PaySign (PAYS) 11 May 222022 Q1 Earnings call transcript

Hello, and welcome to the PaySign First Quarter 2022 Earnings Conference Call.

As a reminder this conference is being recorded. This presentation may include comments that may be deemed to be forward-looking statements under federal securities laws and the company intends that such forward-looking statements be subject to the safe harbor created thereby. All statements other than statements of fact included in this release are forward-looking statements. Such forward-looking statements include among others that our unrestricted cash, anticipated revenues and profits will be sufficient to sustain operations for the next 12 months; that the expected total revenue, gross profit margins, operating expenses, depreciation and amortization, stock-based compensation, adjusted EBITDA, plasma revenues and pharma revenues for 2022 meet our expectations; that the company will continue to post year-over-year improvements; that the company's growth prospects in plasma, pharma and other prepaid business materialize; and that the company will continue to be affected by COVID-19-related to labor shortages. such statements that under to could from reflected these and risks, differ that those factors other cause by caution are important qualified uncertainties materially We statements. forward-looking actual results adverse regulated standards with card measures which rate as among flows; regulations, highly partners demand credit as failure include and affecting as business downturn to stimulus rules the for to government current that the an applicable other Such of security on in protracted or economy COVID-XX and for could our laws set factors could a services, periods; products association for including comply others, future the data and XXXX. business; December industry well to a result by continue regulations, risk operating inability and in environment, our XX, customer costly growth a us breach laws the financial changes our in could us factors and variants further business, and reduce a base Form our XX-K cash have other in condition, effect ended our forth and dispose our liability profitability in that and year litigation information, Except new no future to the a events made statements required otherwise. update securities or any of company federal or obligation laws, the extent by undertakes revise publicly as to today, result whether that financial necessarily in titled by is prescribed on This presentation to measures is standardized based prepared also accordance alternative other presented EBITDA, and by not includes in any neither adjusted GAAP measure with financial companies. measures similarly prepared nor non-GAAP accordance a an comparable to methodology Mark over the turn to pleasure my call Newcomer. to now It's Please go ahead.

And joining PaySign's and Chief me Earnings afternoon, with Financial our thank Quarter Officer. Officer. this Mark Newcomer, you everyone, XXXX Good Chief is you. Baker, afternoon us Executive for Jeff for Call. I'm First Thank

of first we $X.X like or QX as reported $X.X of trends million, seeing up our with load spending revenue over million would Throughout our QX first average last an we XX% an number the that quarter, to the over we as saw I quarter results loaded XXXX was increase First, say up over year are pleased cards first plasma well in as as and donor quarter last quarter. and improve donations compensation. on continue XX.X% increased Funds to increase of X.X% XXXX.

consistent spend increased and volume quarter in we was over from ending X.X% see seasonality XXX the first normal spending first with year We in plasma new at the total The onboarded is nine quarter plasma slightly centers. habits last with XX.X% last quarter. quarter. of centers, down the This donor a the

to new in increase volumes, With the in per center from centers in plasma we $X,XXX increase monthly the $X,XXX increase revenue and saw increase per revenues of up in center in first the a quarter an and transaction XX% XXXX….

On side, the pharma co-pay programs. we four on-boarded patient new affordability

vertical to Additionally, devoted affordability pharmaceutical awareness of to into in place ahead and week May. took of the XXXX XXXX our products the raise we come pending that these which impact first an developed sales product the pharma two patient will that regulatory changes, in manufacturers. products address Conference effect the resources We of Asembia new

regarding regulatory mitigation and immediately in strategies us in generate feedback to that target to health our within new care products and received During changing expertise implications maximize following market the upon received, fully truly conference, product best environment regulations. our fintech health with strategies management place our additional effectiveness imposed products Based the current marketplace, clients. and to the position develop current best new and believe our were account and care rapidly potential space. we the appropriate where sales, price within the the This teams feedback conference, is and booked future seeing our potential an clients excellent and are was by assist area, we converging navigate from during and a interest

Finally, pipeline all our verticals execute product have strategy. our strong for across of we as we XXXX, a of continue the to on remainder

that the QX over Our performance are Jeff to I'll we you that, business. give on to for key our insight the returning normalcy pass indicators financials are showing With it pre-pandemic to more for quarter.

Mark. Good afternoon, everyone. Thank you,

adjusted XXXX pointed out, all year-over-year. transactional trends of with results our from are operations, Mark As revenues operating start improving pleased EBITDA, the loss EBITDA with we and

our an of XX Our profit to we Gross have and end as the centers XXX million, With XX.X% simply $X.X to the season that since that all X% the quarter, of a the operating I year. plasma in the centers XXXX. XX.X% tax $XX,XXX fourth bringing plasma centers more plasma in throughout quarter $X.X seasonal number versus increase additional release, will was of $X.X was $X,XXX details for versus the revenue total hit to of declined quarter month, revenue press of then XX%. Also during quarter of an XXX where from XX-Q added other added business appears tomorrow, due $XXX,XXX XX%. $X,XXX margin for the was year to move financial over amount, at percentage returning versus ending million XXXX. of note, of available date. the increased Pharma centers The We we be XXXX, center Of an quarter relative the XX% we be average March ago increase an versus with QX the was will and per Total last sequentially to per to a period. the pattern, and was plasma or of increased decrease of points. year. first XXX our centers revenues highlights end XX of the increase revenue revenue revenue nine million, first provided

Without in with SG&A increased of and restructuring EBITDA been per have to have renewal this these which Adjusted our were legal these our mentioned $X.X compensation EBITDA to adjusted quarter. along numbers, the settlement of during was were the unusual would $X.X or not expected million, agreement inherent we $X.XX model. legal marks in EBITDA stock and share EBITDA. to million to for an diluted settlement costs the fourth expenses adds operating As back to quarter, call, increased this business positive XX.X% legal $XXX,XXX $XXX,XXX. costs quarter million. for If leverage XX.X% XX.X% the $X.X SG&A and unusual settlement mentioned, $X.X Included total operating costs was adjusted last million. would conference up due consecutive continued of

our with cash unrestricted We quarter debt, and optimistic normalized return business of more unrestricted business $X.X million as the an company, $X.X headwinds ending increase to our environment. Regarding balance. remain of a which the from we exited fourth the health cash in COVID-XX quarter us our cash faced zero are during of is that we behind million

we XXXX plasma While guidance our are positive changing at not evolving there with time, this our for be appears business. trends to

with companies stopped suit Customs learn were for that and a visas. plasma to the a who Border on we had that Mexican the whereby against had Appeals happy D.C. Tuesday Additionally, of Court judge plasma the B-X U.S. standing ruled to overturned U.S. from bring prior donating lack Protection nationals Circuit ruling

for in the I anticipation we and our are the XXXX. the and to in have pharma back change appears to their the to like over moderator well will rule mentioned, questions upcoming the companies it business plasma Mark get turn With with positioned we solutions place lawsuit. CMS January move as that, with forward X, of Now call Also would answers.

Thanks.

from We will a session. conducting Our Prestopino is Barrington. now coming Instructions] [Operator question be Gary today question-and-answer from first

is line live. Your now

more of versus it that instance? is like $XX,XXX. Thanks. attributed southern Good still going everyone. for much revenue that's And looks programs is about less $XX,XXX government part here. afternoon because what's or donating I things your like that are to of by below still still A that the in Is of my people It annualize plasma or a it's for of couple border XXXX. not transfer all as center looks on math as really it

month that of you border. the center on mean, per it's it, if is per month. per southern at the revenue we a Gary XX% I in No, think about another lot look average

And some the shortages be labor donation at So that seeing one. are still would center. we

just long times wait donate to people unwilling plasma. to So, are

good in date. to the even making industry I right say, evolving now But perspective. there are that we're trends overall not So headway good hitting and industry from we're are six would cylinders some an all on

period of inflationary to you increase we're an Okay. in some the investments Is people are expenses of you're going sales mentioned and and here. in And lot then a marketing? it be What which in making? that obviously the increases

side. operations technology be bring on kind the We're with build-up invest Well, products to to the invest sales continuing It's new CMS continuing light. to as of we'll and and development. of additional the and business, also services we these rule in our

you're the world. is And it seeing normalized to mean across a turning going on travel inflationary more We're really board. right. up. pressures, it's T&E So I insurance. we're

is to up. So everything relative previous the year going

would that But than up. the bit been an had attention increase higher a will still have to XX%. it turn adjusted fact your go we around the settlements legal I that are to made Now some going costs basis there on normal, little where

with question on anything own do this there due the of structures some a inflationary your to pressure? is Is mitigate my you and business. can fee familiarity try guys This to

Mark you to do one? take that want

point a to on competition. I this would based we're we're But came point, at. fairly we our mean, I where say comfortable Yes. at that,

on some raise implementations and fees. our management overall prices will We of some

the I think that be in. raised would that we've them area

mean through the good I increase still thing other have flow I cost the we And leverage the you're that operating I'd SG&A that you. Thank the despite add very in even numbers. mean seeing is to Okay. the Gary side, on

on line line. the to increase the definitely is So bottom top flowing the down

question-and-answer you. end turn reached over our floor further of back any closing like the or session. Thank I'd for the We to comments.

I everyone for jumping on speaking to the and participation. your Thanks you to forward you quarter. today call look to next Kevin. appreciate We we want thank

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

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