Slide 1: Third quarter 2023 Earnings Conference Call
Third quarter 2023 Earnings Conference Call October 26, 2023
Slide 2: Forward-looking Statements; Use of Non-GAAP Measures
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, uncertainties, an
Slide 3: Business Summary
Business Summary Mac Schuessler, President and CEO
Slide 4: Q3 2023 Financial Highlights
Q3 2023 Financial Highlights Total Revenue $173.2 million, increased 19% Adjusted EBITDA $78.7 million, increased 31% Strong Results Adjusted EBITDA margin of 45.4% Adjusted EPS $0.80, increased 51% Delivered operating cash flow of $163 million Cash Flow and Returned $33 million to share
Slide 5: Business Update – Puerto Rico
Business Update – Puerto Rico Merchant acquiring growth driven by strong sales volume and increase in overall spread Growth across Payments PR growth driven by strong POS transaction volumes and continued growth in ATH all segments Movil Business Solutions grew after lapping impact of Popular
Slide 6: Business Update – Latin America
Business Update – Latin America Revenue up a 37% YoY in the quarter; 35% on constant currency LATAM payments Strong performance from GetNet Chile growth Revenue contribution from the paySmart acquisition and organic growth Received Sinqia shareholder approval for the transaction Sinqia Updat
Slide 7: Financial Summary
Financial Summary Joaquin Castrillo, Chief Financial Officer
Slide 8: Consolidated Results Q3 2023
Consolidated Results Q3 2023 (in USD mm, except per share) Q3 2023 Y-o-Y % Revenue $173.2 19% Adjusted EBITDA(1) $78.7 31% Adjusted EBITDA margin 45.4% 410bps Adjusted Net Income(1) $52.4 47% Adjusted EPS(1) $0.80 51% All business segments performed above expectations, driven by strong sales and t
Slide 9: Merchant Acquiring Q3 2023
Merchant Acquiring Q3 2023 (in USD mm, except per share) Q3 2023 Y-o-Y % Revenue $40.6 10% Adjusted EBITDA(1) $15.3 10% Adjusted EBITDA margin 37.7% 10 bps Increase in revenue driven by combination of increased sales volume, increased spread and the continued benefit of pricing initiatives. Adju
Slide 10: Payment Services, PR and Caribbean Q3 2023
Payment Services, PR and Caribbean Q3 2023 (in USD mm, except per share) Q3 2023 Y-o-Y % Revenue $51.6 16% Adjusted EBITDA(1) $30.4 21% Adjusted EBITDA margin 58.8% 260bps Revenue increase was driven by strong transaction growth, continued performance from ATH Movil and benefit from increases in t
Slide 11: Payment Services Latin America Q3 2023
Payment Services Latin America Q3 2023 (in USD mm, except per share) Q3 2023 Y-o-Y % Revenue $46.2 37% Adjusted EBITDA(1) $17.5 60% Adjusted EBITDA margin 37.9% 550bps Increase in revenue driven by the catch-up adjustment of approximately $6.3 million for GetNet Chile, contribution from paySmart a
Slide 12: Business Solutions Q3 2023
Business Solutions Q3 2023 (in USD mm, except per share) Q3 2023 Y-o-Y % Revenue $56.5 15% Adjusted EBITDA(1) $21.1 30% Adjusted EBITDA margin 37.4% 440bps Revenue increase driven by the impact in the prior year of the $6.3 million one-time credit to Popular. Excluding this impact, revenue growth
Slide 13: Corporate and Other Q3 2023
Corporate and Other Q3 2023 (in USD mm, except per share) Q3 2023 Y-o-Y % Adjusted EBITDA(1) -$5.6 6% % of Total Revenue 3.2% -90bps Corporate and Other Adjusted EBITDA as a percentage of total revenues of 3.2%, benefiting from higher revenue. (1) Adjusted EBITDA, Adjusted Net Income and Adjusted
Slide 14: Roll Forward of 2023 Cash Balance
Roll Forward of 2023 Cash Balance ($ in millions) Operating Activities $163.5 Beginning ($50.6) Ending ($22.9) Fx Impact Balance2 Balance1 $215.7 CAPEX ($31.9) 10.7 $215.5 Paysmart ($35.5) Acquisition Equity ($33.3) Investments Debt (Net) Repurchases & & Other3 Dividends 12/31/2022 9/30/2023 (1) Inc
Slide 15: Debt Summary Q3 2023
Debt Summary Q3 2023 September 30, (in USD mm, except per share) 2023 2022 Unrestricted Cash $177.8 $225.0 Total Debt $415.5 $457.6 Term A Loan (2023 Maturity) L+175bps - 163.4 Term B Loan (2024 Maturity) L+350bps - 294.2 Term A Loan (2027 Maturity) S+150bps 399.4 - Revolver (2027 Maturity, $200M) S
Slide 16: Outlook 2023
Outlook 2023 FY2023 Outlook Estimation range (in USD mm, except per share) Low High Total Revenue $663 $667 Growth, % 7.2% 7.9% GAAP EPS – Diluted $1.69 $1.75 Adjusted EPS $2.81 $2.86 Growth, % 11.1% 13% Capital Expenditures $70 Assumptions: Adjusted EBITDA Margin 43% 43.5% Tax Rate 16% 16% Share Co
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 September 30, (Dollar amounts in thousands, except share data) 2023 2022 Net income $9,956 $137,739 Income tax (benefit) expense (4,858) 9,048 Interest expense, net 3,783 5,956 Depreciation and amortization 21,919 19,712 EBITDA
Slide 21: Reconciliation of Q3 2023 Segment Non-GAAP Results
Reconciliation of Q3 2023 Segment Non-GAAP Results Three months ended September 30, 2023 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 51,600 $ 46,155 $ 40,557 $ 56,522 $
Slide 22: Reconciliation of Q3 2022 Segment Non-GAAP Results
Reconciliation of Q3 2022 Segment Non-GAAP Results Three months ended September 30, 2022 (as recast) Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 44,592 $ 33,741 $ 36,911
Slide 23: Outlook Summary and Reconciliation to Non-GAAP Adjusted EPS
Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share 2022 2023 Outlook (As recast) (Dollar amounts in millions, except share data) Low High Revenues $663 to $667 $618 Earnings per Share (EPS) (GAAP) $1.69 to $1.75 $3.45 Per share adjustment to reconcile GAAP EPS to Non-GAAP Adj