Segment Information (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Operations by Business Segments

The reconciliation of EBITDA to consolidated net income is as follows:



	Years ended December 31,
(Dollar amounts in thousands)	2017		2016		2015
Total EBITDA	$	153,594	$	167,204	$	170,787
Less:
Income tax expense (benefit)	4,780		8,271		(3,335		)
Interest expense, net	29,145		24,240		23,771
Depreciation and amortization	64,250		59,567		64,974
Net Income	$	55,419	$	75,126	$	85,377

The following tables set forth information about the Company’s operations by its four business segments for the periods indicated below. Historical information has been conformed to the updated presentation.



	December 31, 2017
(Dollar amounts in thousands)	Payment Services - Puerto Rico & Caribbean		Payment Services - Latin America		Merchant Acquiring, net		Business Solutions		Corporate and Other ⁽¹⁾			Total

Revenues	$	101,687	$	62,702	$	85,778	$	189,077	$	(32,100	)	$	407,144
Operating costs and expenses	57,463		66,786		57,574		119,761		19,477			321,061
Depreciation and amortization	8,993		8,880		2,254		15,774		28,349			64,250
Non-operating income (expenses)	2,229		8,726		1		13		(7,708		)	3,261
EBITDA	55,446		13,522		30,459		85,103		(30,936		)	153,594
Compensation and benefits⁽²⁾	589		816		573		1,687		6,090			9,755
Transaction, refinancing, exit activity and other fees ⁽³⁾	2,499		3,220		6,465		—		2,495			14,679
Adjusted EBITDA	$	58,534	$	17,558	$	37,497	$	86,790	$	(22,351	)	$	178,028

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment eliminations predominantly reflect the $32.1 million processing fee from Payments Services - Puerto Rico and Caribbean to Merchant Acquiring and cost transfer fees from Corporate and Other to Payment Services Latin America for leveraged services and management fees.


(2)	Primarily represents share-based compensation and other compensation expense and severance payments.


(3)	Primarily represents fees and expenses associated with corporate transactions as defined in the Credit Agreement and an impairment charge and contractual fee accrual for a third party software solution that was determined to be commercially unviable.



	December 31, 2016
(Dollar amounts in thousands)	Payment Services - Puerto Rico & Caribbean		Payment Services - Latin America		Merchant Acquiring, net		Business Solutions		Corporate and Other ⁽¹⁾			Total

Revenues	$	99,680	$	47,162	$	91,248	$	184,276	$	(32,859	)	$	389,507
Operating costs and expenses	49,128		45,304		52,771		113,082		22,077			282,362
Depreciation and amortization	7,597		7,285		2,672		13,783		28,230			59,567
Non-operating income (expenses)	2,238		5,584		—		24		(7,354		)	492
EBITDA	60,387		14,727		41,149		85,001		(34,060		)	167,204
Compensation and benefits⁽²⁾	637		627		480		1,961		6,777			10,482
Transaction, refinancing, exit activity and other fees ⁽³⁾	2,062		—		—		2,277		5,650			9,989
Adjusted EBITDA	$	63,086	$	15,354	$	41,629	$	89,239	$	(21,633	)	$	187,675

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment eliminations predominantly reflect the $32.9 million processing fee from Payments Services - Puerto Rico and Caribbean to Merchant Acquiring and cost transfer fees from Corporate and Other to Payment Services Latin America for leveraged services and management fees.


(2)	Primarily represents share-based compensation and other compensation expense and severance payments.


(3)	Primarily represents fees and expenses associated with corporate transactions as defined in the Credit Agreement and consulting, audit and legal expenses incurred as part of the prior year restatement of financial results, certain fees paid to resolve a software maintenance contract mater, fees paid in connection with the debt refinancing and a software impairment charge.



	December 31, 2015
(Dollar amounts in thousands)	Payment Services - Puerto Rico & Caribbean		Payment Services - Latin America		Merchant Acquiring, net		Business Solutions		Corporate and Other ⁽¹⁾			Total

Revenues	$	99,311	$	37,523	$	85,411	$	179,532	$	(28,249	)	$	373,528
Operating costs and expenses	48,853		35,790		42,804		117,079		25,642			270,168
Depreciation and amortization	7,488		5,766		1,438		16,128		34,154			64,974
Non-operating income (expenses)	2,909		4,147		—		428		(5,031		)	2,453
EBITDA	60,855		11,646		44,045		79,009		(24,768		)	170,787
Compensation and benefits⁽²⁾	1,420		132		1,361		4,044		5,280			12,237
Transaction, refinancing, exit activity and other fees ⁽³⁾	22		22		41		139		2,928			3,152
Adjusted EBITDA	$	62,297	$	11,800	$	45,447	$	83,192	$	(16,560	)	$	186,176

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment eliminations predominantly reflect the $28.2 million processing fee from Payments Services - Puerto Rico and Caribbean to Merchant Acquiring and cost transfer fees from Corporate and Other to Payment Services Latin America for leveraged services and management fees.


(2)	Primarily represents share-based compensation and other compensation expense and severance payments.


(3)	Primarily represents fees and expenses associated with corporate transactions as defined in the Credit Agreement and reimbursements received for certain software maintenance expenses as part of the Merger.

Segment Information by Geographic Location

The geographic segment information below is classified based on the geographic location of the Company’s subsidiaries:



	Years ended December 31,
(Dollar amounts in thousands)	2017		2016		2015
Revenues ⁽¹⁾
Puerto Rico	$	329,533	$	326,073	$	322,457
Caribbean	14,909		16,272		13,551
Latin America	62,702		47,162		37,520
Total revenues	$	407,144	$	389,507	$	373,528


(1)	Revenues are based on subsidiaries’ country of domicile.