Slide 1: Second Quarter 2024 Earnings Conference Call
Second Quarter 2024 Earnings Conference Call July 31, 2024
Slide 2: Forward-looking Statements and Use of Non-GAAP Measures
Forward-looking Statements Certain statements in this earnings release constitute “forward-looking statements” within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor pro
Slide 3: Business Summary
Business Summary Mac Schuessler, President and CEO
Slide 4: 2024 Financial Highlights
2024 Financial Highlights Total Revenue $212.0 million, 27% increase Adjusted EBITDA $86.1 million, 16% increase Strong Results Adjusted EBITDA margin of 40.6% Adjusted EPS $0.83, 17% increase Delivered operating cash flow of approximately $131 million Cash Flow and Returned $6 million t
Slide 5: Puerto Rico Update
Puerto Rico Update Strong revenue growth across all segments Segments Merchant Acquiring and Payments Puerto Rico positively impacted by sales volume growth, Update improved spread and transaction growth in ATH Business and POS. Business Solutions revenue impacted by one-time project related i
Slide 6: Latin America Update
Latin America Update Segment Revenue grew 91%, driven by the Sinqia acquisition Update Organic growth from the legacy business remains in line with historical growth trends Softness around the software market in Brazil impacting technology players Sinqia Update Progress continues to be made
Slide 7: Financial Summary
Financial Summary Joaquin Castrillo, Chief Financial Officer
Slide 8: Consolidated Results Q2 2024
Consolidated Results Q2 2024 Q2 2024 Y-o-Y % (in USD mm, except per share) Revenue $212.0 27% Adjusted EBITDA(1) $86.1 16% Adj. EBITDA margin 40.6% -400bps Adjusted Net Income(1) $53.8 15% Adjusted EPS(1) $0.83 17% The increase in revenue reflects strong growth in our LATAM segment that benefited
Slide 9: Merchant Acquiring 2024
Merchant Acquiring 2024 Q2 2024 Y-o-Y % (in USD mm, except per share) Revenue $45.3 10% Adjusted EBITDA(1) $18.2 17% Adj. EBITDA margin 40.3% 230bps Increase in revenue reflects mid single digit sales volume growth, driven by new merchants, higher volumes from government institutions and improveme
Slide 10: Payment Services, PR and Caribbean 2024
Payment Services, PR and Caribbean 2024 Q2 2024 Y-o-Y % (in USD mm, except per share) Revenue $54.2 7% Adjusted EBITDA(1) $31.4 7% Adj. EBITDA margin 57.9% 40bps Revenue growth was driven by the continued strength in ATH Movil Business, growth in POS transactions and increase in transaction-proces
Slide 11: Latin America Payments and Solutions 2024
Latin America Payments and Solutions 2024 Q2 2024 Y-o-Y % (in USD mm, except per share) Revenue $74.7 91% Adjusted EBITDA(1) $17.5 24% Adj. EBITDA margin 23.4% -1250 bps Increase in revenue mainly reflects the addition of Sinqia and continued growth in our legacy LATAM businesses. Margin decreas
Slide 12: Business Solutions 2024
Business Solutions 2024 Q2 2024 Y-o-Y % (in USD mm, except per share) Revenue $62.3 9% Adjusted EBITDA(1) $29.8 27% Adj. EBITDA margin 47.8% 670bps Revenue increase was primarily driven by a project related one-time impact in the quarter. Margin increase was primarily due to the one-time revenue
Slide 13: Corporate and Other 2024
Corporate and Other 2024 Q2 2024 Y-o-Y % (in USD mm, except per share) Adjusted EBITDA(1) -$10.8 -39% % of Total Revenue 5.1% -40bps Corporate and Other Adjusted EBITDA as a percentage of total revenues of 5.1%. *See Non-GAAP reconciliation summary in appendix, p.21-22. 13
Slide 14: Roll Forward of 2024 Cash Balance
Roll Forward of 2024 Cash Balance ($ in millions) Operating Activities Proceeds from $131.3 investments Beginning $6.2 Balance1 Ending ($56.3) Balance2 $343.7 ($9.3) $328.9 CAPEX Debt (Net) ($76.5 ) & Other3 ($10.2) Repurchases & Fx Impact Dividends Mainly driven by $70M ASR 12/31/2023 6/30/2024 (1)
Slide 15: Debt Summary
Debt Summary June 30, (in USD mm, except per share) 2024 2023 Unrestricted Cash $257.7 $191.6 Total Debt $993.0 $404.6 Term A Loan (2027 Maturity) S+200bps 441.5 406.6 Term B Loan (2030 Maturity) S+325bps 540.0 - Revolver ($200M) - - Deferred Consideration from Buss. Combination 11.5 - EVTC Net Debt
Slide 16: Outlook 2024
Outlook 2024 (in USD mm, except per share) Low High Total Revenue $846 $854 Growth, % 22% 23% GAAP EPS – Diluted $1.59 $1.70 Adjusted EPS $2.98 $3.07 Growth, % 5.7% 8.9% Capital Expenditures $85 $85 Assumptions: Adjusted EBITDA Margin 38.8% 39.3% Tax Rate 5% 5% Share Count to compute Adjusted EPS 65
Slide 17: Q&A
Q&A
Slide 18: Appendix
Appendix
Slide 19: 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 20: 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) 2024 2023 Net income $32,523 $28,050 Income tax expense 1,101 6,586 Interest expense, net 15,491 3,537 Depreciation and amortization 32,950 22,329 EBITDA 82,065 60,502 (1
Slide 21: Reconciliation of Q2 2024 Segment Non-GAAP Results
Reconciliation of Q2 2024 Segment Non-GAAP Results Three months ended June 30, 2024 Payment Services - Latin America Puerto Rico & Payments and Merchant Business Corporate and (In thousands) Caribbean Solutions Acquiring, net Solutions Other (1) Total Revenues $ 54,199 $ 74,669 $ 45,319 $ 62,336 $ (
Slide 22: Reconciliation of Q2 2023 Segment Non-GAAP Results
Reconciliation of Q2 2023 Segment Non-GAAP Results Three months ended June 30, 2023 Payment Services - Latin America Puerto Rico & Payments and Merchant Business Corporate and (In thousands) Caribbean Solutions Acquiring, net Solutions Other (1) Total Revenues $ 50,795 $ 39,076 $ 41,248 $ 56,971 $ (
Slide 23: Outlook Summary and Reconciliation to Non-GAAP Adjusted EPS
Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share 2023 2024 Outlook Actual (Dollar amounts in millions, except share data) Low High Revenues $846 to $854 $695 Earnings per Share (EPS) (GAAP) $1.59 to $1.70 $1.21 Per share adjustment to reconcile GAAP EPS to Non-GAAP Adjusted
Slide 24: Thanks