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(State or other jurisdiction of incorporation or organization) |
(Commission file number) |
(I.R.S. Employer Identification No.) |
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(Address of principal executive offices) |
(Zip Code) |
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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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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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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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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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. ☐ |
Exhibit
Number |
Description |
99.1 |
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|
|
Euronet Worldwide, Inc. | |
|
By: |
/s/ Rick L. Weller |
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Rick L. Weller | |
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Chief Financial Officer | |
Date: April 23, 2025 |
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![]() |
•
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Revenues of $915.5 million, a 7% increase from $857.0 million (9% increase on a constant currency1 basis).
|
•
|
Operating income of $75.2 million, an 18% increase from $64.0 million (22% increase on a constant currency basis).
|
•
|
Adjusted operating income2 of $75.2 million, an 18% increase from $63.6 million ( 23% increase on a constant currency basis).
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•
|
Adjusted EBITDA3 of $118.7 million, a 9% increase from $108.8 million (12% increase on a constant currency basis).
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•
|
Net income attributable to Euronet of $38.4 million, or $0.85 diluted earnings per share, compared with $26.2 million, or $0.55 diluted earnings per share.
|
•
|
Adjusted earnings per share4 of $1.13 ($1.33 excluding a one-time operating tax charge of $0.20 per share) compared to $1.28 ($1.13 excluding a one-time operating tax benefit of $0.15 per share).
|
"I am pleased that we achieved double-digit constant currency growth in adjusted operating income and adjusted EBITDA, highlighted by an 18% increase in adjusted operating income over the prior year. All segments contributed to the strong earnings. Moreover, the contribution of double-digit earnings growth reflects the strength of our strategic focus on our global payment network which concentrates on high value, digital payments complemented by cross-border transactions. On an apples-to-apples basis our adjusted EPS of $1.33 increased 18% from $1.13 in the first quarter of 2024," stated Michael J. Brown, Euronet's Chairman and Chief Executive Officer.
"I would offer that we do not see any direct impacts on our business as a result of the recent United States' tariff actions. With a good start to the year together with our diversified global business, we are reaffirming our expectation to produce 12% to 16% earnings growth for the year," continued Mr. Brown.
Segment and Other Results
The EFT Processing Segment reports the following results for the first quarter 2025 compared with the same period or date in 2024:
|
|
•
|
Revenues of $232.5 million, a 7% increase from $217.2 million (10% increase on a constant currency basis).
|
•
|
Operating income of $23.3 million, an 8% increase from $21.5 million (13% increase on a constant currency basis).
|
•
|
Adjusted Operating income of $23.3 million, a 10% increase from $21.1 million 15% increase on a constant currency basis).
|
•
|
Adjusted EBITDA of $47.6 million, a 6% increase from $44.7 million (10% increase on a constant currency basis).
|
•
|
Transactions of 3,463 million, a 38% increase from 2,502 million.
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•
|
Total of 55,512 installed ATMs as of March 31, 2025, a 5% increase from 53,029. We operated 51,875 active ATMs as of March 31, 2025, a 5% increase from 49,290 as of March 31, 2024.
|
Constant currency revenue, operating income, and adjusted EBITDA growth in the first quarter 2025 was driven by market expansion, growth across most existing markets and the addition of access fees and interchange fees in certain markets.
Moreover, the EFT Processing Segment launched operations in two additional countries -- Dominican Republic and Peru.
Transaction growth outpaced revenue growth due to continued growth in high-volume low-value transactions in India.
The epay Segment reports the following results for the first quarter 2025 compared with the same period or date in 2024:
•
|
Revenues of $267.4 million, a 4% increase from $257.1 million (8% increase on a constant currency basis).
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•
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Operating income of $26.8 million, a 1% increase from $26.6 million (5% increase on a constant currency basis).
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•
|
Adjusted EBITDA of $28.4 million, consistent with prior year (5% increase on a constant currency basis).
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•
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Transactions of 1,134 million, a 19% increase from 953 million.
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•
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POS terminals of approximately 735,000 as of March 31, 2025, consistent with prior year.
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•
|
Retailer locations of approximately 358,000 as of March 31, 2025, a 4% from 345,000.
|
Constant currency revenue growth was driven by continued payments, digital media and mobile growth. Operating income and adjusted EBITDA growth did not keep pace with revenue growth due to the payment of $4.5 million to resolve a non-recurring, multi-year operating tax matter during the quarter. Excluding this item, adjusted operating income would have grown 22% over the first quarter 2024 - reflecting the benefit of revenue growth and effective expense management.
epay's transactions benefited as well from the continuation of strong growth in high-volume low-value transactions in India.
•
|
Revenues of $417.7 million, a 9% increase from $384.6 million (10% increase on a constant currency basis).
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•
|
Operating income of $45.1 million, a 21% increase from $37.2 million (23% increase on a constant currency basis).
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•
|
Adjusted EBITDA of $51.3 million, a 15% increase from $44.5 million (17% increase on a constant currency basis).
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•
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Total transactions of 44.6 million, a 10% increase from 40.6 million.
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•
|
Network locations of approximately 624,000 as of March 31, 2025, a 7% increase from approximately 583,000.
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Constant currency revenue growth was primarily driven by double-digit growth in cross-border transactions, partially offset by a decrease in intra-US transactions. Direct-to-consumer digital transactions grew by 31%, reflecting strong consumer demand for digital products. Operating income and Adjusted EBITDA growth outpaced revenue growth due to gross margin expansion, leverage of scale and effective expense management.
Additionally, the Money Transfer segment continued to expand its industry leading global payments network to now reach 4.0 billion bank accounts, 3.2 billion wallet accounts and 624,000 payment locations.
Corporate and Other reports $20.0 million of expense for the first quarter 2025 compared with $21.3 million for the first quarter 2024. The decrease in corporate expenses is largely from the decrease in long-term share-based compensation.
The Company repurchased 0.6 million shares for $59.6 million during the First quarter, which will improve earnings per share by 1% for future periods.
During the quarter, Euronet repurchased $492 million of convertible notes.
(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 and other non-cash purchase accounting adjustment, 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 purchase accounting adjustment f) non-cash investment gain g) other non-operating or non-recurring items and h) 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 Presentation
EURONET WORLDWIDE, INC.
|
|||||
Condensed Consolidated Balance Sheets
|
|||||
(in millions)
|
|||||
As of
|
|||||
March 31,
|
As of
|
||||
2025
|
December 31,
|
||||
(unaudited)
|
2024
|
||||
ASSETS
|
|||||
Current assets:
|
|||||
Cash and cash equivalents
|
$
|
1,393.6
|
$
|
1,278.8
|
|
ATM cash
|
700.3
|
643.8
|
|||
Restricted cash
|
10.8
|
9.2
|
|||
Settlement assets
|
1,418.6
|
1,522.7
|
|||
Trade accounts receivable, net
|
330.5
|
284.9
|
|||
Prepaid expenses and other current assets
|
319.9
|
297.1
|
|||
Total current assets
|
4,173.7
|
4,036.5
|
|||
Property and equipment, net
|
337.4
|
329.7
|
|||
Right of use lease asset, net
|
146.1
|
132.1
|
|||
Goodwill and acquired intangible assets, net
|
1,070.9
|
1,048.1
|
|||
Other assets, net
|
325.4
|
288.1
|
|||
Total assets
|
$
|
6,053.5
|
$
|
5,834.5
|
|
LIABILITIES AND EQUITY
|
|||||
Current liabilities:
|
|||||
Settlement obligations
|
$
|
1,418.6
|
$
|
1,522.7
|
|
Accounts payable and other current liabilities
|
843.6
|
841.0
|
|||
Current portion of operating lease liabilities
|
50.8
|
48.3
|
|||
Short-term debt obligations
|
295.4
|
814.0
|
|||
Total current liabilities
|
2,608.4
|
3,226.0
|
|||
Debt obligations, net of current portion
|
1,906.0
|
1,134.4
|
|||
Operating lease liabilities, net of current portion
|
97.8
|
87.4
|
|||
Capital lease obligations, net of current portion
|
1.1
|
1.4
|
|||
Deferred income taxes
|
57.3
|
71.8
|
|||
Other long-term liabilities
|
81.2
|
84.3
|
|||
Total liabilities
|
4,751.8
|
4,605.3
|
|||
Equity
|
1,301.7
|
1,229.2
|
|||
Total liabilities and equity
|
$
|
6,053.5
|
$
|
5,834.5
|
EURONET WORLDWIDE, INC.
|
|||||||
Consolidated Statements of Operations
|
|||||||
(unaudited - in millions, except share and per share data)
|
|||||||
Three Months Ended
|
|||||||
March 31,
|
|||||||
2025
|
2024
|
||||||
Revenues
|
$
|
915.5
|
|
$
|
857.0
|
|
|
Operating expenses:
|
|||||||
Direct operating costs
|
561.0
|
|
533.7
|
|
|||
Salaries and benefits
|
164.1
|
|
154.7
|
|
|||
Selling, general and administrative
|
83.0
|
|
71.9
|
|
|||
Depreciation and amortization
|
32.2
|
|
32.7
|
|
|||
Total operating expenses
|
840.3
|
|
793.0
|
|
|||
Operating income
|
75.2
|
|
64.0
|
||||
Other income (expense):
|
|||||||
Interest income
|
5.3
|
|
|
5.7
|
|
||
Interest expense
|
(19.4
|
) |
|
(14.9
|
) | ||
Foreign currency exchange (loss)
|
(18.1
|
) |
|
(12.5
|
) | ||
Other income (expense)
|
2.5
|
(0.1
|
) | ||||
Total other income (expense), net
|
(29.7
|
) |
(21.8
|
) | |||
Income before income taxes
|
45.5
|
42.2
|
|||||
Income tax expense
|
(7.1
|
) |
|
(16.0
|
) | ||
Net income
|
38.4
|
26.2
|
|||||
Net loss attributable to non-controlling interests
|
—
|
|
—
|
||||
Net income attributable to Euronet Worldwide, Inc.
|
$
|
38.4
|
$
|
26.2
|
|||
Add: Interest expense from assumed conversion of convertible notes, net of tax
|
|
1.0
|
|
0.9
|
|||
Net income for diluted earnings per share calculation
|
$
|
39.4
|
$
|
27.1
|
|||
Earnings per share attributable to Euronet
|
|||||||
Worldwide, Inc. stockholders - diluted
|
$ |
0.85
|
$
|
0.55
|
|||
Diluted weighted average shares outstanding
|
46,239,523
|
|
48,962,583
|
|
|||
EURONET WORLDWIDE, INC.
|
|||||||||||||||||||
Reconciliation of Net Income to Operating Income (Expense) to Adjusted Operating Income (Expense) and Adjusted EBITDA
|
|||||||||||||||||||
(unaudited - in millions)
|
|||||||||||||||||||
Three months ended March 31, 2025
|
|||||||||||||||||||
EFT Processing
|
epay
|
Money Transfer
|
Corporate Services
|
Consolidated
|
|||||||||||||||
Net income
|
$
|
38.4
|
|
||||||||||||||||
Add: Income tax expense
|
7.1
|
|
|||||||||||||||||
Add: Total other expense, net
|
29.7
|
||||||||||||||||||
Operating income (expense)
|
$
|
23.3
|
$
|
26.8
|
|
$
|
45.1
|
|
$
|
(20.0
|
) |
$
|
75.2
|
|
|||||
Add: Depreciation and amortization
|
24.3
|
|
1.6
|
|
6.1
|
|
0.2
|
|
32.2
|
|
|||||||||
Add: Share-based compensation
|
—
|
|
—
|
|
0.1
|
|
11.2
|
|
11.3
|
|
|||||||||
Earnings before interest, taxes, depreciation, amortization and share-based compensation (Adjusted EBITDA)
|
$
|
47.6
|
$
|
28.4
|
|
$
|
51.3
|
|
$
|
(8.6
|
) |
$
|
118.7
|
|
|||||
Three months ended March 31, 2024
|
|||||||||||||||||||
EFT Processing
|
epay
|
Money Transfer
|
Corporate Services
|
Consolidated
|
|||||||||||||||
Net income
|
$
|
26.2
|
|||||||||||||||||
Add: Income tax expense
|
16.0
|
||||||||||||||||||
Add: Total other expense, net
|
21.8
|
|
|||||||||||||||||
Operating income (expense)
|
$
|
21.5
|
$
|
26.6
|
|
$
|
37.2
|
$
|
(21.3
|
) |
$
|
64.0
|
|||||||
Less: Non-cash purchase accounting adjustment
|
(0.4
|
) |
—
|
|
—
|
|
—
|
|
(0.4
|
) | |||||||||
Adjusted operating income (1)
|
21.1
|
|
26.6
|
|
37.2
|
|
(21.3
|
) |
63.6
|
|
|||||||||
Add: Depreciation and amortization
|
23.6
|
|
1.7
|
|
7.3
|
|
0.1
|
|
32.7
|
|
|||||||||
Add: Share-based compensation
|
—
|
|
—
|
|
—
|
|
12.5
|
|
12.5
|
|
|||||||||
Earnings before interest, taxes, depreciation, amortization and share-based compensation, non-cash purchase accounting adjustment (Adjusted EBITDA)
|
$
|
44.7
|
$
|
28.3
|
|
$
|
44.5
|
|
$
|
(8.7
|
) |
$
|
108.8
|
|
(1) Adjusted operating income 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)
|
|||||||
Three Months Ended
|
|||||||
March 31,
|
|||||||
2025
|
2024
|
||||||
Net income attributable to Euronet Worldwide, Inc.
|
$
|
38.4
|
$
|
26.2
|
|||
Foreign currency exchange loss
|
18.1
|
12.5
|
|||||
Intangible asset amortization(1)
|
4.5
|
|
5.5
|
|
|||
Non-cash purchase accounting adjustment(2)
|
—
|
|
(0.4
|
) | |||
Share-based compensation(3)
|
11.3
|
|
12.5
|
|
|||
Income tax effect of above adjustments(4)
|
—
|
0.6
|
|||||
Non-cash investment gain(5)
|
(3.0
|
) |
—
|
|
|||
Non-cash GAAP tax expense (benefit)(6)
|
(19.3
|
) |
2.5
|
|
|||
Adjusted earnings(7)
|
$
|
50.0
|
|
$
|
59.4
|
|
|
Adjusted earnings per share - diluted(7)
|
$
|
1.13
|
|
$
|
1.28
|
|
|
Diluted weighted average shares outstanding (GAAP)
|
|
46,239,523
|
|
48,962,583
|
|
||
Effect of adjusted EPS dilution of convertible notes
|
|
(2,347,536 | ) | (2,781,818 | ) | ||
Effect of unrecognized share-based compensation on diluted shares outstanding
|
371,757
|
|
355,219
|
|
|||
Adjusted diluted weighted average shares outstanding
|
|
44,263,744
|
|
46,535,984
|
|
(4) 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.
(5) Non-cash investment gain of $3.0 million is included in other income in the consolidated statement of operations.
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