TIDMWPY
RNS Number : 9124X
Worldpay, Inc
02 May 2019
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH
JURISDICTION
FOR IMMEDIATE RELEASE
May 2, 2019
Worldpay Reports First Quarter 2019 Results
Strong Business Momentum and New Sales Generated Exceptional
Financial Results
Raising Full Year Guidance on Strong Revenue Growth and
Increasing Cost Synergies
CINCINNATI and LONDON, May 2, 2019 - Worldpay, Inc. (NYSE: WP,
LSE: WPY) ("Worldpay" or the "Company") today announced financial
results for the first quarter ended March 31, 2019. Revenue
increased 14% in the first quarter to $970.0 million as compared to
$850.7 million in the prior year period. On a GAAP basis, net
income per diluted share attributable to Worldpay, Inc. increased
to $0.12 as compared to $(0.36) in the prior year period. Adjusted
net income per share increased to $0.94 as compared to $0.81 in the
prior year period. (See Schedule 1 for net income per diluted share
attributable to Worldpay, Inc. and Schedule 2 for adjusted net
income per share.)
"We delivered exceptional results, reflecting consistent
business fundamentals and strong new sales performance, " said
Charles Drucker, chairman and chief executive officer of Worldpay.
"We signed 16 additional cross-sell wins, keeping us on track to
achieve $100 million in revenue synergies, and we won several
strategic new clients."
Worldpay, Inc. First Quarter 2019 Results
(unaudited)
(in millions, except share data)
Three Months Ended
March March
31, 2019 31, 2018(1) % Change
--------------- ----------------- ---------
Revenue $ 970.0 $ 850.7 14%
Technology Solutions 427.3 336.4 27%
Merchant Solutions 459.4 432.2 6%
Issuer Solutions 83.3 82.1 1%
Adjusted EBITDA $ 446.1 $ 374.1 19%
Adjusted EBITDA Margin 46.0% 44.0%
GAAP Net income (loss) attributable to Worldpay,
Inc. $ 36.4 $ (97.6) NM
GAAP Net income (loss) per diluted share attributable
to Worldpay, Inc. $ 0.12 $ (0.36) NM
Adjusted net income attributable to Worldpay,
Inc. $ 293.0 $ 236.7 24%
Adjusted net income per share attributable to
Worldpay, Inc $ 0.94 $ 0.81 16%
(1) Excludes contribution from Worldpay Group plc results for
the period prior to the transaction closing (January 1-January 15,
2018).
Revenue
Revenue increased 14% in the first quarter to $970.0 million as
compared to $850.7 million in the prior year period. On an
underlying basis, total Company and total Merchant (excludes Issuer
Solutions) revenue increased by 9% and 10%, respectively, when
excluding cryptocurrency revenue grow-over, foreign currency
headwinds and adjusting for the prior year stub period from January
1 to January 15, 2018.
Adjusted EBITDA
Adjusted EBITDA was $446.1 million or 46.0% of revenue in the
first quarter, representing 200 basis points of adjusted EBITDA
margin expansion as compared to the prior year period, including
$29 million in cost synergies realized during the quarter.
Cost Synergies
Based on the Company's substantial progress toward completing
post-merger integration, Worldpay now expects to achieve $250
million in annualized cost synergies by year-end 2019, up from its
previous expectation to achieve $200 million in annualized cost
synergies by year-end 2020. In addition, Worldpay is increasing its
in-year 2019 cost synergies forecast to $180-$190 million from
$130-$140 million.
Worldpay, Inc. Second Quarter and Full-Year Financial Outlook
(in millions, except share data)
Second Quarter Financial
Outlook Full Year Financial Outlook
------------------------------
Three Months Ended June
30, Year Ended December 31,
2018 Actual
2019 Outlook 2018 Actual 2019 Outlook (1)
---------------- ------------ ---------------- ------------
Revenue $1,055 - $1,070 $1,007 $4,215 - $4,275 $3,925
GAAP Net income (loss)
per diluted share attributable
to Worldpay, Inc. $0.30 - $0.38 $(0.01) $1.05 - $1.55 $0.04
Adjusted net income per
share $1.16 - $1.19 $1.04 $4.60 - $4.70 $4.05
(1) Excludes contribution from Worldpay Group plc results for
the period prior to the transaction closing (January 1-January 15,
2018).
Merger Agreement
On March 17, 2019, Worldpay and Fidelity National Information
Services, Inc. ("FIS") announced that their boards of directors
unanimously approved a definitive merger agreement pursuant to
which Worldpay will combine with FIS. Following the closing of the
proposed transaction (the "Merger"), current Worldpay stockholders
will own 47% of the combined company and current FIS shareholders
will own 53% of the combined company, on a fully diluted basis. The
proposed Merger is subject to customary closing conditions,
including receipt of required stockholder and regulatory approvals,
and is expected to close in the third quarter of 2019.
Earnings Conference Call and Audio Webcast
Due to its pending merger with FIS, Worldpay will not host a
conference call or webcast to review the first quarter 2019
financial results.
About Worldpay, Inc.
Worldpay, Inc. (NYSE: WP; LSE: WPY) is a leading payments
technology company with unique capability to power global
omni-commerce. With an integrated technology platform, Worldpay
offers a comprehensive suite of products and services, delivered
globally through a single provider. Worldpay processes over 40
billion transactions annually, supporting more than 300 payment
types across 146 countries and 126 currencies. The company is
focused on expanding into high-growth markets and customer
segments, including global eCommerce, integrated payments and B2B.
Visit us at www.worldpay.com
Non-GAAP and Pro Forma Financial Measures
This earnings release presents non-GAAP and pro forma financial
information including adjusted EBITDA, Underlying EBITDA, adjusted
net income, and adjusted net income per share. These are important
financial performance measures for the Company, but are not
financial measures as defined by GAAP. The presentation of this
financial information is not intended to be considered in isolation
of or as a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP. The
Company uses these non-GAAP and adjusted financial performance
measures for financial and operational decision making and as a
means to evaluate period-to-period comparisons. The Company
believes that they provide useful information about operating
results, enhance the overall understanding of past financial
performance and future prospects, and allow for greater
transparency with respect to key metrics used by management in its
financial and operational decision making. Reconciliations of these
measures to the most directly comparable GAAP financial measures
are presented in the attached schedules.
Forward-Looking Statements
This release contains forward-looking statements that are
subject to risks and uncertainties. All statements other than
statements of historical fact or relating to present facts or
current conditions included in this release are forward-looking
statements including any statements regarding guidance and
statements of a general economic or industry specific nature.
Forward-looking statements give our current expectations and
projections relating to our financial condition, results of
operations, guidance, plans, objectives, future performance and
business. You can identify forward-looking statements by the fact
that they do not relate strictly to historical or current facts.
These statements may include words such as "anticipate,"
"estimate," "expect," "project," "plan," "intend," "believe,"
"may," "should," "can have," "likely" and other words and terms of
similar meaning in connection with any discussion of the timing or
nature of future operating or financial performance or other
events.
The forward-looking statements contained in this release are
based on assumptions that we have made in light of our industry
experience and our perceptions of historical trends, current
conditions, expected future developments and other factors we
believe are appropriate under the circumstances. As you review and
consider information presented herein, you should understand that
these statements are not guarantees of future performance or
results. These statements depend upon future events and are subject
to risks, uncertainties (many of which are beyond our control) and
assumptions. Although we believe that these forward-looking
statements are based on reasonable assumptions, you should be aware
that many factors or events could affect our actual future
performance, operations or results and cause them to differ
materially from those anticipated in the forward-looking
statements. Certain of these factors and other risks are discussed
in our and FIS's filings with the SEC and include, but are not
limited to: (i) uncertainties as to the timing of the completion of
the Merger; (ii) uncertainties as to whether the Merger will be
completed; (iii) changes in ours or FIS's share price before the
completion of the Merger; (iv) that the businesses of Worldpay and
FIS will not be integrated successfully or that such integration
may take longer than anticipated; (v) that the cost savings and any
synergies from the Merger may not be fully realized or may take
longer to realize than expected; (vi) potential operating costs,
customer loss and business disruption occurring prior to completion
of the Merger or if the Merger is not completed; (vii) the effect
of the announcement of the Merger on our or FIS's business
relationships, operating results and business generally; (viii) the
failure to satisfy conditions to completion of the Merger,
including the receipt of all required regulatory, stockholder and
shareholder approvals; (ix) difficulty in retaining certain key
employees as a result of the Merger; (x) our ability to adapt to
developments and change in our industry; (xi) competition; (xii)
unauthorized disclosure of data or security breaches; (xiii)
systems failures or interruptions; (xiv) implementation of our new
acquiring platform; (xv) our ability to expand our market share or
enter new markets; (xvi) the outcome and negotiations in respect of
Brexit; (xvii) our ability to successfully integrate the businesses
of our predecessor companies; (xviii) our ability to identify and
complete acquisitions and partnerships; (xix) failure to comply
with applicable requirements of Visa, MasterCard or other payment
networks or card schemes or changes in those requirements; (xx) our
ability to pass along fee increases; (xxi) termination of
sponsorship or clearing services; (xxii) loss of clients or
referral partners; (xxiii) geopolitical, regulatory, tax and
business risks associated with our international operations; (xxiv)
economic and political uncertainty; (xxv) reductions in overall
consumer, business and government spending; (xxvi) fraud by
merchants or others; (xxvii) a decline in the use of credit, debit
or prepaid cards; (xxviii) consolidation in the banking and retail
industries; (xxix) our ability to mitigate risk; (xxx) government
regulation, including regulation aimed at protecting consumer
information and banking regulation; (xxxi) changes in tax laws;
(xxxii) changes in foreign currency exchange rates; (xxxiii)
outcomes of pending or future litigation or investigations; and
(xxxiv) our dual-listings with the NYSE and LSE. Should one or more
of these risks or uncertainties materialize, or should any of these
assumptions prove incorrect, our actual results may vary in
material respects from those projected or expected in any
forward-looking statements. More information on potential factors
and events that could affect our financial results and performance
are included from time to time in the "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" sections of Worldpay's and FIS's periodic
reports filed with the SEC, including each of Worldpay's and FIS's
most recently filed Annual Report on Form 10-K and its subsequent
filings with the SEC.
Any forward-looking statement made by us in this release speaks
only as of the date of this release. Factors or events that could
cause our actual results to differ may emerge from time to time,
and it is not possible for us to predict all of them. We undertake
no obligation to publicly update any forward-looking statement,
whether as a result of new information, future developments or
otherwise, except as may be required by law.
Additional Information and Where to Find It
This release may be deemed to be solicitation material in
respect of the Merger and the issuance of shares of FIS Common
Stock in connection with the Merger (the "Share Issuance"). In
connection with the Share Issuance, FIS expects to file a
registration statement on Form S-4 that will include a joint proxy
statement of Worldpay and FIS and a prospectus of FIS with the SEC.
This document is not a substitute for the joint proxy
statement/prospectus or registration statement or any other
document which Worldpay or FIS may file with the SEC. INVESTORS AND
STOCKHOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS
AND OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC
CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT WORLDPAY, FIS, THE MERGER, THE SHARE
ISSUANCE AND RELATED MATTERS. Investors and stockholders will be
able to obtain free copies of the joint proxy statement/prospectus
and other documents filed by Worldpay and FIS with the SEC at the
SEC's website at http://www.sec.gov In addition, investors and
stockholders will be able to obtain free copies of the joint proxy
statement/prospectus and other documents filed by Worldpay with the
SEC at http://investor.worldpay.com/ and
https://www.investor.fisglobal.com/investor-overview
Participants in the Solicitation
Worldpay, FIS and their respective directors, officers and
employees may be considered participants in the solicitation of
proxies in respect of the Merger and the Share Issuance.
Information regarding the persons who may, under the rules of the
SEC, be deemed participants in the solicitation of proxies in
connection with the Merger and the Share Issuance, including names,
affiliations and a description of their direct or indirect
interests, by security holdings or otherwise, will be set forth in
the joint proxy statement/prospectus and other relevant materials
to be filed with the SEC. Information concerning the interests of
Worldpay's and FIS's participants in the solicitation, may, in some
cases, be different than those of Worldpay's and FIS's stockholders
and shareholders, respectively. Information regarding Worldpay's
directors and executive officers is available in its proxy
statement for its 2019 Annual Meeting of Stockholders, which was
filed with the SEC on April 3, 2019, and information regarding
FIS's directors and executive officers is available in its proxy
statement for its 2019 Annual Meeting of Shareholders, which was
filed with the SEC on April 12, 2019.
No Offer or Solicitation
This communication is not intended to and shall not constitute
an offer to sell or the solicitation of an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote of approval, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offer of securities
shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as
amended.
CONTACTS
Investors
Nathan Rozof, CFA or Ignatius Njoku
Investor Relations
+1 (866) 254-4811
+1 (513) 900-4811
IR@worldpay.com
Media
Andrew Ciafardini
Corporate Communications
+1 (513) 900-5308
Andrew.Ciafardini@worldpay.com
Worldpay, Inc. LEI number: 213800TV56O7TZI4U902
Schedule 1
Worldpay, Inc.
Consolidated Statements of Income
(Unaudited)
(in millions, except share data)
Three Months Ended
March 31,
2019 2018 Change
-------------- --------------
Revenue $ 970.0 $ 850.7 14%
Sales and marketing 290.9 266.0 9%
Other operating costs 181.0 155.1 17%
General and administrative 127.4 250.1 (49)%
Depreciation and amortization 264.4 207.2 28%
------------- -------------
Income (loss) from operations 106.3 (27.7) NM
Interest expense-net (72.1) (75.2) (4)%
Non-operating income (expense)(1) 3.5 (8.6) NM
------------- -------------
Income (loss) before applicable income taxes 37.7 (111.5) NM
Income tax benefit (0.4) (13.2) NM
------------- -------------
Net income (loss) 38.1 (98.3) NM
Less: Net (income) loss attributable to non-controlling
interests (1.7) 0.7 NM
------------- -------------
Net income (loss) attributable to Worldpay, Inc. $ 36.4 $ (97.6) NM
========= =========
Net income (loss) per share attributable to Worldpay,
Inc. Class A common stock:
Basic $ 0.12 $ (0.36) NM
Diluted(2) $ 0.12 $ (0.36) NM
Shares used in computing net income (loss) per
share of Class A common stock:
Basic 302,046,241 274,098,480
Diluted 303,876,967 274,098,480
(1) Non-operating income (expense) primarily consists of other
income and expense items outside of the Company's operating
activities.
(2) Due to our structure as a C corporation and Worldpay
Holding's structure as a pass-through entity for tax purposes, the
numerator in the diluted net income per share calculation is
adjusted to reflect the Company's income tax expense at an expected
effective tax rate assuming the conversion of the Class B units of
Worldpay Holding into shares of our Class A common stock. During
the three months ended March 31, 2019 and 2018, approximately 8.7
million and 15.3 million weighted average Class B units of Worldpay
Holding were excluded in computing diluted net income per share
because including them would have an antidilutive effect. As the
Class B units of Worldpay Holding were not included, the numerator
used in the calculation of diluted net income per share was equal
to the numerator used in the calculation of basic net income per
share for the three months ended March 31, 2019 and 2018.
Additionally, due to the net loss for the three months ended March
31, 2018, any remaining potentially dilutive securities were also
excluded from the denominator in computing dilutive net income per
share. As of March 31, 2019 all Class B units have been converted
to Class A common stock and therefore there are no Class B units
outstanding.
Schedule 2
Worldpay, Inc.
Adjusted Net Income
(Unaudited)
(in millions, except share data)
Three Months Ended
March 31, March 31,
2019 2018 % Change
----------------- ----------------- -----------
Income (loss) before applicable income
taxes $ 37.7 $ (111.5) NM
Non-GAAP Adjustments:
Transition, acquisition and integration
costs(1) (2) 42.4 177.4 (76)%
Share-based compensation(2) 33.0 17.2 92%
Intangible amortization(2) (3) 226.2 172.8 31%
Non-operating (income) expense(4) (3.5) 8.6 NM
------------- -------------
Non-GAAP adjusted income before applicable
income taxes 335.8 264.5 27%
Less: Adjustments
Adjusted tax expense(5) 42.4 27.5 54%
Adjusted tax rate 13% 10%
Other(6) 0.4 0.3 33%
------------- -------------
Adjusted net income $ 293.0 $ 236.7 24%
========= =========
Adjusted net income per share $ 0.94 $ 0.81 16%
Adjusted shares outstanding(7) 312,534,909 290,880,798
Non-GAAP and Adjusted Financial Measures
This schedule presents non-GAAP and adjusted financial measures,
which are important financial performance measures for the Company,
but are not financial measures as defined by GAAP. Such financial
measures should not be considered as alternatives to GAAP, and such
measures may not be comparable to those reported by other
companies.
Adjusted net income is derived from GAAP income before
applicable income taxes and adjusted for the following items
described below:
(1) Represents acquisition and integration costs incurred in
connection with our acquisitions, charges related to employee
terminations and other transition activities.
(2) Below are the adjustments to Other operating costs, General
and administrative and Depreciation and amortization.
Three Months Ended March Three Months Ended March
31, 2019 31, 2018
Transition, Amortization Transition, Amortization
Acquisition Share-Based of Intangible Acquisition Share-Based of Intangible
& Integration Compensation Assets & Integration Compensation Assets
-------------- --------------- --------------- -------------- --------------- -----------------
Other operating
costs $ 20.5 $ - $ - $ 10.2 $ - $ -
General and
administrative 21.9 33.0 - 167.2 17.2 -
Depreciation
and
amortization - - 226.2 - - 172.8
-------------- --------------- --------------- -------------- --------------- ---------------
Total
adjustments $ 42.4 $ 33.0 $ 226.2 $ 177.4 $ 17.2 $ 172.8
==== ======== ==== ========= ===== ======== ==== ======== ==== ========= ===== ========
(3) Represents amortization of intangible assets acquired
through business combinations and customer portfolio and related
asset acquisitions as well as depreciation of acquired
software.
(4) See note (1) in Schedule 1.
(5) Represents adjusted income tax expense to reflect a
projected effective tax rate of 20.1% for 2019 and 19.7% for 2018,
including the tax effect of adjustments described above. Adjusted
tax expense includes tax benefits due to: (1) the amortization of
intangible assets and other tax attributes resulting from or
acquired with our acquisitions, (2) the tax basis step up
associated with our separation from Fifth Third Bank and (3) the
purchase or exchange of Class B units of Worldpay Holding, net of
payment obligations under tax receivable agreements. The effective
tax rate is expected to remain at 20.1% for the remainder of
2019.
(6) Represents the non-controlling interest, net of adjusted
income tax expense, associated with a consolidated joint
venture.
(7) The adjusted shares outstanding include 8.7 million and 15.3
million of weighted average Class B units that are excluded from
the GAAP dilutive net income per share calculation for the three
months ended March 31, 2019 and 2018. Additionally, the three
months ended March 31, 2018 also includes other potentially
dilutive securities that are excluded from the GAAP dilutive net
income per share calculation. As of March 31, 2019 all Class B
units have been converted to Class A common stock and are therefore
included in the Company's shares outstanding.
Schedule 3
Worldpay, Inc.
Segment Information
(Unaudited)
(in millions)
Technology Solutions
Three Months Ended March 31,
2019 2018 % Change
----------------- ---------------- -----------
Revenue $ 427.3 $ 336.4 27%
Sales and marketing 118.4 95.9 23%
----------------- ----------------
Segment profit $ 308.9 $ 240.5 28%
=== ============ ============ ===== ===
Merchant Solutions
Three Months Ended March 31,
2019 2018 % Change
----------------- ---------------- -----------
Revenue $ 459.4 $ 432.2 6%
Sales and marketing 166.0 163.8 1%
----------------- ----------------
Segment profit $ 293.4 $ 268.4 9%
=== ============ ============ === =====
Issuer Solutions
Three Months Ended March 31,
2019 2018 % Change
----------------- ---------------- -----------
Revenue $ 83.3 $ 82.1 1%
Sales and marketing 6.5 6.3 3%
----------------- ---------------- --- -----
Segment profit $ 76.8 $ 75.8 1%
=== ============ === =========== === =====
Schedule 4
Worldpay, Inc.
Condensed Consolidated Statements of Financial Position
(Unaudited)
(in millions)
March 31, December
2019 31, 2018
------------ --------------
Assets
Current assets:
Cash and cash equivalents $ 107.9 $ 196.5
Accounts receivable-net 1,710.2 1,694.8
Settlement assets and merchant float 4,964.0 3,132.3
Prepaid expenses 83.1 80.0
Other 538.9 526.1
------------ ------------
Total current assets 7,404.1 5,629.7
Property, equipment and software-net 1,093.3 1,074.1
Intangible assets-net 2,983.5 3,127.8
Goodwill 14,302.0 14,137.9
Deferred taxes 1,283.7 789.9
Other assets 220.6 129.1
------------
Total assets $ 27,287.2 $ 24,888.5
======== ========
Liabilities and equity
Current liabilities:
Accounts payable and accrued expenses $ 1,147.1 $ 1,188.7
Settlement obligations 5,680.2 3,723.6
Current portion of notes payable 219.3 225.7
Current portion of tax receivable agreement
obligations 71.4 73.1
Deferred income 29.5 25.1
Current maturities of finance lease obligations 23.2 22.7
Other 647.4 630.3
------------ ------------
Total current liabilities 7,818.1 5,889.2
Long-term liabilities:
Notes payable 7,269.3 7,622.1
Tax receivable agreement obligations 890.2 590.8
Finance lease obligations 28.4 34.3
Deferred taxes 469.9 473.7
Other 199.4 74.4
------------ ------------
Total long-term liabilities 8,857.2 8,795.3
Total liabilities 16,675.3 14,684.5
Commitments and contingencies
Equity:
Total equity (1) 10,611.9 10,204.0
------------ ------------
Total liabilities and equity $ 27,287.2 $ 24,888.5
======== ========
(1) Includes equity attributable to non-controlling interests.
Schedule 5
Worldpay, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(in millions)
Three Months Ended
March 31, March 31,
2019 2018
------------ --------------
Operating Activities:
Net income (loss) $ 38.1 $ (98.3)
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization expense 264.4 207.2
Amortization of customer incentives 7.9 6.2
Amortization and write-off of debt issuance
costs 2.1 59.9
Gain on foreign currency forward - (35.9)
Share-based compensation expense 33.0 17.2
Deferred tax benefit (2.5) (25.3)
Tax receivable agreements non-cash items (2.0) (3.6)
Other 23.8 30.4
Change in operating assets and liabilities:
Accounts receivable (7.4) 14.0
Net settlement assets and obligations (136.6) (12.2)
Prepaid and other assets 4.9 (30.2)
Accounts payable and accrued expenses (42.0) (17.1)
Other liabilities (17.5) (28.2)
----------- -----------
Net cash provided by operating activities 166.2 84.1
----------- -----------
Investing Activities:
Purchases of property and equipment (83.2) (34.1)
Acquisition of customer portfolios and related
assets and other (4.8) (37.1)
Proceeds from foreign currency forward - 71.5
Cash acquired in acquisitions, net of cash
used - 1,405.8
----------- -----------
Net cash (used in) provided by investing
activities (88.0) 1,406.1
----------- -----------
Financing Activities:
Proceeds from issuance of long-term debt - 2,140.0
Borrowings on revolving credit facility 2,127.0 1,476.0
Repayment of revolving credit facility (1,931.0) (1,701.0)
Repayment of debt and finance lease obligations (582.3) (1,662.2)
Payment of debt issuance costs - (86.8)
Proceeds from issuance of Class A common stock
under employee stock plans 7.0 7.6
Repurchase of Class A common stock (to satisfy
tax withholding obligations) (12.8) (11.2)
Settlement and payments under certain tax receivable
agreements (28.2) (80.9)
Distributions to non-controlling interests (2.3) (5.6)
----------- -----------
Net cash (used in) provided by financing
activities (422.6) 75.9
----------- -----------
Net (decrease) increase in cash and cash equivalents (344.4) 1,566.1
Cash and cash equivalents-Beginning of period 2,581.3 1,272.2
Effect of exchange rate changes on cash 10.1 31.1
----------- -----------
Cash and cash equivalents-End of period $ 2,247.0 $ 2,869.4
======= =======
Cash Payments:
Interest $ 59.3 $ 58.2
Income taxes 13.6 0.6
Non-cash Items:
Issuance of tax receivable agreements $ 327.9 $ -
Reconciliation of cash and cash equivalents to the Condensed
Consolidated Statements of Financial Position
Three Months Ended
March 31, March 31,
2019 2018
------------- --------------
Cash and cash equivalents on the Condensed Consolidated
Financial Statements $ 107.9 $ 459.4
Other restricted cash (in other current assets) 474.9 515.7
Merchant float (in settlement assets and merchant
float) 1,664.2 1,894.3
------------- ------------
Total cash and cash equivalents per the Consolidated
Statements of Cash Flows $ 2,247.0 $ 2,869.4
=== ======== ========
Schedule 6
Worldpay, Inc.
Reconciliation of GAAP Net Income to Adjusted EBITDA
(Unaudited)
(in millions)
Three Months Ended March
31,
2019 2018 % Change
----------------- -------------- -----------
Net income (loss) $ 38.1 $ (98.3) NM
Income tax benefit (0.4) (13.2) NM
Non-operating (income) expense(1) (3.5) 8.6 NM
Interest expense-net 72.1 75.2 (4)%
Share-based compensation 33.0 17.2 92%
Transition, acquisition and integration
costs(2) 42.4 177.4 (76)%
Depreciation and amortization 264.4 207.2 28%
------------- -------------
Adjusted EBITDA $ 446.1 $ 374.1 19%
========= =========
Non-GAAP Financial Measures
This schedule presents adjusted EBITDA, which is an important
financial performance measure for the Company, but is not a
financial measure as defined by GAAP. Such financial measure should
not be considered as an alternative to GAAP net income, and such
measure may not be comparable to those reported by other
companies.
(1) See note (1) in Schedule 1.
(2) See notes (1) and (2) in Schedule 2.
Schedule 7
Worldpay, Inc.
Outlook Summary
(Unaudited)
Second Quarter Financial Full Year Financial
Outlook Outlook
------------------------------ ----------------------------
Three Months Ended June Year Ended December
30, 31,
2018 Actual
2019 Outlook 2018 Actual 2019 Outlook (1)
--------------- ------------ -------------- ------------
GAAP net income (loss) per
share attributable to Worldpay,
Inc. $0.30 - $0.38 $(0.01) $1.05 - $1.55 $0.04
Adjustments to reconcile
GAAP to non-GAAP adjusted
net income per share(2) $0.86 - $0.81 $1.05 $3.55 - $3.15 $4.01
---------------- --------------
Adjusted net income per share $1.16 - $1.19 $1.04 $4.60 - $4.70 $4.05
================ ============ ============== ============
Non-GAAP and Adjusted Financial Measures
This schedule presents non-GAAP and adjusted financial measures,
which are important financial performance measures for the Company,
but are not financial measures as defined by GAAP. Such financial
measures should not be considered as alternatives to GAAP, and such
measures may not be comparable to those reported by other
companies.
(1) Excludes Worldpay Group plc EPS for the period prior to the
acquisition closing from January 1, 2018 to January 15, 2018.
(2) 2019 represents an estimated range of adjustments for the
following items: (a) integration costs incurred in connection with
our prior acquisitions, costs incurred related to our merger with
FIS; charges related to employee termination benefits resulting
from acquisition, integration and other transition activities; (b)
share-based compensation; (c) amortization of acquired intangible
assets and customer portfolio and related asset acquisitions; (d)
non-operating expense/income; (e) adjustments to income tax expense
to reflect the tax effect of adjustments described above, tax
benefits due to the amortization of intangible assets and other tax
attributes resulting from or acquired with our acquisitions, the
tax basis step up associated with our separation from Fifth Third
Bank and the purchase or exchange of Class B units of Worldpay
Holding, net of payment obligations under tax receivable
agreements.
2018 includes adjustments for the following items: (a)
acquisition and integration costs incurred in connection with our
acquisitions, charges related to employee termination benefits
resulting from acquisition, integration and other transition
activities; (b) share-based compensation; (c) amortization of
acquired intangible assets and customer portfolio and related asset
acquisitions; (d) non-operating expense/income; (e) adjustments to
income tax expense to reflect the tax effect of adjustments
described above, adjustments to deferred taxes and the TRA
liability both resulting from US tax reform, adjustments to the TRA
liability tax benefits due to the amortization of intangible assets
and other tax attributes resulting from or acquired with our
acquisitions, the tax basis step up associated with our separation
from Fifth Third Bank and the purchase or exchange of Class B units
of Worldpay Holding, net of payment obligations under tax
receivable agreements.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
QRFCKBDKDBKDFPK
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May 02, 2019 07:16 ET (11:16 GMT)
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