IIIV - Earnings call transcript Q3 2020

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Operator

Good day, everyone, and welcome to i3 Verticals Third Quarter 2020 Earnings Conference Call. Today's call is being recorded, and a replay will be available starting today through August 18. The number for the replay of (719) 457-0820, and the code is 4401933. The replay may also be accessed for 30 days at the company's website. At this time, for opening remarks, I would like to turn the call over to Scott Meriwether, Chief Operating Officer. sir. ahead, go Please

Scott Meriwether

welcome Verticals. third and call XXXX for iX to morning, quarter the conference Good

financial on financial call a Rick me measure contain each the measure Litigation release. GAAP within also impact Clay non-GAAP To prepared others Joining and find in Securities this information and extent, is Whitson, non-GAAP and our by the individual This of Reform in to yesterday's statements the earnings the call, conference the GAAP. expected accordance to Act calculated our CEO; discussed with operating company's Chairman addition financial in forward-looking Private statements It to among GAAP. the CFO; you non-GAAP that and any pandemic. including not the financial Stanford, the today's COVID-XX expected President. in information by are may as and up, to intent our most financial accordance regarding Greg will This the of to, with measure of set understanding according XXXX statements considered reconciliation directly meaning financial company's is information performance its should comparable enhance reviewing call provide be of of but consolidated prepared potential Daily, in

fact For this deemed be may to historical are purpose, be of any statements statements. statements made that during this not forward-looking call

including discussed by and associated differ may or pandemic. in affected forward-looking filed in operations from statements results You the that the and the forward-looking uncertainties release with statements. Consequently, the the factors materially to are earnings reports among furnished and COVID-XX hereby that cautioned results may set actual SEC company's in be important the others forth these risk are

of and Chairman the the I'll as Greg it today's and under the Daily. shared company as over be no obligation is to update company's may call law. now on this the turn except to undertakes date information required valid Finally, call applicable CEO,

Greg Daily

Scott. of to good you. And morning Thanks, all

of with We rapidly thank our during are all of an pleased our third way. transitioned impact other team the working quarter who each performance our to in new admirable customers arrangements despite COVID-XX. We the supported and and quarter members

market trends reopen encouraged mid-March downward had our and are as payment U.S. quarter, in result, immediate the payment results. shutdowns throughout the begins on by As The to impact volume. in we a our our financial improving government-mandated an volume,

Payment the its and Our to quarter beginning – recovery of lowest And volume throughout payment to is volume of first improve. in quarter throughout improve the – a quarter. August April, payment which began volume hit low the to steady the month. continues our in in July, of continued fourth the point month the remainder first

sector hit. was hardest education Our the

with they we're the schools working most for quarter, transition As the of reopening K-XX shutdown as plans. their customers our

have and preparation. had this launched We've already The quickly our and We school lighter formats. product year. one a our product. volumes with ask in realized and software-based new impact quotes, for engaging product Education school product social would very expect this of parents vertical. are lunch teams is new many and XXX our us districts of these preorder more challenges, how distancing installed quarter will fourth and school already lunch have I'm rallied these team, trend payment product for be positive students for customers online this impacted proud and developed leadership Despite around in by districts they

school sales signed product we highlight significant our in payment quickly be would impacted nimble this to launch. districts in Outside July – significantly to were sales respond third and reduced one government and being August closing success payment our recover, to seen closures new quarantined as the people school the or education, to study and expect case board across Despite shutdown, a due team to and is We've for as commend filings traffic upcoming Case result. as our home. first as tickets great customers’ of improve we districts most had customer Public quarter. and closed. to at team the education our our This of volume education Within the other continues needs installed they vertical, substantially as volume quarter is in One their travel ability year. and biggest expect. customer many education or live, local within were I fell during higher this already offices Our for significant from was new relationship. reduced many court local Sector you filings that – during a education, case early strengths.

local increased relates believe it shutdowns. hard install the In in was We've able will installations future vertical. solutions demand as Merchant third We Sector during seek Public quarter customers Services Sector but our Sector sales, remain formats. the hospitality to third call scheduled seen volume Within governments impact more As SaaS-based we during Public to their we same segment, for and the entire an mandated hit were particular, Public delayed. to accelerate governments were modernize software contactless of business in the to modern to the local constituents pandemic the serve some our vertical online by other experienced industry. seen quarter, due the positive point-of-sale about

strategy. all and Public continue but beginning as wanted within was our our restarted touch one we our We We the was the Merchant signed as I to one briefly during they XXXX I macroeconomic within business monitor acquisition our of leverage year. the solve on M&A fiscal Nonprofit COVID-XX. visibility new had ISV look our quarter our Sector recovery activity. particularly month July, our offering, July. Rick will new Services, On vertical. M&A carried subsequently call, customers. into for We're issues in momentum us, record greater two continued and to overview? other fourth the speak confident financial you and continue noted new and vertical, Our to economic for during in the day-to-day we acquisition at years. environment We're well We'll acquisition a forward by nonprofit would quarter, our expectations. for play within healthcare, Clay, software a better the the and know the June last acquisitions provide new trends into future also We're product encouraged that there outperformed which accounts third a we until growth our and very to momentarily, positioned coming processes fared activity integrated for impact business in in paused closed of

Clay Whitson

three-month third Sure. The for reference for period this to XXXX, following the refer presentation ended pertains of June Please the which XXXX. XX, titled Supplemental our slide is discussion. fiscal the to year Performance website quarter on

revenue a in of We and sequential that X%, June, year-over-year and August another seen XX% increased will with X% of software the adjusted to with segment month-to-month for added significant million $XX.X volume EBITDA some of along week of payment discussion. switch we changes, with a have the the solid we of of the net to first we another Despite quarter trends July to numbers with had But in is May the be July. later When start XX%. then presentation. then month proved $X.X last go and sequential I the comparisons floor payment XX% April. quarter, reported and because revenue environment, first had week challenging decline up the volume million. increasing over

occasion in we environment, these revenue morale because have have results. We record in pivoted COVID-XX more the our and mentioned, And services we month an as results-oriented since QX the payments the had best to cost-cutting environment. business in cushioning decline. evident are resilient the has which and Greg focused software to IPO the We thrive our measures, we and products glad to We revenue entrepreneurial the times. all rose stream than momentum June. suited quickly to our on that it been a sales implemented in organization, We're believe and leaders necessary

we Software complete. XX% services when QX installations as revenues revenues delayed to these closures from and expect recognize installations, QX are still related did but decline government to

revenues the for reflecting stay in not SaaS QX. home business only only net successful million total Pre-IPO, closures QX for X%. the services year, to million, or with. impact orders. closures, revenues IPOS XXXX, transition at to for for fiscal very it XXXX pleased $X.X in million Acquisitions a quarter. of XXXX, prior COVID was When of also million school compared which $X.X to declined $XX.X offering, and we're year our Software QX increase XX% but $XX.X government-mandated California, and an revenues accounted contributed declined XX% reflecting

corporate a income adjusted the revenues XX% for net XXXX XXX reflecting XXXX, as by due points. lower steady was our defined remain impact. These disclosed see a for $X.X cost between to as and together as basis the included yield, low QX million Please QX EBITDA Effective our almost over XX.X% XXXX percentage XXXX. Our expenses quarter. for Adjusted percentage improve release the net cost to of lower revenue previously QX volume, X, EBITDA which expenses net In XXXX, million reconciliation for to $X.X revenues held despite margin at we divided net press declined XXXX, EBITDA. the of QX net we from million – for which revenues savings, Adjusted fixed payment and down a for allowed XX.X% QX furloughs. T&E and expected at revenues from savings, COVID-XX EBITDA net revenues. spread to of instituted steady quarter, absence this with $X impact, net X.X% both QX April saved this COVID-XX terminations cost revenues

since Proprietary earnings Again, quarter. associated as versus XXXX, refer the ongoing XX% completed closures million absence know down at the began to but furloughed Payments QX an reflecting the in benefited employees was In to of currently revenues a from mid-March. full over Schools about revenues declined people. Pro on rebounded, like I We for $X.XX school the base, consolidated XXXX, costs million to lower for want I adjusted expect net net for XX% spread and XXXX, Education because retain for XXXX XXXX, forma QX million EBITDA during XXXX half in as of level. please of Adjusted and pro lot top forma revenues. savings it's per $X.X $XX.X for a shutting description from fixed on revenue QX press business performance. minute Segment were a and a payment were $X.X the have has EBITDA for share three our fiscal Software acquisitions but QX diluted QX recalled basis. flat – year segment, to for diluted a from reconciliation. quarterly XXXX. for roughly release $X of mind reflecting million of XX% percentage for principally QX pause

our payments we June recurring our even software we April cover May which enable the contactless this perspective. year, can always and and operating an preorder a low is offerings in months number that the So quarter, expenses, gotten lunch from and to of summer quick so interactions lost anyway. This because as a for of pivoted environment. we break revenues IDs, have which We've apps sort is current such accomplishment. software digital

$XX March, year, an learning processing that. U.S. to revenues across payments' so grow persist our remote Even zero. if months. for than little represented sizing we our represented a ended education, pre-COVID, the not in less including quarter where SchoolPay the decided four margin might all education entire software even optimistic go XX our XX% remote we're about From a for perspective, districts in districts on learning in quarters September payment a can many would revenues full of continue the from revenues for So for environment million The to

well it believe as of variability Regardless long-term. and Our year semester keeps guess the perform on for news normal up we basis. very XX% the how see that current love this and school might but is medium the there's best the clearly and over we fall the vertical down, semester, a unfold, payments to will of daily extra both and changing this number,

vertical all the for Sector revenues Given state quarters Public of the segment. virtually the over net of the our and the three the education in profit quarter, of June in segment represented

and long-term. software While we close, vertical's over confident million million for some remain declined our in XX% down installations and tickets $XX.X were performance for to for were near-term revenues courts $XX.X QX Services segment XXXX. did the XXXX pushed, QX the from traffic Net Merchant

XX% $XXX,XXX $X.X was segment for Services period. model, for SaaS million with to Pace to year Merchant June the exposure good well vendors up reflecting our million in to The XXXX Our QX QX sector sheet margin versus smaller over the The with a from to from XXXX. works software months and a XX% mainly for spread Hospitality vertical XXXX. environment. the utilities, COVID-XX million public in again, $X.X portfolios the versus for transition we base. XX% QX for QX cost held QX strong. benefited to XXXX prior hit fixed of for XXXX QX EBITDA with balance but declined was three EBITDA which California remains Pace hardest Adjusted $X.X acquisition The declined XXXX, XX% have purchased revenue exposure just for from the

which our convertible helped positive dollar, produced debt at the leverage our we During of opportunity in and actually the $X.XX took net our the repurchase because reduction balance. to a of the million IRR on notes roughly $X quarter, approximately

XX, June facility. of borrowed only million under which we $XXX our $XX a As is had revolver, million

Our convertible the was which while X.Xx, ratio, current is total leverage X.Xx. notes, includes constraint the

be X X.Xx. historical multiple The notes range the our Xx Over pandemic flow, currently we acquisitions is to pay the ending With created or of repayment. two are the interest to and EBITDA. for acquisitions which pro July than convertible significant of in revolver either September impact used providing results has was EBITDA debt rate for this for not closed future COVID-XX uncertainty XXXX. less with XXx two at COVID-XX into difficult roughly The the million, reasonably X%. our ratio consistent forma for which estimate leverage rate while $XX.X interest time, fiscal the our will to XX, free economy extent total The was company's two-thirds these the for Therefore, company the convert X%, acquisitions the on expect Outlook. financial is the to is time. outlook year for cash can a

XX%; While plan we EBITDA margin net BXB, of Sector, over Public in levels to it we run these the mark a currently rates, Education we the XX% X%; will following mix, September not expect Nonprofit, estimates Education, XX%; ongoing QX QX, represent will and which We over and of improvement QX on the To we XX%; XXXX. only do Retail, percentage next XX%; last and business XX%. an in recovery, we anticipate an do this saw our not in ending EBITDA pre-COVID approach quarter, update revenues, state of few particularly give better consider our diversification, represent Hospitality like which basis. gave will progress. currently we economic vertical, Healthcare, Other govern XX%; pandemic book. XX%; Hospitality, Retail, the The or understanding the the of toughest years, verticals our

time. Digitization Our has our a out software that and grow will platform away we our and I over nonprofit grown have solutions largest during there. and cash cheque and payments Sector, go and in increasingly providers. will essential just activity. We other the feel customers, offer of software positioned leading service vertical over integrated is and to a for to turn will not Public from payment do now Rick M&A continue, updates company differentiated the to software well pandemic. niche governments, of we Healthcare is an schools business. BXB Like acquired

Rick Stanford

you, Thank Clay. everyone. Good morning,

highlight I operational recent a matters, our progress I in calls. of on updates on talk about discussed M&A prior I've couple want including few Before status, items to a

our offering, First, Public I've or before. Sector that topic unified UPO, a product an update on vertical, in discussed our

vertical, of since our and especially growth number we've added the in efforts the UPO important. that of are Public our IPO products verticals our Given that Sector

out to to or courts, We collections, consists finance, government billing of for goal criminal, comprehensive systems tax, offering current make list, case a reporting is this these This licensing name Our to strategic management also few. would and would payments, shop I products to like public property to a these to each law our processing enforcement products includes specifically one-stop and prison to county available and acquisition. and city. accounting small and claims like a payment suite acquire add of and want e-billing and jail that to mobile a for and through permitting is with fund become The reconciliation. and management civil GFA, plan e-ticketing, we safety, point utility customers.

opportunities We are successes. for pipeline XXX momentum encouraged UPO and strong. with is Cross-selling early UPO current is our gaining over

ISV Second, front. on the

of three signed the ISVs process integrated the at third with of fiscal XX, number end Our in is total integration. quarter of more and our

expect number a ISV We integrate of we those over a months. and of sign ISVs, opportunities are in with the contact and coming portion to good close

while in-house fill particular original often needs also we acquisition, acquire team software select verticals. an that we in Third, mature have own via our to develops products

It's assist very generating We in proprietary our many development their tool team another and efficient Donate getting its of released our bank, work customers white-label and of of product outside towards services. of iX branded DDA with and banking product allows channels. customers, avenue solutions them product to to released online a in who to to offer is their and our this partner was built for original have nonprofit one wanted for product This bank an giving. our quick down heads just standard exciting by a an steady suite. partners We're requested product This proud timely a product called revenue new use their fashion. for add that within

we efforts. our our comments COVID the healthy. is have and sellers, Despite few continued interested identify pipeline to M&A downturn, a Lastly, about very

care sector with public some in. with Our pipeline is and on education, health populated emphasis mixed an nonprofit

regular acquisition term that we activity reaction downturn. on COVID the two temporarily suspended restarted last Since sheets targets. closed signed in we these We have those of are deals. explained with several have discussions time, our and those the been We activities, call, recently that mentioned but to in

was a of footprint company claims active with ordinance, and year-old other and Public infractions not XX permitting consisting before. access. case licensing, and The geographically such a space web-enabled This been traffic in our sells and Sector first small courts, all for parking, gives and systems civil data where solution, we product good us combined as management had criminal, violations

several software acquisition to for organization markets. in began is we've in acquiring attractive at space parishioners. The in second high-growth of of donations, many the been This acquisition their looked updates, call Nonprofit potential reminders, Many deals. businesses know, different with in sector. mission of strategy vertical vertical all and fits and church appeals the – offering new tax, our M&A several some you products large own event margins this recurring in have the trying with This give include ability XXXX, tiding to funds setup for to different connectivity products giving trip via years for

enhancing talented believe team, from and capabilities. payment of software of strongly this cutting-edge This in within targeted extremely in segments. methodologies also solutions communication two with overall legacy solution many to product positioning verticals embedded lead further payment our the used We to goals can people our other acquisitions delivers us adding payment shift our future. our already vertical mobile software These to the and be market suite to near

the range. the This concludes Clay look within near time, sharing for future. our more As comments, Q&A. forward both front our be on completed multiple we were and continue before, to We Audra. open my the in disciplined mentioned this acquisition At call approach we'll standard acquisitions to in

Operator

of first Instructions] John We'll [Operator go James. you. Davis Thank Raymond to

John Davis

guys. morning good Hey,

quarter, I volumes sense But Greg, quarter-to-date – tracking in are on Clay revenue was volumes. down, close? relatively is revenue XX%, appreciate think I think XX%. the So the down that and the disclosure any on

just I And is that's reason if kind volume can what of be think helpful. then give that quarter-to-date, a any year-over-year would on So you changed? us basis

Clay Whitson

Schools revenue help quarter Well, constant XXX remain that. the do our margin during net basis on the volume, at yield points. did the

is do, revenue in percentage. down back still. net see. on our on schools a I depending have guess wait But where we're volume the gaining could negative recovery we're but in small lost we Year-over-year, we'll that So I still have exact what don't QX, altitude the yield, a in impact mode and April.

John Davis

I schools But think a headwind. mean, were I Okay.

of volume would little And in deviate talk is no maybe if be of revenue – growth. a entities I should points Greg, seen comment. Sector, or know you some then, COVID it a woken or think an off a I more maybe color a materially, – have help reason couple should that more from just very about you software to payments I helpful. increase there bit digitalizing be but interest examples, into So wanted it in – – think perspective, the mentioned perspective. There's any you've helpful. that's up and Any also be was don't interesting finally Public has – I that government would demand

Greg Daily

you jump to Rick, want in?

Rick Stanford

a Yes, great John, question. that's

SaaS We are a people online. seeing moving more model to

mentioned of that opportunity Clay To that's they point. products. type are being courts documents to this some moving that about the attorneys think I each the of think with to pass and pushed extent our the given outside we're court everybody to to other and seeing installations desire, online able implementation agreements our come and to people at even online of that the

going forward not see changing. we and So that

John Davis

what perspective. quantification mean, for were one delayed then delay away. And of I mean a any of type from doesn't on Clay, implementations me. obviously, a it's some going last Okay. the revenue

helpful. to you. just about be headwind So Thank was range that quarter, just a think even would what trying the in

Clay Whitson

one number, at were it'd we an exact job that but… company-wide, know to we push, company, north had look one don't of I $XXX,XXX be I particular so if have

John Davis

right, Okay. thanks helpful. All guys. That’s

Greg Daily

you. Thank

Operator

We'll move next at Bank America. to Kupferberg Jason of

Unidentified Analyst

on. have You and Kathy Jason

EBITDA two contribution signed. you acquisitions that the guys and So recent the first ask from just to about wanted revenue most

Greg Daily

our multiple times times. we've to to X been purchase XX has give practice Kathy, the that's – and

software maybe million can So million $X $X.X off And to EBITDA you that. of surmise the margin two. could in use standard of estimate you to between that from our revenues

Unidentified Analyst

wanted to give they of guys ask, versus I growing volumes sort much it, And transactions? of an that’s Thanks. total Got update of All this us can represent? helpful. just sort And fast card-not-present present? how how And secondly, on is you right. card

Greg Daily

our Card-not-present to online. over we transactions, the declined give. revenues that integration it's And increasing, we time, corresponded a School expect But it XX% time, the bit absence of the this is variable of quarter to little in and are is percent that closely XX% in short term. with over a over schools increase pretty school.

Unidentified Analyst

Got it. Thanks for for questions. thanks – my taking the

Greg Daily

You’re welcome. Thank you.

Operator

next Heckmann go We'll Peter D.A. at Davidson. to

Peter Heckmann

Okay.

Clay, follow-up. July, you just a volumes an on if pull planned volumes as had idea the said, but year-over-year weeks August for Can Just said – the well? were and didn't together, I that we're the give a up first standing had of where basis. of about sequentially, good hear X% us you to maybe a you

Clay Whitson

you the – yes. first X%, number? down July week have down from And the believe was exact August I is year. for also X%, do previous

Peter Heckmann

Got it.

players about I pre Okay, just in you are play vertical, about that’s that X%. it that Or fragmented? you guess besides other the as would large think helpful. characterize as Nonprofit, pretty primarily when really is And then COVID that that there within vertical?

Greg Daily

There's there's a and donate, players I actually sermons, smaller they've and year-over-year. screen excited large donations of to weren't sermon are – offering gather their can the posting then used the text the at both, actually gone online where plate. And and ads lot in they're throughout and people earlier. bottom it's to cheques Churches up cash We allowed putting and the that mentioned players. this Well, people were Peter. of were acquisition some to a

vertical. that we're if question. So I know answered excited I your don't about

Peter Heckmann

guess helpful. but in assuming point, I comment it's That’s that just terms population of seen then is had And K-XX that this you the XX% of I any around fourth the about of would quarter? that. thinking haven't the characterize, – is you kind numbers, about you've education, given the I aggregated how of some kind you're made at was thoughts virtual,

Greg Daily

of whether not but of collect that's – all XX%, registration, things, remote. in-person. of We versus number for not schools for fees students, are say types in-person a did the We number remote still or

about estimating probably it's percentage XX%. So what are today. we'll normal we're lower in XX% person our a that garner given know than revenues of we But

Peter Heckmann

That’s Got helpful, you All right. much. it. Thanks I’m clarified. glad

Operator

KeyBanc. to Josh Beck go next at We'll

Josh Beck

Yes, thank you for taking the question.

So of of sounds Education encouraging wanted follow-up that bit the on elements yes, leading a realizing the Public as of the well about maybe like you're earlier question changes to sector, and within the these John's of there in some seeing maybe maybe is certainly about I processes. digitizing Sector. people little indicators some importance It some

So your on I'm of sectors wondering, change look it at when happened months, have some that those want strategy where of high-level last you the changes you just the focus them. to everything in more? does shifted focus I'm if already in Obviously, are you're types quite the notable strategic because of just if But months, wondering it's in last focused any on happened that's way. those

Greg Daily

we believe speaks our like software Well, this why revenues the it much. so can increase fact even And software we in we to revenues. environment clearly that we like

time. We have pretty business They quick in the they've customers. a pretty pivot, for – our been to a long is I would team say, the know long,

this things pull trigger. environment things. need they has before for And the of for customers pull Our – to years want catalyst trigger a the they some actually these been sometimes on

the ready were products using to go environment we So been have take to they anyway, just plunge. is the – to good with that get a them for should make but years this

Josh Beck

kind Okay, hear, new that’s and record And maybe think sales. on I Greg it of helpful. was the Rick commented both to interesting

working are such. and home given impressive, lots – your and pretty particularly I that virtually probably folks mean of So from it's

So to these a being it kind things you bit that like mentioned, activity drove maybe they or just would what maybe of inbound some more just Clay, curious maybe adopt maybe to. intended was about if that, people be just more a had lot of just rapid

hear some there would drivers the Just to love of what were.

Greg Daily

reasons. multiple there's Well,

larger I have very been came and we level think to taken to is us very have they our effective, and where to compared lot it new department that. a marketing active a when

to up having and do – lot when goals, payments that a we're of for So contest. best Sector having company, software or then attend, couple production ago, this Merchant years having our may go people of XX at of show that ever this And be of one now production salespeople comes it new normally started more crushing leads. Public hundreds given the month to When out things the – online. Education, from of a and we and unbelievable are looking we're people technology eight now. are pandemic thinking the it's webinar, it happened journey years convergence it whole case seven we've record our sales, we a best

So and contactless, time coming an quite and of updating, is incredible that's they've amount on increase had and that's people that went work from. software it. I now into just and technology day, getting are And the people pandemic, not We what modern where – think to priority. every was still working new there's payments maybe their this of technology, business

Josh Beck

Okay. Really And then on question, just last of helpful. trend. kind quarter-to-date just

I we But certainly a happen so Clay, a more on in year-over-year clarify, – bit said, certainly, to what Education could And through believe, you and about then basis. just go a there's down the you likely a there. as material through headwind So fall. basically talk X% quarter-to-date very

be certain any of the and maybe seasonality second businesses models, August should you performance? So could of build factors, other quarter-to-date we our thinking as we about versus when that the be about that September half out maybe different think

Clay Whitson

think really that. than anything I can't other of

Greg Daily

I mean, I Well, think…

Clay Whitson

back. recalled costs furlough. We've off that a mention I coming did are some

your build I So think. you that could into model,

Josh Beck

Thanks Really appreciate it. everyone. sense. makes That Okay.

Greg Daily

Josh. Thanks,

Operator

to Cowen. George go [Operator Mihalos Instructions] We'll at next

George Mihalos

education pick guys I nice talked guys, thinking Wanted of you sort on first competitive congrats about you on you're landscape to for deal, your to Hey than quarter different one-off? think, ever higher you? side. off the about the opportunity as And And for the Education start sales being move are Is [Technical Greg, winning on what the for and seeing? that is curious, an I'm that that was – Difficulty] momentum. used

Greg Daily

It household five that a coming is a Yes. name, It's maybe the a opportunity. very year. major huge different. have six or is university we It's in

large exciting, but a but pivot We're in whereas win. last we seeing not K-XX, of a It's it's up this big it we're New it's they not and and different higher the accustomed ones to And it's next a new, month. But plan kind was something animal. education, two because $XX,XXX volume, volume let our higher other small success it's you not brought add, we'll magnitude, we in RFP. whole XXXs, weeks. – to not ed. average try that to large just ticket, duplicate thinking that $XX,XXX something or we do we know our smaller is it one It's this – the take university do from may that schools But quarter. K-XX it a

George Mihalos

number That’s in Clay, August September? month. August that in helpful. X% to And the August? start about it a latter Okay. than schools part then, your assume Is of being fair the degradation some beginning of that around right be play to to volumes part in obviously go as here at we Just that comment down later there'll assuming the bigger

Clay Whitson

volume school it's margin, But is small small. fair. but guess It's very I that's volume. high

it XXX%, that. So don't feel XX% from we going much, think to tilt the I it will volume of but – revenues will

George Mihalos

one me Okay. deals. last some these to you on for guys good the M&A And pipeline, just of it's converting are see and

again. now and X the a congrats right in the cause pro X.X that your about forma activity a times, near-term? will leverage Thanks of bit pause over times, With guys

Clay Whitson

Thank of a George, what That you X/XX that, for would moved our to most I ratio see, did million. we as of you. say I are two turn. the small, $XX is deals guess Well, leverage

going And to do our manage close pause. X to do times. our to want not deals. so ratio we're way We to leverage find a We'll

think to find So But to that, acceptable do continue best we're to it. deals. and the way our do is a we going to do Board way that's to we'll

Operator

time, this remarks. I'll And no at back have turn over we further questions. to closing for Greg Daily conference the

Greg Daily

everybody, again, for thanks Well, attending.

report will on out once our that. products which We and and very next that very schools, is we're and a there soon seeing we this And the days figure relationships optimistic, But positive software. about I time of out of daily a taking bullish our trends the basis. on team opportunity and improve are think you to give get the literally advantage we XX

thank you. So anyway,

Operator

conclude you your Again, for that does thank participation. conference. And today's

i3 Verticals (IIIV) 11 Aug 202020 Q3 Earnings call transcript