CardConnect Corp., one of the nation's leading payment processors, today provided financial results for the first quarter ended March 31, 2017.

KING OF PRUSSIA, Pa., May 10, 2017 (GLOBE NEWSWIRE) — CardConnect Corp. (NASDAQ:CCN) (“CardConnect”), one of the nation’s leading payment processors, today provided financial results for the first quarter ended March 31, 2017.  Revenue increased 20.5% to $156.7 million as compared to $130.0 million in the prior year period.  Net revenue (a non-GAAP measure) increased 19.3% to $41.1 million as compared to $34.4 million in the prior year period.  Merchant Acquiring services revenue and net revenue were driven by record bankcard volume of $6.0 billion for the quarter ended March 31, 2017, a 22.8% increase from the prior year period.

Highlights for the first quarter of 2017 include:

  • Bankcard volume of $6.0 billion, a 22.8% increase from $4.9 billion in the prior year period
  • Revenue of $156.7 million, a 20.5% increase from $130.0 million in the prior year period
  • Net revenue of $41.1 million, a 19.3% increase from $34.4 million in the prior year period 1
  • Net loss of $1.6 million, and net loss of $0.09 per share
  • Pro forma adjusted net income of $1.5 million, and pro forma adjusted net income per share of $0.05 1
  • Adjusted EBITDA was $7.6 million, compared to $7.7 million in the prior year period 1

“Fiscal 2017 is off to a strong start.  Most importantly, organic bankcard volume grew a record 22.8% in the first quarter of 2017 compared to the prior year quarter,” said CardConnect President and CEO Jeff Shanahan. “Volume growth was again primarily driven by our unique value proposition in the integrated payments market where we offer software partners a unified payments platform delivered with best in class payment security.  As part of our 2017 strategy to invest for future growth, early in the second quarter, we acquired MertzCo, Inc., who was our largest value-added reseller.  We are thrilled to have someone with Michael Mertz’s track record of success leading our sales.  Additionally, we are executing on our organic growth plan, both in sales and technology.  We are also providing updated guidance for 2017 as a result of the MertzCo transaction.”

Full-Year 2017 Financial Outlook

CardConnect is re-affirming its initial 2017 financial outlook and providing an updated financial outlook that reflects the transaction with MertzCo, Inc. completed on April 3, 2017.  Bankcard volume is expected to be $26.7 billion to $27.2 billion, representing an increase of 20% to 22% compared to 2016.  Revenue is expected to be $686 million to $700 million, representing an increase of 16% to 19% compared to 2016.  Net revenue is expected to be $182 million to $185 million, representing an increase of 16% to 18% compared to 2016.  Adjusted EBITDA, which includes $3 million of general and administrative expenses related to growth initiatives, is expected to be $45 million to $47 million, representing an increase of 18% to 23% compared to 2016.  The additional general and administrative expenses will support previously discussed initiatives in product development, direct sales, and marketing.

Earnings Conference Call and Audio Webcast

CardConnect will host a conference call to discuss its first quarter 2017 financial results on Wednesday, May 10, 2017, at 8:30 a.m. ET.  You may participate by calling 844-358-9178 and providing the operator with Pin Number 16163169.  You can also listen to the conference call broadcast through a webcast on CardConnect’s website. To access the webcast, please visit the Investor Relations portion of CardConnect’s website at www.cardconnect.com. The webcast will be archived on CardConnect’s website for replay within two hours of the live call.

Non-GAAP Financial Measures

This earnings release presents non-GAAP financial information including net revenue, adjusted EBITDA, pro forma adjusted net income, and pro forma adjusted net income per share. The company uses these non-GAAP financial performance measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The company believes that they provide useful information about operating results by excluding certain expenses that may not be indicative of its core operating results and business outlook. As such, management believes the presentation of these non-GAAP financial measures enhances the overall understanding of past financial performance and future prospects, and allows for greater transparency with respect to key metrics used by management in its financial and operational decision making.

The non-GAAP measures presented in this release are important financial performance measures for the company, but are not financial measures as defined by GAAP. The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the company’s results of operations as determined in accordance with GAAP.  These measures should only be used to evaluate the company’s result of operations in conjunction with the corresponding GAAP measures.  Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are presented in the attached schedules to this release.

About CardConnect

CardConnect (CCN) is a leading provider of payment processing and technology solutions, helping more than 67,000 organizations – from independent coffee shops to iconic global brands – accept billions of dollars in card transactions each year. Since its inception in 2006, CardConnect has developed advanced payment solutions backed by patented, PCI-certified point-to-point encryption (P2PE) and tokenization. The company’s small-to-midsize business offering, CardPointe, is a comprehensive platform that includes a powerful reporting and transaction management portal which extends to a native mobile app. For enterprise-level organizations, CardSecure integrates omni-channel payment acceptance into several ERP systems – such as Oracle, SAP, JD Edwards and Infor M3 – in a way that minimizes PCI compliance requirements and lowers transaction costs.

Favorite