Business Wire | Aug 5, 2020 07:00AM EDT

EVO Reports Second Quarter 2020 Results

Aug. 05, 2020

ATLANTA--(BUSINESS WIRE)--Aug. 05, 2020--EVO Payments, Inc. (NASDAQ: EVOP) ("EVO" or the "Company") today announced its second quarter 2020 financial results. For the second quarter ended June 30, 2020, reported revenue was $94.3 million compared to $122.5 million in the prior year, a decrease of 23%. On a currency neutral basis, reported revenue for the second quarter decreased 19%. On a GAAP basis for the quarter ended June 30, 2020, net loss was $9.0 million compared to net income of $3.8 million in the prior year. Adjusted EBITDA decreased 23% to $30.1 million for the quarter, and on a currency neutral basis, adjusted EBITDA declined 17% compared to the prior year.

For the six months ended June 30, 2020, reported revenue was $205.5 million compared to $234.0 million in the prior year, a decrease of 12%. On a currency neutral basis, reported revenue for the six months ended June 30, 2020 decreased 9%. On a GAAP basis for the six months ended June 30, 2020, the Company recognized a net loss of $22.6 million, an increase of 49% compared to the prior year. Adjusted EBITDA decreased 12% to $61.5 million for the six months ended June 30, 2020. On a currency neutral basis, adjusted EBITDA declined 7% compared to the prior year.

"I am very pleased with the financial results we delivered in the second quarter given the adverse macroeconomic factors we were facing during this period," said James G. Kelly, Chief Executive Officer of EVO. "We are encouraged by the recovery we are seeing in our monthly payment volumes and by the Company's execution during this difficult period. We will continue to balance our prudent expense management with our investments in capabilities and distribution to grow the Company as global economic activity resumes."

Conference Call

EVO's management will host a conference call for investors at 8:00 a.m. Eastern Time on Wednesday, August 5, 2020 to discuss the results. Participants may access the conference call via the investor relations section of the Company's website at www.evopayments.com, or participants may also dial (833) 922-2049 inside the U.S. and Canada and (270) 240-0784 outside the U.S. and Canada to listen. The conference ID number is 2385968. 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/2Q20paymentvolume.

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 and Section 21E of the Securities Exchange Act of 1934. 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 impact of the COVID-19 crisis 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 virus; (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 our eService subsidiary in Poland; (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) changes to, or the potential phasing 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 establish and 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 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 - Condensed Consolidated Statements of Operations (unaudited) (in thousands,except share andper share data) Three Months Ended June 30, Six Months Ended June 30,

2020 2019 % 2020 2019 % change change

Revenue $ 94,283 $ 122,517 (23%) $ 205,452 $ 234,035 (12%)

Operating expenses: Cost of 19,212 24,752 (22%) 42,341 48,835 (13%) services and products Selling, 54,608 66,306 (18%) 126,911 132,728 (4%) general and administrative Depreciation 20,525 22,863 (10%) 41,949 45,608 (8%) and amortization Impairment of 782 - NM 782 6,632 (88%) intangible assets Total operating 95,127 113,921 (16%) 211,983 233,803 (9%) expenses (Loss) income (844) 8,596 NM (6,531) 232 NM from operations Other (expense) income: Interest income 218 735 (70%) 631 1,410 (55%)

Interest (7,332) (11,269) (35%) (17,199) (22,921) (25%) expense Income from investment in 175 53 232% 215 269 (20%) unconsolidated investees Other (expense) (1,756) 516 NM (1,805) 1,610 NM income, net Total other (8,695) (9,965) (13%) (18,158) (19,632) (8%) expense Loss before (9,539) (1,369) 597% (24,689) (19,400) 27% income taxes Income tax 496 5,196 (90%) 2,076 4,208 (51%) benefit Net (loss) (9,043) 3,827 NM (22,613) (15,192) 49% income Less: Net income attributable to 1,049 1,996 (47%) 2,088 2,578 (19%) non-controlling interests in consolidated entities Less: Net (loss) income attributable to (6,321) 1,368 (562%) (16,122) (12,944) 25% non-controlling interests of EVO Investco, LLC Net (loss) income (3,771) $ 463 NM (8,579) $ (4,827) 78% attributable to EVO Payments, Inc. Less: Accrual of redeemable 1,771 1,771 preferred stock paid-in-kind dividends Net loss attributable to $ (5,542) $ (10,350) Class A common stock Earnings per share Basic ($ 0.13) $ 0.01 ($ 0.25) ($ 0.17)

Diluted ($ 0.13) $ 0.01 ($ 0.25) ($ 0.17)

Weighted average Class A common stock outstanding Basic 41,398,838 31,898,531 41,329,118 29,147,326

Diluted 41,398,838 31,898,531 41,329,118 29,147,326

EVO PAYMENTS, INC. AND SUBSIDIARIESSchedule 2 - Condensed Consolidated Balance Sheets(unaudited) (in thousands, except share data) June 30, December 31,

2020 2019

Assets Current assets: Cash and cash equivalents $ 390,745 $ 304,089

Accounts receivable, net 13,731 15,881

Other receivables 15,078 24,438

Due from related parties 539 1,125

Inventory 8,157 9,128

Settlement processing assets 295,604 328,637

Other current assets 13,019 12,867

Total current assets 736,873 696,165

Equipment and improvements, net 75,823 94,464

Goodwill, net 366,942 378,838

Intangible assets, net 218,515 257,560

Investment in unconsolidated investees 2,144 2,078

Deferred tax assets 218,573 210,275

Operating lease right-of-use assets 35,834 45,664

Other assets 21,574 21,360

Total assets $ 1,676,278 $ 1,706,404

Liabilities and Shareholders' Equity (Deficit) Current liabilities: Settlement lines of credit $ 19,866 $ 33,103

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

Accounts payable 7,449 13,584

Accrued expenses 89,550 110,079

Settlement processing obligations 438,969 449,302

Current portion of operating lease liabilities, 6,945 7,087 inclusive of related party liability of $1.2 million at June 30, 2020 and December 31, 2019 Due to related parties 4,772 7,325

Total current liabilities 572,179 629,224

Long-term debt, net of current portion 631,166 693,169

Due to related parties 385 385

Deferred tax liabilities 13,963 17,260

Tax receivable agreement obligations, inclusive of related party liability of $141.3 million and 150,398 150,274 $141.1 million at June 30, 2020 and December 31, 2019, respectively ISO reserves 2,706 2,758

Operating lease liabilities, net of current portion, inclusive of related party liability of 31,504 41,703 $2.6 million and $3.2 million at June 30, 2020 and December 31, 2019, respectively Other long-term liabilities 2,099 1,830

Total liabilities 1,404,400 1,536,603

Commitments and contingencies Redeemable non-controlling interests 889,952 1,052,448

Redeemable preferred stock (par value, $0.0001 per share), Authorized, Issued and Outstanding - 152,250 and 0 shares at June 30, 2020 and December 149,361 - 31, 2019, respectively. Liquidation preference: $154,001 and $0 at June 30, 2020 and December 31, 2019, respectively Shareholders' equity (deficit): Class A common stock (par value $0.0001), Authorized - 200,000,000 shares, Issued and 4 4 Outstanding - 41,474,273 and 41,233,954 shares at June 30, 2020 and December 31, 2019, respectively Class B common stock (par value $0.0001), Authorized - 40,000,000 shares, Issued and 3 3 Outstanding - 34,163,538 and 34,163,538 shares at June 30, 2020 and December 31, 2019 Class C common stock (par value $0.0001), Authorized - 4,000,000 shares, Issued and - - Outstanding - 2,317,955 and 2,321,955 shares at June 30, 2020 and December 31, 2019, respectively Class D common stock (par value $0.0001), Authorized - 32,000,000 shares, Issued and - - Outstanding - 4,339,978 and 4,354,978 shares at June 30, 2020 and December 31, 2019, respectively Additional paid-in capital - -

Accumulated deficit attributable to Class A common (471,843) (587,358) stock Accumulated other comprehensive loss (16,093) (1,948)

Total EVO Payments, Inc. shareholders' deficit (487,929) (589,299)

Nonredeemable non-controlling interests (279,506) (293,348)

Total deficit (767,435) (882,647)

Total liabilities, redeemable non-controlling interests, redeemable preferred stock, and $ 1,676,278 $ 1,706,404 shareholders' deficit

EVO PAYMENTS, INC. AND SUBSIDIARIESSchedule 3 - Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands) Six Months Ended June 30, 2020 2019

Cash flows from operating activities:Net loss $ (22,613) $ (15,192)

Adjustments to reconcile net loss to net cashprovided by (used in) operating activities:Depreciation and amortization 41,949 45,608

Gain on sale of investment - (250)

Amortization of deferred financing costs 1,337 1,343

Change in fair value of contingent consideration (97) 1,953

Loss on disposal of equipment and improvements 1,052 -

Share-based compensation expense 9,475 4,822

Impairment of intangible assets 782 6,632

Accrued interest expense (4,133) 230

Deferred taxes, net (3,411) (8,967)

Other (325) (266)

Changes in operating assets and liabilities, net ofeffect of acquisitions:Accounts receivable, net 1,581 391

Other receivables 7,236 (1,489)

Inventory 569 175

Other current assets (512) (788)

Operating lease right-of-use assets 3,889 3,161

Other assets (482) (446)

Related parties, net (1,931) 1,707

Accounts payable (5,828) (1,135)

Accrued expenses (13,370) (11,387)

Settlement processing funds, net 26,198 (84,946)

Operating lease liabilities (3,849) (3,244)

Other (52) -

Net cash provided by (used in) operating activities 37,465 (62,088)

Cash flows from investing activities:Acquisition of businesses, net of cash acquired - (3,030)

Purchase of equipment and improvements (8,674) (13,303)

Acquisition of intangible assets (2,921) (4,452)

Net proceeds from sale of investments - 250

Collection of deferred cash consideration - 4,406

Collections of notes receivable 24 1,419

Net cash used in investing activities (11,571) (14,710)

Cash flows from financing activities:Proceeds from long-term debt 185,928 212,647

Repayments of long-term debt (262,107) (238,382)

Deferred financing costs paid - (2)

Contingent consideration paid (1,006) (5,578)

Deferred cash consideration paid (545) -

Secondary offering proceeds - 18,984

Repurchases of shares to satisfy minimum tax (1,195) (1,638)withholdingProceeds from issuance of redeemable preferred stock 149,250 -

Redeemable preferred stock issuance costs (1,660) -

Proceeds from exercise of common stock options 566 291

Distribution to non-controlling interests holders (74) (6,440)

Net cash provided by (used in) financing activities 69,157 (20,118)

Effect of exchange rate changes on cash and cash (8,395) (1,409)equivalentsNet increase (decrease) in cash and cash equivalents 86,656 (98,325)

Cash and cash equivalents, beginning of period 304,089 350,697

Cash and cash equivalents, end of period $ 390,745 $ 252,372

The presentation of cash flows from operating activities for the six monthsended June 30, 2019 was revised from the amounts previously reported to conformwith the presentation required by the retroactive adoption of ASC 842 as ofJanuary 1, 2019.

EVO PAYMENTS, INC. AND SUBSIDIARIESSchedule 4 - Reconciliation of GAAP to Non-GAAP measures (in thousands) Three Months Ended June 30, Six Months Ended June 30,

2020 2019 % 2020 2019 % change change

Revenue $ 94,283 $ 122,517 (23%) $ 205,452 $ 234,035 (12%)

Currency impact^ - (6,366) NM - (8,345) NM1Currency-neutral $ 94,283 $ 116,150 (19%) $ 205,452 $ 225,690 (9%)revenue Net (loss) $ (9,043) $ 3,827 NM $ (22,613) $ (15,192) 49%incomeNet incomeattributable tonon-controlling (1,049) (1,996) (47%) (2,088) (2,578) (19%)interests inconsolidatingentitiesIncome tax (496) (5,196) (90%) (2,076) (4,208) (51%)benefit(expense)Interest 7,114 10,534 (32%) 16,568 21,511 (23%)expense, netDepreciation and 20,525 22,863 (10%) 41,949 45,608 (8%)amortizationShare-based 5,890 2,977 98% 9,475 4,822 97%compensationTransition,acquisition and 7,151 6,306 13% 20,334 19,982 2%integrationcosts^2Adjusted EBITDA 30,092 39,314 (23%) 61,549 69,944 (12%)

Currency impact^ - (3,191) NM - (4,053) NM1Currency-neutral $ 30,092 $ 36,123 (17%) $ 61,549 $ 65,891 (7%)adjusted EBITDA ^1 Represents the impact of currency shifts by adjusting prior year results tocurrent period average fx rates for the currenciesin which EVO conducts operations.^2 For the three months ended June 30, 2020, earnings adjustments include $2.4million of employee termination benefits,$4.0 million of transition, acquisition and integration related costs, and $0.8million intangible asset impairment of a tradename.For the three months ended June 30, 2019, earnings adjustments include $0.7million of employee termination benefits,and $5.6 million of transition, acquisition and integration costs.For the six months ended June 30, 2020, earnings adjustments include $5.1million of employee termination benefits,$11.7 million of transition, acquisition and integration related costs, $2.7million adjustment for fx remeasurement losses onintercompany assets and liabilities, and a $0.8 million intangible assetimpairment of a tradename.For the six months ended June 30, 2019, earnings adjustments include $2.1million of employee termination benefits,$5.1 million impairment of intangible assets, net of non-controlling interest,and $12.8 million of transition, acquisition and integration costs.

EVO PAYMENTS, INC. AND SUBSIDIARIESSchedule 5 - Segment Information (unaudited) (dollaramount inthousands,transactionsin millions) Three months ended June 30,

% of Adjustments^ 2020 % of Adjustments^ Fx impact 2019 Adjusted 2020 Segment 1 Adjusted 2019 Segment 2 ^3 Adjusted % change revenue revenue

Transactions Americas 209.0 270.8 (23%)

Europe 552.8 635.2 (13%)

Total 761.7 906.0 (16%)

Segment revenue Americas $ 61,952 66% $ - $ 61,952 $ 77,656 63% $ - $ (4,356) $ 73,300 (15%)

Europe 32,331 34% - 32,331 44,861 37% - (2,011) 42,850 (25%)

Total 94,283 100% - 94,283 122,517 100% - (6,367) 116,150 (19%)

Segment profit Americas 22,820 4,916 27,736 27,650 2,292 (2,376) 27,566 1%

Europe 6,794 1,540 8,334 13,623 1,466 (815) 14,274 (42%)

Corporate (6,673) 695 (5,978) (8,264) 2,548 - (5,717) 5%

Total $ 22,941 $ 7,151 $ 30,092 $ 33,009 $ 6,306 $ (3,191) $ 36,123 (17%)

Segment profit 36.8% 44.8% 35.6% 37.6% margin - Americas Segment profit 21.0% 25.8% 30.4% 33.3% margin - Europe Segment profit 24.3% 31.9% 26.9% 31.1% margin - Total ^1 For the three months ended June 30, 2020, the Americas segment profitadjustments include $1.7 million of employeetermination benefits, $2.4 million of transition, acquisition and integrationcosts, and $0.8 million intangible asset impairment of a tradename.The Europe segment profit adjustments include $0.1 million of employeetermination benefits and $1.4 million of transition, acquisition andintegration costs,Corporate adjustments includes $0.6 million of employee termination benefits,and $0.1 million of transition, acquisition, and integration related costs.The Corporate segment includes a $1.3 million merchant loss reserve for thequarter.^2 For the three months ended June 30, 2019, the Americas segment profitadjustments include $0.5 million of employee terminationbenefits, and $1.8 million of transition, acquisition an integration costs.The Europe adjustments include $0.1 million in employee termination benefitsand $1.4 million of transition, acquisition and integration costs.The Corporate segment profit adjustments include $0.1 million in employeetermination benefits and $2.4 million of transition, acquisition andintegration costs.^3 Represents the impact of currency shifts by adjusting prior year results tocurrent period average fx rates for the currenciesin which EVO conducts operations.Segment profit excludes share-based compensation and therefore is not includedin the Adjustments totals.Segment profit margin is defined as segment profit divided by segment revenue. Six Months Ended June 30,

% of Adjustments^ 2020 % of Adjustments^ Fx impact 2019 Adjusted 2020 Segment 1 Adjusted 2019 Segment 2 ^3 Adjusted % change revenue revenue

Transactions Americas 475.4 505.0 (6%)

Europe 1,170.7 1,193.2 (2%)

Total 1,646.1 1,698.2 (3%)

Segment revenue Americas $ 132,824 65% $ - $ 132,824 $ 147,621 63% $ - $ (5,051) $ 142,570 (7%)

Europe 72,628 35% - 72,628 86,414 37% - (3,294) 83,120 (13%)

Total 205,452 100% - 205,452 234,035 100% - (8,345) 225,690 (9%)

Segment profit Americas 42,780 9,858 52,638 42,530 10,110 (2,750) 49,890 6%

Europe 15,617 6,696 22,313 23,316 5,787 (1,303) 27,799 (20%)

Corporate (17,182) 3,780 (13,402) (15,883) 4,085 - (11,798) 14%

Total $ 41,215 $ 20,334 $ 61,549 $ 49,963 $ 19,982 $ (4,053) $ 65,891 (7%)

Segment profit 32.2% 39.6% 28.8% 35.0% margin - Americas Segment profit 21.5% 30.7% 27.0% 33.4% margin - Europe Segment profit 20.1% 30.0% 21.3% 29.2% margin - Total ^1 For the six months ended June 30, 2020, the Americas segment profitadjustments include $3.1 million of employee termination benefits,$4.3 million of transition, acquisition and integration costs, $1.7 millionadjustment for fx remeasurement losses on intercompany assets and liabilities,and $0.8 million intangible asset impairment of a tradename.The Europe segment profit adjustments include $1.3 million of employeetermination benefits, $4.4 million of transition, acquisition and integrationcosts,and $1.0 million adjustment for fx remeasurement losses on intercompany assetsand liabilities.Corporate adjustments includes $0.6 million of employee termination benefits,and $3.2 million of transition, acquisition, and integration related costs.The Corporate segment includes a $1.3 million merchant loss reserve recorded inthe second quarter.^2 For the six months ended June 30, 2019, the Americas segment profitadjustments include $1.9 million of employee terminationbenefits, $6.1 million of transition, acquisition an integration costs and a$2.1 million impairment of intangible assets.The Europe adjustments include $0.1 million in employee termination benefits,$2.7 million of transition, acquisition and integration costs, and$3.0 million impairment of intangible assets, net of non-controlling interest,The Corporate segment profit adjustments include $0.2 million in employeetermination benefits and $3.9 million of transition, acquisition andintegration costs.^3 Represents the impact of currency shifts by adjusting prior year results tocurrent period average fx rates for the currenciesin which EVO conducts operations.Segment profit excludes share-based compensation and therefore is not includedin the Adjustments totals.Segment profit margin is defined as segment profit divided by segment revenue.

EVO PAYMENTS, INC. AND SUBSIDIARIESSchedule 6 - Adjusted Net Income (unaudited) (in thousands,except shareand per sharedata) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 % 2020 2019 % change change

Net (loss) $ (9,043) $ 3,827 NM $ (22,613) $ (15,192) 49%incomeNet incomeattributable tonon-controlling (1,049) (1,996) (47%) (2,088) (2,578) (19%)interests inconsolidatingentitiesIncome tax (496) (5,196) (90%) (2,076) (4,208) (51%)benefit(expense)Share-based 5,890 2,977 98% 9,475 4,822 97%compensationTransition,acquisition and 7,151 6,306 13% 20,334 19,982 2%integrationcosts^1Acquisition 10,065 11,475 (12%) 20,712 22,960 (10%)intangibleamortization^2Non-GAAP 12,517 17,392 (28%) 23,743 25,785 (8%)adjusted incomebefore taxesIncome taxes at (2,829) (4,018) (30%) (5,366) (5,956) (10%)normalized taxrate^3Adjusted net $ 9,688 $ 13,375 (28%) $ 18,377 $ 19,829 (7%)incomeAdjusted net $ 0.11 $ 0.16 (31%) $ 0.21 $ 0.24 (13%)income pershare^4 ^1 For the three months ended June 30, 2020, earnings adjustments include $2.4million of employee termination benefits,$4.0 million of transition, acquisition and integration related costs, and $0.8million intangible asset impairment of a tradename.For the three months ended June 30, 2019, earnings adjustments include $0.7million of employee termination benefits,and $5.6 million of transition, acquisition and integration related costs.For the six months ended June 30, 2020, earnings adjustments include $5.1million of employee termination benefits,$11.7 million of transition, acquisition and integration related costs, $2.7million adjustment for fx remeasurement losses onintercompany assets and liabilities, and a $0.8 million intangible assetimpairment of a tradename.For the six months ended June 30, 2019, earnings adjustments include $2.1million of employee termination benefits,$5.1 million impairment of intangible assets, net of non-controlling interest,and $12.8 million of transition, acquisition and integration related costs.^2 Represents amortization of intangible assets acquired through businesscombinations and other merchant portfolio andrelated asset acquisitions.^3 Normalized corporate income tax expense calculated using 22.6% and 23.1% for2020 and 2019, respectively,based on blended federal and state tax rates and utilizing the Tax Reform Actfor 2018 federal rates.^4 Reflects pro forma weighted average shares for the period using GAAPweighted average common shares (equal toweighted average Class A common shares) plus weighted average Class B commonshares, weighted average Class C commonshares, weighted average Class D common shares, weighted average preferredshares including paid-in-kind dividends, anddilutive equity awards measured under the treasury stock method.

Three Months Ended Six Months Ended June 30, June 30,(share count in millions) 2020 2019 2020 2019

Class A (GAAP weighted average 41.4 31.9 41.3 29.1 common stock) Class B 34.2 35.5 34.2 35.7

Class C 2.3 2.4 2.3 2.4

Class D 4.3 12.1 4.3 14.3

Stock options, RSUs, RSAs 0.4 0.9 0.5 0.7

Preferred shares 7.7 - 3.8 -

Pro forma weighted average shares 90.3 82.8 86.5 82.3

EVO PAYMENTS, INC. ANDSUBSIDIARIESSchedule 7 - Net Debt toAdjusted EBITDA Ratio (in thousands) Year Ended 6 Months 6 Months LTM^1 12/31/2019 6/30/2019 6/30/2020 6/30/2020Net loss $ (23,366) $ (15,192) $ (22,613) $ (30,787)

Net income attributable to (7,877) (2,578) (2,088) (7,387)non-controlling interestsin consolidating entitiesIncome tax expense 4,548 (4,208) (2,076) 6,680(benefit)Interest expense, net 41,139 21,511 16,568 36,197

Depreciation and 92,059 45,608 41,949 88,401amortizationShare-based compensation 10,921 4,822 9,475 15,574

Transition, acquisition and 42,825 19,982 20,334 43,177integration costsAdjusted EBITDA $ 160,250 $ 69,944 $ 61,549 $ 151,855

Ratio of Net Debt to LTMAdjusted EBITDA 6/30/2020Gross debt $ 644,466

Less: available cash on 6/ (166,643)30/2020^2Net debt $ 477,823

Leverage Ratio as of 6/30/ 3.1x2020 ^1 Reflects last twelve months Adjusted EBITDA by taking full year 2019, lesssix-months ended June 30, 2019, plusthe six-months ended June 30, 2020. Amounts may differ due to rounding.^2 Available cash includes cash in transit from June 30th transaction dates.

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