Contact:
• | Revenues of $714.7 million, a 35% increase from $527.8 million (28% increase on a constant currency1 basis). |
• | Operating income of $30.1 million, compared with an operating loss of $101.3 million. |
• | Adjusted operating income2 of $30.1 million, an 812% increase from $3.3 million (748% increase on a constant currency basis). |
• | Adjusted EBITDA3 of $74.7 million, a 104% increase from $36.6 million (92% increase on a constant currency basis). |
• | Net income attributable to Euronet of $8.6 million or $0.16 diluted earnings per share, compared with net loss of $115.8 million or $2.18 diluted loss per share. |
• | Adjusted earnings per share4 of $0.53, compared with $0.04. |
• | Euronet's cash and cash equivalents were $994.5 million and ATM cash was $565.1 million, totaling $1,560 million as of June 30, 2021, and availability under its revolving credit facilities was approximately $950 million. |
Segment and Other Results
The EFT Processing Segment reports the following results for the second quarter 2021 compared with the same period or date in 2020:
• | Revenues of $113.5 million, a 45% increase from $78.5 million (36% increase on a constant currency basis). |
• | Operating loss of $25.3 million, a 55% improvement from an operating loss of $56.6 million (60% improvement on a constant currency basis). |
• | Adjusted operating loss of $25.3 million, a 27% improvement from an adjusted operating loss of $34.7 million (35% improvement on a constant currency basis). |
• | Adjusted EBITDA of ($3.1 million), a 79% improvement from ($14.8 million) (86% improvement on a constant currency basis). |
• | Transactions of 988 million, a 46% increase from 679 million. |
• | Total of 46,246 installed ATMs as of June 30, 2021, a 7% decrease from 49,719. Operated 43,559 active ATMs as of June 30, 2021, a 5% increase from 41,648. |
• | Revenues of $243.9 million, a 30% increase from $187.6 million (21% increase on a constant currency basis). |
• | Operating income of $27.2 million, a 51% increase from $18.0 million (42% increase on a constant currency basis). |
• | Adjusted EBITDA of $29.3 million, a 49% increase from $19.7 million (40% increase on a constant currency basis). |
• | Transactions of 788 million, a 35% increase from 585 million. |
• | Point-of-sale ("POS") terminals of approximately 748,000 as of June 30, 2021, a 6% increase from approximately 703,000. |
• | Retailer locations of approximately 333,000 as of June 30, 2021, a 3% increase from approximately 324,000. |
Transaction growth was primarily driven by continued strength in digital channel 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 $359.3 million, a 37% increase from $262.8 million (30% increase on a constant currency basis). |
• | Operating income of $44.0 million, compared with an operating loss of $55.2 million. |
• | Adjusted operating income of $44.0 million, a 60% increase from $27.5 million (49% increase on a constant currency basis). |
• | Adjusted EBITDA of $53.2 million, a 48% increase from $36.0 million (37% increase on a constant currency basis). |
• | Total transactions of 34.2 million, a 33% increase from 25.8 million. |
• | Network locations of approximately 490,000 as of June 30, 2021, a 13% increase from approximately 435,000. |
(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 impairment charges 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.
(4) 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) goodwill impairment charges, e) non-cash interest expense, f) non-cash income tax expense (benefit) and g) 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 | |||||
June 30, | As of | ||||
2021 | December 31, | ||||
(unaudited) | 2020 | ||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 994.5 | $ | 1,420.3 | |
ATM cash | 565.1 | 411.1 | |||
Restricted cash | 3.3 | 3.3 | |||
Settlement assets | 929.7 | 1,140.9 | |||
Trade accounts receivable, net | 138.6 | 117.5 | |||
Prepaid expenses and other current assets | 270.5 | 272.8 | |||
Total current assets | 2,901.7 | 3,365.9 | |||
Property and equipment, net | 362.9 | 378.4 | |||
Right of use lease asset, net | 173.6 | 162.1 | |||
Goodwill and acquired intangible assets, net | 766.6 | 787.7 | |||
Other assets, net | 234.3 | 232.6 | |||
Total assets | $ | 4,439.1 | $ | 4,926.7 | |
LIABILITIES AND EQUITY | |||||
Current liabilities: | |||||
Settlement obligations | $ | 929.7 | $ | 1,140.9 | |
Accounts payable and other current liabilities | 632.1 | 654.9 | |||
Current portion of operating lease liabilities | 53.7 | 52.4 | |||
Short-term debt obligations | 6.0 | 7.2 | |||
Total current liabilities | 1,621.5 | 1,855.4 | |||
Debt obligations, net of current portion | 1,176.4 | 1,437.6 | |||
Operating lease liabilities, net of current portion | 122.0 | 106.5 | |||
Capital lease obligations, net of current portion | 3.8 | 6.2 | |||
Deferred income taxes | 39.1 | 37.9 | |||
Other long-term liabilities | 36.8 | 37.2 | |||
Total liabilities | 2,999.6 | 3,480.8 | |||
Equity | 1,439.5 | 1,445.9 | |||
Total liabilities and equity | $ | 4,439.1 | $ | 4,926.7 | |
EURONET WORLDWIDE, INC. | |||||||
Consolidated Statements of Operations | |||||||
(unaudited - in millions, except share and per share data) | |||||||
Three Months Ended | |||||||
June 30, | |||||||
2021 | 2020 | ||||||
Revenues | $ | 714.7 | $ | 527.8 | |||
Operating expenses: | |||||||
Direct operating costs | 470.8 | 350.0 | |||||
Salaries and benefits | 121.1 | 90.9 | |||||
Selling, general and administrative | 59.1 | 53.4 | |||||
Impairment of goodwill | — | 104.6 | |||||
Depreciation and amortization | 33.6 | 30.2 | |||||
Total operating expenses | 684.6 | 629.1 | |||||
Operating income (loss) | 30.1 | (101.3 | ) | ||||
Other income (expense): | |||||||
Interest income | 0.2 | 0.2 | |||||
Interest expense | (9.4 | ) | (8.9 | ) | |||
Foreign currency exchange gain | 0.1 | 2.5 | |||||
Other income | — | 0.7 | |||||
Total other expense, net | (9.1 | ) | (5.5 | ) | |||
Income (Loss) before income taxes | 21.0 | (106.8 | ) | ||||
Income tax expense | (12.4 | ) | (8.9 | ) | |||
Net income (loss) | 8.6 | (115.7 | ) | ||||
Net income attributable to noncontrolling interests | — | (0.1 | ) | ||||
Net income (loss) attributable to Euronet Worldwide, Inc. | $ | 8.6 | $ | (115.8 | ) | ||
Earnings (loss) per share attributable to Euronet | |||||||
Worldwide, Inc. stockholders - diluted | $ | 0.16 | $ | (2.18 | ) | ||
Diluted weighted average shares outstanding | 54,008,839 | 53,080,303 | |||||
EURONET WORLDWIDE, INC. | |||||||||||||||||||
Reconciliation of Net Income (Loss) to Operating Income (Loss) to Adjusted Operating Income (Loss) and Adjusted EBITDA | |||||||||||||||||||
(unaudited - in millions) | |||||||||||||||||||
Three months ended June 30, 2021 | |||||||||||||||||||
EFT Processing | epay | Money Transfer | Corporate Services | Consolidated | |||||||||||||||
Net income | $ | 8.6 | |||||||||||||||||
Add: Income tax expense | 12.4 | ||||||||||||||||||
Add: Total other expense, net | 9.1 | ||||||||||||||||||
Operating (loss) income | $ | (25.3 | ) | $ | 27.2 | $ | 44.0 | $ | (15.8 | ) | $ | 30.1 | |||||||
Add: Depreciation and amortization | 22.2 | 2.1 | 9.2 | 0.1 | 33.6 | ||||||||||||||
Add: Share-based compensation | — | — | — | 11.0 | 11.0 | ||||||||||||||
(Loss) earnings before interest, taxes, depreciation, amortization, and share-based compensation (Adjusted EBITDA) (1) | $ | (3.1 | ) | $ | 29.3 | $ | 53.2 | $ | (4.7 | ) | $ | 74.7 | |||||||
Three months ended June 30, 2020 | |||||||||||||||||||
EFT Processing | epay | Money Transfer | Corporate Services | Consolidated | |||||||||||||||
Net loss | $ | (115.7) | |||||||||||||||||
Add: Income tax expense | 8.9 | ||||||||||||||||||
Add: Total other expense, net | 5.5 | ||||||||||||||||||
Operating (loss) income | $ | (56.6 | ) | $ | 18.0 | $ | (55.2) | $ | (7.5 | ) | $ | (101.3 | ) | ||||||
Add: Goodwill impairment charges | 21.9 | — | 82.7 | — | 104.6 | ||||||||||||||
Adjusted operating (loss) income(1) | (34.7 | ) | 18.0 | 27.5 | (7.5 | ) | 3.3 | ||||||||||||
Add: Depreciation and amortization | 19.9 | 1.7 | 8.5 | 0.1 | 30.2 | ||||||||||||||
Add: Share-based compensation | — | — | — | 3.1 | 3.1 | ||||||||||||||
(Loss) earnings before interest, taxes, depreciation, amortization, share-based compensation and goodwill impairment charges (Adjusted EBITDA) (1) | $ | (14.8 | ) | $ | 19.7 | $ | 36.0 | $ | (4.3 | ) | $ | 36.6 |
EURONET WORLDWIDE, INC. | |||||||
Reconciliation of Adjusted Earnings (Loss) per Share | |||||||
(unaudited - in millions, except share and per share data) | |||||||
Three Months Ended | |||||||
June 30, | |||||||
2021 | 2020 | ||||||
Net income (loss) attributable to Euronet Worldwide, Inc. | $ | 8.6 | $ | (115.8 | ) | ||
Foreign currency exchange gain | (0.1 | ) | (2.5 | ) | |||
Intangible asset amortization(1) | 5.8 | 5.5 | |||||
Share-based compensation(2) | 11.0 | 3.1 | |||||
Impairment of goodwill | — | 104.6 | |||||
Non-cash interest accretion(3) | 4.0 | 3.8 | |||||
Income tax effect of above adjustments(4) | (1.3 | ) | 2.8 | ||||
Non-cash GAAP tax expense(5) | 1.1 | 0.6 | |||||
Adjusted earnings(6) | $ | 29.1 | $ | 2.1 | |||
Adjusted earnings per share - diluted(6) | $ | 0.53 | $ | 0.04 | |||
Diluted weighted average shares outstanding (GAAP) | 54,008,839 | 53,080,303 | |||||
Effect of unrecognized share-based compensation on diluted shares outstanding | 419,919 | 151,479 | |||||
Adjusted diluted weighted average shares outstanding | 54,428,758 | 53,231,782 | |||||