Slide 1: Second Quarter 2021 Earnings Conference Call
Second Quarter 2021 Earnings Conference Call August 3, 2021 1
Slide 2: Disclosures
Disclosures Forward-looking Statements Certain statements in this presentation constitute “forw ard-looking statements” w ithin the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995. Such forw ard-looking statements involve know n and unknow n risks,
Slide 3: Business Summary
Business Summary Mac Schuessler, President and CEO 3
Slide 4: Q2 2021 Financial Highlights
Q2 2021 Financial Highlights Total Revenue $149 million - increased 26% Strong Results Adjusted EBITDA* $80 million - increased 60% Adjusted EPS* $0.78 - increased 105% Delivered operating cash flow of $112 million High Operating Cash Returned $32 million to shareholder through dividends a
Slide 5: Puerto Rico Update
Puerto Rico Update Strong volume growth, benefitting from Federal stimulus Tailwinds from stimulus driving Continued growth in ATH Movil and ATH Movil Business growth Printing contract announced in prior quarter now live Most COVID-19 restrictions in Puerto Rico now removed Business climate
Slide 6: Latin America Update
Latin America Update Pandemic progress COVID restrictions vary by country varies by country Vaccine distribution begun but progress mixed across the region Double digit growth driven by key wins going into production & Strong growth incremental revenues from existing clients Continued expans
Slide 7: Financial Summary
Financial Summary Joaquin Castrillo, Chief Financial Officer 7
Slide 8: Consolidated Results Q2 2021
Consolidated Results Q2 2021 (#039;s in millions, except per share) Q2 2021 Y-O-Y % Revenue $149.1 26% Adjusted EBITDA $80.3 60% Adjusted EBITDA margin 53.8 % 1,120 bps Adjusted Net Income $57.1 106% Adjusted EPS $0.78 105% Q2 revenue growth reflects increased transactional revenue in PR driven by in
Slide 9: Merchant Acquiring
Merchant Acquiring (#039;s in millions) Q2 2021 Y-O-Y % Revenue $38.3 55% Adjusted EBITDA $20.5 54% Adjusted EBITDA margin 53.6 % -40 bps Q2 revenue growth driven by sales volume growth over COVID-19 impacted quarter last year and the impact of Federal Stimulus on overall spend. Q2 margin reflects
Slide 10: Payment Services, PR and Caribbean
Payment Services, PR and Caribbean (#039;s in millions) Q2 2021 Y-O-Y % Revenue $38.6 41% Adjusted EBITDA $23.6 78% Adjusted EBITDA margin 61.2 % 1,290 bps • Q2 revenue growth primarily reflects increased transactions for POS, ATM and ATH Movil from the prior year’s COVID-19 impacted results, as well a
Slide 11: Payment Services, Latin America
Payment Services, Latin America (#039;s in millions) Q2 2021 Y-O-Y % Revenue $25.8 30% Adjusted EBITDA $11.0 80% Adjusted EBITDA margin 42.5 % 1,180 bps • Q2 revenue growth reflects impact from new contracts such as Santander, and Mercado Libre, incremental volumes/services from Banco Popular de CR and
Slide 12: Business Solutions
Business Solutions (#039;s in millions) Q2 2021 Y-O-Y % Revenue $60.7 9% Adjusted EBITDA $30.6 27% Adjusted EBITDA margin 50.5 % 720 bps • Q2 revenue increase primarily due to increased core banking revenues and services that began in the second half of last year. • Q2 margin expansion primarily reflec
Slide 13: Corporate and Other
Corporate and Other (#039;s in millions) Q2 2021 Y-O-Y % Adjusted EBITDA ($5.5) -16% % of Total Revenue 3.7% -190 bps • Q2 Corporate and Other Adjusted EBITDA was lower than prior year due to higher revenues. *See Non-GAAP reconciliation summary in appendix, p.20-21. 13
Slide 14: Roll Forward of 2021 Cash Balance
Roll Forward of 2021 Cash Balance ($ in millions) Operating Activ ities $112 Ticketpop Sale $(30) $1 Capex $(15) $(3) FB Portf olio AFS Debt Beginning Ending Securities Balance1 $(35) Balance2 $221 Debt (Net) $219 & Other 3 $(32) Repurchases & Div idends 12/31/2020 06/30/2021 (1) Includes ~$18M in r
Slide 15: Debt Summary
Debt Summary (#039;s in millions) 6/30/2021 12/31/2020 Unrestricted Cash $199.9 $202.6 Total Debt $475.8 $501.1 Term A Loan (2023 Maturity) L+175bps $177.1 $190.0 Term B Loan (2024 Maturity) L+350bps $297.5 $309.5 Revolver; $125M (2023 Maturity) L+175bps — — Other $1.3 $1.6 Net Debt $275.9 $298.4 Weigh
Slide 16: Full Year 2021 Outlook
Full Year 2021 Outlook (#039;s in millions, except per share) Low High Total Revenue $570 $579 Growth % 12% 13% Adjusted EPS $2.56 $2.66 Growth % 24% 28% GAAP EPS - Diluted $2.01 $2.11 Capital Expenditures $60 $60 Assumptions: Adjusted EBITDA Margin 49% 50% Tax rate 13% 14% Share Count used to compute
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 m onths ended June 30, (Dollar amounts in thousands, except share data) 2021 2020 Net incom e $ 49,091 $ 15,625 Income tax expense 2,632 4,520 Interest expense, net 5,208 5,810 Depreciation and amortization 18,723 17,839 EBITDA 75,654 43,794
Slide 20: Reconciliation of Q2 2021 Segment Non-GAAP Results
Reconciliation of Q2 2021 Segment Non-GAAP Results Three months ended June 30, 2021 Payment Serv ices - Payment Puerto Rico & Serv ices - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 38,589 $ 25,835 $ 38,335 $ 60,693 $ (14
Slide 21: Reconciliation of Q2 2020 Segment Non-GAAP Results
Reconciliation of Q2 2020 Segment Non-GAAP Results Three months ended June 30, 2020 Payment Serv ices - Payment Puerto Rico & Serv ices - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 27,461 $ 19,797 $ 24,764 $ 55,495 $ (9,
Slide 22: Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share
Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share 2020 2021 Outlook Actual (Dollar amounts in millions, except share data) Low High Revenues $ 570 to $ 579 $ 511 Earnings per Share (EPS) (GAAP) $ 2.01 to $ 2.11 $ 1.43 Per share adjustment to reconcile GAAP EPS to Non-GAAP Ad