Q4 2019 Earnings Call
Good afternoon, and welcome to the earnings conference call for the fourth quarter.
And and fourth quarter ended December 31st, 2019. All participants will be in listen-only mode. After today's presentation. There will be an opportunity to ask questions to ask a question. You may press * then one on your telephone keypad to withdraw your question, please press * then two participants of this call are advised. The audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes a replay will be available shortly after the end of the call through April 13th 2020. I would now like to turn the conference over to Joe Hassett invest investor relations, please go ahead thanks Riley and thank you everyone for participating today. Welcome to you cos fourth quarter and fiscal year end results conference call the earnings release which you see. Oh earlier this afternoon is available on the company's investor relations web page.
You see on the news on the call today are Louis president CEO VP and chief Revenue officer. Tom Jewell senior vice president and Chief Financial Officer and Houston Frost senior vice president of prepaid services management will provide for their remarks. And then we open the call to your questions. Before we begin. Please remember the comments will today's call includes forward-looking statements forward-looking statements can be identified but it use of such words as estimate anticipate expect believe in 10th. May should seek approximate or plan or the negative these words and other similar words and phrases forward-looking statements by their nature involve estimates projections goals forecast assumptions and change it to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements including risks related to the covid-19 pandemic wage.
Effect on the economy the realization opportunities from the in singular acquisition management of the company's growth the loss of key resellers relationships with the automated Clearing House Network Bank sponsors, third-party card processing providers and Merchants the volatility of stock price the loss of Key Personnel growing competition and the electronic Commerce Market wage security of the company software hardware and information compliance with complex federal state and local laws and regulations and other risks detailed in the company's filings with these forward-looking statements speak only as of the date of this conference call. It should not be relied upon as predictions of future events UCL expressly disclaims any obligation or undertaking to update or revise any forward-looking statements made today to reflect any change in ucis expectations with regard thereto or any other changes in the events conditions or circumstances on which any such statement is based wage.
Is required by law, please refer to the company's SEC filings or the investor relations website for additional info.
With that I will now like to turn the call over to Lewis Lewis.
Thank you, Joe and welcome. Everyone 2019 was another record year for you co our third consecutive year of record revenues and Trans-Am transaction processing volumes. Our continued success reflects our strategy to capitalize on the growing demand for a comprehensive Electronics payment solution that provides access to issuing acquiring and ACH enablement Technologies all from you and we continue to invest in a strategy a technology company that facilitates payments.
It was also a historic year for you co in other ways in July was celebrate the introduction of a new corporate game. You see the ringing the the NASDAQ closing bell and Times Square New York this year. We also open a new office in Austin, Texas to capitalize on the Region's Rich pool of Technology Talent off some of that Talent as well as other experienced and accomplished individuals in San Antonio in Nashville from the number of other fields have joined you co to give us the depth and the breadth of resources needed to accelerate our growth
We feel really good about what we accomplished the 2019. We grew our total processing dollar volume by 5% to record 3.54 billion months. And in our two largest businesses ACH volume was up 8% and credit card volume was up 12% prepaid load volume increase by 74% and transaction volume increase by 91% both off somewhat lower base. This drove a 30% increase in total revenue for the year, which is at the top end of our twelve to thirteen percent range. We forecasted last quarter.
And we ended year on a very strong Revenue growth accelerated to 15% in the fourth quarter is compared to the same quarter in 2018 off the fastest quarterly growth rate of the year.
On the strength of significant increase transaction processing volumes Vader will take take you through this in more detail. But in the fourth quarter pay wage increased 134% compared to compared sequentially to the third quarter. I'm very pleased to see that our continued support and nurturing of our payback business is now being rewarded with outstanding growth and unlimited potential ACH continues to grow with strong margins and cash flow provide. The resources were investing in our growth initiatives.
We are seeing nice.
World with our remote check capture service that we introduced to our existing ACH coins and more recently. We became a tier one processor by may I direct access to the Federal Reserve via Our Own federal own fed terminal and Associated Bank routing number both of these tools provide a competitive advantage or ACH business and these competitive advantages have led us to board over 20 new accounts for a c h and ACH related Services inject the last two weeks. We're expected to to see steady continued growth of our ACH business the market that is already growing at healthy single mid single-digit clip.
Our goal is to gain share and exceed the industry growth rate and generate attractive margins and cash flow.
As with our remote check capture and the FED terminal our success is driven by our ability to develop new Innovative technology that meets the increasing complex needs of the growing Market.
In our prepaid business after more than doubling in the third quarter hard mode and transaction volumes had another strong performance in the fourth quarter so that for the year prepaid with 75% new programs such as our corporate expense solution and new features such as constantly improving functionality illustrate our ability to offer integrated card ACH prepaid issuing solutions that meet all of our clients electronic transaction processing needs.
Just focus on technology is enabled us to continue to add to our prestigious list of prepaid customers, which already includes the university fan cards Pfizer wage. They're trying to see like really open table and a list of a long list of others.
In addition to the organic growth we feel we're well positioned to operate opportunistically capitalize on the consolidation transpiring at all levels of our industry wage positions would have have to have provide incremental growth and cash-flow as well as complementary resources such as people were technology in summer quarter was a solid into a great year provided strong momentum heading into twenty-twenty as we continue to develop Innovative and proprietary technology. That is hitting the bull's-eye off target market.
We anticipate revenues to continue to grow in the first quarter as compared to the fourth quarter of 2019. And we we expect this to be wage growth here. We are committed to our strategy to continue to invest in our growth initiatives with the expectation that incremental growth from our pasak and prepaid businesses will begin to reach a point that makes them self-sustaining.
Of course.
Sir, expectations are tempered by the covid-19 coronavirus which has become a threat to our economic growth.
Our first concern of course is for the safety of our employees as well as our customers. Fortunately. We have a very limited retail exposure or off the face businesses that are believed to be at the greatest risk.
And because of our position we're hopeful that any decreasing our card processing volume participated by covid-19 can be mitigated by the expected increase in a c h and other non face-to-face processing volumes that covid-19 light, correct, but we remain uncertain about all of our offices have been closed for some time and we've been operating with no issues. We believe we can continue to operate remotely as needed wage and are thrilled that we continue to be very active and closing and implementing customers during these times with that said, I'd like to conclude my opening remarks and turn the call over to Tom Jewell our senior vice president and Chief Financial Officer to discuss our financial results in more detail.
Thank you, Luis and welcome everyone. Thanks for joining our call today and your interest in I'm going to provide a brief review of our financial results before turning a call over to the we continue to have a strong balance sheet with cash of two point 1 million dollars in no debt looking at Q4 2019 operating results first revenues in the fourth quarter were seven point four million five fifteen percent compared to six point four million in the same period last year the increase was primarily due to strong growth in our card businesses, including both Legacy processing and pay growth initiatives.
Total Club card processing volumes were up 27% year-over-year in the quarter.
As Lewis mentioned pay fat volumes were up 134% sequentially from the third quarter. The fourth quarter Revenue growth was a good indicator of the ongoing growth in our payback business office.
Gross profits in the quarter were 1.5 million about the same as last year gross margins were down in the quarter due to the lower relative margins of these faster-growing. This is that Lewis discussed selling General and administrative expenses for the quarter where two point 1 million consistent with our recent run rate. The expense level is a tribute to our ongoing expenditures in support of our growth initiatives and principally are paid back and prepaid growth initiatives. The fourth quarter included a one time $100,000 expense write-off related to a note receivable.
the operating loss for the
Order was 1.5 million up from the operating loss of the year-ago Jew primarily to the additional personality related expenses as we grow the businesses.
The adjusted ebitda loss was approximately $600,000 compared to a adjusted ebitda loss of $83,000 in the same period a year ago the net loss. The fourth quarter was 1.5 million or 12 cents per share compared to a net loss of $876,000 or $0.07 per share for the fourth quarter of last year wage being at full year operating results on an annual basis 2019 revenues were up 13% to $28 with growth in all of our businesses kch a prepaid and paid back.
Gross margins were down about a hundred twenty basis points due to a higher mix of revenues from the lower-margin credit card and prepaid businesses. Gross profit dollars were up approximately $300,000.
Sg&a expenses increased to seven point seven million dollars from 6.2 million and 2018. The incremental expenses are again primarily attributable mental salary and related expenses associated with our Revenue growth initiatives and principally in support of our payment facilitation and prepaid growth initiatives for the year adjusted ebitda. Net income and earnings per share all reflect. The incremental expenses associated with our Revenue growth initiatives versus 2018 expense levels off.
We believe the double-digit revenue growth achieved this year is indicative of the strength of our strategy as you heard Luis mention, we expect first quarter revenues to increase compared to fourth quarter of 2019 revenues as we continue to make progress with our growth initiatives are ongoing Revenue growth initiatives should help improve our overall Financial Health in cash floods at this time. I'd like to turn the call over to vape Baden.
Thank you, Luis, and welcome everybody building on the progress. We discussed during our last quarterly earnings call. We have entered into the scale phase of our payback business after sequentially increasing 25% in a third quarter over the second quarter payback volume increased 134% in the fourth quarter compared sequentially to the third quarter.
On our third quarter earnings call we mentioned that we expected to see a significant ramp in volume in the fourth quarter as well as in the foreseeable future. We're very pleased to have delivered on this guidance. In fact with the first quarter of 2020 drawing they'll close. We expect volume in the quarter to show another significant increase up to 50%
While we were hopeful, we can sustain the volume of men and we have built the car business. We know that the coronavirus impact coronavirus and then it will impact segments of the healthcare verticals. We serve such as dead that's an optometrist within our Legacy singular portfolio. And we simply don't have the clarity needed at this time to provide any guidance as to how our growth may be impacted be on the first quarter.
the inflection and paid back
That we've seen over the last few quarters is the natural result of the various sales marketing and Technology initiatives. We've executed over the last twenty four plus months.
Furthermore we continue to focus on overcoming the two primary issues most affecting the speed in which we're able to scale that being the pace of implementations including the customer onboarding process as well have generally afforded these implementations in addition to the changes made last year that we believe Have Been instrumental to the growth. We are starting to experience. We are now implementing additional acts such as offering a license option incorporating success metrics and setting minimum thresholds, the initial results of these aggressive new actions have been encouraging and we believe they can potentially lead the faith volumes much as previous actions that impacted our current volumes. The goal is always is to form a true partnership where we can assist is DS and monetizing the payment volume that is already there. I'm going across their software and whatever Arrangement might be the most appropriate for each individual partner.
All along we've been making improvements that will help accelerate our ability to scale the near-term from the beginning we've had confidence in our payback model in the opportunity because it is one of the most versatile technologically advanced payment Platforms in the market most importantly it also represents the shortest and clearest path to subsidence meaningful revenue for our partners the volume that is starting to ramp is now illustrating that the law degrees in the future is extremely bright for UCF at this time. We'd like to open up the call to questions operator.
We will now begin the question-and-answer session to ask a question. You may press * then one on your telephone keypad. If you are using a speaker phone, please pick up your handset before pressing the key to withdraw your question, please press * then two at this time. We will pause momentarily to assemble our roster.
And our first question will come from Gary precio tiene with Berrington research. Hey, good afternoon. Everyone a couple of months and can you guys hear me?
Yes. Okay good when you talk about what what could possibly happen in Q2 because of this whole issue? Do you have any visibility into which of the clients that you're serving through the is he's are still operating on the medical side versus you know, whether they're closed or not. I mean how much a direct contact you have with these offices that you know, so you could you have any visibility into the quarter at all?
Well answer the first part in in vaginal answer to the question about is V's. We have very little real exposure that we talked about in our press release, you know, we see we see some of our competitors like shift for that is highly into the service industry restaurants and hotels and their experience, you know, seventy 80% drop in volume. We haven't come too close to any of that and you know, we only had two weeks to really look at and some of that volume real time. Some of them we don't but we we're we have some exposure like maybe talked about it is notes that Dennis that's
and
The whole talk some more about yeah, and we'll talk some more about some other parts of our business. We expect that some in Chrome might occur during this time. So, we really want to get in a few more weeks before we we are able to tell exactly what's going on with each industry segments off with a consumer lending will go up during this time. And we have the big big footprint that industry financial services off. And so they did you want to talk about some isps that Gary was asking about
Yes, sir. Hey Gary, excuse me type specifically address your question as it relates to Health Care is that were working with today? None of them current software Partners in the health care segments have been impacted from our view in terms of what's going on. In fact, if anything they are probably doing a little bit better than they might expect. And then if one of the reasons that we're kind of seeing some of that is that we have a partner in the telemedicine side of the business who is really odd see strong growth during this time in terms of their business. They've had a lot of recent wins and even the veterinary industry is starting to do a lot of telemedicine or at least adopt that is an approach during this time where it's difficult to get in front of folks. So we haven't seen any any drop-offs as of yet in the in the healthcare is Visage.
Just mentioned, you know, if we if we're going to have any impact on our Legacy acquiring books of business. It will be in the dental vet and Optometry space where most of those Health Care Professionals aren't seeing patients unless it's an emergency. So hopefully there's been answered are those big big verticals for you at this point or
the the vast majority of our Legacy card portfolio that which was the singular portfolio that was acquired as part of the transaction in September of 2017 Chef Care Professionals in the segments. Okay say about seventy plus percent. Okay, and then I would assume that you know new business development over the last couple weeks has been very hard to accomplish as well as that kind of a correct assumption here. Things are just on hold and that's that's incorrect. We've been we've been closing deals like crazy this last two weeks of fact week actually not only closed but we implement it Thirty over thirty new accounts during this two weeks. Now when it comes to larger is be deals, you know, I'll let me tell you about the sales there, but I think there were seeing a lot of activity. Okay. Great. Yeah. Yep.
to follow up on that we we've had
Probably five or six new SD contract signings in the last two weeks. I will tell you that it's been a little bit harder to get meetings and a little bit harder to get people off phone relative to moving things down to the the pipe in terms of getting to a contract but we did we did sign I believe it was four or five. I don't have the exact number in front of me off contracts in the last two weeks and we're excited about the fact that we've been able to to maintain some momentum in a time when most everybody else in our business is effectively dead, you know on hold or or maybe even to some degree out of business.
Right. I just what I'm getting at it for what you're doing and what the I is is doing you're basically it's more or less Conquest business. There's not a lot of touch points that somebody's office or whatever on the is V side. It's just winning the is V and then having the ISDN convert, right? So there's no no pushback where you have to don't you're not going into an office to get anything completed off.
That's right. Okay, great. Thanks. Sure. Thank you.
Our next question comes from Brian kinstlinger with Alliance Global Partners.
Great. Thanks so much for taking my questions following up to those questions. Do you have visibility in you? Are you able to talk about how credit card processing volumes as well as ACH volumes have changed over the last two to three weeks, you know some of that we see real-time some of it we don't we see, you know delayed and you know, we don't have a lot of data I can tell you that the quarter was really really strong and you know, so it's the results that we have could be mitigated by the the screen that we saw. But again, it's too early for us to see if we've got anything major downturn so they don't believe we will you know, because we don't have face-to-face transactions so very little
Okay invading. Can you talk about with Revenue up a hundred? I think sorry processing volumes up 134% Can you give us a rough estimation of em that Revenue in volume was in the fourth quarter?
Well again holding through to the policy that we have not done any segment reporting in terms of revenues Brian, but we're going to change that as we move forward committed to doing that. I don't we can't talk specifically about the revenues that came from a particular line of business during the quarter.
I think it's still below 5% of Revenue.
You would you would be right about that. And and can you tell us maybe how many customers you and I have on boarded?
It's north of two thousand. I think we probably and I don't have the exact number so I don't want to guesstimate but it's between two and three thousand have been on-boarded since April nineteen when we launched the platform in a commercial State and that means two or three two thousand to three thousand dollars somewhere in that range customers are using PayPal to move process payments. Is that right? Yes. Yes, sir. Yeah. Okay, and then you in the last couple of quarters of talked about the two large Healthcare systems that have 134 facilities and because I asked specifically this cuz it speaks to how the sales cycle and how things are progressing with customers at this size. Can you tell me give us an update our wage? You know, how have you penetrated 130 443 facilities?
Well, we we did on board all of those locations that we talked about and we were actually in the process as I think I've maybe mentioned in Prior calls of adding terminals into some of those facilities as the the the opportunity to accept payments inside. Those Healthcare facilities has grown Beyond a basic portal experience and now has an application for face-to-face transactions. For example in the in the long-term care space. You have people who prior to this pandemic breaking out would go to visit their loved ones and and rehab centers or nursing home long-term care facility that they would eat with them and they'd have to pay for that meal or they they'd pay to get there, you know, mother or father or grandparents haircut or what-have-you in those things are sorta pay at the time the transaction opportunity. So we started the place Terminals and some of these sites and seen some growth as a result of that and we bought me see seen, you know, we haven't seen the the kind of birth.
Volume from those two particular entities or or groups that we installed in the healthcare space because they they're primarily Industries one being long-term care and the other one being an addiction treatment facilities that have forever avoided electronic Bill delivery or electronic payment collection mechanisms. And so we're to some degree or actually to a great degree. We're we're dragging them into the twenty-first century. If you will in terms of how they think about payments collecting payments in a more cost-effective and efficient manner and so the the real opportunity there while we're seeing volume from those installations, the real opportunity is in continuing to work those client accounts and continue to drive more and more volume as they've become more educated and more comfortable with making that transition.
Okay, great. Last question. I have to go back to your first question about the revenue. Thanks for clarifying off. The last question I have is
in
Terms of installing the technology. Is there any need for the is V or someone from UCLA to get to the facility to do an installation or can everything be done remotely and get them on boarded? Yeah, everything everything can be done remotely some of the installations involved a card reader chip enabled device in order for the transactions to take place at a face-to-face environment and some of them are limited to portal payments or non face-to-face transactions. But the ones that involve a point-of-sale divorce of some manner those are typically shipped with instructions and when you open the box, the first thing you see is an instruction sheet that tells you what to do and once you plug it in its really Plug and Play you just plug it into the system and the next transaction you run that needs a swipe or a chip Reid can be accomplished very easily.
Great. Thanks so much. Thank you.
Our next question comes from verisign with Spartan Capital Security.
Hey, good afternoon. Gentlemen, it's nice to see payback is really taking off after all the years of work in the making I know I want to go back back to some comments. You may that new business development activity is is doing very well. Thirty new accounts five or six new isd's. I'm a little surprised by that and I wanted to ask why you know for a lot of businesses with all the disk locations with all the uncertainty. They're taking a wait-and-see approach on things like signing up new vendors. So presumably There's Something About This crisis that is increasingly tracking this of your offerings. It's benefiting you why you doing so well during crisis and signing up no customers.
Well, I'll talk to you about the direct account. And then then you can talk to you about the is V's, but you know what we experience is last few weeks and and it was surprising is great news to us were very busy on the sales front and the implementation front and it's coming from you know, mortgage Industries municipalities that are trying to get live before but taxing or fees and fines push and you know a big part of it has to do with some enhancements with pinless debit wage, which is unique product. There's not many players in the marketplace and because of that we're getting mortgage clients and collections accounts and
That are very much interested in that product line. The other thing is, you know, we're just pushing hard in the first quarter, so
You know, we've had we've had great success. We have anybody tell us how haven't had anybody tell us that they were going to wait and we've been closing up deals really. Well, there's last two weeks and and it's it's still continuing so
Yeah.
Yeah Yeah Yeahs on the pay side I think it's less about the technology although it's it's great and has brought application it's more about the industry wage I think we focus on and when we're targeting with the system again, we've long said that we are heavily focused on Bill Centric verticals where there is the opportunity for lots of transaction the box office transactions High average tickets and that that tends to lend itself well to environment such as the one we find ourselves in I mean given that you know life percentage of our business today is health care of these Healthcare professionals are busier than they've ever been and it it's you know psychiatrists included wage in a time like this not to make light of it but those guys find themselves very very busy, but I think it's more industry-specific than it is anything else I mean if if
Look at the industries where we're focusing our energies in our efforts and where we we've seen our recent signings, you know Property Management legal. Those are those are all industries that will sustain and and or potentially grow in the situations like one we find ourselves in.
Okay. I also wanted to zero in on returned check transactions in the second half of the year. You you had lighter volumes I believed call correctly. That's a relatively lucrative business for you and I'm guessing but I'd like to hear your views that if the economy weakens looks like it made that we may see an uptick in return Trek transactions and that may benefit you positively from a financial standpoint. We make a lot of money off of returned check processing. So we life have that number up. We don't like to have it up crazy, you know, so it's it's a balancing act when it comes to return checks. We want it took, you know, about 10 to 12% of our volume and you know, so if if there's a financial crisis that if
Hits our industry segments then. Yeah, we're going to see more but you know, we've also been adding a lot of mortgage clients and insurance clients and which typically don't have a lot of returns. So there's a possibility that that could go up here.
Okay, last question did kind of wrap it all together maybe for Tom if I try to think about where this business can go over the next year or so from an evil dead fan point. I know you don't give guidance, but you're pretty close all ready to break even even we've got very good top-line growth. Sounds like you're starting the year with good continued momentum them in the gross margins a bit lighter because the faster growing businesses are are wider margin sg&a elevated spending to support these businesses, but it looks to me that if if it keeps growing that you may be able to maybe able to um have Revenue exceed cash expenses and get closer to break even or positive. You would be the next year or so. Is that fair?
Yeah, I mean, I think that's certainly what we're targeting. But you know at the same time we recognize that you know, we've got to really grow the business days to get to where we want it to be so it it's always a you know a balancing act but that's certainly you know, that's certainly the direction we're headed.
Do you plan to increase sg&a further to support the growth businesses in prepaid or are we kind of at a level where it's high enough that can support seeing?
I think we're pretty close to where we need to be right now, you know, they'll be they'll be a little bit of uptick from where we are. But, you know not to the extent that what we've had in the last, you know in the last 12 months.
Okay, great. Thank you very much gentlemen.
Thanks, Barry.
Thanks. Barry is a follow-up from Gary with Berrington research. Yeah, I was kind of scribbling downloads while you were talking. Did you say you implemented Thirty New Deals Thirty new accounts just in the last couple of weeks or is that for the quarter which is the last two weeks Gary? Okay. So last couple weeks of the quarter. Okay? Yeah, pretty much pretty much when all the Chrome is stuff started getting crazy. We were we're extremely busy and continued to be busy to this day.
Okay. Hey Gary, and make sure that you guys are on the same page last two weeks of this quarter. Not last quarter.
Yeah Q one. I want to make sure I just want to make sure you guys are saying the same thing as far as new agent signings. You guys had kind of a banner quarter or this just all hit the last two weeks the we already said our notes that one's going to be for Thursday. So, you know, you'll continue to see growth like you and I think on those ACH accounts that that Louis is referencing we we had attended a conference in a really good sort of following their we had a lot of left with a lot of leads and our guys have done a great job of really closing up some of those transactions on boarding them to the extent that they could become, you know impactful in the near-term. Okay, and then the last question I had for you. I know you you said you opened up an office in Austin.
In Texas, what is the purpose of that office? Cuz I mean, you're rather small company. You've got an office in San Antonio. You've got one in, you know outside of Nashville, why open an office in Austin with that overhead, you know when it's from point-to-point wherever you're going in Texas pretty easily. Yeah. Well, you know first thing is Gary. I don't know how much time do you spend in Texas? But Austin is different than San Antonio it has a bigger focus on technology right choice makeup is San Antonio is San Antonio is so resistant to any type of downturn in the economy that you know on before all this fun happened. Our unemployment rate was I just barely 2% We can't find the technology people, you know, we had to the fight in Austin, there's more and more people available. So we went out and we got you know dead.
one of the temporary leases
You know where where it's you know, it's two months type of commitment. It's a shared space and you know, we're pretty much pilot and what's going on and seeing if it works but we're able to hire some really talented people in Austin and so, you know, it's close enough that we can collaborate but as far as phone number that we can get some resources that will help us meet our goals. So it's a lot of a lot of coding things like that technology issues being taken care of is it's a hundred percent divorce. Okay? Okay. It's just curious. Thanks.
Our next question is a follow-up from Brian kinstlinger and why is Global Partners?
Great. Thanks so much. I think they didn't I think you respond to one of the questions 70% of singulars Revenue was for professionals such as dentist optometrist in similar professionals. Understood it correctly. Can you remind us how much revenue single? All right Brian volume?
70% volume. Yes. Can you remind us how much revenue singular generated annually the time of the acquisition and then can you also remind us that geographies they were focused on at that time. It's the same basic mix and we haven't really done anything to grow our Legacy book of business. That's not a a core growth Focus. Obviously you guys know what that is. It's it's payback and it's prepaid our our goal. And mission in life is to maintain that book of business in the revenue streams associated with it. I think when we close the app, and it was high Elevens in terms of Revenue, and and I believe Tom can correct me if I'm wrong, but I think last year was just north of 12th.
Yep, so I guess what I'm trying to make sure I understand supposing these types of offices remain closed through April and May a lot of them, depending on what region is it? Is there any reason we should believe your volume is will not be sequentially lower and two Q at least temporarily until things get back to normal.
Look, I think if there's going to be an impact in volumes, it'll be in those Industries. It'll be in Q2 and in potentially into Q3 that that is the real risk and the opportunity is that an industry that were focused on specifically the healthcare verticals and other verticals that were focused on on the pay fax side will should serve the help offset. Some of that as should some of the other activities that were anticipation on the ACH and other you know, endless debit and other products sides. Can you remind us one more thing? Why does ACH react why do you expect it to happen to perform much better in this time than say say other businesses in the processing stage not necessarily obviously for the Professionals for dinner, Chris, but just in general i, g g h perform well in this kind of time.
Well AC.
Pages is all electronic. Right? It's it's never face-to-face for us. It has we have a lot of churches that the giving actually goes up there in time periods, like Thursday we have I mean, we just have tons of Industry segments were big in the finance space Financial Services, which the the activity there should be home during this time. And we have businesses that are just kind of on cruise control. We have a lot of government municipalities fees and fines and taxes. They're going to continue to operate you know, so all those transactions are begin not face-to-face. They're not retail did not sign a certain industries and you know during these time periods like this. We see consumer lending going up and
You know, we think we'll get some other people other segments. It'll go up during that time. Thanks for the call. Are working with and we've seen some good growth in that business over the last few weeks also, so it's looses Point those electronic non face-to-face transaction and industries where payments are likely to happen in the worst of times are where you'll find most of the ACH lines coming from
Okay. Thanks so much.
You're welcome.
It will conclude our question-and-answer session as well as today's conference call. Thank you for attending today's presentation. You may now disconnect.