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Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Operations by Business Segments

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, 2019
(In thousands)	Payment Services - Puerto Rico & Caribbean		Payment Services - Latin America		Merchant Acquiring, net		Business Solutions		Corporate and Other ⁽¹⁾			Total

Revenues	$	125,544	$	84,453	$	106,388	$	216,662	$	(45,673	)	$	487,374
Operating costs and expenses	61,396		65,701		62,098		138,224		15,453			342,872
Depreciation and amortization	11,646		9,930		1,814		16,529		28,163			68,082
Non-operating income (expenses)	1,781		286		48		340		(2,688		)	(233		)
EBITDA	77,575		28,968		46,152		95,307		(35,651		)	212,351
Compensation and benefits⁽²⁾	1,034		1,501		1,004		2,114		8,145			13,798
Transaction, refinancing, and other fees ⁽³⁾	—		210		—		—		(163		)	47
Adjusted EBITDA	$	78,609	$	30,679	$	47,156	$	97,421	$	(27,669	)	$	226,196

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment eliminations predominantly reflect the $39.0 million processing fee from Payments Services - Puerto Rico and Caribbean to Merchant Acquiring, intercompany software sale and developments of $6.7 million from Payment Services- Latin America to Payment Services- Puerto Rico & Caribbean 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 2018 Credit Agreement and the elimination of non-cash equity earnings from our 19.99% equity investment in Consorcio de Tarjetas Dominicanas S.A., net of cash dividends received.



	December 31, 2018
(In thousands)	Payment Services - Puerto Rico & Caribbean			Payment Services - Latin America		Merchant Acquiring, net		Business Solutions		Corporate and Other ⁽¹⁾			Total

Revenues	$	114,119		$	80,899	$	99,655	$	197,602	$	(38,406	)	$	453,869
Operating costs and expenses	52,006			75,240		55,778		126,232		19,485			328,741
Depreciation and amortization	9,734			9,284		1,698		13,878		28,473			63,067
Non-operating income (expenses)	2,420			11,750		3		477		(11,356		)	3,294
EBITDA	74,267			26,693		45,578		85,725		(40,774		)	191,489
Compensation and benefits⁽²⁾	1,087			1,034		938		2,088		8,512			13,659
Transaction, refinancing, exit activity and other fees ⁽³⁾	(250		)	—		—		—		7,561			7,311
Adjusted EBITDA	$	75,104		$	27,727	$	46,516	$	87,813	$	(24,701	)	$	212,459

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment eliminations predominantly reflect the $36.1 million processing fee from Payments Services - Puerto Rico and Caribbean to Merchant Acquiring, intercompany software sale and developments of $2.3 million from Payment Services- Latin America to Payment Services- Puerto Rico & Caribbean 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 2018 Credit Agreement, relief contributions related to the 2017 hurricanes and the elimination of non-cash equity earnings from our 19.99% equity investment in Consorcio de Tarjetas Dominicanas S.A., net of cash dividends received.



	December 31, 2017
(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, 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 2013 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 matter, a software impairment charge and the elimination of non-cash equity earnings from our 19.99% equity investment in Consorcio de Tarjetas Dominicanas S.A.

Reconciliation of Income from Operations to Consolidated Net Income

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



	Years ended December 31,
(In thousands)	2019		2018		2017
Total EBITDA	$	212,351	$	191,489	$	153,594
Less:
Income tax expense	12,975		12,596		4,780
Interest expense, net	27,594		29,257		29,145
Depreciation and amortization	68,082		63,067		64,250
Net Income	$	103,700	$	86,569	$	55,419

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)	2019		2018		2017
Revenues ⁽¹⁾
Puerto Rico	$	392,628	$	358,436	$	329,533
Caribbean	15,950		15,672		14,909
Latin America	78,796		79,761		62,702
Total revenues	$	487,374	$	453,869	$	407,144

(1)

Revenues are based on subsidiaries’ country of domicile.