ATLANTA, Nov. 07, 2018 (GLOBE NEWSWIRE) -- EVO Payments, Inc. (NASDAQ: EVOP) today announced its third quarter financial results. For the third quarter ended September 30, 2018, revenue increased 9% to $144.8 million, compared to $132.6 million in the prior year. On a currency-neutral basis, revenue increased 11% over the prior year. On a GAAP basis for the third quarter, net loss attributable to EVO Payments, Inc. was $27.4 million or $1.51 per diluted share. Adjusted EBITDA defined as earnings before interest, taxes, depreciation, amortization, and the impact of share-based compensation, transition, acquisition-related and integration costs, increased 10% to $38.4 million for the quarter, compared to $35.1 million in the prior year. On a currency-neutral basis, adjusted EBITDA grew 13% over the prior year.
For the nine months ended September 30, 2018, revenue increased 13% to $413.9 million, compared to $366.2 million in the prior year period. On a currency-neutral basis, revenue increased 10% over the prior year. On a GAAP basis for the year-to-date period, net loss attributable to EVO Payments, Inc. was $10.7 million or $0.60 per diluted share, representing net loss from the initial public offering date forward. Adjusted EBITDA increased 14% to $104.1 million for the nine months ended September 30, 2018, compared to $91.4 million in the prior year. On a currency-neutral basis, adjusted EBITDA grew 11% for the year-to-date period compared with the same period in the prior year (See Schedule 1 for the Condensed Consolidated Statements of Operations and Schedule 4 for the Reconciliation of GAAP to Non-GAAP measures).
“We are very pleased with our third quarter performance,” said James G. Kelly, Chief Executive Officer of EVO. “Once again, we produced solid growth in both Europe and North America. This was the result of our two-pronged strategy of first, building long-term distribution through alliances with leading financial institutions, ISVs, B2B relationships, and eCommerce partners and second, developing leading products and services to meet our customer needs. This strategy is further strengthened by our focus on our operating leverage and efficiencies. Since our last earnings release, we have announced a new, 10-year, exclusive partnership with EuroBic in Portugal, expanding our reach into a new market within our European segment. We also acquired ClearONE out of Europe and Galaxy Pay in the U.S., both of which enhance our tech-enabled offering, and completed two operating and processing integrations. These achievements were all in line with our expectations.”
Outlook
For the full year 2018, we have updated guidance based on recent trends, completed acquisitions, and changes in FX. The Company now expects revenue to range from $561 million to $567 million, reflecting growth of 11% to 12% over 2017 reported results and 10% to 11% over currency-neutral 2017 results. Adjusted EBITDA is now expected to be in a range of $143 million and $146 million, reflecting growth of 12% to 14% over 2017 adjusted EBITDA and 11% to 13% over currency-neutral 2017 adjusted EBITDA. Adjusted EBITDA margin is now expected to range from 25.5% to 25.7%, reflecting growth of 25 to 45 basis points over 2017 currency-neutral results. Excluding the costs related to our investments in Europe, year-over-year margins would have increased by 95 to 115 basis points. Net loss attributable to EVO per share is now expected to be in a range of ($0.59) to ($0.53), and pro forma adjusted net income is expected to range from $0.47 to $0.52 per adjusted diluted share.
Non-GAAP financial measures
EVO Payments, Inc. has supplemented revenue, net income/(loss) and earnings per share information determined in accordance with GAAP by providing these and other measures on an adjusted basis in this release to assist with evaluating performance. Such financial measures should not be considered as an alternative to GAAP revenue or net income/(loss), and such measures may not be comparable to those reported by other companies. Management uses these adjusted financial performance measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Management also uses these non-GAAP financial measures, together with other metrics, to set goals for and measure the performance of the business and to determine incentive compensation. The Company believes that these adjusted measures provide useful information to investors about operating results and enhance the overall understanding of financial performance of the Company’s core business by presenting the Company’s results without giving effect to equity-based compensation, giving pro forma effect to the Company’s going forward effective tax rate following its Up-C reorganization, costs related to restructuring transactions, acquisition costs and other transitionary costs. This release also contains information on various financial measures presented on a currency-neutral basis. The Company believes these currency-neutral measures provide useful information to investors about the Company’s performance without taking into account fluctuations caused by currency exchange rates in the non-U.S. jurisdictions where the Company operates. Reconciliations of each non-GAAP measure to the most directly comparable GAAP measure are included in the schedules to this release.
About EVO Payments, Inc.
EVO Payments, Inc. (NASDAQ: EVOP) is a leading payment technology and services provider. EVO offers an array of innovative, reliable, and secure payment solutions to merchants ranging from small and mid-size enterprises to multinational companies and organizations across North America and Europe. As a fully integrated merchant acquirer and payment processor in over 50 markets and 150 currencies worldwide, EVO provides competitive solutions that promote business growth, increase customer loyalty, and enhance data security in the international markets it serves.
