Investor Presentation Q

Transcription

1 Investor Presentation Q

2 Safe Harbor Statement Forward Looking Statements This presentation includes forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of JetPay s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as expect, estimate, project, budget, forecast, anticipate, intend, plan, may, will, could, should, believes, predicts, potential, continue, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside JetPay s control and are difficult to predict. Factors that may cause such differences include, but are not limited to, those described under the heading Risk Factors in the Company s Annual Report filed with the Securities and Exchange Commission ( SEC ) on Form 10-K for the fiscal year ended December 31, 2016, the Company s Quarterly Reports on Forms 10-Q and the Company s Current Reports on Form 8-K. Additional information concerning these and other risk factors is contained in JetPay s most recent filings with the SEC. All subsequent written and oral forward-looking statements concerning JetPay or other matters and attributable to JetPay or any person acting on its behalf, are expressly qualified in their entirety by the cautionary statements above. JetPay cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. JetPay does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. 2

3 About JetPay JetPay is a fast growing provider of electronic payment processing and human capital management solutions. 235 Full Time Employees Offices in Pennsylvania, Texas and Florida. Serv ing clients across the US and Canada. HR & Payroll 4 Million $ 4.3 Billion Payroll Checks Processed in 2016 Payments Card Volume Processed in 2016 Consolidated $ 56.3 Million $ 37.7 Million Revenue FY 2016 Revenue 1H

4 About JetPay Revenue Trend HR & Payroll $15.6 Million Revenue FY 2016 Payments $40.7 Million Revenue FY Year CAGR % 2-Year CAGR % * Projected 3 Year CAGR $56.3 M 31.1 % Consolidated $56.3 Million Revenue FY Year CAGR % $33.4 M 41% 59% $43.3 M 34% 66% 27% 73% $37.7 M 22% 78% H 2017 * Projected 3-Year CAGR based on 1H 2017 actual and estimated 2H

5 About JetPay Acquisition Timeline 2014 Acquisition expands Financial Institutions, ISOs and VARs 2017 Additional long term contract based on previous acquisitions 2012 Acquisition of HR & Payroll and Payments Services Companies Acquisition expanding into Government and Utilities 5

6 About JetPay Payments HR & Payroll Our People End-to-End Payment Processing Platform Full Suite Human Capital Management Proven Leadership Team Online, Recurring, Virtual Terminal Managed payment processing Settlement of Funds Transaction Reporting & Analysis Security and Fraud Services Comprehensive Solutions Set Custom and API Integration Omni-Channel Acceptance Payroll & Tax Filing Workforce Today HCM Application Tracking & Hiring Onboarding Time & Attendance ACA & Benefits Compliance & Recordkeeping Diane (Vogt) Faro CEO Michael Collester COO Gregory Krzemien CFO Peter Davidson Vice Chairman John Crouch CIO Michael Pires President HR & Payroll Michelle Jenkins CMO 6

7 Historical Performance Payments and HR & Payroll 7

8 Segment Performance Payments 1H 2017 Revenue by Channel 45% 38% 17% Financial Institutions - $5.1 Million HR & Payroll 1H 2017 Revenue by Product 57% 31% 12% Direct Integration - $13.0 Million Government / Utilities - $11.2 Million WebPay - $4.7 Million Tax Filing & Other - $2.7 Million Workforce Today - $1.0 Million 8

9 Payments Performance. Strong Business Model Industry 7.4% Card Payments Growth JetPay 30% Growth last Two Years JetPay 58% Growth in 1H 2017 Flexible and Stable Independent processing platform allows flexibility % uptime over last five years Significant Unused Processing Capacity Sustainable and Predictable Long term contracts Retained customer base Recurring Fees 9 Integrations

10 Payments Performance Year Over Year Revenue Growth $40.7 Million $28.6 Million $29.3 Million $19.7 Million FY 2014 FY 2015 FY H

11 Payments Competitive Advantage Integrated and ecommerce ISV payment solutions PayFac and API Integrations Customized direct integration expertise Integrated and ecommerce Gateway technology with expanded capabilities Proprietary technology platforms Government and Utility Experienced in Government and Utility sectors Omnichannel solutions phone, online, mobile and POS Government and Utility Integrations with core government and utility platforms Proven strategy building relationship synergies Chicago Lighthouse and Alphapointe - Missouri 11

12 HR & Payroll Performance Strong Business Model $5.2 Billion volume in Million payroll checks in Workforce Today offers large market opportunities Sales pipeline increased with payment clients Flexibility and Capacity Proprietary platform allows for flexibility Leverage tax filing services for client growth Significant unused processing capacity Predictable Recurring revenue base Ability to cross sell add-on products Long term customer relationships 12

13 HR & Payroll Performance Year Over Year Revenue Growth $14.7 Million $15.6 Million $13.7 Million $8.4 Million FY 2014 FY 2015 FY H

14 HR & Payroll Competitive Advantage White Glove Service Human Capital Management White Glove Service 1 to 1 service model Account Management Relationship Managers dedicated to education Strong organic growth for HCM revenues within existing clients Flexible solutions for small and mid-sized businesses Ability to scale as businesses grow Solutions for Hire to Retire Full suite of HCM solutions attracting a higher end larger client Workforce Today is a single database, cloud-based platform Sales team with track record and expertise to secure larger businesses Large sales pipeline - 80% of companies outsourcing payroll and tax filing Cross sell opportunities with Payment Services client base 14

15 Financials 15

16 Key Facts Share Statistics Publically Traded JTPY Price $ Week High / Low $ 3.19 $ Month Avg. Daily Volume 9,420 * Shares Outstanding 15.6 Million Fully Diluted Shares 33.6 Million * Market Capitalization $ 67.2 Million * Enterprise Value $ 74.9 Million * *As of close date of 08/31/2017. Excludes UPO available to Early Bird Capital and Stock Options Based on Fully Diluted shares. Excludes accretion of Preferred Stock 16

17 Key Facts Capital Structure June 30, 2017 $ 8.7 Million * Shareholder Equity $ 8.5 Million Cash $ 62.8 Million Total Equity $ 16.3 Million Long Term Debt $ 54.1 Million Redeemable Conv ertible Preferred * Includes $3.5 Million of Common stock, subject to possible redemption 17

18 Quarterly EBITDA & Adjusted EBITDA $1.7 M $1.1 M $0.9 M $0.8 M $1.2 M $1.4 M $1.1 M Quarterly EBITDA $0.4 M $0.6 M $0.5 M Adjusted EBITDA Mar 2016 Jun 2016 Sept 2016 Dec 2016 Mar 2017 Jun 2017 Non-GAAP Financial Measures These comments include a discussion of non-gaap financial measures as defined in Regulation G of the Securities and Exchange Act of 1934, as amended. We report our financial results in compliance with GAAP, but believe that also discussing non-gaap measures provides investors with financial measures it uses in the management of our business. This presentation includes EBITDA and pro forma EBITDA measurements. We define EBITDA as operating income (loss), before interest, taxes, depreciation, amortization of intangibles, and non-cash changes in the fair value of contingent consideration liability. We define pro forma EBITDA as EBITDA, as defined above, plus certain non-recurring items, including certain legal and professional costs for nonrepetitive matters, legal settlement costs, non-cash stock option costs, and non-cash losses on the disposal of fixed assets. These measures may not be comparable to similarly titled measures reported by other companies. Management uses EBITDA and pro forma EBITDA as indicators of the Company s operating performance and ability to fund acquisitions, capital expenditures and other inv estments and, in the absence of refinancing options, to repay debt obligations. Management believ es EBITDA and pro forma EBITDA are helpful to investors in evaluating the Company s operating performance because non-cash costs and other items that management believes are not indicative of its results of operations are excluded. EBITDA and pro forma EBITDA are supplemental non-gaap measures and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP such as net income or income from operations. Non-GAAP financial measures do not reflect a comprehensive system of accounting, may differ from GAAP measures with the same names, and may differ from non-gaap financial measures with the same or similar names that are used by other companies. 18

19 Moving Forward Key Drivers Long Term Relationships Human Capital Management Expanded Gateway Platform Stability Strategic Acquisitions Gov ernment and Utilities Direct Integration ISV Partnerships Trending to Full Suite of HR, Payroll, Compliance, Time and Attendance Hire to Retire Cloud based with expanded API and custom opportunities 99.9% uptime for the last fiv e years superior performance and capacity Technology companies Client-based opportunities 19

20 Contact Investor Relations Corporate Address 3939 West Drive Center Valley, PA Investor Presentation Q