Contact:
• | Revenues of $652.7 million, a 12% increase from $583.9 million (7% increase on a constant currency1 basis). |
• | Operating income of $10.4 million, a 67% decrease from $31.6 million (70% decrease on a constant currency basis). |
• | Adjusted EBITDA2 of $52.2 million, a 24% decrease from $68.7 million (28% decrease on a constant currency basis). |
• | Net loss attributable to Euronet of ($8.7 million) or ($0.16) diluted loss per share, compared with net income of $1.9 million or $0.04 diluted earnings per share. |
• | Adjusted earnings per share3 of $0.23, a 58% decrease from $0.55. |
• | Euronet's cash and cash equivalents were $1,145.4 million and ATM cash was $339.9 million, totaling $1,485.3 million as of March 31, 2021, and availability under its revolving credit facilities was approximately $940 million. |
Segment and Other Results
The EFT Processing Segment reports the following results for the first quarter 2021 compared with the same period or date in 2020:
• | Revenues of $87.1 million, a 40% decrease from $145.8 million (43% decrease on a constant currency basis). |
• | Operating loss of $40.1 million, a 918% decrease from operating income of $4.9 million (851% decrease on a constant currency basis). |
• | Adjusted EBITDA of ($18.1 million), a 172% decrease from $25.2 million (163% decrease on a constant currency basis). |
• | Transactions of 925 million, an 18% increase from 785 million. |
• | Total of 45,497 installed ATMs as of March 31, 2021, a 10% decrease from 50,725. Operated 36,777 active ATMs as of March 31, 2021, a 13% decrease from 42,176. |
• | Revenues of $242.3 million, a 40% increase from $172.9 million (33% increase on a constant currency basis). |
• | Operating income of $29.2 million, a 77% increase from $16.5 million (67% increase on a constant currency basis). |
• | Adjusted EBITDA of $31.3 million, a 71% increase from $18.3 million (61% increase on a constant currency basis). |
• | Transactions of 667 million, a 49% increase from 447 million. |
• | Point-of-sale ("POS") terminals of approximately 736,000 as of March 31, 2021, a 1% increase from approximately 732,000. |
• | Retailer locations of approximately 345,000 as of March 31, 2021, a 3% increase from approximately 336,000. |
Transaction growth was primarily driven by continued strength in digital media content sales, with particularly strong growth from customers in South America and Asia who have a high volume of low value in-app mobile top-up transactions.
• | Revenues of $324.9 million, a 22% increase from $266.3 million (17% increase on a constant currency basis). |
• | Operating income of $35.3 million, a 58% increase from $22.3 million (47% increase on a constant currency basis). |
• | Adjusted EBITDA of $44.4 million, a 44% increase from $30.9 million (34% increase on a constant currency basis). |
• | Total transactions of 31.2 million, a 14% increase from 27.4 million. |
• | Network locations of approximately 475,000 as of March 31, 2021, an 18% increase from approximately 402,000. |
(2) 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 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.
(3) Adjusted earnings per share is defined as diluted U.S. GAAP (loss) earnings per share excluding, to the extent incurred in the period, the tax-effected impacts of: a) foreign currency exchange gains or losses, b) share-based compensation, c) acquired intangible asset amortization, d) non-cash interest expense, e) non-cash income tax expense (benefit) and f) other non-operating or non-recurring items. Adjusted earnings per share represents a performance measure and is not intended to represent a liquidity measure.
EURONET WORLDWIDE, INC. | |||||
Condensed Consolidated Balance Sheets | |||||
(in millions) | |||||
As of | |||||
March 31, | As of | ||||
2021 | December 31, | ||||
(unaudited) | 2020 | ||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 1,145.4 | $ | 1,420.3 | |
ATM cash | 339.9 | 411.1 | |||
Restricted cash | 2.9 | 3.3 | |||
Settlement assets | 960.3 | 1,140.9 | |||
Trade accounts receivable, net | 111.4 | 117.5 | |||
Prepaid expenses and other current assets | 253.3 | 272.8 | |||
Total current assets | 2,813.2 | 3,365.9 | |||
Property and equipment, net | 357.3 | 378.4 | |||
Right of use lease asset, net | 171.9 | 162.1 | |||
Goodwill and acquired intangible assets, net | 767.9 | 787.7 | |||
Other assets, net | 240.5 | 232.6 | |||
Total assets | $ | 4,350.8 | $ | 4,926.7 | |
LIABILITIES AND EQUITY | |||||
Current liabilities: | |||||
Settlement obligations | $ | 960.3 | $ | 1,140.9 | |
Accounts payable and other current liabilities | 584.4 | 654.9 | |||
Current portion of operating lease liabilities | 51.5 | 52.4 | |||
Short-term debt obligations | 6.5 | 7.2 | |||
Total current liabilities | 1,602.7 | 1,855.4 | |||
Debt obligations, net of current portion | 1,143.0 | 1,437.6 | |||
Operating lease liabilities, net of current portion | 120.3 | 106.5 | |||
Capital lease obligations, net of current portion | 4.8 | 6.2 | |||
Deferred income taxes | 39.7 | 37.9 | |||
Other long-term liabilities | 34.5 | 37.2 | |||
Total liabilities | 2,945.0 | 3,480.8 | |||
Equity | 1,405.8 | 1,445.9 | |||
Total liabilities and equity | $ | 4,350.8 | $ | 4,926.7 | |
EURONET WORLDWIDE, INC. | |||||||
Consolidated Statements of Operations | |||||||
(unaudited - in millions, except share and per share data) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2021 | 2020 | ||||||
Revenues | $ | 652.7 | $ | 583.9 | |||
Operating expenses: | |||||||
Direct operating costs | 434.5 | 359.5 | |||||
Salaries and benefits | 115.7 | 101.2 | |||||
Selling, general and administrative | 58.8 | 60.8 | |||||
Depreciation and amortization | 33.3 | 30.8 | |||||
Total operating expenses | 642.3 | 552.3 | |||||
Operating income | 10.4 | 31.6 | |||||
Other income (expense): | |||||||
Interest income | 0.2 | 0.6 | |||||
Interest expense | (9.2 | ) | (9.3 | ) | |||
Foreign currency exchange loss | (4.0 | ) | (18.8 | ) | |||
Total other expense, net | (13.0 | ) | (27.5 | ) | |||
(Loss) Income before income taxes | (2.6 | ) | 4.1 | ||||
Income tax expense | (6.1 | ) | (2.4 | ) | |||
Net (loss) income | (8.7 | ) | 1.7 | ||||
Net loss attributable to noncontrolling interests | — | 0.2 | |||||
Net (loss) income attributable to Euronet Worldwide, Inc. | $ | (8.7 | ) | $ | 1.9 | ||
(Loss) earnings per share attributable to Euronet | |||||||
Worldwide, Inc. stockholders - diluted | $ | (0.16 | ) | $ | 0.04 | ||
Diluted weighted average shares outstanding | 52,762,845 | 54,779,321 | |||||
EURONET WORLDWIDE, INC. | |||||||||||||||||||
Reconciliation of Net (Loss) Income to Operating (Loss) Income and Adjusted EBITDA | |||||||||||||||||||
(unaudited - in millions) | |||||||||||||||||||
Three months ended March 31, 2021 | |||||||||||||||||||
EFT Processing | epay | Money Transfer | Corporate Services | Consolidated | |||||||||||||||
Net loss | $ | (8.7) | |||||||||||||||||
Add: Income tax expense | 6.1 | ||||||||||||||||||
Add: Total other expense, net | 13.0 | ||||||||||||||||||
Operating (loss) income | $ | (40.1 | ) | $ | 29.2 | $ | 35.3 | $ | (14.0 | ) | $ | 10.4 | |||||||
Add: Depreciation and amortization | 22.0 | 2.1 | 9.1 | 0.1 | 33.3 | ||||||||||||||
Add: Share-based compensation | — | — | — | 8.5 | 8.5 | ||||||||||||||
(Loss) earnings before interest, taxes, depreciation, amortization, and share-based compensation (Adjusted EBITDA) (1) | $ | (18.1 | ) | $ | 31.3 | $ | 44.4 | $ | (5.4 | ) | $ | 52.2 | |||||||
Three months ended March 31, 2020 | |||||||||||||||||||
EFT Processing | epay | Money Transfer | Corporate Services | Consolidated | |||||||||||||||
Net income | $ | 1.7 | |||||||||||||||||
Add: Income tax expense | 2.4 | ||||||||||||||||||
Add: Total other expense, net | 27.5 | ||||||||||||||||||
Operating income (expense) | $ | 4.9 | $ | 16.5 | $ | 22.3 | $ | (12.1 | ) | $ | 31.6 | ||||||||
Add: Depreciation and amortization | 20.3 | 1.8 | 8.6 | 0.1 | 30.8 | ||||||||||||||
Add: Share-based compensation | — | — | — | 6.3 | 6.3 | ||||||||||||||
Earnings (expense) before interest, taxes, depreciation, amortization and share-based compensation (Adjusted EBITDA) (1) | $ | 25.2 | $ | 18.3 | $ | 30.9 | $ | (5.7 | ) | $ | 68.7 |
EURONET WORLDWIDE, INC. | |||||||
Reconciliation of Adjusted Earnings per Share | |||||||
(unaudited - in millions, except share and per share data) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2021 | 2020 | ||||||
Net (loss) income attributable to Euronet Worldwide, Inc. | $ | (8.7 | ) | $ | 1.9 | ||
Foreign currency exchange loss | 4.0 | 18.8 | |||||
Intangible asset amortization(1) | 5.8 | 5.7 | |||||
Share-based compensation(2) | 8.5 | 6.3 | |||||
Non-cash interest accretion(3) | 3.9 | 3.7 | |||||
Income tax effect of above adjustments(4) | (2.1 | ) | (6.2 | ) | |||
Non-cash GAAP tax expense(5) | 1.1 | — | |||||
Adjusted earnings(6) | $ | 12.5 | $ | 30.2 | |||
Adjusted earnings per share - diluted(6) | $ | 0.23 | $ | 0.55 | |||
Diluted weighted average shares outstanding (GAAP) | 52,762,845 | 54,779,321 | |||||
Effect of anti-dilutive shares not included in GAAP calculation | 1,147,911 | — | |||||
Effect of unrecognized share-based compensation on diluted shares outstanding | 455,087 | 201,873 | |||||
Adjusted diluted weighted average shares outstanding | 54,365,843 | 54,981,194 | |||||