What changed in this filing

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Item 1. Financial Statements

2024-08-02 compared with 2024-05-06 · 163 added, 95 removed, 511 unchanged (34% of the section changed)

52 unchanged sentences

Three Months Ended

Six Months Ended

Operating expenses:

8 unchanged sentences

Interest expense

Foreign currency exchange loss, net

Foreign currency exchange gain (loss), net

Other (losses) gains, net

2 unchanged sentences

Income tax expense

Net income attributable to noncontrolling interests

Net (income) loss attributable to noncontrolling interests

Net income attributable to Euronet Worldwide, Inc.

5 unchanged sentences

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited, in millions)

Three Months Ended

Three Months Ended June 30,

Six Months Ended June 30,

Translation adjustment

Comprehensive income (loss)

Comprehensive income attributable to noncontrolling interests

Comprehensive income (loss) attributable to Euronet Worldwide, Inc.

Comprehensive income

Comprehensive (income) loss attributable to noncontrolling interests

Comprehensive income attributable to Euronet Worldwide, Inc.

See accompanying notes to the unaudited consolidated financial statements.

12 unchanged sentences

Balance as of March 31, 2023

Net income (loss)

Other comprehensive income

Stock issued under employee stock plans

Share-based compensation

Repurchase of shares

Balance as of June 30, 2023

Shares Outstanding

1 unchanged sentence

Balance of December 31, 2023

Net income (loss)

Other comprehensive income

3 unchanged sentences

Balance as of March 31, 2024

Net income (loss)

Other comprehensive income (loss)

Stock issued under employee stock plans

Share-based compensation

Repurchase of shares

Balance as of June 30, 2024

EURONET WORLDWIDE, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited, in millions, except share data)

Retained Earnings

9 unchanged sentences

Balance as of March 31, 2023

Net income (loss)

Other comprehensive income

Stock issued under employee stock plans

Share-based compensation

Repurchase of shares

Balance as of June 30, 2023

Retained Earnings

3 unchanged sentences

Balance as of December 31, 2023

Net income (loss)

Other comprehensive income

Other comprehensive loss

Stock issued under employee stock plans

2 unchanged sentences

Balance as of March 31, 2024

Other comprehensive income (loss)

Stock issued under employee stock plans

Share-based compensation

Repurchase of shares

Balance as of June 30, 2024

See accompanying notes to the unaudited consolidated financial statements.

3 unchanged sentences

(Unaudited, in millions)

Three Months Ended March 31,

Six Months Ended June 30,

Adjustments to reconcile net income to net cash provided by operating activities:

20 unchanged sentences

Proceeds from issuance of shares

Repurchase of shares

Repurchase of shares and other share movements

Borrowings from credit agreements

Repayments of credit agreements

Repayment of long-term debt obligations

Net borrowings of short-term debt obligations

Repayments of capital lease obligations

Net cash provided by (used in) financing activities

Net cash used in financing activities

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

27 unchanged sentences

The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year ending December 31, 2024.

Euronet’s EFT Processing Segment normally experiences its heaviest demand for dynamic currency conversion ("DCC") services during the third quarter of the fiscal year, normally coinciding with the tourism season.

The Company's EFT Processing Segment normally experiences its heaviest demand for dynamic currency conversion ("DCC") services during the third quarter of the fiscal year, normally coinciding with the tourism season.

The epay Segment is normally impacted by seasonality during the fourth quarter and first quarter of each year due to higher transaction levels during the holiday season and lower levels following the holiday season.

1 unchanged sentence

Seasonality in the Money Transfer Segment varies by region of the world.

In most markets, Euronet usually experiences increased demand for money transfer services from the month of May through the fourth quarter of each year, coinciding with the increase in worker migration patterns and various holidays, and its lowest transaction levels during the first quarter of the year.

In most markets, the Company usually experiences increased demand for money transfer services from the month of May through the fourth quarter of each year, coinciding with the increase in worker migration patterns and various holidays, and its lowest transaction levels during the first quarter of the year.

( 2 ) RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

10 unchanged sentences

On February 1, 2024, Euronet acquired Infinitium Group, a leading regional solutions provider with Payments Authentication services, for a purchase consideration of $ 70.0 million cash and $ 5.0 million of the Company’s common stock to be paid over two installments on February 1, 2026 and 2027 .

The Company preliminary allocated $ 51.0 million of the purchase consideration to customer relationships, $ 5.6 million to acquired net assets, and the remaining $ 18.4 million to goodwill.

The Company preliminarily allocated $ 51.0 million of the purchase consideration to customer relationships, $ 5.6 million to acquired net assets, and the remaining $ 18.4 million to goodwill.

During the second quarter 2024 we subsequently allocated $ 10.2 to goodwill due to a deferred tax liability position.

For the quarter ended June 30, 2024, the Company made measurement period adjustment to reflect facts and circumstances in existence as of the effective time of the acquisition.

This adjustment primarily included an adjustment to deferred tax liabilities and goodwill of $ 10.2 million .

In the second quarter of 2024, Euronet acquired a business for an immaterial amount.

(4) SETTLEMENT ASSETS AND OBLIGATIONS

30 unchanged sentences

(5) STOCKHOLDERS' EQUITY

Earnings (Loss) Per Share

Basic earnings (loss) per share has been computed by dividing earnings (loss) available to common stockholders by the weighted average number of common shares outstanding during the respective period.

Diluted earnings (loss) per share has been computed by dividing earnings (loss) available to common stockholders by the weighted average shares outstanding during the respective period, after adjusting for the potential dilution of options to purchase the Company’s common stock, assumed vesting of restricted stock units and the assumed conversion of the Company’s convertible debt, if such conversion would be dilutive.

Earnings Per Share

Basic earnings per share has been computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the respective period.

Diluted earnings per share has been computed by dividing earnings available to common stockholders by the weighted average shares outstanding during the respective period, after adjusting for the potential dilution of options to purchase the Company’s common stock, assumed vesting of restricted stock units and the assumed conversion of the Company’s convertible debt, if such conversion would be dilutive.

The following table provides the computation of diluted earnings and diluted weighted average number of common shares outstanding:

1 unchanged sentence

Three Months Ended

Six Months Ended

Computation of diluted earnings:

7 unchanged sentences

The table includes all stock options and restricted stock units that are dilutive to the Company's weighted average common shares outstanding during the period.

The calculation of diluted earnings per share excludes stock options or shares of restricted stock units that are anti-dilutive to the Company's weighted average common shares outstanding of approximately 3.3 million and 2.3 million for the three months ended March 31, 2024 and 2023 .

Euronet issued Convertible Senior Notes ("Convertible Notes") due March 2049 on March 18, 2019.

The calculation of diluted earnings per share excludes stock options or shares of restricted stock units that are anti-dilutive to the Company's weighted average common shares outstanding of approximately 3.1 million and 3.2 million for the three and six months ended June 30, 2024 and 2.6 million and 2.6 million for the three and six months ended June 30, 2023 , respectively .

The Company issued Convertible Senior Notes ("Convertible Notes") due March 2049 on March 18, 2019.

The Convertible Notes currently have a settlement feature requiring us upon conversion to settle the principal amount of the debt and any conversion value in excess of the principal value ("conversion premium"), for cash or shares of Euronet's common stock or a combination thereof, at the Company's option.

2 unchanged sentences

Therefore, the Convertible Notes were included in the calculation of diluted earnings per share if their inclusion was dilutive.

The dilutive effect increases the more the market price exceeds the conversion price of $ 188.73 per share.

The dilutive effect increases the more the market price for the Company's common stock exceeds the conversion price of $ 188.73 per share.

See Note 10 , Debt Obligations, to the consolidated financial statements for more information about the Convertible Notes.

1 unchanged sentence

On September 13, 2022, the Company put a repurchase program in place to repurchase up to $ 350 million in value, but not more than 7.0 million shares of common stock through September 13, 2024.

As of March 31, 2024 , approximately $ 96.6 million in value of additional shares were available to be repurchased under this repurchase program.

As of June 30, 2024 , no shares were available to be repurchased under this repurchase program.

On September 13, 2023, the Company put a repurchase program in place to repurchase up to $ 350 million in value, but not more than 7.0 million shares of common stock through September 13, 2025.

As of March 31, 2024 , all shares were available to be repurchased under this repurchase program.

As of June 30, 2024 , 6.9 million shares were available to be repurchased under this repurchase program.

Repurchases under the programs may take place in the open market or in privately negotiated transactions, including derivative transactions, and may be made under a Rule 10 b 5 - 1 plan.

1 unchanged sentence

Accumulated other comprehensive loss consists entirely of foreign currency translation adjustments.

The Company recorded foreign currency translation adjustments of ($ 45.0 ) million for the three months ended March 31, 2024 and $ 20.8 million for the three months ended March 31, 2023 , respectively.

There were no reclassifications of foreign currency translation adjustments into the consolidated statements of income for the three months ended March 31, 2024 and 2023 .

The Company recorded foreign currency translation adjustments of ($ 10.0 ) million and ( $ 55.0 ) million for the three and six months ended June 30, 2024 and $ 10.0 million and $ 30.8 million for the three and six months ended June 30, 2023 , respectively.

There were no reclassifications of foreign currency translation adjustments into the consolidated statements of income for the three and six months ended June 30, 2024 and 2023 .

( 6 ) GOODWILL AND ACQUIRED INTANGIBLE ASSETS, NET

A summary of acquired intangible assets and goodwill activity for the three months ended March 31, 2024 is presented below:

A summary of acquired intangible assets and goodwill activity for the six months ended June 30, 2024 is presented below:

(in millions)

2 unchanged sentences

Foreign currency exchange rate changes

Balance as of March 31, 2024

Of the total goodwill balance of $ 848.8 million as of March 31, 2024 , $ 382.4 million relates to the Money Transfer Segment, $ 342.9 million relates to the EFT Processing Segment and the remaining $ 123.5 million relates to the epay Segment .

Estimated amortization expense on acquired intangible assets with finite lives as of March 31, 2024 , is expected to total $ 12.4 million for the remainder of 2024 , $ 14.3 million for 2025 , $ 14.0 million for 2026 , $ 12.7 million for 2027 , $ 12.3 million for 2028 and $ 12.3 million for 2029.

Balance as of June 30, 2024

Of the total goodwill balance of $ 877.5 million as of June 30, 2024 , $ 382.1 million relates to the Money Transfer Segment, $ 372.4 million relates to the EFT Processing Segment and the remaining $ 123.0 million relates to the epay Segment .

Estimated amortization expense on acquired intangible assets with finite lives as of June 30, 2024 , is expected to total $ 9.6 million for the remainder of 2024 , $ 17.9 million for 2025 , $ 17.6 million for 2026 , $ 16.3 million for 2027 , $ 15.9 million for 2028 and $ 15.9 million for 2029.

(7) CONVERTIBLE NOTES RECEIVABLE

2 unchanged sentences

The Company has a security interest in all of the assets of Koin Mobile, LLC and Marker Trax, LLC.

The outstanding principal and accrued interest were $ 60.0 million and $ 0.5 million at March 31, 2024 , respectively.

The outstanding principal and accrued interest were $ 60.0 million and $ 0.8 million at June 30, 2024 , respectively.

The Notes are convertible into preferred equity of Koin Mobile, LLC and Marker Trax, LLC at the option of the Company upon the occurrence of certain events including a qualified equity financing, change in control, achievement of profitability or at the option of the Company at maturity, as defined in the Notes.

10 unchanged sentences

The Company records deferred revenues when cash payments are received or due in advance of the Company's performance.

The increase in the deferred revenue balance for the three months ended March 31, 2024 is the result of $ 71.4 million of revenues recognized, offset by $ 70.6 million of cash payments received in the current year for which the Company has not yet satisfied the performance obligations.

The decrease in the deferred revenue balance for the six months ended June 30, 2024 is the result of $ 24.1 million of revenues recognized, offset by $ 23.7 million of cash payments received in the current year for which the Company has not yet satisfied the performance obligations.

(10) DEBT OBLIGATIONS

1 unchanged sentence

(in millions)

March 31, 2024

June 30, 2024

December 31, 2023

22 unchanged sentences

Subject to meeting certain customary covenants (as defined in the Credit Facility), the Company is permitted to repurchase common stock and debt.

The Company was in compliance with all debt covenants as of March 31, 2024 .

The Company was in compliance with all debt covenants as of June 30, 2024 .

Convertible Notes

6 unchanged sentences

In addition, if a fundamental change, as defined in the Indenture, occurs prior to the maturity date, holders may require the Company to repurchase for cash all or part of their Convertible Notes at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

As of March 31, 2024 , the conversion threshold was not met.

Contractual interest expense for the Convertible Notes was $ 1.0 million for the three months ended March 31, 2024 and 2023 respectively.

As of June 30, 2024 , the conversion threshold was not met.

Contractual interest expense for the Convertible Notes was $ 1.0 million and $ 2.0 million for the three and six months ended June 30, 2024 , respectively.

Contractual interest expense for the Convertible Notes was $ 1.1 million and $ 2.0 million for the three and six months ended June 30, 2023 , respectively.

1.375 % Senior Notes due 2026

1 unchanged sentence

The Senior Notes accrue interest at a rate of 1.375 % per year, payable annually in arrears commencing May 22, 2020 , until maturity or earlier redemption.

As of March 31, 2024 , the Company has outstanding € 600.0 million ($ 646.9 million ) principal amount of the Senior Notes.

As of June 30, 2024 , the Company has outstanding € 600.0 million ($ 642.6 million ) principal amount of the Senior Notes.

In addition, the Company 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 26, 2023, the Company entered into an Uncommitted Loan Agreement for $ 150 million, fully drawn and outstanding at March 31, 2024, 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.

The weighted-average interest rate from the loan inception date to March 31, 2024 was 6.31 %.

On June 26, 2023, the Company entered into an Uncommitted Loan Agreement for $ 150 million, which expired on June 21, 2024.

This loan was a Prime rate loan, a Bloomberg Short-term Bank Yield (“BSBY”) rate loan plus 0.95 % or bore interest at the rate agreed to by the Bank and the Company at the time a loan was made.

The weighted average interest rate from the loan inception date to June 21, 2024, was 6.32 %.

On June 21, 2024, the Company rolled the $ 150 Uncommitted Loan Agreement into a new Uncommitted Loan Agreement with a $ 400 million credit limit on or before September 30, 2024, and a credit limit of $ 250 million on or after October 1, 2024.

The loan was fully drawn and outstanding at June 30, 2024, for the sole purpose of providing vault cash for ATMs and expires no later than June 20, 2025 .

The loan is a Prime Rate Loan, a Daily SOFR Rate Loan plus 1.05 % or shall bear interest at the rate agreed to by the Bank and the Borrower at the time such Loan is made.

The weighted-average interest rate from loan inception date to June 30, 2024, was 6.37 %.

On June 27, 2024, the Company entered into an Uncommitted Loan Agreement for $ 300 million, fully drawn and outstanding at June 30, 2024, for the sole purpose of providing vault cash for ATMs, that expires no later than November 30, 2024 .

The loan is a Prime Rate Loan, a Daily Simple SOFR Rate Loan plus 1.125 % or shall bear interest at the rate agreed to by the Bank and the Borrower at the time such Loan is made.

The weighted-average interest rate from the loan inception date to June 30, 2024 was 6.37 %.

Other obligations

Certain of the Company's subsidiaries have available lines of credit and overdraft credit facilities that generally provide for short-term borrowings that are used from time to time for working capital purposes.

As of March 31, 2024 and December 31, 2023 , borrowings under these arrangements were $ 0.2 million and $ 0.3 million, respectively .

As of June 30, 2024 and December 31, 2023 , borrowings under these arrangements were $ 8.9 million and $ 0.3 million, respectively .

Debt Issuance Costs

As of March 31, 2024 , the Company had unamortized debt issuance costs of $ 2.9 million for the Credit Facility, $ 2.1 million for the Convertible Notes and $ 2.6 million for the Senior Notes that will be amortized through October 2027, March 2025 and May 2026, respectively.

As of June 30, 2024 , the Company had unamortized debt issuance costs of $ 2.7 million for the Credit Facility, $ 1.6 million for the Convertible Notes and $ 2.3 million for the Senior Notes that will be amortized through October 2027, March 2025 and May 2026, respectively.

(11) DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

10 unchanged sentences

T he Company had foreign currency forward contracts outstanding in the U.S.

with a notional value of $ 400.8 million and $ 393.3 million as of March 31, 2024 and December 31, 2023 , respectively .

with a notional value of $ 509.7 million and $ 393.3 million as of June 30, 2024 and December 31, 2023 , respectively .

The foreign currency forward contracts consist primarily in Australian dollars, Canadian dollars, British pounds sterling, euros and Mexican pesos.

In addition, the Company uses forward contracts, typically with maturities from a few days to less than one year, to offset foreign exchange rate fluctuations on certain short-term borrowings that are payable in currencies other than the U.S dollar.

T he Company had foreign currency forward contracts outstanding with a notional value of $ 490.1 million and $ 563.1 million as of March 31, 2024 and December 31, 2023 , respectively , primarily in euro.

T he Company had foreign currency forward contracts outstanding with a notional value of $ 216.1 million and $ 563.1 million as of June 30, 2024 and December 31, 2023 , respectively , primarily in euro.

Foreign currency exchange contracts - xe Operations

1 unchanged sentence

xe aggregates its foreign currency exposures arising from customer contracts and hedges the resulting net currency risks by entering into offsetting contracts with established financial institution counterparties .

Foreign exchange revenues from xe's total portfolio of positions were $ 20.9 million for the three months ended March 31, 2024 , respectively, and $ 20.1 million for the same period in 2023 , respectively.

Foreign exchange revenues from xe's total portfolio of positions were $ 22.4 million and $ 43.3 million for the three and six months ended June 30, 2024 , respectively, and $ 21.5 million and $ 41.6 million for the three and six months ended June 30, 2023 , respectively.

All of the derivative contracts used in the Company's xe operations are economic hedges and are not designated as hedges under ASC 815 .

5 unchanged sentences

The aggregate equivalent U.S.

dollar notional amount of foreign currency derivative customer contracts held by the Company in its xe operations as of March 31, 2024 and December 31, 2023 was $ 1.1 billion and $ 1.1 billion, respectively.

dollar notional amount of foreign currency derivative customer contracts held by the Company in its xe operations as of June 30, 2024 and December 31, 2023 was $ 1.5 billion and $ 1.1 billion, respectively.

The significant majority of customer contracts are written in major currencies such as the euro, U.S.

6 unchanged sentences

Balance Sheet Location

March 31, 2024

June 30, 2024

December 31, 2023

Balance Sheet Location

March 31, 2024

June 30, 2024

December 31, 2023

3 unchanged sentences

Other current liabilities

The following tables summarize the gross and net fair value of derivative assets and liabilities as of March 31, 2024 and December 31, 2023 (in millions):

The following tables summarize the gross and net fair value of derivative assets and liabilities as of June 30, 2024 and December 31, 2023 (in millions):

Offsetting of De rivative Ass ets

As of March 31, 2024

As of June 30, 2024

Gross Amounts of Recognized Assets

6 unchanged sentences

Offsetting of Derivative Liabilities

As of March 31, 2024

As of June 30, 2024

Gross Amounts of Recognized Liabilities

7 unchanged sentences

Income Statement Presentation

The following table summarizes the location and amount of losses on derivatives in the Consolidated Statements of Income for the three months ended March 31, 2024 and 2023 :

Amount of (Loss) Recognized in Income on Derivative Contracts (a)

Location of Gain (Loss) Recognized in Income on Derivative Contracts

The following table summarizes the location and amount of losses on derivatives in the Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 :

Loss Recognized in Income on Derivative Contracts (a)

Location of Loss Recognized in Income on Derivative Contracts

Three Months Ended

Six Months Ended

(in millions)

13 unchanged sentences

The following table details financial assets and liabilities measured and recorded at fair value on a recurring basis:

As of March 31, 2024

As of June 30, 2024

(in millions)

13 unchanged sentences

The carrying amounts of cash and cash equivalents, trade accounts receivable, trade accounts payable and short-term debt obligations approximate fair values due to their short maturities.

The carrying values of the Company’s revolving credit agreements approximate fair values because interest as of March 31, 2024 was based on the Secured Overnight Financing Rate ("SOFR") that resets at various intervals of less than one year.

The carrying values of the Company’s revolving credit agreements approximate fair values because interest as of June 30, 2024 was based on the Secured Overnight Financing Rate ("SOFR") that resets at various intervals of less than one year.

The Company estimates the fair value of the Convertible Notes and Senior Notes using quoted prices in inactive markets for identical liabilities (Level 2 ).

As of March 31, 2024 , the fair values of the Convertible Notes and Senior Notes were $ 538.0 million and $ 609.0 million , respectively, with carrying values of $ 525.0 million and $ 646.9 million , respectively.

As of June 30, 2024 , the fair values of the Convertible Notes and Senior Notes were $ 510.7 million and $ 612.0 million , respectively, with carrying values of $ 525.0 million and $ 642.6 million , respectively.

(13) SEGMENT INFORMATION

1 unchanged sentence

The Company currently operates in the following three reportable operating segments:

1 ) Through the EFT Processing Segment, t he Company processes transactions for a network of ATMs and POS terminals across Europe, the Middle East, Africa, Asia Pacific and the United States.

1 ) Through the EFT Processing Segment, t he Company processes transactions for a network of ATMs and POS terminals across Europe, the Middle East, Africa, Asia Pacific and North America.

Euronet provides comprehensive electronic payment solutions consisting of ATM cash withdrawal and deposit services, ATM network participation, outsourced ATM and POS management solutions, credit, debit and prepaid card outsourcing, dynamic currency conversion, domestic and international surcharges and other value added services.

Through this segment, t he Company also offers a suite of integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems.

2 ) Through the epay Segment, Euronet provides distribution, processing and collection services for electronic payment products, and prepaid mobile airtime through a network of POS terminals in Europe, the Middle East, Asia Pacific, South America and North America.

2 ) Through the epay Segment, the Company provides distribution, processing and collection services for electronic payment products, and prepaid mobile airtime through a network of POS terminals in Europe, the Middle East, Asia Pacific, South America and North America.

The epay Segment also provides vouchers and physical gift fulfillment services in Europe.

3 ) Through the Money Transfer Segment, Euronet provides global consumer-to-consumer money transfer services, primarily under the brand names Ria, IME, AFEX, and xe, and global account-to-account money transfer services under the brand name xe.

3 ) Through the Money Transfer Segment, the Company provides global consumer-to-consumer money transfer services, primarily under the brand names Ria, IME, AFEX, and xe, and global account-to-account money transfer services under the brand name xe.

The Company offers services under the brand names Ria and IME through a network of sending agents, Company-owned stores, Company-owned websites, and mobile applications, disbursing money transfers through a worldwide correspondent network.

3 unchanged sentences

In addition, t he Company accounts for non-operating activity, share-based compensation expense, certain intersegment eliminations and the costs of providing corporate and other administrative services in the administrative division, "Corporate Services, Eliminations and Other." These services are not directly identifiable with the Company’s reportable operating segments.

The following tables present the Company's reportable segment results for the three months ended March 31, 2024 and 2023 :

For the Three months ended March 31, 2024

The following tables present the Company's reportable segment results for the three months and six months ended June 30, 2024 and 2023 :

For the Three Months Ended June 30, 2024

(in millions)

8 unchanged sentences

Operating income (loss)

For the Three months ended March 31, 2023

For the Three Months Ended June 30, 2023

(in millions)

8 unchanged sentences

Operating income (loss)

For the Six Months Ended June 30, 2024

(in millions)

Corporate Services,

Total revenues

Operating expenses:

Direct operating costs, exclusive of depreciation

Salaries and benefits

Selling, general and administrative

Depreciation and amortization

Total operating expenses

Operating income (loss)

For the Six Months Ended June 30, 2023

(in millions)

Corporate Services,

Total revenues

Operating expenses:

Direct operating costs, exclusive of depreciation

Salaries and benefits

Selling, general and administrative

Depreciation and amortization

Total operating expenses

Operating income (loss)

The following table presents the Company's total assets by reportable segment:

1 unchanged sentence

(in millions )

March 31, 2024

June 30, 2024

December 31, 2023

7 unchanged sentences

Both segments and regions benefit from synergies achieved through concentration of operations and are influenced by macro-economic, regulatory and political factors in the respective segment and region.

Revenues for the Three months ended March 31, 2024

Revenues for the Three months ended March 31, 2023

Revenues for the Three Months Ended June 30, 2024

Revenues for the Six Months Ended June 30, 2024

(in millions )

North America

Revenues for the Three Months Ended June 30, 2023

Revenues for the Six Months Ended June 30, 2023

(in millions )

North America

( 14 ) INCOME TAXES

The Company's effective income tax rate was 37.9 % and 46.5 % for the three months ended March 31, 2024 and 2023 respectively.

The Company's effective income tax rate for the three months ended March 31, 2024 was higher than the applicable statutory income tax rate of 21 % mainly as a result of our U.S.

deferred tax activity and certain foreign earnings being subject to higher local statutory tax rate s and our U.S.

The Company's effective income tax rate was 32.0 % and 33.5 % for the three and six months ended June 30, 2024 respectively, compared to 27.3 % and 31.9 % for the three and six months ended June 30, 2023 , respectively.

The Company's effective income tax rate for the three and six months ended June 30, 2024 was higher than the applicable statutory income tax rate of 21 % mainly as a result of certain foreign earnings being subject to higher local statutory tax rates and our U.S.

deferred tax activity.

Our effective income tax rate for the three months ended March 31, 2023 was higher than the applicable statutory income tax rate of 21 % as a result of our U.S.

deferred tax activity on foreign exchange positions and certain of our foreign earnings being subject to higher local statutory tax rates.

The Organization for Economic Co-operation and Development

(“OECD”) Pillar 2 guidelines published to date include transition and safe

harbor rules around the implementation of the Pillar 2 global minimum tax of

Based on current enacted legislation effective in 2024, the Company does

not expect a material impact in 2024.

We are monitoring developments and

evaluating the impacts these new rules will have on our future income tax

provision and effective income tax rate.

Our 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 our U.S.

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

The Organization for Economic Co-operation and Development (“OECD”) Pillar 2 guidelines published to date include transition and safe harbor rules around the implementation of the Pillar 2 global minimum tax of 15 %.

Based on current enacted legislation effective in 2024 , the Company does not expect a material financial impact in 2024 .

We are monitoring developments and evaluating the impacts these new rules will have on our future income tax provision and effective income tax rate.

(15) COMMITMENTS

As of March 31, 2024 , the Company had $ 80.0 million of stand-by letters of credit/bank guarantees issued on the Company's behalf, of which $ 3.9 million are collateralized by cash deposits held by the respective issuing banks.

As of June 30, 2024 , the Company had $ 78.8 million of stand-by letters of credit/bank guarantees issued on the Company's behalf, of which $ 3.9 million are collateralized by cash deposits held by the respective issuing banks.

Under certain circumstances, the Company grants guarantees in support of obligations of subsidiaries.

As of March 31, 2024 , the Company had granted off balance sheet guarantees for cash in various ATM networks amounting to $ 10.7 million over the terms of the cash supply agreements and performance guarantees amounting to approximately $ 73.3 million over the terms of agreements with the Company's customers.

As of June 30, 2024 , the Company had granted off balance sheet guarantees for cash in various ATM networks amounting to $ 10.7 million over the terms of the cash supply agreements and performance guarantees amounting to approximately $ 59.3 million over the terms of agreements with the Company's customers.

From time to time, the Company enters into agreements with commercial counterparties that contain indemnification provisions, the terms of which may vary depending on the negotiated terms of each respective agreement.

3 unchanged sentences

In connection with contracts with financial institutions in the EFT Processing Segment, the Company is responsible for damage to ATMs and theft of ATM network cash.

As of March 31, 2024 , the balance of such cash used in the Company's ATM networks for which the Company was responsible was approximately $ 378.7 million .

As of June 30, 2024 , the balance of such cash used in the Company's ATM networks for which the Company was responsible was approximately $ 383.2 million .

The Company maintains insurance policies to mitigate this exposure;

9 unchanged sentences

The Company has obtained surety bonds in compliance with money transfer licensing requirements of the applicable governmental authorities.

To date, the Company is not aware of any significant claims made by the indemnified parties or third parties to guarantee agreements with the Company and, accordingly, no liabilities were recorded as of March 31, 2024 or December 31, 2023 .

( 16 ) LITIGATION AND CONTINGENCIES

From time to time, the Company is a party to legal or regulatory proceedings arising in the ordinary course of the Company's business.

Currently, there are no legal proceedings or regulatory findings that management believes, either individually or in the aggregate, would have a material adverse effect on the Company's consolidated financial condition or results of operations.

In accordance with U.S.

GAAP, the Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

Currently , there are no legal proceedings or regulatory findings which are both probable that a liability has been incurred and can be reasonably estimated that management believes, either individually or in the aggregate, would have a material adverse effect on the Company's consolidated financial condition or results of operations.

These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case.

During July 2024, the Company received an adverse judicial decision related to withholding taxes on certain agency relationships in Italy within the Money Transfer Segment, which the Company plans to appeal.

The Company completed an assessment and concluded that it is reasonably possible that a liability has been incurred, but not probable.

The principal amount of the agent-based withholding tax could be approximately $ 16.5 million for all open periods.

The Company enters into operating leases for ATM sites, office spaces, retail stores and equipment.

The Company's finance leases are immaterial.

Right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease terms.

Right of use assets (ROU) and lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease terms.

The present value of lease payments is determined using the incremental borrowing rate based on information available at the lease commencement date.

9 unchanged sentences

Future minimum lease payments

Future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) as of March 31, 2024 are:

As of March 31, 2024

Future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) as of June 30, 2024 are:

As of June 30, 2024

Maturity of Lease Liabilities (in millions)

10 unchanged sentences

Three Months Ended

March 31, 2024

June 30, 2024

Three Months Ended

March 31, 2023

June 30, 2023

Six Months Ended

June 30, 2024

Six Months Ended

June 30, 2023

Operating lease expense

5 unchanged sentences

Lease Term and Discount Rate of Operating Leases

As of March 31, 2024

As of June 30, 2024

Weighted- average remaining lease term (years)

2 unchanged sentences

Other Information (in millions)

Three Months Ended

March 31, 2024

Three Months Ended

March 31, 2023

Six Months Ended

June 30, 2024

Six Months Ended

June 30, 2023

Cash paid for amounts included in the measurement of lease liabilities (a)

3 unchanged sentences

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 1. Financial Statements