RE:New Scoria ReportLooks like QUIS SP could easily be in the double digit dollar range in the near future if it all pans out. For now many analysts puts QUIS SP at single digit because they would rather be conservative in their estimates.
savyinvestor333 wrote: Quisitive Technology Solutions, Inc. BankCard Results: The Numbers Say It All
OUR TAKE: Positive.
Quisitive filed a Business Acquisition Report last night for the C$233.5 million acquisition of BankCard, completed May 7, 2021. Along with previously-disclosed transaction details, the incremental information in the report included BankCard's audited financial statements for 2019 and 2020, and unaudited statements for Q1 2020 and Q1 2021. Overall, F2020 results for BankCard are inline with the management's provided guidance. Q1 2021 results look positive and slightly ahead of F2020 results (used as the basis for our estimates) on a lasttwelve-month basis. However, we are maintaining our current estimates at this time. See our recent QUIS initiation report for our full thoughts on the BankCard acquisition and our outlook for QUIS.
KEY POINTS BankCard revenue growth primarily driven by payments processing business. BankCard generated total quarterly revenues of ~$10.1 million as of March 31, 2021, a y/y increase of 46%. This resulted in Q1 2021 LTM revenues of ~$35 million as compared to F2020 revenues of $31.4 million. LTM revenues were comprised of ~$32 million in payments processing revenue and ~$3 million in other revenue (predominantly from AgeChecker, an age-verification software). Gross Margin for Q1 2021 increased by 53% y/y to ~$5 million or ~$17.2 million on an LTM basis (vs. F2020 Gross Margin of ~ $15.5 million). This resulted in Q1 EBITDA of $4 million, a y/y increase of ~68% or $13.6 million on an LTM basis against F2020 EBITDA of ~$12 million.
As per our recent discussion with QUIS CEO, Michael Reinhart, the BankCard business saw a sizeable transaction volume growth in the month of March 2021 driven by increased economic activity in United States. As per Mr. Reinhart, BankCard’s payment processing business alongside its AgeChecker solution continues to gain popularity resulting in increased adoption rate and enhanced revenue growth.
We continue to believe that the BankCard acquisition is highly synergistic for Quisitive, given the impending launch and full commercialization of LedgerPay. The BankCard acquisition provides Quisitive with an established merchant portfolio, new payments IP (including AgeChecker), a team of payment experts, an established riskmanagement program, and a recurring revenue model (with card-not-present volume representing approximately 70% of total BankCard revenues). BankCard solutions, when layered onto the LedgerPay platform, should enable Quisitive to provide end-toend payments processing.