UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT PURSUANT TO SECTION 13 or 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
Date
of Report (date of earliest event reported):
February
21, 2006
Euronet
Worldwide, Inc.
(Exact
name of registrant as specified in its charter)
|
Delaware
|
|
000-31648
|
|
74-2806888
|
|
(State
or other jurisdiction
of
incorporation)
|
|
(Commission
File Number)
|
|
(IRS
Employer
ID
Number)
|
|
4601
College Boulevard, Suite 300
Leawood,
Kansas
|
|
66211
|
|
(Address
of principal executive offices)
|
|
(Zip
Code)
|
Registrant’s
Telephone Number, including area code: (913) 327-4200
N/A
(Former
name or former address, if changed since last report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
| o |
Written
communications pursuant to Rule 425 under the Securities Act
(17 CFR
230.425)
|
| o |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
| o |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR
240.14d-2(b))
|
| o |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR
240.13e-4(c))
|
ITEM
2.02. Results of Operations and Financial Condition
On
February 21, 2006, Euronet Worldwide, Inc. issued a press release to announce
its financial results for the full year and fourth quarter ended December
31,
2005. The press release is attached hereto as Exhibit 99.1.
The
information in this Current Report, including without limitation Exhibit
99.1,
is being furnished and shall not be deemed “filed” for the purposes of Section
18 of the Securities Exchange Act of 1934, or otherwise subject to the
liabilities of that Section. The information in this Current Report shall
not be
incorporated by reference into any registration statement or other document
filed pursuant to the Securities Act of 1933, except as shall be expressly
set
forth by specific reference in such a filing.
ITEM
9.01. Financial Statements and Exhibits
|
|
(c)
|
Exhibits
|
Exhibit
99.1 - Press Release dated February 21, 2006
2
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
| Euronet Worldwide, Inc. | ||
| |
|
|
| Date: February 21, 2006 | By: | /s/ Rick L. Weller |
|
Rick L. Weller |
||
| Chief Financial Officer | ||
3
 |
N
e w s R e l e a s
e |
||||||||
|
Corporate
Headquarters
4601
College
Boulevard, Suite 300
Leawood,
Kansas 66211 USA
+1-913-327-4200
|
For
Immediate Release Date:
February 21, 2006
|
||||||||
|
Media
Contact:
|
Shruthi
Dyapaiah
|
1-913-327-4225
sdyapaiah@euronetworldwide.com
|
|||||||
| Investor Relations (US): | IR Dept |
1-913-327-4200
investor@euronetworldwide.com
|
|||||||
Euronet
Worldwide Reports 2005 Earnings Growth of 61%
LEAWOOD,
KANSAS, USA—February 21, 2006—Euronet
Worldwide, Inc. (NASDAQ: EEFT), a leading electronic payments provider, today
announced its full year and fourth quarter 2005 financial results.
Euronet’s
full year 2005 results were as follows:
|
·
|
Annual
consolidated revenues of $531.2 million, an increase of 39% over
2004
revenues of $381.1 million.
|
|
|
·
|
Adjusted
EBITDA (operating income plus depreciation and amortization) of
$75.2
million, a 47% increase over 2004 Adjusted EBITDA of $51.1 million.
|
|
|
·
|
Operating
income of $52.8 million, a 50% increase over 2004 operating income
of
$35.3 million.
|
|
|
Net
income of $27.4 million, or $0.74 diluted earnings per share, compared
to
$18.4 million, or $0.55 diluted earnings per share, for 2004.
|
||
|
·
|
Net
income, excluding the effects of foreign exchange losses and losses
on
discontinued operations for the final liquidation of the company’s French
subsidiary, of $35.5 million, or $0.95 diluted earnings per share,
a 61%
increase, compared to $19.8 million, or $0.59 diluted earnings
per share,
for 2004, excluding the effects of foreign exchange losses and
losses on
the early retirement of debt.
|
The
company’s fourth quarter 2005 financial highlights included:
|
·
|
Consolidated
revenues of $144.3 million, compared to $113.1 million for the
fourth
quarter 2004 revenues.
|
|
|
·
|
Adjusted
EBITDA of $20.6 million, compared to $16.1 million for the fourth
quarter
2004.
|
|
|
·
|
Operating
income of $14.7 million, compared to $11.5 million in the fourth
quarter
2004.
|
|
|
·
|
Net
income of $8.5 million, or $0.22 diluted earnings per share, compared
to
net income for the fourth quarter 2004 of $4.8 million, or $0.14
per
share.
|
|
|
·
|
The
fourth quarter 2005 net income included a foreign exchange loss
of $0.8
million and a $0.6 million loss on discontinued operations. Excluding
these losses, diluted earnings per share were
$0.25, or $10.7 million,
for the fourth quarter 2005. The fourth quarter 2004 net income
included a
foreign exchange loss of $1.4 million and a $0.8 million loss on
the early
retirement of debt; excluding these losses, earnings per share
were $0.20,
or $7.0 million.
|
Segment
Results and Other
The
EFT Processing Segment
reported
the following results:
Annual
revenues for 2005 of $105.6 million, an increase of $28.0 million, or 36%,
over
2004 revenues of $77.6 million.
|
·
|
Adjusted
EBITDA for the year 2005 of $35.0 million, compared to $23.4 million
for
the year 2004.
|
|
|
·
|
Operating
income for the year 2005 of $25.6 million, compared to $15.0 million
for
the year 2004.
|
|
|
·
|
Fourth
quarter 2005 revenues of $29.3 million, up 24% over fourth quarter
2004
revenues of $23.7 million.
|
|
|
·
|
Fourth
quarter 2005 Adjusted EBITDA of $9.5 million, compared to fourth
quarter
2004 Adjusted EBITDA of $8.2 million.
|
|
|
·
|
Fourth
quarter 2005 operating income of $7.2 million, compared to $5.8
million
reported in the fourth quarter
2004.
|
The
year-over-year increases in revenue, operating income and Adjusted EBITDA
were
largely attributable to a 26% increase in ATMs under management and the full
year impact of the implementation of ATM outsourcing agreements in India,
Romania and Poland.
The
segment completed the year with 7,211 ATMs owned or operated, compared to
5,742
ATMs at the end of the 2004. The segment processed 361 million transactions
for
the full year 2005 and 103.0 million transactions in the fourth quarter 2005,
compared to 232 million and 73.4 million transactions for the same periods
last
year, respectively. These improved results are largely attributable to the
continued growth in ATMs under management, primarily in the Indian, Polish
and
Romanian markets, together with transaction growth from those ATMs. Euronet
owns
and/or operates ATMs in Hungary, Poland, Germany, Croatia, the Czech Republic,
U.K., Greece, Romania, Slovakia, Albania, Serbia & Montenegro, India and
China among others.
The
Prepaid Processing Segment
reported
the following results:
|
·
|
Annual
revenues for 2005 of $411.3 million, an increase of $121.5 million,
or
42%, over 2004 revenues of $289.8 million.
|
|
|
·
|
Adjusted
EBITDA for 2005 of $46.5 million, compared to $34.6 million for
2004.
|
|
|
·
|
Annual
operating income for 2005 was $34.7 million, compared to the
prior year’s
results of $28.3 million.
|
|
|
·
|
Fourth
quarter 2005 revenues of $111.7 million, up 30% compared to the
$85.9
million reported for the fourth quarter 2004.
|
|
|
·
|
Fourth
quarter 2005 Adjusted EBITDA of $12.6 million, compared to $9.8
million
reported in the fourth quarter 2004.
|
|
|
·
|
Fourth
quarter 2005 operating income of $9.3 million, compared to $7.9
million
reported in the fourth quarter
2004.
|
Total
transactions processed by the Prepaid Processing Segment during 2005 increased
to 348 million, compared to 229 million for 2004. Total transactions processed
increased to 100.0 million for the fourth quarter 2005 compared to fourth
quarter 2004 transactions of 65.8 million. The Prepaid Processing Segment
processes electronic point-of-sale prepaid transactions at more than 237,000
point-of-sale terminals across more than 127,000 retailer locations in Europe,
Asia Pacific, Africa and the U.S. As previously announced, the company intends
to expand its Prepaid Processing Segment both domestically and internationally
through internal sales and promotional efforts as well as, if appropriate,
acquisitions.
The
Prepaid Processing Segment’s year-over-year revenue improvements were the result
of a continuation of growth across all markets, transaction growth from the
full
year impact of 2004 acquisitions and the partial year impact of 2005
acquisitions. During 2005, Euronet expanded its prepaid business in the U.S.
through the March 2005 acquisition of Dynamic Telecom, Inc., a prepaid wireless
top-up company, and the July 2005 acquisition of TelecommUSA, a licensed
money transfer and bill payment company, and in Europe through the March
2005
acquisitions of Telerecarga S.A., a Spanish prepaid wireless top-up company
and
U.K.- based ATX Software Ltd., in which it increased its ownership from 10%
to
51% by acquiring an additional 41% of the shares of that company. The annual
2005 results included approximately $6.2 million in amortization of acquired
intangible assets in the Prepaid Processing Segment.
Corporate
and Other had
$11.0
million of operating expenses for 2005, compared to $9.8 million for 2004.
For
the fourth quarter 2005, Corporate and Other expenses were $2.6 million,
compared to $2.8 million in the fourth quarter 2004. The quarter-over-quarter
decrease was largely attributable to professional fees in support of merger
and
acquisition activity.
Combining
all segments, transactions processed in 2005 were 709 million compared to
461
million processed in 2004, a 54% increase. In the fourth quarter 2005, again
all
segments combined, the company processed 203 million transactions compared
to
fourth quarter 2004 processed transactions of 139 million, a 46% increase.
These
increases were primarily due to the full year impact of the EFT Processing
Segment’s implementation of ATM outsourcing agreements in India, Romania and
Poland, combined with continued growth and acquisitions in the Prepaid
Processing Segment.
The
company’s unrestricted cash on hand was $219.9 million as of December 31, 2005
as compared to $124.2 million at December 31, 2004. The increase in unrestricted
cash was due to $169.9 million in net proceeds from the October 2005 issuance
of
3.5% convertible bonds together with $75.2 million in Adjusted EBITDA offset
by
an aggregate $149.4 million for acquisitions, capital expenditures, interest,
taxes paid and other items. Euronet’s total indebtedness was $355.6 million as
of December 31, 2005, compared to $166.2 million at December 31, 2004. The
change in indebtedness included additions of $175.0 million for the
3.5% convertible
debentures, assumed acquisition indebtedness and short-term borrowings to
support seasonal working capital requirements.
The
company’s total assets as of December 31, 2005 were $894.4 million, compared to
$618.5 million, as of December 31, 2004. The increase in total assets was
largely the result of investments made in acquisitions, increased restricted
cash and accounts receivable related to the prepaid business, and cash held
at
year-end 2005 related to unused proceeds of the 3.5% convertible bonds.
Stockholders’ equity was $206.4 million at December 31, 2005, compared to $141.9
million at the end of 2004. The increase in stockholders’ equity was largely
related to the generation of net income in 2005 of $27.4 million, together
with
the issuance of common stock in connection with acquisitions.
The
company announces the January 2006 acquisition of the assets of Essentis
Limited, a U.K. company that owns a leading card issuing and merchant acquiring
software package. These assets were purchased out of an administration
proceeding for a nominal purchase price of approximately $3.0 million, including
assumption of certain liabilities. The Essentis software product constitutes
a
significant addition to the company’s outsourcing and software offerings to
banks. The company expects Essentis to generate operating losses of
approximately $0.01 per share in each of the first two quarters of 2006,
with
improving results in the last two quarters.
The
company also announced that it expects earnings per share for the first quarter
2006 to be approximately $0.24, excluding the effects of foreign exchange
gains
or losses, discontinued operations, stock-based compensation charges, and
or
other non-operating or unusual items that cannot be accurately projected.
These
expected earnings reflect a seasonal reduction in transactions during the
first
quarter, as well as operating losses from Essentis. The company intends to
commence accounting for stock-based compensation in accordance with Statement
of
Financial Accounting Standards No. 123R (“SFAS 123R”) in the first quarter, as
required. The company estimates that stock-based compensation charges in
the
first quarter 2006 will be approximately $1.6 million, or $0.04 per share.
The
company intends to adopt SFAS 123R using the “modified retrospective
application” method and, accordingly, it will restate all prior
periods for comparability.
In
December 2004, the company issued $140 million in convertible debentures
that,
if converted, would have a dilutive effect on the company’s stock. The
debentures are potentially convertible into approximately 4.2 million shares
of
common stock, subject to adjustment. As required by EITF 04-8, “The Effect of
Contingently Convertible Debt on Diluted Earnings per Share,” regardless of
whether the conditions upon which the debentures would be convertible into
shares of the company’s common stock have been met, if dilutive, the impact of
the contingently issuable shares is included in the calculation of diluted
earnings per share under the “if converted” method. As in third quarter 2005,
the assumed conversion of the debentures was dilutive for the fourth quarter
2005. Accordingly, for the fourth quarter 2005, 4.2 million contingently
issuable shares have been assumed to be outstanding for the period and $0.8
million in interest charges and amortization of debt issuance costs have
been
excluded from income available to common shareholders to determine diluted
earnings per share. These convertible debentures were not dilutive when
determining the full year per share earnings. The company expects
these debentures to continue to be dilutive in future periods.
In
October 2005, the company completed the sale of $175 million aggregate principal
amount of its 3.50% Convertible Debentures due 2025 to qualified institutional
buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.
Euronet will continue to use the net proceeds of the offering for general
corporate purposes, which may include general operations, share repurchases,
acquisitions or other strategic investments. The assumed conversion of the
debentures was not dilutive for the fourth quarter 2005, or for the full
year.
The impact on future earnings per share may be dilutive if earnings per share
continue to increase, and, accordingly, 4.3 million shares would be included,
and approximately $6.9 million in annual interest charges and amortization
of
debt issuance costs would be excluded from income available to common
shareholders to determine diluted earnings per share.
We
believe that Adjusted EBITDA provides useful information to investors because
it
is an indicator of the strength and performance of our ongoing business
operations, including our ability to fund capital expenditures, acquisitions
and
operations and to incur and service debt. While depreciation and amortization
are considered operating costs under generally accepted accounting principles,
these expenses primarily represent non-cash current period allocation of
costs
associated with long-lived assets acquired in prior periods. Adjusted EBITDA
is
a calculation commonly used as a basis for investors, analysts and credit
rating
agencies to evaluate and compare the periodic and future operating performance
and value of companies within the payment processing industry. Management
analyzes historical results adjusted for certain items that are non-operational
or not necessarily ongoing in nature and that are incremental to the baseline
of
the business. Generally, these items include gains or losses associated with
the
sale of business assets or operations, market development costs, foreign
exchange translations, discontinued operations, early debt retirement and
other
similar items as discussed in this press release; management believes the
exclusion of these items provides a better basis for evaluating the underlying
business unit performance. The attached schedules provide a full reconciliation
of any such non-GAAP financial measures.
Euronet
Worldwide will host an analyst conference call on Wednesday, February 22,
2006,
at 10:00 a.m. U.S. Eastern Time to discuss these results. The conference
call
will be broadcast on the Internet and can be accessed via the Euronet Worldwide
Internet site at www.euronetworldwide.com or via Vcall at http://www.vcall.com/IC/CEPage.asp?ID=99771.
Participants should go to the web site at least 15 minutes before this event
to
download and install any necessary audio software. For those without Internet
access, the conference call-in number is +1-877-407-9210 (USA) or
+1-201-689-8049 (non-USA). The password is "Euronet."
For
those unable to attend the live broadcast, a replay will be available beginning
approximately one hour after the event at http://www.vcall.com/IC/CEPage.asp?ID=99771as
well as via phone. To dial in for the replay, the call-in number is
+1-877-660-6853 (USA) or +1-201-612-7415 (non-USA). The account number is
286
and the conference ID number is 187110. The call and webcast replay will
be
available for one month. You can also access the Earnings presentation at
www.euronetworldwide.com/investors/library/presentations.aspNo
fees are charged to access any event.
About
Euronet Worldwide
Euronet
Worldwide is an industry leader in processing secure electronic financial
transactions. The company offers outsourcing and consulting services, integrated
EFT software, network gateways, electronic prepaid top-up services to financial
institutions, mobile operators and retailers, as well as electronic consumer
money transfer and bill payment services. Euronet operates and services the
largest pan-European group of ATMs and operates the largest Indian shared
ATM
network. Euronet is also one of the largest providers of prepaid processing,
or
top-up services, for prepaid mobile airtime. The company is a licensed
electronic money transmitter and bill payment company via Euronet Payments
and
Remittance, Inc. The company has processing centers located in the U.S.,
Europe
and Asia, and processes electronic top-up transactions at more than 237,000
point-of-sale terminals across more than 127,000 retailers in Europe, Asia
Pacific, Africa and the U.S. With corporate headquarters in Leawood, Kansas,
USA, and 23 worldwide offices, Euronet serves clients in more than 80 countries.
Visit the company’s web site at www.euronetworldwide.com.
Any
statements contained in this news release that concern the company's or
management's intentions, expectations, or predictions of future performance,
are
forward-looking statements. Euronet's actual results may vary materially
from
those anticipated in such forward-looking statements as a result of a number
of
factors, including: technological developments affecting the market for the
company’s products and services; foreign exchange fluctuations; and changes in
laws and regulations affecting the company's business. These risks and other
risks are described in the company’s periodic filings with the Securities and
Exchange Commission, including but not limited to Euronet’s Form 10-K for the
year ended December 31, 2004 and its Form 10-Q for the periods ended March
31,
2005, June 30, 2005 and September 30, 2005. Copies of these filings may be
obtained by contacting the company or the SEC. Euronet
does not intend to update these forward-looking statements and undertakes
no
duty to any person to provide any such update under any
circumstances.
|
EURONET
WORLDWIDE, INC.
|
|||||||||
|
Consolidated
Statement of Income and Comprehensive Income
|
|||||||||
|
(unaudited
- in thousands, except per share
data)
|
|
Year
Ended
|
Three
Months Ended
|
||||||||||||
|
December
31,
|
December
31,
|
||||||||||||
|
2005
|
2004
|
2005
|
2004
|
||||||||||
| Consolidated Statements of Income Data: | |||||||||||||
|
Revenues:
|
|||||||||||||
|
EFT
Processing
|
$
|
105,551
|
$
|
77,600
|
$
|
29,306
|
$
|
23,728
|
|||||
|
Prepaid
Processing
|
411,279
|
289,810
|
111,749
|
85,898
|
|||||||||
|
Software
and related revenue
|
14,329
|
13,670
|
3,263
|
3,453
|
|||||||||
|
Total
|
531,159
|
381,080
|
144,318
|
113,079
|
|||||||||
|
Operating
expenses:
|
|||||||||||||
|
Direct
operating costs
|
370,758
|
264,602
|
100,450
|
78,265
|
|||||||||
|
Salaries
and benefits
|
53,740
|
41,795
|
14,236
|
11,499
|
|||||||||
|
Selling,
general and administrative
|
31,489
|
23,578
|
8,991
|
7,265
|
|||||||||
|
Depreciation
and amortization
|
22,375
|
15,801
|
5,932
|
4,599
|
|||||||||
|
Total
operating expenses
|
478,362
|
345,776
|
129,609
|
101,628
|
|||||||||
|
Operating
income
|
52,797
|
35,304
|
14,709
|
11,451
|
|||||||||
|
Other
income (expenses):
|
|||||||||||||
|
Interest
income
|
5,874
|
3,022
|
2,549
|
972
|
|||||||||
|
Interest
expense
|
(8,459
|
)
|
(7,300
|
)
|
(3,559
|
)
|
(2,023
|
)
|
|||||
|
Income
from unconsolidated affiliates
|
1,185
|
345
|
279
|
77
|
|||||||||
|
Loss
on early retirement of debt
|
–
|
(920
|
)
|
–
|
(794
|
)
|
|||||||
|
Foreign
exchange loss, net
|
(7,495
|
)
|
(448
|
)
|
(792
|
)
|
(1,360
|
)
|
|||||
|
Total
other expense, net
|
(8,895
|
)
|
(5,301
|
)
|
(1,523
|
)
|
(3,128
|
)
|
|||||
|
Income
from continuing operations before
|
|||||||||||||
|
income
taxes and minority interest
|
43,902
|
30,003
|
13,186
|
8,323
|
|||||||||
|
Income
tax expense
|
(14,976
|
)
|
(11,518
|
)
|
(3,746
|
)
|
(3,467
|
)
|
|||||
|
Minority
interest
|
(916
|
)
|
(58
|
)
|
(333
|
)
|
(58
|
)
|
|||||
|
Income
from continuing operations
|
28,010
|
18,427
|
9,107
|
4,798
|
|||||||||
|
Discontinued
operations:
|
|||||||||||||
|
Loss
from discontinued operations
|
(635
|
)
|
–
|
(635
|
)
|
–
|
|||||||
|
Net
income
|
27,375
|
18,427
|
8,472
|
4,798
|
|||||||||
|
Translation
adjustment
|
(7,487
|
)
|
4,196
|
(1,288
|
)
|
3,606
|
|||||||
|
Recognition
of cumulative
|
|||||||||||||
|
translation
adjustment from
|
|||||||||||||
|
liquidation
of France subsidiary
|
691 |
–
|
691 |
–
|
|||||||||
|
Comprehensive
income
|
$
|
20,579
|
$
|
22,623
|
$
|
7,875
|
$
|
8,404
|
|||||
|
Income
per share - diluted:
|
|||||||||||||
|
Income
from continuing operations
|
$
|
0.75
|
$
|
0.55
|
$
|
0.24
|
$
|
0.14
|
|||||
|
Loss
from discontinued operations
|
(0.01
|
)
|
–
|
(0.02
|
)
|
–
|
|||||||
|
Net
income
|
$
|
0.74
|
$
|
0.55
|
$
|
0.22
|
$
|
0.14
|
|||||
|
Diluted
weighted average shares outstanding
|
37,187,986
|
33,796,699
|
42,015,462
|
35,139,520
|
|||||||||
|
EURONET
WORLDWIDE, INC.
|
|||||
|
Consolidated
Summary Balance Sheets
|
|||||
|
(unaudited
- in thousands)
|
|
As
of December 31,
|
|||||||
|
2005
|
2004
|
||||||
|
ASSETS
|
|||||||
|
Current
assets:
|
|||||||
|
Cash
and cash equivalents
|
$
|
219,932
|
$
|
124,198
|
|||
|
Restricted
cash
|
73,942
|
69,300
|
|||||
|
Inventory
- PINs and other
|
25,595
|
18,949
|
|||||
|
Trade
accounts receivable, net of allowance for doubtful accounts
|
153,468
|
110,306
|
|||||
|
Other
current assets, net
|
36,006
|
22,013
|
|||||
|
Total
current assets
|
508,943
|
344,766
|
|||||
|
Property,
plant and equipment, net
|
44,852
|
39,907
|
|||||
|
Goodwill
and intangible assets, net
|
317,919
|
212,598
|
|||||
|
Other
assets, net
|
22,638
|
21,204
|
|||||
|
Total
assets
|
$
|
894,352
|
$
|
618,475
|
|||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
|
Current
liabilities:
|
|||||||
|
Accounts
payable and other current liabilities
|
$
|
298,999
|
$
|
283,918
|
|||
|
Current
portion of capital lease obligations and short-term borrowings
|
28,324
|
9,265
|
|||||
|
Total
current liabilities
|
327,323
|
293,183
|
|||||
|
Obligations
under capital leases, excluding current installments
|
12,229
|
16,894
|
|||||
|
Deferred
income tax
|
25,157
|
17,520
|
|||||
|
Debt
obligations
|
315,000
|
140,000
|
|||||
|
Other
long-term liabilities
|
1,161
|
3,093
|
|||||
|
Minority
interest
|
7,129
|
5,871
|
|||||
|
Total
liabilities
|
687,999
|
476,561
|
|||||
|
Stockholders'
equity
|
206,353
|
141,914
|
|||||
|
Total
liabilities and stockholders' equity
|
$
|
894,352
|
$
|
618,475
|
|||
|
EURONET
WORLDWIDE, INC.
|
|||||||||
|
Reconciliation
of Net income to Adjusted EBITDA by Segment
|
|||||||||
|
(unaudited
- in millions)
|
|
Twelve
Months Ended December 31, 2005
|
|||||||||||||
|
EFT
|
Prepaid
|
Software
|
|||||||||||
|
Processing
|
Processing
|
Solutions
|
Consolidated
|
||||||||||
|
Net
income
|
$
|
19.3
|
$
|
26.9
|
$
|
3.5
|
$
|
27.4
|
|||||
|
Add:
Income tax
|
4.1
|
10.8
|
–
|
15.0
|
|||||||||
|
Add:
Interest expense
|
2.2
|
0.9
|
–
|
8.5
|
|||||||||
|
Add:
Loss from discontinued operation
|
-
|
–
|
–
|
0.6
|
|||||||||
|
Add:
Minority Interest
|
0.2
|
0.7
|
–
|
0.9
|
|||||||||
|
Add:
Foreign exchange loss
|
-
|
–
|
–
|
7.5
|
|||||||||
|
Less:
Income from unconsolidated subs
|
(0.1
|
)
|
(1.0
|
)
|
–
|
(1.2
|
)
|
||||||
|
Less:
Interest income
|
(0.2
|
)
|
(3.7
|
)
|
–
|
(5.9
|
)
|
||||||
|
Rounding
and other
|
0.1
|
0.1
|
–
|
–
|
|||||||||
|
Subtotal:
Operating income
|
25.6
|
34.7
|
3.5
|
52.8
|
|||||||||
|
Add:
Depreciation and amortization
|
9.5
|
11.7
|
1.1
|
22.4
|
|||||||||
|
Rounding
and other
|
(0.1
|
)
|
0.1
|
–
|
–
|
||||||||
|
Earnings
before interest, taxes, depreciation and
|
|||||||||||||
|
amortization
(Adjusted EBITDA)
|
$
|
35.0
|
$
|
46.5
|
$
|
4.6
|
$
|
75.2
|
|||||
|
EURONET
WORLDWIDE, INC.
|
|||||||||
|
Reconciliation
of Net income to Adjusted EBITDA by Segment
|
|||||||||
|
(unaudited
- in millions)
|
|
Twelve
Months Ended December 31, 2004
|
|||||||||||||
|
EFT
|
Prepaid
|
Software
|
|||||||||||
|
Processing
|
Processing
|
Solutions
|
Consolidated
|
||||||||||
|
Net
income
|
$
|
9.3
|
$
|
23.6
|
$
|
1.8
|
$
|
18.4
|
|||||
|
Add:
Income tax
|
4.3
|
7.2
|
–
|
11.5
|
|||||||||
|
Add:
Interest expense
|
1.6
|
0.6
|
–
|
7.3
|
|||||||||
|
Add:
Loss on early retirement of debt
|
–
|
–
|
–
|
0.9
|
|||||||||
|
Add:
Minority Interest
|
–
|
0.1
|
–
|
0.1
|
|||||||||
|
Add:
Foreign exchange loss
|
–
|
–
|
–
|
0.4
|
|||||||||
|
Less:
Income from unconsolidated subs
|
–
|
(0.4
|
)
|
–
|
(0.3
|
)
|
|||||||
|
Less:
Interest income
|
(0.1
|
)
|
(2.7
|
)
|
–
|
(3.0
|
)
|
||||||
|
Rounding
and other
|
(0.1
|
)
|
(0.1
|
)
|
–
|
–
|
|||||||
|
Subtotal:
Operating income
|
15.0
|
28.3
|
1.8
|
35.3
|
|||||||||
|
Add:
Depreciation and amortization
|
8.3
|
6.3
|
1.0
|
15.8
|
|||||||||
|
Rounding
and other
|
0.1
|
–
|
–
|
–
|
|||||||||
|
Earnings
before interest, taxes, depreciation and
|
|||||||||||||
|
amortization
(Adjusted EBITDA)
|
$
|
23.4
|
$
|
34.6
|
$
|
2.8
|
$
|
51.1
|
|||||
|
EURONET
WORLDWIDE, INC.
|
|||||||||
|
Reconciliation
of Net income to Adjusted EBITDA by Segment
|
|||||||||
|
(unaudited
- in millions)
|
|
Three
Months Ended December 31, 2005
|
|||||||||||||
|
EFT
|
Prepaid
|
Software
|
|||||||||||
|
Processing
|
Processing
|
Solutions
|
Consolidated
|
||||||||||
|
Net
income
|
$
|
6.0
|
$
|
6.7
|
$
|
0.9
|
$
|
8.5
|
|||||
|
Add:
Income tax
|
0.3
|
3.4
|
–
|
3.7
|
|||||||||
|
Add:
Interest expense
|
0.6
|
0.3
|
–
|
3.6
|
|||||||||
|
Add:
Loss from discontinued operation
|
|
–
|
–
|
0.6
|
|||||||||
|
Add:
Minority Interest
|
0.1
|
0.2
|
–
|
0.3
|
|||||||||
|
Add:
Foreign exchange loss
|
–
|
–
|
–
|
0.8
|
|||||||||
|
Less:
Income from unconsolidated subs
|
0.1
|
(0.4
|
)
|
–
|
(0.3
|
)
|
|||||||
|
Less:
Interest income
|
(0.1
|
)
|
(1.0
|
)
|
–
|
(2.5
|
)
|
||||||
|
Rounding
and other
|
0.2
|
0.1
|
–
|
–
|
|||||||||
|
Subtotal:
Operating income
|
7.2
|
9.3
|
0.9
|
14.7
|
|||||||||
|
Add:
Depreciation and amortization
|
2.4
|
3.3
|
0.3
|
5.9
|
|||||||||
|
Rounding
and other
|
(0.1
|
)
|
–
|
–
|
–
|
||||||||
|
Earnings
before interest, taxes, depreciation and
|
|||||||||||||
|
amortization
(Adjusted EBITDA)
|
$
|
9.5
|
$
|
12.6
|
$
|
1.2
|
$
|
20.6
|
|||||
|
EURONET
WORLDWIDE, INC.
|
|||||||||
|
Reconciliation
of Net income to Adjusted EBITDA by Segment
|
|||||||||
|
(unaudited
- in millions)
|
|
Three
Months Ended December 31, 2004
|
|||||||||||||
|
EFT
|
Prepaid
|
Software
|
|||||||||||
|
Processing
|
Processing
|
Solutions
|
Consolidated
|
||||||||||
|
Net
income
|
$
|
3.8
|
$
|
6.0
|
$
|
0.6
|
$
|
4.8
|
|||||
|
Add:
Income tax
|
1.3
|
2.2
|
–
|
3.5
|
|||||||||
|
Add:
Interest expense
|
0.7
|
0.5
|
–
|
2.0
|
|||||||||
|
Add:
Loss on early retirement of debt
|
|
–
|
–
|
0.8
|
|||||||||
|
Add:
Minority Interest
|
–
|
0.1
|
–
|
0.1
|
|||||||||
|
Add:
Foreign exchange loss
|
–
|
–
|
–
|
1.4
|
|||||||||
|
Less:
Income from unconsolidated subs
|
–
|
(0.1
|
)
|
–
|
(0.1
|
)
|
|||||||
|
Less:
Interest income
|
–
|
(0.8
|
)
|
–
|
(1.0
|
)
|
|||||||
|
Subtotal:
Operating income
|
5.8
|
7.9
|
0.6
|
11.5
|
|||||||||
|
Add:
Depreciation and amortization
|
2.4
|
1.9
|
0.3
|
4.6
|
|||||||||
|
Earnings
before interest, taxes, depreciation and
|
|||||||||||||
|
amortization
(Adjusted EBITDA)
|
$
|
8.2
|
$
|
9.8
|
$
|
0.9
|
$
|
16.1
|
|||||
|
EURONET
WORLDWIDE, INC.
|
|||||||||
|
Reconciliation
of Net Income Excluding FX and Retirement of Debt
|
|||||||||
|
(unaudited
- in millions, except share and per share data)
|
|
Three
months ended
December 31, |
Year
Ended
December 31, |
||||||||||||
|
2005
|
2004
|
2005
|
2004
|
||||||||||
|
Net
income
|
$
|
8.5
|
$
|
4.8
|
$
|
27.4
|
$
|
18.4
|
|||||
|
Convertible
debt issuance costs (1)
|
0.2
|
–
|
–
|
–
|
|||||||||
|
Interest
on convertible debt (1)
|
0.6
|
–
|
–
|
–
|
|||||||||
|
Earnings
applicable for common shareholders
|
9.3
|
$
|
4.8
|
27.4
|
$
|
18.4
|
|||||||
|
Loss
from discontinued operations
|
0.6
|
–
|
0.6
|
–
|
|||||||||
|
Foreign
exchange loss
|
0.8
|
1.4
|
7.5
|
0.4
|
|||||||||
|
Loss
on early debt retirement
|
–
|
0.8
|
–
|
0.9
|
|||||||||
|
Rounding
|
–
|
–
|
–
|
0.1
|
|||||||||
|
Earnings
applicable for common shareholders before
|
|||||||||||||
|
foreign
exchange losses, discontinued operations
|
|||||||||||||
|
loss
and early retirement of debt losses
|
$
|
10.7
|
$
|
7.0
|
$
|
35.5
|
$
|
19.8
|
|||||
|
Adjusted
income per share - diluted (2)
|
$
|
0.25
|
$
|
0.20
|
$
|
0.95
|
$
|
0.59
|
|||||
|
Diluted
weighted average shares outstanding (1)
|
42,015,462
|
35,139,520
|
37,187,986
|
33,796,699
|
|||||||||
|
(1)
|
As
required by GAAP, convertible debt issuance and interest costs
are
excluded from income for the purpose of calculating diluted earnings
per
share for any period when the convertible debentures, if converted,
would
be dilutive to earnings per share. Further, the convertible shares
are
treated as if all were outstanding for the period.
|
|
(2)
|
Adjusted
income per share is a non-GAAP measure that should be considered
in
addition to, and not as a substitute for, earnings per share
computed in
accordance with
GAAP.
|