Euronet Worldwide, Inc. · NASDAQ:EEFT
Euronet Worldwide — Q2 2020 Earnings Presentation
21 slides from Euronet Worldwide's earnings presentation, Jul 29, 2020
Slide 1: Second Quarter 2020 Financial Results
Second Quarter 2020 Financial Results Presenters: MICHAEL J. BROWN, CHAIRMAN & CEO RICK L. WELLER, EVP & CFO KEVIN J. CAPONECCHI, EVP & CEO EPAY, EFT ASIA PACIFIC & SOFTWARE
Slide 2: Forward-looking statements
Statements contained in this presentation that concern Euronet's or its management's intentions, expectations, or predictions of future performance, are forward-looking statements. Euronet's actual results may vary materially from those anticipated in such forward-looking statements as a result of a
Slide 3: Definitions of non-GAAP terms
Unless specifically noted otherwise within this presentation, the following terms are hereby defined as follows: Constant currency measures are computed as if foreign currency exchange rates did not change from the prior period. This information is provided to illustrate the impact of changes in for
Slide 4: Business Update
BUSINESS UPDATE 4
Slide 5: Business Trends: Utilized Leading-Edge Technology to Enable Partners During Pandemic
Business Trends: • April was the low point of the COVID-19 pandemic across each of our business • EFT continues to be impacted by governmental bans on international travel, but has experienced a slight rebound in domestic transactions and has achieved nearly $25 million in cost savings through the s
Slide 6: Expanded Distribution
Expanded Distribution • Added mobile top-up vouchers sales to Euronet’s owned ATM network in Italy • Enabled cardless payouts for BNP Paribas customers in Poland • Added Uber, Spotify and Netflix via a new retailer, Afterpay, in Australia • Launched numerous digital media products through the Google
Slide 7: Product Diversity and Cost Savings
Product Diversity • Signed an ATM outsourcing agreement with Millennium Bank in Poland • Signed an ATM driving and card management agreement with Standard Chartered Bank in Pakistan • Signed an ATM driving and card management agreement with Ohridska Bank in North Macedonia • Launched bank deposit se
Slide 8: REV Payments Cloud and REN Foundation
REV Payments Cloud • Launched mobile top-up through Amazon Pay mobile Wallet • Launched mobile top-up, direct-to-home top-up and Google Play recharge credits through the Google Play Wallet • Signed agreement to add additional web services that will support Raiffeisen Bank’s RaiPay mobile wallet • In
Slide 9: Financial Highlights Second Quarter 2020
FINANCIAL HIGHLIGHTS Second QUARTER 2020
Slide 10: Unrestricted Cash, ATM Cash, Debt and Leverage
USD (in millions) 3/31/2020 6/30/2020 Unrestricted Cash $ 709.5 $ 864.9 ATM Cash 558.6 410.5 Settlement Assets 773.3 892.7 Total Assets 4,184.4 3,961.5 Settlement Obligations 773.3 892.7 Total Debt 1,101.2 1,116.5 Total Debt to Trailing Twelve Month Adjusted EBITDA Multiple 1.9x 2.4x Net Debt to Tra
Slide 11: Q2 2020 Revenue, Operating Loss, Adjusted EBITDA and EPS
Revenue - $527.8 million • 24% decrease from $691.9 million for Q2 2019 • 22% decrease on a constant currency basis Operating loss - $101.3 million • Compared with operating income of $117.9 million • 188% decrease on a constant currency basis Adjusted operating income - $3.3 million • 97% decrease
Slide 12: Transaction growth by segment
EFT transactions declined 10% epay transactions grew 59% Money Transfer transactions declined 11% 12
Slide 13: Segment results: revenue, adjusted operating income, adjusted EBITDA
Adjusted Operating Adjusted Revenue USD (in millions) Income (Loss) EBITDA Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 EFT Processing $ 231.9 $ 78.5 $ 75.2 $ (34.7) $ 93.0 $ (14.8) % Change -66% -146% -116% epay 184.2 187.6 17.6 18.0 19.4 19.7 % Change 2% 2% 2% Money Transfer 276.8 262.8 35.3 27
Slide 14: Segment results in constant currency
Adjusted Operating Adjusted Revenue USD (in millions) Income (Loss) EBITDA Q2 2019 Q2 2020* Q2 2019 Q2 2020* Q2 2019 Q2 2020* EFT Processing $ 231.9 $ 81.8 $ 75.2 $ (36.0) $ 93.0 $ (15.3) % Change -65% -148% -116% epay 184.2 194.3 17.6 18.8 19.4 20.5 % Change 5% 7% 6% Money Transfer 276.8 266.6 35.3
Slide 15: Closing Remarks
CLOSING REMARKS 15
Slide 16: Supplemental Data
SUPPLEMENTAL DATA 16
Slide 17: Non-GAAP financial measures explanation
In addition to the results presented in accordance with U.S. GAAP, the Company presents non-GAAP financial measures, such as constant currency, adjusted operating income, adjusted EBITDA and adjusted earnings per share. These measures should be used in addition to, and not a substitute for, revenues
Slide 18: Reconciliation Net Loss to Adjusted EBITDA, Q2 2020
EURONET WORLDWIDE, INC. Reconciliation Net Loss to Operating (Loss) Income, Adjusted Operating (Loss) Income and Adjusted EBITDA (unaudited - in millions) Three months ended June 30, 2020 EFT Money Corporate Processing epay Transfer Services Consolidated Net loss $ (115.7) Add: Income tax expense 8.
Slide 19: Reconciliation Net Income to Adjusted EBITDA, Q2 2019
EURONET WORLDWIDE, INC. Reconciliation of Net Income to Operating Income (Expense), Adjusted Opearting Income (Expense) and Adjusted EBITDA (unaudited - in millions) Three months ended June 30, 2019 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 68.1 Add: Income tax
Slide 20: Reconciliation to Constant Currency Amounts by Segment
EURONET WORLDWIDE, INC. Reconciliation of Revenue, Adjusted Operating (Loss) Income and Adjusted EBITDA to Constant Currency Amounts by Segment (unaudited - in millions) Three months ended ended June 30, 2020 EFT Money Corporate Processing epay Transfer Services Consolidated Revenue $ 78.5 $ 187.6 $
Slide 21: Reconciliation of Adjusted Earnings per Share
EURONET WORLDWIDE, INC. Reconciliation of Adjusted Earnings per Share (unaudited - in millions, except share and per share data) Three Months Ended June 30, 2020 2019 Net (loss) income attributable to Euronet Worldwide, Inc. $ (115.8) $ 68.2 Foreign currency exchange (gain) loss (2.5) 0.1 Intangible