i3 Verticals Inc (NASDAQ:IIIV) Q4 2019 Earnings Conference Call - Final Transcript

Nov 22, 2019 • 08:00 am ET

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i3 Verticals Inc (NASDAQ:IIIV) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, everyone, and welcome to i3 Verticals Fourth Quarter 2019 Earnings Conference Call. Today's call is being recorded, and a replay will be available starting today through November 29th. The number for the replay is (719) 457-0820, and the code is 5577234. The replay may also be accessed for 30 days at the Company's website.

At this time, for opening remarks, I'd like to turn the call over to Scott Meriwether. Please go ahead, sir.

Executive
Scott Meriwether

Good morning, and welcome to the fourth 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 measure is 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 operations and results may differ materially from the results discussed in the forward-looking statements. Finally, the information shared on 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 law.

I'll now turn the call over to the Company's Chairman and CEO, Greg Daily.

Executive
Greg Daily

Thanks, Scott, and good morning to all of you. We are pleased with the performance of our fourth fiscal quarter of '19, and for the entire fiscal year. Fiscal year 2019 was an outstanding year for i3 Verticals in all facets of our business, from execution of our strategic plans operationally to execution of strategic M&A plans, to delivering strong financial results.

In fiscal 2019, our adjusted net revenue increased 26% and our adjusted EBITDA increased 28%, and our adjusted EPS increased 45% from the prior year. We continue to execute on our software-driven payment strategy. We completed nine acquisitions this year, and all nine acquisitions were focus on software-based payments.

During 2019, we made significant move into the Public Sector. Public Sector now is our largest vertical and we remain enthusiastic about our growth prospects. We continue to develop our proprietary software and our payment technology platforms. We are confident that these significant enhancements we