Slide 1: Second quarter 2023 Earnings Conference Call
Second quarter 2023 Earnings Conference Call July 26, 2023
Slide 2: Forward-looking Statements
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: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights Total Revenue $167.1 million, increased 4% Adjusted EBITDA $74.5 million, increase versus $74.1 million in prior year quarter Strong Results Adjusted EBITDA margin of 44.6% Adjusted EPS $0.71, increased 6% Delivered operating cash flow of $126.2 million Cash Fl
Slide 5: Business Update
Business Update Strong growth in both Merchant Acquiring and Payment Processing PR Payments Increased sales volumes driving growth ATH Movil Business continues to drive growth Unemployment rate ticked up to 6.1%, still near the lowest level in decades PR Macro Economic Activity Index was u
Slide 6: Financial Summary
Financial Summary Joaquin Castrillo, Chief Financial Officer
Slide 7: Consolidated Results Q2 2023
Consolidated Results Q2 2023 (in USD mm, except per share) Q2 2023 Y-o-Y % Revenue $167.1 4% Adjusted EBITDA(1) $74.5 1% Adjusted EBITDA margin 44.6% -160bps Adjusted Net Income(1) $46.6 -3% Adjusted EPS(1) $0.71 6% Strong revenue growth across payment segments in Puerto Rico and LATAM, driven by
Slide 8: Merchant Acquiring Q2 2023
Merchant Acquiring Q2 2023 (in USD mm, except per share) Q2 2023 Y-o-Y % Revenue $41.2 7% Adjusted EBITDA(1) $15.6 -11% Adjusted EBITDA margin 37.9% -760bps Increase in revenue was primarily driven by higher spread resulting from the continued benefit of pricing initiatives, a shift in the mix of
Slide 9: Payment Services, PR and Caribbean Q2 2023
Payment Services, PR and Caribbean Q2 2023 (in USD mm, except per share) Q2 2023 Y-o-Y % Revenue $50.8 10% Adjusted EBITDA(1) $29.2 22% Adjusted EBITDA margin 57.5% 560bps Revenue increase was driven by strong transaction growth and continued growth in ATH Movil Business. Revenue continues to bene
Slide 10: Payment Services Latin America Q2 2023
Payment Services Latin America Q2 2023 (in USD mm, except per share) Q2 2023 Y-o-Y % Revenue $39.1 27% Adjusted EBITDA(1) $14.1 37% Adjusted EBITDA margin 36.1% 270bps Increase in revenue is driven by organic growth throughout the region and the contribution from acquisitions. Currency neutral gro
Slide 11: Business Solutions Q2 2023
Business Solutions Q2 2023 (in USD mm, except per share) Q2 2023 Y-o-Y % Revenue $57.0 -12% Adjusted EBITDA(1) $23.4 -22% Adjusted EBITDA margin 41.0% -510bps Revenue decrease was due primarily to the impact from the assets sold to Popular partially offset by an increase in IT consulting services
Slide 12: Corporate and Other Q2 2023
Corporate and Other Q2 2023 (in USD mm, except per share) Q2 2023 Y-o-Y % Adjusted EBITDA(1) -$7.8 -5% % of Total Revenue 4.7% -10bps Corporate and Other Adjusted EBITDA as a percentage of total revenues of 4.7%, consistent with prior year and in line with our expectations. (1) Adjusted EBITDA, Ad
Slide 13: Cash Flow Bridge Q2 2023
Cash Flow Bridge Q2 2023 ($ in millions) Operating Activities $126.2 Ending Beginning Balance2 Balance1 ($35.5) ($22.9) $211.1 $218.9 $203.7 CAPEX ($36.3) Paysmart ($22.3) ($1.8) Acquisition Debt (Net) & Repurchases & Fx Impact Other3 Dividends 12/31/2022 6/30/2023 (1) Includes ~$18M in restricted c
Slide 14: Debt Summary Q2 2023
Debt Summary Q2 2023 June 30, (in USD mm, except per share) 2023 2022 Unrestricted Cash $191.6 $288.0 Total Debt $404.6 $457.9 Term A Loan (2023 Maturity) L+175bps 0.0 163.4 Term B Loan (2024 Maturity) L+350bps 0.0 294.2 Term A Loan (2027 Maturity) S+150bps 404.6 0.0 Revolver (2027 Maturity, $200M)
Slide 15: Outlook 2023
Outlook 2023 FY2023 Outlook Estimation range (in USD mm, except per share) Low High Total Revenue $652 $658 Growth, % 5.4% 6.4% GAAP EPS – Diluted $1.82 $1.91 Adjusted EPS $2.75 $2.83 Growth, % 9% 12% Capital Expenditures $70 Assumptions: Adjusted EBITDA Margin 43% 44% Tax Rate 16% 17% Share Count t
Slide 16: Q&A
Q&A
Slide 17: Appendix
Appendix
Slide 18: 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 19: Reconciliation of GAAP to Non-GAAP Operating Results
Reconciliation of GAAP to Non-GAAP Operating Results Three months ended June 30, (Dollar amounts in thousands, except share data) 2023 2022 Net income $28,050 $33,556 Income tax expense 6,586 7,688 Interest expense, net 3,537 5,127 Depreciation and amortization 22,329 19,560 EBITDA 60,502 65,931 (1)
Slide 20: Reconciliation of Q2 2023 Segment Non-GAAP Results
Reconciliation of Q2 2023 Segment Non-GAAP Results Three months ended June 30, 2023 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 50,795 $ 39,076 $ 41,248 $ 56,971 $ (21,0
Slide 21: Reconciliation of Q2 2022 Segment Non-GAAP Results
Reconciliation of Q2 2022 Segment Non-GAAP Results Three months ended June 30, 2022 (as recast) Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 46,078 $ 30,784 $ 38,539 $ 64
Slide 22: Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share
Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share 2022 2023 Outlook (As recast) (Dollar amounts in millions, except share data) Low High Revenues $652 to $658 $618 Earnings per Share (EPS) (GAAP) $1.82 to $1.91 $3.45 Per share adjustment to reconcile GAAP EPS to Non-GAAP Adj