Euronet Worldwide Reports First Quarter 2016 Financial Results
- Revenues of
$437.9 million , an 11% increase from$395.2 million (14% increase on a constant currency(1) basis). - Operating income of
$41.9 million , a 30% increase from$32.2 million (34% increase on a constant currency basis). - Adjusted EBITDA(2) of
$64.9 million , a 24% increase from$52.4 million (28% increase on a constant currency basis). - Net income attributable to
Euronet of$29.1 million or$0.53 diluted earnings per share, compared with net income of$7.2 million or$0.13 diluted earnings per share. - Adjusted cash earnings per share(3) of
$0.69 , a 23% increase from$0.56 . - Transactions of 711 million, a 12% increase from 634 million.
See the reconciliation of non-GAAP items in the attached financial schedules.
"We had a strong start to 2016, delivering adjusted cash earnings per share growth of 23%, the 13th consecutive quarter we have achieved double-digit adjusted cash EPS growth," stated
Segment and Other Results
The EFT Processing Segment reports the following results for the first quarter 2016 compared with the same period or date in 2015:
- Revenues of
$86.6 million , a 16% increase from$74.7 million (21% increase on a constant currency basis). - Operating income of
$13.3 million , a 17% increase from$11.4 million (18% increase on a constant currency basis). - Adjusted EBITDA of
$22.1 million , a 19% increase from$18.6 million (22% increase on a constant currency basis). - Transactions of 370 million, a 23% increase from 302 million.
- Operated 24,761 ATMs as of
March 31, 2016 , a 19% increase from 20,863.
Constant currency revenue, operating income and adjusted EBITDA growth was the result of a 19% expansion of the ATM network and a 23% growth in transactions, primarily in
The year-over-year change in ATM count was due to the deployment of approximately 3,900 new ATMs across
The epay Segment reports the following results for the first quarter 2016 compared with the same period or date in 2015:
- Revenues of
$170.1 million , a 3% decrease from$175.9 million (1% increase on a constant currency basis). - Operating income of
$15.8 million , a 1% increase from$15.6 million (6% increase on a constant currency basis). - Adjusted EBITDA of
$18.9 million , a 1% increase from$18.8 million (5% increase on a constant currency basis). - Transactions of 322 million, a 1% increase from 318 million.
- Point-of-sale ("POS") terminals of approximately 658,000 as of
March 31, 2016 , a 2% decrease from approximately 672,000 as ofMarch 31, 2015 . - Retailer locations of approximately 301,000 as of
March 31, 2016 , a 2% decrease from approximately 308,000.
epay constant currency revenue, operating income and adjusted EBITDA growth was primarily the result of increased sales of non-mobile products, partially offset by certain mobile content transaction declines.
The increase in transactions was largely driven by growth in
The Money Transfer Segment reports the following results for the first quarter 2016 compared with the same period or date in 2015:
- Revenues of
$181.6 million , a 25% increase from$144.8 million (27% increase on a constant currency basis). - Operating income of
$21.5 million , a 56% increase from$13.8 million (59% increase on a constant currency basis). - Adjusted EBITDA of
$28.8 million , a 40% increase from$20.5 million (44% increase on a constant currency basis). - Total transactions of 18.7 million, a 35% increase from 13.9 million.
- Network locations of approximately 310,000 as of
March 31, 2016 , a 26% increase from approximately 246,000.
Money Transfer constant currency revenue, operating income, adjusted EBITDA and transaction growth was driven by an increase in Ria's organic business including double-digit transaction growth in
Money transfers grew 39% and non-transfer transactions such as bill payment and international mobile recharge grew 5%, resulting in total transaction growth of 35%.
Corporate and Other
reports
Balance Sheet and Financial Position
Unrestricted cash on hand was
Guidance
The Company currently expects adjusted cash earnings per share for the second quarter 2016, assuming foreign currency exchange rates remain stable through the end of the quarter, to be approximately
Non-GAAP Measures
In addition to the results presented in accordance with
(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 EBITDA is defined as net income excluding interest, income tax expense, depreciation, amortization, share-based compensation and other non-operating or non-recurring items that are considered expenses under
(3) Adjusted cash earnings per share is defined as diluted
Conference Call and Slide Presentation
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
Statements contained in this news release that concern
| EURONET WORLDWIDE, INC. | ||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||||
| (in millions) | ||||||||||||
| As of | ||||||||||||
| As of | ||||||||||||
| 2016 | December 31, | |||||||||||
| (unaudited) | 2015 | |||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 548.5 | $ | 457.5 | ||||||||
| Restricted cash | 37.7 | 45.3 | ||||||||||
| Inventory - PINs and other | 63.3 | 72.1 | ||||||||||
| Trade accounts receivable, net | 355.0 | 423.3 | ||||||||||
| Prepaid expenses and other current assets | 129.4 | 132.8 | ||||||||||
| Total current assets | 1,133.9 | 1,131.0 | ||||||||||
| Property and equipment, net | 169.7 | 157.4 | ||||||||||
| 874.7 | 853.2 | |||||||||||
| Other assets, net | 53.9 | 51.1 | ||||||||||
| Total assets | $ | 2,232.2 | $ | 2,192.7 | ||||||||
| LIABILITIES AND EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable and other current liabilities | $ | 857.9 | $ | 889.8 | ||||||||
| Short-term debt obligations | 14.1 | 14.1 | ||||||||||
| Total current liabilities | 872.0 | 903.9 | ||||||||||
| Debt obligations, net of current portion | 478.6 | 405.5 | ||||||||||
| Capital lease obligations, net of current portion | 5.1 | 4.1 | ||||||||||
| Deferred income taxes | 36.0 | 33.9 | ||||||||||
| Other long-term liabilities | 20.8 | 19.3 | ||||||||||
| Total liabilities | 1,412.5 | 1,366.7 | ||||||||||
| Equity | 819.7 | 826.0 | ||||||||||
| Total liabilities and equity | $ | 2,232.2 | $ | 2,192.7 | ||||||||
| Consolidated Statements of Income | ||||||||
| (unaudited - in millions, except share and per share data) | ||||||||
| Three Months Ended | ||||||||
| 2016 | 2015 | |||||||
| Revenues | $ | 437.9 | $ | 395.2 | ||||
| Operating expenses: | ||||||||
| Direct operating costs | 271.6 | 251.4 | ||||||
| Salaries and benefits | 67.2 | 60.4 | ||||||
| Selling, general and administrative | 37.9 | 33.9 | ||||||
| Depreciation and amortization | 19.3 | 17.3 | ||||||
| Total operating expenses | 396.0 | 363.0 | ||||||
| Operating income | 41.9 | 32.2 | ||||||
| Other income (expense): | ||||||||
| Interest income | 0.5 | 0.6 | ||||||
| Interest expense | (6.4 | ) | (5.7 | ) | ||||
| Foreign currency exchange gain (loss) | 2.2 | (13.0 | ) | |||||
| Total other expense, net | (3.7 | ) | (18.1 | ) | ||||
| Income before income taxes | 38.2 | 14.1 | ||||||
| Income tax expense | (9.1 | ) | (7.0 | ) | ||||
| Net income | 29.1 | 7.1 | ||||||
| Net loss attributable to noncontrolling interests | — | 0.1 | ||||||
| Net income attributable to | $ | 29.1 | $ | 7.2 | ||||
| Earnings per share attributable to | ||||||||
| | $ | 0.53 | $ | 0.13 | ||||
| Diluted weighted average shares outstanding | 54,529,588 | 53,625,641 | ||||||
| Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA | ||||||||||||||||||||
| (unaudited - in millions) | ||||||||||||||||||||
| Three months ended | ||||||||||||||||||||
| EFT Processing | epay | Money Transfer | Corporate Services | Consolidated | ||||||||||||||||
| Net income | $ | 29.1 | ||||||||||||||||||
| Add: Income tax expense | 9.1 | |||||||||||||||||||
| Add: Total other expense, net | 3.7 | |||||||||||||||||||
| Operating income (expense) | $ | 13.3 | $ | 15.8 | $ | 21.5 | $ | (8.7 | ) | $ | 41.9 | |||||||||
| Add: Depreciation and amortization | 8.8 | 3.1 | 7.3 | 0.1 | 19.3 | |||||||||||||||
| Add: Share-based compensation | — | — | — | 3.7 | 3.7 | |||||||||||||||
| Earnings (expense) before interest, taxes, depreciation, amortization and share-based compensation (Adjusted EBITDA) (1) | $ | 22.1 | $ | 18.9 | $ | 28.8 | $ | (4.9 | ) | $ | 64.9 | |||||||||
| Three months ended | ||||||||||||||||||||
| EFT Processing | epay | Money Transfer |
Corporate Services | Consolidated | ||||||||||||||||
| Net income | $ | 7.1 | ||||||||||||||||||
| Add: Income tax expense | 7.0 | |||||||||||||||||||
| Add: Total other expense, net | 18.1 | |||||||||||||||||||
| Operating income (expense) | $ | 11.4 | $ | 15.6 | $ | 13.8 | $ | (8.6 | ) | $ | 32.2 | |||||||||
| Add: Depreciation and amortization | 7.4 | 3.1 | 6.7 | 0.1 | 17.3 | |||||||||||||||
| Add: Share-based compensation | (0.2 | ) | 0.1 | — | 3.0 | 2.9 | ||||||||||||||
| Earnings (expense) before interest, taxes, depreciation, amortization and share-based compensation (Adjusted EBITDA) (1) | $ | 18.6 | $ | 18.8 | $ | 20.5 | $ | (5.5 | ) | $ | 52.4 | |||||||||
(1) Adjusted EBITDA is a non-GAAP measure that should be considered in addition to, and not a substitute for, net income computed in accordance with
| Reconciliation of Adjusted Cash Earnings per Share | ||||||||
| (unaudited - in millions, except share and per share data) | ||||||||
| Three Months Ended | ||||||||
| 2016 | 2015 | |||||||
| Net income attributable to | $ | 29.1 | $ | 7.2 | ||||
| Foreign currency exchange (gain) loss | (2.2 | ) | 13.0 | |||||
| Intangible asset amortization | 6.4 | 6.1 | ||||||
| Share-based compensation | 3.7 | 2.9 | ||||||
| Income tax effect of above adjustments | (1.9 | ) | (1.2 | ) | ||||
| Non-cash interest accretion | 2.6 | 2.4 | ||||||
| Adjusted cash earnings(1) | $ | 37.7 | $ | 30.4 | ||||
| Adjusted cash earnings per share - diluted(1) | $ | 0.69 | $ | 0.56 | ||||
| Diluted weighted average shares outstanding (GAAP) | 54,529,588 | 53,625,641 | ||||||
| Effect of unrecognized share-based compensation on diluted shares outstanding | 233,357 | 312,565 | ||||||
| Adjusted diluted weighted average shares outstanding | 54,762,945 | 53,938,206 | ||||||
(1) Adjusted cash earnings and adjusted cash 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:Euronet Worldwide, Inc. Stephanie Taylor +1-913-327-4200
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