Euronet Reports Fourth Quarter and Full Year Financial Results
- Revenues of
$865.7 million , a 7% increase from$811.5 million (16% increase on a constant currency1 basis). - Operating income of
$79.1 million , a 173% increase from$29.0 million (206% increase on a constant currency basis). - Adjusted operating income2 of
$79.1 million , a 17% increase from$67.6 million (31% increase on a constant currency basis). - Net income attributable to
Euronet of$67.7 million , or$1.31 diluted earnings per share (EPS), compared with net loss attributable toEuronet of$3.1 million , or$0.06 diluted loss per share. - Adjusted EBITDA3 of
$127.0 million , a 12% increase from$112.9 million (a 24% increase on a constant currency basis). - Adjusted earnings per share4 of
$1.39 , a 21% increase from$1.15 . Euronet's cash and cash equivalents were$1,131.2 million and ATM cash was$515.6 million , totaling$1,646.8 million as ofDecember 31, 2022 , and availability under its revolving credit facilities was approximately$740 million .
Euronet reports the following consolidated results for the full year 2022 compared with the same period of 2021:
- Revenues of
$3,358.8 million , a 12% increase from$2,995.5 million (22% increase on a constant currency basis). - Operating income of
$385.4 million , a 109% increase from$184.0 million (139% increase on a constant currency basis). - Adjusted operating income of
$385.4 million , a 73% increase from$222.6 million (98% increase on a constant currency basis). - Net income attributable to
Euronet of$231.0 million , or$4.41 diluted earnings per share, compared with$70.7 million , or$1.32 diluted earnings per share. - Adjusted EBITDA of
$565.3 million , a 43% increase from$395.0 million (60% increase on a constant currency basis). - Adjusted earnings per share3 of
$6.51 , a 76% increase from$3.69 .
See the reconciliation of non-GAAP items in the attached financial schedules.
“I am extremely pleased that we finished the year with our seventh consecutive quarter of double-digit constant currency consolidated revenue, adjusted operating income and adjusted EBITDA growth rates year-over-year, following the onset of the COVID-19 pandemic,” stated
“In a year where macroeconomic uncertainty has dominated the market, our three business segments have continued to show resiliency. Our balance sheet is strong which has allowed us to continue to invest in the right places to deliver strong growth rates in all three segments. The fourth quarter results were in line with our expectations, with favorable effects from foreign currency largely offset by higher-than-expected operating tax expense. As to inflationary impacts, we generally saw increases across all segments in salary expense, for us and our suppliers. On the revenue side, we did not see any direct impacts of inflation on our EFT and epay segments. However, in our Money Transfer segment, similar to what we saw earlier in the year, the average amount sent per transaction declined by about 3% or 4%, resulting in nearly a 1% decrease in average revenue per transaction. For the full year, our consolidated constant currency revenue came in ahead of 2019 revenue, with EFT, epay and Money Transfer contributing constant currency growth of 13%, 40% and 36% over 2019, respectively.”
“As I reflect on 2022, while we didn’t see a full travel recovery, we are encouraged by the apparent subsiding of the economic effects of the pandemic, and we are looking forward to travel continuing to improve towards pre-pandemic levels. I am proud of each of our segments for their continued success in gaining market share by expanding their products, services, networks and geographies, plus, I am energized by the success we have seen with our digital strategy. We have signed agreements with large corporations, like Grab, to utilize our Ren platform for their open-loop card issuing across several markets in
The fourth quarter and full year 2021 results reflect a contract asset impairment of
Taking into consideration current trends in the business and the global economy, the latest global COVID-19 landscape and historical seasonal patterns, the Company anticipates that its first quarter 2023 Adjusted EPS will be approximately
Segment and Other Results
The EFT Processing Segment reports the following results for the fourth quarter 2022 compared with the same period in 2021:
- Revenues of
$210.1 million , a 29% increase from$163.5 million (43% increase on a constant currency basis). - Operating income of
$19.1 million compared with$1.8 million . - Adjusted EBITDA of
$43.4 million , a 68% increase from$25.9 million (85% increase on a constant currency basis). - Transactions of 1,825 million, a 43% increase from 1,279 million.
- Total of 50,738 installed ATMs as of
December 31, 2022 , a 4% increase from 48,619. Operated 45,009 active ATMs as ofDecember 31, 2022 , a 5% increase from 42,713 as ofDecember 31, 2021 .
The EFT Processing Segment reports the following results for the full year 2022 compared with the same period in 2021:
- Revenues of
$924.2 million , a 56% increase from$591.2 million (75% increase on a constant currency basis). - Operating income of
$184.0 million compared with an operating loss of$0.4 million . - Adjusted EBITDA of
$279.4 million , a 209% increase from$90.5 million (247% increase on a constant currency basis). - Transactions of 6,459 million, a 48% increase from 4,366 million.
Revenue, operating income and adjusted EBITDA growth for both the fourth quarter and full year 2022 was driven by increased domestic and international withdrawal transactions resulting from a strong recovery in travel and more POS processing revenue following the acquisition of Piraeus Bank's merchant acquiring business in
The EFT Segment's total installed ATMs grew 4%, largely from the addition of more than 1,400 Euronet-owned ATMs and approximately 700 new outsourcing ATMs. The difference between installed and active ATMs relates to ATMs that have been seasonally deactivated. At the end of the fourth quarter of 2022, 5,729 ATMs have been temporarily deactivated due to seasonal closures.
The epay Segment reports the following results for the fourth quarter 2022 compared with the same period in 2021:
- Revenues of
$285.5 million , consistent with$286.9 million (9% increase on a constant currency basis). - Operating income of
$41.1 million , a 1% increase from$40.6 million (12% increase on a constant currency basis). - Adjusted EBITDA of
$42.6 million , consistent with$42.6 million (11% increase on a constant currency basis). - Transactions of 941 million, a 10% increase from 854 million.
- Point-of-sale ("POS") terminals of approximately 816,000 as of
December 31, 2022 , a 5% increase from approximately 775,000. - Retailer locations of approximately 358,000 as of
December 31, 2022 , a 7% increase from approximately 335,000.
The epay Segment reports the following results for the full year 2022 compared with the same period in 2021:
- Revenues of
$997.9 million , a 1% decrease from$1,011.4 million (8% increase on a constant currency basis). - Operating income of
$120.7 million , a 2% decrease from$122.9 million (10% increase on a constant currency basis). - Adjusted EBITDA of
$126.9 million , a 3% decrease from$131.4 million (8% increase on a constant currency basis). - Transactions of 3,836 million, a 23% increase from 3,120 million.
Fourth quarter and full year 2022 constant currency revenue, operating income, adjusted EBITDA and transaction growth was driven by continued expansion of digital branded payments and mobile growth, together with the continued expansion of the digital distribution channel and growth in loyalty rewards programs delivered by epay on behalf of new large retailers.
The Money Transfer Segment reports the following results for the fourth quarter 2022 compared with the same period in 2021:
- Revenues of
$372.1 million , a 2% increase from$363.3 million (9% increase on a constant currency basis). - Operating income of
$39.9 million compared with$2.7 million . - Adjusted operating income of
$39.9 million , a 3% decrease from$41.3 million (6% increase on a constant currency basis). - Adjusted EBITDA of
$48.1 million , a 4% decrease from$50.1 million (5% increase on a constant currency basis). - Total transactions of 39.4 million, a 10% increase from 35.7 million.
- Network locations of approximately 522,000 as of
December 31, 2022 , a 2% increase from approximately 510,000.
The Money Transfer Segment reports the following results for the full year 2022 compared with the same period in 2021:
- Revenues of
$1,444.5 million , a 3% increase from$1,401.0 million (9% increase on a constant currency basis). - Operating income of
$154 .5 million, a 29% increase from$119.6 million (43% increase on a constant currency basis). - Adjusted operating income of
$154.5 million , a 2% decrease from$158.2 million (8% increase on a constant currency basis). - Adjusted EBITDA of
$188.4 million , a 3% decrease from$194.2 million (7% increase on a constant currency basis). - Total transactions of 147.9 million, a 9% increase from 135.1 million.
Fourth quarter constant currency revenue, operating income, adjusted operating income and adjusted EBITDA growth was the result of 13% growth in
Full year 2022 constant currency revenue, operating income, adjusted operating income and adjusted EBITDA growth was the result of 12% growth in
The Money Transfer Segment added more than 32,000 network locations; however, it also closed approximately 20,000 locations in
Corporate and Other reports $21.0 million of expense for the fourth quarter 2022 compared with $16.1 million for the fourth quarter 2021. For the full year 2022, Corporate and Other reports
Balance Sheet and Financial Position
Unrestricted cash and cash equivalents on hand was $1,131.2 million as of
Total indebtedness was
Non-GAAP Measures
In addition to the results presented in accordance with
The Company does not provide a reconciliation of its forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for GAAP and the related GAAP and non-GAAP reconciliation, including adjustments that would be necessary for foreign currency exchange rate fluctuations and other charges reflected in the Company's reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.
(1) Constant currency financial measures are computed as if foreign currency exchange rates did not change from the prior period. This information is provided to illustrate the impact of changes in foreign currency exchange rates on the Company's results when compared to the prior period.
(2) Adjusted operating income is defined as operating income (loss) excluding contract asset impairment charges. Adjusted operating income represents a performance measure and is not intended to represent a liquidity measure.
(3) Adjusted EBITDA is defined as net income excluding, to the extent incurred in the period, interest expense, income tax expense, depreciation, amortization, share-based compensation, contract asset impairment charges and other non-operating or non-recurring items that are considered expenses or income under
(4) Adjusted earnings per share is defined as diluted
Conference Call and Slide Presentation
Euronet will host an analyst conference call on
A webcast replay will be available beginning approximately one hour after the event at http://ir.euronetworldwide.com and will remain available for one year.
About Euronet
Starting in
A leading global financial technology solutions and payment's provider, Euronet has developed an extensive global payment network that includes 50,738 installed ATMs, approximately 613,000 EFT POS terminals and a growing portfolio of outsourced debit and credit card services which are under management in 65 countries; card software solutions; a prepaid processing network of approximately 816,000 POS terminals at approximately 358,000 retailer locations in 63 countries; and a global money transfer network of approximately 522,000 locations serving 188 countries and territories. With corporate headquarters in
Statements contained in this news release that concern
EURONET WORLDWIDE, INC. | |||||
Condensed Consolidated Balance Sheets | |||||
(unaudited in millions) | |||||
As of | As of | ||||
December 31, | |||||
2022 | 2021 | ||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 1,131.2 | $ | 1,260.5 | |
ATM cash | 515.6 | 543.4 | |||
Restricted cash | 7.4 | 3.7 | |||
Settlement assets | 1,442.7 | 1,102.4 | |||
Trade accounts receivable, net | 270.8 | 203.0 | |||
Prepaid expenses and other current assets | 359.0 | 195.4 | |||
Total current assets | 3,726.7 | 3,308.4 | |||
Property and equipment, net | 336.6 | 345.4 | |||
Right of use lease assets, net | 149.7 | 161.5 | |||
1,016.6 | 739.4 | ||||
Other assets, net | 174.0 | 189.6 | |||
Total assets | $ | 5,403.6 | $ | 4,744.3 | |
LIABILITIES AND EQUITY | |||||
Current liabilities: | |||||
Settlement obligations | $ | 1,442.7 | $ | 1,102.4 | |
Accounts payable and other current liabilities | 858.1 | 693.2 | |||
Current portion of operating lease liabilities | 50.2 | 52.1 | |||
Short-term debt obligations | 3.1 | 4.9 | |||
Total current liabilities | 2,354.1 | 1,852.6 | |||
Debt obligations, net of current portion | 1,609.1 | 1,420.1 | |||
Operating lease liabilities, net of current portion | 102.6 | 111.4 | |||
Capital lease obligations, net of current portion | 1.3 | 2.9 | |||
Deferred income taxes | 28.4 | 46.5 | |||
Other long-term liabilities | 63.7 | 55.3 | |||
Total liabilities | 4,159.2 | 3,488.8 | |||
Equity | 1,244.4 | 1,255.5 | |||
Total liabilities and equity | $ | 5,403.6 | $ | 4,744.3 | |
EURONET WORLDWIDE, INC. | |||||||||||||||
Consolidated Statements of Operations | |||||||||||||||
(unaudited - in millions, except share and per share data) | |||||||||||||||
Year Ended | Three Months Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenues | $ | 3,358.8 | $ | 2,995.5 | $ | 865.7 | $ | 811.5 | |||||||
Operating expenses: | |||||||||||||||
Direct operating costs | 2,018.2 | 1,900.2 | 533.3 | 510.5 | |||||||||||
Contract asset impairment | — | 38.6 | — | 38.6 | |||||||||||
Salaries and benefits | 534.2 | 484.9 | 141.7 | 128.7 | |||||||||||
Selling, general and administrative | 285.1 | 252.0 | 77.5 | 69.7 | |||||||||||
Depreciation and amortization | 135.9 | 135.8 | 34.1 | 35.0 | |||||||||||
Total operating expenses | 2,973.4 | 2,811.5 | 786.6 | 782.5 | |||||||||||
Operating income | 385.4 | 184.0 | 79.1 | 29.0 | |||||||||||
Other income (expense): | |||||||||||||||
Interest income | 2.0 | 0.7 | 1.1 | 0.1 | |||||||||||
Interest expense | (37.5 | ) | (38.3 | ) | (10.9 | ) | (9.5 | ) | |||||||
Foreign currency exchange (loss) gain | (28.2 | ) | (10.8 | ) | 7.8 | 1.2 | |||||||||
Other income | 0.9 | — | 0.7 | — | |||||||||||
Total other expenses, net | (62.8 | ) | (48.4 | ) | (1.3 | ) | (8.2 | ) | |||||||
Income before income taxes | 322.6 | 135.6 | 77.8 | 20.8 | |||||||||||
Income tax expense | (91.9 | ) | (65.1 | ) | (10.0 | ) | (23.9 | ) | |||||||
Net income (loss) | 230.7 | 70.5 | 67.8 | (3.1 | ) | ||||||||||
Net (income) loss attributable to noncontrolling interests | 0.3 | 0.2 | (0.1 | ) | — | ||||||||||
Net income (loss) attributable to |
$ | 231.0 | $ | 70.7 | $ | 67.7 | $ | (3.1 | ) | ||||||
Add: Interest expense from assumed conversion of convertible notes, net of tax | 4.7 | — | 1.4 | — | |||||||||||
Net income (loss) for diluted earnings per share calculation | $ | 235.7 | $ | 70.7 | $ | 69.1 | $ | (3.1 | ) | ||||||
Earnings (loss) per share attributable to |
|||||||||||||||
$ | 4.41 | $ | 1.32 | $ | 1.31 | $ | (0.06 | ) | |||||||
Diluted weighted average shares outstanding | 53,463,308 | 53,529,576 | 52,771,936 | 51,945,097 | |||||||||||
EURONET WORLDWIDE, INC. | |||||||||||||||||||
Reconciliation of Net Income (Loss) to Operating Income (Expense), Adjusted Operating Income (Expense) and Adjusted EBITDA | |||||||||||||||||||
(unaudited - in millions) | |||||||||||||||||||
Three months ended |
|||||||||||||||||||
EFT Processing |
epay | Money Transfer |
Corporate Services |
Consolidated | |||||||||||||||
Net income | $ | 67.8 | |||||||||||||||||
Add: Income tax expense | 10.0 | ||||||||||||||||||
Add: Total other expense, net | 1.3 | ||||||||||||||||||
Operating income (expense) | $ | 19.1 | $ | 41.1 | $ | 39.9 | $ | (21.0 | ) | $ | 79.1 | ||||||||
Add: Depreciation and amortization | 24.3 | 1.5 | 8.2 | 0.1 | 34.1 | ||||||||||||||
Add: Share-based compensation | — | — | — | 13.8 | 13.8 | ||||||||||||||
Earnings (expense) before interest, taxes, depreciation, amortization, and share-based compensation (Adjusted EBITDA) (1) | $ | 43.4 | $ | 42.6 | $ | 48.1 | $ | (7.1 | ) | $ | 127.0 | ||||||||
Three months ended |
|||||||||||||||||||
EFT Processing |
epay | Money Transfer |
Corporate Services |
Consolidated | |||||||||||||||
Net loss | $ | (3.1 | ) | ||||||||||||||||
Add: Income tax expense | 23.9 | ||||||||||||||||||
Add: Total other expense, net | 8.2 | ||||||||||||||||||
Operating income (expense) | $ | 1.8 | $ | 40.6 | $ | 2.7 | $ | (16.1 | ) | $ | 29.0 | ||||||||
Add: Contract asset impairment charges | — | — | 38.6 | — | 38.6 | ||||||||||||||
Adjusted operating income (expense) | 1.8 | 40.6 | 41.3 | (16.1 | ) | 67.6 | |||||||||||||
Add: Depreciation and amortization | 24.1 | 2.0 | 8.8 | 0.1 | 35.0 | ||||||||||||||
Add: Share-based compensation | — | — | — | 10.3 | 10.3 | ||||||||||||||
Earnings (expense) before interest, taxes, depreciation, amortization, share-based compensation and contract asset impairment charges (Adjusted EBITDA) (1) | $ | 25.9 | $ | 42.6 | $ | 50.1 | $ | (5.7 | ) | $ | 112.9 |
(1) Adjusted operating income (expense) and adjusted EBITDA are non-GAAP measures that should be considered in addition to, and not a substitute for, net income (loss) computed in accordance with |
EURONET WORLDWIDE, INC. | |||||||||||||||||||
Reconciliation of Net Income to Operating Income (Loss), Adjusted Operating Income (Loss) and Adjusted EBITDA | |||||||||||||||||||
(unaudited - in millions) | |||||||||||||||||||
Twelve months ended December 31, 2022 | |||||||||||||||||||
EFT Processing |
epay | Money Transfer |
Corporate Services |
Consolidated | |||||||||||||||
Net income | $ | 230.7 | |||||||||||||||||
Add: Income tax expense | 91.9 | ||||||||||||||||||
Add: Total other expense, net | 62.8 | ||||||||||||||||||
Operating income (expense) | $ | 184.0 | $ | 120.7 | $ | 154.5 | $ | (73.8 | ) | $ | 385.4 | ||||||||
Add: Depreciation and amortization | 95.4 | 6.2 | 33.9 | 0.4 | 135.9 | ||||||||||||||
Add: Share-based compensation | — | — | — | 44.0 | 44.0 | ||||||||||||||
Earnings (expense) before interest, taxes, depreciation, amortization and share-based compensation (Adjusted EBITDA) (1) | $ | 279.4 | $ | 126.9 | $ | 188.4 | $ | (29.4 | ) | $ | 565.3 | ||||||||
Twelve months ended December 31, 2021 | |||||||||||||||||||
EFT Processing |
epay | Money Transfer |
Corporate Services |
Consolidated | |||||||||||||||
Net income | $ | 70.5 | |||||||||||||||||
Add: Income tax expense | 65.1 | ||||||||||||||||||
Add: Total other expense, net | 48.4 | ||||||||||||||||||
Operating (loss) income | $ | (0.4 | ) | $ | 122.9 | $ | 119.6 | $ | (58.1 | ) | $ | 184.0 | |||||||
Add: Contract asset impairment | — | — | 38.6 | — | 38.6 | ||||||||||||||
Adjusted operating (loss) income(1) | (0.4 | ) | 122.9 | 158.2 | (58.1 | ) | 222.6 | ||||||||||||
Add: Depreciation and amortization | 90.9 | 8.5 | 36.0 | 0.4 | 135.8 | ||||||||||||||
Add: Share-based compensation | — | — | — | 36.6 | 36.6 | ||||||||||||||
Earnings (expense) before interest, taxes, depreciation, amortization, share-based compensation and contract asset impairment charges (Adjusted EBITDA) (1) | $ | 90.5 | $ | 131.4 | $ | 194.2 | $ | (21.1 | ) | $ | 395.0 |
(1) Adjusted operating income (loss) and adjusted EBITDA are non-GAAP measures that should be considered in addition to, and not a substitute for, net income (loss) computed in accordance with
EURONET WORLDWIDE, INC. | |||||||||||||||
Reconciliation of Adjusted Earnings per Share | |||||||||||||||
(unaudited - in millions, except share and per share data) | |||||||||||||||
Year Ended | Three Months Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income (loss) attributable to |
$ | 231.0 | $ | 70.7 | $ | 67.7 | $ | (3.1 | ) | ||||||
Foreign currency exchange loss (gain) | 28.2 | 10.8 | (7.8 | ) | (1.2 | ) | |||||||||
Intangible asset amortization(1) | 27.0 | 23.1 | 6.9 | 5.6 | |||||||||||
Share-based compensation(2) | 44.0 | 36.6 | 13.8 | 10.3 | |||||||||||
Contract asset impairment | — | 38.6 | — | 38.6 | |||||||||||
Non-cash interest accretion(3) | — | 16.0 | — | 4.1 | |||||||||||
Income tax effect of above adjustments(4) | 12.7 | (13.8 | ) | 7.1 | (6.6 | ) | |||||||||
Non-cash GAAP tax (benefit) expense(5) | (11.3 | ) | 16.4 | (17.8 | ) | 13.1 | |||||||||
Adjusted earnings(6) | $ | 331.6 | $ | 198.4 | $ | 69.9 | $ | 60.8 | |||||||
Adjusted earnings per share - diluted(6) | $ | 6.51 | $ | 3.69 | $ | 1.39 | $ | 1.15 | |||||||
Diluted weighted average shares outstanding (GAAP) | 53,463,308 | 53,529,576 | 52,771,936 | 51,945,097 | |||||||||||
Effect of adjusted EPS dilution of convertible notes | (2,781,818 | ) | — | (2,781,818 | ) | 739,763 | |||||||||
Effect of unrecognized share-based compensation on diluted shares outstanding | 216,060 | 246,198 | 183,422 | 222,193 | |||||||||||
Adjusted diluted weighted average shares outstanding | 50,897,550 | 53,775,774 | 50,173,540 | 52,907,053 | |||||||||||
(1) Intangible asset amortization of $6.9 million and $5.6 million are included in depreciation and amortization expense of $34.1 million and $35.0 million for the three months ended
(2) Share-based compensation of $13.8 million and $10.3 million are included in salaries and benefits expense of
(3) Non-cash interest accretion of
(4) Adjustment is the aggregate
(5) Adjustment is the non-cash GAAP tax impact recognized on certain items such as the utilization of certain material net deferred tax assets and amortization of indefinite-lived intangible assets.
(6) Adjusted earnings and adjusted earnings per share are non-GAAP measures that should be considered in addition to, and not as a substitute for, net income and earnings per share computed in accordance with
Contact:
+1-913-327-4200
Source: Euronet Worldwide, Inc.