PAYS - Earnings call transcript Q1 2021

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Operator

Hello, and welcome to the PaySign’s First Quarter 2021 Conference Call and Webcast. At this time, all participants are in a listen-only mode. [Operator Instructions] A question-and-answer session will follow the formal presentation.

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 or expectations about the company's business plans, results of operations, the impact of COVID-19, returns on equity, expected gross margins, markets or otherwise make statements about future events. forward-looking. are statements Such can should, by estimates, may, and expects, statements words projects, use such plans as intends, proposals. be forward-looking the identified of forecasts, Such anticipates, believes,

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

consider the any the are Risk cautionary and review urged You in including under to other elsewhere statements and and made heading carefully Factors disclosures, XX-K. statements Form

to This as Forward-looking statements the a EBITDA, the measures speak any forward-looking required an CEO, GAAP document prescribed prepared the with to titled measure presentation similarly Mark not in financial not non-GAAP law. as alternative accordance accordance does call they go only sir. is duty It's is and also companies. Newcomer. turn methodology of contained includes except neither and financial date update in prepared any standardized the be statements on of adjusted ahead, to by are to my that undertake which over now may based company by presented other measures pleasure by to any comparable Please nor in necessarily

Mark Newcomer

Executive you, Financial Chief Chief first Officer joining everyone our and quarter afternoon Thank Kevin. me Jeff am and PaySign's Baker, Newcomer, afternoon joining for us XXXX I for Good thank you Mark earnings is Officer. call. this

This intensified pandemic-related and for quarter of business refunds they added benefit tax stimulus the have plasma first impact typically The the weaker weakness extensions. this unemployment of to due and quarter is was timing the payments to seasonally donations. our due effects a the quarter on

centers as previous XXX. quarter, In to funds centers, and loaded levels new We we a down return quarter. stimulus X.X% plasma plasma Our believe the of from year centers. total packages the ago the first bringing three to consumers from plasma normal that return period these will expire to our and down donations quarter X.X% number onboarded plasma was

four in the space we initial each plans clients. quarter. to plasma in live are They collection growth have plasma with new aggressive entrants Additionally, go and second signed centers new all expected the

plasma remains future the and of optimistic Our in segment's our are clients. increase remain as we center we an strong pipeline builds seeing in existing growth the new plasma from

to a add We of with centers new XXXX plasma exiting expect centers. this XX total at least year XXX

to continue offerings grow. affordability patient Our

pipeline. is from and market We our in are sales product seeing our reflected positive to very related and strategy the feedback that offerings partnership

first launched We underserved a claims-based program We program programs clients. client confidence hybrid and pharmacy teams launched quarter, During developed and and This ability of allowing in for the to the two offerings, our first an from officially of new capture believe services represent client. our revenue additional market. in and a us program to medical build a Patient we operational claims-based and existing sales, reflects voucher an quarter, addition and existing upon trust program. the Affordability claims-based the additional programs medical hybrid portion that pharmacy

continued patient products relationships pleased are development Overall, product the to and needs the the growth we Our with about the growth. focus continued build pipeline vertical. we this continues are unique of accommodate to growing vertical of on services the and excited can affordability

deals see our and this portfolio to patient and sales, account pipeline. industry-leading Affordability in and client PaySign We experience. with traction insights existing our digital services client grow beginning Premier. product quarter bank to clients Patient of additional signed operational to We the have three We're utmost outstanding new retain have the and clients provide by continuing our and an teams confidence in

account-to-account adding our to on the enhance execute transfers. product product by to features continue strategy We

expense product business Additionally, diem, for we signed payments used small to two for purchases. T&E, vendor expense per be our and deals new

for to are it days time us still take will it in to With some a and I'll early other for we of While to it the verticals. that products give expand excited ramp-up, these numbers. into over them Jeff about pass brings our and it to them opportunity breakdown is the interest you

Jeff Baker

$XX,XXX. total was and period $X.X operating Good stimulus $X.X coupled million seasonal other plasma our revenue tax the or afternoon. of revenue million, government given the $XXX,XXX Of accounted was performance in pharma The expectations revenue rebates measures first to and quarter COVID-XX. the with were in line impact with revenues by our of for XX%, revenue weak related driven

Our revenues. reflecting in gross XX.X% the quarter margin a pharma decrease was for

Adjusted We stock-based unfavorably total fully dollar income $XXX,XXX defense by and and metric first that margins gross of million, million in continue quarter as our diluted EBITDA operating quarter action to used diluted absolute adjusted $XX.X amortization revenues gauge pre-COVID EBITDA management expenses business. the negatively of to relating class the to results severance-related despite compensation fully of non-GAAP results share. $X.X $X.XX legal share. operating defined These a XXXX depreciation, $XXX,XXX. compared hold SG&A first we of of by or an or the plus XX.X% expenses, the per amount adjusted to and which EBITDA is performance these came our Including loss at per expenses and impacted $X.XX loss for flat quarter of a fees as a of

gross increased quarter declined versus by year the sequentially but period, volume dollar First X.X%. XX.X% ago

we unchanged versus the the quarter. number the look negatively XXX the cardholder $X,XXX sequential $X,XXX versus at the was volume quarter, the period same as trend versus fees impacted and We the with versus Taking period in average a million behavior same The year end our quarter as in First per plasma a last $X.X experience year. we decrease centers is cardholder year. did a decline our XXX seasonal XX.X% experienced believe this the which of down for revenues declined last during revenue of transactions, conversion were exited million for last We rate same year. the quarter. ago period the purchase QX a closer We of business last plasma previous revenue experienced purchase year. the was center $X.X at from quarter

Turning revenues your of pharma primarily driven million to the in first $X.X estimate termination last XXXX compared XXXX to by decreased in program and accounting $XXX,XXX the change of attention quarter quarter one first business, year the December.

primarily transactions year the many Gross plasma the the the are costs compared third quarter same into and compared as of We for mentioned. to the last in decreased the good same pharma the due new plasma million variable nature. transaction for continue XXXX. the us in period of mandates launch momentum in and Cost year year, to giving in the plasma to reduction win in cost of new programs from fourth expect as revenue to the $X.X business to pharma this million and quarters revenues decreased the decline period associated and of resulting period profit in sales $X.X prior

investments We to increased continue technological the to and year-over-year efficiently in significant support us $XXX,XXX. capabilities to amortization new Thus grow XX.X% to our the business depreciation business needed give prepaid launch and make programs. and

on any forecast, $X.X impacts further exited unrestricted cash million of the health COVID-XX. in Based our capitalized believe quarter zero is from and $X.X we remain ending million balance. the which we and below debt, we to our our weather well December with Regarding company, positioned

attention laid we your our wanted XXXX. the to where thoughts out to I direct press have Lastly, release, for

to million. For the expected by profit or we would first be a results quarter to for early of to unemployment full turn be With in that over like better expenses an to total or we third million the the began could the when scheduled modestly additional moderator $XX impacted quarter X% in that XX% $XX.X full Gross $XX $XX subsidies This $XXX,XXX the basis non-COVID-XX adjusted results are call revenue million points to year XXX million increase million to in business expect the are $X.X growth $XX the to year, of increase X.X%. outlook XXXX. presumes to are plasma margins Q&A. over XX% to estimate to revenue reach September. to than second fourth to quarter, With our end of the XXXX. see XXXX, quarter a I and EBITDA recovery range in $XX.X for slightly that, reflecting we Operating and in million increase expected to are the XX% million an

Operator

Thank question Thalmann. you. first Ladenburg today Hickman [Operator Instructions] Our is from from coming Jon

Your line is now live.

Jon Hickman

Hey. you Thanks for hear Can taking my me? call.

Mark Newcomer

can. We

Jeff Baker

you, hear We Jon.

Jon Hickman

on of something say doing Can COVID. areas was in are you -- the Southeast better you based on some that? doing California business areas or is Like difference noticing the different the comment any I plasma country than cetera? Okay. mainly in et wondering are

Mark Newcomer

really to haven't kind would Well Jon a big this me Mark. would difference stood that seen that to a I be can't impacted I me out boards. say show basis. regional I anything that It the seems across there's -- on of is

Jon Hickman

And main now anything you're different so a seeing outfit Okay. is by it's then months there they're ago? your in competitive owned difference six wise competitor

Mark Newcomer

we're in opportunities not seen additional that also can entrants our And get with But in new there's the outside the us for say additional companies. we've seeing successfully past. we're new seeing it. And those to in We're engaging than more at foot so entrants. about space doors too of I the much

Jon Hickman

Thanks. That’s Okay. it for me.

Operator

Maxim next Our Michael Group. Thank from question Instructions] from you. [Operator coming is Diana

Your live. line is now

Michael Diana

be clear you plasma $XX.X you. and on XXXX Thank Are I XXXX. be XXXX, could Okay. to revenue then your be saying just want for could $XX.X million Jeff, guidance million?

Jeff Baker

that's exactly Yeah, right. Michael

a happened we impacts think second come When quarter fourth impacted So third fourth what's the if look number into we and you be quarter. year, get into to this you'll of you it’s most quarter, should quarter the first quarter, from at COVID. going see the quarter, non-COVID be

you in, normal get quarter had you'll obviously, in centers second the one we COVID. to comps your easier in that industry the And then the -- to listen least have quarter you additional say quarter, -- right at So, had centers, the quarter third And of period. like all and quarter for growth XXXX. any layer say we then that build during of prior first you'll fourth so

Michael Diana

Right.

for And the quarter, the expenses severance lawsuit and you this great. had your continue? did lawsuit Okay, expenses in

Jeff Baker

it's I there the ongoing that -- play, because just that are So and how but that an yeah. say all issue we'll see about about It's depends. in have to When our out. plays we've it, disclosed lawsuits out can filings

Michael Diana

Okay, great. you. Thank

Jeff Baker

All right Michael.

Operator

of Instructions] or to Mark question-and-answer comments. closing further [Operator end the for session. back over floor We turn to like I'd our any reached the

Mark Newcomer

I'd look very team our the the we've in like would much and made we Thank thank like we PaySign and participation our Stay quarter's questions and your earnings safe. to I you dedication interest, their forward to pipeline your continued are a call. next Kevin. your offerings. their growing for reiterate patient affordability Thank to sales call. and strides very you this that all pleased nice with for Have hard work. in evening

Operator

you. conclude and That today's does Thank teleconference webcast.

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

PaySign (PAYS) 12 May 212021 Q1 Earnings call transcript