Worldpay Reports Third Quarter 2018 Results
CINCINNATI and LONDON, Nov. 8, 2018 /PRNewswire/ -- Worldpay, Inc. (NYSE: WP, LSE: WPY) ("Worldpay" or the "Company") today announced financial results for the third quarter ended September 30, 2018. Worldpay, Inc. was formed on January 16, 2018 through Vantiv, Inc.'s previously announced acquisition of Worldpay Group plc. Net revenue for Worldpay, Inc. increased 84% to $1,017.9 million as compared to $554.2 million in Vantiv Inc.'s prior year period. Had the Vantiv Inc./Worldpay Group plc transaction closed on January 1, 2017, net revenue would have increased by 9% on a pro forma basis as compared to the prior year period. On a GAAP basis, net income per diluted share attributable to Worldpay, Inc. decreased 98% to $0.01 as compared to $0.57 in the prior year period. The GAAP decrease is primarily due to transition, acquisition and integration costs and intangible amortization incurred in connection with the Vantiv, Inc./Worldpay Group plc transaction. Adjusted net income per share increased 17% to $1.05 as compared to $0.90 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.)
"I am excited about the momentum that we are building in the marketplace as the newly combined Worldpay," said Charles Drucker, chairman and co-chief executive officer of Worldpay. "We are winning because we offer our clients a powerful value proposition that includes a unique combination of global reach, innovative technologies, and tailored solutions that differentiates us from our competitors."
Worldpay, Inc. Third Quarter 2018 Results
(unaudited)
(in millions, except share data)
---
Three Months Ended
September 30, September 30,
% Change
Pro Forma (2)
Pro Forma (2)
2018 2017 (1) % Change Constant
Currency
% Change
---
Net revenue $
1,017.9 $
554.2 84% 9% 9%
Technology Solutions 419.7 224.7 87% 17% 17%
Merchant Solutions 507.5 244.1 108% 4% 4%
Issuer Solutions 90.7 85.4 6% 4% 4%
Adjusted EBITDA $
496.8 270.1 84%
Adj. EBITDA Margin 48.8% 48.7%
GAAP Net income attributable to Worldpay, Inc. $
2.8 $
92.1 (97)%
GAAP Net income per diluted share attributable to $
0.01 $
0.57 (98)%
Worldpay, Inc.
Adjusted net income $
330.8 $
168.0 97%
Adjusted net income per share $
1.05 $
0.90 17%
(1) 2017 actuals include Vantiv, Inc.
results only.
Illustrates what the combined
results would have been had the
Vantiv, Inc./Worldpay Group plc
transaction closed on January 1,
(2) 2017.
Adjusted EBITDA
Adjusted EBITDA was $496.8 million or 48.8% of net revenue in the third quarter, representing 10 basis points of margin expansion as compared to Vantiv, Inc. results on a stand-alone basis in the prior year period. Had the Vantiv, Inc./Worldpay Group plc transaction closed on January 1, 2017, Adjusted EBITDA margins would have expanded by 150 basis points on a pro forma basis over the prior year period.
Worldpay, Inc. Fourth Quarter and Full-Year Financial Outlook
(in millions, except share data)
---
Fourth Quarter Financial Outlook Full Year Financial Outlook
Three Months Ended December 31, Year Ended December 31,
2018 Outlook 2017 Actual (2)
2018 Outlook (1) 2017 Actual (2)
---
Net revenue
$1,027 - $1,055 $569
$3,900 - $3,930 $2,123
GAAP Net income (loss) per diluted share
$0.06 - $0.20 $(0.37)
($0.25) - ($0.09) $0.80
attributable to Worldpay, Inc.
Adjusted net income per share
$1.05 - $1.10 $0.97
$3.95 - $4.00 $3.37
(1) Combined company guidance
excludes Worldpay Group plc
net revenue and EPS
contribution for the period
from January 1, 2018 -January
15, 2018, prior to the
completion of its previously
announced acquisition by
Vantiv, Inc. on January 16,
2018. Combined company
guidance is based on an
assumed exchange rate of U.S.
dollar/pound sterling of
$1.31.
(2) 2017 actuals include Vantiv,
Inc. results only.
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 third quarter 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 5170010#. 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 5170010#. 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 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) our ability to expand our market share or enter new markets; (vi) our ability to successfully integrate the businesses of our predecessor companies; (vii) our ability to identify and complete acquisitions, joint ventures and partnerships; (viii) failure to comply with applicable requirements of Visa, MasterCard or other payment networks or changes in those requirements; (ix) our ability to pass along fee increases; (x) termination of sponsorship or clearing services; (xi) loss of clients or referral partners; (xii) reductions in overall consumer, business and government spending; (xiii) fraud by merchants or others; (xiv) a decline in the use of credit, debit or prepaid cards; (xv) consolidation in the banking and retail industries; (xvi) changes in foreign currency exchange rates; (xvii) the effects of governmental regulation or changes in laws; (xviii) geopolitical, regulatory, tax and business risks associated with our international operations; and (xix) outcomes of future litigation or investigations and 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
Schedule 1
Worldpay, Inc.
Consolidated Statements of Income
(Unaudited)
(in millions, except share data)
Three Months Ended September 30, Nine Months Ended September 30,
2018 2017 Change 2018 2017 Change
---
Revenue $
1,017.9 $
1,033.7 (2) $
2,875.4 $
2,960.6 (3)
%
%
Network fees and other costs - 479.5
NM 1,406.3
NM
Net Revenue(1) 1,017.9 554.2 84 2,875.4 1,554.3 85
% %
Sales and marketing 295.8 173.8 70 845.2 497.1 70
% %
Other operating costs 174.8 79.4 120 515.4 234.3 120
%
%
General and administrative 140.7 49.6 184 527.6 189.6 178
%
%
Depreciation and amortization 328.9 82.5 299 824.0 237.0 248
%
%
Income from operations 77.7 168.9 (54) 163.2 396.3 (59)
%
%
Interest expense-net (75.2) (38.5) 95 (230.3) (97.4) 136
%
%
Non-operating (expense) income(2) (3.5) 21.2 (117) (34.1) 13.7 (349)
% %
(Loss) income before applicable income taxes (1.0) 151.6 (101) (101.2) 312.6 (132)
% %
Income tax (benefit) expense (4.6) 44.7 (110) (5.0) 83.5 (106)
% %
Net income (loss) 3.6 106.9 (97) (96.2) 229.1 (142)
%
%
Less: Net income attributable to non- (0.8) (14.8) (95) (1.5) (39.3) (96)
%
%
controlling interests
Net income (loss) attributable to $
2.8 $
92.1 (97) $
(97.7) $
189.8 (151)
%
%
Worldpay, Inc.
Net income (loss) per share attributable to
Worldpay, Inc. Class A common stock:
Basic $
0.01 $
0.57 (98) $
(0.34) $
1.18 (129)
%
%
Diluted(3) $
0.01 $
0.57 (98) $
(0.34) $
1.17 (129)
%
%
Shares used in computing net income (loss)
per share of Class A common stock:
Basic 301,240,681 161,465,849 290,385,855 161,205,066
Diluted 313,881,826 162,882,396 290,385,855 162,617,782
_______________
(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 and
nine months ended September 30,
2018, Revenue is equivalent to Net
revenue as a result of the company's
adoption of ASC 606. For the three
and nine months ended September 30,
2017, Net revenue is equivalent to
Revenue less Network fees and other
costs.
(2) Non-operating expense during the
nine months ended September 30,
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 nine months ended
September 30, 2017 primarily
consists of 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) 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 nine months ended
September 30, 2018, approximately
13.5 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. Additionally, during the
three and nine months ended
September 30, 2017, approximately
23.6 million and 31.2 million
weighted-average dilutive 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 nine months ended September 30,
2018 and for the three and nine
months ended September 30, 2017.
Additionally, due to the net loss
for the nine months ended September
30, 2018, any remaining potentially
dilutive securities were also
excluded from the denominator in
computing dilutive net income per
share.
Three Months Ended September 30, Nine Months Ended September 30,
2018 2017 2018 2017
(Loss) income before applicable income taxes $
(1.0)
$
$
$
Taxes (3.6)
Net income (loss) $
2.6 $
92.1 $
(97.7) $
189.8
Diluted shares 313,881,826 162,882,396 290,385,855 162,617,782
Diluted EPS $
0.01 $
0.57 $
(0.34) $
1.17
Schedule 2
Worldpay, Inc.
Adjusted Net Income
(Unaudited)
(in millions, except share data)
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
2018 2017 % Change 2018 2017 % Change
---
Net (loss) income before applicable $
(1.0) $
151.6 (101) $
(101.2) $
312.6 (132)
% %
income taxes
Non-GAAP Adjustments:
Transition, acquisition and 47.4 5.1 829 277.6 67.9 309
% %
integration costs(1) (2)
Share-based compensation(2) 42.8 13.6 215 99.0 35.1 182
% %
Intangible amortization(2) (3) 289.5 55.3 424 715.0 161.5 343
% %
Non-operating expense (income)(4) 3.5 (21.2) (117) 34.1 (13.7) (349)
% %
Non-GAAP adjusted income 382.2 204.4 87 1,024.5 563.4 82
% %
before applicable income taxes
Less: Adjustments
Adjusted tax expense(5) 50.9 35.9 42 128.7 94.8 36
% %
Adjusted tax rate 13
% 18
% 13
% 17
%
Other(6) 0.5 0.5 % 1.2 1.2 %
Adjusted net income $
330.8 $
168.0 97 $
894.6 $
467.4 91
% %
Adjusted net income per share $
1.05 $
0.90 17 $
2.92 $
2.41 21
% %
Adjusted shares outstanding(7) 313,881,826 186,524,461 306,107,456 193,860,354
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
terminations and other transition
activities. Included in
Transition, acquisition and
integration costs in the nine
months ended September 30, 2017
is a $38 million charge 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 September 30, 2018 Three Months Ended September 30, 2017
Transition, Share-Based Amortization Transition, Share-Based Amortization
Acquisition & Compensation of Intangible Acquisition Compensation of Intangible
Integration Assets & Assets
Integration
---
Other operating costs $
16.8
$
$ $
2.6
$
$
General and administrative 30.6 42.8 2.5 13.6
Depreciation and amortization - 289.5 55.3
Total adjustments $
47.4 $
42.8 $
289.5 $
5.1 $
13.6 $
55.3
Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017
Transition, Share-Based Amortization Transition, Share-Based Amortization
Acquisition & Compensation of Intangible Acquisition Compensation of Intangible
Integration Assets & Assets
Integration
---
Other operating costs $
54.0
$
$ $
10.9
$
$
General and administrative 223.6 99.0 57.0 35.1
Depreciation and amortization - 715.0 161.5
Total adjustments $
277.6 $
99.0 $
715.0 $
67.9 $
35.1 $
161.5
(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
effective tax
rate of 19.8%
for 2018 and
34.0% 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: (1) the
amortization
of intangible
assets and
other tax
attributes
resulting
from or
acquired with
our
acquisitions,
(2) the tax
basis step up
associated
with our
separation
from Fifth
Third Bank
and (3) the
purchase or
exchange of
Class B units
of Worldpay
Holding, net
of payment
obligations
under tax
receivable
agreements.
The effective
tax rate is
expected to
remain at
19.8% for the
remainder of
2018.
(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
includes 13.5
million of
weighted
average Class
B units of
Worldpay
Holding and
other
potentially
dilutive
securities
that are
excluded from
the GAAP
dilutive net
income per
share
calculation
for the nine
months ended
September 30,
2018. The
adjusted
shares
outstanding
includes 23.6
million and
31.2 million
of weighted
average Class
B units of
Worldpay
Holding that
are excluded
from the GAAP
dilutive net
income per
share
calculation
for the three
and nine
months ended
September 30,
2017,
respectively.
Schedule 3
Worldpay, Inc.
Segment Information
(Unaudited)
(in millions)
Technology Solutions
---
Three Months Ended September 30,
2018 2017 % Change
---
Revenue $
419.7 $
339.9 23
%
Network fees and other costs - 115.2
NM
Net revenue(1) 419.7 224.7 87
%
Sales and marketing 115.2 73.6 57
%
Segment profit $
304.5 $
151.1 102
%
===
Nine Months Ended September 30,
2018 2017 % Change
---
Revenue $
1,157.7 $
919.4 26
%
Network fees and other costs - 335.3
NM
Net revenue(1) 1,157.7 584.1 98
%
Sales and marketing 309.2 203.3 52
%
Segment profit $
848.5 $
380.8 123
%
===
Merchant Solutions
---
Three Months Ended September 30,
2018 2017 % Change
---
Revenue $
507.5 $
576.7 (12)
%
Network fees and other costs - 332.6
NM
Net revenue(1) 507.5 244.1 108
%
Sales and marketing 174.0 94.4 84
%
Segment profit $
333.5 $
149.7 123
%
===
Nine Months Ended September 30,
2018 2017 % Change
---
Revenue $
1,460.1 $
1,695.9 (14)
%
Network fees and other costs - 976.2
NM
Net revenue(1) 1,460.1 719.7 103
%
Sales and marketing 516.8 276.3 87
%
Segment profit $
943.3 $
443.4 113
%
===
Issuer Solutions
---
Three Months Ended September 30,
2018 2017 % Change
---
Revenue $
90.7 $
117.1 (23)
%
Network fees and other costs - 31.7
NM
Net revenue(1) 90.7 85.4 6
%
Sales and marketing 6.6 5.8 14
%
---
Segment profit $
84.1 $
79.6 6
%
===
Nine Months Ended September 30,
2018 2017 % Change
---
Revenue $
257.6 $
345.3 (25)
%
Network fees and other costs - 94.8
NM
Net revenue(1) 257.6 250.5 3
%
Sales and marketing 19.2 17.5 10
%
---
Segment profit $
238.4 $
233.0 2
%
===
_______________
(1) See note (1) in Schedule 1.
Schedule 4
Worldpay, Inc.
Condensed Consolidated Statements of Financial Position
(Unaudited)
(in millions)
September 30, 2018 December 31, 2017
Assets
Current assets:
Cash and cash equivalents $
373.7 $
126.5
Accounts receivable-net 1,599.8 986.6
Merchant float 1,427.9
Settlement assets 3,306.8 142.0
Prepaid expenses 87.3 33.5
Other 549.3 84.0
Total current assets 7,344.8 1,372.6
Customer incentives 66.3 68.4
Property, equipment and software-net 1,053.8 473.7
Intangible assets-net 3,364.8 678.5
Goodwill 14,674.8 4,173.0
Deferred taxes 789.8 739.5
Proceeds from senior unsecured notes 1,135.2
Other assets 67.2 26.1
Total assets $
27,361.5 $
8,667.0
Liabilities and equity
Current liabilities:
Accounts payable and accrued expenses $
1,169.2 $
631.9
Settlement obligations 5,396.3 816.2
Current portion of notes payable 226.5 107.9
Current portion of tax receivable agreement obligations 109.1 245.5
Deferred income 23.1 18.9
Current maturities of capital lease obligations 25.2 8.0
Other 609.9 6.0
Total current liabilities 7,559.3 1,834.4
Long-term liabilities:
Notes payable 7,723.7 5,586.4
Tax receivable agreement obligations 589.7 535.0
Capital lease obligations 22.4 4.5
Deferred taxes 540.3 65.6
Other 104.6 40.5
Total long-term liabilities 8,980.7 6,232.0
Total liabilities 16,540.0 8,066.4
Commitments and contingencies
Equity:
Total equity (1) 10,821.5 600.6
Total liabilities and equity $
27,361.5 $
8,667.0
_______________
(1) Includes equity attributable to
non-controlling interests.
Schedule 5
Worldpay, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(in millions)
Nine Months Ended
September 30, 2018 September 30, 2017
---
Operating Activities:
Net (loss) income $
(96.2) $
229.1
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense 824.0 237.0
Amortization of customer incentives 19.9 18.7
Amortization and write-off of debt issuance costs 73.2 3.9
Gain on foreign currency forward (35.9) (24.4)
Share-based compensation expense 99.0 35.1
Deferred tax expense (26.2) 60.0
Tax receivable agreements non-cash items (4.7) (6.1)
Other (6.5) 2.3
Change in operating assets and liabilities:
Accounts receivable (67.0) 46.7
Net settlement assets and obligations (366.5) 4.3
Customer incentives (19.4) (17.7)
Prepaid and other assets (22.4) (82.9)
Accounts payable and accrued expenses (140.8) 22.3
Other liabilities (10.9) (17.4)
Net cash provided by operating activities 219.6 510.9
Investing Activities:
Purchases of property and equipment (191.9) (81.9)
Acquisition of customer portfolios and related assets and other (56.0) (38.2)
Purchase of interest rate caps (8.1)
Proceeds from foreign currency forward 71.5
Cash acquired (used) in acquisitions, net of cash used 1,396.3 (531.5)
Net cash provided by (used in) investing activities 1,211.8 (651.6)
Financing Activities:
Proceeds from issuance of long-term debt 2,951.8 1,270.0
Borrowings on revolving credit facility 3,308.0 5,405.0
Repayment of revolving credit facility (3,533.0) (5,046.0)
Repayment of debt and capital lease obligations (2,732.6) (108.0)
Payment of debt issuance costs (91.1) (24.0)
Proceeds from issuance of Class A common stock under employee stock plans 18.2 10.8
Repurchase of Class A common stock (to satisfy tax withholding obligations) (16.2) (9.2)
Purchase and cancellation of Class A common stock - (1,268.1)
Settlement of certain tax receivable agreements (112.5) (77.3)
Payments under tax receivable agreements (55.3) (46.5)
Distributions to non-controlling interests (7.7) (12.5)
Net cash (used in) provided by financing activities (270.4) 94.2
Net increase (decrease) in cash and cash equivalents 1,161.0 (46.5)
Cash and cash equivalents-Beginning of period 1,272.2 139.1
Effect of exchange rate changes on cash (143.5)
Cash and cash equivalents-End of period $
2,289.7 $
92.6
Cash Payments:
Interest $
205.1 $
94.3
Income taxes 16.7 31.6
Schedule 6
Worldpay, Inc.
Reconciliation of GAAP Net Income to Adjusted EBITDA
(Unaudited)
(in millions)
Three Months Ended September 30, Nine Months Ended September 30,
2018 2017 % Change 2018 2017 % Change
---
Net income (loss) $
3.6 $
106.9 (97) $
(96.2) $
229.1 (142)
%
%
Income tax (benefit) expense (4.6) 44.7 (110) (5.0) 83.5 (106)
% %
Non-operating expense (income)(1) 3.5 (21.2) (117) 34.1 (13.7) (349)
% %
Interest expense-net 75.2 38.5 95 230.3 97.4 136
% %
Share-based compensation 42.8 13.6 215 99.0 35.1 182
% %
Transition, acquisition and integration costs(2) 47.4 5.1 829 277.6 67.9 309
% %
Depreciation and amortization 328.9 82.5 299 824.0 237.0 248
% %
Adjusted EBITDA $
496.8 $
270.1 84 $
1,363.8 $
736.3 85
% %
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 (2) in Schedule 1.
(2) See note (2) in Schedule 2.
Schedule 7
Worldpay, Inc.
Outlook Summary
(Unaudited)
Fourth Quarter Financial Outlook Full Year Financial Outlook
Three Months Ended December 31, Year Ended December 31,
2018 Outlook 2017 Actual (2)
2018 Outlook (1) 2017 Actual (2)
---
GAAP net income (loss) per share attributable to
$0.06 - $0.20 $(0.37)
($0.25) - ($0.09) $0.80
Worldpay, Inc.
Adjustments to reconcile GAAP to non-GAAP
$0.99 - $0.90 $1.34
$4.20 - $4.09 $2.57
adjusted net income per share(3)
Adjusted net income per share
$1.05 - $1.10 $0.97
$3.95 - $4.00 $3.37
===
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) Combined company guidance excludes
Worldpay Group plc EPS contribution
for the period prior to the
acquisition closing from January 1,
2018 to January 15, 2018. Combined
company guidance is based on an
assumed exchange rate of U.S.
dollar/pound sterling of $1.31.
(2) 2017 actuals include Vantiv, Inc.
results only.
(3) Represents estimated ranges of
adjustments including the following
items: (a) acquisition and
integration costs incurred in
connection with our acquisitions,
charges related to employee
termination benefits and other
transition activities; (b) share-
based compensation; (c) amortization
of intangible assets acquired in
business combinations and customer
portfolio and related asset
acquisitions; (d) non-operating
income (expenses), (f) adjustments
to income tax expense to reflect an
effective tax rate based on tax
reform and our new tax structure for
the three months ended December 31,
2018 and the full year 2018, which
includes the impact of the excess
tax benefit relating to stock
compensation as a result of the
Company adopting the new stock
compensation accounting guidance in
2017, assuming conversion of the
Fifth Third Bank non-controlling
interests into shares of Class A
common stock, including the tax
effect of adjustments described
above; and (g) tax benefits due to
the amortization of intangible
assets and other tax attributes
resulting from or acquired with our
acquisitions, and to the tax basis
step up associated with our
separation from Fifth Third Bank and
the purchase or exchange of Class B
units of Worldpay Holding, net of
payment obligations under tax
receivable agreements.
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SOURCE Worldpay, Inc.
