Segment Information (Tables)

3 Months Ended

Mar. 31, 2020

Summary of information about operations by business segments

The following tables set forth information about the Company’s operations by its four business segments for the periods indicated:



	Three months ended March 31, 2020
(In thousands)	Payment Services - Puerto Rico & Caribbean		Payment Services - Latin America		Merchant Acquiring, net		Business Solutions		Corporate and Other ⁽¹⁾			Total

Revenues	$	29,887	$	21,640	$	25,121	$	55,943	$	(10,649	)	$	121,942
Operating costs and expenses	17,406		17,651		14,706		33,617		5,799			89,179
Depreciation and amortization	3,249		2,757		499		4,296		6,994			17,795
Non-operating income (expenses)	113		754		154		387		(962		)	446
EBITDA	15,843		7,500		11,068		27,009		(10,416		)	51,004
Compensation and benefits ⁽²⁾	231		742		216		436		1,875			3,500
Transaction, refinancing and other fees ⁽³⁾	—		—		—		—		1,786			1,786
Adjusted EBITDA	$	16,074	$	8,242	$	11,284	$	27,445	$	(6,755	)	$	56,290

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $9.0 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring and intercompany software sale and developments of $1.6 million from Payment Services - Latin America to Payment Services - Puerto Rico & Caribbean. Corporate and Other was impacted by the intersegment elimination of revenue recognized in the Payment Services - Latin America segment and capitalized in the Payment Services - Puerto Rico & Caribbean segment; excluding this impact, Corporate and Other Adjusted EBITDA would be $5.1 million.


(2)	Primarily represents share-based compensation.


(3)	Primarily represents fees and expenses associated with corporate transactions as defined in the 2018 Credit Agreement and the elimination of non-cash equity earnings from our 19.99% equity investment in Consorcio de Tarjetas Dominicanas S.A., net of cash dividends received.



	Three months ended March 31, 2019
(In thousands)	Payment Services - Puerto Rico & Caribbean		Payment Services - Latin America		Merchant Acquiring, net		Business Solutions		Corporate and Other ⁽¹⁾			Total

Revenues	$	32,017	$	20,831	$	25,974	$	51,364	$	(11,350	)	$	118,836
Operating costs and expenses	14,215		17,573		14,718		32,910		2,015			81,431
Depreciation and amortization	2,643		2,196		468		3,854		7,112			16,273
Non-operating income (expenses)	581		2,634		21		186		(2,992		)	430
EBITDA	21,026		8,088		11,745		22,494		(9,245		)	54,108
Compensation and benefits ⁽²⁾	237		166		220		554		2,262			3,439
Transaction, refinancing and other fees ⁽³⁾	—		2		—		—		47			49
Adjusted EBITDA	$	21,263	$	8,256	$	11,965	$	23,048	$	(6,936	)	$	57,596

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $9.2 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring and intercompany software sale and developments of $2.1 million from Payment Services - Latin America to the Payment Services - Puerto Rico & Caribbean. Corporate and Other was impacted by the intersegment elimination of revenue recognized in the Payment Services - Latin America segment and capitalized in the Payment Services - Puerto Rico & Caribbean segment; excluding this impact, Corporate and Other Adjusted EBITDA would be $4.8 million.


(2)	Primarily represents share-based compensation, other compensation expense and severance payments.

(3)

Primarily represents fees and expenses associated with corporate transactions as defined in the 2018 Credit Agreement and the elimination of non-cash equity earnings from our 19.99%

Reconciliation of income from operations to consolidated net income

The reconciliation of EBITDA to consolidated net income is as follows:



	Three months ended March 31,
(In thousands)	2020		2019
Total EBITDA	$	51,004	$	54,108
Less:
Income tax expense	4,518		3,809
Interest expense, net	6,416		7,292
Depreciation and amortization	17,795		16,273
Net income	$	22,275	$	26,734