepared principles, in nor and includes

EBITDA It's on comparable to not adjusted your Please necessarily measures by presented go for In based titled CEO pleasure not ahead, methodology companies. to Newcomer, other any prescribed GAAP host, introduce is similarly addition, PaySign. is my by and Mark sir. standardized

Mark Newcomer

for of Kevin. a brief you overview I'd Good of you, call. first Incorporated. the will the our remainder provide On Chief touch PaySign the I outlook highlights behalf quarter, and afternoon, reinforce year. our Executive everyone. of to Newcomer, Thank of welcome first Mark like PaySign, on to I'm for earnings quarter Officer strategy the at some

results us field Officer, over through Chief we will questions. take then Mark to I'll following remarks, it review turn Financial my our March Following the first quarter your Attinger to

key differentiators company stock are April XX, client and more integrated Inc. you became government about XPEA our most be grow enable programs innovative technologically. began the retain branded Also, up trading to history with under PaySign, I'm to identity, of you ticker secure and our business. payment founded our developed and ability and corporate, to and solutions. for ticker both and and briefly better are cards and align new our of programs. we new company and PaySign company customized review that our website provider. name symbol our consumer learn a processor company to may our provide company vertically These a section our payment is PaySign our of you pleased very our payment prepaid International, support solutions corporate visit Effective was at direction results aware change. PAYS. company, both card Overall, effectively prepaid existing reflects we manager as and I'm To following a of new program recent financial investor Some in Inc. XXXX. chosen sure and was our presentation, solution symbol and and the to execute investor us prepaid to vision want recent virtual the continued our new PaySign better operationally of NASDAQ The the that with all the name services our may in www.paysign.com.

our convey better offerings. PaySign commercial proposition clearly our name the to in brand consumer the value us of Additionally, enables card both prepaid and

increase over XXX% in and an year. XXX% a Turning year X.X million, revenues Net X.X increase of prior very compared was summary were results, EBITDA was income quarter first the record to year. an of to strong X.X XX% our adjusted million, million, up

pharmaceutical in experience clients to excellent continue We added existing programs, from the industry. are and our now growth newly growth seeing in

during will million year and programs, prepaid focus to adjusted of XX call, our million and I unchanged. EBITDA XX of we million kept our diversify our and broaden continue growth and We market stated guidance card expect XX revenues to full to seek to will previous to new of XX on introduce our Strategically, have strong as continue million products.

which in expected We continue PaySign QX. the prepare of to for our premier is launch card

preempt new the on nothing to the report product. front question, there to Just is M&A

pursue to As growth that shared we profitability. have have and innovation time, culture the this take to reputations, At I previously, to us turn like corporate continue standing have acquisition it to candidates of demonstrated numbers. through long and I'd over Mark

Mark Attinger

you, Thank Mark. Excellent.

commentary. to us first comments through quarter pertaining the Mark's to provide I'll So line variants I'll add and top numbers take some XXXX. then

unless any first quarter to reference or the pertains to begin otherwise, I stated Before specifically XXXX. of XXXX prior year

the in increase primarily salaries second in half on-boarded growth million XXX,XXX and profit clients based The new or gross and XXXX. to the half of in personnel XXXX. of of revenues growth X.X X.X of basis quarter the higher operating the million, ended of is pharma second X.XXXXXX million X.XXXXXX better and compared percent and revenue stock This from for in primarily new new consists industries in year a in attributable XXXX to improved increase and prior Total XX.X% of business. compensation, revenue both X.X driven incremental were XX.X% increase million resulted to primarily revenues, XX% client XXXX XX, XXX,XXX expenses compared expectations. increase than from XXXX. point million mix by an of XXX was in The March benefits improvement million. continued contributed So non-pharma and in the pharm to compared Gross margin to early investments the to our X.X XX%

to or However, are as fourth X.X%, to just quarter we leverage XXXX. operating as expected, see beginning improved SG&A compared increased XXX,XXX

interest you from the did be of excess end, year call recall an expect for recently income higher the XXX,XXX full do we for As balances. resulting to we year may cash earnings from

XX.X% And basic an share million both year. was to was card prior margin QX XXX,XXX was $X.XX EBITDA versus improved For versus diluted of $X.XX $X.XX per the was XXX non-GAAP XXX, Furthermore, $XXX, XXX.X% in adjusted nicely increase million $XXX, prior the basis the to of $XXX,XXX an fully quarter, year. the an XXXX, were in prior compared EPS XXX.X% increase prior $X.XX from XXX versus adjusted loaded from million the consolidated and Net to X.XXXXXX the quarter, first benefiting interest compared XXXX. year. that's year. cash, income of the just XX.X% in dollars, to XX.X Non-GAAP the the compared points million, XXX just increase year. for XXX We to EBITDA the XX,XXX of prior income earnings in and in

capital, year. was sheet increased perspective XX.X growth Our billings less increase X.XX% partially just restricted million XXX to from XX.X compared current current three liabilities and higher a X.X XX% XXX X.X the at in the million due a consolidated year-end from bps liability. revenue million of or year previously to to cash or Working versus offset points for increased From an dollar in or balance volume reflected months AR cash at client conversion on to rate million increase funding quarter the prior smaller assets cards end. by X.XX% for increased million loaded XX.X basis card

and the the both debt cardholder by XX.X, restricted from from was Our cash liquidity sheet. balance and funds measured an no current at ratio, on sheet up finally, balance respectively, year-end of X.X adjusted sides excluding remains there as

no to plan. execute as forward, guidance against there continue changes this are we mentioned, to our our Mark as operating Looking at time

margins and higher gross EBITDA to operating see in margins. adjusted and expect improved leverage, net We resulting

I this turn over to think the moderator that's session. you. back question it now. to it for Kevin answer At I'll Thank begin the and time,

Operator

[Operator Instructions].

Austin Genuity. Our from first Canaccord question from today Moldow is coming

line now is live. Your

Austin Moldow

revenue. ask about to I wanted

much this accelerated growth quarter on to how revenue So XXXX that give from can wondering contributed I'm if pharm acceleration? the you business some color QX,

Mark Newcomer

it basis that on of will We won't and our probably on full year for year quarter, a close it XX% did represent isolate about to do we guidance a full specific expect revenue. pharma contribute XX%

Austin Moldow

that are also I about where vary this leverage. you And What expense areas to primary guide will that investing year? currently ask might margin the in from where into? see be wanted you're maybe you

Mark Newcomer

Yes, question. it's good

the a touched make in we and call. We technology. little on bit do on investments software prior and So, this

million asset well would X.X we for side, the roughly the X.XX investments on both as our fixed expect So year. the million asset intangible to as be

you'll last from did if see operating revenues, percentage EBITDA will representing than net margins. smaller a higher rate an of at slower you standpoint, a generating therefore of expense and and it course growing year So that

Austin Moldow

And my last question is plasma business. on the

for is in So market that said XX% think share your you plasma end might Any update of to I now be at it think you XXXX. or where the XXXX?

Mark Newcomer

one we and don't question good Yes, quote generally specific. that

expand as well a it's that. know, continues and to about year the documented, growing at market we XX% we are than faster per at rate and plasma As

full don't year bit up So imply market little that a we're of picking forecast does end. perceptible specific share but we a

Operator

Partners. is today from coming question from next Gibson William Capital Roth Our

live. now is line Your

William Gibson

premier different have? mentioned that what already you this about Mark, versus quarter. believe introducing I a What's you card

Mark Newcomer

the more of are that type card about account. Typically, in offer our a more corporate different premier we card cards. it's of little distribution is cards a the cards bit Basically, currently that service full account, what debit general spend general

out spend and are bill features traditionally there net direct offer see that the and several will capture, it what you offer pay, would under deposit offer will So dot deposit you remote offerings. you green offer with more other in-line

Operator

no to comments. the or any [Operator like for to this questions management back Instructions]. there further at I'd are floor If further over time, turn closing

Mark Newcomer

Yes.

and of growing for results. very We're the top the line better. opportunity on you appreciate we've and So execution listening. very strong much what we really guided a on thank We to or delivering focused quarter convey

Mark Attinger

Thanks, it. everyone. Appreciate

Operator

That conclude does Thank you. today's teleconference.

disconnect you day. your You line have a time today. thank We and at this wonderful for participation your may

PaySign (PAYS) 12 May 192019 Q1 Earnings call transcript