Segment Information

12 Months Ended

Dec. 31, 2019

As of December 31, 2019, the Company’s operations consisted of its North America, Europe & Africa, and Australia & New Zealand segments. The Company’s ATM operations in the U.S., Canada, Mexico, and Puerto Rico are included in its North America segment. The North America segment also includes the Company’s transaction processing operations, which service its internal ATM operations, along with external customers. The Company’s operations in the U.K., Ireland, Germany, Spain, and South Africa are included in its Europe & Africa segment, along with i-design (the Company’s ATM advertising business based in the U.K.). The Company exited its operations in Poland at the end of 2018, that had previously been included in the Europe & Africa segment in 2018 and 2017. The Company’s Australia & New Zealand segment consists exclusively of its operations in Australia and New Zealand. The Corporate segment solely includes the Company’s corporate general and administrative expenses. While each of the reporting segments provides similar kiosk-based and/or ATM-related services, each segment is managed separately and requires different marketing and business strategies. Segment information presented for prior periods have been revised to reflect the changes in the Company’s segments.

Management uses Adjusted EBITDA, together with U.S. GAAP measures, to manage and measure the performance of its segments. Management believes Adjusted EBITDA is a useful measure to more effectively evaluate the performance of the business and compare its results of operations from period to period without regard to financing methods, capital structure, or non-recurring costs as defined by the Company. Adjusted EBITDA excludes depreciation and accretion, amortization of deferred financing costs and note discounts, amortization of intangible assets, share-based compensation expense, certain other income and expense amounts, acquisition related expenses, gains or losses on disposal and impairment of assets, certain non-operating expenses, (if applicable in a particular period), our obligation for the payment of income taxes, interest expense and other obligations such as capital expenditures, and includes an adjustment for noncontrolling interests. Depreciation and accretion expense and amortization of intangible assets are excluded from Adjusted EBITDA as these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures, and the methods by which the assets were acquired.

Adjusted EBITDA as defined by the Company is a non-GAAP financial measure provided as a complement to the financial results prepared in accordance with U.S. GAAP. It may not be defined in the same manner by all companies and therefore may not be comparable to other similarly titled measures of other companies. In evaluating the Company’s performance as measured by Adjusted EBITDA, management recognizes and considers the limitations of this measurement. Therefore, Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income, cash flows from operating, investing, or financing activities, or other income or cash flow measures contained within our consolidated financial statements.

The following table is a reconciliation of Net income (loss) attributable to controlling interests and available to common shareholders to EBITDA and Adjusted EBITDA:



	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Net income (loss) attributable to controlling interests and available to common shareholders	$	48,274		$	3,676		$	(145,350	)
Adjustments:
Interest expense, net	26,604			35,429			35,036
Amortization of deferred financing costs and note discount	13,447			14,887			12,574
Redemption costs for early extinguishment of debt	—			6,408			—
Income tax expense (benefit)	16,522			10,457			(9,292		)
Depreciation and accretion expense	130,676			126,199			122,036
Amortization of intangible assets	49,261			52,911			57,866
EBITDA	$	284,784		$	249,967		$	72,870
Add back:
Loss on disposal and impairment of assets ⁽¹⁾	11,653			17,873			227,796
Other (income) expense ⁽²⁾	(18,404		)	(627		)	3,524
Noncontrolling interests ⁽³⁾	58			38			(25		)
Share-based compensation expense	20,962			15,660			14,395
Restructuring expenses ⁽⁴⁾	8,928			6,586			11,136
Acquisition related expenses ⁽⁵⁾	—			3,191			18,917
Adjusted EBITDA	$	307,981		$	292,688		$	348,613


(1)	Loss of disposal and impairment of assets includes a goodwill impairment of $7.3 million related to the Company’s Canada segment as of December 31, 2019 and goodwill and intangible asset impairments of $194.5 million related to the Company's Australia & New Zealand segment as of December 31, 2017.


(2)	Includes the revaluation of the estimated acquisition related contingent consideration, foreign currency translation gains/losses and other non-operating costs.


(3)	Noncontrolling interest adjustment made such that Adjusted EBITDA includes only the Company’s ownership interest in the Adjusted EBITDA of one of its Mexican subsidiaries.

(4)

For the years ended December 31, 2019, 2018, and 2017, restructuring expenses include employee severance and other costs incurred in conjunction with the Company's corporate reorganization and cost reduction initiatives. For the year ended December 31, 2017, restructuring expenses also include amounts associated with the Company’s redomicile of its parent company to the U.K. that occurred on July 1, 2016.


(5)	Acquisition related expenses include costs incurred for professional and legal fees and certain other transition and integration-related costs. For the twelve months ended December 31, 2017, expenses also include employee severance and lease termination costs related to DCPayments acquisition integration.

The following tables reflect certain financial information for each of the Company’s reporting segments for the periods presented:



	Year ended December 31, 2019 ⁽¹⁾
	North America		Europe & Africa		Australia & New Zealand			Corporate			Eliminations			Total
	(In thousands)
Revenue from external customers	$	853,648	$	395,694	$	100,063		$	—					$	1,349,405
Intersegment revenues	9,866		626		—			—			(10,492		)	—
Cost of revenues	577,302		245,362		71,281			1,528			(10,494		)	884,979
Selling, general, and administrative expenses	69,250		42,569		9,101			56,554			—			177,474
Restructuring expenses	1,226		3,828		—			3,874			—			8,928
Loss (gain) on disposal and impairment of assets	9,449		2,359		(155		)	—			—			11,653

Adjusted EBITDA	216,933		108,388		19,721			(37,131		)	70			307,981

Capital expenditures ⁽²⁾	$	58,631	$	44,995	$	4,289		$	16,991		$	—		$	124,906



	Year ended December 31, 2018 ⁽¹⁾
	North America			Europe & Africa		Australia & New Zealand		Corporate			Eliminations			Total
	(In thousands)
Revenue from external customers	$	820,252		$	407,584	$	117,407	$	—		$	—		$	1,345,243
Intersegment revenues	9,928			2,185		—		—			(12,113		)	—
Cost of revenues	564,888			256,542		86,814		788			(11,249		)	897,783
Selling, general, and administrative expenses	64,955			38,293		10,408		57,064			(230		)	170,490
Redomicile-related expenses	—			—		—		—			—			—
Restructuring expenses	3,597			1,645		—		1,344			—			6,586
Acquisition related expenses	(329		)	1,518		1,124		878			—			3,191
Loss on disposal and impairment of assets	12,295			5,360		218		—			—			17,873

Adjusted EBITDA	200,335			114,934		20,185		(42,192		)	(574		)	292,688

Capital expenditures⁽²⁾	$	44,867		$	40,687	$	7,122	$	14,529		$	—		$	107,205



	Year ended December 31, 2017 ⁽¹⁾
	North America		Europe & Africa		Australia & New Zealand		Corporate			Eliminations			Total
	(In thousands)
Revenue from external customers	$	971,343	$	403,344	$	132,912	$	—		$	—		$	1,507,599
Intersegment revenues	9,042		1,488		—		—			(10,530		)	—
Cost of revenues	658,153		253,587		96,474		1,146			(10,240		)	999,120
Selling, general, and administrative expenses	71,603		37,992		9,244		55,398			—			174,237
Redomicile-related expenses	—		49		—		733			—			782
Restructuring expenses	3,668		2,942		—		3,744			—			10,354
Acquisition related expenses	2,210		2,261		3,132		11,314			—			18,917
Loss on disposal and impairment of assets	10,432		1,299		216,017		48			—			227,796

Adjusted EBITDA	250,629		113,253		27,195		(42,150		)	(314		)	348,613

Capital expenditures ⁽²⁾	$	61,742	$	61,651	$	6,310	$	14,437		$	—		$	144,140


⁽¹⁾	The segment information presented for the years ended December 31, 2018 and 2017 have been revised to ensure consistency with the current allocation of certain intercompany revenues and expenses for the year ended December 31, 2019.


⁽²⁾	Capital expenditures include payments made for plant, property, and equipment, exclusive license agreements, and site acquisition costs. Additionally, capital expenditures for one of the Company’s Mexican subsidiaries, included in the North America segment, are reflected gross of any noncontrolling interest amounts.

Identifiable Assets



	December 31, 2019		December 31, 2018
	(In thousands)
North America	$	1,141,084	$	1,195,693
Europe & Africa	511,037		494,457
Australia & New Zealand	60,416		63,613
Corporate	51,421		33,581
Total	$	1,763,958	$	1,787,344