Slide 1: Third Quarter 2021 Earnings Conference Call
Third Quarter 2021 Earnings Conference Call October 27, 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: Q3 2021 Financial Highlights
Q3 2021 Financial Highlights Total Revenue $146 million - increased 7% Strong Results Adjusted EBITDA* $70 million - Flat Adjusted EPS* $0.62 - decreased 5% Delivered operating cash flow of $176 million High Operating Cash Returned $35 million to shareholder through dividends and Flow and
Slide 5: Puerto Rico Update
Puerto Rico Update Strong sales volume and transaction trends impacted by Federal Funds Federal stimulus impact continues to drive growth Return to pre-pandemic spending patterns like Back-to- School Over 70% of the population fully vaccinated Path to normalized environment Hospitalization r
Slide 6: Latin America Update
Latin America Update Double digit growth driven by key wins going into production & incremental revenues from existing clients Strong Growth and New issuing processing relationship with Caja Popular Mexicana New Wins Santander continues to progress at faster pace than originally expected Chi
Slide 7: Financial Summary
Financial Summary Joaquin Castrillo, Chief Financial Officer 7
Slide 8: Consolidated Results Q3 2021
Consolidated Results Q3 2021 (#039;s in millions, except per share) Q3 2021 Y-O-Y % Revenue $ 145.9 7% Adjusted EBITDA $ 69.8 —% Adjusted EBITDA margin 47.8 % -350 bps Adjusted Net Income $ 45.0 -5% Adjusted EPS $ 0.62 -5% Q3 revenue growth reflects increased transactional revenue in PR as federal fu
Slide 9: Merchant Acquiring
Merchant Acquiring (#039;s in millions) Q3 2021 Y-O-Y % Revenue $ 37.6 23% Adjusted EBITDA $ 19.2 21% Adjusted EBITDA margin 51.1 % -70 bps Q3 revenue growth driven by continued effect from Federal stimulus which helped drive sales volume growth and impact from Firstbank expanded relationship acquire
Slide 10: Payment Services, PR and Caribbean
Payment Services, PR and Caribbean (#039;s in millions) Q3 2021 Y-O-Y % Revenue $ 38.8 16% Adjusted EBITDA $ 21.8 18% Adjusted EBITDA margin 56.2 % 70 bps Q3 revenue growth driven by increased transactional revenue from POS and incremental revenue from ATH Movil and ATH Movil Business. Q3 margin in
Slide 11: Payment Services, Latin America
Payment Services, Latin America (#039;s in millions) Q3 2021 Y-O-Y % Revenue $ 26.8 26% Adjusted EBITDA $ 10.0 5% Adjusted EBITDA margin 37.3 % -760 bps Growth driven by recent client implementations such as Santander and organic growth. Q3 margin decline mainly a result of foreign currency remeasu
Slide 12: Business Solutions
Business Solutions (#039;s in millions) Q3 2021 Y-O-Y % Revenue $ 58.1 -8% Adjusted EBITDA $ 26.0 -21% Adjusted EBITDA margin 44.8 % -760 bps Revenue decrease primarily driven by prior year favorable impact of one-time DOE contract. Q3 margin decrease also mainly driven by DOE contract which had a
Slide 13: Corporate and Other
Corporate and Other (#039;s in millions) Q3 2021 Y-O-Y % Adjusted EBITDA $ (7.3) 6% % of Total Revenue (5.0)% — bps Q3 Corporate and Other Adjusted EBITDA slightly higher than prior year due to increases in personnel costs and professional services but flat year over year as a percent of total revenu
Slide 14: Roll Forward of 2021 Cash Balance
Roll Forward of 2021 Cash Balance ($ in millions) (1) Includes $18 million in restricted cash (2) Includes $19 million in restricted cash (3) Includes short term borrow ing rep ayments of $2 million, long-term debt repayments of $28 million and $9 million of w ithholding taxes paid on share-based co
Slide 15: Debt Summary
Debt Summary (#039;s in millions) 09/30/21 12/31/20 Unrestricted Cash $244.1 $202.6 Total Debt $472.2 $501.1 Term A Loan (2023 Maturity) L+175bps $174.4 $190.0 Term B Loan (2024 Maturity) L+350bps $296.7 $309.5 Revolver $125M (2023 Maturity) L+175bps $— $— Other $1.2 $1.6 Net Debt $228.1 $298.4 Weight
Slide 16: Full Year 2021 Outlook
Full Year 2021 Outlook (#039;s in millions, except per share) Low High Total Revenue $574 $583 Growth % 12% 14% Adjusted EPS $2.61 $2.66 Growth % 26% 28% GAAP EPS - Diluted $2.06 $2.11 Capital Expenditures $60 $60 Assumptions Adjusted EBITDA Margin 49% 50% Tax rate 14% 14% Share Count used to compute A
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) 2021 2020 Net income $ 35,260 $ 34,581 Income tax expense 7,134 6,513 Interest expense, net 5,180 5,438 Depreciation and amortization 18,745 18,127 EBITDA 66,319 64,
Slide 20: Reconciliation of Q3 2021 Segment Non-GAAP Results
Reconciliation of Q3 2021 Segment Non-GAAP Results Three months ended September 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 $ 38,773 $ 26,792 $ 37,606 $ 58,134
Slide 21: Reconciliation of Q3 2020 Segment Non-GAAP Results
Reconciliation of Q3 2020 Segment Non-GAAP Results Three months ended September 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 $ 33,284 $ 21,241 $ 30,646 $ 63,018
Slide 22: Outlook Summary and Reconciliation to Non-GAAP Adjusted EPS
Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share 2020 2021 Outlook Actual (Dollar amounts in millions, except per share data) Low High Revenues $ 574 to $ 583 $ 511 Earnings per Share (EPS) (GAAP) $ 2.06 to $ 2.11 $ 1.43 Per share adjustment to reconcile GAAP EPS to Non-GAA