LEAWOOD, Kan., June 11, 2024 (GLOBE NEWSWIRE) -- Euronet (NASDAQ:EEFT), a leading global financial technology solutions and payments provider, today announced the appointment of Sergi Herrero to the Euronet Board of Directors effective June 4, 2024. His appointment increases the size of the board from nine to ten members. "We are extremely pleased to welcome Sergi to our board," said Michael J. Brown, Euronet's Chairman and Chief Executive Officer. "He has extensive C-level experience as an executive office ...

Mr. Herrero is currently the Chairman of the Board at Intix, a transaction data analytics fintech for banks and securities houses. Mr. Herrero also serves on the board of Ezra, a fintech company based in the Middle East. Previously, he was Meta's Global Director of Payments and Commerce from 2016 to 2019. At Meta, he created a global partnership team to deploy and grow Meta's payments and commerce platform. Mr. Herrero holds master's degrees in Management from the University of California, Berkley, and Ramo ...

Investors interested in the broader Finance space may look at some other top-ranked players like Axos Financial, Inc. (AX) , WisdomTree, Inc. (WT) and ChoiceOne Financial Services, Inc. (COFS) , each carrying a Zacks Rank #2 now. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Axos Financial's current-year earnings indicates 52.3% year-over-year growth. AX beat earnings estimates in each of the past four quarters with an average surprise of 12.6%. The con ...

It has been about a month since the last earnings report for Euronet Worldwide (EEFT) . Shares have added about 6.5% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Euronet Worldwide due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Euronet's Q1 Earnings Beat on Mo ...

Since its inception in 2012, the MEPS ATM network has provided millions of Malaysians in local communities and small businesses with convenient access to cash. Euronet will maintain and expand the IAD network across Malaysia, promoting financial inclusion. LEAWOOD, Kan., May 30, 2024 (GLOBE NEWSWIRE) -- Euronet (NASDAQ:EFFT), a leading global financial technology solutions and payments provider, announced today the completion of the acquisition of the Malaysian Electronic Payment System (MEPS) ATM terminals ...

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Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks ...

Shares of Euronet Worldwide, Inc. (EEFT) have gained 7.4% since it reported better-than-expected first-quarter 2024 results on Apr 30. The results received an impetus from strong revenue contributions from the EFT Processing, epay and Money Transfer segments. Solid growth in cross-border transactions and sustained demand for digital products aided performance. However, the upside was partly offset by a higher level of operating costs.EEFT reported first-quarter adjusted earnings of $1.28 per share, which su ...

[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents Euronet's unaudited consolidated financial statements for Q1 2024, including balance sheets, operations, equity, cash flows, and notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20March%2031%2C%202024%20and%20December%2031%2C%202023) Balance Sheet Metrics | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | Change (in millions) | Change (%) | | :-------------------------------- | :----------------------------- | :------------------------------ | :------------------- | :--------- | | Total Assets | $5,693.6 | $5,894.4 | $(200.8) | (3.4)% | | Total Liabilities | $4,450.0 | $4,644.7 | $(194.7) | (4.2)% | | Total Equity | $1,243.6 | $1,249.7 | $(6.1) | (0.5)% | | Cash and cash equivalents | $1,236.2 | $1,254.2 | $(18.0) | (1.4)% | | Short-term debt obligations | $675.2 | $150.3 | $524.9 | 349.2% | - **Total assets decreased by** **$200.8 million**, primarily driven by a **decrease in settlement assets and cash**, partially offset by an **increase in ATM cash**[10](index=10&type=chunk) - **Current liabilities saw a significant increase in short-term debt obligations**, **rising from $150.3 million to $675.2 million**, reflecting a **reclassification of debt**[10](index=10&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) Statements of Operations Metrics | Metric | Three Months Ended March 31, 2024 (in millions) | Three Months Ended March 31, 2023 (in millions) | Change (in millions) | Change (%) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------- | :--------- | | Revenues | $857.0 | $787.2 | $69.8 | 8.9% | | Operating Income | $64.0 | $45.6 | $18.4 | 40.4% | | Net Income | $26.2 | $19.8 | $6.4 | 32.3% | | Basic EPS | $0.57 | $0.40 | $0.17 | 42.5% | | Diluted EPS | $0.55 | $0.39 | $0.16 | 41.0% | - **Revenues increased by** **8.9%** year-over-year, driven by growth across all segments[12](index=12&type=chunk) - **Operating income saw a substantial increase of** **40.4%**, indicating improved operational efficiency[12](index=12&type=chunk) - **Net income attributable to Euronet Worldwide, Inc. increased by** **30%** to **$26.2 million**, and **diluted EPS rose by** **41%** to **$0.55**[12](index=12&type=chunk)[166](index=166&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(loss)%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) Comprehensive Income Metrics | Metric | Three Months Ended March 31, 2024 (in millions) | Three Months Ended March 31, 2023 (in millions) | | :------------------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | | Net income | $26.2 | $19.8 | | Translation adjustment | $(45.0) | $20.8 | | Comprehensive income (loss) | $(18.8) | $40.6 | | Comprehensive income (loss) attributable to Euronet Worldwide, Inc. | $(18.8) | $40.7 | - The company reported a **comprehensive loss of** **$18.8 million** for Q1 2024, primarily due to a **negative foreign currency translation adjustment of** **$45.0 million**, a **significant shift** from a positive adjustment in Q1 2023[15](index=15&type=chunk)[38](index=38&type=chunk) [Consolidated Statements of Changes in Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) Changes in Equity Metrics | Equity Component | Balance as of Dec 31, 2023 (in millions) | Net Income (Loss) (in millions) | Other Comprehensive Income (in millions) | Stock Issued (in millions) | Share-based Compensation (in millions) | Balance as of Mar 31, 2024 (in millions) | | :----------------------- | :------------------------------------- | :------------------------------ | :--------------------------------------- | :------------------------- | :------------------------------------- | :------------------------------------- | | Common Stock | $1.3 | — | — | — | — | $1.3 | | Additional Paid-in Capital | $1,311.6 | — | — | $0.7 | $12.5 | $1,324.8 | | Treasury Stock | $(1,487.7) | — | — | $(0.5) | — | $(1,488.2) | | Retained Earnings | $1,627.9 | $26.2 | — | — | — | $1,654.1 | | Accumulated Other Comprehensive Loss | $(203.2) | — | $(45.0) | — | — | $(248.2) | | Total Equity | $1,249.7 | $26.2 | $(45.0) | $0.2 | $12.5 | $1,243.6 | - **Total equity decreased slightly from** **$1,249.7 million to $1,243.6 million**, primarily due to a **significant accumulated other comprehensive loss of** **$45.0 million**, offsetting the net income of **$26.2 million**[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) Cash Flow Activities | Cash Flow Activity | Three Months Ended March 31, 2024 (in millions) | Three Months Ended March 31, 2023 (in millions) | Change (in millions) | | :------------------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | :------------------- | | Net cash provided by operating activities | $30.0 | $3.3 | $26.7 | | Net cash used in investing activities | $(96.8) | $(18.1) | $(78.7) | | Net cash provided by (used in) financing activities | $81.3 | $(4.4) | $85.7 | | Decrease in cash and cash equivalents and restricted cash | $(32.7) | $(53.1) | $20.4 | - **Operating cash flow significantly increased to** **$30.0 million** in Q1 2024 from **$3.3 million** in Q1 2023, driven by **higher net income** and **favorable working capital changes**[19](index=19&type=chunk)[171](index=171&type=chunk) - **Investing activities used** **$96.8 million**, primarily due to the **$70.0 million acquisition of Infinitium Group** and **increased purchases of property and equipment**[19](index=19&type=chunk)[172](index=172&type=chunk) - **Financing activities provided** **$81.3 million**, a **substantial improvement** from a **$4.4 million** outflow in Q1 2023, mainly due to **net borrowings** from credit agreements to fund ATM cash and acquisitions[19](index=19&type=chunk)[173](index=173&type=chunk) [Notes to the Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) [(1) General](index=8&type=section&id=(1)%20GENERAL) - Euronet Worldwide, Inc. is a leading electronic payments provider, offering ATM, POS, card outsourcing, prepaid mobile airtime, and international payment services[21](index=21&type=chunk) - The financial statements are prepared in conformity with **U.S. GAAP** and include normal recurring adjustments. Management uses estimates for income taxes, asset impairment, purchase price allocation, and revenue recognition[22](index=22&type=chunk)[23](index=23&type=chunk) - The company experiences seasonality: **EFT Processing peaks in Q3 (tourism)**, **epay in Q4/Q1 (holidays)**, and **Money Transfer from May through Q4 (worker migration/holidays)**[24](index=24&type=chunk) [(2) Recently Issued Accounting Pronouncements](index=9&type=section&id=(2)%20RECENTLY%20ISSUED%20ACCOUNTING%20PRONOUNCEMENTS) - **New FASB standards on segment reporting** (effective 2025 for interim) and **income tax disclosures** (effective 2025 for annual) are being evaluated for **potential impact** on the Company's disclosures[26](index=26&type=chunk)[27](index=27&type=chunk) [(3) Acquisitions](index=9&type=section&id=(3)%20ACQUISITIONS) - On February 1, 2024, Euronet acquired **Infinitium Group**, a **payments authentication solutions provider**, for **$70.0 million cash** and **$5.0 million in common stock**[28](index=28&type=chunk) - The acquisition's **purchase consideration** was **preliminarily allocated**: **$51.0 million to customer relationships**, **$5.6 million to acquired net assets**, and **$18.4 million to goodwill**[28](index=28&type=chunk) [(4) Settlement Assets and Obligations](index=9&type=section&id=(4)%20SETTLEMENT%20ASSETS%20AND%20OBLIGATIONS) - **Settlement assets** (funds from agents/merchants for unsettled transactions) and corresponding **settlement obligations** (amounts to be paid to transferees/agents/content providers) are recorded[29](index=29&type=chunk)[30](index=30&type=chunk) Settlement Assets and Obligations Summary | Category | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :-------------------------- | :----------------------------- | :------------------------------ | | Total Settlement Assets | $1,413.5 | $1,681.5 | | Total Settlement Obligations | $1,413.5 | $1,681.5 | - **Settlement cash and cash equivalents decreased from** **$327.4 million to $250.8 million**, while **settlement restricted cash also decreased from** **$125.0 million to $111.8 million**[31](index=31&type=chunk) [(5) Stockholders' Equity](index=10&type=section&id=(5)%20STOCKHOLDERS'%20EQUITY) Earnings Per Share and Shares Outstanding | EPS Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------------------ | :-------------------------------- | :-------------------------------- | | Basic Earnings Per Share | $0.57 | $0.40 | | Diluted Earnings Per Share | $0.55 | $0.39 | | Basic Weighted Average Shares Outstanding | 45,816,943 | 49,811,368 | | Diluted Weighted Average Shares Outstanding | 48,962,583 | 52,974,800 | - **Diluted EPS calculation includes** **2.8 million incremental shares** from **assumed conversion of convertible notes**, if dilutive, regardless of market price trigger[35](index=35&type=chunk)[36](index=36&type=chunk) - The company has two **share repurchase programs** in place, with approximately **$96.6 million remaining under the 2022 program** and **$350 million available under the 2023 program** as of March 31, 2024[37](index=37&type=chunk)[203](index=203&type=chunk) - **Accumulated other comprehensive loss increased by** **$45.0 million** in Q1 2024, entirely due to **negative foreign currency translation adjustments**[38](index=38&type=chunk) [(6) Goodwill and Acquired Intangible Assets, Net](index=12&type=section&id=(6)%20GOODWILL%20AND%20ACQUIRED%20INTANGIBLE%20ASSETS%2C%20NET) Goodwill and Acquired Intangible Assets Summary | Asset Category | Balance as of Dec 31, 2023 (in millions) | Acquisition (in millions) | Amortization (in millions) | FX Rate Changes (in millions) | Balance as of Mar 31, 2024 (in millions) | | :----------------------- | :------------------------------------- | :------------------------ | :------------------------- | :---------------------------- | :------------------------------------- | | Acquired Intangible Assets | $167.6 | $51.0 | $(5.5) | $(4.2) | $208.9 | | Goodwill | $847.5 | $18.4 | — | $(17.1) | $848.8 | | Total | $1,015.1 | $69.4 | $(5.5) | $(21.3) | $1,057.7 | - **Goodwill increased to** **$848.8 million**, with **$18.4 million added from the Infinitium acquisition**. The **Money Transfer segment holds the largest portion of goodwill** (**$382.4 million**)[40](index=40&type=chunk) - **Estimated amortization expense** for **acquired intangible assets with finite lives** is **projected to be** **$12.4 million** for the remainder of 2024 and **$14.3 million** for 2025[40](index=40&type=chunk) [(7) Convertible Notes Receivable](index=12&type=section&id=(7)%20CONVERTIBLE%20NOTES%20RECEIVABLE) - Euronet loaned **$60.0 million** to Koin Mobile, LLC and Marker Trax, LLC, with **interest accruing at 2% per annum**, due October 18, 2028[41](index=41&type=chunk) - These notes are **convertible into preferred equity** of the borrowers upon certain events, including qualified equity financing, change in control, profitability, or at maturity[42](index=42&type=chunk) [(8) Accrued Expenses and Other Current Liabilities](index=12&type=section&id=(8)%20ACCRUED%20EXPENSES%20AND%20OTHER%20CURRENT%20LIABILITIES) Accrued Expenses and Other Current Liabilities Summary | Category | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :-------------------------- | :----------------------------- | :------------------------------ | | Accrued expenses | $297.7 | $254.8 | | Derivative liabilities | $26.3 | $39.1 | | Other tax payables | $19.1 | $69.1 | | Accrued payroll expenses | $57.6 | $74.4 | | Current capital lease obligations | $1.6 | $1.6 | | Total | $402.3 | $439.0 | - **Total accrued expenses and other current liabilities decreased from** **$439.0 million to $402.3 million**, primarily due to decreases in other tax payables and accrued payroll expenses[43](index=43&type=chunk) [(9) Deferred Revenues](index=12&type=section&id=(9)%20DEFERRED%20REVENUES) - **Deferred revenues increased slightly**, with **$71.4 million recognized** and **$70.6 million in new cash payments received** for unfulfilled performance obligations during Q1 2024[44](index=44&type=chunk) [(10) Debt Obligations](index=13&type=section&id=(10)%20DEBT%20OBLIGATIONS) Debt Obligations Summary | Debt Type | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :-------------------------------- | :----------------------------- | :------------------------------ | | Revolving credit agreement | $619.5 | $536.9 | | 0.75% Convertible Notes, due 2049 | $525.0 | $525.0 | | 1.375% Senior Notes, due 2026 | $646.9 | $662.2 | | Uncommitted credit agreements | $150.0 | $150.0 | | Total Debt Obligations | $1,941.6 | $1,874.4 | | Short-term debt obligations | $675.2 | $150.3 | | Long-term debt obligations | $1,258.8 | $1,715.4 | - **Total debt obligations increased to** **$1,941.6 million**. A **significant portion of debt**, including Convertible Notes, was **reclassified to short-term**, **increasing current maturities from** **$150.3 million to $675.2 million**[45](index=45&type=chunk)[167](index=167&type=chunk) - The **Credit Facility was amended** in October 2022, **increasing to $1.25 billion** and **extending expiration to October 2027**. As of March 31, 2024, **$579.0 million was available for borrowing**[46](index=46&type=chunk)[176](index=176&type=chunk) - **Convertible Senior Notes of** **$525.0 million mature in March 2049**, with a conversion price of **$188.73 per share**. Holders have repurchase options on specific dates, starting March 15, 2025[50](index=50&type=chunk)[177](index=177&type=chunk) - **Senior Notes of €600.0 million** (**$646.9 million**) accrue interest at **1.375%** and are due in May 2026[52](index=52&type=chunk)[178](index=178&type=chunk) [(11) Derivative Instruments and Hedging Activities](index=15&type=section&id=(11)%20DERIVATIVE%20INSTRUMENTS%20AND%20HEDGING%20ACTIVITIES) - Euronet uses **foreign currency derivative contracts** (forwards, cross-currency swaps) as **economic hedges** to **minimize exposure to foreign currency exchange risk**, primarily in Ria and xe operations[57](index=57&type=chunk)[191](index=191&type=chunk) - **Ria Operations use short-duration forward contracts** (up to 14 days) with a **notional value of** **$400.8 million** as of March 31, 2024, to offset FX fluctuations on money transfer funds[58](index=58&type=chunk)[192](index=192&type=chunk) - **xe Operations write derivative instruments to customers** and **hedge net currency risks with offsetting contracts**. The **aggregate notional amount of customer contracts was** **$1.1 billion** as of March 31, 2024[61](index=61&type=chunk)[63](index=63&type=chunk)[193](index=193&type=chunk) Derivative Instruments Summary | Derivative Type | Balance Sheet Location | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :-------------------------- | :--------------------- | :----------------------------- | :------------------------------ | | Foreign currency exchange contracts (Assets) | Other current assets | $27.5 | $50.0 | | Foreign currency exchange contracts (Liabilities) | Other current liabilities | $(26.3) | $(39.1) | - The company recorded a **net foreign currency exchange loss of** **$1.6 million** from Ria Operations derivative contracts for the three months ended March 31, 2024[68](index=68&type=chunk) [(12) Fair Value Measurements](index=17&type=section&id=(12)%20FAIR%20VALUE%20MEASUREMENTS) - **Fair value measurements are categorized into a three-level hierarchy** based on input observability, with **Level 1 for unadjusted quoted prices in active markets**, **Level 2 for observable inputs**, and **Level 3 for unobservable inputs**[70](index=70&type=chunk)[72](index=72&type=chunk) Fair Value of Financial Instruments | Financial Instrument | Classification | Level 2 Fair Value (March 31, 2024, in millions) | | :-------------------------- | :------------- | :--------------------------------------------- | | Foreign currency exchange contracts (Assets) | Other current assets | $27.5 | | Foreign currency exchange contracts (Liabilities) | Other current liabilities | $(26.3) | - The **fair values of Convertible Notes and Senior Notes are estimated using Level 2 inputs** (quoted prices in inactive markets). As of March 31, 2024, their fair values were **$538.0 million** and **$609.0 million**, respectively[74](index=74&type=chunk) [(13) Segment Information](index=18&type=section&id=(13)%20SEGMENT%20INFORMATION) - Euronet operates in three reportable segments: **EFT Processing** (ATM/POS services, software), **epay** (electronic payment products, prepaid mobile airtime, digital content), and **Money Transfer** (global consumer-to-consumer and account-to-account money transfers via Ria, IME, AFEX, xe, and Dandelion)[75](index=75&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) Segment Performance Overview | Segment | Q1 2024 Revenues (in millions) | Q1 2023 Revenues (in millions) | YoY Change (%) | Q1 2024 Operating Income (in millions) | Q1 2023 Operating Income (in millions) | YoY Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :------------- | :------------------------------------- | :------------------------------------- | :------------- | | EFT Processing | $217.2 | $192.2 | 13% | $21.5 | $6.9 | 212% | | epay | $257.1 | $237.4 | 8% | $26.6 | $27.5 | (3)% | | Money Transfer | $384.6 | $359.4 | 7% | $37.2 | $32.6 | 14% | | Consolidated Total | $857.0 | $787.2 | 9% | $64.0 | $45.6 | 40% | Segment Assets | Segment | Total Assets as of March 31, 2024 (in millions) | Total Assets as of December 31, 2023 (in millions) | | :-------------------------- | :-------------------------------------------- | :----------------------------------------------- | | EFT Processing | $2,554.3 | $2,442.0 | | epay | $1,008.0 | $1,204.9 | | Money Transfer | $1,829.4 | $1,921.2 | | Corporate Services, Eliminations and Other | $301.9 | $326.3 | | Total | $5,693.6 | $5,894.4 | - Revenues are disaggregated by segment and region, with **Europe being the largest revenue contributor** (**$474.9 million** in Q1 2024), followed by **North America** (**$237.8 million**) and **Asia Pacific** (**$104.9 million**)[81](index=81&type=chunk)[82](index=82&type=chunk) [(14) Income Taxes](index=20&type=section&id=(14)%20INCOME%20TAXES) Effective Income Tax Rate | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Effective Income Tax Rate | 37.9% | 46.5% | - The **effective income tax rate for Q1 2024 was** **37.9%**, higher than the **21% statutory rate**, mainly due to **U.S. deferred tax activity** and **higher local statutory tax rates in foreign jurisdictions**[83](index=83&type=chunk)[163](index=163&type=chunk) - The company does not expect a **material impact from OECD Pillar 2 global minimum tax guidelines** in 2024 based on current enacted legislation[84](index=84&type=chunk) [(15) Commitments](index=20&type=section&id=(15)%20COMMITMENTS) - As of March 31, 2024, Euronet had **$80.0 million in stand-by letters of credit/bank guarantees**, with **$3.9 million collateralized by cash deposits**[85](index=85&type=chunk) - **Off-balance sheet guarantees include** **$10.7 million for ATM network cash** and **$73.3 million in performance guarantees** for customer agreements[86](index=86&type=chunk) - The company provides various **indemnifications** in commercial agreements, including for **ATM damage/theft**, **computer system breaches**, **intellectual property infringement**, and **acquisition-related claims**[87](index=87&type=chunk)[92](index=92&type=chunk) [(16) Litigation and Contingencies](index=21&type=section&id=(16)%20LITIGATION%20AND%20CONTINGENCIES) - Euronet is periodically involved in legal and regulatory proceedings but currently believes **no individual or aggregate proceedings would have a material adverse effect on its financial condition or results of operations**[90](index=90&type=chunk)[199](index=199&type=chunk) - Liabilities are recorded when probable and estimable, and are reviewed quarterly[90](index=90&type=chunk)[199](index=199&type=chunk) [(17) Leases](index=22&type=section&id=(17)%20LEASES) - The company primarily uses **operating leases** for ATM sites, office spaces, retail stores, and equipment, recognizing **right-of-use assets** and **lease liabilities** based on the **present value of lease payments**[93](index=93&type=chunk)[94](index=94&type=chunk) Operating Lease Maturity Schedule | Lease Maturity | Operating Leases (in millions) | | :-------------------- | :----------------------------- | | Remainder of 2024 | $36.3 | | 2025 | $38.3 | | 2026 | $28.9 | | 2027 | $19.7 | | 2028 | $11.2 | | Thereafter | $17.4 | | Total Lease Payments | $151.8 | | Present Value of Lease Liabilities | $143.4 | Lease Expense Breakdown | Lease Expense Type | Q1 2024 (in millions) | Q1 2023 (in millions) | | :-------------------------- | :-------------------- | :-------------------- | | Operating lease expense | $12.6 | $12.5 | | Short-term and variable lease expense | $36.8 | $35.3 | | Total Lease Expense | $49.4 | $47.8 | - The **weighted-average remaining lease term** for operating leases is **4.4 years**, with a **weighted-average discount rate of** **2.7%** as of March 31, 2024[98](index=98&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Euronet's Q1 2024 financial condition, operations, revenue drivers, segment performance, liquidity, capital, and market risks [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS](index=24&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) - The report contains **forward-looking statements** about business plans, financial requirements, trends, capital adequacy, debt repayment, capital expenditures, potential outcomes of loss contingencies, acquisitions, business strategy, regulatory actions, accounting changes, technological advances, and projected costs and revenues[101](index=101&type=chunk)[104](index=104&type=chunk) - Investors are cautioned that **actual results may differ materially** due to various factors, including **global economic conditions**, **inflation**, **geopolitical conflicts**, **integration risks**, **technological developments**, **foreign currency fluctuations**, **system breaches**, **regulatory changes**, **competition**, and **cost of borrowing**[103](index=103&type=chunk) [OVERVIEW](index=25&type=section&id=OVERVIEW) - Euronet is a global financial technology and payments provider operating in **EFT Processing**, **epay**, and **Money Transfer segments**, with **74% of revenues denominated in non-U.S. dollar currencies**[106](index=106&type=chunk)[109](index=109&type=chunk) - Revenue sources include ATM management fees, transaction fees, commissions, and foreign currency exchange margin across its segments[110](index=110&type=chunk) - Key opportunities include **expanding market presence** through physical and digital assets, **developing value-added products**, and **leveraging cross-selling**. Challenges include **intense competition**, **regulatory compliance**, **managing growth**, and **inflationary pressures**[115](index=115&type=chunk)[116](index=116&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) [SEGMENT SUMMARY RESULTS OF OPERATIONS](index=28&type=section&id=SEGMENT%20SUMMARY%20RESULTS%20OF%20OPERATIONS) Segment Summary Results of Operations | Segment | Q1 2024 Revenues (in millions) | Q1 2023 Revenues (in millions) | YoY Change (%) | Q1 2024 Operating Income (in millions) | Q1 2023 Operating Income (in millions) | YoY Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :------------- | :------------------------------------- | :------------------------------------- | :------------- | | EFT Processing | $217.2 | $192.2 | 13% | $21.5 | $6.9 | 212% | | epay | $257.1 | $237.4 | 8% | $26.6 | $27.5 | (3)% | | Money Transfer | $384.6 | $359.4 | 7% | $37.2 | $32.6 | 14% | | Consolidated Total | $857.0 | $787.2 | 9% | $64.0 | $45.6 | 40% | - **EFT Processing showed the strongest operating income growth at** **212%**, while **epay experienced a slight decline of** **3%**[122](index=122&type=chunk) - **Fluctuations in foreign currency exchange rates significantly impact** reported revenues and expenses, with a **stronger U.S. dollar negatively affecting earnings** from non-U.S. operations[123](index=123&type=chunk) [COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023](index=30&type=section&id=COMPARISON%20OF%20OPERATING%20RESULTS%20FOR%20THE%20THREE%20MONTHS%20ENDED%20MARCH%2031%2C%202024%20AND%202023) [EFT PROCESSING SEGMENT](index=30&type=section&id=EFT%20PROCESSING%20SEGMENT) EFT Processing Segment Performance | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | YoY Change (%) | | :-------------------------------- | :-------------------- | :-------------------- | :------------- | | Total Revenues | $217.2 | $192.2 | 13% | | Operating Income | $21.5 | $6.9 | 212% | | Transactions Processed | 2,503 | 1,837 | 36% | | Active ATMs (as of March 31) | 49,290 | 47,430 | 4% | - **Revenue growth was primarily driven by increased domestic and international cash withdrawal transactions due to higher tourism**, and **growth in low-value POS and payment processing transactions** in Europe and Asia Pacific[126](index=126&type=chunk)[130](index=130&type=chunk) - **Operating income surged by** **212%** to **$21.5 million**, with **operating margin increasing from** **3.6% to 9.9%**, largely due to a **decrease in professional fees** and a **duty fee refund**[134](index=134&type=chunk) [EPAY SEGMENT](index=32&type=section&id=EPAY%20SEGMENT) epay Segment Performance | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | YoY Change (%) | | :-------------------------------- | :-------------------- | :-------------------- | :------------- | | Total Revenues | $257.1 | $237.4 | 8% | | Operating Income | $26.6 | $27.5 | (3)% | | Transactions Processed | 953 | 973 | (2)% | - **Revenue increased by** **8%** to **$257.1 million**, driven by continued expansion in mobile and digital branded payments, despite a **2% decrease in transactions processed**[137](index=137&type=chunk)[138](index=138&type=chunk) - **Operating income decreased by** **3%** to **$26.6 million**, and **operating margin declined from** **11.6% to 10.3%**, primarily due to a **shift in transaction mix** and **reduced promotional campaign activity** compared to the prior year[145](index=145&type=chunk) [MONEY TRANSFER SEGMENT](index=34&type=section&id=MONEY%20TRANSFER%20SEGMENT) Money Transfer Segment Performance | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | YoY Change (%) | | :-------------------------------- | :-------------------- | :-------------------- | :------------- | | Total Revenues | $384.6 | $359.4 | 7% | | Operating Income | $37.2 | $32.6 | 14% | | Transactions Processed | 40.6 | 37.5 | 8% | - **Revenue increased by** **7%** to **$384.6 million**, driven by **growth in international-originated**, **U.S. outbound**, and **direct-to-consumer digital transactions**, despite a slight decrease in revenue per transaction due to mix shift[148](index=148&type=chunk) - **Operating income grew by** **14%** to **$37.2 million**, with **operating margin improving from** **9.1% to 9.7%**, attributed to **effective cost management**[155](index=155&type=chunk) [CORPORATE SERVICES](index=35&type=section&id=CORPORATE%20SERVICES) Corporate Services Operating Expenses | Expense Category | Q1 2024 (in millions) | Q1 2023 (in millions) | YoY Change (%) | | :-------------------------- | :-------------------- | :-------------------- | :------------- | | Salaries and benefits | $18.1 | $18.7 | (3)% | | Selling, general and administrative | $3.1 | $2.6 | 19% | | Depreciation and amortization | $0.1 | $0.1 | 0% | | Total Operating Expenses | $21.3 | $21.4 | (0)% | - **Total Corporate operating expenses remained relatively stable at** **$21.3 million**, showing a **slight decrease of** **$0.1 million** year-over-year[157](index=157&type=chunk) [OTHER EXPENSE, NET](index=36&type=section&id=OTHER%20EXPENSE%2C%20NET) Other Expense, Net Breakdown | Expense Category | Q1 2024 (in millions) | Q1 2023 (in millions) | YoY Change (%) | | :-------------------------- | :-------------------- | :-------------------- | :------------- | | Interest income | $5.7 | $2.6 | 119% | | Interest expense | $(14.9) | $(10.1) | 48% | | Foreign currency exchange loss, net | $(12.5) | $(1.1) | 1,036% | | Other expense, net | $(21.8) | $(8.6) | 153% | - **Interest income more than doubled to** **$5.7 million** due to **higher interest rates on bank accounts**[159](index=159&type=chunk) - **Interest expense increased by** **48%** to **$14.9 million**, driven by **higher interest rates on the Credit Facility** and **uncommitted credit facility**[160](index=160&type=chunk) - **Net foreign currency exchange losses significantly increased to** **$12.5 million from $1.1 million**, reflecting **fluctuations in the U.S. dollar against other currencies**[162](index=162&type=chunk) [INCOME TAX EXPENSE](index=36&type=section&id=INCOME%20TAX%20EXPENSE) Income Tax Expense Rates | Metric | Q1 2024 | Q1 2023 | | :-------------------- | :------ | :------ | | Effective Income Tax Rate | 37.9% | 46.5% | - The **effective income tax rate decreased to** **37.9% from 46.5%**, but remained higher than the **21% statutory rate** due to foreign earnings subject to **higher local tax rates** and **U.S. deferred tax activity**[163](index=163&type=chunk) [NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS](index=37&type=section&id=NET%20INCOME%20(LOSS)%20ATTRIBUTABLE%20TO%20NONCONTROLLING%20INTERESTS) - **Noncontrolling interests represent the minority shareholders' portion of net income or loss** from consolidated subsidiaries that are not wholly owned, such as Movilcarga (epay - Spain), Euronet China (EFT - China), Euronet Pakistan (EFT - Pakistan), and Euronet Infinitium Solutions (EFT - India)[165](index=165&type=chunk) [NET INCOME (LOSS) ATTRIBUTABLE TO EURONET](index=37&type=section&id=NET%20INCOME%20(LOSS)%20ATTRIBUTABLE%20TO%20EURONET) Net Income Attributable to Euronet | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | YoY Change (in millions) | YoY Change (%) | | :-------------------------------- | :-------------------- | :-------------------- | :----------------------- | :------------- | | Net Income Attributable to Euronet | $26.2 | $20.1 | $6.1 | 30% | - The **30% increase in net income was primarily driven by a** **$69.8 million increase in revenues**, leading to a **$27.7 million increase in gross profit**, partially offset by higher salaries and benefits and increased foreign exchange losses[166](index=166&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=37&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Liquidity and Capital Resources Summary | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :-------------------------- | :----------------------------- | :------------------------------ | | Working Capital | $970.7 | $1,462.1 | | Current Assets to Liabilities Ratio | 1.33 | 1.54 | | Unrestricted Cash | $1,236.2 | $1,254.2 | | ATM Cash | $599.7 | $525.2 | | Available under Credit Facility | $579.0 | N/A | - **Working capital decreased by** **$491.4 million to $970.7 million**, primarily due to the **reclassification of convertible debt to current liabilities** and the **Infinitium acquisition**[167](index=167&type=chunk) - **Cash provided by operating activities significantly increased to** **$30.0 million** in Q1 2024 from **$3.3 million** in Q1 2023[170](index=170&type=chunk)[171](index=171&type=chunk) - **Cash used in investing activities increased to** **$96.8 million**, mainly due to the **$70.0 million Infinitium acquisition** and **$23.8 million in property and equipment purchases**[170](index=170&type=chunk)[172](index=172&type=chunk) - **Cash provided by financing activities was** **$81.3 million**, a **substantial improvement** from a **$4.4 million** outflow in Q1 2023, driven by **net borrowings** to fund ATM cash and the **Infinitium acquisition**[170](index=170&type=chunk)[173](index=173&type=chunk) - **Capital expenditures for 2024 are estimated to range from** **$90 million to $100 million**, primarily for ATM installations, POS terminals, and IT equipment[181](index=181&type=chunk) - **Inflation is increasing the company's cost structure** and impacting discretionary spending in epay and EFT segments, as well as send amounts in money transfer[182](index=182&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Details Euronet's exposure to market risks, specifically interest rate and foreign currency exchange rate risks, and mitigation strategies [Interest Rate Risk](index=40&type=section&id=Interest%20rate%20risk) - As of March 31, 2024, **total debt outstanding was** **$1,941.6 million**. Approximately **27%** (**$525.0 million**) is **fixed-rate Convertible Notes**, **32%** (**$619.5 million**) is **variable-rate Credit Facility borrowings**, **33%** (**$646.9 million**) is **fixed-rate Senior Notes**, and **8%** (**$150.0 million**) is **variable-rate uncommitted credit agreements**[185](index=185&type=chunk) - A **1% increase** in the applicable interest rate on variable-rate borrowings (Credit Facility) would result in approximately **$12.5 million in additional annual interest expense**[185](index=185&type=chunk) - **Excess cash is invested in short-term instruments**, meaning earnings on these investments fluctuate with underlying short-term interest rates[186](index=186&type=chunk) [Foreign Currency Exchange Rate Risk](index=40&type=section&id=Foreign%20currency%20exchange%20rate%20risk) - Approximately **74% of Q1 2024 revenues were generated in non-U.S. dollar countries**, making the company **vulnerable to fluctuations in exchange rates**, particularly for the **euro**, **British pound**, **Australian dollar**, **Polish zloty**, **Indian rupee**, **New Zealand dollar**, **Malaysian ringgit**, and **Hungarian forint**[187](index=187&type=chunk)[188](index=188&type=chunk) - A **10% fluctuation** in these foreign currency exchange rates is **estimated to have a combined annualized effect of** **$120 million to $130 million** on reported net income and working capital[188](index=188&type=chunk) - The company uses **derivatives**, primarily **foreign currency forward** and **cross-currency swap contracts**, as **economic hedges** to **minimize exposure to foreign currency exchange rates**, especially in its **money transfer and xe operations**[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms effectiveness of Euronet's disclosure controls and procedures, with no material changes in internal control over financial reporting for Q1 2024 - The CEO and CFO concluded that **disclosure controls and procedures were effective as of March 31, 2024**, providing **reasonable assurance** that required information is recorded, processed, summarized, and reported timely[195](index=195&type=chunk) - There have been **no material changes in internal control over financial reporting** during the three months ended March 31, 2024[196](index=196&type=chunk) [PART II—OTHER INFORMATION](index=41&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) Euronet is involved in ordinary course legal and regulatory proceedings, with no material adverse effect expected on financials or operations - The company is a party to legal or regulatory proceedings arising in the ordinary course of business[198](index=198&type=chunk) - Management believes there are **no current legal or regulatory proceedings** that would have a **material adverse effect on the company's consolidated financial condition or results of operations**[199](index=199&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023 - **No material changes to the risk factors** previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[201](index=201&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Euronet did not repurchase common stock under its publicly announced programs during Q1 2024 Share Repurchase Program Summary | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Programs (in millions) | | :-------------------------- | :------------------------------- | :--------------------------- | :------------------------------------------------------------------------------- | :-------------------------------------------------------------------------------------- | | January 1 - March 31, 2024 | - | $ - | - | $446.6 | - As of March 31, 2024, approximately **$96.6 million in value remained available under the 2022 repurchase program**, and **$350 million was available under the 2023 repurchase program**[203](index=203&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2024 - **No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements** during the fiscal quarter ended March 31, 2024[204](index=204&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including certifications and XBRL data, noting agreements are for informational purposes only - Exhibits include Section 302 and 906 certifications from the CEO and CFO, and XBRL formatted financial statements and notes[205](index=205&type=chunk) - Agreements referenced as exhibits are filed to provide information regarding their terms and are not intended to provide other factual information about the company or its business[207](index=207&type=chunk) [Signatures](index=44&type=section&id=Signatures) Contains required signatures of Euronet's CEO and CFO, certifying the report filing - The report is signed by Michael J. Brown, Chief Executive Officer, and Rick L. Weller, Chief Financial Officer, on May 3, 2024[211](index=211&type=chunk)[212](index=212&type=chunk)