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Segment Information
9 Months Ended
Sep. 30, 2018
Segment Information  
Segment Information

(14)Segment Information

Information on segments and reconciliations to revenue and net income attributable to the shareholders of EVO, Inc. and members of EVO, LLC are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 

 

Nine Months Ended September 30, 

 

    

2018

    

2017

    

2018

    

2017

 

    

(In thousands) 

    

(In thousands) 

Segment revenue:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

79,487

 

$

75,042

 

$

232,687

 

$

216,956

Europe

 

 

65,271

 

 

57,604

 

 

181,244

 

 

149,209

Revenue

 

$

144,758

 

$

132,646

 

$

413,931

 

$

366,165

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment profit:

 

 

  

 

 

  

 

 

  

 

 

  

North America

 

$

30,962

 

$

21,372

 

$

73,616

 

$

57,009

Europe

 

 

15,985

 

 

16,101

 

 

42,657

 

 

41,495

Total segment profit

 

 

46,947

 

 

37,473

 

 

116,273

 

 

98,504

Corporate

 

 

(8,518)

 

 

(8,923)

 

 

(31,879)

 

 

(19,065)

Depreciation and amortization

 

 

(20,488)

 

 

(19,806)

 

 

(61,308)

 

 

(55,479)

Net interest expense

 

 

(10,076)

 

 

(15,626)

 

 

(45,831)

 

 

(45,565)

Provision for income tax expense

 

 

(32,155)

 

 

(5,377)

 

 

(7,974)

 

 

(14,734)

Share-based compensation expense

 

 

(2,021)

 

 

 —

 

 

(53,284)

 

 

 —

Net loss attributable to EVO Investco, LLC

 

 

 

 

$

(12,259)

 

 

 

 

$

(36,339)

Net (loss) income attributable to non-controlling interest of EVO Investco, LLC

 

 

(1,078)

 

 

 

 

 

73,328

 

 

 

Net income attributable to EVO Payments, Inc.

 

$

(27,389)

 

 

 

 

$

(10,675)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

 

 

  

 

 

 

North America

 

$

7,010

 

$

2,944

 

$

19,802

 

$

8,029

Europe

 

 

5,983

 

 

7,295

 

 

19,161

 

 

16,360

Consolidated total capital expenditures

 

$

12,993

 

$

10,239

 

$

38,963

 

$

24,389

For the purpose of discussing segment operations, the Company refers to “segment profit” which is segment revenue less (1) segment expenses plus (2) segment income from unconsolidated investees plus (3) segment other income, net less (4) segment non-controlling interests of EVO, LLC consolidating entities. The expenses related to certain Company-wide governance functions, depreciation and amortization, and EVO, LLC non-controlling interests are not allocated to segments; they are reported in the captions “Corporate” and “Net income attributable to non-controlling interest of EVO Investco, LLC”, respectively.

 

 

Information on segments and reconciliations to total assets are as follows:

 

 

 

 

 

 

 

 

 

 

September 30, 

 

December 31, 

Segment total assets:

 

2018

    

2017

North America

 

$

1,138,628

 

$

1,010,859

Europe

 

 

553,441

 

 

497,439

Total assets

 

$

1,692,069

 

$

1,508,298

Revenue from external customers is attributed to individual countries based on the location where the relationship is managed. For the three months ended September 30, 2018, revenue from external customers in the United States, Poland and Mexico, as a percentage of revenues, were 37.1%,  24.1%, and 19.0%, respectively.  For the three months ended September 30, 2017, revenue from external customers in the United States, Poland and Mexico, as a percentage of revenue, were 37.0%,  19.5%, and 22.8%, respectively. For the nine months ended September 30, 2018, revenue from external customers in the United States, Poland and Mexico, as a percentage of revenue, were 35.7%,  24.2%, and 19.9%, respectively.  For the nine months ended September 30, 2017, revenue from external customers in the United States, Poland and Mexico, as a percentage of revenue, were 39.4%,  21.4%, and 19.8%, respectively. For the three and nine months ended September 30, 2018 and 2017, there is no one customer that represents more than 10% of revenue in the segments.