Slide 1: Second Quarter 2020 Earnings Conference Call
Second Quarter 2020 Earnings Conference Call August 4, 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: Q2 2020 Financial Highlights
Q2 2020 Financial Highlights Improved results Total Revenue $118 million - decreased 4% throughout the Adjusted EBITDA* $50 million - decreased 13% quarter Adjusted EPS* $0.38 - decreased 25% Delivered YTD operating cash flow of $87 million Strong cash flow Returned $14 million YTD to shar
Slide 5: Puerto Rico Update
Puerto Rico Update • COVID-19 restrictions reduced throughout the quarter • Merchant revenue rebounded in June Business climate improved • Positive impact of Federal programs such as CARES and other funding from the government of Puerto Rico • Implemented new services for the Government Continued •
Slide 6: New QR Code Pilot
New QR Code Pilot Select ‘QR’ button Scan ATH Móvil QR code at participating Review payment and add tip Choose card to pay from Done! merchants (if available) 6
Slide 7: Latin America Update
Latin America Update • Increased COVID-19 cases and uneven response through the region Challenging Business Climate ⦁ Santiago, Chile re-imposes restrictions ⦁ Mexico is allowing re-opening ⦁ Brazil varies by region • Progress on Citibanamex collections platform and Santander Progress on Strategic G
Slide 8: Financial Summary
Financial Summary Joaquin Castrillo, Chief Financial Officer 8
Slide 9: Consolidated Results Q2 2020
Consolidated Results Q2 2020 Q2 2020 (#039;s in millions, except per share) Y-O-Y % YTD Y-O-Y % Revenue $ 117.9 -4% $ 239.9 -1% Adjusted EBITDA $ 50.2 -13% $ 106.5 -8% Adjusted EBITDA margin 42.6% -460 bps 44.4% -340 bps Adjusted Net Income $ 27.8 -25% $ 61.3 -17% Adjusted EPS $ 0.38 -25% $ 0.84 -17% •
Slide 10: Merchant Acquiring
Merchant Acquiring (#039;s in millions) Q2 2020 Y-O-Y % YTD Y-O-Y % Revenue $ 24.8 -8% $ 49.9 -5% Adjusted EBITDA $ 13.4 9% $ 24.7 2% Adjusted EBITDA margin 54.0% 830 bps 49.4% 360 bps • Q2 revenue decrease primarily reflects lower sales volume as a result of COVID-19, partially offset by an increased
Slide 11: Payment Services, PR and Caribbean
Payment Services, PR and Caribbean (#039;s in millions) Q2 2020 Y-O-Y % YTD Y-O-Y % Revenue $ 27.5 -10% $ 57.3 -8% Adjusted EBITDA $ 13.3 -35% $ 29.4 -29% Adjusted EBITDA margin 48.3% -1830 bps 51.2% -1540 bps • Q2 revenue reflects lower transactions as a result of COVID-19 measures partially offset by
Slide 12: Payment Services, Latin America
Payment Services, Latin America (#039;s in millions) Q2 2020 Y-O-Y % YTD Y-O-Y % Revenue $ 19.8 -6% $ 41.4 -1% Adjusted EBITDA $ 6.1 -22% $ 14.3 -11% Adjusted EBITDA margin 30.7% -610 bps 34.6% -370 bps • Q2 revenue decline reflects impact of COVID, negative FX of $1.2M, and $1M in anticipated attritio
Slide 13: Business Solutions
Business Solutions (#039;s in millions) Q2 2020 Y-O-Y % YTD Y-O-Y % Revenue $ 55.5 1% $ 111.4 5% Adjusted EBITDA $ 24.0 -1% $ 51.5 9% Adjusted EBITDA margin 43.3% -70 bps 46.2% 180 bps • Q2 revenue increase primarily due to new services for Popular and the Government of Puerto Rico partially offset by
Slide 14: Corporate and Other
Corporate and Other (#039;s in millions) Q2 2020 Y-O-Y % YTD Y-O-Y % Adjusted EBITDA $ (6.6) -4% $(13.3) -3% % of Total Revenue (5.6)% — bps (5.6)% 20 bps • Q2 Corporate and Other Adjusted EBITDA decreased from prior year due to expense management and lower incentive compensation accrual. *See Non-GAAP
Slide 15: Roll Forward of 2020 Cash Balance
Roll Forward of 2020 Cash Balance ($’s in Millions) Operating Activities Ending Balance(2) Beginning Capex Balance(1) Debt (Repayment) / Issuance, Net(3) Dividends and FX impact Share Repurchases 12/31/2019 6/30/2020 (1) Includes $20 million in restricted cash (2) Includes $22 million in restricted
Slide 16: Debt Summary
Debt Summary (#039;s in millions) 06/30/20 12/31/19 Unrestricted Cash $ 146.9 $ 111.0 Total Debt $ 523.3 $ 533.4 Term A Loan (2023 Maturity) L+200bps $ 195.5 $ 209.0 Term B Loan (2024 Maturity) L+350bps $ 311.1 $ 321.8 Revolver (2023 Maturity, $125M) L+200bps $ 15.0 $ — Other $ 1.6 $ 2.6 Net Debt $ 376
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 June 30, (Dollar amounts in thousands, except share data) 2020 2019 Net income $ 15,625 $ 27,137 Income tax expense 4,520 2,489 Interest expense, net 5,810 7,116 Depreciation and amortization 17,839 17,195 EBITDA 43,794 53,937 E
Slide 20: Reconciliation of Q2 2020 Segment Non-GAAP Results
Reconciliation of Q2 2020 Segment Non-GAAP Results Three months ended June 30, 2020 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 27,461 $ 19,797 $ 24,764 $ 55,495 $ (9,58
Slide 21: Reconciliation of Q2 2019 Segment Non-GAAP Results
Reconciliation of Q2 2019 Segment Non-GAAP Results Three months ended June 30, 2019 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 30,482 $ 21,106 $ 26,793 $ 55,183 $ (11,0