LEAWOOD, Kan. - Transaction processor Euronet Worldwide, Inc. (NASDAQ: EEFT), reported net income of $6 million, or 17 cents fully diluted earnings per share, in 2004's third quarter, compared to net income of $1.4 million, or five cents per share, for 2003's third quarter.
Net income for the latest quarter included a foreign exchange gain of $400,000 and a loss of less than $100,000 on the early retirement of debt. Excluding this gain and loss, earnings per share were 16 cents, or $5.6 million. Net income for 2003's third quarter included a loss on discontinued operations of less than $100,000 and a foreign exchange translation loss of $200,000; excluding these losses, earnings per share were 6 cents, or $1.7 million.
The EFT Processing segment posted third quarter 2004 revenues of $20.9 million, compared to $12.9 million reported for 2003's third quarter 2003. Adjusted EBITDA was $6.5 million, compared to $4.1 million for 2003's third quarter. The segment processed 70.1 million transactions in 2004's third quarter, compared to 30 million transactions for the same period last year.
The segment completed the quarter with 5,404 ATMs owned or operated, compared to 3,254 ATMs at the end of 2003's third quarter.
Improved results in the latest quarter are largely attributable to the continued growth in ATMs under management, primarily in the Indian, Polish and Romanian markets, together with transactional growth from the ATMs. Euronet owns and/or operates ATMs in Hungary, Poland, Germany, Croatia, the Czech Republic, U.K., Greece, Romania, Slovakia, Kosovo, India and Egypt.
The Prepaid Processing segment reported third quarter 2004 revenues of $75.4 million, compared to $36.5 million for 2003's third quarter. Adjusted EBITDA was $9.3 million, compared to $3.9 million for 2003's third quarter. Total transactions processed by the segment were 59.8 million, compared to 26.3 million prepaid transactions in 2003's third quarter.
The Prepaid Processing segment's revenue improvements were the result of a continuation of transaction growth from the company's e-pay group, combined with the results of transact Elektronische Zahlungssysteme GmbH, a German prepaid processor which was acquired in November 2003, and the company's U.S. prepaid operations.
Euronet has expanded its prepaid business in the U.S. through the September 2003 acquisition of Austin International Marketing and Investments, Inc. (AIM), the January 2004 acquisition of Prepaid Concepts, Inc. (Precept), the May 2004 acquisition of Electronic Payment Solutions (EPS) and the July 2004 acquisition of Call Processing Inc. (CPI).
The Software Solutions segment reported $3.6 million in revenues, compared to $3.6 million in revenues for third quarter 2003.
The Corporate and Other segment had $2.5 million of expenses in 2004's third quarter, compared to $1.9 million for 2003's third quarter, primarily due to increases in professional fees.
