Slide 1: First Quarter 2024 Earnings Conference Call
First Quarter 2024 Earnings Conference Call May 1, 2024
Slide 2: Forward-looking Statements and Use of Non-GAAP Measures
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, uncertainties, an
Slide 3: Business Summary
Business Summary Mac Schuessler, President and CEO
Slide 4: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights Total Revenue $205.3 million, 28% increase Adjusted EBITDA $78.2 million, 16% increase Strong Results Adjusted EBITDA margin of 38.1% Adjusted EPS $0.72, 4% increase Delivered operating cash flow of approximately $36.0 million Cash Flow and Returned $3 millio
Slide 5: Puerto Rico Update
Puerto Rico Update Payments PR grew 10% YoY, driven by higher transactions and strength in ATH Movil Business Segments performance Merchant Acquiring grew 7% YoY, driven by sales volume growth and a higher spread Update Business Solutions grew 4% YoY, due to growth in various lines of business
Slide 6: Latin America Update
Latin America Update Revenue grew significantly at a 110% YoY Segment Revenue increase reflects the contribution from the Sinqia acquisition Update Continued organic growth from the legacy business Technology modernization – laid out detailed roadmaps and identified key projects Sinqia Updat
Slide 7: Financial Summary
Financial Summary Joaquin Castrillo, Chief Financial Officer
Slide 8: Consolidated Results Q1 2024
Consolidated Results Q1 2024 Q1 2024 Y-o-Y % (in USD mm, except per share) Revenue $205.3 28% Adjusted EBITDA (1) $78.2 16% Adj. EBITDA margin 38.1% -390bps Adjusted Net Income (1) $48.0 5% Adjusted EPS (1) $0.72 4% The increase in revenue reflects a full quarter contribution of Sinqia and continu
Slide 9: Merchant Acquiring Q1 2024
Merchant Acquiring Q1 2024 Q1 2024 Y-o-Y % (in USD mm) Revenue $43.1 7% Adjusted EBITDA(1) $16.2 4% Adj. EBITDA margin 37.6% -110bps Increase in revenue reflects strong sales volume, driven by existing merchants, effects of inflation on key verticals, new merchants and a higher spread. The margi
Slide 10: Payment Services, PR and Caribbean Q1 2024
Payment Services, PR and Caribbean Q1 2024 Q1 2024 Y-o-Y % (in USD mm) Revenue $53.0 10% Adjusted EBITDA(1) $30.4 9% Adj. EBITDA margin 57.2% -30bps Revenue growth was driven by higher transactions as well as the continued strength in ATH Movil Business. Margin decrease driven by higher professi
Slide 11: Latin America Payments and Solutions Q1 2024
Latin America Payments and Solutions Q1 2024 Q1 2024 Y-o-Y % (in USD mm) Revenue $74.2 110% Adjusted EBITDA(1) $16.3 57% Adj. EBITDA margin 22.0% -740bps Increase in revenue mainly reflects a full quarter of revenue contribution from Sinqia, contribution from the paySmart acquisition completed in
Slide 12: Business Solutions Q1 2024
Business Solutions Q1 2024 Q1 2024 Y-o-Y % (in USD mm) Revenue $58.1 4% Adjusted EBITDA(1) $23.0 3% Adj. EBITDA margin 39.6% -50bps Revenue increase driven by CPI escalator of approximately 1.5% and growth across several business lines. Margin decrease was primarily due to higher cost of sales a
Slide 13: Corporate and Other Q1 2024
Corporate and Other Q1 2024 Q1 2024 Y-o-Y % (in USD mm) Adjusted EBITDA(1) -$7.7 15% % of Total Revenue 3.8% -190bps Corporate and Other Adjusted EBITDA as a percentage of total revenues of 3.8% compared to 5.7% in prior year due to lower personnel costs and professional fees. (1) See Non-GAAP rec
Slide 14: Roll Forward of 2024 Cash Balance
Roll Forward of 2024 Cash Balance ($ in millions) Mainly driven by $70M ASR Add. Debt, Operating Borrowing Activities $80.0 Beginning Ending Balance1 $36.0 Balance2 $343.7 ($23.1) $337.6 ($21.9) Debt (Net) & ($73.3) ($3.8) CAPEX Other3 Repurchases & Fx Impact Dividends Mainly driven by $70M ASR 12/3
Slide 15: Debt Summary
Debt Summary March 31, (in USD mm, except per share) 2024 2023 Unrestricted Cash $293.7 $173.7 Total Debt $1,086.4 $409.8 Term A Loan (2027 Maturity) S+150bps 447.5 409.8 S+350bps Term B Loan (2030 Maturity) 540.0 - Revolver ($200M) 80.0 - Deferred Consideration from Buss. Combination 18.9 - EVTC Ne
Slide 16: Outlook 2024
Outlook 2024 (in USD mm, except per share) Low High Total Revenue $846 $854 Growth, % 22% 23% GAAP EPS – Diluted $1.46 $1.60 Adjusted EPS $2.85 $2.94 Growth, % 1% 4% Capital Expenditures $80 Assumptions: Adjusted EBITDA Margin 38.5% 39.5% Tax Rate 6% 7% Share Count to compute Adjusted EPS 65.8mm 65.
Slide 17: Q&A
Q&A
Slide 18: Appendix
Appendix
Slide 19: Non-GAAP Reconciliation Summary
Non-GAAP Reconciliation Summary The non-GAAP measures referenced in this earnings release 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 m
Slide 20: Reconciliation of GAAP to Non-GAAP Operating Results
Reconciliation of GAAP to Non-GAAP Operating Results Three months ended March 31, (Dollar amounts in thousands, except share data) 2024 2023 Net income $16,387 $30,063 Income tax expense 292 2,818 Interest expense, net 16,579 4,510 Depreciation and amortization 34,441 19,432 EBITDA 67,699 56,823 (1)
Slide 21: Reconciliation of Q1 2024 Segment Non-GAAP Results
Reconciliation of Q1 2024 Segment Non-GAAP Results Three months ended March 31, 2024 Payment Services - Latin America Puerto Rico & Payments and Merchant Business Corporate and (In thousands) Caribbean Solutions Acquiring, net Solutions Other (1) Total Revenues $ 53,031 $ 74,216 $ 43,099 $ 58,128 $
Slide 22: Reconciliation of Q1 2023 Segment Non-GAAP Results
Reconciliation of Q1 2023 Segment Non-GAAP Results Three months ended March 31, 2023 Payment Services - Latin America Puerto Rico & Payments and Merchant Business Corporate and (In thousands) Caribbean Solutions Acquiring, net Solutions Other (1) Total Revenues $ 48,429 $ 35,317 $ 40,347 $ 55,695 $
Slide 23: Outlook Summary and Reconciliation to Non-GAAP Adjusted EPS
Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share 2023 2024 Outlook Actual (Dollar amounts in millions, except share data) Low High Revenues $846 to $854 $695 Earnings per Share (EPS) (GAAP) $1.46 to $1.60 $1.21 Per share adjustment to reconcile GAAP EPS to Non-GAAP Adjusted
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