Delaware
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001-31648
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74-2806888
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(State or other jurisdiction of incorporation or organization)
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(Commission file number)
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(I.R.S. Employer Identification No.)
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11400 Tomahawk Creek Parkway, Suite 300
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Leawood,
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Kansas
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66211
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(Address of principal executive offices)
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(Zip Code)
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock
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EEFT
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Nasdaq Global Select Market
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1.375% Senior Notes due 2026
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EEFT26
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Nasdaq Global Select Market
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
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☐
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||
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
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Exhibit
Number
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Description
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99.1
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Euronet Worldwide, Inc.
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By:
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/s/ Rick L. Weller
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Rick L. Weller
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Chief Financial Officer
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Date: May 2, 2023
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•
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Revenues of $787.2 million, a 10% increase from $718.5 million (14% increase on a constant currency1 basis).
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•
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Operating income of $45.6 million, a 24% increase from $36.7 million (34% increase on a constant currency basis).
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•
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Adjusted EBITDA2 of $92.8 million, a 17% increase from $79.5 million (23% increase on a constant currency basis).
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•
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Net income attributable to Euronet of $20.1 million, or $0.39 diluted earnings per share, compared with $8.2 million, or $0.17 diluted earnings per share.
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•
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Adjusted earnings per share3 of $0.87, a 26% increase from $0.69.
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•
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Euronet's cash and cash equivalents were $1,065.8 million and ATM cash was $627.2 million, totaling $1,693.0 million as of March 31, 2023, and availability under its revolving credit facilities was approximately $715 million.
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Segment and Other Results
The EFT Processing Segment reports the following results for the first quarter 2023 compared with the same period or date in 2022:
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•
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Revenues of $192.2 million, a 32% increase from $145.6 million (40% increase on a constant currency basis).
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•
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Operating income of $6.9 million, a 210% increase from an operating loss of ($6.3) million (224% increase on a constant currency basis).
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•
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Adjusted EBITDA of $29.6 million, an 85% increase from $16.0 million (98% increase on a constant currency basis).
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•
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Transactions of 1,838 million, a 38% increase from 1,328 million.
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•
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Total of 51,510 installed ATMs as of March 31, 2023, a 4% increase from 49,521. Operated 47,430 active ATMs as of March 31, 2023, a 7% increase from 44,353 as of March 31, 2022.
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•
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Revenues of $237.4 million, a 1% increase from $235.8 million (5% increase on a constant currency basis).
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•
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Operating income of $27.5 million, a 5% increase from $26.2 million (11% increase on a constant currency basis).
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•
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Adjusted EBITDA of $29.1 million, a 4% increase from $27.9 million (10% increase on a constant currency basis).
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•
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Transactions of 973 million, a 13% increase from 864 million.
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•
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Point-of-sale ("POS") terminals of approximately 799,000 as of March 31, 2023, a 5% increase from approximately 760,000.
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•
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Retailer locations of approximately 344,000 as of March 31, 2023, a 3% increase from approximately 335,000.
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•
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Revenues of $359.4 million, a 6% increase from $339.0 million (9% increase on a constant currency basis).
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•
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Operating income of $32.6 million, a 2% decrease from $33.3 million (2% increase on a constant currency basis).
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•
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Adjusted EBITDA of $41.1 million, a 3% decrease from $42.2 million (1% increase on a constant currency basis).
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•
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Total transactions of 37.6 million, a 12% increase from 33.5 million.
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•
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Network locations of approximately 528,000 as of March 31, 2023, a 7% increase from approximately 495,000.
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First quarter constant currency revenue, operating income and adjusted EBITDA growth was the result of 13% growth in U.S.-outbound transactions, 16% growth in international-originated money transfers - which included 14% growth in transfers initiated largely in Europe and 18% growth in transfers initiated in the Middle East and Asia - and 28% growth in xe transactions, partially offset by a 17% decline in the U.S. domestic business. These transaction growth rates include 38% growth in direct-to-consumer digital transactions. Transaction growth outpaced revenue growth largely due to mix shifts, principally in the segment's xe business which benefited from a strong growth in transactions, but at a lower amount sent per transaction.
Corporate and Other reports $21.4 million of expense for the first quarter 2023 compared with $16.5 million for the first quarter 2022. The increase in corporate expense for the first quarter 2023 is largely due to higher long- and short-term compensation expense due to improved Company performance.
(2) Adjusted EBITDA is defined as net income excluding, to the extent incurred in the period, interest expense, income tax expense, depreciation, amortization, share-based compensation and other non-operating or non-recurring items that are considered expenses or income under U.S. GAAP. Adjusted EBITDA represents a performance measure and is not intended to represent a liquidity measure.
(3) Adjusted earnings per share is defined as diluted U.S. GAAP earnings per share excluding, to the extent incurred in the period, the tax-effected impacts of: a) foreign currency exchange gains or losses, b) share-based compensation, c) acquired intangible asset amortization, d) non-cash income tax expense, e) other non-operating or non-recurring items and f) dilutive shares relate to the Company's convertible bonds. Adjusted earnings per share represents a performance measure and is not intended to represent a liquidity measure.
EURONET WORLDWIDE, INC.
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|||||
Condensed Consolidated Balance Sheets
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|||||
(in millions)
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|||||
As of
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|||||
March 31,
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As of
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||||
2023
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December 31,
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||||
(unaudited)
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2022
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||||
ASSETS
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|||||
Current assets:
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|||||
Cash and cash equivalents
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$
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1,065.8
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$
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1,131.2
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ATM cash
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627.2
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515.6
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|||
Restricted cash
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12.7
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7.4
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|||
Settlement assets
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1,085.5
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1,442.7
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|||
Trade accounts receivable, net
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204.6
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270.8
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|||
Prepaid expenses and other current assets
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345.7
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359.0
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|||
Total current assets
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3,341.5
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3,726.7
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|||
Property and equipment, net
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332.6
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336.6
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|||
Right of use lease asset, net
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142.8
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149.7
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|||
Goodwill and acquired intangible assets, net
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1,017.2
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1016.6
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|||
Other assets, net
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176.5
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174.0
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|||
Total assets
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$
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5,010.6
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$
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5,403.6
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LIABILITIES AND EQUITY
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|||||
Current liabilities:
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|||||
Settlement obligations
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$
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1,085.5
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$
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1,442.7
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Accounts payable and other current liabilities
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768.4
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858.1
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|||
Current portion of operating lease liabilities
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48.7
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50.2
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|||
Short-term debt obligations
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2.7
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3.1
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|||
Total current liabilities
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1,905.3
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2,354.1
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|||
Debt obligations, net of current portion
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1,642.7
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1,609.1
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|||
Operating lease liabilities, net of current portion
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97.0
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102.6
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|||
Capital lease obligations, net of current portion
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1.0
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1.3
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|||
Deferred income taxes
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30.8
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28.4
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|||
Other long-term liabilities
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61.7
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63.7
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|||
Total liabilities
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3,738.5
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4,159.2
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Equity
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1,272.1
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1,244.4
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|||
Total liabilities and equity
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$
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5,010.6
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$
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5,403.6
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EURONET WORLDWIDE, INC.
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|||||||
Consolidated Statements of Operations
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|||||||
(unaudited - in millions, except share and per share data)
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|||||||
Three Months Ended
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|||||||
March 31,
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|||||||
2023
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2022
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||||||
Revenues
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$
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787.2
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$
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718.5
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Operating expenses:
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|||||||
Direct operating costs
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491.6
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458.2
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Salaries and benefits
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141.9
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126.8
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Selling, general and administrative
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75.2
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63.8
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Depreciation and amortization
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32.9
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33.0
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Total operating expenses
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741.6
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681.8
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Operating income
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45.6
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36.7
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Other income:
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|||||||
Interest income
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2.6
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0.1
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Interest expense
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(10.1
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) |
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(6.1
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) | ||
Foreign currency exchange loss
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(1.1
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) |
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(5.5
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) | ||
Total other expense, net
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(8.6
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) |
(11.3
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) | |||
Income before income taxes
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37.0
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25.4
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Income tax expense
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(17.2
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) |
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(17.2
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) | ||
Net income
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19.8
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8.2
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|||||
Net loss attributable to noncontrolling interests
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0.3
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—
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Net income attributable to Euronet Worldwide, Inc.
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$
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20.1
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$
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8.2
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|||
Add: Interest expense from assumed conversion of convertible notes, net of tax
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0.8 |
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0.9
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Net income for diluted earnings per share calculation
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$
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20.9
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$
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9.1
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|||
Earnings per share attributable to Euronet
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|||||||
Worldwide, Inc. stockholders - diluted
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$
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0.39
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$
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0.17
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|||
Diluted weighted average shares outstanding
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52,974,800
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54,497,863
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EURONET WORLDWIDE, INC.
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|||||||||||||||||||
Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA
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|||||||||||||||||||
(unaudited - in millions)
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|||||||||||||||||||
Three months ended March 31, 2023
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|||||||||||||||||||
EFT Processing
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epay
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Money Transfer
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Corporate Services
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Consolidated
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|||||||||||||||
Net income
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$
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19.8
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Add: Income tax expense
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17.2
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Add: Total other expense, net
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8.6
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Operating income (expense)
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$
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6.9
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$
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27.5
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$
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32.6
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$
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(21.4
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) |
$
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45.6
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|||||
Add: Depreciation and amortization
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22.7
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1.6
|
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8.5
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0.1
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32.9
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|||||||||
Add: Share-based compensation
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—
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—
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—
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14.3
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14.3
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|||||||||
Earnings before interest, taxes, depreciation, amortization, and share-based compensation (Adjusted EBITDA) (1)
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$
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29.6
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$
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29.1
|
|
$
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41.1
|
|
$
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(7.0
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) |
$
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92.8
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|
|||||
Three months ended March 31, 2022
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|||||||||||||||||||
EFT Processing
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epay
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Money Transfer
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Corporate Services
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Consolidated
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|||||||||||||||
Net income
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$
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8.2
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|||||||||||||||||
Add: Income tax expense
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17.2
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|||||||||||||||||
Add: Total other expense, net
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11.3
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|||||||||||||||||
Operating (loss) income
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$
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(6.3
|
) |
$
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26.2
|
|
$
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33.3
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$
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(16.5
|
) |
$
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36.7
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||||||
Add: Depreciation and amortization
|
22.3
|
|
1.7
|
|
8.9
|
|
0.1
|
|
33.0
|
|
|||||||||
Add: Share-based compensation
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—
|
|
—
|
|
—
|
|
9.8
|
|
9.8
|
|
|||||||||
Earnings before interest, taxes, depreciation, amortization and share-based compensation (Adjusted EBITDA) (1)
|
$
|
16.0
|
$
|
27.9
|
|
$
|
42.2
|
|
$
|
(6.6
|
) |
$
|
79.5
|
|
EURONET WORLDWIDE, INC.
|
|||||||
Reconciliation of Adjusted Earnings per Share
|
|||||||
(unaudited - in millions, except share and per share data)
|
|||||||
Three Months Ended
|
|||||||
March 31,
|
|||||||
2023
|
2022
|
||||||
Net income attributable to Euronet Worldwide, Inc.
|
$
|
20.1
|
$
|
8.2
|
|||
Foreign currency exchange loss
|
1.1
|
5.5
|
|||||
Intangible asset amortization(1)
|
6.9
|
|
5.6
|
|
|||
Share-based compensation(2)
|
14.3
|
|
9.8
|
|
|||
Income tax effect of above adjustments(3)
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(1.0
|
) |
4.7
|
||||
Non-cash GAAP tax expense(4)
|
2.4
|
|
1.8
|
|
|||
Adjusted earnings(5)
|
$
|
43.8
|
|
$
|
35.6
|
|
|
Adjusted earnings per share - diluted(5)
|
$
|
0.87
|
|
$
|
0.69
|
|
|
Diluted weighted average shares outstanding (GAAP)
|
|
52,974,800
|
|
54,497,863
|
|
||
Effect of adjusted EPS dilution of convertible notes |
|
(2,781,818 | ) | (2,781,818 | ) | ||
Effect of unrecognized share-based compensation on diluted shares outstanding
|
227,575
|
|
260,378
|
|
|||
Adjusted diluted weighted average shares outstanding
|
|
50,420,557
|
|
51,976,423
|
|
||
|
|
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