Slide 1: Third Quarter 2020 Earnings Conference Call
Third Quarter 2020 Earnings Conference Call October 29, 2020 1
Slide 2: Disclosures
Disclosures Forward-looking Statements Certain statements in this presentation constitute “forward-looking statements” within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncer
Slide 3: Business Summary
Business Summary Mac Schuessler, President and CEO 3
Slide 4: Q3 2020 Financial Highlights
Q3 2020 Financial Highlights Total Revenue $137 million - increased 15% Strong results Adjusted EBITDA* $70 million - increased 26% Adjusted EPS* $0.65 - increased 38% Delivered YTD operating cash flow of $121 million High cashflow and Returned $18 million YTD to shareholder through divide
Slide 5: Puerto Rico Update
Puerto Rico Update • Merchant revenue growth surged in July Business climate • COVID-19 restrictions eased further on September 12 improved • Positive future stimulus from Federal funds • Implemented Department of Education contract New contract and continued benefit • Continued growth of digital pa
Slide 6: Latin America Update
Latin America Update • Uneven response to COVID-19 through the region Business climate ⦁ Chile and Colombia controlling spread, stabilizing continues to be impacted by ⦁ Mexico and Brazil re-opening many merchants pandemic ⦁ Outlook remains uncertain • Cross-selling e-com gateway in Costa Rica and P
Slide 7: Corporate Culture
Corporate Culture Employee engagement survey participation 85%, 13% increase Scholarships awarded = 160, +20% and 50-50 gender diverse recipients Environment, Social and Governance focus = improved ratings 7
Slide 8: Financial Summary
Financial Summary Joaquin Castrillo, Chief Financial Officer 8
Slide 9: Consolidated Results Q3 2020
Consolidated Results Q3 2020 Q3 2020 (#039;s in millions, except per share) Y-O-Y % YTD Y-O-Y % Revenue $ 136.5 15% $ 376.4 4% Adjusted EBITDA $ 70.0 26% $ 176.5 3% Adjusted EBITDA margin 51.3% 460 bps 46.9% -50 bps Adjusted Net Income $ 47.2 37% $ 108.5 —% Adjusted EPS $ 0.65 38% $ 1.49 1% • Q3 revenu
Slide 10: Merchant Acquiring
Merchant Acquiring (#039;s in millions) Q3 2020 Y-O-Y % YTD Y-O-Y % Revenue $ 30.6 16% $ 80.5 2% Adjusted EBITDA $ 15.9 42% $ 40.6 14% Adjusted EBITDA margin 51.8% 940 bps 50.4% 560 bps • Q3 revenue growth due to increased sales volume driven by high average ticket and increased spread. • Q3 margin ref
Slide 11: Payment Services, PR and Caribbean
Payment Services, PR and Caribbean (#039;s in millions) Q3 2020 Y-O-Y % YTD Y-O-Y % Revenue $ 33.3 9% $ 90.6 -2% Adjusted EBITDA $ 18.5 1% $ 47.8 -20% Adjusted EBITDA margin 55.5% -490 bps 52.8% -1180 bps • Q3 revenue growth primarily reflects higher ATH Movil and ATH Movil Business revenue partially o
Slide 12: Payment Services, Latin America
Payment Services, Latin America (#039;s in millions) Q3 2020 Y-O-Y % YTD Y-O-Y % Revenue $ 21.2 3% $ 62.7 —% Adjusted EBITDA $ 9.5 26% $ 23.9 1% Adjusted EBITDA margin 44.9% 810 bps 38.1% 30 bps • Q3 revenue growth reflects PlacetoPay acquisition and Alelo implementation partially offset by $1M in anti
Slide 13: Business Solutions
Business Solutions (#039;s in millions) Q3 2020 Y-O-Y % YTD Y-O-Y % Revenue $ 63.0 19% $ 174.5 9% Adjusted EBITDA $ 33.0 32% $ 84.5 17% Adjusted EBITDA margin 52.4% 500 bps 48.4% 300 bps • Q3 revenue increase primarily due to the DOE contract for $4.4 million, new services for Popular and increases rel
Slide 14: Corporate and Other
Corporate and Other (#039;s in millions) Q3 2020 Y-O-Y % YTD Y-O-Y % Adjusted EBITDA $ (6.9) 1% $(20.2) -2% % of Total Revenue (5.0)% 70 bps (5.4)% 30 bps • Q3 Corporate and Other Adjusted EBITDA slightly increased from prior year and was favorable as a percent of total revenue. *See Non-GAAP reconcili
Slide 15: Roll Forward of 2020 Cash Balance
Roll Forward of 2020 Cash Balance ($’s in Millions) Operating Activities Ending Balance(2) Beginning Capex Balance(1) Debt (Net) and other(3) Dividends FX impact and Share Repurchases 12/31/2019 9/30/2020 (1) Includes $20 million in restricted cash (2) Includes $18 million in restricted cash (3) Inc
Slide 16: Debt Summary
Debt Summary (#039;s in millions) 09/30/20 12/31/19 Unrestricted Cash $ 144.1 $ 111.0 Total Debt $ 504.7 $ 533.4 Term A Loan (2023 Maturity) L+200bps $ 192.8 $ 209.0 Term B Loan (2024 Maturity) L+350bps $ 310.3 $ 321.8 Revolver (2023 Maturity, $125M) L+200bps $ — $ — Other $ 1.6 $ 2.6 Net Debt $ 360.5
Slide 17: Q&A
Q&A 17
Slide 18: Non-GAAP Financial Information
Non-GAAP Financial Information The non-GAAP measures referenced in this release material are supplemental measures of the Company’s performance and are not required by, or presented in accordance with, accounting principles generally accepted in the United States of America (“GAAP”). They are not me
Slide 19: Reconciliation of GAAP to Non-GAAP Operating Results
Reconciliation of GAAP to Non-GAAP Operating Results Three months ended September 30, (Dollar amounts in thousands, except share data) 2020 2019 Net income $ 34,581 $ 24,786 Income tax expense 6,513 3,720 Interest expense, net 5,438 6,919 Depreciation and amortization 18,127 16,972 EBITDA 64,659 52,
Slide 20: Reconciliation of Q3 2020 Segment Non-GAAP Results
Reconciliation of Q3 2020 Segment Non-GAAP Results Three months ended September 30, 2020 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 33,284 $ 21,241 $ 30,646 $ 63,018 $
Slide 21: Reconciliation of Q3 2019 Segment Non-GAAP Results
Reconciliation of Q3 2019 Segment Non-GAAP Results Three months ended September 30, 2019 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 30,411 $ 20,596 $ 26,436 $ 52,945 $