Business Wire | Feb 25, 2021 07:00AM EST

EVO Reports Fourth Quarter and Year-End 2020 Results

Feb. 25, 2021

ATLANTA--(BUSINESS WIRE)--Feb. 25, 2021--EVO Payments, Inc. (NASDAQ: EVOP) ("EVO" or the "Company") today announced its fourth quarter and year-end 2020 financial results. For the fourth quarter ended December 31, 2020, reported revenue was $116.7 million compared to $129.4 million in the prior year. On a reported and currency neutral basis, revenue for the fourth quarter decreased 10%. On a GAAP basis for the quarter ended December 31, 2020, net income was $3.9 million compared to a net loss of $3.2 million in the prior year. Adjusted EBITDA decreased 7% to $44.7 million for the quarter, and on a currency neutral basis, adjusted EBITDA declined 6% compared to the prior year.

For the twelve months ended December 31, 2020, reported revenue was $439.1 million compared to $485.8 million in the prior year, a decrease of 10%. On a currency neutral basis, reported revenue for the twelve months ended December 31, 2020 decreased 8%. On a GAAP basis for the twelve months ended December 31, 2020, the Company recognized a net loss of $4.2 million, which is a significant improvement from a net loss of $23.4 million recognized in the prior year. Adjusted EBITDA decreased 9% to $146.6 million for the twelve months ended December 31, 2020. On a currency neutral basis, adjusted EBITDA declined 5% compared to the prior year.

"Our financial performance in 2020 reflects the impact of the COVID-19 pandemic, which we were able to withstand thanks to our strong partnerships with leading financial institutions, tech-enabled relationships, and the dedication of our employees in all of our markets," said James G. Kelly, Chief Executive Officer of EVO. "Despite the challenges we faced throughout the year, we were able to secure new partnerships and invest in tech-enabled products and services to continue to serve our customers. As we continue into 2021, we are well positioned to continue to expand our distribution, both organically and through M&A."

Outlook

We expect 2021 full-year GAAP revenue to range from $483 million to $491 million, representing growth of 10% to 12% over 2020 results. On a GAAP basis, net income is expected to range from $16 million to $24 million compared to a net loss of $4 million in 2020. Adjusted EBITDA is expected to be in the range of $170 million and $176 million, reflecting growth of 16% to 20% over 2020 adjusted EBITDA. The adjusted EBITDA margin is expected to range from 35.4% to 35.9%, reflecting expansion of 200 to 250 basis points over the 2020 EBITDA margin.

Conference Call

EVO's management will host a conference call for investors at 8:00 a.m. Eastern Time on Thursday, February 25, 2021 to discuss the results. Participants may register for the conference call via the investor relations section of the Company's website at investor.evopayments.com or at http://www.directeventreg.com/registration/event/8933917. A recording of the call will be archived on the Company's investor relations website following the live call.

Additional Resources

To assist in understanding the impact COVID-19 is having on our business, the Company has posted a summary of its recent payment volume trends on its investor relations website at https://investor.evopayments.com/4Q20paymentvolume.

Forward-Looking Statements

This release and the accompanying earnings conference call contain statements about future events and expectations that constitute forward-looking statements. Forward-looking statements are often identified by words such as "anticipates," "believes," "continues," "estimates," "expects," "goal," "objectives," "intends," "may," "opportunity," "plans," "potential," "near-term," "long-term," "projections," "assumptions," "projects," "guidance," "forecasts," "outlook," "target," "trends," "should," "could," "would," "will" and similar expressions. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current beliefs, assumptions, estimates, and expectations, taking into account the information currently available to us, and are not guarantees of future results or performance. Forward-looking statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements, and you should not place undue reliance on such statements. Factors that could contribute to these differences include the following: (1) the continuing impact of the COVID-19 pandemic on our business and our merchants, including the impact of social distancing, shelter-in-place, shutdowns of non-essential businesses and similar measures imposed or undertaken by governments; (2) our ability to anticipate and respond to changing industry trends and the needs and preferences of our customers and consumers; (3) the impact of substantial and increasingly intense competition; (4) the impact of changes in the competitive landscape, including disintermediation from other participants in the payments chain; (5) the effects of global economic, political, market, health and other conditions, including the impact of the COVID-19 pandemic; (6) our compliance with governmental regulations and other legal obligations, particularly related to privacy, data protection, information security, and consumer protection laws; (7) our ability to protect our systems and data from continually evolving cybersecurity risks or other technological risks; (8) failures in our processing systems, software defects, computer viruses, and development delays; (9) degradation of the quality of the products and services we offer, including support services; (10) risks associated with our ability to successfully complete, integrate and realize the expected benefits of acquisitions; (11) continued consolidation in the banking and payment services industries, including the impact of the combination of Banco Popular and Grupo Santander and the related bank branch consolidation; (12) increased customer, referral partner, or sales partner attrition; (13) the incurrence of chargebacks; (14) failure to maintain or collect reimbursements; (15) fraud by merchants or others; (16) the failure of our third-party vendors to fulfill their obligations; (17) failure to maintain merchant and sales relationships or financial institution alliances; (18) ineffective risk management policies and procedures; (19) our inability to retain smaller-sized merchants and the impact of economic fluctuations on such merchants, (20) damage to our reputation, or the reputation of our partners; (21) seasonality and volatility; (22) our inability to recruit, retain and develop qualified personnel; (23) geopolitical and other risks associated with our operations outside of the United States; (24) any decline in the use of cards as a payment mechanism or other adverse developments with respect to the card industry in general; (25) increases in card network fees; (26) failure to comply with card networks requirements; (27) a requirement to purchase the equity interests of our eService subsidiary in Poland held by our JV partner; (28) changes in foreign currency exchange rates; (29) future impairment charges; (30) risks relating to our indebtedness, including our ability to raise additional capital to fund our operations on economized terms or at all and exposure to interest rate risks; (31) the planned phase out of LIBOR and the transition to other benchmarks; (32) restrictions imposed by our credit facilities and outstanding indebtedness; (33) participation in accelerated funding programs; (34) failure to enforce and protect our intellectual property rights; (35) failure to comply with, or changes in, laws, regulations and enforcement activities, including those relating to corruption, anti-money laundering, data privacy, and financial institutions; (36) impact of new or revised tax regulations; (37) legal proceedings; (38) our dependence on distributions from EVO Investco LLC to pay our taxes and expenses, including certain payments to the Continuing LLC Owners (as defined in our public filings) and, in the event that any tax benefits are disallowed, our inability to be reimbursed for payments made to the Continuing LLC Owners; (39) our organizational structure, including benefits available to the Continuing LLC Owners that are not available to holders of our Class A common stock to the same extent; (40) the risk that we could be deemed an investment company under the Investment Company Act of 1940, as amended; (41) the significant influence the Continuing LLC Owners continue to have over us, including control over decisions that require the approval of stockholders; (42) certain provisions of Delaware law and antitakeover provisions in our organizational documents could delay or prevent a change of control; (43) certain provisions in our organizational documents, including those that provide Delaware as the exclusive forum for litigation matters and that renounce the doctrine of corporate opportunity; (44) our ability to maintain effective internal control over financial reporting and disclosure controls and procedures; (45) changes in our stock price, including relating to downgrades, analyst reports, and future sales by us or by existing stockholders; and (46) the other risks and uncertainties included from time to time in our filings with the SEC, including those listed under "Risk Factors" contained in Part I of our Annual Report on Form 10-K for the year ended December 31, 2019.

We qualify any forward-looking statements entirely by the cautionary factors listed above, among others. Other risks, uncertainties and factors, not listed above, could also cause our actual results to differ materially from those projected in any forward-looking statements we make. We assume no obligation to update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Non-GAAP financial measures

EVO Payments, Inc. has supplemented revenue, segment profit, net income (loss), earnings per share information and weighted average common shares determined in accordance with GAAP by providing these and other measures on an adjusted basis in this release. The non-GAAP financial measures presented herein should not be considered in isolation of, as a substitute for, or superior to, financial information prepared in accordance with GAAP, 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 facilitate 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 the Company's ongoing underlying operating performance 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 and costs related to transition, acquisition and integration matters, and giving effect to a normalized effective tax rate for the Company. 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 by excluding fluctuations caused solely by movements in 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.

Among other non-GAAP financial measures presented, this release contains a presentation of our adjusted EBITDA and adjusted net income, and adjusted net income per share information. These measures do not purport to be an alternative to cash flows from operating activities as a measure of liquidity, and are not intended to be a measure of free cash flow available for management's discretionary use as they do not consider certain cash requirements such as tax payments and, in the case of adjusted EBITDA, interest payments and debt service requirements. Further, adjusted EBITDA does not purport to be an alternative to net income as a measure of operating performance. These measures, or measures similar to them, are frequently used by analysts, investors and other interested parties to evaluate companies in the industry. Adjusted EBITDA is defined as net income (loss) before provision for income taxes, net interest expense, and depreciation and amortization, excluding the impact of net income attributable to non-controlling interests in consolidated entities (including related depreciation and amortization), share-based compensation, and transition, acquisition and integration costs. Adjusted net income is defined as net income (loss) adjusted to exclude income taxes, the impact of net income attributable to non-controlling interests in consolidated entities (including related depreciation and amortization), share-based compensation, transition, acquisition and integration costs, and amortization of acquisition intangibles and subsequently adjusted to give effect to a normalized tax rate for the Company. The calculation of adjusted EBITDA and adjusted net income have limitations as analytical tools, including: (a) they do not reflect the Company's cash expenditures, or future requirements for capital expenditures or contractual commitments; (b) they do not reflect changes in, or cash requirements for, the Company's working capital needs; (c) in the case of adjusted EBITDA, it does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on the Company's indebtedness; (d) they do not reflect the Company's tax expense or the cash requirements to pay the Company's taxes; and (e) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and these measures do not reflect any cash requirements for such replacements. Adjusted net income per share is defined as adjusted net income divided by pro forma weighted average shares. Pro forma weighted average shares is defined as GAAP common weighted average shares (equal to our weighted average Class A common shares) plus, our weighted average Class B common shares, weighted average Class C common shares, weighted average Class D common shares, dilutive equity awards measured under the treasury stock method, and weighted average preferred shares. Weighted average preferred shares is defined as the weighted average shares of Class A common stock issuable upon conversion of the Company's Series A convertible preferred stock.

Net Debt to Adjusted EBITDA ratio is a non-GAAP measure defined as total long-term debt less available cash (cash on the balance sheet less certain merchant settlement account balances and merchant reserves) divided by the trailing twelve month Adjusted EBITDA. This ratio is frequently used by investors, and management believes this measure provides relevant and useful information.

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 the globe. 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.

EVO PAYMENTS, INC. AND SUBSIDIARIESSchedule 1 - Consolidated Statements of Operations (unaudited)(in thousands, except share and per share data) Three Months Ended December 31, Year Ended December 31,

2020 2019 % 2020 2019 % change change

Revenue $ 116,673 $ 129,380 (10 %) $ 439,101 $ 485,778 (10 %)

Operatingexpenses:Cost of 21,302 23,465 (9 %) 84,336 96,365 (12 %)services andproductsSelling, 59,097 71,334 (17 %) 250,676 267,926 (6 %)general andadministrativeDepreciation 21,808 23,647 (8 %) 85,924 92,059 (7 %)andamortizationImpairment of 20 2,596 (99 %) 802 13,101 (94 %)intangibleassetsTotal operating 102,227 121,042 (16 %) 421,738 469,451 (10 %)expensesIncome from 14,446 8,338 73 % 17,363 16,327 6 %operationsOther income(expense):Interest income 315 604 (48 %) 1,172 2,872 (59 %)

Interest (6,244 ) (10,006 ) 38 % (30,160 ) (44,011 ) 31 %expenseIncome frominvestment in 146 124 18 % 456 560 (19 %)unconsolidatedinvesteesGain oninvestment in 1,824 - NM 17,574 - NM equitysecuritiesOther income, 1,798 2,937 (39 %) 2,551 5,434 (53 %)netTotal other (2,161 ) (6,341 ) 66 % (8,407 ) (35,145 ) 76 %expenseIncome (loss) 12,285 1,996 515 % 8,956 (18,818 ) NM before incometaxesIncome tax (8,423 ) (5,166 ) (63 %) (13,122 ) (4,548 ) (189 %)expenseNet income 3,862 (3,170 ) NM (4,166 ) (23,366 ) 82 %(loss)Less: Netincomeattributable to 1,545 3,079 (50 %) 7,189 7,877 (9 %)non-controllinginterests inconsolidatedentitiesLess: Netincome (loss)attributable to 1,253 (2,815 ) NM (9,679 ) (21,138 ) 54 %non-controllinginterests ofEVO Investco,LLCNet income(loss) 1,064 $ (3,434 ) NM (1,676 ) $ (10,105 ) 83 %attributable toEVO Payments,Inc.Less: Accrualof redeemable 2,397 6,528 preferred stockpaid-in-kinddividendsNet lossattributable to $ (1,333 ) $ (8,204 )Class A commonstock Earnings pershareBasic ($ 0.03 ) ($ 0.09 ) ($ 0.20 ) ($ 0.31 )

Diluted ($ 0.03 ) ($ 0.09 ) ($ 0.20 ) ($ 0.31 )

Weightedaverage Class Acommon stockoutstandingBasic 43,572,332 37,835,749 41,980,163 32,720,370

Diluted 43,572,332 37,835,749 41,980,163 32,720,370

EVO PAYMENTS, INC. AND SUBSIDIARIESSchedule 2 - Consolidated Balance Sheets (unaudited)(in thousands, except share data) December 31, December 31,

2020 2019

AssetsCurrent assets:Cash and cash equivalents $ 418,439 $ 304,089

Accounts receivable, net 17,052 15,881

Other receivables 20,128 24,438

Due from related parties 625 1,125

Inventory 5,221 9,128

Settlement processing assets 285,705 328,637

Other current assets 14,659 12,867

Total current assets 761,829 696,165

Equipment and improvements, net 83,606 94,464

Goodwill, net 383,108 378,838

Intangible assets, net 217,077 257,560

Investment in unconsolidated investees 839 2,078

Deferred tax assets 234,749 210,275

Operating lease right-of-use assets 35,124 45,664

Investment in equity securities, at fair value 25,526 -

Other assets 15,863 21,360

Total assets $ 1,757,721 $ 1,706,404

Liabilities and Shareholders' Equity (Deficit)Current liabilities:Settlement lines of credit $ 13,718 $ 33,103

Current portion of long-term debt 4,628 8,744

Accounts payable 9,482 13,584

Accrued expenses 113,127 110,079

Settlement processing obligations 446,344 449,302

Current portion of operating lease liabilities,inclusive of related party liability of $1.1 6,614 7,087 million and $1.2 million at December 31, 2020and December 31, 2019, respectivelyDue to related parties 5,124 7,325

Total current liabilities 599,037 629,224

Long-term debt, net of current portion 579,162 693,169

Due to related parties 185 385

Deferred tax liabilities 13,957 17,260

Tax receivable agreement obligations, inclusiveof related party liability of $164.3 million and 173,890 150,274 $141.1 million at December 31, 2020 and December31, 2019, respectivelyISO reserves 2,942 2,758

Operating lease liabilities, net of currentportion, inclusive of related party liability of 30,968 41,703 $2.2 million and $3.2 million at December 31,2020 and December 31, 2019, respectivelyOther long-term liabilities 7,047 1,830

Total liabilities 1,407,188 1,536,603

Commitments and contingenciesRedeemable non-controlling interests 1,055,633 1,052,448

Redeemable preferred stock (par value, $0.0001per share), Authorized, Issued and Outstanding -152,250 and 0 shares at December 31, 2020 and 154,118 - December 31, 2019, respectively. Liquidationpreference: $158,647 and $0 at December 31, 2020and December 31, 2019, respectivelyShareholders' equity (deficit):Class A common stock (par value $0.0001),Authorized - 200,000,000 shares, Issued and 5 4 Outstanding - 46,401,607 and 41,233,954 sharesat December 31, 2020 and December 31, 2019,respectivelyClass B common stock (par value $0.0001),Authorized - 40,000,000 shares, Issued and 3 3 Outstanding - 32,163,538 and 34,163,538 sharesat December 31, 2020 and December 31, 2019Class C common stock (par value $0.0001),Authorized - 4,000,000 shares, Issued and - - Outstanding - 1,720,425 and 2,321,955 shares atDecember 31, 2020 and December 31, 2019,respectivelyClass D common stock (par value $0.0001),Authorized - 32,000,000 shares, Issued and - - Outstanding - 2,390,870 and 4,354,978 shares atDecember 31, 2020 and December 31, 2019,respectivelyAdditional paid-in capital - -

Accumulated deficit attributable to Class A (675,209 ) (587,358 )common stockAccumulated other comprehensive income (loss) 1,045 (1,948 )

Total EVO Payments, Inc. shareholders' deficit (674,156 ) (589,299 )

Nonredeemable non-controlling interests (185,062 ) (293,348 )

Total deficit (859,218 ) (882,647 )

Total liabilities, redeemable non-controlling $ 1,757,721 $ 1,706,404 interests, redeemable preferred stock, andshareholders' deficit EVO PAYMENTS, INC. AND SUBSIDIARIESSchedule 3 - Consolidated Statements of Cash Flows (unaudited)(in thousands) Year Ended December 31,

2020 2019

Cash flows from operating activities:Net loss $ (4,166 ) $ (23,366 )

Adjustments to reconcile net loss to net cashprovided byoperating activities:Depreciation and amortization 85,924 92,059

Gain on sale of investment (336 ) (250 )

Gain on investment in equity securities (17,574 ) -

Amortization of deferred financing costs 2,675 2,680

Change in fair value of contingent consideration (86 ) 2,384

Loss on disposal of equipment and improvements 1,741 3,014

Share-based compensation expense 20,664 10,921

Impairment of intangible assets 802 13,101

Accrued interest expense (3,935 ) 3,492

Deferred taxes, net 2,599 (9,182 )

Other (1,654 ) (681 )

Changes in operating assets and liabilities, netof effect of acquisitions:Accounts receivable, net (267 ) (1,719 )

Other receivables 4,020 27,474

Inventory 3,993 (276 )

Other current assets (1,900 ) (592 )

Operating lease right-of-use assets 7,825 7,335

Other assets (1,303 ) (1,233 )

Related parties, net (1,783 ) 3,797

Accounts payable (8,326 ) (35,962 )

Accrued expenses 1,338 641

Settlement processing funds, net 34,157 (59,077 )

Operating lease liabilities (8,571 ) (6,745 )

Other 183 74

Net cash provided by operating activities 116,020 27,889

Cash flows from investing activities:Acquisition of businesses, net of cash acquired - (38,832 )

Purchase of equipment and improvements (20,481 ) (36,808 )

Acquisition of intangible assets (6,821 ) (8,013 )

Net proceeds from sale of investments - 250

Return of capital on equity method investment 906 -

Collection of deferred cash consideration - 4,882

Collections of notes receivable 429 1,878

Net cash used in investing activities (25,967 ) (76,643 )

Cash flows from financing activities:Proceeds from long-term debt 186,240 583,505

Repayments of long-term debt (322,729 ) (580,795 )

Deferred financing costs paid - (2 )

Contingent consideration paid (1,243 ) (6,276 )

Deferred cash consideration paid (887 ) (915 )

Secondary offering proceeds 115,538 381,619

Purchase of LLC Interests, Class B and Class D (115,538 ) (362,635 )common stock in connection with the secondaryofferingsRepurchases of shares to satisfy minimum tax (1,345 ) (1,819 )withholdingProceeds from issuance of redeemable preferred 149,250 - stockRedeemable preferred stock issuance costs (1,660 ) -

Proceeds from exercise of common stock options 6,145 1,010

Distributions to non-controlling interest holders (4,513 ) (9,772 )

Contribution from non-controlling interest holders 505 -

Net cash provided by financing activities 9,763 3,920

Effect of exchange rate changes on cash and cash 14,634 (1,774 )equivalentsNet increase (decrease) in cash, cash equivalents 114,450 (46,608 )and restricted cashCash, cash equivalents, and restricted cash, 304,089 350,697 beginning of yearCash, cash equivalents, and restricted cash, end $ 418,539 $ 304,089 of year EVO PAYMENTS, INC. AND SUBSIDIARIESSchedule 4 - Reconciliation of GAAP to Non-GAAP measures(in thousands) Three Months Ended December 31, Year Ended December 31,

2020 2019 % 2020 2019 % change change

Revenue $ 116,673 $ 129,380 (10 %) $ 439,101 $ 485,778 (10 %)

Currency impact^ - 656 NM - (8,728 ) NM 1Currency-neutral $ 116,673 $ 130,036 (10 %) $ 439,101 $ 477,050 (8 %)revenue Net income $ 3,862 $ (3,170 ) NM $ (4,166 ) $ (23,366 ) 82 %(loss)Net incomeattributable tonon-controlling (1,545 ) (3,079 ) 50 % (7,189 ) (7,877 ) 9 %interests inconsolidatingentitiesIncome tax 8,423 5,166 63 % 13,122 4,548 189 %expense(benefit)Interest 5,929 9,402 (37 %) 28,988 41,139 (30 %)expense, netDepreciation and 21,808 23,647 (8 %) 85,924 92,059 (7 %)amortizationGain oninvestment in (1,824 ) - NM (17,574 ) - NM equitysecuritiesShare-based 5,273 3,080 71 % 20,664 10,921 89 %compensationTransition,acquisition and 2,763 13,022 (79 %) 26,832 42,825 (37 %)integrationcosts^2Adjusted EBITDA 44,689 48,069 (7 %) 146,601 160,250 (9 %)

Currency impact^ - (318 ) NM - (5,219 ) NM 1Currency-neutral $ 44,689 $ 47,751 (6 %) $ 146,601 $ 155,031 (5 %)adjusted EBITDA 1

Represents the impact of currency shifts by adjusting prior year results to current period average foreign exchange rates for the currenciesin which EVO conducts operations.2

For the three months ended December 31, 2020, earnings adjustments include $2.8 million of transition, acquisition and integration related costs.For the three months ended December 31, 2019, earnings adjustments include $2.4 million of employee termination benefits,$8.0 million of transition, acquisition and integration costs and a $2.6 million impairment charge related to the write-down of a trademark.For the year ended December 30, 2020, earnings adjustments include $5.9 million of employee termination benefits,$17.4 million of transition, acquisition and integration related costs, $2.7 million adjustment for foreign exchange remeasurement losses onintercompany assets and liabilities, and $0.8 million intangible asset impairment of a tradename.For the year ended December 31, 2019, earnings adjustments include $5.1 million of employee termination benefits,$26.1 million of transition, acquisition and integration costs, and $11.6 million of impairment charges net of non-controlling interest.^ Represents the impact of currency shifts by adjusting prior year results to1 current period average foreign exchange rates for the currencies

in which EVO conducts operations.

^ For the three months ended December 31, 2020, earnings adjustments include2 $2.8 million of transition, acquisition and integration related costs.

For the three months ended December 31, 2019, earnings adjustments include $2.4 million of employee termination benefits, $8.0 million of transition, acquisition and integration costs and a $2.6 million impairment charge related to the write-down of a trademark. For the year ended December 30, 2020, earnings adjustments include $5.9 million of employee termination benefits, $17.4 million of transition, acquisition and integration related costs, $2.7 million adjustment for foreign exchange remeasurement losses on intercompany assets and liabilities, and $0.8 million intangible asset impairment of a tradename. For the year ended December 31, 2019, earnings adjustments include $5.1 million of employee termination benefits, $26.1 million of transition, acquisition and integration costs, and $11.6 million of impairment charges net of non-controlling interest. EVO PAYMENTS, INC. AND SUBSIDIARIESSchedule 5 - Segment Information (unaudited)(dollar amount in thousands, transactions in millions) Three months ended December 31,

% of Gain on Adjustments^ 2020 % of Adjustments^ Foreign 2019 Adjusted 2020 Segment investment 1 Adjusted 2019 Segment 2 Exchange Adjusted % change revenue revenue impact^3

TransactionsAmericas 256.4 289.6 (11 %)

Europe 670.2 683.4 (2 %)

Total 926.6 973.0 (5 %)

Segment revenueAmericas $ 73,620 63 % $ - $ - $ 73,620 $ 81,197 63 % $ - $ (1,821 ) $ 79,376 (7 %)

Europe 43,052 37 % - - 43,052 48,183 37 % - 2,477 50,660 (15 %)

Revenue 116,673 100 % - - 116,673 129,380 100 % - 656 130,036 (10 %)

Segment profitAmericas 34,403 - 1,326 35,729 30,969 6,342 (1,226 ) 36,085 (1 %)

Europe 15,385 (1,824 ) 765 14,326 13,462 3,622 908 17,992 (20 %)

Total segment 49,788 (1,824 ) 2,091 50,055 44,431 9,964 (318 ) 54,076 (7 %)profitCorporate (6,038 ) - 672 (5,366 ) (9,384 ) 3,058 - (6,325 ) (15 %)

Total $ 43,751 $ (1,824 ) $ 2,763 $ 44,689 $ 35,047 $ 13,022 $ (318 ) $ 47,751 (6 %)

Segment profit 46.7 % 48.5 % 38.1 % 45.5 %margin - AmericasSegment profit 35.7 % 33.3 % 27.9 % 35.5 %margin - EuropeMargin - Total 37.5 % 38.3 % 27.1 % 36.7 %

1

For the three months ended December 31, 2020, the Americas segment profit adjustments include $1.3 million of transition, acquisition and integration costs.The Europe segment profit adjustments include $0.8 million of transition, acquisition and integration costs.Segment profit also excludes a gain on an investment in equity securities of $1.8 million.Corporate adjustments include $0.7 million of transition, acquisition, and integration related costs.2

For the three months ended December 31, 2019, the Americas segment profit adjustments include $2.4 million of employee terminationbenefits, and $3.9 million of transition, acquisition an integration costs.The Europe adjustments include $1.0 million of transition, acquisition and integration costs and $2.6 million impairment due to the write-down of a tradename.The Corporate adjustments include $3.1 million of transition, acquisition and integration costs.3

Represents the impact of currency shifts by adjusting prior year results to current period average fx rates for the currenciesin which EVO conducts operations.Segment profit and Corporate exclude share-based compensation and therefore is not included in the Adjustments totals.Segment profit margin is defined as segment profit divided by segment revenue. Total margin includes Corporate expenses.^ For the three months ended December 31, 2020, the Americas segment profit1 adjustments include $1.3 million of transition, acquisition and integration costs. The Europe segment profit adjustments include $0.8 million of transition, acquisition and integration costs. Segment profit also excludes a gain on an investment in equity securities of $1.8 million. Corporate adjustments include $0.7 million of transition, acquisition, and integration related costs.^ For the three months ended December 31, 2019, the Americas segment profit2 adjustments include $2.4 million of employee termination

benefits, and $3.9 million of transition, acquisition an integration costs.

The Europe adjustments include $1.0 million of transition, acquisition and integration costs and $2.6 million impairment due to the write-down of a tradename. The Corporate adjustments include $3.1 million of transition, acquisition and integration costs.^ Represents the impact of currency shifts by adjusting prior year results to3 current period average fx rates for the currencies

in which EVO conducts operations.

Segment profit and Corporate exclude share-based compensation and therefore is not included in the Adjustments totals. Segment profit margin is defined as segment profit divided by segment revenue. Total margin includes Corporate expenses.Year Ended December 31,

2020

% of Segment revenue

Gain on investment

Adjustments1

2020 Adjusted

2019

% of Segment revenue

Adjustments2

Foreign Exchange impact3

2019 Adjusted

Adjusted % change

TransactionsAmericas973.8

1,073.7

(9

%)

Europe2,588.5

2,543.9

2

%

Total3,562.2

3,617.6

(2

%)

Segment revenueAmericas$

275,233

63

%

$

-

$

-

$

275,233

$

303,840

63

%

$

-

$

(9,662

)

$

294,178

(6

%)

Europe163,868

37

%

-

-

163,868

181,938

37

%

-

934

182,872

(10

%)

Revenue439,101

100

%

-

-

439,101

485,778

100

%

-

(8,728

)

477,050

(8

%)

Segment profitAmericas106,051

-

13,023

119,074

96,587

21,824

(5,519

)

112,892

5

%

Europe65,448

(17,574

)

8,931

56,805

55,319

10,933

299

66,551

(15

%)

Total segment profit171,499

(17,574

)

21,954

175,879

151,906

32,757

(5,219

)

179,444

(2

%)

Corporate(34,157

)

-

4,878

(29,278

)

(34,481

)

10,068

-

(24,413

)

20

%

Total$

137,342

$

(17,574

)

$

26,832

$

146,601

$

117,425

$

42,825

$

(5,219

)

$

155,031

(5

%)

Segment profit margin - Americas38.5

%

43.3

%

31.8

%

38.4

%

Segment profit margin - Europe39.9

%

34.7

%

30.4

%

36.4

%

Margin - Total31.3

%

33.4

%

24.2

%

32.5

%

Year Ended December 31,

% of Gain on Adjustments^ 2020 % of Adjustments^ Foreign 2019 Adjusted 2020 Segment investment 1 Adjusted 2019 Segment 2 Exchange Adjusted % change revenue revenue impact^3

TransactionsAmericas 973.8 1,073.7 (9 %)

Europe 2,588.5 2,543.9 2 %

Total 3,562.2 3,617.6 (2 %)

Segment revenueAmericas $ 275,233 63 % $ - $ - $ 275,233 $ 303,840 63 % $ - $ (9,662 ) $ 294,178 (6 %)

Europe 163,868 37 % - - 163,868 181,938 37 % - 934 182,872 (10 %)

Revenue 439,101 100 % - - 439,101 485,778 100 % - (8,728 ) 477,050 (8 %)

Segment profitAmericas 106,051 - 13,023 119,074 96,587 21,824 (5,519 ) 112,892 5 %

Europe 65,448 (17,574 ) 8,931 56,805 55,319 10,933 299 66,551 (15 %)

Total segment 171,499 (17,574 ) 21,954 175,879 151,906 32,757 (5,219 ) 179,444 (2 %)profitCorporate (34,157 ) - 4,878 (29,278 ) (34,481 ) 10,068 - (24,413 ) 20 %

Total $ 137,342 $ (17,574 ) $ 26,832 $ 146,601 $ 117,425 $ 42,825 $ (5,219 ) $ 155,031 (5 %)

Segment profit 38.5 % 43.3 % 31.8 % 38.4 %margin - AmericasSegment profit 39.9 % 34.7 % 30.4 % 36.4 %margin - EuropeMargin - Total 31.3 % 33.4 % 24.2 % 32.5 %

1

For the year ended December 31, 2020, the Americas segment profit adjustments include $3.8 million of employee termination benefits,$6.7 million of transition, acquisition and integration costs, $1.7 million adjustment for foreign exchange remeasurement losses on intercompany assets and liabilities,and $0.8 million intangible asset impairment of a tradename.The Europe segment profit adjustments include $1.5 million of employee termination benefits, $6.4 million of transition, acquisition and integration costs,and $1.0 million adjustment for foreign exchange remeasurement losses on intercompany assets and liabilities. Segment profit also excludes a gain on an investmentin equity securities of $17.6 million.Corporate adjustments includes $0.6 million of employee termination benefits, and $4.3 million of transition, acquisition, and integration related costs.2

For the year ended December 31, 2019, the Americas segment profit adjustments include $4.8 million of employee terminationbenefits, $11.0 million of transition, acquisition an integration costs and a $6.0 million impairment of intangible assets.The Europe adjustments include $0.1 million in employee termination benefits, $5.2 million of transition, acquisition and integration costs, and$5.6 million impairment of intangible assets, net of non-controlling interest,The Corporate adjustments include $0.2 million in employee termination benefits and $9.9 million of transition, acquisition and integration costs.3

Represents the impact of currency shifts by adjusting prior year results to current period average foreign exchange rates for the currenciesin which EVO conducts operations.Segment profit and Corporate exclude share-based compensation and therefore is not included in the Adjustments totals.Segment profit margin is defined as segment profit divided by segment revenue. Total margin includes Corporate expenses.^ For the year ended December 31, 2020, the Americas segment profit adjustments1 include $3.8 million of employee termination benefits,

$6.7 million of transition, acquisition and integration costs, $1.7 million adjustment for foreign exchange remeasurement losses on intercompany assets and liabilities, and $0.8 million intangible asset impairment of a tradename.

The Europe segment profit adjustments include $1.5 million of employee termination benefits, $6.4 million of transition, acquisition and integration costs, and $1.0 million adjustment for foreign exchange remeasurement losses on intercompany assets and liabilities. Segment profit also excludes a gain on an investment in equity securities of $17.6 million.

Corporate adjustments includes $0.6 million of employee termination benefits, and $4.3 million of transition, acquisition, and integration related costs.^ For the year ended December 31, 2019, the Americas segment profit adjustments2 include $4.8 million of employee termination

benefits, $11.0 million of transition, acquisition an integration costs and a $6.0 million impairment of intangible assets. The Europe adjustments include $0.1 million in employee termination benefits, $5.2 million of transition, acquisition and integration costs, and $5.6 million impairment of intangible assets, net of non-controlling interest, The Corporate adjustments include $0.2 million in employee termination benefits and $9.9 million of transition, acquisition and integration costs.^ Represents the impact of currency shifts by adjusting prior year results to3 current period average foreign exchange rates for the currencies

in which EVO conducts operations.

Segment profit and Corporate exclude share-based compensation and therefore is not included in the Adjustments totals. Segment profit margin is defined as segment profit divided by segment revenue. Total margin includes Corporate expenses. EVO PAYMENTS, INC. AND SUBSIDIARIESSchedule 6 - Adjusted Net Income (unaudited)(in thousands, except share and per share data) Three Months Ended December 31, Year Ended December 31,

2020 2019 % 2020 2019 % change change

Net income $ 3,862 $ (3,170 ) NM $ (4,166 ) $ (23,366 ) 82 %(loss)Net incomeattributable tonon-controlling (1,545 ) (3,079 ) 50 % (7,189 ) (7,877 ) 9 %interests inconsolidatingentitiesIncome tax 8,423 5,166 63 % 13,122 4,548 189 %expenseGain oninvestment in (1,824 ) - NM (17,574 ) - NM equitysecuritiesShare-based 5,273 3,080 71 % 20,664 10,921 89 %compensationTransition,acquisition and 2,763 13,022 (79 %) 26,832 42,825 (37 %)integrationcosts^1Acquisition 10,303 11,727 (12 %) 42,424 46,813 (9 %)intangibleamortization^2Non-GAAP 27,255 26,747 2 % 74,112 73,864 0 %adjusted incomebefore taxesIncome taxes at (6,160 ) (6,178 ) 0 % (16,749 ) (17,063 ) 2 %normalized taxrate^3Adjusted net $ 21,095 $ 20,568 3 % $ 57,363 $ 56,801 1 %incomeAdjusted net $ 0.23 $ 0.25 (8 %) $ 0.64 $ 0.69 (7 %)income pershare^41

For the three months ended December 31, 2020, earnings adjustments include $2.8 million of transition, acquisition and integration related costs.For the three months ended December 31, 2019, earnings adjustments include $2.4 million of employee termination benefits,$8.0 million of transition, acquisition and integration related costs, and a $2.6 million impairment charge related to the write-down of a trademark.For the year ended December 31, 2020, earnings adjustments include $5.9 million of employee termination benefits,$17.4 million of transition, acquisition and integration related costs, $2.7 million adjustment for fx remeasurement losses onintercompany assets and liabilities, and $0.8 million intangible asset impairment of a tradename.For the year ended December 31, 2019, earnings adjustments include $5.1 million of employee termination benefits,$26.1 million of transition, acquisition and integration related costs, and an impairment charge of $11.6 million, net of non-controlling interest.2

Represents amortization of intangible assets acquired through business combinations and other merchant portfolio andrelated asset acquisitions.3

Normalized corporate income tax expense calculated using 22.6% and 23.1% for 2020 and 2019, respectively,based on blended federal and state tax rates and utilizing the Tax Reform Act for 2018 federal rates.4

Reflects pro forma weighted average shares for the period using GAAP weighted average common shares (equal to weighted average Class A common shares) plus weighted average Class B common shares, weighted average Class C common shares, weighted average Class D common shares, weighted average preferred shares including paid-in-kind dividends, and dilutive equity awards measured under the treasury stock method.^ For the three months ended December 31, 2020, earnings adjustments include1 $2.8 million of transition, acquisition and integration related costs.

For the three months ended December 31, 2019, earnings adjustments include $2.4 million of employee termination benefits, $8.0 million of transition, acquisition and integration related costs, and a $2.6 million impairment charge related to the write-down of a trademark. For the year ended December 31, 2020, earnings adjustments include $5.9 million of employee termination benefits, $17.4 million of transition, acquisition and integration related costs, $2.7 million adjustment for fx remeasurement losses on intercompany assets and liabilities, and $0.8 million intangible asset impairment of a tradename. For the year ended December 31, 2019, earnings adjustments include $5.1 million of employee termination benefits, $26.1 million of transition, acquisition and integration related costs, and an impairment charge of $11.6 million, net of non-controlling interest.^ Represents amortization of intangible assets acquired through business2 combinations and other merchant portfolio and

related asset acquisitions.

^ Normalized corporate income tax expense calculated using 22.6% and 23.1% for3 2020 and 2019, respectively,

based on blended federal and state tax rates and utilizing the Tax Reform Act for 2018 federal rates. Reflects pro forma weighted average shares for the period using GAAP weighted^ average common shares (equal to weighted average Class A common shares) plus4 weighted average Class B common shares, weighted average Class C common shares, weighted average Class D common shares, weighted average preferred shares including paid-in-kind dividends, and dilutive equity awards measured under the treasury stock method.Three Months Ended Dec. 31,

Year Ended Dec. 31,

(share count in millions)2020

2019

2020

2019

Class A (GAAP weighted average common stock)43.6

37.8

42.0

32.7

Class B33.5

34.5

34.0

35.2

Class C1.8

2.3

2.1

2.4

Class D3.8

7.4

4.2

11.4

Stock options, RSUs, RSAs1.0

0.8

0.8

0.8

Preferred shares (if converted)10.0

-

6.9

-

Pro forma weighted average shares93.6

82.9

90.0

82.6

Three Months Ended Year Ended Dec. Dec. 31, 31,

(share count in millions) 2020 2019 2020 2019

Class A (GAAP weighted average 43.6 37.8 42.0 32.7common stock)Class B 33.5 34.5 34.0 35.2

Class C 1.8 2.3 2.1 2.4

Class D 3.8 7.4 4.2 11.4

Stock options, RSUs, RSAs 1.0 0.8 0.8 0.8

Preferred shares (if converted) 10.0 - 6.9 -

Pro forma weighted average shares 93.6 82.9 90.0 82.6

EVO PAYMENTS, INC. AND SUBSIDIARIESSchedule 7 - Net Debt to Adjusted EBITDA Ratio (in thousands) Year Ended

12/31/2020Net loss $ (4,166 )

Net income attributable to non-controlling interests in (7,189 )consolidating entitiesIncome tax expense 13,122

Interest expense, net 28,988

Depreciation and amortization 85,924

Gain on investment in equity securities (17,574 )

Share-based compensation 20,664

Transition, acquisition and integration costs 26,832

Adjusted EBITDA $ 146,601

Ratio of Net Debt to LTM Adjusted EBITDA 12/31/2020Gross debt $ 591,169

Less: available cash^1 (172,090 )

Net debt $ 419,079

Leverage Ratio 2.9x ___________________________^1 Available cash includes cash in transit from December 31 transaction date. EVO PAYMENTS, INC. ANDSUBSIDIARIESSchedule 8 - 2021 Outlook(unaudited) (in millions) 2021 Outlook 2020 % Change Actual

Revenue $483 to $491 $439 10% - 12%

GAAP Net income / (loss) $16 to $24 ($4)

Adjustments^1 154 to 152 151

Adjusted EBITDA $170 to $176 $147 16% - 20%

Adjusted EBITDA margin 35.4% to 33.4% 200 bps to 250 35.9% bps1

Represents an estimated range of adjustments to reconcile GAAP net income (loss) to adjusted EBITDA, a non-GAAP measure.These adjustments include a) net income attributable to non-controlling interests in consolidating entities, b) income tax expense,c) net interest expense, d) depreciation and amortization, e) gain / (loss) on investment in equity securities, f) share-based compensation,and g) costs related to transition, acquisition or integration activities. Differences may exist due to rounding.Estimates of these adjustments used in the forward-looking measure are subject to variability, complexity andlimited visibility of these items. View source version on businesswire.com: https://www.businesswire.com/news/home/20210225005041/en/

CONTACT: Sarah Jane Perry Investor Relations & Corporate Communications Manager 770-709-7365 investor.relations@evopayments.com