Segment Information (Tables)

6 Months Ended

Jun. 30, 2018

Information about Operations by Business Segments

The following tables set forth information about the Company’s operations by its four business segments for the periods indicated:



	Three months ended June 30, 2018
(In thousands)	Payment Services - Puerto Rico & Caribbean		Payment Services - Latin America		Merchant Acquiring, net		Business Solutions		Corporate and Other ⁽¹⁾			Total

Revenues	$	28,043	$	19,236	$	25,964	$	49,233	$	(9,129	)	$	113,347
Operating costs and expenses	13,130		18,407		14,112		30,351		6,707			82,707
Depreciation and amortization	2,409		2,249		421		3,520		7,129			15,728
Non-operating income (expenses)	551		1,401		4		66		(1,916		)	106
EBITDA	17,873		4,479		12,277		22,468		(10,623		)	46,474
Compensation and benefits ⁽²⁾	485		317		360		684		2,627			4,473
Transaction, refinancing and other fees ⁽³⁾	—		—		1		—		2,820			2,821
Adjusted EBITDA	$	18,358	$	4,796	$	12,638	$	23,152	$	(5,176	)	$	53,768

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment eliminations predominantly reflect the $9.1 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, other compensation expense and severance payments.


(3)	Primarily represents fees and expenses associated with corporate transactions as defined in the Credit Agreement.



	Three months ended June 30, 2017
(In thousands)	Payment Services - Puerto Rico & Caribbean		Payment Services - Latin America		Merchant Acquiring, net		Business Solutions		Corporate and Other ⁽¹⁾			Total

Revenues	$	27,144	$	12,973	$	23,506	$	48,672	$	(8,784	)	$	103,511
Operating costs and expenses	11,682		13,603		13,688		29,600		4,944			73,517
Depreciation and amortization	2,269		1,848		596		4,082		7,104			15,899
Non-operating income (expenses)	556		2,724		—		3		(1,805		)	1,478
EBITDA	18,287		3,942		10,414		23,157		(8,429		)	47,371
Compensation and benefits ⁽²⁾	125		156		121		286		1,439			2,127
Transaction, refinancing and other fees ⁽³⁾	—		—		—		—		632			632
Adjusted EBITDA	$	18,412	$	4,098	$	10,535	$	23,443	$	(6,358	)	$	50,130

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment eliminations predominantly reflect the $8.8 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, other compensation expense and severance payments.


(3)	Primarily represents fees and expenses associated with corporate transactions as defined in the Credit Agreement.



	Six months ended June 30, 2018
(In thousands)	Payment Services - Puerto Rico & Caribbean			Payment Services - Latin America		Merchant Acquiring, net		Business Solutions		Corporate and Other ⁽¹⁾			Total

Revenues	$	55,211		$	39,627	$	49,343	$	97,154	$	(17,714	)	$	223,621
Operating costs and expenses	26,063			36,467		27,253		59,366		10,277			159,426
Depreciation and amortization	4,725			4,698		841		7,039		14,292			31,595
Non-operating income (expenses)	1,367			3,214		8		366		(3,833		)	1,122
EBITDA	35,240			11,072		22,939		45,193		(17,532		)	96,912
Compensation and benefits ⁽²⁾	678			717		550		1,124		5,233			8,302
Transaction, refinancing and other fees ⁽³⁾	(250		)	—		1		—		2,771			2,522
Adjusted EBITDA	$	35,668		$	11,789	$	23,490	$	46,317	$	(9,528	)	$	107,736

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment eliminations predominantly reflect the $17.7 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, other compensation expense and severance payments.


(3)	Primarily represents fees and expenses associated with corporate transactions as defined in the Credit Agreement.



	Six months ended June 30, 2017
(In thousands)	Payment Services - Puerto Rico & Caribbean			Payment Services - Latin America		Merchant Acquiring, net		Business Solutions		Corporate and Other ⁽¹⁾			Total

Revenues	$	53,596		$	25,937	$	45,991	$	96,669	$	(17,402	)	$	204,791
Operating costs and expenses	23,484			25,869		27,101		59,365		8,386			144,205
Depreciation and amortization	4,418			3,719		1,195		8,096		14,155			31,583
Non-operating income (expenses)	1,109			5,455		1		3		(3,673		)	2,895
EBITDA	35,639			9,242		20,086		45,403		(15,306		)	95,064
Compensation and benefits ⁽²⁾	224			307		216		512		2,944			4,203
Transaction, refinancing and other fees ⁽³⁾	(660		)	—		—		—		682			22
Adjusted EBITDA	$	35,203		$	9,549	$	20,302	$	45,915	$	(11,680	)	$	99,289

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment eliminations predominantly reflect the $17.4 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, other compensation expense and severance payments.


(3)	Primarily represents fees and expenses associated with corporate transactions as defined in the Credit Agreement.

Reconciliation of Income from Operations to Consolidated Net Income

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



	Three months ended June 30,				Six months ended June 30,
(In thousands)	2018		2017		2018		2017
Total EBITDA	$	46,474	$	47,371	$	96,912	$	95,064
Less:
Income tax expense	3,112		4,068		7,047		6,088
Interest expense, net	7,501		7,190		15,023		14,041
Depreciation and amortization	15,728		15,899		31,595		31,583
Net Income	$	20,133	$	20,214	$	43,247	$	43,352