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Segment Information (Tables)

6 Months Ended

Jun. 30, 2020

Summary of 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, 2020
(In thousands)	Payment Services - Puerto Rico & Caribbean			Payment Services - Latin America		Merchant Acquiring, net		Business Solutions		Corporate and Other ⁽¹⁾			Total

Revenues	$	27,461		$	19,797	$	24,764	$	55,495	$	(9,580	)	$	117,937
Operating costs and expenses	17,453			17,947		12,230		37,008		7,709			92,347
Depreciation and amortization	3,193			2,815		455		4,381		6,995			17,839
Non-operating income (expenses)	(178		)	584		158		684		(883		)	365
EBITDA	13,023			5,249		13,147		23,552		(11,177		)	43,794
Compensation and benefits ⁽²⁾	253			835		235		472		1,956			3,751
Transaction, refinancing and other fees ⁽³⁾	—			—		—		—		2,656			2,656
Adjusted EBITDA	$	13,276		$	6,084	$	13,382	$	24,024	$	(6,565	)	$	50,201

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $7.3 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring and intercompany software developments and transaction processing of $2.3 million from Payment Services - Latin America to Payment Services - Puerto Rico & Caribbean. Corporate and Other was impacted by the intersegment elimination of revenue recognized in the Payment Services - Latin America segment and capitalized in the Payment Services - Puerto Rico & Caribbean segment; excluding this impact, Corporate and Other Adjusted EBITDA would be $4.3 million.


(2)	Primarily represents share-based compensation.


(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.



	Three months ended June 30, 2019
(In thousands)	Payment Services - Puerto Rico & Caribbean		Payment Services - Latin America		Merchant Acquiring, net		Business Solutions		Corporate and Other ⁽¹⁾			Total

Revenues	$	30,482	$	21,106	$	26,793	$	55,183	$	(11,016	)	$	122,548
Operating costs and expenses	13,630		17,654		15,230		35,959		2,387			84,860
Depreciation and amortization	2,740		2,547		423		4,479		7,006			17,195
Non-operating income (expenses)	470		1,601		10		34		(3,061		)	(946		)
EBITDA	20,062		7,600		11,996		23,737		(9,458		)	53,937
Compensation and benefits ⁽²⁾	257		173		255		529		2,284			3,498
Transaction, refinancing and other fees ⁽³⁾	—		—		—		—		362			362
Adjusted EBITDA	$	20,319	$	7,773	$	12,251	$	24,266	$	(6,812	)	$	57,797

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $9.7 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring and intercompany software sale and developments of $1.3 million from Payment Services - Latin America to Payment Services - Puerto Rico & Caribbean. Corporate and Other was impacted by the intersegment elimination of revenue recognized in the Payment Services - Latin America segment and capitalized in the Payment Services - Puerto Rico & Caribbean segment; excluding this impact, Corporate and Other Adjusted EBITDA would be $5.5 million.


(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 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.



	Six months ended June 30, 2020
(In thousands)	Payment Services - Puerto Rico & Caribbean			Payment Services - Latin America		Merchant Acquiring, net		Business Solutions		Corporate and Other ⁽¹⁾			Total

Revenues	$	57,348		$	41,437	$	49,885	$	111,438	$	(20,229	)	$	239,879
Operating costs and expenses	34,859			35,598		26,936		70,625		13,508			181,526
Depreciation and amortization	6,442			5,572		954		8,677		13,989			35,634
Non-operating income (expenses)	(65		)	1,338		312		1,071		(1,845		)	811
EBITDA	28,866			12,749		24,215		50,561		(21,593		)	94,798
Compensation and benefits ⁽²⁾	484			1,577		451		908		3,831			7,251
Transaction, refinancing and other fees ⁽³⁾	—			—		—		—		4,442			4,442
Adjusted EBITDA	$	29,350		$	14,326	$	24,666	$	51,469	$	(13,320	)	$	106,491

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $16.3 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring and intercompany software developments and transaction processing of $3.9 million from Payment Services - Latin America to Payment Services - Puerto Rico & Caribbean. Corporate and Other was impacted by the intersegment elimination of revenue recognized in the Payment Services - Latin America segment and capitalized in the Payment Services - Puerto Rico & Caribbean segment; excluding this impact, Corporate and Other Adjusted EBITDA would be $9.4 million.


(2)	Primarily represents share-based compensation.


(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.



	Six months ended June 30, 2019
(In thousands)	Payment Services - Puerto Rico & Caribbean		Payment Services - Latin America		Merchant Acquiring, net		Business Solutions		Corporate and Other ⁽¹⁾			Total

Revenues	$	62,499	$	41,937	$	52,767	$	106,547	$	(22,366	)	$	241,384
Operating costs and expenses	27,845		35,227		29,948		68,869		4,402			166,291
Depreciation and amortization	5,383		4,743		891		8,333		14,118			33,468
Non-operating income (expenses)	1,051		4,235		31		220		(6,053		)	(516		)
EBITDA	41,088		15,688		23,741		46,231		(18,703		)	108,045
Compensation and benefits ⁽²⁾	494		339		475		1,083		4,546			6,937
Transaction, refinancing and other fees ⁽³⁾	—		2		—		—		409			411
Adjusted EBITDA	$	41,582	$	16,029	$	24,216	$	47,314	$	(13,748	)	$	115,393

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $18.9 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring and intercompany software sale and developments of $3.4 million from Payment Services - Latin America to the Payment Services - Puerto Rico & Caribbean. Corporate and Other was impacted by the intersegment elimination of revenue recognized in the Payment Services - Latin America segment and capitalized in the Payment Services - Puerto Rico & Caribbean segment; excluding this impact, Corporate and Other Adjusted EBITDA would be $10.3 million.


(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 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.

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)	2020		2019		2020		2019
Total EBITDA	$	43,794	$	53,937	$	94,798	$	108,045
Less:
Income tax expense	4,520		2,489		9,038		6,298
Interest expense, net	5,810		7,116		12,226		14,408
Depreciation and amortization	17,839		17,195		35,634		33,468
Net income	$	15,625	$	27,137	$	37,900	$	53,871