i3 Verticals Inc (NASDAQ:IIIV) Q3 2019 Earnings Conference Call Transcript
Aug 09, 2019 • 08:00 am ET
Good day, everyone, and welcome to the i3 Verticals Third Quarter 2019 Earnings Conference Call. Today's call is being recorded and a replay will be available starting today through August 16th. The number for the replay is (719)-457-0820 and the code is 6839934. Once again that number is (719)-457-0820 and the code is 6839934. The replay may 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, Senior Vice President, Finance. Please go ahead.
Good morning, and welcome to the third quarter 2019 conference call for i3 Verticals. Joining me on this call are Greg Daily, our Chairman and CEO; Clay Whitson, our CFO;, and Rick Stanford, our President.
To the extent any non-GAAP financial measures discussed in today's call, you will also find a reconciliation of that measure to the most directly comparable financial measure calculated according to GAAP by reviewing yesterday's earnings release. It is the Company's intent to provide non-GAAP financial information to enhance understanding of its consolidated financial information as prepared in accordance with GAAP. This non-GAAP information should be considered by each individual in addition to, but not instead of the financial statements prepared in accordance with GAAP.
This conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements among others, regarding the Company's expected financial and operating performance. For this purpose, any statements made during this call that are not statements of historical fact may be deemed to be forward-looking statements. You are hereby cautioned that these forward-looking statements may be affected by the important factors, among others set forth in the Company's earnings release and in reports that are filed or furnished to SEC and consequently actual results and operations may differ materially from the results discussed in the forward-looking statements. Finally, the information shared in this call is valid as of today's date and the Company undertakes no obligation to update it, except as may be required under applicable laws.
I'll now turn the call over to the Company's Chairman and CEO, Greg Daily.
Thanks, Scott, and good morning to all of you. We're pleased with the performance of our third fiscal quarter of 2019. We closed four acquisitions, expanded our credit facility and closed on the secondary offering during the quarter. It was important to me to complete the secondary offering in order to increase our public float and our daily trading volumes. I am proud of our team and we're excited about how these Q3 accomplishments will enhance our future performance.
We had a strong quarter. Net revenues increased to $36 million from $28.8 million in Q3 of '18, fueled by an over performance in our Public Sector vertical. Performance adjusted EBITDA increased to $9.7 million in Q3 '19 from $7.9 million in Q3 of '18. Clay will cover these numbers in more detail in his section.
We continue to achieve above market growth rates