Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

(17) Segment Information

As of June 30, 2020, the Company’s operations consisted of 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 ATM 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’s Australia & New Zealand segment consists of its ATM operations in these two countries. Corporate primarily 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.

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), the obligation for the payment of income taxes, net interest expense, 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 the Company's 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 loss, net loss, 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 (loss) income attributable to controlling interests and available to common shareholders to EBITDA and Adjusted EBITDA:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(In thousands)
Net (loss) income attributable to controlling interests and available to common shareholders	$	(1,922)	$	10,471	$	3,833	$	14,790
Adjustments:
Interest expense, net	8,809		6,871		15,230		13,514
Amortization of deferred financing costs and note discount	4,399		3,330		7,885		6,622
Loss on extinguishment of convertible notes	3,018		—		3,018		—
Income tax (benefit) expense	(10,687)		3,565		(14,424)		6,694
Depreciation and accretion expense	32,072		33,205		64,283		66,178
Amortization of intangible assets	8,849		12,591		17,262		25,003
EBITDA	44,538		70,033		97,087		132,801
Add back:
Loss on disposal and impairment of assets	112		1,496		1,033		2,464
Other (income) expenses (1)	(6,364)		1,456		(2,535)		(5,751)
Noncontrolling interests (2)	15		16		28		31
Share-based compensation expense	5,029		5,250		10,222		9,734
Restructuring expenses (3)	3,340		3,463		4,549		3,463
Adjusted EBITDA	$	46,670	$	81,714	$	110,384	$	142,742

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

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

(3)For the three and six months ended June 30, 2020, our restructuring expenses included costs incurred in conjunction with facility closures, workforce reductions and other related charges. For the three and six months ended June 30, 2019, our restructuring expenses included professional fees and costs incurred in conjunction with facility closures and workforce reductions.

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

	Three Months Ended June 30, 2020
	North America		Europe & Africa		Australia & New Zealand		Corporate		Eliminations		Total
	(In thousands)
Revenue from external customers	$	172,625	$	48,392	$	12,175	$	—	$	—	$	233,192
Intersegment revenues	1,414		—		—		—		(1,414)		—
Cost of revenues	119,163		31,812		8,943		203		(1,414)		158,707
Selling, general, and administrative expenses	12,535		6,918		1,558		12,073		(226)		32,858
Restructuring expenses	1,205		2,077		—		58		—		3,340
Loss (gain) on disposal and impairment of assets	134		(19)		(3)		—		—		112
Adjusted EBITDA	42,341		9,663		1,674		(7,248)		240		46,670
Capital expenditures (1)	$	7,474	$	3,729	$	172	$	—	$	—	$	11,375

	Three Months Ended June 30, 2019
	North America		Europe & Africa		Australia & New Zealand		Corporate		Eliminations		Total
	(In thousands)
Revenue from external customers	$	212,670	$	103,333	$	24,818	$	—	$	—	$	340,821
Intersegment revenues	2,545		137		—		—		(2,682)		—
Cost of revenues	143,164		63,543		17,915		366		(2,606)		222,382
Selling, general, and administrative expenses	16,198		10,707		2,273		12,817		—		41,995
Restructuring expenses	213		400		—		2,850		—		3,463
Loss (gain) on disposal and impairment of assets	778		746		(28)		—		—		1,496
Adjusted EBITDA	55,852		29,223		4,629		(7,934)		(56)		81,714
Capital expenditures (1)	$	14,715	$	9,652	$	1,379	$	—	$	—	$	25,746

	Six Months Ended June 30, 2020
	North America		Europe & Africa		Australia & New Zealand		Corporate		Eliminations		Total
	(In thousands)
Revenue from external customers	$	377,006	$	130,256	$	32,532	$	—	$	—	$	539,794
Intersegment revenues	3,030		36		—		—		(3,066)		—
Cost of revenues	259,067		84,446		23,218		764		(3,066)		364,429
Selling, general, and administrative expenses	29,584		15,979		3,505		26,394		(226)		75,236
Restructuring expenses	1,205		3,077		—		267		—		4,549
Loss (gain) on disposal and impairment of assets	577		476		(20)		—		—		1,033
Adjusted EBITDA	91,340		29,914		5,807		(16,709)		32		110,384
Capital expenditures (1)	$	19,661	$	9,596	$	547	$	—	$	—	$	29,804

	Six Months Ended June 30, 2019
	North America		Europe & Africa		Australia & New Zealand		Corporate		Eliminations		Total
	(In thousands)
Revenue from external customers	$	414,334	$	193,929	$	50,828	$	—	$	—	$	659,091
Intersegment revenues	5,129		466		—		—		(5,595)		—
Cost of revenues	281,072		126,952		37,276		627		(5,462)		440,465
Selling, general, and administrative expenses	33,464		21,453		4,514		26,224		—		85,655
Restructuring expenses	213		400		—		2,850		—		3,463
Loss (gain) on disposal and impairment of assets	1,102		1,417		(55)		—		—		2,464
Adjusted EBITDA	104,927		45,991		9,038		(17,118)		(96)		142,742
Capital expenditures (1)	$	32,290	$	19,900	$	2,863	$	—	$	—	$	55,053

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

Identifiable Assets

	June 30, 2020		December 31, 2019
	(In thousands)
North America	$	1,248,045	$	1,141,084
Europe & Africa	463,810		511,037
Australia & New Zealand	55,554		60,416
Corporate	42,030		51,421
Total	$	1,809,439	$	1,763,958