Slide 1: First Quarter 2021 Earnings Conference Call
First Quarter 2021 Earnings Conference Call April 29, 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: Q1 2021 Financial Highlights
Q1 2021 Financial Highlights Total Revenue $140 million - increased 14% Strong Results Adjusted EBITDA* $69 million - increased 22% Adjusted EPS* $0.62 - increased 35% Delivered significant operating cash flow of $35 million High Operating Cash Returned $18 million to shareholders through
Slide 5: Puerto Rico Update
Puerto Rico Update Continued growth of digital payments Expanding and FirstBank expansion and extension through 2030 evolving New printing contract Exiting Ticketpop Vaccine distribution progressing Improved business Positive impact anticipated from Federal stimulus climate Release of
Slide 6: Latin America Update
Latin America Update Pandemic impact and COVID restrictions varies by country progress is mixed Vaccine distribution and progress varies by country New Contracts Double digit growth driven in large part by new contracts pushing growth Continued expansion of e-commerce gateway 6
Slide 7: Financial Summary
Financial Summary Joaquin Castrillo, Chief Financial Officer 7
Slide 8: Consolidated Results Q1 2021
Consolidated Results Q1 2021 (#039;s in millions, except per share) Q1 2021 Y-O-Y % Revenue $139.5 14% Adjusted EBITDA $68.9 22% Adjusted EBITDA margin 49.4% 320 bps Adjusted Net Income $45.0 34% Adjusted EPS $0.62 35% Q1 revenue reflects growth in transactional revenue in PR and new contracts in Lat
Slide 9: Merchant Acquiring
Merchant Acquiring (#039;s in millions) Q1 2021 Y-O-Y % Revenue $30.9 23% Adjusted EBITDA $15.5 38% Adjusted EBITDA margin 50.3% 540 bps Q1 revenue growth driven by higher sales volume, higher average ticket and increased spread as prior year was impacted by the COVID lockdown. Q1 margin reflects t
Slide 10: Payment Services, P.R. and Caribbean
Payment Services, P.R. and Caribbean (#039;s in millions) Q1 2021 Y-O-Y % Revenue $36.3 21% Adjusted EBITDA $20.8 29% Adjusted EBITDA margin 57.4% 360 bps Q1 revenue growth primarily reflects higher ATH Móvil and ATH Móvil Business revenue partially offset by lower ATM revenue over prior year. Q1 m
Slide 11: Payment Services, Latin America
Payment Services, Latin America (#039;s in millions) Q1 2021 Y-O-Y % Revenue $25.0 16% Adjusted EBITDA $10.0 22% Adjusted EBITDA margin 40.1% 200 bps Q1 revenue growth driven by new contracts such as Santander, Citibanamex, Mercado Libre and other organic growth. Q1 margin reflects benefit from con
Slide 12: Business Solutions
Business Solutions (#039;s in millions) Q1 2021 Y-O-Y % Revenue $60.6 8% Adjusted EBITDA $29.6 8% Adjusted EBITDA margin 48.9% -20 bps Q1 revenue growth driven by increase in digital channel usage, new services for Popular and the Department of Education as well as one-time revenue for hardware and s
Slide 13: Corporate and Other
Corporate and Other (#039;s in millions) Q1 2021 Y-O-Y % Adjusted EBITDA ($7.1) 5% % of Total Revenue (5.1%) -50 bps Q1 Corporate and Other Adjusted EBITDA increased slightly from prior year but had a favorable variance over prior year as a percent of total revenue. *See Non-GAAP reconciliation summa
Slide 14: Roll Forward of Q1-2021 Cash Balance
Roll Forward of Q1-2021 Cash Balance ($’s in millions) Operating Activities $35 Beginning Balance1 $(17) $221 Capex $(15) ($3) Repurchases & FB Portfolio AFS Debt Dividends Securities $(18) Ending FX Impact Balance2 $(31) $3 $175 Debt (Net) & Other 3 12/31/2020 03/31/2021 (1) Includes $18 million in
Slide 15: Debt Summary
Debt Summary (#039;s in millions) 3/31/2021 12/31/2020 Unrestricted Cash $156.4 $202.6 Total Debt $479.5 $501.1 Term A Loan (2023 Maturity) L+175bps $179.9 $190.0 Term B Loan (2024 Maturity) L+350bps $298.3 $309.5 Revolver; $125M (2023 Maturity) L+175bps — — Other $1.3 $1.6 Net Debt $323.1 $298.4 Weigh
Slide 16: Full Year 2021 Outlook
Full Year 2021 Outlook (#039;s in millions, except per share) Low High Total Revenue $543 $552 Growth % 6% 8% Adjusted EPS $2.25 $2.32 Growth % 9% 12% GAAP EPS - Diluted $1.70 $1.77 Capital Expenditures $50 $55 Assumptions Adjusted EBITDA Margin 47% 47.5% Tax rate 13% 14% Share Count for EPS 73 73 16
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 March 31, (Dollar amounts in thousands, except share data) 2021 2020 Net income $ 35,604 $ 22,275 Income tax expense 4,708 4,518 Interest expense, net 5,517 6,416 Depreciation and amortization 18,623 17,795 EBITDA 64,452 51,004
Slide 20: Reconciliation of Q1 2021 Segment Non-GAAP Results
Reconciliation of Q1 2021 Segment Non-GAAP Results Three months ended March 31, 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 $ 36,264 $ 25,014 $ 30,867 $ 60,611 $ (1
Slide 21: Reconciliation of Q1 2020 Segment Non-GAAP Results
Reconciliation of Q1 2020 Segment Non-GAAP Results Three months ended March 31, 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 $ 29,887 $ 21,640 $ 25,121 $ 55,943 $ (1
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 share data) Low High Revenues $ 543 to $ 552 $ 511 Earnings per Share (EPS) (GAAP) $ 1.70 to $ 1.77 $ 1.43 Per share adjustment to reconcile GAAP EPS to Non-GAAP Ad