Delaware
|
|
001-31648
|
|
74-2806888
|
(State
or other jurisdiction of
incorporation)
|
|
(Commission
File Number)
|
|
(IRS
Employer ID
Number)
|
4601
College Boulevard, Suite 300
Leawood,
Kansas
|
|
66211
|
(Address
of principal executive offices)
|
|
(Zip
Code)
|
¨
|
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
¨
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
¨
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR
240.14d-2(b))
|
¨
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR
240.13e-4(c))
|
|
(c)
|
Exhibits
|
Exhibit
99.1 - Press Release dated February 20, 2007
|
Euronet
Worldwide, Inc.
|
||
|
|
|
By: | /s/ Rick L. Weller | |
Rick
L. Weller
|
||
Chief
Financial Officer
|
||
Date: February 20, 2007 |
|
News
Release
|
||||||||
Corporate
Headquarters
4601
College Boulevard, Suite 300
Leawood,
Kansas 66211 USA
+1-913-327-4200
|
For
Immediate Release
|
Date: February 20, 2007 |
Media and Investor Relations Contact: |
Shruthi
Dyapaiah
|
1-913-327-4225
|
sdyapaiah@euronetworldwide.com
|
·
|
Consolidated
revenues of $629.2 million, an increase of 18% over 2005 revenues
of
$531.2 million.
|
·
|
Adjusted
EBITDA of $88.8 million, an increase of 17% over 2005 Adjusted
EBITDA of
$75.8 million.
|
·
|
Operating
income of $52.3 million, a 9% increase over 2005 operating income
of $47.8
million.
|
·
|
Net
income of $46.3 million, or $1.17 diluted earnings per share, compared
to
net income for 2005 of $22.4 million, or $0.61 diluted earnings
per
share.
|
·
|
In
accordance with Statement of Financial Accounting Standards No.
123R
(“SFAS 123R”), which the Company retroactively adopted on January 1, 2006,
share-based compensation expense was $7.4 million for 2006, compared
to
$5.6 million for 2005.
|
·
|
Net
income in 2006 included a foreign exchange gain of $10.2 million;
excluding this gain and the share-based compensation expense noted
above,
diluted earnings per share were
$1.07.
Net income in 2005 included a foreign exchange loss of $7.5 million
and a
$0.6 million loss on discontinued operations; excluding these losses
and
the share-based compensation expense noted above, diluted earnings
per
share were $0.96.
|
·
|
Total
of 921.7 million transactions processed in 2006, an increase of
30% over
the 709.6 million transactions processed in
2005.
|
·
|
Consolidated
revenues of $166.8 million, compared to $144.3 million for the
fourth
quarter 2005 revenues.
|
·
|
Adjusted
EBITDA of $24.0 million, compared to $21.0 million for the fourth
quarter
2005.
|
·
|
Operating
income of $14.6 million, compared to $13.5 million in the fourth
quarter
2005.
|
·
|
Net
income of $15.4 million, or $0.38 diluted earnings per share, compared
to
net income for the fourth quarter 2005 of $7.2 million, or $0.19
diluted
earnings per share.
|
·
|
Share-based
compensation expense was $1.6 million for the fourth quarters of
2006 and
2005.
|
·
|
The
fourth quarter 2006 net income included a foreign exchange gain
of $4.7
million; excluding this gain and the share-based compensation noted
above,
diluted earnings per share were $0.30. The fourth quarter 2005
net income
included a foreign exchange loss of $0.8 million and a $0.6 million
loss
on discontinued operations; excluding these losses and the share-based
compensation noted above, diluted earnings per share were
$0.26.
|
·
|
Total
of 260.2 million transactions processed in the fourth quarter of
2006,
compared to 203.1 million transactions processed in the fourth
quarter of
2005.
|
·
|
Annual
revenues for 2006 of $130.7 million, compared to $105.6 million
for
2005.
|
·
|
Adjusted
EBITDA for 2006 of $44.6 million, compared to $35.3 million for
2005.
|
·
|
Operating
income for 2006 of $31.8 million, compared to $25.6 million for
2005.
|
·
|
Transactions
processed for the full year 2006 of 463.6 million, compared to
361.5
million transactions processed for the full year
2005.
|
·
|
Fourth
quarter 2006 revenues of $35.3 million, compared to $29.3 million
for the
fourth quarter 2005.
|
·
|
Fourth
quarter 2006 Adjusted EBITDA of $11.8 million, compared to $9.6
million
for the fourth quarter 2005.
|
·
|
Fourth
quarter 2006 operating income of $8.2 million, compared to $7.2
million
for the fourth quarter 2005.
|
·
|
Transactions
processed for the fourth quarter 2006 of 128.1 million, compared
to 103.1
million transactions processed for the fourth quarter
2005.
|
·
|
Annual
revenues for 2006 of $470.9 million, compared to $411.3 million
for 2005.
|
·
|
Adjusted
EBITDA for 2006 of $48.9 million, compared to $46.5 million for
2005.
|
·
|
Operating
income for 2006 was $34.8 million, compared to $34.7 million for
2005.
|
·
|
Transactions
processed for the full year 2006 of 458.1 million, compared to
348.1
million transactions processed for the full year
2005.
|
·
|
Fourth
quarter 2006 revenues of $124.6 million, compared to $111.7 million
for
the fourth quarter 2005.
|
·
|
Fourth
quarter 2006 Adjusted EBITDA of $12.4 million, compared to $12.6
million
for the fourth quarter 2005.
|
·
|
Fourth
quarter 2006 operating income of $8.8 million, compared to $9.3
million
for the fourth quarter 2005.
|
·
|
Transactions
processed for the fourth quarter 2006 of 132.1 million, compared
to 100.0
million transactions processed for the fourth quarter
2005.
|
·
|
Annual
revenues for 2006 of $27.6 million, compared to $14.3 million for
2005.
|
·
|
Adjusted
EBITDA for 2006 of $6.0 million, compared to $4.6 million for
2005.
|
·
|
Operating
income for 2006 of $4.0 million, compared to $3.5 million for
2005.
|
·
|
Fourth
quarter 2006 revenues of $6.9 million, compared to $3.3 million
for the
fourth quarter 2005.
|
·
|
Fourth
quarter 2006 Adjusted EBITDA of $1.9 million, compared to $1.2
million for
the fourth quarter 2005.
|
·
|
Fourth
quarter 2006 operating income of $1.3 million, compared to $0.9
million
reported in the fourth quarter 2005
|
EURONET
WORLDWIDE, INC.
|
|||||||||||||
Consolidated
Statement of Income
|
|||||||||||||
(unaudited
- in millions, except share and per share data)
|
|||||||||||||
Year
Ended
|
Three
Months Ended
|
||||||||||||
December
31,
|
December
31,
|
||||||||||||
2006
|
2005
*
|
2006
|
2005
*
|
||||||||||
Revenues:
|
|||||||||||||
EFT
Processing
|
$
|
130.7
|
$
|
105.6
|
$
|
35.3
|
$
|
29.3
|
|||||
Prepaid
Processing
|
470.9
|
411.3
|
124.6
|
111.7
|
|||||||||
Software
Solutions
|
27.6
|
14.3
|
6.9
|
3.3
|
|||||||||
Total
revenues
|
629.2
|
531.2
|
166.8
|
144.3
|
|||||||||
Operating
expenses:
|
|||||||||||||
Direct
operating costs
|
435.5
|
370.8
|
115.9
|
100.4
|
|||||||||
Salaries
and benefits
|
74.2
|
58.7
|
18.1
|
15.5
|
|||||||||
Selling,
general and administrative
|
38.1
|
31.5
|
10.4
|
9.0
|
|||||||||
Depreciation
and amortization
|
29.1
|
22.4
|
7.8
|
5.9
|
|||||||||
Total
operating expenses
|
576.9
|
483.4
|
152.2
|
130.8
|
|||||||||
Operating
income
|
52.3
|
47.8
|
14.6
|
13.5
|
|||||||||
Other
income (expense):
|
|||||||||||||
Interest
income
|
13.7
|
5.9
|
4.0
|
2.5
|
|||||||||
Interest
expense
|
(14.8
|
)
|
(8.5
|
)
|
(3.7
|
)
|
(3.6
|
)
|
|||||
Income
from unconsolidated affiliates
|
0.7
|
1.2
|
0.1
|
0.3
|
|||||||||
Foreign
exchange gain (loss), net
|
10.2
|
(7.5
|
)
|
4.7
|
(0.8
|
)
|
|||||||
Total
other income (expense)
|
9.8
|
(8.9
|
)
|
5.1
|
(1.6
|
)
|
|||||||
Income
before income taxes and minority interest
|
62.1
|
38.9
|
19.7
|
11.9
|
|||||||||
Income
tax expense
|
(14.8
|
)
|
(15.0
|
)
|
(4.0
|
)
|
(3.8
|
)
|
|||||
Minority
interest
|
(1.0
|
)
|
(0.9
|
)
|
(0.3
|
)
|
(0.3
|
)
|
|||||
Income
from continuing operations
|
46.3
|
23.0
|
15.4
|
7.8
|
|||||||||
Loss
from discontinued operations
|
-
|
(0.6
|
)
|
-
|
(0.6
|
)
|
|||||||
Net
income
|
$
|
46.3
|
$
|
22.4
|
$
|
15.4
|
$
|
7.2
|
|||||
Earnings
per share - diluted:
|
|||||||||||||
Continuing
operations
|
$
|
1.17
|
$
|
0.62
|
$
|
0.38
|
$
|
0.21
|
|||||
Discontinued
operations
|
-
|
(0.01
|
)
|
-
|
(0.02
|
)
|
|||||||
Earnings
per Share
|
$
|
1.17
|
$
|
0.61
|
$
|
0.38
|
$
|
0.19
|
|||||
Diluted
weighted average shares outstanding
|
42,456,137
|
36,831,320
|
42,705,488
|
41,660,550
|
|||||||||
*
Adjusted to include the retroactively applied effects of SFAS No.
123R
share-based compensation expense.
|
EURONET
WORLDWIDE, INC.
|
|||||||
Consolidated
Summary Balance Sheets
|
|||||||
(unaudited
- in millions)
|
|||||||
As
of
|
As
of
|
||||||
December
31,
|
December
31,
|
||||||
2006
|
2005
*
|
||||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
321.1
|
$
|
219.9
|
|||
Restricted
cash
|
80.7
|
73.9
|
|||||
Inventory
- PINs and other
|
49.5
|
25.6
|
|||||
Trade
accounts receivable, net
|
212.6
|
166.5
|
|||||
Other
current assets, net
|
24.6
|
23.0
|
|||||
Total
current assets
|
688.5
|
508.9
|
|||||
Property
and equipment, net
|
55.2
|
44.9
|
|||||
Goodwill
and intangible assets, net
|
326.2
|
317.9
|
|||||
Other
assets, net
|
38.2
|
22.7
|
|||||
Total
assets
|
$
|
1,108.1
|
$
|
894.4
|
|||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable and other current liabilities
|
$
|
393.1
|
$
|
299.0
|
|||
Short-term
borrowings and current portions of capital lease and long-term
debt
obligations
|
11.0
|
28.3
|
|||||
Total
current liabilities
|
404.1
|
327.3
|
|||||
Debt
obligations, net of current portion
|
349.1
|
315.0
|
|||||
Capital
lease obligations, net of current portion
|
13.4
|
12.2
|
|||||
Deferred
income tax
|
43.1
|
25.2
|
|||||
Other
long-term liabilities
|
1.8
|
1.2
|
|||||
Minority
interest
|
8.3
|
7.1
|
|||||
Total
liabilities
|
819.8
|
688.0
|
|||||
Stockholders'
equity
|
288.3
|
206.4
|
|||||
Total
liabilities and stockholders' equity
|
$
|
1,108.1
|
$
|
894.4
|
|||
*
Adjusted to include the retroactively applied effects of SFAS No.
123R
share-based compensation expense.
|
EURONET
WORLDWIDE, INC.
|
|||||||||||||
Reconciliation
of Operating Income to Adjusted EBITDA by Segment
|
|||||||||||||
(unaudited
- in millions)
|
|||||||||||||
Year
Ended December 31, 2006
|
|||||||||||||
EFT
|
Prepaid
|
Software
|
|||||||||||
Processing
|
Processing
|
Solutions
|
Consolidated
|
||||||||||
Operating
Income
|
$
|
31.8
|
$
|
34.8
|
$
|
4.0
|
$
|
52.3
|
|||||
Add:
Depreciation and amortization
|
12.8
|
14.0
|
2.0
|
29.1
|
|||||||||
Add:
Share-based compensation
|
-
|
0.1
|
-
|
7.4
|
|||||||||
Earnings
before interest, taxes, depreciation,
|
|||||||||||||
amortization
and share-based
|
|||||||||||||
compensation
(Adjusted EBITDA)
|
$
|
44.6
|
$
|
48.9
|
$
|
6.0
|
$
|
88.8
|
|
Year
Ended December 31, 2005 *
|
||||||||||||
|
EFT
|
Prepaid
|
Software
|
||||||||||
|
Processing
|
Processing
|
Solutions
|
Consolidated
|
|||||||||
Operating
Income
|
$
|
25.6
|
$
|
34.7
|
$
|
3.5
|
$
|
47.8
|
|||||
Add:
Depreciation and amortization
|
9.5
|
11.7
|
1.1
|
22.4
|
|||||||||
Add:
Share-based compensation
|
0.2
|
0.1
|
-
|
5.6
|
|||||||||
Earnings
before interest, taxes, depreciation,
|
|||||||||||||
amortization
and share-based
|
|||||||||||||
compensation
(Adjusted EBITDA)
|
$
|
35.3
|
$
|
46.5
|
$
|
4.6
|
$
|
75.8
|
|||||
*
Adjusted to include the retroactively applied effects of SFAS No.
123R
share-based compensation expense.
|
EURONET
WORLDWIDE, INC.
|
|||||||||||||
Reconciliation
of Operating Income to Adjusted EBITDA by Segment
|
|||||||||||||
(unaudited
- in millions)
|
|||||||||||||
Three
Months Ended December 31, 2006
|
|||||||||||||
EFT
|
Prepaid
|
Software
|
|||||||||||
Processing
|
Processing
|
Solutions
|
Consolidated
|
||||||||||
Operating
Income
|
$
|
8.2
|
$
|
8.8
|
$
|
1.3
|
$
|
14.6
|
|||||
Add:
Depreciation and amortization
|
3.6
|
3.6
|
0.6
|
7.8
|
|||||||||
Add:
Share-based compensation
|
-
|
-
|
-
|
1.6
|
|||||||||
Earnings
before interest, taxes, depreciation,
|
|||||||||||||
amortization
and share-based
|
|||||||||||||
compensation
(Adjusted EBITDA)
|
$
|
11.8
|
$
|
12.4
|
$
|
1.9
|
$
|
24.0
|
|
Three
Months Ended December 31, 2005 *
|
||||||||||||
|
EFT
|
Prepaid
|
Software
|
||||||||||
|
Processing
|
Processing
|
Solutions
|
Consolidated
|
|||||||||
Operating
Income
|
$
|
7.2
|
$
|
9.3
|
$
|
0.9
|
$
|
13.5
|
|||||
Add:
Depreciation and amortization
|
2.4
|
3.3
|
0.3
|
5.9
|
|||||||||
Add:
Share-based compensation
|
-
|
-
|
-
|
1.6
|
|||||||||
Earnings
before interest, taxes, depreciation,
|
|||||||||||||
amortization
and share-based
|
|||||||||||||
compensation
(Adjusted EBITDA)
|
$
|
9.6
|
$
|
12.6
|
$
|
1.2
|
$
|
21.0
|
|||||
*
Adjusted to include the retroactively applied effects of SFAS No.
123R
share-based compensation expense.
|
EURONET
WORLDWIDE, INC.
|
|||||||||||||
Reconciliation
of Prepaid Processing Segment Results
|
|||||||||||||
to
Prepaid Processing Segment Results excluding Spanish prepaid and
money
transfer businesses
|
|||||||||||||
(unaudited
- in millions)
|
|||||||||||||
Year
Ended December 31,
|
|||||||||||||
2006
|
2005
*
|
||||||||||||
Total
|
Operating
|
Total
|
Operating
|
||||||||||
Revenues
|
Income
|
Revenues
|
Income
|
||||||||||
Prepaid
Processing Segment
|
$
|
470.9
|
$
|
34.8
|
$
|
411.3
|
$
|
34.7
|
|||||
Less:
Spanish prepaid and money transfer businesses
|
(45.0
|
)
|
2.7
|
(46.9
|
)
|
(3.7
|
)
|
||||||
Prepaid
Processing Segment excluding
|
|||||||||||||
Spanish
prepaid and money transfer businesses
|
$
|
425.9
|
$
|
37.5
|
$
|
364.4
|
$
|
31.0
|
|||||
*
Adjusted to include the retroactively applied effects of SFAS No.
123R
share-based compensation expense.
|
EURONET
WORLDWIDE, INC.
|
|||||||||||||
Reconciliation
of Prepaid Processing Segment Results
|
|||||||||||||
to
Prepaid Processing Segment Results excluding Spanish prepaid and
money
transfer businesses
|
|||||||||||||
(unaudited
- in millions)
|
|||||||||||||
|
Three
Months Ended December 31,
|
||||||||||||
2006
|
2005
*
|
||||||||||||
|
Total
|
Operating
|
Total
|
Operating
|
|||||||||
|
Revenues
|
Income
|
Revenues
|
Income
|
|||||||||
Prepaid
Processing Segment
|
$
|
124.6
|
$
|
8.8
|
$
|
111.7
|
$
|
9.3
|
|||||
Less:
Spanish prepaid and money transfer businesses
|
(10.4
|
)
|
1.5
|
(13.2
|
)
|
(0.8
|
)
|
||||||
Prepaid
Processing Segment excluding
|
|||||||||||||
Spanish
prepaid and money transfer businesses
|
$
|
114.2
|
$
|
10.3
|
$
|
98.5
|
$
|
8.5
|
|||||
*
Adjusted to include the retroactively applied effects of SFAS No.
123R
share-based compensation expense.
|
EURONET
WORLDWIDE, INC.
|
|||||||||||||
Reconciliation
of Net Income Excluding Foreign Exchange and Share-Based Compensation
|
|||||||||||||
(unaudited
- in millions, except share and per share data)
|
|||||||||||||
Year
Ended
|
Three
Months Ended
|
||||||||||||
December
31,
|
December
31,
|
||||||||||||
2006
|
2005
*
|
2006
|
2005
*
|
||||||||||
Net
income
|
$
|
46.3
|
$
|
22.4
|
$
|
15.4
|
$
|
7.2
|
|||||
Convertible
debt issuance costs (1)
|
0.9
|
-
|
0.2
|
0.2
|
|||||||||
Interest
on convertible debt (1)
|
2.3
|
-
|
0.6
|
0.6
|
|||||||||
Earnings
applicable for common shareholders
|
49.5
|
22.4
|
16.2
|
8.0
|
|||||||||
Loss
from discontinued operations
|
-
|
0.6
|
-
|
0.6
|
|||||||||
Loss
on early debt retirement
|
-
|
-
|
-
|
-
|
|||||||||
Foreign
exchange loss (gain)
|
(10.2
|
)
|
7.5
|
(4.7
|
)
|
0.8
|
|||||||
Share-based
compensation
|
7.4
|
5.6
|
1.6
|
1.6
|
|||||||||
Earnings
applicable for common shareholders before
|
|||||||||||||
foreign
exchange gains/losses and share-based compensation
|
$
|
46.7
|
$
|
36.1
|
$
|
13.1
|
$
|
11.0
|
|||||
Adjusted
earnings per share - diluted (2)
|
$
|
1.07
|
$
|
0.96
|
$
|
0.30
|
$
|
0.26
|
|||||
Diluted
weighted average shares outstanding (1)
|
42,456,137
|
36,831,320
|
42,705,488
|
41,660,550
|
|||||||||
Effect
of unrecognized share-based compensation on diluted shares outstanding
|
1,079,105
|
690,347
|
1,032,380
|
688,354
|
|||||||||
Adjusted
diluted weighted average shares outstanding
|
43,535,242
|
37,521,667
|
43,737,868
|
42,348,904
|
|||||||||
*
Adjusted to include the retroactively applied effects of SFAS No.
123R
share-based compensation expense.
|
|||||||||||||
(1)
As required by GAAP, convertible debt issuance and interest costs
are
excluded from income for the purpose of calculating diluted earnings
per share for any period when the convertible debentures, if converted,
would be dilutive to earnings per share.
|
|||||||||||||
Further,
the convertible shares are treated as if all were outstanding for
the
period.
|
|||||||||||||
(2)
Adjusted income per share is a non-GAAP measure that should be
considered
in addition to, and not as a substitute for, earnings per
share computed in accordance with GAAP.
|