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(State or other jurisdiction of incorporation or organization)
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(Commission file number)
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(I.R.S. Employer Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Emerging growth company
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☐
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
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Exhibit
Number
|
Description
|
|
99.1
|
|
|
|
|
|
|
Euronet Worldwide, Inc.
|
|
|
|
By:
|
/s/ Rick L. Weller
|
|
|
Rick L. Weller
|
|
|
|
Chief Financial Officer
|
|
|
Date: February 9, 2021
|
|
|
 |
Contact:
|
•
|
Revenues of $706.6 million, a 2% increase from $693.7 million (2% decrease on a constant currency1 basis).
|
|
•
|
Operating income of $50.2 million, a 53% decrease from $107.2 million (56% decrease on a constant currency basis).
|
|
•
|
Adjusted operating income2 of $50.8 million (excluding a $0.6 million impairment of acquired intangible assets), a 53% decrease from $107.2 million (56% decrease on a constant currency basis).
|
|
•
|
Adjusted EBITDA3 of $91.9 million, a 35% decrease from $142.2 million (39% decrease on a constant currency basis).
|
|
•
|
Net income attributable to Euronet of $70.2 million or $1.31 diluted earnings per share, compared with net income of $106.5 million or $1.91 diluted earnings per share.
|
|
•
|
Adjusted earnings per share4 of $1.11, a 32% decrease from $1.63.
|
|
•
|
Euronet's cash and cash equivalents was $1,420.3 million and ATM cash was $411.1 million, totaling $1,831.4 million as of December 31, 2020, and availability under its revolving credit facilities was approximately $670 million.
|
|
•
|
Revenues of $2,482.7 million, a 10% decrease from $2,750.1 million (10% decrease on a constant currency1 basis).
|
|
•
|
Operating income of $46.6 million, a 90% decrease from $475.2 million (91% decrease on a constant currency basis).
|
|
•
|
Adjusted operating income2 $153.2 million (excluding a $106.6 million impairment of goodwill and acquired intangible assets), a 68% decrease from $473.9 million (excluding $1.3 million post-acquisition adjustment) (69% decrease on a constant currency basis).
|
|
•
|
Adjusted EBITDA3 of $302.2 million, a 50% decrease from $607.1 million (51% decrease on a constant currency basis).
|
|
•
|
Net loss attributable to Euronet of $3.4 million or $0.06 diluted loss per share, compared with net income of $346.8 million or $6.32 diluted earnings per share.
|
|
•
|
Adjusted earnings per share4 of $2.82, a 60% decrease from $7.01.
|
“During a year when COVID-19 presented unprecedented challenges, Euronet realized significant benefits from having a strong balance sheet and a nicely diversified product portfolio. In the fourth quarter, two of our three operating segments delivered double digit revenue and operating income growth and record results,” stated Michael J. Brown, Euronet’s Chairman and CEO. “Our leading-edge technology advances in digital product delivery provided us a competitive advantage and contributed to the strong performance of the Money Transfer and epay segments,” continued Mr. Brown.
“For the full year, we are pleased to report revenue, adjusted operating income and market share growth in the Money Transfer and epay segments. Our performance demonstrated the resiliency of our workforce and the strength and flexibility of our leading-edge technology," continued Mr. Brown. “Regardless of the impacts of COVID-19 to our EFT business, we did not rest and wait for the pandemic to end. We continued to invest in expanding into new markets and growing our existing markets, enabling us to be well positioned for a post COVID-19 business environment.”
The epay and Money Transfer segments achieved year-over-year increases in revenue and transaction volume as our expansive Point-of-Sale ("POS") and correspondent networks continued their strong performance through the pandemic. The epay segment’s strength was driven by exceptional growth in digital media products and the expansion of digital channels, particularly in Asia and South America. The Money Transfer segment demonstrated technological readiness for the pandemic through a triple digit increase in digital transactions in the fourth quarter of 2020 compared to 2019, as well as a record year for implementing new correspondents into our network, which now includes more than 464,000 correspondent locations. The Money Transfer segment continues its streak of revenue growth in the fourth quarter of 2020, having increased fourth quarter revenues every year over the last ten years at a compound annual growth rate of 16%. The EFT segment proved agile delivering $20 million in expense savings for the fourth quarter to partially offset the decrease in revenues due to COVID-19 imposed restrictions limiting high-value cross border transactions in Europe and Asia Pacific related to government-imposed border closures and shelter-in-place orders. We believe the EFT segment is positioned for success in 2021 through strategic deployments of new ATMs in growing markets such as the United States, Asia Pacific and Ireland. Despite the impact of COVID-19 on EFT results, the Company remains in a strong financial position with approximately $1.8 billion in available cash, approximately $670 million availability on its revolving credit facility and no significant debt maturities for approximately four years.
The Company anticipates based on recent trends and current global COVID-19 management mandates that its first quarter adjusted EBITDA will be in the range of approximately $50 million to $60 million.
Due in large part to the economic impacts and the related uncertainties of the COVID-19 pandemic, the Company recorded a $104.6 million non-cash goodwill impairment charge related to three business units during the second quarter of 2020 ($82.7 million in the Money Transfer Segment and $21.9 million in the EFT Segment), and $1.5 million and $0.6 million non-cash acquired intangible asset impairment charges during the third and fourth quarter, respectively, in the Money Transfer Segment. In order to provide more comparable operating results, these impairment charges are excluded from full year 2020, as well as the fourth quarter, adjusted operating income, adjusted EBITDA and adjusted EPS. Full year 2019 adjusted operating income, adjusted EBITDA and adjusted EPS also excludes a $1.3 million post-acquisition adjustment recorded in the EFT Segment.
Segment and Other Results
The EFT Processing Segment reports the following results for the fourth quarter 2020 compared with the same period or date in 2019:
|
|
|
|
•
|
Revenues of $100.4 million, a 48% decrease from $194.9 million (50% decrease on a constant currency basis).
|
|
•
|
Operating loss of $21.2 million, a 140% decrease from $52.5 million operating income (139% decrease on a constant currency basis).
|
|
•
|
Adjusted EBITDA of $1.0 million, a 99% decrease from $71.9 million (98% decrease on a constant currency basis).
|
|
•
|
Transactions of 902 million, an 11% increase from 809 million.
|
|
•
|
Operated 37,729 ATMs as of December 31, 2020, an 18% decrease from 46,070.
|
|
|
|
|
•
|
Revenues of $468.8 million, a 47% decrease from $888.7 million (47% decrease on a constant currency basis).
|
|
•
|
Operating loss of $66.7 million, a 122% decrease from $296.7 million operating income (123% decrease on a constant currency basis).
|
|
•
|
Adjusted operating loss2 of $44.8 million (excluding $21.9 million impairment of goodwill), a 115% decrease from $295.4 million adjusted operating income (excluding a $1.3 million post-acquisition adjustment) (115% decrease on a constant currency basis).
|
|
•
|
Adjusted EBITDA of $39.2 million, an 89% decrease from $367.2 million (90% decrease on a constant currency basis).
|
|
•
|
Transactions of 3.28 billion, an 8% increase from 3.05 billion.
|
For the fourth quarter and full year 2020, revenue, operating income, and adjusted EBITDA declines were driven by the impact of fewer high-value cross-border transactions in Europe and Asia Pacific related to the COVID-19 pandemic-driven government-imposed border closures and shelter-in-place orders. While during 2020 the EFT Segment experienced a significant decrease in high-value cross-border transactions, the Segment partially offset the impact through a significant increase in the volume of lower value, digitally-initiated payment processing transactions for an Asia Pacific customer’s bank wallet and e-commerce site.
2020 was a critical year for the advancement and validation of our technology through a significant installation with a third party by launching our REN Foundation solution for Banco de Mozambique’s central switch in November 2020. This technology was implemented on time despite the backdrop of the COVID-19 pandemic restrictions.
During 2020, the Company’s number of active ATMs ranged from a peak of 46,400 to a low of 37,700 as a result of adapting to the rapidly evolving COVID-19 restrictions, while the Company’s active base of ATMs decreased from 46,070 at December 31, 2019 to 37,729 at December 31, 2020. The ability to deactivate installed ATMs and subsequently re-activate ATMs was critical to our expense reduction efforts for the year. Our lease agreements have contractual flexibility to suspend, terminate or modify lease terms, resulting in a reduction of lease expenses on relatively short notice.
|
•
|
Revenues of $276.1 million, a 27% increase from $218.0 million (22% increase on a constant currency basis).
|
|
•
|
Operating income of $39.9 million, a 19% increase from $33.6 million (13% increase on a constant currency basis).
|
|
•
|
Adjusted EBITDA of $42.2 million, a 20% increase from $35.3 million (14% increase on a constant currency basis).
|
|
•
|
Transactions of 703 million, a 61% increase from 437 million.
|
|
•
|
POS terminals of approximately 748,000 as of December 31, 2020, a 3% increase from approximately 728,000.
|
|
•
|
Retailer locations of approximately 338,000 as of December 31, 2020, a slight decrease from approximately 339,000.
|
|
•
|
Revenues of $835.5 million, a 9% increase from $769.4 million (8% increase on a constant currency basis).
|
|
•
|
Operating income of $96.7 million, an 8% increase from $89.3 million (7% increase on a constant currency basis).
|
|
•
|
Adjusted EBITDA of $104.6 million, a 9% increase from $96.2 million (7% increase on a constant currency basis).
|
|
•
|
Transactions of 2.40 billion, a 56% increase from 1.54 billion. |
For the fourth quarter and full year of 2020, revenue, adjusted operating income, and adjusted EBITDA growth was driven by continued growth in digital media as well as mobile in certain markets. epay benefitted from executing on its strategy of increasing digital channel distribution in certain markets throughout 2020 while also expanding physical channel distribution in other markets. Revenue in the fourth quarter of 2020 was higher by approximately $10 million related to a temporary increase in available margin provided by a certain mobile operator which was entirely passed on to retailers, resulting in zero impact to operating income. Transaction growth was primarily driven by customers in South America and Asia, which have a high concentration of low-value, high-volume transactions.
|
•
|
Revenues of $331.6 million, an 18% increase from $281.9 million (14% increase on a constant currency basis).
|
|
•
|
Operating income of $45.0 million, a 36% increase from $33.0 million (29% increase on a constant currency basis).
|
|
•
|
Adjusted operating income of $45.6 million (excluding $0.6 million impairment of acquired intangible assets), a 38% increase from $33.0 million (30% increase on a constant currency basis).
|
|
•
|
Adjusted EBITDA of $54.6 million, a 32% increase from $41.3 million (25% increase on a constant currency basis).
|
|
•
|
Total transactions of 32.4 million, a 9% increase from 29.7 million.
|
|
•
|
Network locations of approximately 464,000 as of December 31, 2020, a 17% increase from approximately 397,000.
|
|
•
|
Revenues of $1,183.8 million, an 8% increase from $1,096.1 million (7% increase on a constant currency basis).
|
|
•
|
Operating income of $59.7 million, a 56% decrease from $134.6 million (59% decrease on a constant currency basis).
|
|
•
|
Adjusted operating income of $144.4 million (excluding $84.7 million impairment of goodwill and acquired intangible assets), a 7% increase from $134.6 million (5% increase on a constant currency basis).
|
|
•
|
Adjusted EBITDA of $179.1 million, a 7% increase from $167.2 million (6% increase on a constant currency basis).
|
|
•
|
Total transactions of 116.5 million, a 2% increase from 114.5 million.
|
For the fourth quarter of 2020, revenue, operating income, and adjusted EBITDA increased due to the 9% growth in transaction volumes compared to the same period in the prior year. The increased transaction volume was driven by a triple digit increase in digital transaction growth from Ria’s online and mobile app products, expansion of its correspondent network, continued growth in the important independent channel and the signing and integration of strategic partnership agreements with new large-scale customers. Revenue and operating income expanded faster than transactions as the result of a shift in mix from low-value domestic to high-value cross border transactions.
For the full year 2020, money transfer transactions growth of 2% was the result of 16% growth in cross border transactions, partially offset by declines in domestic transfers and non-transfer transactions, such as currency exchange and check cashing.
Corporate and Other reports $13.5 million of expense for the fourth quarter 2020 compared with $11.9 million for the fourth quarter 2019. For the full year 2020, Corporate and Other reports $43.1 million of expense compared with $45.4 million for the full year 2019.
Unrestricted cash and cash equivalents on hand was $1,420.3 million as of December 31, 2020, compared to $786.1 million as of December 31, 2019. The increase in unrestricted cash and cash equivalents is largely from a drawdown on the revolving credit facility as a result of effective treasury management for year-end settlement requirements across many currencies, cash generated from operations and changes in working capital, partially offset by cash paid for capital expenditures. The Company generated approximately $50 million in cash from operations during the fourth quarter. While the Company continues to believe its $1,420.3 million unrestricted cash and cash equivalents balance is more than sufficient to sustain the business through the difficult times brought about by the COVID-19 pandemic, the Company has approximately $411.1 million of cash in ATMs at December 31, 2020 which could be re-deployed to operations, giving the Company more than $1.8 billion of cash and cash equivalents with no significant debt principal payments for approximately four years. In addition, the Company has approximately $670 million of availability under its revolving credit facility.
Total indebtedness was $1.45 billion as of December 31, 2020, compared to $1.15 billion as of September 30, 2020. The Company drew $270 million on its available revolving credit facility to effectively manage year-end payments across several currencies shortly before year end and subsequently repaid it following the start of the new year.
(2) Adjusted operating (loss) income is defined as operating (loss) income excluding goodwill and acquired intangible asset impairment charges and post-acquisition adjustments. Adjusted operating (loss) income represents a performance measure and is not intended to represent a liquidity measure.
(3) Adjusted EBITDA is defined as net (loss) income excluding, to the extent incurred in the period, interest, income tax expense, depreciation, amortization, share-based compensation, goodwill and acquired intangible asset impairment charges, post-acquisition adjustments and other non-operating or non-recurring items that are considered expenses or income under U.S. GAAP. Adjusted EBITDA represents a performance measure and is not intended to represent a liquidity measure.
|
EURONET WORLDWIDE, INC.
|
|||||||
|
Condensed Consolidated Balance Sheets
|
|||||||
|
(in millions)
|
|||||||
|
As of
|
|||||||
|
December 31,
|
As of
|
||||||
|
2020
|
December 31,
|
||||||
|
(unaudited)
|
2019
|
||||||
|
ASSETS
|
|||||||
|
Current assets:
|
|||||||
|
Cash and cash equivalents
|
$
|
1,420.3
|
|
$
|
786.1
|
|
|
|
ATM cash
|
411.1
|
|
665.6
|
|
|||
|
Restricted cash
|
3.3
|
|
34.3
|
|
|||
|
Settlement assets
|
1,140.9
|
|
1,013.1
|
|
|||
|
Trade accounts receivable, net
|
117.5
|
|
201.9
|
|
|||
|
Prepaid expenses and other current assets
|
272.8
|
|
217.7
|
|
|||
|
Total current assets
|
3,365.9
|
|
2,918.7
|
|
|||
|
Property and equipment, net
|
378.4
|
|
360.0
|
|
|||
|
Right of use lease asset, net
|
162.1
|
|
377.5
|
|
|||
|
Goodwill and acquired intangible assets, net
|
787.7
|
|
885.6
|
|
|||
|
Other assets, net
|
232.6
|
|
115.9
|
|
|||
|
Total assets
|
$
|
4,926.7
|
|
$
|
4,657.7
|
|
|
|
LIABILITIES AND EQUITY
|
|||||||
|
Current liabilities:
|
|||||||
|
Settlement obligations
|
$
|
1,140.9
|
|
$
|
1,013.1
|
|
|
|
Accounts payable and other current liabilities
|
654.9
|
|
481.5
|
|
|||
|
Current portion of operating lease liabilities
|
52.4
|
|
127.4
|
|
|||
|
Short-term debt obligations
|
7.2
|
|
12.0
|
|
|||
|
Total current liabilities
|
1,855.4
|
|
1,634.0
|
|
|||
|
Debt obligations, net of current portion
|
1,437.6
|
|
1,090.9
|
|
|||
|
Operating lease liabilities, net of current portion
|
106.5
|
|
242.0
|
|
|||
|
Capital lease obligations, net of current portion
|
6.2
|
|
8.1
|
|
|||
|
Deferred income taxes
|
37.9
|
|
56.1
|
|
|||
|
Other long-term liabilities
|
37.2
|
|
47.2
|
|
|||
|
Total liabilities
|
3,480.8
|
|
3,078.3
|
|
|||
|
Equity
|
1,445.9
|
|
1,579.4
|
|
|||
|
Total liabilities and equity
|
$
|
4,926.7
|
|
$
|
4,657.7
|
|
|
|
EURONET WORLDWIDE, INC.
|
|||||||||||||||
|
Consolidated Statements of Operations
|
|||||||||||||||
|
(unaudited - in millions, except share and per share data)
|
|||||||||||||||
|
Year Ended
|
|
Three Months Ended |
|||||||||||||
|
December 31,
|
|
December 31, | |||||||||||||
|
2020
|
2019
|
|
2020 |
|
2019 | ||||||||||
|
Revenues
|
$
|
2,482.7
|
|
$
|
2,750.1
|
|
|
$
|
706.6
|
|
|
$
|
693.7
|
|
|
|
Operating expenses:
|
|||||||||||||||
|
Direct operating costs
|
1,576.7
|
|
1,556.5
|
|
|
|
459.6
|
|
|
|
403.8
|
|
|||
|
Salaries and benefits
|
404.0
|
|
394.8
|
|
|
|
110.4
|
|
|
|
102.1
|
|
|||
|
Selling, general and administrative
|
221.8
|
|
211.9
|
|
|
|
52.2
|
|
|
|
51.1
|
|
|||
|
Impairment of goodwill and acquired intangible assets
|
106.6
|
|
—
|
|
|
|
0.6
|
|
|
|
—
|
|
|||
|
Depreciation and amortization
|
127.0
|
|
111.7
|
|
|
|
33.6
|
|
|
|
29.5
|
|
|||
|
Total operating expenses
|
2,436.1
|
|
2,274.9
|
|
|
|
656.4
|
|
|
|
586.5
|
|
|||
|
Operating income
|
46.6
|
|
475.2
|
|
|
|
50.2
|
|
|
|
107.2
|
|
|||
|
Other income (expense):
|
|||||||||||||||
|
Interest income
|
1.1
|
|
|
1.9
|
|
|
|
0.2
|
|
|
|
0.5
|
|
||
|
Interest expense
|
(36.6)
|
|
|
(36.1
|
) |
|
|
(9.0)
|
|
|
|
(8.8
|
) | ||
|
Loss on early retirement of debt
|
—
|
|
|
(9.8
|
) |
|
|
—
|
|
|
|
—
|
|
||
|
Foreign currency exchange (loss) gain
|
(3.8)
|
|
|
2.7
|
|
|
13.9
|
|
|
|
10.6
|
|
|||
|
Other income
|
0.9
|
|
|
—
|
|
|
0.1
|
|
|
|
—
|
|
|||
|
Total other (expense) income, net
|
(38.4)
|
|
(41.3
|
) |
|
|
5.2
|
|
|
|
2.3
|
|
|||
|
Income before income taxes
|
8.2
|
|
433.9
|
|
|
|
55.4
|
|
|
|
109.5
|
|
|||
|
Income tax (expense) benefit
|
(11.5)
|
|
|
(87.2
|
) |
|
|
15.0
|
|
|
|
(2.9
|
) | ||
|
Net (loss) income
|
(3.3)
|
|
346.7
|
|
|
|
70.4
|
|
|
|
106.6
|
|
|||
|
Net (income) loss attributable to noncontrolling interests
|
(0.1)
|
|
|
0.1
|
|
|
|
(0.2)
|
|
|
|
(0.1)
|
|||
|
Net (loss) income attributable to Euronet Worldwide, Inc.
|
$
|
(3.4)
|
|
$
|
346.8
|
|
|
$
|
70.2
|
|
|
$
|
106.5
|
|
|
|
(Loss) Earnings per share attributable to Euronet
|
|||||||||||||||
|
Worldwide, Inc. stockholders - diluted
|
$
|
(0.06)
|
$
|
6.32
|
|
|
$
|
1.31
|
|
|
$
|
1.91
|
|
||
|
Diluted weighted average shares outstanding
|
52,659,551
|
|
54,913,887
|
|
|
|
53,427,569
|
|
|
|
55,783,838
|
|
|||
|
EURONET WORLDWIDE, INC.
|
|||||||||||||||||||
|
Reconciliation of Net (Loss) Income to Operating (Loss) Income, Adjusted Operating (Loss) Income and Adjusted EBITDA
|
|||||||||||||||||||
|
(unaudited - in millions)
|
|||||||||||||||||||
|
Three months ended December 31, 2020
|
|||||||||||||||||||
|
EFT Processing
|
epay
|
Money Transfer
|
Corporate Services
|
Consolidated
|
|||||||||||||||
|
Net income
|
$
|
70.4
|
|
||||||||||||||||
|
Less: Income tax benefit
|
(15.0)
|
|
|||||||||||||||||
|
Less: Total other income, net
|
(5.2)
|
|
|||||||||||||||||
|
Operating (loss) income
|
$
|
(21.2)
|
|
$
|
39.9
|
|
$
|
45.0
|
|
$
|
(13.5)
|
$
|
50.2
|
|
|||||
|
Add: Acquired intangible asset impairment charges
|
—
|
|
—
|
|
0.6
|
|
—
|
|
0.6
|
|
|||||||||
|
Adjusted operating (loss) income(1)
|
(21.2)
|
|
39.9
|
|
45.6
|
|
(13.5)
|
|
50.8
|
|
|||||||||
|
Add: Depreciation and amortization
|
22.2
|
|
2.3
|
|
9.0
|
|
0.1
|
|
33.6
|
|
|||||||||
|
Add: Share-based compensation
|
—
|
|
—
|
|
—
|
|
7.5
|
|
7.5
|
|
|||||||||
|
Earnings (expense) before interest, taxes, depreciation, amortization, share-based compensation and acquired intangible asset impairment charges (Adjusted EBITDA) (1)
|
$
|
1.0
|
|
$
|
42.2
|
|
$
|
54.6
|
|
$
|
(5.9)
|
$
|
91.9
|
|
|||||
|
Three months ended December 31, 2019
|
|||||||||||||||||||
|
EFT Processing
|
epay
|
Money Transfer
|
Corporate Services
|
Consolidated
|
|||||||||||||||
|
Net income
|
$
|
106.6
|
|
||||||||||||||||
|
Add: Income tax expense
|
2.9
|
|
|||||||||||||||||
|
Less: Total other expense, net
|
(2.3
|
) | |||||||||||||||||
|
Operating income (expense)
|
$
|
52.5
|
|
$
|
33.6
|
|
$
|
33.0
|
|
$
|
(11.9
|
)
|
$
|
107.2
|
|
||||
|
Add: Depreciation and amortization
|
19.4
|
|
1.7
|
|
8.3
|
|
0.1
|
|
29.5
|
|
|||||||||
|
Add: Share-based compensation
|
—
|
|
—
|
|
—
|
|
5.5
|
|
5.5
|
|
|||||||||
|
Earnings (expense) before interest, taxes, depreciation, amortization and share-based compensation (Adjusted EBITDA) (1)
|
$
|
71.9
|
|
$
|
35.3
|
|
$
|
41.3
|
|
$
|
(6.3)
|
$
|
142.2
|
|
|||||
|
EURONET WORLDWIDE, INC.
|
|||||||||||||||||||
|
Reconciliation of Net (Loss) Income to Operating (Loss) Income, Adjusted Operating (Loss) Income and Adjusted EBITDA
|
|||||||||||||||||||
|
(unaudited - in millions)
|
|||||||||||||||||||
|
Twelve months ended December 31, 2020
|
|||||||||||||||||||
|
EFT Processing
|
epay
|
Money Transfer
|
Corporate Services
|
Consolidated
|
|||||||||||||||
|
Net loss
|
$
|
(3.3)
|
|
||||||||||||||||
|
Add: Income tax expense
|
11.5
|
|
|||||||||||||||||
|
Add: Total other expense, net
|
38.4
|
|
|||||||||||||||||
|
Operating (loss) income
|
$
|
(66.7)
|
|
$
|
96.7
|
|
$
|
59.7
|
|
$
|
(43.1)
|
$
|
46.6
|
|
|||||
|
Add: Goodwill and acquired intangible asset impairment charges
|
21.9
|
|
—
|
|
84.7
|
|
—
|
|
106.6
|
|
|||||||||
|
Adjusted operating (loss) income(1)
|
(44.8)
|
|
96.7
|
|
144.4
|
|
(43.1)
|
|
153.2
|
|
|||||||||
|
Add: Depreciation and amortization
|
84.0
|
|
7.9
|
|
34.7
|
|
0.4
|
|
127.0
|
|
|||||||||
|
Add: Share-based compensation
|
—
|
|
—
|
|
—
|
|
22.0
|
|
22.0
|
|
|||||||||
|
Earnings (expense) before interest, taxes, depreciation, amortization, share-based compensation and goodwill and acquired intangible asset impairment charges (Adjusted EBITDA) (1)
|
$
|
39.2
|
|
$
|
104.6
|
|
$
|
179.1
|
|
$
|
(20.7)
|
$
|
302.2
|
|
|||||
|
Twelve months ended December 31, 2019
|
|||||||||||||||||||
|
EFT Processing
|
epay
|
Money Transfer
|
Corporate Services
|
Consolidated
|
|||||||||||||||
|
Net income
|
$
|
346.7
|
|
||||||||||||||||
|
Add: Income tax expense
|
87.2
|
|
|||||||||||||||||
|
Add: Total other expense, net
|
41.3
|
|
|||||||||||||||||
|
Operating income (expense)
|
$
|
296.7
|
|
$
|
89.3
|
|
$
|
134.6
|
|
$
|
(45.4
|
)
|
$
|
475.2
|
|
||||
| Less: Post-acquisition adjustment |
(1.3
|
) |
—
|
|
—
|
|
—
|
|
(1.3
|
) | |||||||||
|
Adjusted operating income (expense)(1)
|
295.4
|
|
89.3
|
|
134.6
|
|
(45.4
|
) |
473.9
|
|
|||||||||
|
Add: Depreciation and amortization
|
71.8
|
|
6.9
|
|
32.6
|
|
0.4
|
|
111.7
|
|
|||||||||
|
Add: Share-based compensation
|
—
|
|
—
|
|
—
|
|
21.5
|
|
21.5
|
|
|||||||||
|
Earnings (expense) before interest, taxes, depreciation, amortization, share-based compensation and post-acquisition adjustments (Adjusted EBITDA) (1)
|
$
|
367.2
|
|
$
|
96.2
|
|
$
|
167.2
|
|
$
|
(23.5
|
) |
$
|
607.1
|
|
||||
|
EURONET WORLDWIDE, INC.
|
|||||||||||||||
|
Reconciliation of Adjusted Earnings per Share
|
|||||||||||||||
|
(unaudited - in millions, except share and per share data)
|
|||||||||||||||
|
Year Ended
|
|
Three Months Ended |
|||||||||||||
|
December 31,
|
|
December 31, | |||||||||||||
|
2020
|
2019
|
|
2020
|
|
2019
|
||||||||||
|
Net (loss) income attributable to Euronet Worldwide, Inc.
|
$
|
(3.4)
|
|
$
|
346.8
|
|
|
$
|
70.2
|
|
|
$
|
106.5
|
|
|
|
Foreign currency exchange (gain) loss
|
3.8
|
|
(2.7
|
) | (13.9) | (10.6 | ) | ||||||||
|
Acquired intangible asset amortization(1)
|
22.9
|
|
20.4
|
|
|
|
5.8
|
|
|
|
5.1
|
|
|||
|
Share-based compensation(2)
|
22.0
|
|
21.5
|
|
|
|
7.5
|
|
|
|
5.5
|
|
|||
| Post-acquisition adjustment |
—
|
|
(1.3
|
) |
|
|
—
|
|
|
|
—
|
|
|||
|
Impairment of goodwill and acquired intangible assets
|
106.6
|
|
—
|
|
|
|
0.6
|
|
|
|
—
|
|
|||
|
Non-cash interest accretion(3)
|
15.3
|
|
16.2
|
|
|
|
3.9
|
|
|
|
3.7
|
|
|||
|
Income tax effect of above adjustments(4)
|
(7.2)
|
(4.9
|
) | 2.8 | 2.5 | ||||||||||
| Loss on early retirement of debt |
—
|
|
9.8
|
|
|
|
—
|
|
|
|
—
|
|
|||
|
U.S. tax reform impact(5)
|
—
|
|
(25.7
|
) |
|
|
—
|
|
|
|
(25.7
|
) | |||
|
Non-cash GAAP tax (benefit) expense(6)
|
(8.3)
|
|
12.9
|
|
|
|
(17.4)
|
|
|
|
4.4
|
|
|||
|
Adjusted earnings(7)
|
$
|
151.7
|
|
$
|
393.0
|
|
|
$
|
59.5
|
|
|
$
|
91.4
|
|
|
|
Adjusted earnings per share - diluted(7)
|
$
|
2.82
|
|
$
|
7.01
|
|
|
$
|
1.11
|
|
|
$
|
1.63
|
|
|
|
Diluted weighted average shares outstanding (GAAP)
|
52,659,551
|
|
54,913,887
|
|
|
|
53,427,569
|
|
|
|
55,783,838
|
|
|||
| Effect of anti-dilutive shares not included in GAAP calculation |
964,866
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|||
| Effect of conversion of convertible debentures(8) |
—
|
|
933,090
|
|
|
|
—
|
|
|
|
—
|
|
|||
|
Effect of unrecognized share-based compensation on diluted shares outstanding
|
192,876
|
|
243,177
|
|
|
|
295,808
|
|
|
|
244,355
|
|
|||
|
Adjusted diluted weighted average shares outstanding
|
53,817,293
|
|
56,090,154
|
|
|
|
53,723,377
|
|
|
|
56,028,193
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||