Euronet Worldwide, Inc. · NASDAQ:EEFT
Euronet Worldwide — Q1 2020 Earnings Presentation
23 slides from Euronet Worldwide's earnings presentation, Apr 29, 2020
Slide 1: First Quarter 2020 Financial Results
First 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: All segments began the year with strong growth trends
All segments began the year with strong growth trends COVID-19 required significant changes to operating plans for 2020: • All of our nearly 8,000 employees were transitioned to remote work arrangements • Ensured no service interruptions for our customers • Implemented cost reduction plan to save $1
Slide 6: Segment recovery expectations from COVID-19
epay will likely recover first as consumers will continue to purchase digital media content Money transfer recovery will lag due to high unemployment rates • Will recover as immigrants will continue to send money to their families • Well positioned to serve customers impacted by closures of smaller
Slide 7: Continued expansion to new geographies and high-value sites
Continued expansion to new geographies and identification of high-value sites Expansion of ATM outsourcing to new and existing markets Utilization of technology to provide more modern banking opportunities for customers and governments around the globe Continued expansion of digital media content in
Slide 8: REV Payments Cloud and REN Foundation
REV Payments Cloud • Targeted at Fintechs and Neo- and Digital banks • Provides access to Euronet's payments platforms (open loop issuing, 3D Secure for e/m-commerce transactions, access to local Real Time / QR Payment schemes, FX, etc.) and our physical assets (ATMs, money transfer network, digital
Slide 9: Financial Highlights First Quarter 2020
FINANCIAL HIGHLIGHTS FIRST QUARTER 2020
Slide 10: Balance sheet and liquidity summary
USD (in millions) 12/31/2019 3/31/2020 Unrestricted Cash $ 786.1 $ 709.5 ATM Cash 665.6 558.6 Settlement Assets 1013.1 773.3 Total Assets 4,657.7 4,184.4 Settlement Obligations 1,013.1 773.3 Total Debt 1,111.0 1,101.2 Total Debt to Trailing Twelve Month Adjusted EBITDA Multiple 1.8x 1.9x Net Debt to
Slide 11: Q1 2020 revenue, operating income, adjusted EBITDA and EPS
Revenue - $583.9 million • 1% increase from $577.5 million for Q1 2019 • 3% increase on a constant currency basis Operating income - $31.6 million • 44% decrease from $56.1million for Q1 2019 • 42% decrease on a constant currency basis Adjusted EBITDA - $68.7 million • 21% decrease from $87.2 millio
Slide 12: Transaction growth by segment
EFT transactions grew 13% epay transactions grew 32% Money Transfer transactions grew 3% 12
Slide 13: Segment results by USD
Operating Income Adjusted Revenue USD (in millions) (Expense) EBITDA Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 EFT Processing $ 145.7 $ 145.8 $ 16.8 $ 4.9 $ 33.4 $ 25.2 % Change 0% -71% -25% epay 176.1 172.9 18.0 16.5 19.8 18.3 % Change -2% -8% -8% Money Transfer 256.6 266.3 30.7 22.3 38.8 30.
Slide 14: Segment results in constant currency
Operating Income Adjusted Revenue USD (in millions) (Expense) EBITDA Q1 2019 Q1 2020* Q1 2019 Q1 2020* Q1 2019 Q1 2020* EFT Processing $ 145.7 $ 149.7 $ 16.8 $ 4.8 $ 33.4 $ 25.8 % Change 3% -71% -23% epay 176.1 178.2 18.0 16.9 19.8 18.8 % Change 1% -6% -5% Money Transfer 256.6 270.7 30.7 23.1 38.8 3
Slide 15: Closing Remarks
CLOSING REMARKS 15
Slide 16: 16
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Slide 17: Till then, stay safe
TILL THEN, STAY SAFE) TILL THEN, STAY SAFE | | mmerguensen ty he
Slide 18: Supplemental Data
SUPPLEMENTAL DATA 18
Slide 19: Non-GAAP financial measures notice
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 20: Reconciliation of Net Income to Adjusted EBITDA, Q1 2020
EURONET WORLDWIDE, INC. Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA (unaudited - in millions) Three months ended March 31, 2020 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 1.7 Add: Income tax expense 2.4 Add: Total other expense,
Slide 21: Reconciliation of Net Income to Adjusted EBITDA, Q1 2019
EURONET WORLDWIDE, INC. Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA (unaudited - in millions) Three months ended March 31, 2019 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 34.5 Add: Income tax expense 16.0 Add: Total other expens
Slide 22: Reconciliation to Constant Currency Amounts by Segment
EURONET WORLDWIDE, INC. Reconciliation of Revenue, Operating Income (Expense) and Adjusted EBITDA to Constant Currency Amounts by Segment (unaudited - in millions) Three months ended ended March 31, 2020 EFT Money Corporate Processing epay Transfer Services Consolidated Revenue $ 145.8 $ 172.9 $ 266
Slide 23: 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 March 31, 2020 2019 Net income attributable to Euronet Worldwide, Inc. $ 1.9 $ 34.5 Foreign currency exchange loss (gain) 18.8 (3.2) Intangible asset am