Euronet Worldwide, Inc. (“Euronet” or the “Company”) (NASDAQ:
EEFT), a leading global financial technology solutions and payments
provider, reports fourth quarter and full
year 2023 financial results.
Euronet reports the following
consolidated results for the fourth quarter 2023 compared with the
same period of 2022:
- Revenues of $957.7 million, an 11% increase from $865.7 million
(7% increase on a constant currency1 basis).
- Operating income of $97.4 million, a 23% increase from $79.1
million (22% increase on a constant currency basis).
- Adjusted operating income2 of $99.9 million, a 26% increase
from $79.1 million (25% increase on a constant currency
basis).
- Adjusted EBITDA3 of $147.6 million, a 16% increase from $127.0
million (14% increase on a constant currency basis).
- Net income attributable to Euronet of $69.3 million, or $1.43
diluted earnings per share, compared with $67.7 million, or $1.31
diluted earnings per share.
- Adjusted earnings per share4 of $1.88, a 35% increase from
$1.39.
- Euronet's cash and cash equivalents were $1,254.2 million and
ATM cash was $525.2 million, totaling $1,779.4 million as of
December 31, 2023, and availability under its revolving credit
facilities was approximately $661.2 million.
Euronet reports the following consolidated results
for the full year 2023 compared with the same period
of 2022:
- Revenues of $3,688.0 million, a 10% increase from $3,358.8
million (9% increase on a constant currency basis).
- Operating income of $432.6 million, a 12% increase from $385.4
million (12% increase on a constant currency basis).
- Adjusted operating income of $432.1 million, a 12% increase
from $385.4 million (11% increase on a constant currency
basis).
- Adjusted EBITDA of $618.7 million, a 9% increase from $565.3
million (9% increase on a constant currency basis).
- Net income attributable to Euronet of $279.7 million, or $5.50
diluted earnings per share, compared with $231.0 million, or $4.41
diluted earnings per share.
- Adjusted earnings per share of $7.46, a 15% increase from
$6.51.
See the reconciliation of non-GAAP items in the
attached financial schedules.
"I am pleased we exceeded our guidance, driven
by strong performance in all three segments, together with benefits
from improved foreign exchange rates against the US dollar and a
lower tax rate. We delivered record fourth quarter adjusted
EPS of $1.88, a 35% year-over-year increase as well as double-digit
growth in operating income and adjusted EBITDA," stated Michael J.
Brown, Euronet's Chairman and Chief Executive Officer. "EFT
delivered strong growth across all metrics driven by continued
recovery of international transactions due to easing inflation,
wage growth, and an extended travel season in Europe. Money
Transfer produced strong fourth-quarter results across all metrics
with growth in both retail and digital transactions and effective
cost management. In epay, our core business delivered strong
results from continued media and mobile growth, partially
offset by less promotional activity compared to last year's fourth
quarter."
"As I reflect on the full year 2023, I am proud
of the contributions of each of our segments and the continued
diversification of our product offerings. We saw the metrics in our
EFT business recover its correlation with the air travel data from
Eurocontrol at the end of the third quarter, which continued
through the fourth quarter and resulted in delivering 53%
growth in adjusted operating income compared to the fourth quarter
of 2022. Our Money Transfer business continued to gain market share
and reduce costs, improving operating income by 27%. Finally, our
epay business grew its core business double digits in adjusted
EBITDA and operating income. These noteworthy developments increase
our optimism for 2024 and beyond."
Fourth quarter and full year adjusted operating
income, adjusted EBITDA, and adjusted EPS include a non-cash
purchase accounting expense adjustment of $2.5 million. Full year
adjusted operating income, adjusted EBITDA, and adjusted EPS also
include a $3.0 million non-cash gain incurred in the second quarter
2023.
Taking into consideration recent trends in the
business and the global economy, the Company anticipates its
2024 adjusted EPS will grow 10% to 15% year-over-year,
consistent with its 10 and 20 year compounded annualized growth
rates. This outlook does not include any changes that may
develop in foreign exchange rates, interest rates or other
unforeseen factors.
Segment and Other Results
The EFT Processing Segment
reports the following results for the fourth quarter 2023 compared
with the same period or date in 2022:
- Revenues of $237.9 million, a 13% increase from $210.1 million
(9% increase on a constant currency basis).
- Operating income of $25.5 million, a 34% increase from $19.1
million (40% increase on a constant currency basis).
- Adjusted operating income of $28.0 million, a 47% increase from
$19.1 million (53% increase on a constant currency basis).
- Adjusted EBITDA of $52.2 million, a 20% increase from $43.4
million (21% increase on a constant currency basis).
- Transactions of 2,369 million, a 30% increase from 1,825
million.
- Total of 52,652 installed ATMs as of December 31, 2023, a 4%
increase from 50,738 at December 31, 2022. Operated 47,303 active
ATMs as of December 31, 2023, a 5% increase from 45,009 as of
December 31, 2022.
The EFT Processing
Segment reports the following results for
the full year 2023 compared with the same period
in 2022:
- Revenues of $1,058.3 million, a 15% increase from $924.2
million (14% increase on a constant currency basis).
- Operating income of $206.3 million, a 12% increase from $184.0
million (13% increase on a constant currency basis).
- Adjusted operating income of $205.8 million, a 12% increase
from $184.0 million (11% increase on a constant currency
basis).
- Adjusted EBITDA of $300.4 million, an 8% increase from $279.4
million (6% increase on a constant currency basis).
- Transactions of 8,473 million, a 31% increase from 6,459
million.
Revenue, operating income and adjusted EBITDA
growth for both the fourth quarter and full year 2023 was
driven by continued growth in transactions in nearly all markets,
together with growth in the merchant acquiring business with
adjusted EBITDA doubling in the last two years.
The EFT Segment's total
installed ATMs at December 31, 2023 grew
4% over the December 31, 2022 ATMs due to the net
addition of 58 Euronet-owned ATMs, 837 new outsourcing
ATMs and the addition of 1,019 low-margin ATMs in
India. In the latter part of 2023, with the travel sector
approaching near full recovery since the onset of COVID, the EFT
segment undertook an assessment of its ATM estate and commenced a
plan to deinstall underperforming ATMs.
The deinstallaton of these ATMs contributed to
improved profits and margins in the fourth quarter and are expected
to further benefit profits and margins going forward. The
difference between installed and active ATMs relates
to ATMs that have been seasonally deactivated.
The epay Segment reports
the following results for the fourth
quarter 2023 compared with the same period or date
in 2022:
- Revenues of $316.7 million, an 11% increase from $285.5 million
(7% increase on a constant currency basis).
- Operating income of $43.6 million, a 6% increase from $41.1
million (3% increase on a constant currency basis).
- Adjusted EBITDA of $45.4 million, a 7% increase from $42.6
million (3% increase on a constant currency basis).
- Transactions of 906 million, a 4% decrease from 941
million.
- POS terminals of approximately 821,000 as of December 31, 2023,
a 1% increase from approximately 816,000.
- Retailer locations of approximately 352,000 as of December 31,
2023, a 2% decrease from approximately 358,000.
The epay Segment reports the
following results for the full year 2023 compared
with the same period in 2022:
- Revenues of $1,082.4 million, an 8% increase from $997.9
million (7% increase on a constant currency basis).
- Operating income of $126.2 million, a 5% increase from $120.7
million (5% increase on a constant currency basis).
- Adjusted EBITDA of $133.1 million, a 5% increase from $126.9
million (5% increase on a constant currency basis).
- Transactions of 3,789 million, a 1% decrease from 3,836
million.
Fourth quarter and full year 2023
constant currency revenue, operating income and adjusted
EBITDA growth was driven by continued expansion of digital media
and mobile sales. This growth was offset by fewer promotional sales
recognized in this year's fourth quarter and full year
compared to the fourth quarter and full year 2022.
The decline in epay transactions was the
result of a decrease in transactions in India where certain mobile
wallets established direct connections with mobile operators,
partially offset by continued growth in digital branded payments in
Europe. The India transactions are low-value, and as such, have a
more substantial impact on transaction count, but a relatively
insignificant impact on gross profit.
The Money Transfer Segment
reports the following results for the fourth quarter 2023 compared
with the same period or date in 2022:
- Revenues of $405.1 million, a 9% increase from $372.1 million
(7% increase a constant currency basis).
- Operating income of $51.9 million, a 30% increase from $39.9
million (27% increase on a constant currency basis).
- Adjusted EBITDA of $59.3 million, a 23% increase from $48.1
million (20% increase on a constant currency basis).
- Total transactions of 42.4 million, an 8% increase from 39.4
million.
- Network locations of approximately 580,000 as of December 31,
2023, an 11% increase from approximately 522,000.
The Money Transfer
Segment reports the following
results for the full year 2023 compared with the
same period in 2022:
- Revenues of $1,555.2 million, an 8% increase from $1,444.5
million (7% increase on a constant currency basis).
- Operating income of $185.4 million, a 20% increase from $154.5
million (19% increase on a constant currency basis).
- Adjusted EBITDA of $216.4 million, a 15% increase from $188.4
million (14% increase on a constant currency basis).
- Total transactions of 161.7 million, a 9% increase from 147.9
million.
Fourth quarter constant currency revenue,
operating income and adjusted EBITDA growth was the result of
8% growth in U.S.-outbound transactions, 10% growth in
international-originated money transfers - which included
7% growth from Americas outside the US, 8% growth in
transfers initiated largely in Europe, and 20% growth in
transfers initiated in the Middle East and Asia, and
17% growth in xe transactions, partially offset by
a 13% decline in the intra-U.S. business. These
transaction growth rates include 20% growth in
direct-to-consumer digital transactions.
Full year 2023 constant currency revenue,
operating income, and adjusted EBITDA growth was the result of
10% growth in U.S.-outbound transactions, 12% growth in
international-originated money transfers - which included
10% growth from Americas outside the US, 12% growth
in transfers initiated largely in Europe, and 14% growth
in transfers initiated in the Middle East and Asia, and
23% growth in xe transactions, partially offset by a
15% decline in the intra-U.S. business. These transaction
growth rates include 26% growth in direct-to-consumer digital
transactions.
For the the fourth quarter and full-year,
revenue growth was less than transaction growth due to a decrease
in the average amount sent as a result of inflationary pressures
together with marketing efforts in certain geographies, which
resulted in slightly less revenue per transaction but contributed
to improved profit margins.
For the fourth quarter and full year adjusted
EBITDA and operating income growth exceeded the revenue growth rate
due to the leverage of revenue growth together with effective cost
management.
Corporate and Other reports
$23.6 million of expense for the fourth
quarter 2023 compared with $21.0 million for
the fourth quarter 2022. For the full year 2023,
Corporate and Other reports $85.3 million of expense compared
with $73.8 million for the full year 2022. The increase
in corporate expenses for both the fourth quarter and full year
2023 is largely the result of long- and short-term compensation
expenses based on Company performance.
Balance Sheet and Financial
PositionUnrestricted cash and cash equivalents on hand was
$1,254.2 million as of December 31, 2023, compared
to $1,074.4 million as of September 30, 2023. The increase in
unrestricted cash and cash equivalents is mainly due to cash
generated from operations of $98 million, the return of $75
million in cash from our ATMs following the peak travel
season and working capital fluctuations, partially offset
by $54 million in share repurchases and the issuance of a $60
million convertible note receivable.
Total indebtedness was
$1,869.6 million as of December 31, 2023, compared
to $1,717.3 million as of September 30, 2023. The increase in debt
was largely due to borrowing on the revolving credit facility to
fund payments across several currencies across year-end. These
borrowings were largely repaid immediately following year-end.
Availability under the Company's revolving credit facilities was
approximately $661.2 million as of December 31, 2023.
Non-GAAP MeasuresIn addition to
the results presented in accordance with U.S. GAAP, the Company
presents non-GAAP financial measures, such as constant currency
financial measures, adjusted operating income, adjusted EBITDA, and
adjusted earnings per share. These measures should be used in
addition to, and not a substitute for, revenues, net income and
earnings per share computed in accordance with U.S. GAAP. We
believe that these non-GAAP measures provide useful information to
investors regarding the Company's performance and overall results
of operations. These non-GAAP measures are also an integral part of
the Company's internal reporting and performance assessment for
executives and senior management. The non-GAAP measures used by the
Company may not be comparable to similarly titled non-GAAP measures
used by other companies. The attached schedules provide a full
reconciliation of these non-GAAP financial measures to their most
directly comparable U.S. GAAP financial measure.
The Company does not provide a reconciliation of
its forward-looking non-GAAP measures to GAAP due to the inherent
difficulty in forecasting and quantifying certain amounts that are
necessary for GAAP and the related GAAP and non-GAAP
reconciliation, including adjustments that would be necessary for
foreign currency exchange rate fluctuations and other charges
reflected in the Company's reconciliation of historic numbers,
the amount of which, based on historical experience, could be
significant.
(1) Constant currency financial 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 foreign currency exchange rates on the
Company's results when compared to the prior period.
(2) Adjusted operating income is defined as
operating income excluding non-cash gains and non-cash
purchase accounting expense adjustments. Adjusted operating income
represents a performance measure and is not intended to represent a
liquidity measure.
(3) 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, non-cash gains, non-cash purchase
accounting expense adjustments 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.
(4)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) non-cash gains and non-cash
purchase accounting expense adjustments f) other non-operating
or non-recurring items and g) 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.
Conference Call and Slide
PresentationEuronet Worldwide will host an analyst
conference call on February 7, 2023, at 9:00 a.m. Eastern Time
to discuss these results. The call may also include discussion of
Company developments on the Company's operations, forward-looking
information, and other material information about business and
financial matters. To listen to the call via telephone please
register at Euronet Worldwide Fourth Quarter 2023 Earnings Call.
The conference call will also be available via webcast at
http://ir.euronetworldwide.com. Participants should register at
least five minutes prior to the scheduled start time of the event.
A slideshow will be included in the webcast.
A webcast replay will be available beginning
approximately one hour after the event at
http://ir.euronetworldwide.com and will remain available for one
year.
About Euronet Worldwide,
Inc.Starting in Central Europe in 1994 and growing to a
global real-time digital and cash payments network with millions of
touchpoints today, Euronet now moves money in all the ways
consumers and businesses depend upon. This includes money
transfers, credit/debit card processing, ATMs, POS services,
branded payments, foreign currency exchange and more. With products
and services in more than 200 countries and territories provided
through its own brand and branded business segments,
Euronet and its financial technologies and networks make
participation in the global economy easier, faster and more secure
for everyone.
A leading global financial technology solutions
and payments provider, Euronet has developed an extensive global
payments network that includes 52,652 installed ATMs, approximately
656,000 EFT POS terminals and a growing portfolio of outsourced
debit and credit card services which are under management in 66
countries; card software solutions; a prepaid processing network of
approximately 821,000 POS terminals at approximately 352,000
retailer locations in 62 countries; and a global money transfer
network of approximately 580,000 locations serving 198 countries
and territories. Euronet serves clients from its corporate
headquarters in Leawood, Kansas, USA, and 67 worldwide offices. For
more information, please visit the Company's website at
www.euronetworldwide.com.
Statements contained in this news release 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 number of
factors, including: conditions in world financial markets and
general economic conditions, including impacts from the
COVID-19 or other pandemics; inflation; military conflicts in
the Ukraine and the Middle East, and the related economic
sanctions; our ability to successfully integrate any acquired
operations; economic conditions in specific countries and regions;
technological developments affecting the market for our products
and services; our ability to successfully introduce new products
and services; foreign currency exchange rate fluctuations; the
effects of any breach of our computer systems or those of our
customers or vendors, including our financial processing networks
or those of other third parties; interruptions in any of our
systems or those of our vendors or other third parties;
our ability to renew existing contracts at profitable rates;
changes in fees payable for transactions performed for cards
bearing international logos or over switching networks such as card
transactions on ATMs; our ability to comply with increasingly
stringent regulatory requirements, including anti-money laundering,
anti-terrorism, anti-bribery, consumer and data protection and
privacy; changes in laws and regulations affecting our business,
including tax and immigration laws and any laws regulating
payments, including dynamic currency conversion transactions;
changes in our relationships with, or in fees charged by, our
business partners; competition; the outcome of claims and other
loss contingencies affecting Euronet; the cost of borrowing
(including fluctuations in interest rates), availability of credit
and terms of and compliance with debt covenants; and renewal of
sources of funding as they expire and the availability of
replacement funding. These risks and other risks are described in
the Company's filings with the Securities and Exchange Commission,
including our Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K. Copies of these filings may
be obtained via the SEC's Edgar website or by contacting the
Company. Any forward-looking statements made in this release speak
only as of the date of this release. Except as may be required
by law, Euronet does not intend to update these
forward-looking statements and undertakes no duty to any person to
provide any such update under any circumstances. The Company
regularly posts important information to the investor relations
section of its website.
EURONET WORLDWIDE, INC. |
Condensed Consolidated Balance Sheets |
(in millions) |
|
As of |
|
|
|
December 31, |
|
As of |
|
2023 |
|
December 31, |
|
(unaudited) |
|
2022 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
1,254.2 |
|
$ |
1,131.2 |
ATM cash |
525.2 |
|
515.6 |
Restricted cash |
15.2 |
|
7.4 |
Settlement assets |
1,681.5 |
|
1,442.7 |
Trade accounts receivable, net |
370.6 |
|
270.8 |
Prepaid expenses and other current assets |
316.0 |
|
359.0 |
Total current assets |
4,162.7 |
|
3,726.7 |
|
|
|
|
Property and equipment, net |
332.1 |
|
336.6 |
Right of use lease asset, net |
142.6 |
|
149.7 |
Goodwill and acquired intangible assets, net |
1,015.1 |
|
1,016.6 |
Other assets, net |
241.9 |
|
174.0 |
Total assets |
$ |
5,894.4 |
|
$ |
5,403.6 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Settlement obligations |
$ |
1,681.5 |
|
$ |
1,442.7 |
Accounts payable and other current liabilities |
816.9 |
|
858.1 |
Current portion of operating lease liabilities |
50.3 |
|
50.2 |
Short-term debt obligations |
151.9 |
|
3.1 |
Total current liabilities |
2,700.6 |
|
2,354.1 |
|
|
|
|
Debt obligations, net of current portion |
1,715.4 |
|
1,609.1 |
Operating lease liabilities, net of current portion |
95.8 |
|
102.6 |
Capital lease obligations, net of current portion |
2.3 |
|
1.3 |
Deferred income taxes |
47.0 |
|
28.4 |
Other long-term liabilities |
83.6 |
|
63.7 |
Total liabilities |
4,644.7 |
|
4,159.2 |
Equity |
1,249.7 |
|
1,244.4 |
Total liabilities and equity |
$ |
5,894.4 |
|
$ |
5,403.6 |
EURONET WORLDWIDE, INC. |
Consolidated Statements of Operations |
(unaudited - in millions, except share and per share
data) |
|
|
Year Ended |
|
|
Three Months Ended |
|
|
December 31, |
|
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
3,688.0 |
|
|
$ |
3,358.8 |
|
|
$ |
957.7 |
|
|
$ |
865.7 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Direct operating costs |
|
2,222.8 |
|
|
|
2,018.2 |
|
|
596.4 |
|
|
533.3 |
|
Salaries and benefits |
|
602.9 |
|
|
|
534.2 |
|
|
158.0 |
|
|
141.7 |
|
Selling, general and administrative |
|
296.8 |
|
|
|
285.1 |
|
|
72.4 |
|
|
77.5 |
|
Depreciation and amortization |
|
132.9 |
|
|
|
135.9 |
|
|
33.5 |
|
|
34.1 |
|
Total operating expenses |
|
3,255.4 |
|
|
|
2,973.4 |
|
|
860.3 |
|
|
786.6 |
|
Operating income |
|
432.6 |
|
|
|
385.4 |
|
|
97.4 |
|
|
79.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
15.2 |
|
|
|
2.0 |
|
|
5.1 |
|
|
1.1 |
|
Interest expense |
|
(55.6 |
) |
|
|
(37.5 |
) |
|
(16.5 |
) |
|
(10.9 |
) |
Foreign currency exchange gain (loss) |
|
8.0 |
|
|
|
(28.2 |
) |
|
11.6 |
|
|
7.8 |
|
Other income |
|
0.2 |
|
|
|
0.9 |
|
|
0.3 |
|
|
0.7 |
|
Total other (expense) income, net |
|
(32.2 |
) |
|
|
(62.8 |
) |
|
0.5 |
|
|
(1.3 |
) |
Income before income taxes |
|
400.4 |
|
|
|
322.6 |
|
|
97.9 |
|
|
77.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
(120.9 |
) |
|
|
(91.9 |
) |
|
(28.4 |
) |
|
(10.0 |
) |
Net income |
|
279.5 |
|
|
|
230.7 |
|
|
69.5 |
|
|
67.8 |
|
Net loss (income) attributable to noncontrolling interests |
|
0.2 |
|
|
|
0.3 |
|
|
(0.2 |
) |
|
(0.1 |
) |
Net income attributable to Euronet Worldwide, Inc. |
$ |
279.7 |
|
|
$ |
231.0 |
|
|
$ |
69.3 |
|
|
$ |
67.7 |
|
Add: Interest expense from assumed conversion of convertible notes,
net of tax |
|
4.2 |
|
|
|
4.7 |
|
|
|
1.0 |
|
|
|
1.4 |
|
Net income for diluted earnings per share calculation |
$ |
283.9 |
|
|
$ |
235.7 |
|
|
$ |
70.3 |
|
|
$ |
69.1 |
|
Earnings per share
attributable to Euronet |
|
|
|
|
|
|
|
|
|
|
|
Worldwide, Inc. stockholders - diluted |
$ |
5.50 |
|
|
$ |
4.41 |
|
|
$ |
1.43 |
|
|
$ |
1.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding |
|
51,599,633 |
|
|
|
53,463,308 |
|
|
49,066,284 |
|
|
52,771,936 |
|
EURONET WORLDWIDE, INC. |
Reconciliation of Net Income to Operating Income (Expense),
Adjusted Operating Income (Expense) and Adjusted
EBITDA |
(unaudited - in millions) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
EFT Processing |
|
epay |
|
Money Transfer |
|
Corporate Services |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
$ |
69.5 |
|
|
|
|
|
|
|
|
|
|
|
Add: Income tax expense |
|
|
|
|
|
|
|
|
28.4 |
|
Add: Total other income,
net |
|
|
|
|
|
|
|
|
(0.5 |
) |
|
|
|
|
|
|
|
|
|
|
Operating income (expense) |
$ |
25.5 |
|
|
$ |
43.6 |
|
|
$ |
51.9 |
|
|
$ |
(23.6 |
) |
|
$ |
97.4 |
|
Add: non-cash purchase
accounting expense adjustment |
|
2.5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.5 |
|
Adjusted operating income
(expense) (1) |
|
28.0 |
|
|
|
43.6 |
|
|
|
51.9 |
|
|
|
(23.6 |
) |
|
|
99.9 |
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation and
amortization |
24.2 |
|
|
1.8 |
|
|
7.4 |
|
|
0.1 |
|
|
33.5 |
|
Add: Share-based
compensation |
— |
|
|
— |
|
|
— |
|
|
14.2 |
|
|
14.2 |
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest,
taxes, depreciation, amortization, non-cash purchase accounting
adjustment, share-based compensation (Adjusted EBITDA) (1) |
$ |
52.2 |
|
|
$ |
45.4 |
|
|
$ |
59.3 |
|
|
$ |
(9.3 |
) |
|
$ |
147.6 |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
EFT Processing |
|
epay |
|
Money Transfer |
|
Corporate Services |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
$ |
67.8 |
|
|
|
|
|
|
|
|
|
|
|
Add: Income tax expense |
|
|
|
|
|
|
|
|
10.0 |
|
Add: Total other expense,
net |
|
|
|
|
|
|
|
|
1.3 |
|
|
|
|
|
|
|
|
|
|
|
Operating income
(expense) |
$ |
19.1 |
|
|
$ |
41.1 |
|
|
$ |
39.9 |
|
|
$ |
(21.0 |
) |
|
$ |
79.1 |
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation and
amortization |
24.3 |
|
|
1.5 |
|
|
8.2 |
|
|
0.1 |
|
|
34.1 |
|
Add: Share-based
compensation |
— |
|
|
— |
|
|
— |
|
|
13.8 |
|
|
13.8 |
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest,
taxes, depreciation, amortization, and share-based compensation
(Adjusted EBITDA) (1) |
$ |
43.4 |
|
|
$ |
42.6 |
|
|
$ |
48.1 |
|
|
$ |
(7.1 |
) |
|
$ |
127.0 |
|
(1) Adjusted operating income (expense) and
Adjusted EBITDA are non-GAAP measures that should be considered in
addition to, and not a substitute for, net income computed in
accordance with U.S. GAAP.
EURONET WORLDWIDE, INC. |
Reconciliation of Net Income to Operating Income (Expense),
Adjusted Operating Income (Expense) and Adjusted
EBITDA |
(unaudited - in millions) |
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31,
2023 |
|
|
|
|
|
|
|
|
|
|
|
EFT Processing |
|
epay |
|
Money Transfer |
|
Corporate Services |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
$ |
279.5 |
|
|
|
|
|
|
|
|
|
|
|
Add: Income tax expense |
|
|
|
|
|
|
|
|
120.9 |
|
Add: Total other expense,
net |
|
|
|
|
|
|
|
|
32.2 |
|
|
|
|
|
|
|
|
|
|
|
Operating income (expense) |
$ |
206.3 |
|
|
$ |
126.2 |
|
|
$ |
185.4 |
|
|
$ |
(85.3 |
) |
|
$ |
432.6 |
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash purchase
accounting expense adjustment |
2.5 |
|
|
— |
|
|
— |
|
|
— |
|
|
2.5 |
|
Less: Non-cash gain |
(3.0 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(3.0 |
) |
Adjusted operating income
(expense) (1) |
205.8 |
|
|
126.2 |
|
|
185.4 |
|
|
(85.3 |
) |
|
432.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation and
amortization |
94.6 |
|
|
6.9 |
|
|
31.0 |
|
|
0.4 |
|
|
132.9 |
|
Add: Share-based
compensation |
— |
|
|
— |
|
|
— |
|
|
53.7 |
|
|
53.7 |
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest,
taxes, depreciation, amortization, non-cash gain, non-cash purchase
accounting adjustment, share-based compensation (Adjusted
EBITDA) (1) |
$ |
300.4 |
|
|
$ |
133.1 |
|
|
$ |
216.4 |
|
|
$ |
(31.2 |
) |
|
$ |
618.7 |
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31,
2022 |
|
|
|
|
|
|
|
|
|
|
|
EFT Processing |
|
epay |
|
Money Transfer |
|
Corporate Services |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
$ |
230.7 |
|
|
|
|
|
|
|
|
|
|
|
Add: Income tax expense |
|
|
|
|
|
|
|
|
91.9 |
|
Add: Total other expense,
net |
|
|
|
|
|
|
|
|
62.8 |
|
|
|
|
|
|
|
|
|
|
|
Operating income
(expense) |
$ |
184.0 |
|
|
$ |
120.7 |
|
|
$ |
154.5 |
|
|
$ |
(73.8 |
) |
|
$ |
385.4 |
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation and
amortization |
95.4 |
|
|
6.2 |
|
|
33.9 |
|
|
0.4 |
|
|
135.9 |
|
Add: Share-based
compensation |
— |
|
|
— |
|
|
— |
|
|
44.0 |
|
|
44.0 |
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest,
taxes, depreciation, amortization and share-based compensation
(Adjusted EBITDA) (1) |
$ |
279.4 |
|
|
$ |
126.9 |
|
|
$ |
188.4 |
|
|
$ |
(29.4 |
) |
|
$ |
565.3 |
|
(1) Adjusted operating income (expense)
and Adjusted EBITDA are non-GAAP measures that should be
considered in addition to, and not a substitute for, net income
computed in accordance with U.S. GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EURONET WORLDWIDE, INC. |
Reconciliation of Adjusted Earnings per Share |
(unaudited - in millions, except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
Three Months Ended |
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
Euronet Worldwide, Inc. |
$ |
279.7 |
|
|
$ |
231.0 |
|
|
$ |
69.3 |
|
|
$ |
67.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency exchange
(gain) loss |
|
(8.0 |
) |
|
|
28.2 |
|
|
|
(11.6 |
) |
|
|
(7.8 |
) |
Intangible asset amortization
(1) |
|
24.4 |
|
|
|
27.0 |
|
|
|
5.4 |
|
|
|
6.9 |
|
Share-based compensation
(2) |
|
53.7 |
|
|
|
44.0 |
|
|
|
14.2 |
|
|
|
13.8 |
|
Non-cash gain (3) |
|
(3.0 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-cash purchase accounting
expense adjustment (4) |
|
2.5 |
|
|
|
— |
|
|
|
2.5 |
|
|
|
— |
|
Income tax effect of above
adjustments (5) |
|
(3.0 |
) |
|
|
12.7 |
|
|
|
1.2 |
|
|
|
7.1 |
|
Non-cash GAAP tax
expense (benefit) (6) |
|
19.7 |
|
|
|
(11.3 |
) |
|
|
6.4 |
|
|
|
(17.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings (7) |
$ |
366.0 |
|
|
$ |
331.6 |
|
|
$ |
87.4 |
|
|
$ |
69.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share -
diluted(7) |
$ |
7.46 |
|
|
$ |
6.51 |
|
|
$ |
1.88 |
|
|
$ |
1.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average
shares outstanding (GAAP) |
|
51,599,633 |
|
|
|
53,463,308 |
|
|
|
49,066,284 |
|
|
|
52,771,936 |
|
Effect of adjusted EPS
dilution of convertible notes |
|
(2,781,818 |
) |
|
|
(2,781,818 |
) |
|
|
(2,781,818 |
) |
|
|
(2,781,818 |
) |
Effect of unrecognized
share-based compensation on diluted shares outstanding |
|
230,000 |
|
|
|
216,060 |
|
|
|
158,030 |
|
|
|
183,422 |
|
Adjusted diluted weighted
average shares outstanding |
|
49,047,815 |
|
|
|
50,897,550 |
|
|
|
46,442,496 |
|
|
|
50,173,540 |
|
(1) Intangible asset amortization of $5.4
million and $6.9 million are included in
depreciation and amortization expense of $33.5 and $ 34.1
million for both the three months ended December 31,
2023 and December 31, 2022, in the consolidated statements of
operations. Intangible asset amortization
of $24.4 million and $27.0 million are
included in depreciation and amortization expense of $132.9
million and $135.9 million for
the twelve months ended December 31, 2023 and
December 31, 2022, respectively, in the consolidated statements of
operations.
(2) Share-based compensation of $14.2 million
and $13.8 million are included in salaries and benefits expense of
$158.0 million and $141.7 million for the three months ended
December 31, 2023 and December 31, 2022, respectively, in the
consolidated statements of operations. Share-based
compensation of $53.7 million and $44.0
million are included in salaries and benefits expense of
$602.9 million and $534.2 million for
the twelve months ended December 31, 2023 and
December 31, 2022, respectively, in the consolidated statements of
operations.
(3) A non-cash gain of $3.0 million is
included in operating income for the twelve months ended December
31, 2023, in the consolidated statements of
operations.
(4) Non-cash purchase accounting expense
adjustment of $2.5 million is included in operating income for the
three months and the twelve months ended December 31, 2023 in the
consolidated statement of operations.
(5) Adjustment is the aggregate U.S. GAAP
income tax effect on the preceding adjustments determined by
applying the applicable statutory U.S. federal, state and/or
foreign income tax rates.
(6) Adjustment is the non-cash GAAP tax impact
recognized on certain items such as the utilization of certain
material net deferred tax assets and amortization of
indefinite-lived intangible assets.
(7) Adjusted earnings and adjusted earnings per
share are non-GAAP measures that should be considered in addition
to, and not as a substitute for, net income and earnings per share
computed in accordance with U.S. GAAP.
Contact:
Euronet Worldwide, Inc.
Genese Hill
+1-913-327-4200
Euronet Worldwide (NASDAQ:EEFT)
Historical Stock Chart
From Apr 2024 to May 2024
Euronet Worldwide (NASDAQ:EEFT)
Historical Stock Chart
From May 2023 to May 2024