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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from
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to
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(State or other jurisdiction of incorporation or organization)
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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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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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þ
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Accelerated filer
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☐
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Non-accelerated filer
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o
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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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As of
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September 30,
2021 |
December 31,
2020 |
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(unaudited)
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ASSETS
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Current assets:
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Cash and cash equivalents
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$
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$
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ATM cash
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Restricted cash
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Settlement assets
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Trade accounts receivable, net of credit losses of $
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Prepaid expenses and other current assets
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Total current assets
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Operating right of use lease assets
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Property and equipment, net of accumulated depreciation of $
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Goodwill
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Acquired intangible assets, net of accumulated amortization of $
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Other assets, net of accumulated amortization of $
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Total assets
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$
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$
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LIABILITIES AND EQUITY
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Current liabilities:
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|||||
Settlement obligations
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$
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$
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Trade accounts payable
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Accrued expenses and other current liabilities
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Current portion of operating lease liabilities
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Short-term debt obligations and current maturities of long-term debt obligations
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Income taxes payable
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Deferred revenue
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Total current liabilities
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Debt obligations, net of current portion
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Operating lease obligations, net of current portion
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Deferred income taxes
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Other long-term liabilities
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Total liabilities
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Equity:
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Euronet Worldwide, Inc. stockholders’ equity:
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Preferred Stock, $
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Common Stock, $
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Additional paid-in-capital
|
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Treasury stock, at cost, shares issued
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(
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) |
(
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)
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Retained earnings
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Accumulated other comprehensive loss
|
(
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) |
(
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)
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|||
Total Euronet Worldwide, Inc. stockholders’ equity
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Noncontrolling interests
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Total equity
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Total liabilities and equity
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$
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$
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Three Months Ended
September 30, |
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Nine Months Ended
September 30,
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2021
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2020
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2021
|
|
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2020
|
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|||||
Revenues
|
$
|
|
|
$
|
|
|
|
$
|
|
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$
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Operating expenses:
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|||||||||||||||
Direct operating costs
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Salaries and benefits
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Selling, general and administrative
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Goodwill and acquired intangible assets impairment
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Depreciation and amortization
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Total operating expenses
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Operating income (loss)
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(
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)
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||||
Other income (expense):
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|||||
Interest income
|
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Interest expense
|
(
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) |
(
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)
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(
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) |
|
(
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)
|
||||
Foreign currency exchange loss, net
|
(
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) |
(
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) |
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(
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) |
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(
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)
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||||
Other gains, net
|
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Other expense, net
|
(
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) |
(
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)
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(
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) |
|
(
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)
|
||||
Income (loss) before income taxes
|
|
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(
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)
|
|||||
Income tax expense
|
(
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) |
(
|
)
|
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|
(
|
) |
|
(
|
)
|
||||
Net income (loss)
|
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|
|
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|
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(
|
)
|
|||||
Net loss (income) attributable to noncontrolling interests
|
|
(
|
) |
|
|
|
|
|
|
||||||
Net income (loss) attributable to Euronet Worldwide, Inc.
|
$
|
|
$
|
|
|
$
|
|
$
|
(
|
)
|
|||||
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||||||
Earnings (loss) per share attributable to Euronet Worldwide, Inc. stockholders:
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|||||||||||||||
Basic
|
$
|
|
$
|
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|
$
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|
$
|
(
|
)
|
|||||
Diluted
|
$
|
|
$
|
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|
$
|
|
$
|
(
|
)
|
|||||
Weighted average shares outstanding:
|
|||||||||||||||
Basic
|
|
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Diluted
|
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Three Months Ended
September 30,
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Nine Months Ended
September 30, |
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|||||||||||
|
2021
|
|
|
|
2020
|
|
|
2021
|
|
2020
|
|
||||
Net income (loss)
|
$
|
|
|
|
$
|
|
|
|
$
|
|
$
|
(
|
) | ||
Translation adjustment
|
(
|
) |
|
|
|
|
(
|
) |
|
||||||
Comprehensive income (loss)
|
|
|
|
|
|
|
|
(
|
) | ||||||
Comprehensive loss (income) attributable to noncontrolling interests
|
|
|
( |
) |
|
|
|
|
|||||||
Comprehensive income (loss) attributable to Euronet Worldwide, Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
$
|
(
|
) |
Number of
Shares Outstanding
|
|
|
Common
Stock
|
|
Additional
Paid-in Capital
|
|
Treasury
Stock
|
|
|||||||
Balance as of December 31, 2019
|
|
|
$
|
|
|
$
|
|
|
$
|
(
|
)
|
||||
Net income (loss)
|
|||||||||||||||
Other comprehensive loss
|
|||||||||||||||
Stock issued under employee stock plans
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||
Share-based compensation
|
|
|
|
||||||||||||
Repurchase of shares
|
(
|
) |
|
|
) | ||||||||||
Balance as of March 31, 2020
|
|
|
|
) | |||||||||||
Net (loss) income
|
|
|
|
||||||||||||
Other comprehensive income
|
|
|
|
||||||||||||
Stock issued under employee stock plans
|
|
|
|
||||||||||||
Share-based compensation
|
|
|
|
||||||||||||
Balance as of June 30, 2020
|
|
|
$ |
|
|
$ |
|
|
$ |
(
|
)
|
||||
Net income |
|
|
|
|
|
|
|
|
|||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|||||||
Stock issued under employee stock plans
|
|
|
|
|
|
|
|
|
|||||||
Share-based compensation
|
|
|
|
|
|
|
|||||||||
Balance as of September 30, 2020 |
|
|
$ |
|
|
$ |
|
|
$ |
(
|
) |
Number of
Shares Outstanding
|
|
Common
Stock
|
|
Additional
Paid-in Capital
|
|
Treasury
Stock
|
|
||||||||
Balance as of December 31, 2020
|
|
|
$
|
|
|
$
|
|
|
$
|
(
|
) | ||||
Net (loss) income
|
|||||||||||||||
Other comprehensive loss
|
|||||||||||||||
Stock issued under employee stock plans
|
|
|
|
|
|
|
|
|
|
(
|
) | ||||
Share-based compensation
|
|
|
|
||||||||||||
Balance as of March 31, 2021
|
|
|
|
) | |||||||||||
Net income (loss)
|
|
|
|
||||||||||||
Other comprehensive income
|
|
|
|
||||||||||||
Stock issued under employee stock plans
|
|
|
|
||||||||||||
Share-based compensation
|
|
|
|
||||||||||||
Balance as of June 30, 2021
|
|
|
$ |
|
|
$ |
|
|
$ |
(
|
) | ||||
Net income (loss) |
|
|
|
|
|
|
|||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
||||||||
Stock issued under employee stock plans
|
|
|
|
|
|
|
|
||||||||
Share-based compensation
|
|
|
|
|
|
||||||||||
Balance as of September 30, 2021
|
|
|
$ |
|
|
$ |
|
|
$ |
(
|
) |
Retained Earnings
|
|
Accumulated Other
Comprehensive Loss
|
|
Noncontrolling
Interests
|
|
Total
|
|
|||||||||
Balance as of December 31, 2019
|
$
|
|
|
$
|
(
|
)
|
$
|
|
|
$
|
|
|
||||
Net income (loss)
|
|
|
|
|
(
|
) |
|
|
|
|||||||
Other comprehensive loss
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||
Stock issued under employee stock plans
|
|
|
|
|||||||||||||
Share-based compensation
|
|
|
|
|||||||||||||
Repurchase of shares
|
|
(
|
) | |||||||||||||
Balance as of March 31, 2020
|
) | ) |
|
|
||||||||||||
Net (loss) income
|
) |
|
(
|
) | ||||||||||||
Other comprehensive income
|
|
|
||||||||||||||
Stock issued under employee stock plans
|
|
|
||||||||||||||
Share-based compensation
|
|
|
||||||||||||||
Balance as of June 30, 2020
|
|
|
(
|
)
|
(
|
) |
|
|
||||||||
Net income
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|||||||||
Stock issued under employee stock plans
|
|
|
|
|
|
|
|
|||||||||
Share-based compensation |
|
|
|
|
|
|
|
|||||||||
Balance as of September 30, 2020
|
$ |
|
|
$ |
(
|
) | $ |
|
$ |
|
|
Retained Earnings
|
|
Accumulated Other
Comprehensive Loss
|
|
Noncontrolling
Interests
|
|
Total
|
|
|||||||||
Balance as of December 31, 2020
|
$
|
|
|
$
|
(
|
) |
$
|
|
|
$
|
|
|
||||
Net (loss) income
|
|
(
|
) |
|
|
(
|
) | |||||||||
Other comprehensive loss
|
|
(
|
) |
|
(
|
) |
(
|
) | ||||||||
Stock issued under employee stock plans
|
|
|
||||||||||||||
Share-based compensation
|
|
|
||||||||||||||
Balance as of March 31, 2021
|
) |
|
|
|||||||||||||
Net income (loss)
|
) |
|
|
|||||||||||||
Other comprehensive income
|
|
|
||||||||||||||
Stock issued under employee stock plans
|
|
|
||||||||||||||
Share-based compensation
|
|
|
||||||||||||||
Balance as of June 30, 2021
|
|
|
(
|
) |
|
|
|
|||||||||
Net income
|
|
|
|
(
|
) |
|
|
|||||||||
Other comprehensive income
|
|
|
(
|
) |
(
|
) |
(
|
) | ||||||||
Stock issued under employee stock plans
|
|
|
|
|
|
|
||||||||||
Share-based compensation
|
|
|
|
|
|
|
||||||||||
Balance as of September 30, 2021
|
$ |
|
|
$ |
(
|
) | $ |
|
$ |
|
|
|
Nine Months Ended
September 30, |
||||||
|
2021
|
2020
|
|||||
Net income (loss)
|
$
|
|
$
|
(
|
)
|
||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|||||||
Depreciation and amortization
|
|
|
|
|
|||
Share-based compensation
|
|
|
|
|
|||
Unrealized foreign exchange loss, net
|
|
|
|
||||
Deferred income taxes
|
|
(
|
) | ||||
Goodwill and acquired intangible assets impairment
|
|
|
|||||
Accretion of convertible debt discount and amortization of debt issuance costs
|
|
|
|
|
|||
Changes in working capital, net of amounts acquired:
|
|
|
|||||
Income taxes payable, net
|
|
(
|
) | ||||
Trade accounts receivable
|
|
|
|
||||
Prepaid expenses and other current assets
|
|
(
|
) | ||||
Trade accounts payable
|
(
|
) |
(
|
)
|
|||
Deferred revenue
|
(
|
) |
(
|
) | |||
Accrued expenses and other current liabilities
|
|
|
|
|
|||
Changes in noncurrent assets and liabilities
|
|
(
|
) | ||||
Net cash provided by operating activities
|
|
|
|
||||
Cash flows from investing activities:
|
|
||||||
Acquisitions, net of cash acquired
|
|
(
|
) | ||||
Purchases of property and equipment
|
(
|
) |
(
|
)
|
|||
Purchases of other long-term assets
|
(
|
) |
(
|
)
|
|||
Other, net
|
|
|
|
|
|||
Net cash used in investing activities
|
(
|
) |
(
|
)
|
|||
Cash flows from financing activities:
|
|||||||
Proceeds from issuance of shares
|
|
|
|
|
|||
Repurchase of shares
|
(
|
) |
(
|
)
|
|||
Borrowings from revolving credit agreements
|
|
|
|
|
|||
Repayments of revolving credit agreements
|
(
|
) |
(
|
)
|
|||
Net borrowing (repayments) from short-term debt obligations
|
|
(
|
) | ||||
Other, net
|
(
|
) |
(
|
)
|
|||
Net cash used in financing activities
|
(
|
) |
(
|
) | |||
Effect of exchange rate changes on cash and cash equivalents and restricted cash
|
(
|
) |
|
||||
Decrease in cash and cash equivalents and restricted cash
|
(
|
) |
(
|
) | |||
Cash and cash equivalents and restricted cash at beginning of period
|
|
|
|
|
|||
Cash and cash equivalents and restricted cash at end of period
|
$
|
|
|
$
|
|
|
|
Supplemental disclosure of cash flow information:
|
|||||||
Interest paid during the period
|
$
|
|
|
$
|
|
|
|
Income taxes paid during the period
|
$
|
|
|
$
|
|
|
(3) PENDING ACQUISITION
In March 2021, the Company entered into an agreement to purchase the Piraeus Bank Merchant Acquiring business of Piraeus Bank for €
As of
|
|
|||||||
(in thousands)
|
September 30,
2021
|
|
December 31,
2020
|
|
||||
Settlement assets:
|
||||||||
Settlement cash and cash equivalents
|
$
|
|
|
$
|
|
|
||
Settlement restricted cash
|
|
|
|
|
||||
Accounts receivable, net of credit losses of $
|
|
|
|
|
||||
Prepaid expenses and other current assets
|
|
|
|
|
||||
Total settlement assets
|
$
|
|
|
$
|
|
|
||
Settlement obligations:
|
||||||||
Trade account payables
|
$
|
|
|
$
|
|
|
||
Accrued expenses and other current liabilities
|
|
|
|
|
||||
Total settlement obligations
|
$
|
|
|
$
|
|
|
As of
|
|
|||||||||||||||
(in thousands)
|
September 30,
2021
|
December 31,
2020
|
September 30,
2020
|
December 31,
2019
|
|
|||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
|
$
|
|
|
$
|
|
|
|||||
Restricted cash
|
|
|
|
|
|
|
|
|
||||||||
ATM cash
|
|
|
|
|
|
|
|
|
||||||||
Settlement cash and cash equivalents
|
|
|
|
|
|
|
|
|
||||||||
Settlement restricted cash
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents and restricted cash at end of period
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended September 30, |
|||||
|
2021 |
|
2020 |
|
2021
|
|
2020
|
|
Computation of diluted weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
|
|
|
|
|
|
|
Incremental shares from assumed exercise of stock options and vesting of restricted stock
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
|
|
|
|
|
|
|
(in thousands)
|
Intangible
Assets
|
|
|
|
Goodwill
|
|
Total
Intangible
Assets
|
|
||||
Balance as of December 31, 2020
|
$
|
|
|
$
|
|
|
$
|
|
|
|||
Decreases:
|
|
|
|
|||||||||
Acquisition
|
|
|
|
|
|
|||||||
Amortization
|
(
|
) |
|
|
(
|
) | ||||||
Foreign currency exchange rate changes
|
(
|
) |
(
|
) |
(
|
) | ||||||
Balance as of September 30, 2021
|
$
|
|
|
$
|
|
|
$
|
|
|
Of the total goodwill balance of $
As of
|
|
|||||||
(in thousands)
|
September 30, 2021
|
December 31, 2020
|
||||||
Accrued expenses
|
$
|
|
|
$
|
|
|
||
Derivative liabilities
|
|
|
|
|
||||
Current portion of finance lease obligations
|
|
|
|
|
||||
Total
|
$
|
|
|
$
|
|
|
As of
|
||||||||
(in thousands)
|
September 30, 2021
|
|
December 31, 2020
|
|
||||
Credit Facility:
|
||||||||
Revolving credit agreement
|
$
|
|
|
$
|
|
|
||
Convertible Debt:
|
||||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
Other obligations
|
|
|
|
|
||||
Total debt obligations
|
|
|
|
|
||||
Unamortized debt issuance costs
|
(
|
) |
(
|
)
|
||||
Carrying value of debt
|
|
|
|
|
||||
Short-term debt obligations and current maturities of long-term debt obligations
|
(
|
) |
(
|
)
|
||||
Long-term debt obligations
|
$
|
|
|
$
|
|
|