Slide 1: First Quarter 2020 Earnings Conference Call
First Quarter 2020 Earnings Conference Call May 8, 2020 1
Slide 2: Disclosures
Disclosures 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, uncer
Slide 3: Business Summary
Business Summary Mac Schuessler, President and CEO 3
Slide 4: COVID-19 Response
COVID-19 Response • Implemented rapid deployment of remote work environment - over 90% of regional workforce • Established safety protocols for on-site workers such as Workforce Support temperature checks, protective gear (masks, gloves), more frequent deep cleaning • Increased communication, traini
Slide 5: Q1 2020 Financial Highlights
Q1 2020 Financial Highlights ü Total Revenue $122 million - increased 3% Results impacted ü Adjusted EBITDA* $56 million - decreased 2% by COVID-19 ü Adjusted EPS* $0.46 - decreased 8% ü Delivered operating cash flow of $34 million Strong cash flow ü Returned $7 million to shareholder in Q1 and liqu
Slide 6: Business Update
Business Update • New service for Exito, largest Supermarket chain in Colombia • Enhanced card not present function for large retailer US retailer in Central America LatinLatAm America • Delivered benefit card program for Dominican Republic government • Another milestone on Santander Chile, Amex acc
Slide 7: Financial Summary
Financial Summary Joaquin Castrillo, Chief Financial Officer 7
Slide 8: Consolidated Results Q1 2020
Consolidated Results Q1 2020 (#039;s in millions, except per share) Q1 2020 Y-O-Y % Revenue $ 121.9 3% Adjusted EBITDA $ 56.3 -2% Adjusted EBITDA margin 46.2% -230 bps Adjusted Net Income $ 33.5 -10% Adjusted EPS $ 0.46 -8% • Q1 revenue growth reflects overall growth through February offset by declines
Slide 9: Merchant Acquiring
Merchant Acquiring (#039;s in millions) Q1 2020 Y-O-Y % Revenue $ 25.1 -3% Adjusted EBITDA $ 11.3 -6% Adjusted EBITDA margin 44.9% -120 bps • Q1 revenue decrease reflects lower transactional revenue as a result of COVID-19 as well as lower spread driven by change in volume mix as a result of social dis
Slide 10: Payment Services, PR and Caribbean
Payment Services, PR and Caribbean (#039;s in millions) Q1 2020 Y-O-Y % Revenue $ 29.9 -7% Adjusted EBITDA $ 16.1 -24% Adjusted EBITDA margin 53.8% -1260 bps • Q1 revenue reflects impact of $2.7M one-time revenue last year, additionally lower POS and ATM transactions year over year of 2% and 7% respect
Slide 11: Payment Services, Latin America
Payment Services, Latin America (#039;s in millions) Q1 2020 Y-O-Y % Revenue $ 21.6 4% Adjusted EBITDA $ 8.2 —% Adjusted EBITDA margin 38.1% -150 bps • Q1 revenue growth reflects increased revenue related to PlacetoPay and organic transactional growth, partially offset by FX impact in part as a result
Slide 12: Business Solutions
Business Solutions (#039;s in millions) Q1 2020 Y-O-Y % Revenue $ 55.9 9% Adjusted EBITDA $ 27.4 19% Adjusted EBITDA margin 49.1% 420 bps • Q1 revenue growth favorably impacted by projects implemented in Q1 as well as impact from new managed services offered to Popular that began towards the end of pri
Slide 13: Corporate and Other
Corporate and Other (#039;s in millions) Q1 2020 Y-O-Y % Adjusted EBITDA $ (6.8) (3)% % of Total Revenue (5.5)% 30 bps • Q1 corporate expenses decreased slightly from prior year due to intercompany segment expenses. *See Non-GAAP reconciliation summary in appendix, p.20-21. 13
Slide 14: Roll Forward of 2020 Cash Balance
Roll Forward of 2020 Cash Balance ($’s in Millions) Operating Activities Beginning Ending Balance(1) Balance(2) Capex FX impact Debt (Repayment) / Issuance, Net(3) Dividends and Share Repurchases 12/31/2019 3/31/2020 (1) Includes $20 million in restricted cash (2) Includes $22 million in restricted
Slide 15: Debt Summary
Debt Summary (#039;s in millions) 03/31/20 12/31/19 Unrestricted Cash $ 103.5 $ 111.0 Total Debt $ 511.9 $ 533.4 Term A Loan (2023 Maturity) L+200bps $ 198.3 $ 209.0 Term B Loan (2024 Maturity) L+350bps $ 311.9 $ 321.8 Revolver (2023 Maturity, $125M) L+200bps $ — $ — Other $ 1.7 $ 2.6 Net Debt $ 408.3
Slide 16: Illustrative Q2 20 at Current Trends
Illustrative Q2 20 at Current Trends Resilient model delivers positive cashflow April (#039;s in millions, except per share) Trend Q2 20E vs. Q2 19 Merchant Acquiring, net -33% $ 18 $ (9) Payment Processing - PR & Caribbean -16% $ 25 $ (5) Payment Processing - LatAm -8% $ 19 $ (2) Business Solutions 2%
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) 2020 2019 Net income $ 22,275 $ 26,734 Income tax expense 4,518 3,809 Interest expense, net 6,416 7,292 Depreciation and amortization 17,795 16,273 EBITDA 51,004 54,108
Slide 20: Reconciliation of Q1 2020 Segment Non-GAAP Results
Reconciliation of Q1 2020 Segment Non-GAAP Results Three months ended March 31, 2020 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 29,887 $ 21,640 $ 25,121 $ 55,943 $ (10,
Slide 21: Reconciliation of Q1 2019 Segment Non-GAAP Results
Reconciliation of Q1 2019 Segment Non-GAAP Results Three months ended March 31, 2019 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 32,017 $ 20,831 $ 25,974 $ 51,364 $ (11,