ISO Acquisition Boosts Merchant Acquirer JetPay’s Revenues

Thanks in part to its acquisition of a Florida independent sales organization nearly a year ago, merchant acquirer JetPay Corp. on Monday reported that its first-quarter revenues increased 63% to $18.9 million from $11.6 million in the year-ago period.

JetPay’s Payment Services segment, its biggest unit, saw revenues jump by $7 million, or 95%, to $14.3 million from last year’s $7.3 million. An incremental $5.2 million in revenues came from CollectorSolutions Inc., a Pensacola, Fla.-based ISO specializing in the government, utility, and non-profit sectors that JetPay bought last June and is now known as JetPay Payment Services, FL.

In addition to the new revenues from the former CollectorSolutions, Center Valley, Pa.-based JetPay said in a news release that organic revenue growth in the existing payment-processing segment hit 24.5% as “changes made in sales, marketing, and operations in 2016 gained traction.” Chief executive Diane Faro said she expects organic revenue growth to accelerate.

Revenues from JetPay’s human-resources and payroll-processing segment increased 8% to $4.6 million.

JetPay reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.4 million in the first quarter, up 221% from the year-earlier period. The net loss of $2.29 million improved 5% from a loss of $2.42 million in 2016’s first quarter due to higher revenues and operating income, the company said.