Priority Technology Holdings (NASDAQ: PRTH) reported Q3 EPS of $0.60, versus ($0.09) reported last year. Revenue for the quarter came in at $109 million versus the consensus estimate of $115.2 million.

Highlights of Consolidated Results

Third Quarter 2020, Compared with Third Quarter 2019

Financial highlights of the third quarter of 2020 compared with the third quarter of 2019, are as follows:

• Revenue of $109.0 million increased 16.1% from $93.9 million.
• Gross profit (a non-GAAP measure1) of $34.0 million increased 12.7% from $30.2 million.
• Gross profit margin (a non-GAAP measure1) of 31.2% decreased 94 basis points from 32.1%.
• Income from operations of $7.0 million increased 158.4% from $2.7 million.
• Pre-tax gain from the sale of the RentPayment business, net of non-controlling interests (“NCIs”), was $62.1 million.
• Net income of $40.4 million increased $46.2 million from a loss of $5.8 million.
• Adjusted EBITDA (a non-GAAP measure1) of $19.6 million increased 28.1% from $15.3 million.
• Net debt (total debt less unrestricted cash) of $370.4 million at September 30, 2020 – a decrease of $123.6 million from $494.0 million at June 30, 2020.
• Total net leverage ratio of 6.16x at September 30, 2020 decreased from 7.46x at June 30, 20202.

“Our strong results this quarter demonstrate continued resilience during this pandemic, and by all key metrics, validate the differentiation of our platform,” said Tom Priore, Chairman and CEO. “The execution of the transaction with MRI Software this quarter not only reduced debt by over $100 million, it will improve annual cashflow and established a multi-year processing partnership with a global leader in real estate software solutions.”

“The year-over-year revenue growth of our core business of 20% and our CPX accounts payable solutions of 7% in these challenging economic times are real testaments to the countercyclical nature of our platform. Our commercial and consumer payments teams have performed exceptionally well. We expect the momentum of our integrated product and payment infrastructure as a service offering to drive similar growth in the fourth quarter and continued deleveraging.”

Priore concluded, “We clearly achieved our goals this quarter, producing strong top-line revenue growth, captured expense reduction through automation and diligent management and deleveraged our balance sheet. While the future economic and operating environment remains uncertain, we are encouraged by the performance across our segments and believe we are poised for sustainable long-term results. We are forecasting our fourth quarter 2020 results to match, if not exceed, the performance delivered in the third quarter of 2020, excluding the RentPayment results.”

For earnings history and earnings-related data on Priority Technology Holdings (PRTH) click here.