2024 Q1 Form 10-K Financial Statement

#000121390024016204 Filed on February 22, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $857.0M $957.7M $3.688B
YoY Change 8.87% 10.63% 9.8%
Cost Of Revenue $533.7M $596.4M $2.223B
YoY Change 8.56% 11.84% 10.14%
Gross Profit $323.3M $361.3M $1.465B
YoY Change 9.37% 8.68% 9.29%
Gross Profit Margin 37.72% 37.73% 39.73%
Selling, General & Admin $226.6M $230.4M $899.7M
YoY Change 201.33% 5.08% 215.49%
% of Gross Profit 70.09% 63.77% 61.4%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $32.70M $33.50M $132.9M
YoY Change -0.61% -1.7% 30.94%
% of Gross Profit 10.11% 9.27% 9.07%
Operating Expenses $259.3M $263.9M $1.033B
YoY Change -65.04% 4.17% -65.27%
Operating Profit $64.00M $97.40M $432.6M
YoY Change 40.35% 23.13% 12.26%
Interest Expense -$21.70M $200.0K -$32.40M
YoY Change -314.85% -109.93% -186.2%
% of Operating Profit -33.91% 0.21% -7.49%
Other Income/Expense, Net -$100.0K $300.0K $200.0K
YoY Change -98.84% -59.89% -100.32%
Pretax Income $42.20M $97.90M $400.4M
YoY Change 14.05% 25.78% 24.12%
Income Tax $16.00M $28.40M $120.9M
% Of Pretax Income 37.91% 29.01% 30.19%
Net Earnings $26.20M $69.30M $279.7M
YoY Change 30.35% 2.28% 21.09%
Net Earnings / Revenue 3.06% 7.24% 7.58%
Basic Earnings Per Share $0.57 $5.77
Diluted Earnings Per Share $0.54 $1.41 $5.42
COMMON SHARES
Basic Shares Outstanding 45.78M shares 46.12M shares 48.48M shares
Diluted Shares Outstanding 48.96M shares 51.60M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.836B $1.779B $1.779B
YoY Change 8.44% 8.05% 8.05%
Cash & Equivalents $1.236B $1.254B $1.254B
Short-Term Investments
Other Short-Term Assets $1.684B $2.013B $2.013B
YoY Change 16.64% 11.26% 11.26%
Inventory
Prepaid Expenses
Receivables $407.6M $370.6M $370.6M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $3.928B $4.163B $4.163B
YoY Change 17.54% 11.7% 11.7%
LONG-TERM ASSETS
Property, Plant & Equipment $468.4M $474.7M $474.7M
YoY Change 40.83% 41.03% -2.38%
Goodwill $848.8M $847.5M
YoY Change 1.74% 2.31%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $239.8M $241.9M $241.9M
YoY Change 35.86% 38.96%
Total Long-Term Assets $1.766B $1.732B $1.732B
YoY Change 5.8% 3.26% 3.26%
TOTAL ASSETS
Total Short-Term Assets $3.928B $4.163B $4.163B
Total Long-Term Assets $1.766B $1.732B $1.732B
Total Assets $5.694B $5.894B $5.894B
YoY Change 13.63% 9.08% 9.08%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $816.4M $816.9M $816.9M
YoY Change 6.25% 267.23% -6.91%
Accrued Expenses $50.30M $50.30M $50.30M
YoY Change -81.78% -83.87% -96.13%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $676.8M $151.9M $151.9M
YoY Change 24966.67% 4729.89% 4729.89%
Total Short-Term Liabilities $2.957B $2.701B $2.701B
YoY Change 55.2% 14.72% 14.72%
LONG-TERM LIABILITIES
Long-Term Debt $1.261B $1.718B $1.718B
YoY Change -23.22% 6.75% 6.75%
Other Long-Term Liabilities $181.0M $179.4M $179.4M
YoY Change 188.68% 175.84% 6.99%
Total Long-Term Liabilities $1.442B $1.897B $1.897B
YoY Change -15.43% 13.32% 6.77%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.957B $2.701B $2.701B
Total Long-Term Liabilities $1.442B $1.897B $1.897B
Total Liabilities $4.450B $4.645B $4.645B
YoY Change 19.03% 11.67% 11.68%
SHAREHOLDERS EQUITY
Retained Earnings $1.654B $1.628B
YoY Change 20.88% 20.74%
Common Stock $1.326B $1.313B
YoY Change 4.59% 4.77%
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.488B $1.488B
YoY Change 31.28% 34.53%
Treasury Stock Shares
Shareholders Equity $1.244B $1.250B $1.250B
YoY Change
Total Liabilities & Shareholders Equity $5.694B $5.894B $5.894B
YoY Change 13.63% 9.08% 9.08%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income $26.20M $69.30M $279.7M
YoY Change 30.35% 2.28% 21.09%
Depreciation, Depletion And Amortization $32.70M $33.50M $132.9M
YoY Change -0.61% -1.7% 30.94%
Cash From Operating Activities $30.00M $135.7M $643.1M
YoY Change 809.09% -54.71% -14.06%
INVESTING ACTIVITIES
Capital Expenditures $23.80M $28.10M $94.40M
YoY Change 27.96% 4.89% -9.45%
Acquisitions $69.40M $1.300M
YoY Change -34800.0% -99.62%
Other Investing Activities $300.0K -$54.90M -$7.200M
YoY Change -115.0% 401.51% 520.69%
Cash From Investing Activities -$96.80M -$83.00M -$157.6M
YoY Change 434.81% 119.94% -65.27%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $81.30M 65.10M -$143.2M
YoY Change -1947.73% -137.27% 12309.01%
NET CHANGE
Cash From Operating Activities $30.00M 135.7M $643.1M
Cash From Investing Activities -$96.80M -83.00M -$157.6M
Cash From Financing Activities $81.30M 65.10M -$143.2M
Net Change In Cash -$32.70M 117.8M $256.2M
YoY Change -38.42% 35.05% -369.0%
FREE CASH FLOW
Cash From Operating Activities $30.00M $135.7M $643.1M
Capital Expenditures $23.80M $28.10M $94.40M
Free Cash Flow $6.200M $107.6M $548.7M
YoY Change -140.52% -60.57% -14.8%

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<div style="font-size: 10pt; line-height: 1.2; margin: 0pt; text-align: justify;"><span style="font-family: 'times new roman', times; font-size: 10pt; line-height: inherit;"><a class="customBookmark" href="#TOC" id="BBOP_9VQREBVQKW00000000000000000000" style="text-decoration: none; color: #000000; cursor: default; outline: none; pointer-events: none;"><span style="font-weight: bold; line-height: inherit;">(2) </span><span style="font-weight: bold; line-height: inherit;">Basis of Preparation</span></a></span></div> <p style="font-size: 10pt; line-height: 1.2; margin: 0pt; text-align: justify;"><br/></p> <p style="font-size: 10pt;line-height: 1.2;margin: 0px;text-align: justify;text-indent: 0px;font-family: 'times new roman', times;"><span style="font-family: 'times new roman', times; font-size: 10pt; line-height: inherit;">The Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The Consolidated Financial Statements include the accounts of Euronet and its wholly owned and majority owned subsidiaries and all significant intercompany balances and transactions have been eliminated. Euronet's investments in companies that it does not control, but has the ability to significantly influence, are accounted for under the equity method. Euronet has no variable interest entities. Results from operations related to entities acquired during the periods covered by the Consolidated Financial Statements are reflected from the effective date of acquisition.</span></p> <p style="font-size: 10pt; line-height: 1.2; margin: 0px; text-align: justify; text-indent: 0px;"><br/></p> <p style="font-size: 10pt; line-height: 1.2; margin: 0px; text-align: justify; text-indent: 0px;"><span style="font-family: 'times new roman', times; font-size: 10pt; line-height: inherit;">The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires that management make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Significant items subject to such estimates and assumptions include computing income taxes, contingent purchase price consideration, estimating the useful lives and potential impairment of long-lived assets and goodwill, as well as allocating the purchase price to assets acquired and liabilities assumed in acquisitions and revenue recognition. Actual results could differ from those estimates. </span></p> <p style="font-size: 10pt; line-height: 1.2; margin: 0px; text-align: justify; text-indent: 0px;"><br/></p> <p style="font-size: 10pt; line-height: 1.2; margin: 0px; text-align: justify; text-indent: 0px;"><span style="font-family: 'times new roman', times; font-size: 10pt; line-height: inherit;"><span style="font-style: italic; font-weight: bold; line-height: inherit;">Seasonality</span> <br/></span></p> <p style="font-size: 10pt; line-height: 1.2; margin: 0px; text-align: justify; text-indent: 0px;"><br/></p> <p style="font-size: 10pt; line-height: 1.2; margin: 0px; text-align: justify; text-indent: 0px;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 10pt; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: left; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; line-height: inherit; display: inline !important;">Euronet’s EFT Processing Segment normally experiences its heaviest demand for DCC services during the third quarter of the fiscal year, normally coinciding with the tourism season. Additionally, the EFT Processing and epay Segments are 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. 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.</span></p>
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CY2023 us-gaap Derivatives Methods Of Accounting Hedging Derivatives
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<div style="border-right: none; border-left: none; line-height: 1.2;"> <p style="font-size: 10pt; line-height: 1; margin: 0pt 0pt 8pt; text-align: justify; text-indent: 0pt;"><span style="font-family: 'times new roman', times; font-size: 10pt; font-style: italic; font-weight: bold; line-height: inherit;">Accounting for derivative instruments and hedging activities</span></p> </div> <div style="border-left: none; border-right: none; line-height: 1;"> <div style="border-right: none; border-left: none;"> <div style="font-size: 10pt; border-left: none; border-right: none;"> <p style="font-size: 10pt; line-height: 1.2; margin: 0pt 0pt 8pt; text-align: justify; text-indent: 0pt;"><span style="font-family: 'times new roman', times; font-size: 10pt; line-height: inherit;"><span style="line-height: inherit;">The Company accounts for derivative instruments and hedging activities in accordance with ASC Topic <span>815</span>,</span> <span style="font-style: italic; line-height: inherit;"> Derivatives and Hedging </span> <span style="line-height: inherit;">("ASC <span>815</span>"), which requires that all derivative instruments be recognized as either assets or liabilities on the balance sheet at fair value. Primarily in the Money Transfer Segment, the Company enters into foreign currency derivative contracts, mainly</span><span style="line-height: inherit;"> forward contracts, to offset foreign currency exposure related to money transfer settlement assets and liabilities in currencies other than the U.S. dollar, derivative contracts written to its customers arising from its cross-currency money transfer services and certain assets and liability positions denominated in currencies other than the U.S. dollar. These contracts are considered derivative instruments under the provisions of ASC <span>815</span>; however, the Company does not designate such instruments as hedges for accounting purposes. Accordingly, changes in the value of these contracts are recognized immediately as a component of foreign currency exchange gain (loss), net in the Consolidated Statements of Operations.</span></span></p> <p style="font-size: 10pt; line-height: 1.2; margin: 0pt; text-align: justify;"><span style="font-family: 'times new roman', times; font-size: 10pt; line-height: inherit;"><span style="line-height: inherit;">Cash flows resulting from derivative instruments are included in operating activities in the Company's Consolidated Statements of Cash Flows. The Company enters into derivative instruments with highly credit-worthy financial institutions and does not use derivative instruments for trading or speculative purposes. See Note <span>13</span>, Derivative Instruments and Hedging Activities, to the Consolidated Financial Statements for further discussion of derivative instruments</span><span style="line-height: inherit;">.</span></span></p> </div> </div> </div>
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