What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2023-11-03 compared with 2023-08-02 · 175 added, 180 removed, 312 unchanged (53% of the section changed)

24 unchanged sentences

Actual results may materially differ from those in the forward-looking statements as a result of various factors, including, but not limited to, conditions in world financial markets and general economic conditions, including impacts from the COVID- 19 or other pandemics;

the war in the Ukraine and related economic sanctions;

the war in the Ukraine and the Middle East, and related economic sanctions;

our ability to successfully integrate any acquired operations;

39 unchanged sentences

Each operating segment’s sources of revenues are described below.

EFT Processing Segment — Revenues in the EFT Processing Segment, which represented approximately 30% and 27% of total consolidated revenues for the three and six months ended June 30, 2023 are derived from fees charged for transactions made by cardholders on our proprietary network of ATMs, fixed management fees and transaction fees we charge to customers for operating ATMs and processing debit and credit cards under outsourcing and cross-border acquiring agreements, foreign currency exchange margin on DCC transactions, domestic and international surcharge, foreign currency dispensing and other value added services such as advertising, prepaid telecommunication recharges, bill payment, and money transfers provided over ATMs.

EFT Processing Segment — Revenues in the EFT Processing Segment, which represented approximately 35% and 30% of total consolidated revenues for the three and nine months ended September 30, 2023 are derived from fees charged for transactions made by cardholders on our proprietary network of ATMs, fixed management fees and transaction fees we charge to customers for operating ATMs and processing debit and credit cards under outsourcing and cross-border acquiring agreements, foreign currency exchange margin on DCC transactions, domestic and international surcharge, foreign currency dispensing and other value added services such as advertising, prepaid telecommunication recharges, bill payment, and money transfers provided over ATMs.

Revenues in this segment are also derived from cardless payment, banknote recycling, tax refund services, license fees, professional services and maintenance fees for proprietary applicati on software and sales of related hardware.

epay Segment — Revenues in the epay Segment, which represented approximately 28% and 29% o f total consolidated revenues for the three and six months ended June 30, 2023 a re primarily derived from commissions earned from the distribution of electronic content, vouchers, and physical gifts and commissions or processing fees rec eived from mobile phone operators for the processing and distribution of prepaid mobile airtime.

Branded payments, which includes the distribution of digital media content, w ere 66% of epay Segment revenues for both the three and six months ended June 30, 2023.

epay Segment — Revenues in the epay Segment, which represented approximately 26% and 28% o f total consolidated revenues for the three and nine months ended September 30, 2023 a re primarily derived from commissions earned from the distribution of electronic content, vouchers, and physical gifts and commissions or processing fees rec eived from mobile phone operators for the processing and distribution of prepaid mobile airtime.

Branded payments, which includes the distribution of digital media content, w ere 66% of epay Segment revenues for both the three and nine months ended September 30, 2023 .

Branded payments include digital content such as music, games and software, as well as, other products including prepaid long distance calling card plans, prepaid Internet plans, prepaid debit cards, gift cards, vouchers, transport payments, lottery payments, bill payment, and money transfer.

Money Transfer Segment — Revenues in the Money Transfer Segment, which represented approximately 42% and 44% of total consolidated revenues for the three and six months ended June 30, 2023 , respectively, are primarily derived from transaction fees, as well as the margin earned from purchasing foreign currency at wholesale exchange rates and selling the foreign currency to customers at retail exchange rates.

Money Transfer Segment — Revenues in the Money Transfer Segment, which represented approximately 39% and 42% of total consolidated revenues for the three and nine months ended September 30, 2023 , respectively, are primarily derived from transaction fees, as well as the margin earned from purchasing foreign currency at wholesale exchange rates and selling the foreign currency to customers at retail exchange rates.

We have a sending network in place comprised of agents, customer service representatives, Company-owned stores, our websites and mobile applications, along with a worldwide network of correspondent agents, consisting primarily of financial institutions in the transfer destination countries.

Sending and correspondent agents each earn fees for cash collection and distribution services, which are recognized as direct operating costs at the time of sale.

We offer a money transfer product called Walmart-2-Walmart Money Transfer Service which allows customers to transfer money to and from Walmart stores in the U.S.

Our Ria business executes the transfers with Walmart serving as both the sending agent and payout correspondent.

Ria earns a lower margin from these transactions than its traditional money transfers;

however, the arrangement has added a significant number of transactions to Ria's business.

The agreement with Walmart establishes Ria as the only party through which Walmart will sell U.S.

domestic money transfers branded with Walmart marks.

The agreement is effective until April 2026.

Thereafter, it will automatically renew for subsequent one -year terms unless either party provides notice to the contrary.

The agreement imposes certain obligations on each party, the most significant being service level requirements by Ria and money transfer compliance requirements by Walmart.

Any violation of these requirements by Ria could result in an obligation to indemnify Walmart or termination of the contract by Walmart.

However, the agreement allows the parties to resolve disputes by mutual agreement without termination of the agreement.

Corporate Services, Eliminations and Other — In addition to operating in our principal operating segments described above, our “Corporate Services, Eliminations and Other” category includes non-operating activity, certain inter-segment eliminations and the cost of providing corporate and other administrative services to the operating segments, including most share-based compensation expense.

12 unchanged sentences

The EFT Segment is also dependent to a large degree on consumer travel patterns over which we have no control.

Although international travel is returning to pre-pandemic levels in many parts of the globe, the war in Ukraine and related sanctions on Russia are negatively affecting the number of individuals traveling to and from Ukraine and the countries that border Ukraine and in many locations where we have ATMs .

Although international travel is returning to pre-pandemic levels in many parts of the globe, the war in Ukraine and the Middle East, and related sanctions are negatively affecting the number of individuals in many locations where we have ATMs .

Our EFT revenues are dependent on tourism within, and into Europe.

Inflation is impacting our business as travelers have less cash available to spend on vacations.

2 ) The epay Segment opportunities include renewing existing and negotiating new agreements in target markets in which we operate, primarily with digital content providers, mobile operators, financial institutions and retailers.

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SEGMENT SUMMARY RESULTS OF OPERATIONS

Revenues and operating income by segment for the three and six months ended June 30, 2023 and 2022 are summarized in the tables below:

Revenues for the Three Months Ended June 30,

Revenues and operating income by segment for the three and nine months ended September 30, 2023 and 2022 are summarized in the tables below:

Revenues for the Three Months Ended

September 30,

Year-over-Year Change

Revenues for the Six Months Ended June 30,

Revenues for the Nine Months Ended

September 30,

Year-over-Year Change

3 unchanged sentences

Corporate services, eliminations and other

Operating Income (Loss) for the Three Months Ended June 30,

Operating Income (Loss) for the Three Months Ended September 30,

Year-over-Year Change

Operating Income (Loss) for the Six Months Ended June 30,

Operating Income (Loss) for the Nine Months Ended September 30,

Year-over-Year Change

2 unchanged sentences

Increase (Decrease)

EFT Processing

11 unchanged sentences

Average Translation Rate

Three Months Ended June 30,

Three Months Ended September 30,

Average Translation Rate

Six Months Ended June 30,

Nine Months Ended September 30,

Currency (dollars per foreign currency)

6 unchanged sentences

New Zealand dollar

COMPARISON OF OPERATING RESULTS FOR THE THREE ANDSIX MONTHS ENDED JUNE 30 , 2023 AND 2022

COMPARISON OF OPERATING RESULTS FOR THE THREE ANDSIX MONTHS ENDED SEPTEMBER 30 , 2023 AND 2022

EFT PROCESSING SEGMENT

The following table summarizes the results of operations for our EFT Processing Segment for the three and six months ended June 30, 2023 and 2022 :

Three Months Ended June 30,

The following table summarizes the results of operations for our EFT Processing Segment for the three and nine months ended September 30, 2023 and 2022 :

Three Months Ended September 30,

Year-over-Year Change

Six Months Ended June 30,

Nine Months Ended September 30,

Year-over-Year Change

11 unchanged sentences

Transactions processed (millions)

Active ATMs as of June 30,

Active ATMs as of September 30,

Average Active ATMs

EFT Processing Segment total revenues were $282.4 million for the three months ended June 30, 2023 , an increase of $33.4 million or 13 % compared to the same period in 2022 .

EFT Processing Segment total revenues were $474.6 million for the six months ended June 30, 2023, an increase of $80.0 million or 20%.

The increase in revenues was primarily due to the increase in domestic and international cash withdrawal transactions resulting from the reduction of travel restrictions across Europe, the increase in low-value point-of-sale transactions in Europe and low-value payment processing transactions in Asia Pacific.

Fluctuations in foreign currency exchange rates increased revenues by approximately $0.8 m illion and $0.4 million for the three and six months ended June 30, 2023 compared to the same period in 2022 .

Average monthly revenues per ATM increased to $1,872 for the three months ended June 30, 2023 compared to $ 1,696 for the same period in 2022 .

Average monthly revenues per ATM increased to $1,638 for the six months ended June 30, 2023 compared to $1,425 for the same period in 2022.

Revenues per transaction decreased to $0.14 for the three months ended June 30, 2023 compared to $ 0.16 for the same period in 2022 .

The increase in average monthly revenues per ATM was primarily due to the increase in domestic and international cash withdrawal transactions resulting from increased travel across Europe, partially offset by the increase in volume of low-value point-of-sale transactions in Europe and low-value payment processing transactions in Asia Pacific, which also contributed to the decrease in revenues per transaction.

EFT Processing Segment total revenues were $ 345.8 million for the three months ended September 30, 2023 , an increase of $ 26.3 million or 8 % compared to the same period in 2022 .

EFT Processing Segment total revenues were $ 820.4 million for the nine months ended September 30, 2023 , an increase of $ 106.3 million or 15 %.

The increase in revenues was primarily due to the increase in domestic and international cash withdrawal transactions resulting from the increase in travel bringing more tourists, the increase in low-value point-of-sale transactions in Europe and low-value payment processing transactions in Asia Pacific.

Fluctuations in foreign currency exchange rates increased revenues by approximately $ 19.3 million and $ 1.2 million for the three and nine months ended September 30, 2023 compared to the same period in 2022 .

Average monthly revenues per ATM increased to $ 2,222 for the three months ended September 30, 2023 compared to $ 2,113 for the same period in 2022 .

Average monthly revenues per ATM increased to $ 1,842 for the nine months ended September 30, 2023 compared to $ 1,668 for the same period in 2022 .

Revenues per transaction decreased to $ 0.15 for the three months ended September 30, 2023 compared to $ 0.18 for the same period in 2022 .

Revenues per transaction decreased to $ 0.13 for the nine months ended September 30, 2023 compared to $ 0.15 for the same period in 2022 .

The increase in average monthly revenues per ATM was primarily due to an increase in POS acquiring transactions in Europe and increases in low value payment processing transactions in India, partially offset by a decrease in our most profitable ATM transactions as European travelers traveling within Europe were negatively impacted by inflation.

The decreases in revenues per transaction were primarily due to the decreases of our most profitable international transactions driven by a decline in Croatia due to the switch from kuna to the euro at the beginning of the year and inflationary pressures on travel budgets in Europe.

Direct operating costs

EFT Processing Segment direct operating costs were $142.1 million for the three months ended June 30, 2023 , an increase of $18.3 million or 15 % compared to the same period in 2022 .

EFT Processing Segment direct operating costs were $261.1 million for the six months ended June 30, 2023 , an increase of $44.0 million or 20 % compared to the same period in 2022 .

EFT Processing Segment direct operating costs were $ 165.7 million for the three months ended September 30, 2023 , an increase of $ 27.9 million or 20 % compared to the same period in 2022 .

EFT Processing Segment direct operating costs were $ 426.8 million for the nine months ended September 30, 2023 , an increase of $ 71.9 million or 20 % compared to the same period in 2022 .

Direct operating costs primarily consist of site rental fees, cash delivery costs, cash supply costs, maintenance, insurance, telecommunications, payment scheme processing fees, data center operations-related personnel, as well as the processing centers’ facility-related costs and other processing center-related expenses and commissions paid to retail merchants, banks and card processors.

The increase in direct costs was primarily due to the increase in domestic and international cash withdrawal transactions resulting from the increase in travel across Europe, the increase in low-value point-of-sale transactions in Europe and low-value payment processing transactions in Asia Pacific.

Fluctuations in foreign currency exchange rates decreased direct operating costs by approximately $1.0 million and $0.1 million for the three and six months ended June 30, 2023 compared to the same period in 2022 .

Gross profit, which is calculated as revenues less direct operating costs, was $140.3 million for the three months ended June 30, 2023, an increase of $15.1 million or 12% compared to $125.2million for the same period in 2022.

Gross profit, was $213.5 million for the six months ended June 30, 2023, an increase of $36.0 million or 20% compared to $177.5 million for the same period in 2022.

Gross profit as a percentage of revenues (“gross margin”) decreased to 49.7% and 45.0% for the three and six months ended June 30, 2023, compared to 50.3% and 45.0% for the same periods in 2022.

The increase in gross profit was primarily due to the incremental volume of transactions that were processed on our network relative to the fixed costs incurred, and the higher number of high value and high margin DCC transactions due to increased travel.

The increase in direct costs was primarily due to the increase in number of ATMs, and an increase in high volume low value cash transactions in Asia Pacific.

Fluctuations in foreign currency exchange rates increased direct operating costs by approximately $9.7 million and $0.3 million for the three and nine months ended September 30, 2023 compared to the same period in 2022 .

Gross profit, which is calculated as revenues less direct operating costs, was $ 180.1 million for the three months ended September 30, 2023 , a decrease of $ 1.6 million or 1 % compared to $ 181.7 million for the same period in 2022 .

Gross profit was $ 393.6 million for the nine months ended September 30, 2023 , an increase of $ 34.4 million or 10 % compared to $ 359.2 million for the same period in 2022.

Gross profit as a percentage of revenues (“gross margin”) decreased to 52.1% and 48.0% for the three and nine months ended September 30, 2023 , compared to 56.9% and 50.3% for the same periods in 2022 .

Salaries and benefits

Salaries and benefits expenses were $30.8 million for the three months ended June 30, 2023, an increase of $3.1 million or 11% c ompared to the same period in 2022 .

Salaries and benefits expenses were $58.3 million for the six months ended June 30, 2023, an increase of $5.4 million or 10% c ompared to the same period in 2022 .

The increase is primarily due to an increase in salaries and headcount to support the growth of the business.

Fluctuations in foreign currency exchange rates in the countries in which we employ our workforce had no significant impact.

As a percentage of revenues, these expenses decreased to 10.9 % and 12.3% for the three and six months ended June 30, 2023 , compared to 11.1% and 13.4% for the same periods in 2022 .

Salaries and benefits expenses were $ 35.2 million for the three months ended September 30, 2023 , an increase of $ 5.2 million or 17 % c ompared to the same period in 2022 .

Salaries and benefits expenses were $ 93.5 million for the nine months ended September 30, 2023 , an increase of $ 10.6 million or 13 % c ompared to the same period in 2022 .

The increase is primarily due to an increase in headcount to support the growth of the business and salary increases due to inflationary pressures.

Fluctuations in foreign currency exchange rates in the countries in which we employ our workforce increased salaries by approximately $2.1 million for the three months ended September 30, 2023, with no impact for the nine months ended September 30, 2023.

As a percentage of revenues, salary expense increased and decreased, respectively to 10.2 % and 11.4 % for the three and nine months ended September 30, 2023 , compared to 9.4 % and 11.6 % for the same periods in 2022 .

Selling, general and administrative

Selling, general and administrative expenses were $16.6 million for the three months ended June 30, 2023 , a decrease of $0.4 million or 2% compared to the same period in 2022 .

The decrease was primarily due to a recovery of tourism in Europe compared to the prior year.

Selling, general and administrative expenses were $32.7 million for the six months ended June 30, 2023 , an increase of $4.6 million or 16% compared to the same period in 2022 .

Selling, general and administrative expenses were $ 16.2 million for the three months ended September 30, 2023 , an increase of $ 4.0 million or 33 % compared to the same period in 2022 .

Selling, general and administrative expenses were $ 48.9 million for the nine months ended September 30, 2023 , an increase of $ 8.6 million or 21 % compared to the same period in 2022 .

The increase was primarily due to an increase in professional fees.

As a percentage of revenues, these expenses decreased to 5.9 % and 6.9% for the three and six months ended June 30, 2023 , compared to 6.8 % and 7.1% for the same periods in 2022 .

As a percentage of revenues, these expenses increased to 4.7 % and 6.0 % for the three and nine months ended September 30, 2023 , compared to 3.8 % and 5.6 % for the same periods in 2022 .

Depreciation and amortization

Depreciation and amortization expenses were $23.8 million for the three months ended June 30, 2023, a decrease of $1.9 million or 7% compared to the same period in 2022 .

Depreciation and amortization expenses were $46.5 million for the six months ended June 30, 2023, a decrease of $1.5 million or 3% compared to the same period in 2022 .

As a percentage of revenues, these expenses decreased to 8.4 % and 9.8% for the three and six months ended June 30, 2023 , compared to 10.3 % and 12.2% for the same periods in 2022 .

Depreciation and amortization expenses were $ 23.9 million for the three months ended September 30, 2023 , an increase of $ 0.8 million or 3 % compared to the same period in 2022 .

Depreciation and amortization expenses were $ 70.4 million for the nine months ended September 30, 2023 , a decrease of $ 0.7 million or 1 % compared to the same period in 2022 .

As a percentage of revenues, these expenses decreased to 6.9 % and 8.6 % for the three and nine months ended September 30, 2023 , compared to 7.2 % and 10.0 % for the same periods in 2022 .

Operating income

EFT Processing Segment had operating income of $69.1 million for the three months ended June 30, 2023, an increase of $14.3 million or 26% c ompared to the same period in 2022 .

EFT Processing Segment had operating income of $76.0 million for the six months ended June 30, 2023, an increase of $27.5 million or 57% compared to the same period in 2022 .

O perating income as a percentage of revenues (“operating margin”) increased to 24.5% and 16.0% for the three and six months ended June 30, 2023 , compared to 22.0% and 12.3% for the same periods in 2022 .

The increase in operating income and improved operating margin were primarily due to increased volumes processed on our network, and associated revenues, compared to the same periods in 2022.

The following table presents the results of operations for the three and six months ended June 30, 2023 and 2022 for our epay Segment:

Three Months Ended June 30,

EFT Processing Segment had operating income of $ 104.8 million for the three months ended September 30, 2023 , a decrease of $ 11.6 million or 10 % c ompared to the same period in 2022 .

EFT Processing Segment had operating income of $ 180.8 million for the nine months ended September 30, 2023 , an increase of $ 15.9 million or 10 % compared to the same period in 2022 .

O perating income as a percentage of revenues (“operating margin”) decreased to 30.3 % and 22.0 % for the three and nine months ended September 30, 2023 , compared to 36.4 % and 23.1 % for the same periods in 2022 .

The decrease in operating income and operating margin were the result of decreases in our most profitable international transactions driven by a decline in Croatia due to the switch from kuna to the euro at the beginning of the year and inflationary pressures on travel budgets in Europe, compared to the same periods in 2022 .

The following table presents the results of operations for the three and nine months ended September 30, 2023 and 2022 for our epay Segment:

Three Months Ended September 30,

Year-over-Year Change

Six Months Ended June 30,

Nine Months Ended September 30,

Year-over-Year Change

13 unchanged sentences

Transactions proce ssed (mi llions)

epay Segment total revenues were $263.8 million for the three months ended June 30, 2023 , an increase of $36.1 million or 16% compared to the same period in 2022 .

epay Segment total revenues were $501.2 million for the six months ended June 30, 2023 , an increase of $37.7 million or 8% compared to the same period in 2022 .

The increase in revenue for the three months ended June 30, 2023 was driven by continued expansion in mobile and digital branded payments.

Fluctuations in foreign currency exchange rates increased revenue by approximately $1.3 and $0.2 million for the three and six months ended June 30, 2023 , compared to the same periods in 2022.

Revenue per transaction increased to $0.27 and $0.26 for the three and six months ended June 30, 2023 , respectively, compared to $0.20 and $0.23 for the same periods in 2022 .

The increase in revenue per transaction was primarily due to the decrease in the number of mobile transactions processed in a region where we generally earn lower revenues per transaction for the three and six month periods.

epay Segment total revenues were $ 264.5 million for the three months ended September 30, 2023 , an increase of $ 15.6 million or 6 % compared to the same period in 2022 .

epay Segment total revenues were $ 765.7 million for the nine months ended September 30, 2023 , an increase of $ 53.3 million or 7 % compared to the same period in 2022 .

The increase in revenue for the three months ended September 30, 2023 was driven by continued expansion in mobile and digital branded payments .

Fluctuations in foreign currency exchange rates increased revenue by approximately $ 11.9 million for the three months ended September 30, 2023 , compared to the same period in 2022 .

Fluctuations in foreign currency exchange rates did not impact the nine months ended September 30, 2023.

Revenue per transaction increased to $ 0.29 and $ 0.27 for the three and nine months ended September 30, 2023 , respectively, compared to $ 0.27 and $ 0.25 for the same periods in 2022 .

The increase in revenue per transaction was primarily due to the rise in account activations, coupled with improved margins, reduced costs, and a boost in sales volume, offset by declines in promotional campaigns delivered on behalf of our retail partners that were recognized in the prior year that did not repeat in the third quarter this year.

Direct operating costs

epay Segment direct operating costs were $204.2 million for the three months ended June 30, 2023 , an increase of $30.5 million or 18% compared to the same period in 2022 .

epay Segment direct operating costs were $382.3 million for the six months ended June 30, 2023 , an increase of $30.3 million or 9% compared to the same period in 2022 .

epay Segment direct operating costs were $ 201.3 million for the three months ended September 30, 2023 , an increase of $ 11.2 million or 6 % compared to the same period in 2022 .

epay Segment direct operating costs were $ 583.6 million for the nine months ended September 30, 2023 , an increase of $ 41.5 million or 8 % compared to the same period in 2022 .

Direct operating costs primarily consist of the commissions paid to retail merchants for the distribution and sale of prepaid mobile airtime and other prepaid products, expenses incurred to operate POS terminals and the cost of vouchers sold and physical gifts fulfilled.

Foreign currency exchange rates increased direct operating costs by $1.2 million and $0.2 million for the three and six months ended June 30, 2023 compared to the same periods in 2022 .

Gross profit was $59.6 million for the three months ended June 30, 2023 , an increase of $5.6 million or 10% compared to $54.0 million for the same period in 2022 .

Gross profit was $118.9 million for the six months ended June 30, 2023 , an increase of $7.4 million or 7% compared to $111.5 million for the same period in 2022 .

Gross margin decreased to 22.6% and 23.7% for the three and six months ended June 30, 2023 , compared to 23.7% and 24.1% for the same periods in 2022 .

The decrease in gross profit and gross margin was primarily due to the shift in the mix of transactions processed .

Foreign currency exchange rates increased direct operating costs by $9.4 million and $0.2 million for the three and nine months ended September 30, 2023 compared to the same periods in 2022 .

Gross profit was $ 63.2 million for the three months ended September 30, 2023 , an increase of $ 4.4 million or 7 % compared to $ 58.8 million for the same period in 2022 .

Gross profit was $ 182.1 million for the nine months ended September 30, 2023 , an increase of $ 11.8 million or 7 % compared to $ 170.3 million for the same period in 2022 .

Gross margin increased and decreased, respectively to 23.9% and 23.8% for the three and nine months ended September 30, 2023 , compared to 23.6% and 23.9% for the same periods in 2022 .

The change in gross profit and gross margin was primarily due to the shift in the mix of transactions processed .

Salaries and benefits

Salaries and benefits expenses were $22.0 million for the three months ended June 30, 2023 , an increase of $2.2 million or 11% compared to the same period in 2022 .

Salaries and benefits expenses were $43.4 million for the six months ended June 30, 2023 , an increase of $3.4 million or 9% compared to the same period in 2022 .

The fluctuations in salaries and benefits were driven by an increase in salaries and headcount to support the growth of the business.

As a percentage of revenues, these expenses decreased and increased to 8.3 % and 8.7%, respectively, for the three and six months ended June 30, 2023, compared to 8.7% and 8.6% for the same periods in 2022 .

Salaries and benefits expenses were $ 23.4 million for the three months ended September 30, 2023 , an increase of $ 3.6 million or 18 % compared to the same period in 2022 .

Salaries and benefits expenses were $ 66.8 million for the nine months ended September 30, 2023 , an increase of $ 7.0 million or 12 % compared to the same period in 2022 .

The fluctuations in salaries and benefits were driven by an increase in headcount to support the growth of the business and salary increases due to inflationary pressures.

As a percentage of revenues, these expenses increased to 8.8 % and 8.7 %, respectively, for the three and nine months ended September 30, 2023 , compared to 8.0 % and 8.4 % for the same periods in 2022 .

Fluctuations in foreign currency exchange rates in the countries in which we employ our workforce increased salaries by approximately $1.1 million for the three months ended September 30, 2023 as compared to the same period in 2022.

Fluctuations in foreign currency exchange rates did not impact the nine months ended September 30, 2023, as compared to the same period in 2022.

Selling, general and administrative

Selling, general and administrative expenses were $9.1 million for the three months ended June 30, 2023 , an increase of $0.8 million or 10 % compared to the same period in 2022 .

Selling, general and administrative expenses were $17.9 million for the six months ended June 30, 2023 , an increase of $0.2 million or 1 % compared to the same periods in 2022 .

As a percentage of revenues, these expenses decreased to 3.4 % and 3.6% for the three and six months ended June 30, 2023 , compared to 3.6 % and 3.8% for the same periods in 2022 .

Selling, general and administrative expenses were $ 9.7 million for the three months ended September 30, 2023 , an increase of $ 1.2 million or 14 % compared to the same period in 2022 .

Selling, general and administrative expenses were $ 27.6 million for the nine months ended September 30, 2023 , an increase of $ 1.4 million or 5 % compared to the same periods in 2022 .

As a percentage of revenues, these expenses increased and decreased, respectively to 3.7 % and 3.6 % for the three and nine months ended September 30, 2023 , compared to 3.4 % and 3.7 % for the same periods in 2022 .

Depreciation and amortization

Depreciation and amortization expenses were $1.7 million for the three months ended June 30, 2023 , an increase of $0.1 million or 6 % compared to the same period in 2022 .

Depreciation and amortization expenses were $3.3 million for both the six months ended June 30, 2023 and 2022 .

Depreciation and amortization expenses were $ 1.8 million for the three months ended September 30, 2023 , an increase of $ 0.4 million or 29 % compared to the same period in 2022 .

Depreciation and amortization expenses were $ 5.1 million for the nine months ended September 30, 2023, an increase of $0.4 million compared to the same period in 2022 .

Depreciation and amortization expense primarily represents depreciation of POS terminals we install in retail stores and amortization of acquired intangible assets.

As a percentage of revenues, these expenses were 0.6% and 0.7% for the three and six months ended June 30, 2023 , respectively, compared to 0.7% and 0.7% for the same periods in 2022.

As a percentage of revenues, these expenses were 0.7 % and 0.7 % for the three and nine months ended September 30, 2023 , respectively, compared to 0.6 % and 0.7 % for the same periods in 2022 .

Operating income

epay Segment operating income was $26.8 million for the three months ended June 30, 2023 , an increase of $2.5 million or 10% c ompared to the same period in 2022 .

epay Segment operating income was $54.3 million for the six months ended June 30, 2023 , an increase of $3.8 million or 8% c ompared to the same period in 2022 .

Operating margin decreased to 10.2 % and 10.8 % for the three and six months ended June 30, 2023 , compared to 10.7 % and 10.9% for the same periods in 2022 .

Operating income per transaction was $ 0.03 f or both the three and six m onths ended June 30, 2023, respectively compared to $0.02 and $0.03 for same periods in 2022 .

The changes in operating income and operating margin for the three and six months ended June 30, 2023 compared to the same periods in 2022 were primarily due to the shift in the mix of transactions processed .

epay Segment operating income was $ 28.3 million for the three months ended September 30, 2023 , a decrease of $ 0.8 million or 3 % compared to the same period in 2022 .

epay Segment operating income was $ 82.6 million for the nine months ended September 30, 2023 , an increase of $ 3.0 million or 4 % c ompared to the same period in 2022 .

Operating margin decreased to 10.7 % and 10.8 % for the three and nine months ended September 30, 2023 , compared to 11.7 % and 11.2 % for the same periods in 2022 .

Operating income per transaction was $ 0.03 f or both the three and nine m onths ended September 30, 2023 compared to $ 0.03 for both the same periods in 2022 .

Changes in operating income and operating margin for the three and nine months ended September 30, 2023 compared to the same periods in 2022 were primarily due to the shift in the mix of transactions processed and a decline in the promotional campaign activity this quarter compared to the same period last year.

MONEY TRANSFER SEGMENT

The following table presents the results of operations for the three and six months ended June 30, 2023 and 2022 for the Money Transfer Segment:

Three Months Ended June 30,

The following table presents the results of operations for the three and nine months ended September 30, 2023 and 2022 for the Money Transfer Segment:

Three Months Ended September 30,

Year-over-Year Change

Six Months Ended June 30,

Nine Months Ended September 30,

Year-over-Year Change

13 unchanged sentences

Transactions processed (millions)

Money Transfer Segment total revenues were $394.8 million for the three months ended June 30, 2023 , an increase of $26.3 million or 7 % compared to the same period in 2022 .

Money Transfer Segment total revenues were $754.2 million for the six months ended June 30, 2023 , an increase of $46.7 million or 7 % compared to the same period in 2022 .

Money Transfer Segment total revenues were $ 395.9 million for the three months ended September 30, 2023 , an increase of $ 31.0 million or 8 % compared to the same period in 2022 .

Money Transfer Segment total revenues were $ 1,150.1 million for the nine months ended September 30, 2023 , an increase of $ 77.7 million or 7 % compared to the same period in 2022 .

The increase in revenues was primarily due to an increase in international-originated money transfers, U.S.

1 unchanged sentence

domestic transactions.

Revenues per transaction decreased to $9.61 and $9.60 for the three and six months ended June 30, 2023 , compared to $9.88 and $10.01 for the same period in 2022 due to a shift in the mix of transactions processed.

Fluctuations in foreign currency exchange rates increased revenues by approximately $1.0 million and $34 thousand for the three and six months ended June 30, 2023, compared to the same periods in 2022 .

Revenues per transaction decreased to $ 9.75 and $ 9.65 for the three and nine months ended September 30, 2023 , compared to $ 9.68 and $ 9.88 for the same period in 2022 due to a shift in the mix of transactions processed.

Fluctuations in foreign currency exchange rates increased revenues by approximately $ 10.8 million for the three months ended September 30, 2023 , compared to the same period in 2022 .

Fluctuations in foreign currency exchange rates did not impact the nine months ended September 30, 2023, compared to the same period in 2022.

Direct operating costs

Money Transfer Segment direct operating costs were $213.7 million for the three months ended June 30, 2023 , an increase of 8.7 million or 4% c ompared to the same period in 2022 .

Money Transfer Segment direct operating costs were $410.0 million for the six months ended June 30, 2023 , an increase of $16.5 million or 4 % compared to the same period in 2022 .

Money Transfer Segment direct operating costs were $ 211.9 million for the three months ended September 30, 2023 , an increase of 11.8 million or 6 % c ompared to the same period in 2022 .

Money Transfer Segment direct operating costs were $ 621.9 million for the nine months ended September 30, 2023 , an increase of $ 28.3 million or 5 % compared to the same period in 2022 .

Direct operating costs primarily consist of commissions paid to agents who originate money transfers on our behalf and correspondent agents who disburse funds to the customers’ destination beneficiaries, together with less significant costs, such as bank depository fees.

1 unchanged sentence

outbound money transfer transactions.

Gross profit was $181.1 million for the three months ended June 30, 2023 , an increase of $17.6 million or 11% compared to $163.5 million for the same period in 2022 .

Gross profit was $344.2 million for the six months ended June 30, 2023 , an increase of $30.2 million or 10% compared to $314.0 million for the same period in 2022 .

Gross margin increased to 45.9% and 45.6% for the three and six months ended June 30, 2023, compared to 44.4% and 44.4% for the same periods in 2022.

The increase in gross profit and gross margin was primarily due t o increases in international-originated money transfers, U.S.

outbound money transfers and direct-to-consumer digital transactions .

Gross profit was $ 184.0 million for the three months ended September 30, 2023 , an increase of $ 19.2 million or 12 % compared to $ 164.8 million for the same period in 2022 .

Gross profit was $ 528.2 million for the nine months ended September 30, 2023 , an increase of $ 49.4 million or 10 % compared to $ 478.8 million for the same period in 2022 .

Gross margin increased to 46.5% and 45.9% for the three and nine months ended September 30, 2023 , compared to 45.2% and 44.6% for the same periods in 2022 .

The increase in gross profit and gross margin was primarily due t.

o increases in international-originated money transfers, U.S.

outbound transactions and direct-to-consumer digital transactions.

Salaries and benefits

Salaries and benefits expenses were $78.5 million for the three months ended June 30, 2023, an increase of $10.5 million or 15% compared to the same period in 2022 .

Salaries and benefits expenses were $152.8 million for the six months ended June 30, 2023, an increase of $17.5 million or 13% compared to the same period in 2022 .

The increase in salaries and benefits was primarily driven by an increase in salaries and headcount to support the growth of the business.

As a percentage of revenues, these expenses increased to 19.9 % and 20.3% for the three and six months ended June 30, 2023 , compared to 18.5% and 19.1%, for the same periods in 2022 .

Salaries and benefits expenses were $ 77.6 million for the three months ended September 30, 2023 , an increase of $ 8.0 million or 11 % compared to the same period in 2022 .

Salaries and benefits expenses were $ 230.4 million for the nine months ended September 30, 2023 , an increase of $ 25.5 million or 12 % compared to the same period in 2022 .

The increase in salaries and benefits was primarily driven by an increase in headcount to support the growth of the business and salary increases due to inflationary pressures.

As a percentage of revenues, these expenses increased to 19.6 % and 20.0 % for the three and nine months ended September 30, 2023 , compared to 19.1 % and 19.1 %, for the same periods in 2022 .

Fluctuations in foreign currency exchange rates in the countries in which we employ our workforce increased salaries by approximately $2.0 million for the three months ended September 30, 2023, as compared to the same period in 2022.

Fluctuations in foreign currency exchange rates did not impact the nine months ended September 30, 2023, compared to the same period in 2022.

Selling, general and administrative

Selling, general and administrative expenses were $47.3 million for the three months ended June 30, 2023 , an increase of $1.0 million or 2 % compared to the same period in 2022 .

Selling, general and administrative expenses were $95.0 million for the six months ended June 30, 2023 , an increase of $7.7 million or 9 % compared to the same period in 2022 .

The increase was primarily due to an increase in hardware and soft ware expenses, professional fees, marketing expenses and travel related expenses.

As a percentage of revenues, these expenses decreased and increased to 12.0 % and 12.6% for the three and six months ended June 30, 2023 , compared to 12.6% and 12.3% for the same periods in 2022 .

Selling, general and administrative expenses were $ 45.7 million for the three months ended September 30, 2023 , a decrease of $ 0.6 million or 1 % compared to the same period in 2022 .

Selling, general and administrative expenses were $ 140.7 million for the nine months ended September 30, 2023 , an increase of $ 7.1 million or 5 % compared to the same period in 2022 .

As a percentage of revenues, these expenses decreased to 11.5 % and 12.2 % for the three and nine months ended September 30, 2023 , compared to 12.7 % and 12.5 % for the same periods in 2022 .

Depreciation and amortization

Depreciation and amortization expenses were $8.1 million for the three months ended June 30, 2023, a decrease of $0.5 million or 6 % compared to the same period in 2022 .

Depreciation and amortization expenses were $16.6 million for the six months ended June 30, 2023, a decrease of $0.9 million or 5 % compared to the same period in 2022 .

Depreciation and amortization expenses were $ 7.0 million for the three months ended September 30, 2023 , a decrease of $ 1.2 million or 15 % compared to the same period in 2022 .

Depreciation and amortization expenses were $ 23.6 million for the nine months ended September 30, 2023 , a decrease of $ 2.1 million or 8 % compared to the same period in 2022 .

Depreciation and amortization expense primarily represents amortization of acquired intangible assets and depreciation of money transfer terminals, computers and software, leasehold improvements and office equipment.

As a percentage of revenues, these expenses decreased to 2.1 % and 2.2% for the three and six months ended June 30, 2023, compared to 2.3 % and 2.5% for the same periods in 2022 .

As a percentage of revenues, these expenses decreased to 1.8 % and 2.1 % for the three and nine months ended September 30, 2023 , compared to 2.2 % and 2.4 % for the same periods in 2022 .

Operating income

Money Transfer Segment operating income was $47.2 million for the three months ended June 30, 2023 , an increase of $6.6 million or 16 % compared to the same period in 2022 .

Money Transfer Segment operating income was $79.8 million for the six months ended June 30, 2023 , an increase of $5.9 million or 8 % compared to the same period in 2022 .

Operating margin increased to 12.0% and 10.6% for the three and six months ended June 30, 2023 , compared to 11.0 % and 10.4% for the same periods in 2022 .

Operating income per transaction increased and decreased to $ 1.15 and $1.02, respectively, for the three and six months ended June 30, 2023 , compared to $1.09 and $1.05 for the same period in 2022 due to a shift in the mix of transactions processed .

Money Transfer Segment operating income was $ 53.7 million for the three months ended September 30, 2023 , an increase of $ 13.0 million or 32 % compared to the same period in 2022 .

Money Transfer Segment operating income was $ 133.5 million for the nine months ended September 30, 2023 , an increase of $ 18.9 million or 16 % compared to the same period in 2022 .

Operating margin increased to 13.6 % and 11.6 % for the three and nine months ended September 30, 2023 , compared to 11.2 % and 10.7 % for the same periods in 2022 .

Operating income per transaction increased to $ 1.32 and $ 1.12 , respectively, for the three and nine months ended September 30, 2023 , compared to $ 1.08 and $ 1.06 for the same period in 2022 due to a shift in the mix of transactions processed .

CORPORATE SERVICES

The following table presents the operating expenses for the three and six months ended June 30, 2023 and 2022 for Corporate Services:

Three Months Ended June 30,

The following table presents the operating expenses for the three and nine months ended September 30, 2023 and 2022 for Corporate Services:

Three Months Ended September 30,

Year-over-Year Change

Six Months Ended June 30,

Nine Months Ended September 30,

Year-over-Year Change

2 unchanged sentences

Increase (Decrease)

Salaries and benefits

3 unchanged sentences

Corporate operating expenses

Total Corporate operating expenses were $20.5 million and $41.9 million for the three and six months ended June 30, 2023 , an increase of $1.9 million or 10% and $6.8 million or 19% compared to the same periods in 2022 .

The increase is primarily due to an increase in long-term and short-term incentive compensation expense for the three and six months ended June 30, 2023, compared to the same periods in 2022, due to improved company performance.

Total Corporate operating expenses were $ 19.8 million and $ 61.7 million for the three and nine months ended September 30, 2023 , an increase of $ 2.1 million or 12 % and $ 8.9 million or 17 % compared to the same periods in 2022 .

The increase is primarily due to an increase in long-term and short-term incentive compensation expense for the three and nine months ended September 30, 2023 , compared to the same periods in 2022 , due to improved company performance.

OTHER EXPENSE, NET

Three Months Ended June 30,

Three Months Ended September 30,

Year-over-Year Change

Six Months Ended June 30,

Nine Months Ended September 30,

Year-over-Year Change

10 unchanged sentences

Interest income

Interest income was $3.5 million for the three months ended June 30, 2023 , an increase of $3.3 million or 1,650 % compared to the same period in 2022 .

Interest income was $6.1 million for the six months ended June 30, 2023 , an increase of $5.8 million or 1,933% compared to the same period in 2022 .

Interest income was $ 4.0 million for the three months ended September 30, 2023 , an increase of $ 3.4 million or 567 % compared to the same period in 2022 .

Interest income was $ 10.1 million for the nine months ended September 30, 2023 , an increase of $ 9.2 million or 1,022 % compared to the same period in 2022 .

This increase was driven by an increase in interest rates on our interest bearing bank accounts.

Interest expense

Interest expense was $14.0 million for the three months ended June 30, 2023 , an increase of $ 5.2 million or 59 % compared to the same period in 2022 .

Interest expense was $24.1 million for the six months ended June 30, 2023 , an increase of $9.2 million or 62% compared to the same period in 2022 .

This increase was driven by an increase in interest rates on our Credit Facility.

Interest expense was $ 15.0 million for the three months ended September 30, 2023 , an increase of $ 3.3 million or 28 % compared to the same period in 2022 .

Interest expense was $ 39.1 million for the nine months ended September 30, 2023 , an increase of $ 12.5 million or 47 % compared to the same period in 2022 .

This increase was driven by an increase in interest rates on our Credit Facility and uncommitted credit facilities.

Foreign currency exchange loss, net

2 unchanged sentences

Foreign currency exchange gains and losses that result from remeasurement of these assets and liabilities are recorded in net income.

The majority of our foreign currency exchange gains or losses are due to the remeasurement of intercompany loans which are not considered a long-term investment in nature and are in a currency other than the functional currency of one of the parties to the loan.

For example, we make intercompany loans based in euros from our corporate division, which is composed of U.S.

dollar functional currency entities, to certain European entities that use the euro as the functional currency.

dollar strengthens against the euro, foreign currency exchange losses are recognized by our corporate entities because the number of euros to be received in settlement of the loans decreases in U.S.

dollar terms.

Conversely, in this example, in periods where the U.S.

dollar weakens, our corporate entities will record foreign currency exchange gains.

We recorded net foreign currency exchange gains of $6.3 million and $5.2 million for the three and six months ended June 30, 2023 , compared to net foreign currency exchange losses of $14.7 million and $20.2 million for the same periods in 2022.

These realized and unrealized foreign currency exchange gains and losses reflect the fluctuation in the value of the U.S.

We recorded net foreign currency exchange losses of $ 8.8 million and $ 3.6 million for the three and nine months ended September 30, 2023 , compared to net foreign currency exchange losses of $ 15.8 million and $ 36.0 million for the same periods in 2022 .

These realized and unrealized foreign currency exchange losses reflect the fluctuation in the value of the U.S.

dollar against the currencies of the countries in which we operated during the respective periods.

INCOME TAX EXPENSE

The Company's effective income tax rate was 27.3% and 31.9% for the three and six months ended June 30, 2023, compared to 26.7% and 36.7% for the same periods ended June 30, 2022.

The Company's effective income tax rate for the three and six months ended June 30, 2023 was higher than the applicable statutory income tax rate of 21% as a result of the Company’s U.S.

deferred tax activity and certain foreign earnings being subject to higher local statutory tax rates.

The Company's effective income tax rate was 29.2% and 30.6% for the three and nine months ended September 30, 2023 , compared to 31.1% and 33.5% for the same periods ended September 30, 2022 .

The Company's effective income tax rate for the three and nine months ended September 30, 2023 was higher than the applicable statutory income tax rate of 21% as a result of certain foreign earnings being subject to higher local statutory tax rates and the Company’s U.S.

deferred tax activity.

NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS

7 unchanged sentences

NET INCOME (LOSS) ATTRIBUTABLE TO EURONET

Net income attributable to Euronet was $86.1 million for the three months ended June 30, 2023, an increase of $28.8 million or 50% compared to t he same period in 2022 .

Net income attributable to Euronet was $ 104.2 million for the three months ended September 30, 2023 , an increase of $ 6.4 million or 7 % compared to t he same period in 2022 .

The increase in net income was primarily attributable to the $ 72.7 million increase in revenues, across all of our three segments, largely driven by successful business operations.

1 unchanged sentence

The increase in gross profit was partially offset by a $19.2 million increase in salaries and benefits expense in the Money Transfer segment.

Net income attributable to Euronet was $106.2 million for the six months ended June 30, 2023, an increase of $40.7 million or 62% compared to t he same period in 2022 .

The increase in net income was pri marily attributable to the $164.5 million increase in revenues, largely driven by increases within the EFT Segment as tourism and cross-border travel increased.

The increased revenues led to a $73.7 million increase in gross profit.

Net income attributable to Euronet was $ 210.4 million for the nine months ended September 30, 2023 , an increase of $ 47.1 million or 29 % compared to t he same period in 2022 .

The increase in net income was primarily attributable to the $ 237.2 million increase in revenues, across all of our three segments, largely driven by successful business operations.

T he increased revenues led to a $ 95.7 million increase in gross profit.

The increase in gross profit was partially offset by a $ 52.4 million increase in salaries and benefits expense.

1 unchanged sentence

Working capital

As of June 30, 2023 , we had working capital of $1,207.4 million , which is calculated as the difference between total current assets and total current liabilities, compared to working capital of $1,372.6 million as of December 31, 2022 .

The decrease in working capital was primarily due to a decrease in prepayments.

Our ratio of current assets to current liabilities was 1.52 and 1.58 at June 30, 2023 and December 31, 2022 , respectively.

As of September 30, 2023 , we had working capital of $ 967.6 million , which is calculated as the difference between total current assets and total current liabilities, compared to working capital of $ 1,372.6 million as of December 31, 2022 .

The decrease in working capital was primarily due to the repurchase of shares.

Our ratio of current assets to current liabilities was 1.38 and 1.58 at September 30, 2023 and December 31, 2022 , respectively.

We require substantial working capital to finance operations.

5 unchanged sentences

However, in certain countries, we fund the cash required to operate our ATM network from borrowings under our revolving credit facilities, uncommitted credit agreements and cash flows from operations.

As of June 30, 2023 , we had $776.3 million of our own cash in use or designated for use in our ATM network, which is recorded in ATM cash on Euronet's Consolidated Balance Sheet.

ATM cash increased $260.7 million from $515.6 million as of December 31, 2022 to $776.3 million as of June 30, 2023 as a result of the increase in number of active ATMs as of June 30, 2023 compared to December 31, 2022.

The Company has $1,137.5 million of unrestricted cash as of June 30, 2023 compared to $1,131.2 million as of December 31, 2022 .

Including the $776.3 million of cash in ATMs at June 30, 2023 , we have access to $2,192.6 million in available cash, and $1,057.2 million available under the Credit Facility with no significant long-term debt principal payments until March 2025.

The following table identifies cash and cash equivalents provided by/(used in) our operating, investing and financing activities for the six months ended June 30, 2023 and 2022 (in millions):

Six Months Ended June 30,

As of September 30, 2023 , we had $ 603.5 million of our own cash in use or designated for use in our ATM network, which is recorded in ATM cash on Euronet's Consolidated Balance Sheet.

ATM cash increased $ 87.9 million from $ 515.6 million as of December 31, 2022 to $ 603.5 million as of September 30, 2023 as a result of the increase in number of active ATMs as of September 30, 2023 compared to December 31, 2022 .

The Company has $ 1,074.4 million of unrestricted cash as of September 30, 2023 compared to $ 1,131.2 million as of December 31, 2022 .

Including the $ 603.5 million of cash in ATMs at September 30, 2023 , we have access to $ 2,043.3 million in available cash, and $ 1,080.2 million available under the Credit Facility with no significant long-term debt principal payments until March 2025.

The following table identifies cash and cash equivalents provided by/(used in) our operating, investing and financing activities for the nine months ended September 30, 2023 and 2022 (in millions):

Nine Months Ended September 30,

Cash and cash equivalents and restricted cash provided by (used in):

3 unchanged sentences

Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash

Increase in cash and cash equivalents and restricted cash

Increase/(decrease) in cash and cash equivalents and restricted cash

Operating activity cash flow

Cash flows provided by operating activities were $220.2 million f or the six months ended June 30, 2023 compared to cash flows provided by operating activities of $180.7 million for the same period in 2022 .

The increase in operating cash flows was primarily due to an increase in net income.

Cash flows provided by operating activities were $ 507.4 million f or the nine months ended September 30, 2023 compared to cash flows provided by operating activities of $ 448.7 million for the same period in 2022 .

The increase in operating cash flows was primarily due to an increase in net income and a decrease in foreign exchange loss.

Investing activity cash flow

Cash flows used in investing activities were $45.5 million for the six months ended June 30, 2023 compared to $387.0 million for the same period in 2022 .

Cash flows used in investing activities were $ 74.6 million for the nine months ended September 30, 2023 compared to $ 416.1 million for the same period in 2022 .

The decrease in cash used in investing activities is primarily due to the $331.0 million of cash paid at the closing of PBMA in March 2022.

Additionally, w e used $41.9 million for purchases of property and equipment for the six months ended June 30, 2023 compared to $53.1 million for the same period in 2022 .

Additionally, w e used $ 69.1 million for purchases of property and equipment for the nine months ended September 30, 2023 compared to $ 79.4 million for the same period in 2022 .

Financing activity cash flow

Cash flows provided by financing activities were $104.4 million for the six months ended June 30, 2023 compared to cash flows provided by financing activities of $491.2 million for the same period in 2022 .

Our borrowing activities on the Credit Facility for the six months ended June 30, 2023 consisted of net borrowings of $132.8 million compared to net borrowings of $663.7 million for the same period in 2022.

The decrease in net borrowings on the Credit Facility, during the six months ended June 30, 2023, is primarily the result of decreased funding requirements for acquisitions.

We repurchased $29.3 million of common stock during the six months ended June 30, 2023 compared to $175.3 million of repurchases during the same period of 2022 .

We received proceeds of $2.4 million and $3.7 million during the six months ended June 30, 2023 and 2022 , respectively, for the issuance of stock in connection with our Stock Incentive Plan.

Cash flows used by financing activities were $ 208.3 million for the nine months ended September 30, 2023 compared to cash flows provided by financing activities of $ 173.5 million for the same period in 2022 .

Our borrowing activities on the Credit Facility for the nine months ended September 30, 2023 consisted of net borrowings of $ 116.2 million compared to net borrowings of $ 342.9 million for the same period in 2022 .

The decrease in net borrowings on the Credit Facility, during the nine months ended September 30, 2023 , is primarily the result of decreased funding requirements for acquisitions.

We repurchased $ 325.4 million of common stock during the nine months ended September 30, 2023 compared to $ 175.3 million of repurchases during the same period of 2022 .

We received proceeds of $ 3.1 million and $ 4.4 million during the nine months ended September 30, 2023 and 2022 , respectively, for the issuance of stock in connection with our Stock Incentive Plan.

Effect of exchange rates on cash, cash equivalents and restricted cash

Fluctuations in f oreign currency exchange rates for the six months ended June 30, 2023 and 2022 had a negative impact of $77.4 million and $195.2 million, respectively, on cash, cash equivalents, and restricted cash.

The negative impact on cash, cash equivalents, and restricted cash for the six months ended June 30, 2023 and 2022 was due primarily to the negative impact in the exchange rate of the U.S.

Fluctuations in f oreign currency exchange rates for the nine months ended September 30, 2023 and 2022 had a negative impact of $ 172.0 million and $ 413.7 million, respectively, on cash, cash equivalents, and restricted cash.

The negative impact on cash, cash equivalents, and restricted cash for the nine months ended September 30, 2023 and 2022 was due primarily to the negative impact in the exchange rate of the U.S.

dollar to the euro.

7 unchanged sentences

The applicable margin for borrowings under the credit facility, based on the Company's current credit rating is 1.25 % including the facility fee.

As of June 30, 2023 , we had $137.6 million of borrowings and $55.2 million of stand-by letters of credit outstanding under the Credit Facility.

As of September 30, 2023 , we had $ 113.5 million of borrowings and $ 56.3 million of stand-by letters of credit outstanding under the Credit Facility.

The remaining $ 1,080.2 million under the Credit Facility was available for borrowing.

7 unchanged sentences

The Senior Notes accrue interest at a rate of 1.375 % per year, payable annually in arrears on May 22 of each year, until maturity or earlier redemption.

As of June 30, 2023 , we have outstanding € 600 million ( $654.6 million ) principal amount of the Senior Notes.

As of September 30, 2023 , we have outstanding € 600 million ( $ 634.2 million ) principal amount of the Senior Notes.

In addition, we may redeem some or all of these notes on or after February 22, 2026 at their principal amount plus any accrued and unpaid interest.

Uncommitted Credit Agreements - On June 27, 2023, the Company entered into an Uncommitted Credit Agreement for $300 million, fully drawn and outstanding at June 30, 2023, for the sole purpose of providing vault cash for ATMs, that expires no later than November 30, 2023.

Uncommitted Credit Agreements - On June 27, 2023, the Company entered into an Uncommitted Credit Agreement for $300 million, fully drawn and outstanding at September 30, 2023, for the sole purpose of providing vault cash for ATMs, which expires no later than November 30, 2023.

The loan bears interest at the rate per annum equal to the secured overnight financing rate (“SOFR”) plus 1.125% .

On June 26, 2023, the Company entered into an Uncommitted Loan Agreement for $150 million, fully drawn and outstanding at June 30, 2023, for the sole purpose of providing vault cash for ATMs, that expires no later than June 21, 2024.

On June 26, 2023, the Company entered into an Uncommitted Loan Agreement for $150 million, fully drawn and outstanding at September 30, 2023, for the sole purpose of providing vault cash for ATMs, that expires no later than June 21, 2024.

The loan is a Prime rate loan, a Bloomberg Short-term Bank Yield ("BSBY") rate loan plus 0.95% or bears interest at the rate agreed to by the Bank and the Company at the time such loan is made.

Other debt obligations — Certain of our subsidiaries have available credit lines and overdraft facilities to generally supplement short-term working capital requirements, when necessary.

There was $0.2 million outstanding under these other obligation arrangements as of both June 30, 2023 and December 31, 2022 .

There was $ 0.2 million outstanding under these other obligation arrangements as of both September 30, 2023 and December 31, 2022 .

Other uses of capital

Capital expenditures and needs - Total capital expenditures for the six months ended June 30, 2023 were $41.9 million .

Capital expenditures and needs - Total capital expenditures for the nine months ended September 30, 2023 were $ 69.1 million .

These capital expenditures were primarily for the purchase and installation of ATMs in key under-penetrated markets, the purchase of POS terminals for the epay and Money Transfer Segments, and office, data center and company store computer equipment and software.

Total capital expenditures for 2023 are currently estimated to range from approximately 100 million to $110 million.

At current and projected cash flow levels, we anticipate that cash generated from operations, together with cash on hand and amounts available under our Credit Facility and other existing and potential future financing will be sufficient to meet our debt, leasing, and capital expenditure obligations.

If our capital resources are not sufficient to meet these obligations, we will seek to refinance our debt and/or issue additional equity under terms acceptable to us.

10 unchanged sentences

Our liability under such indemnification provisions may be subject to time and materiality limitations, monetary caps and other conditions and defenses.

As of June 30, 2023 , there were no material changes from the disclosure in our Annual Report on Form 10-K for the year ended December 31, 2022 .

To date, we are not aware of any significant claims made by the indemnified parties or parties to whom we have provided guarantees on behalf of our subsidiaries and, accordingly, no liabilities have been recorded as of June 30, 2023 .

As of September 30, 2023 , there were no material changes from the disclosure in our Annual Report on Form 10-K for the year ended December 31, 2022 .

See also Note 14 , Commitments, to the unaudited consolidated financial statements included elsewhere in this report.

CONTRACTUAL OBLIGATIONS

As of June 30, 2023 , there have been no material changes outside the ordinary course of business in our future contractual obligations from the amounts reported within our Annual Report on Form 10-K for the year ended December 31, 2022 .

As of September 30, 2023 , there have been no material changes outside the ordinary course of business in our future contractual obligations from the amounts reported within our Annual Report on Form 10-K for the year ended December 31, 2022 .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis