Euronet Worldwide, Inc. · NASDAQ:EEFT
Euronet Worldwide — Q3 2020 Earnings Presentation
23 slides from Euronet Worldwide's earnings presentation, Aug 28, 2020
Slide 1: Third Quarter 2020 Financial Results
Third 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 SCOTT CLAASSEN, GENERAL COUNSEL
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
Slide 5: Business Trends
Business Trends: • All three segments delivered stronger than expected revenue and adjusted EBITDA growth • EFT benefited from better than expected resiliency in travel upon the lifting of movement restrictions • epay continued to realize strong sales of prepaid self-use content both in digital tran
Slide 6: Segment graphs
Graph 1 Graph 2 Graph 3 Graph 4 6
Slide 7: ATM Rollforward
Expanded Distribution: • Launched new service “ATM for the Community” in several European countries • Launched managed services agreement with IDFC First Bank, a leading private sector bank in India • Launched digital banking services for ING Bank Philippines Product Diversity: • Signed an ATM netwo
Slide 8: epay Launched and Signed
Launched: • Numerous digital media products through the Amazon Pay mobile wallet • Mobile top-up distribution for 7-Eleven in Australia • Mobile distribution on Itau Bank’s mobile app, Brazil’s largest private sector bank • Microsoft and McAfee bundles in UAE and Saudi Arabia, the first bundles in t
Slide 9: Money Transfer Network Growth
Network Growth: • Our network reaches: • 159 countries • 447,000 total network locations, a 15% increase vs. 3Q 2019 Correspondent Expansion: • Launched 16 new correspondents in 14 countries • Post Offices: Launched 1,300 branches for send and payout services at Post of Serbia and 250 branches for p
Slide 10: REV Payments Cloud and REN Foundation
REV Payments Cloud • Launched multiple new products through Amazon Pay mobile wallet • Signed issuer processing and payment services agreement for GoPay in Indonesia, Philippines, Thailand and Vietnam REN Foundation • REN Ecosystem Payments Solution switch for Banco de Moçambique (national payments
Slide 11: Financial Highlights Third Quarter 2020
FINANCIAL HIGHLIGHTS THIRD QUARTER 2020
Slide 12: Cash, Assets and Debt Summary
USD (in millions) 6/30/2020 9/30/2020 Unrestricted Cash $ 864.9 $ 1,008.2 ATM Cash 410.5 409.7 Settlement Assets 892.7 875.8 Total Assets 3,961.5 4,095.4 Settlement Obligations 892.7 875.8 Total Debt 1,116.5 1,147.4 Total Debt to Trailing Twelve Month Adjusted EBITDA Multiple 2.4x 3.3x Net Debt to T
Slide 13: Revenue and Adjusted EBITDA
Revenue - $664.4 million • 16% decrease from $787.0 million for Q3 2019 • 17% decrease on a constant currency basis Operating income - $66.1 million • 66% decrease from $194.0 million for Q3 2019 • 67% decrease on a constant currency basis Adjusted operating income - $67.6 million • 65% decrease fro
Slide 14: Transaction growth by segment
EFT transactions increased 14% epay transactions grew 66% Money Transfer transactions increased 5% 14
Slide 15: Segment results by revenue, operating income, EBITDA
Adjusted Operating Adjusted Revenue USD (in millions) Income EBITDA Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 EFT Processing $ 316.2 $ 144.1 $ 150.9 $ 6.2 $ 168.9 $ 27.7 % Change -54% -96% -84% epay 191.1 198.9 20.1 22.2 21.7 24.3 % Change 4% 10% 12% Money Transfer 280.8 323.1 35.6 49.1 43.7 5
Slide 16: Segment results, constant currency
Adjusted Operating Adjusted Revenue USD (in millions) Income EBITDA Q3 2019 Q3 2020* Q3 2019 Q3 2020* Q3 2019 Q3 2020* EFT Processing $ 316.2 $ 140.8 $ 150.9 $ 5.9 $ 168.9 $ 26.9 % Change -55% -96% -84% epay 191.1 196.2 20.1 21.9 21.7 24.0 % Change 3% 9% 11% Money Transfer 280.8 317.4 35.6 48.1 43.7
Slide 17: Closing Remarks
CLOSING REMARKS
Slide 18: Supplemental Data
SUPPLEMENTAL DATA
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 Net Income to Operating Income, Q3 2020
EURONET WORLDWIDE, INC. Reconciliation Net Income to Operating Income (Expense), Adjusted Operating Income (Expense) and Adjusted EBITDA (unaudited - in millions) Three months ended September 30, 2020 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 40.3 Add: Income ta
Slide 21: Reconciliation of Net Income to Operating Income, Q3 2019
EURONET WORLDWIDE, INC. Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA (unaudited - in millions) Three months ended September 30, 2019 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 137.5 Add: Income tax expense 37.0 Add: Total other e
Slide 22: Reconciliation to Constant Currency Amounts
EURONET WORLDWIDE, INC. Reconciliation of Revenue, Adjusted Operating Income (Expense) and Adjusted EBITDA to Constant Currency Amounts by Segment (unaudited - in millions) Three months ended ended September 30, 2020 EFT Money Corporate Processing epay Transfer Services Consolidated Revenue $ 144.1
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 September 30, 2020 2019 Net income attributable to Euronet Worldwide, Inc. $ 40.2 $ 137.6 Foreign currency exchange loss 1.4 11.0 Intangible asset amort