TIDMWPY
RNS Number : 1668R
Worldpay, Inc
26 February 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
February 26, 2019
Worldpay Reports Fourth Quarter and Full-Year 2018 Results
Accelerating Growth Highlights Successful First Year for Newly
Combined Company
CINCINNATI and LONDON, February 26, 2019 - Worldpay, Inc. (NYSE:
WP, LSE: WPY) ("Worldpay" or the "Company") today announced
financial results for the fourth quarter and full-year ended
December 31, 2018. Worldpay, Inc. was formed on January 16, 2018
through Vantiv, Inc.'s acquisition of Worldpay Group plc. Net
revenue for the Company increased 85% in the fourth quarter to
$1,050 million as compared to $569 million in Vantiv, Inc.'s prior
year period. Had the Company's acquisition of Worldpay Group plc
closed on January 1, 2017, net revenue would have increased by 9%
on a pro forma basis and by 10% on a pro forma constant currency
basis, when excluding $6 million in foreign exchange headwinds. On
a GAAP basis, net income per diluted share attributable to
Worldpay, Inc. increased to $0.36 as compared to $(0.37) in the
prior year period. Adjusted net income per share increased 15% to
$1.12 as compared to $0.97 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.)
"The high rates of organic growth and the continued acceleration
in technology solutions shows the power of our strategy," said
Charles Drucker, chairman and chief executive officer. "Our strong
business fundamentals position us for continued growth in
2019."
Worldpay, Inc. Fourth Quarter 2018 Results
(unaudited)
(in millions, except share data)
Three Months Ended
December December Pro Forma(2) Pro Forma(2)
31, 2018 31, 2017(1) % Change % Change CC % Change
--------------- ----------------- --------- ------------- -------------
Net revenue $ 1,050.0 $ 569.0 85% 9% 10%
Technology Solutions 443.7 225.5 97% 20% 21%
Merchant Solutions 516.1 258.2 100% 2% 3%
Issuer Solutions 90.2 85.3 6% 4% 4%
Adjusted EBITDA $ 531.3 $ 281.7 89%
Adjusted. EBITDA Margin 50.6% 49.5%
GAAP Net income (loss)
attributable
to Worldpay, Inc. $ 110.5 $ (59.7) NM
GAAP Net income (loss) per
diluted share attributable
to Worldpay, Inc. $ 0.36 $ (0.37) NM
Adjusted net income attributable
to Worldpay, Inc. $ 352.1 $ 173.7 103%
Adjusted net income per share
attributable to Worldpay,
Inc. $ 1.12 $ 0.97 15%
(1) 2017 actuals include Vantiv, Inc. results only.
(2) Illustrates what the combined results would have been had
the Vantiv, Inc./Worldpay Group plc transaction closed on January
1, 2017.
Fourth Quarter Adjusted EBITDA
For the fourth quarter, adjusted EBITDA was $531 million or
50.6% of net revenue, representing 110 basis points of adjusted
EBITDA margin expansion as compared to Vantiv, Inc. results on a
stand-alone basis in the prior year period. Had the Company's
acquisition of Worldpay Group plc closed on January 1, 2017,
adjusted EBITDA margins would have expanded by 160 basis points on
a pro forma basis over the prior year period, including $16 million
in cost synergies realized during the quarter.
Full-Year Results
For the full-year 2018, net revenue increased 85% to $3,925
million as compared to $2,123 million in Vantiv Inc.'s prior year.
Had the Company's acquisition of Worldpay Group plc closed on
January 1, 2017, net revenue would have increased by 10% on a pro
forma basis and by 9% on a pro forma constant currency basis, when
excluding $36 million in foreign exchange tailwinds. On a GAAP
basis, net income per diluted share attributable to Worldpay, Inc.
decreased to $0.04 as compared to $0.80 in the prior year period.
The reduction in GAAP earnings is primarily due to transition,
acquisition and integration costs and intangible amortization
incurred in connection with the acquisition of Worldpay Group plc.
Adjusted net income per share increased 20% to $4.05 as compared to
$3.37 in the prior year period.
Worldpay, Inc. Full-Year 2018 Results
(unaudited)
(in millions, except share data)
Year Ended
December December Pro Forma(2) Pro Forma(2)
31, 2018 31, 2017(1) % Change % Change CC % Change
------------ ----------------- --------- ------------- -------------
Net revenue $3,925.4 $ 2,123.3 85% 10% 9%
Technology Solutions 1,601.4 809.6 98% 21% 20%
Merchant Solutions 1,976.2 977.9 102% 4% 3%
Issuer Solutions 347.8 335.8 4% 1% 1%
Adjusted EBITDA $1,895.1 $ 1,018.0 86%
Adjusted. EBITDA Margin 48.3% 47.9%
GAAP Net income attributable
to Worldpay, Inc. $ 12.8 $ 130.1 (90)%
GAAP Net income per diluted
share attributable to Worldpay,
Inc. $ 0.04 $ 0.80 (95)%
Adjusted net income attributable
to Worldpay, Inc. $1,246.7 $ 641.1 94%
Adjusted net income per share
attributable to Worldpay,
Inc. $ 4.05 $ 3.37 20%
(1) 2017 actuals include Vantiv, Inc. results only.
(2) Illustrates what the combined results would have been had
the Vantiv, Inc./Worldpay Group plc transaction closed on January
1, 2017.
Full-Year Adjusted EBITDA
For the full-year 2018, adjusted EBITDA was $1,895 million or
48.3% of net revenue, representing 40 basis points of margin
expansion as compared to Vantiv, Inc. results on a stand-alone
basis in the prior year period. Had the acquisition of Worldpay
Group plc closed on January 1, 2017, adjusted EBITDA margins would
have expanded by 140 basis points on a pro forma basis over the
prior year period, including $52 million in cost synergies realized
during the year.
Debt Repayment
During the three months ended December 31, 2018, Worldpay
reached the 4.0x leverage target that it committed to achieving
with the announcement of the Worldpay Group plc acquisition. The
Company achieved this target more than six months ahead of its
initial mid-2019 expectation. Subsequently, in January 2019,
Worldpay paid down the remaining $520 million of its Term B-3 loan,
further reducing its outstanding debt.
Having honored its commitment to focus exclusively on debt
repayment until it reached 4.0x leverage, the company returned to
its historical capital allocation priorities, which include
investing for growth, both organically and through M&A,
balanced with ongoing debt repayment and share repurchases.
$150 Million Share Repurchase and $500 Million Share Repurchase
Authorization
Consistent with its capital allocation priorities, Worldpay
repurchased approximately 1.8 million shares for $150 million
during the three months ended December 31, 2018 under its October
2016 share repurchase authorization. Following this repurchase, $93
million of its October 2016 share repurchase authorization
remained.
In February 2019, Worldpay's Board of Directors authorized the
repurchase of up to $500 million in additional shares of Worldpay
Class A common stock, providing the company with a total
authorization of approximately $593 million available for share
repurchases.
Worldpay, Inc. First Quarter and Full-Year 2019 Financial Outlook
(in millions, except share data)
First Quarter Outlook Full-Year Outlook
-------------------------------- ---------------------------------
Three Months Ended Year Ended December
March 31, 31,
2019 Outlook 2018 Actuals(1) 2019 Outlook 2018 Actuals(1)
-------------- ---------------- --------------- ----------------
Net revenue $940 - $955 $851 $4,200- $4,260 $3,925
GAAP Net income per diluted
share attributable to Worldpay,
Inc $0.01 - $0.08 $(0.36) $1.00 - $1.50 $0.04
Adjusted net income per share $0.87 - $0.90 $0.81 $4.50 - $4.60 $4.05
(1) Excludes Worldpay Group plc results for the period which was
prior to the January 16, 2018 transaction close.
ASC 606
Worldpay adopted Accounting Standards Codification Topic 606,
Revenue from Contracts with Customers ("ASC 606"), effective
January 1, 2018. Under ASC 606, Network fees and other costs are
now netted against Revenue and no longer appear as an expense
between Revenue and Net revenue as they were shown in prior
periods. As a result, Revenue and Net revenue are now equivalent.
This change in presentation reduces Revenue by the amount of
Network fees and other costs to an amount equivalent to Net
revenue, but has no impact on Net income, Adjusted net income, or
Adjusted EBITDA.
Earnings Conference Call and Audio Webcast
The Company will host a conference call to discuss the fourth
quarter and full-year 2018 financial results today at 8:00 a.m. ET.
The conference call can be accessed live over the phone in the U.S.
and Canada by dialing (866) 548-4713, in the U.K. by dialing 0800
358 6377, or for international callers +1 (323) 794-2093, and
referencing code 4344097#. A replay will be available approximately
two hours after the call concludes and can be accessed for the U.S.
and Canada by dialing (888) 203-1112, in the U.K. by dialing 0808
101 1153, or for international callers +1 (719) 457-0820, and
entering replay passcode 4344097#. The call will also be webcast
live from the Company's investor relations website at
http://investor.worldpay.com. Following completion of the call, a
recorded replay of the webcast will be available on the
website.
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 net revenue, 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. They 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 could affect our actual future performance 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 the company's filings with the U.S.
Securities and Exchange Commission (the "SEC") and include, but are
not limited to: (i) our ability to adapt to developments and change
in our industry; (ii) competition; (iii) unauthorized disclosure of
data or security breaches; (iv) systems failures or interruptions;
(v) implementation of our new acquiring platform; (vi) our ability
to expand our market share or enter new markets; (vii) the outcome
of Brexit; (viii) our ability to successfully integrate the
businesses of our predecessor companies; (ix) our ability to
identify and complete acquisitions and partnerships; (x) failure to
comply with applicable requirements of Visa, MasterCard or other
payment networks or card schemes or changes in those requirements;
(xi) our ability to pass along fee increases; (xii) termination of
sponsorship or clearing services; (xiii) loss of clients or
referral partners; (xiv) geopolitical, regulatory, tax and business
risks associated with our international operations; (xv) economic
and political uncertainty; (xvi) reductions in overall consumer,
business and government spending; (xvii) fraud by merchants or
others; (xviii) a decline in the use of credit, debit or prepaid
cards; (xix) consolidation in the banking and retail industries;
(xx) our ability to mitigate risk; (xxi) government regulation,
including regulation aimed at protecting consumer information and
banking regulation; (xxii) changes in tax laws; (xxiii) changes in
foreign currency exchange rates; (xxiv) outcomes of future
litigation or investigations; and (xxv) 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 in these forward-looking statements. More information on
potential factors that could affect the company's financial results
and performance is included from time to time in the "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" sections of the company's periodic
reports filed with the SEC, including the company'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.
CONTACTS
Investors
Nathan Rozof, CFA or Ignatius Njoku
Investor Relations
(866) 254-4811
(513) 900-4811
IR@worldpay.com
Media
Andrew Ciafardini
Corporate Communications
(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 Year Ended
December December December December
31, 31, 31, 31,
2018 2017 % Change 2018 2017 % Change
-------------- -------------- ----------- -------------- -------------- -----------
Total revenue $ 1,050.0 $ 1,065.9 NM $ 3,925.4 $ 4,026.5 NM
Network fees and
other
costs(1) - 496.9 NM - 1,903.2 NM
------------- ------------- ------------- -------------
Net revenue(1) 1,050.0 569.0 85% 3,925.4 2,123.3 85%
Sales and
marketing 286.5 172.4 66% 1,131.7 669.5 69%
Other operating
costs 182.6 84.4 116% 698.0 318.7 119%
General and
administrative 134.5 105.5 27% 662.1 295.1 124%
Depreciation and
amortization 271.0 81.5 233% 1,095.0 318.5 244%
------------- ------------- ------------- -------------
Income from
operations 175.4 125.2 40% 338.6 521.5 (35)%
Interest
expense-net (74.6) (43.2) 73% (304.9) (140.6) NM
Non-operating
(expense)
income(2) (7.7) 419.1 NM (41.8) 432.8 NM
------------- ------------- ------------- -------------
(Loss) income
before
applicable
income taxes 93.1 501.1 (81)% (8.1) 813.7 NM
Income tax
(benefit)
expense(3) (22.7) 547.5 NM (27.7) 631.0 NM
------------- ------------- ------------- -------------
Net income
(loss) 115.8 (46.4) NM 19.6 182.7 (89)%
Less: Net income
attributable
to
non-controlling
interests (5.3) (13.3) NM (6.8) (52.6) NM
------------- ------------- ------------- -------------
Net income
(loss)
attributable
to Worldpay,
Inc. $ 110.5 $ (59.7) NM $ 12.8 $ 130.1 (90)%
========= ========= ========= =========
Net income
(loss) per
share
attributable to
Worldpay, Inc.
Class
A common stock:
Basic $ 0.37 $ (0.37) NM $ 0.04 $ 0.81 (95)%
Diluted(4) $ 0.36 $ (0.37) NM $ 0.04 $ 0.80 (95)%
Shares used in
computing
net income
(loss) per
share of Class A
common
stock:
Basic 300,728,982 161,554,183 292,992,892 161,293,062
Diluted 303,068,119 161,554,183 295,214,282 162,807,146
(1) Based on the Company's adoption of Accounting Standard
Update 2014-09, Revenue From Contracts With Customers (Topic 606)
("ASC 606") effective January 1, 2018, Network fees and other costs
are now netted against Revenue. For the three months and year ended
December 31, 2018, Revenue is equivalent to Net revenue as a result
of the company's adoption of ASC 606. For the three months and year
ended December 31, 2017, Net revenue is equivalent to Revenue less
Network fees and other costs.
(2) Non-operating expense for the year ended December 31, 2018
primarily consists of expenses relating to the Company's financing
arrangements entered into in connection with the Worldpay Group plc
acquisition, repricing of the Company's debt in June 2018 and the
change in fair value of the Mercury tax receivable agreement
("TRA"), partially offset by a gain on the settlement of a deal
contingent forward entered into in connection with the Company's
acquisition of Worldpay Group plc. Non-operating income for the
three months and year ended December 31, 2017 primarily consists of
a gain relating to the impact to the TRA liability as a result of
the Tax Cuts and Jobs Act ("Tax Reform") being enacted on December
22, 2017 and an unrealized gain relating to the change in the fair
value of a deal contingent forward entered into in connection with
the Worldpay Group plc acquisition, partially offset by the change
in fair value of the Mercury TRA.
(3) Income tax expense for the three months and year ended
December 31, 2017, includes an adjustment of $363.6 million to
deferred taxes for the change in tax rates and the impact to the
TRA discussed in (2) above, both resulting from the Tax Reform
enacted on December 22, 2017.
(4) 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 and year ended December 31, 2018, approximately
10.3 million and 12.7 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.
During the three months and year ended December 31, 2017,
approximately 15.3 million and 27.2 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 and year ended December
31, 2017. Additionally, due to the net loss for the three months
ended December 31, 2017, any remaining potentially dilutive
securities were also excluded from the denominator in computing
dilutive net income per share.
Schedule 2
Worldpay, Inc.
Adjusted Net Income
(Unaudited)
(in millions, except share data)
Three Months Ended Year Ended
December December December December
31, 31, 31, 31,
2018 2017 %Change 2018 2017 % Change
----------------- ----------------- ---------- ----------------- ----------------- -----------
Income (loss) before
applicable income
taxes $ 93.1 $ 501.1 (81)% $ (8.1) $ 813.7 NM
Non-GAAP Adjustments:
Transition,
acquisition
and integration
costs(1)(2) 59.1 62.2 (5)% 336.7 130.1 159%
Share-based
compensation(2) 25.8 12.8 102% 124.8 47.9 161%
Intangible
amortization(2)(3) 223.4 56.3 297% 938.4 217.8 331%
Non-operating
expense
(income)(4) 7.7 (419.1) NM 41.8 (432.8) NM
Non-GAAP adjusted
income before
applicable
income taxes 409.1 213.3 92% 1,433.6 776.7 85%
Less: Adjustments
Adjusted tax
expense(5) 56.2 39.0 44% 184.9 133.8 38%
Adjusted tax rate 14% 18% 13% 17%
Other(6) 0.8 0.6 33% 2.0 1.8 11%
------------- -------------
Adjusted net income $ 352.1 $ 173.7 103% $ 1,246.7 $ 641.1 94%
=== ======== === ======== ========= === ========
Adjusted net income
per share $ 1.12 $ 0.97 15% $ 4.05 $ 3.37 20%
Adjusted shares
outstanding(7) 313,320,945 178,625,196 307,912,163 190,052,282
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
termination benefits and other transition activities. Included in
Transition, acquisition and integration costs for the three months
and year ended December 31, 2017 is a charge of $3.5 million and
$41.5 million, respectively, to G&A related to a settlement
agreement stemming from legacy litigation of an acquired
company.
(2) Below are the adjustments to Other operating costs, General
and administrative and Depreciation and amortization.
Three Months Ended December Three Months Ended December
31, 2018 31, 2017
Transition, Amortization Transition, Amortization
Acquisition Share-Based Of Intangible Acquisition Share-Based Of Intangible
& Integration Compensation Assets & Integration Compensation Assets
-------------- --------------- --------------- -------------- --------------- -----------------
Other operating
costs $ 23.9 $ - $ - $ 4.0 $ - $ -
General and
administrative 35.2 25.8 - 58.2 12.8 -
Depreciation
and
amortization - - 223.4 - - 56.3
-------------- --------------- ---------------
Total
adjustments $ 59.1 $ 25.8 $ 223.4 $ 62.2 $ 12.8 $ 56.3
===== ======= ==== ========= ==== ========= ===== ======= ==== ========= ==== =========
Year Ended December 31, Year Ended December 31,
2018 2017
Transition, Amortization Transition, Amortization
Acquisition Share-Based Of Intangible Acquisition Share-Based Of Intangible
& Integration Compensation Assets & Integration Compensation Assets
-------------- --------------- --------------- -------------- --------------- -----------------
Other operating
costs $ 77.9 $ - $ - $ 14.8 $ - $ -
General and
administrative 258.8 124.8 - 115.3 47.9 -
Depreciation
and
amortization - - 938.4 - - 217.8
-------------- --------------- ---------------
Total
adjustments $ 336.7 $ 124.8 $ 938.4 $ 130.1 $ 47.9 $ 217.8
==== ======== ==== ========= ==== ========= ==== ======== ==== ========= ==== =========
(3) Represents amortization of intangible assets acquired
through business combinations and customer portfolio and related
asset acquisitions.
(4) See note (2) in Schedule 1.
(5) Represents adjusted income tax expense to reflect an
adjusted effective tax rate of 19.8% for 2018 and 34% for 2017,
assuming the conversion of the Class B units of Worldpay Holding
into shares of Class A common stock, including the tax effect of
adjustments described above. Adjusted tax expense includes tax
benefits due to (a) the amortization of intangible assets and other
tax attributes resulting from or acquired with our acquisitions and
(b) the tax basis step up associated with our separation from Fifth
Third Bank and the (c) purchase or exchange of Class B units of
Worldpay Holding, net of payment obligations under tax receivable
agreements.
(6) Represents the non-controlling interest, net of adjusted
income tax expense discussed in (5) above, associated with a
consolidated joint venture.
(7) The adjusted shares outstanding include 10.3 million and
12.7 million weighted-average Class B units that are excluded from
the GAAP dilutive net income per share calculation for the year
ended December 31, 2018. Additionally, the adjusted shares
outstanding include 17.1 million and 27.2 million weighted-average
Class B units that are excluded from the GAAP dilutive net income
per share calculation for the three months and year ended December
31, 2017, respectively.
Schedule 3
Worldpay, Inc.
Segment Information
(Unaudited)
(in millions)
Technology Solutions
Three Months Ended December 31,
2018 2017 % Change
------------------- ----------------- -----------
Total revenue $ 443.7 $ 345.1 NM
Network fees and other
costs - 119.6 NM
------------------- ----------------- -----------
Net revenue (1) 443.7 225.5 97%
Sales and marketing 113.7 74.6 52%
------------------- ----------------- ------
Segment profit 330.0 150.9 119%
=================== ================= ======
Year Ended December 31,
2018 2017 % Change
--------------- ----------- -----------
Total revenue $ 1,601.4 $ 1,264.5 NM
Network fees and other
costs - 454.9 NM
--------------- ----------- -----------
Net revenue (1) 1,601.4 809.6 98%
Sales and marketing 422.9 277.9 52%
----------- ------
Segment profit $ 1,178.5 $ 531.7 122%
=========== ========== ======
Merchant Solutions
Three Months Ended December 31,
2018 2017 % Change
------------------- ----------------- -----------
Total revenue $ 516.1 $ 607.2 NM
Network fees and other
costs - 349.0 NM
------------------- ----------------- -----------
Net revenue (1) 516.1 258.2 100%
Sales and marketing 166.9 92.3 81%
----------------- ------
Segment profit $ 349.2 $ 165.9 110%
=== ============== ============= ======
Year Ended December 31,
2018 2017 % Change
--------------- ----------- -----------
Total revenue $ 1,976.2 $ 2,303.1 NM
Network fees and other
costs - 1,325.2 NM
--------------- ----------- -----------
Net revenue (1) 1,976.2 977.9 102%
Sales and marketing 683.7 368.6 85%
----------- ------
Segment profit $ 1,292.5 $ 609.3 112%
=========== ========== ======
Issuer Solutions
Three Months Ended December 31,
2018 2017 % Change
----------------- ------------------- -----------
Total revenue $ 90.2 $ 113.6 NM
Network fees and other
costs - 28.3 NM
----------------- ------------------- -----------
Net revenue (1) 90.2 85.3 6%
Sales and marketing 5.9 5.5 7%
----------------- ------------------- --- -----
Segment profit $ 84.3 $ 79.8 6%
=== ============ === ============== === =====
Year Ended December 31,
2018 2017 % Change
-------------- -------------- -----------
Total revenue $ 347.8 $ 458.9 NM
Network fees and other
costs - 123.1 NM
-------------- -------------- -----------
Net revenue (1) 347.8 335.8 4%
Sales and marketing 25.1 23.0 9%
-------------- -------------- --- -----
Segment profit $ 322.7 $ 312.8 3%
========== ========== === =====
(1) See note (1) in Schedule 1.
Schedule 4
Worldpay, Inc.
Condensed Consolidated Statements of Financial Position
(Unaudited)
(in millions)
December December
31, 2018 31, 2017
------------ --------------
Assets
Current assets:
Cash and cash equivalents $ 196.5 $ 126.5
Accounts receivable-net 1,694.8 986.6
Settlement assets and merchant float 3,132.3 142.0
Prepaid expenses 80.0 33.5
Other 526.1 84.0
------------ ------------
Total current assets 5,629.7 1,372.6
Property, equipment and software-net 1,074.1 473.7
Intangible assets-net 3,127.8 678.5
Goodwill 14,137.9 4,173.0
Deferred taxes 789.9 739.5
Proceeds from senior unsecured notes - 1,135.2
Other assets 129.1 94.5
------------
Total assets $ 24,888.5 $ 8,667.0
======== ========
Liabilities and equity
Current liabilities:
Accounts payable and accrued expenses $ 1,188.7 $ 631.9
Settlement obligations 3,723.6 816.2
Current portion of note payable 225.7 107.9
Current portion of tax receivable agreement obligations 73.1 245.5
Deferred income 25.1 18.9
Current maturities of capital lease obligations 22.7 8.0
Other 630.3 6.0
------------ ------------
Total current liabilities 5,889.2 1,834.4
Long-term liabilities:
Note payable 7,622.1 5,586.4
Tax receivable agreement obligations 590.8 535.0
Capital lease obligations 34.3 4.5
Deferred taxes 473.7 65.6
Other 74.4 40.5
------------ ------------
Total long-term liabilities 8,795.3 6,232.0
Total liabilities 14,684.5 8,066.4
Commitments and contingencies
Equity:
Total equity (1) 10,204.0 600.6
Total liabilities and equity $ 24,888.5 $ 8,667.0
======== ========
(1) Includes equity attributable to non-controlling
interests.
Schedule 5
Worldpay, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(in millions)
Year Ended
December December
31, 2018 31, 2017
------------ --------------
Operating Activities:
Net income $ 19.6 $ 182.7
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization expense 1,095.0 318.5
Amortization of customer incentives 27.4 24.3
Amortization and write-off of debt issuance
costs 69.6 6.0
Gain on foreign currency forward (35.9) (33.1)
Share-based compensation expense 124.8 47.9
Deferred tax (benefit) expense (91.1) 596.8
Tax receivable agreements non-cash items (3.0) (421.7)
Other 20.9 4.0
Change in operating assets and liabilities:
Accounts receivable (172.3) (38.9)
Net settlement assets and obligations 63.0 25.3
Prepaid and other assets (64.7) (25.7)
Accounts payable and accrued expenses (141.0) 130.5
Other liabilities 24.0 (31.8)
-----------
Net cash provided by operating activities 936.3 784.8
----------- -----------
Investing Activities:
Purchases of property and equipment (304.9) (110.8)
Acquisition of customer portfolios and related
assets and other (74.4) (41.8)
Purchase of interest rate caps (8.1) -
Proceeds from foreign currency forward 71.5 -
Cash acquired (used) in acquisitions, net of
cash used 1,389.6 (531.5)
----------- -----------
Net cash provided by (used in) investing
activities 1,073.7 (684.1)
----------- -----------
Financing Activities:
Proceeds from issuance of long-term debt 2,951.8 1,270.0
Proceeds from issuance of senior unsecured notes - 1,135.2
Borrowings on revolving credit facility 4,076.0 8,442.0
Repayment of revolving credit facility (4,251.0) (8,217.0)
Repayment of debt and capital lease obligations (2,835.1) (143.7)
Payment of debt issuance costs (91.1) (27.6)
Proceeds from issuance of Class A common stock
under employee stock plans 23.8 14.5
Purchase and cancellation of Class A common
stock - (1,268.0)
Repurchase of Class A common stock (including
to satisfy tax withholding obligations) (176.6) (10.1)
Settlement of and payments under certain tax
receivable agreements (196.0) (140.3)
Distribution to non-controlling interests (10.5) (22.6)
Net cash (used in) provided by financing
activities (508.7) 1,032.4
----------- -----------
Net increase in cash and cash equivalents 1,501.3 1,133.1
Cash and cash equivalents-Beginning of period 1,272.2 139.1
Effect of exchange rate changes on cash (192.2) -
----------- -----------
Cash and cash equivalents-End of period $ 2,581.3 $ 1,272.2
======= =======
Cash Payments:
Interest $ 302.9 $ 123.1
Income taxes 29.4 45.8
Non-cash Items:
Issuance of tax receivable agreements to related
parties $ 120.9 $ 647.5
Reconciliation of cash and cash equivalents to the Condensed
Consolidated Statement of Financial Position
Year Ended
December 31, December 31,
2018 2017
-------------- ----------------
Cash and cash equivalents on the Condensed Consolidated
Financial Statements $ 196.5 $ 126.5
Proceeds from senior unsecured notes - 1,135.2
Other restricted cash (in other current assets) 482.1 10.5
Merchant float (in settlement assets and merchant
float) 1,902.7 -
Total cash and cash equivalents on the Consolidated
Statement of Cash Flows $ 2,581.3 $ 1,272.2
========== ==========
Schedule 6
Worldpay, Inc.
Reconciliation of GAAP Net Income to Adjusted EBITDA
(Unaudited)
(in millions)
Three Months Ended Year Ended
December December December December
31, 31, 31, 31,
2018 2017 % Change 2018 2017 % Change
-------------- ----------- ----------- --------- --------- -----------
Net income
(loss) $ 115.8 $ (46.4) NM $ 19.6 $ 182.7 (89)%
Income tax
(benefit)
expense(1) (22.7) 547.5 NM (27.7) 631.0 NM
Non-operating
expense
(income)(2) 7.7 (419.1) NM 41.8 (432.8) NM
Interest
expense-net 74.6 43.2 73% 304.9 140.6 117%
Share-based
compensation 25.8 12.8 102% 124.8 47.9 161%
Transition,
acquisition and
integration
costs(3) 59.1 62.2 (5)% 336.7 130.1 159%
Depreciation and
amortization 271.0 81.5 233% 1,095.0 318.5 244%
------------- ---------- -------- --------
Adjusted EBITDA $ 531.3 $ 281.7 89% $1,895.1 $1,018.0 86%
=== ======== ====== ======= =======
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 (3) in Schedule 1.
(2) See note (2) in Schedule 1.
(3) See notes (1) and (2) in Schedule 2.
Schedule 7
Worldpay, Inc.
Outlook Summary
(Unaudited)
First Quarter Financial Full Year Financial
Outlook Outlook
------------------------------------- ------------------------------------
Three Months Ended Year Ended December
March 31, 31,
2019 Outlook 2018 Actual(1) 2019 Outlook 2018 Actual(1)
----------------- ----------------- --------------- -------------------
GAAP net income per share
attributable to Worldpay,
Inc. $0.01 - $0.08 $ (0.36) $1.00 - $1.50 $ 0.04
Adjustments to reconcile
GAAP to non-GAAP adjusted
net income per share(2) $0.86 - $0.82 $ 1.17 $3.50 - $3.10 $ 4.01
Adjusted net income per share $0.87 - $0.90 $ 0.81 $4.50 - $4.60 $ 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 calculation 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, 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
(f) 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 Vantiv 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 (f) 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 Vantiv 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
FR TFMBTMBATBJL
(END) Dow Jones Newswires
February 26, 2019 07:00 ET (12:00 GMT)
Worldpay (LSE:WPY)
過去 株価チャート
から 10 2024 まで 11 2024
Worldpay (LSE:WPY)
過去 株価チャート
から 11 2023 まで 11 2024
