Nuvei Announces Third Quarter 2023 Results

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November 8, 2023

Nuvei Announces Third Quarter 2023 Results

Nuvei's Q3 2023 results announced

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(In U.S. dollars)	Three months ending March 31, 2021	Year ending December 31, 2021
	$	$
Total Volume (in billions)	19 – 20	81 – 87
Revenue (in millions)	136 – 142	570 – 600
Adjusted EBITDA (in millions)	60 – 63	252 – 265

	Three months ended December 31		Year ended December 31
	2020	2019	2020	2019
	$	$	$	$
Net income (loss)	22,577	(3,077)	(103,670)	(69,465)
Change in redemption value of liability-classified common and preferred shares^(a)	–	3,616	76,438	41,744
Accelerated amortization of deferred transaction costs / loss on debt modification^(b)	–	–	24,491	4,830
Amortization of acquisition-related intangible assets^(c)	16,008	14,612	59,219	42,846
Acquisition, integration and severance costs^(d)	4,673	2,785	9,970	19,914
Share-based payments^(e)	3,200	227	10,407	994
Net loss (gain) on foreign currency exchange^(f)	1,029	(10,725)	18,918	(11,680)
Legal settlement costs and other^(g)	1,079	(16)	933	259
Adjustments	25,989	10,499	200,376	98,907
Income tax expense related to adjustments^(h)	(2,074)	(2,058)	(7,720)	(7,096)
Adjusted net income (loss)⁽ⁱ⁾	46,492	5,364	88,986	22,346
Adjusted net income per share attributable to common shareholders of the Company^(j)
Basic	0.34	0.06	0.88	0.35
Diluted	0.33	0.06	0.84	0.33

	Three months ended December 31		Year ended December 31
	2020	2019	2020	2019
	$	$	$	$
Net income (loss)	22,577	(3,077)	(103,670)	(69,465)
Finance cost (recovery)	(1,257)	19,254	170,111	90,640
Finance income	(1,257)	(1,130)	(5,427)	(5,188)
Depreciation and amortization	18,410	17,041	69,673	51,125
Income tax expense (recovery)	(892)	(4,160)	3,087	(4,699)
Acquisition, integration and severance costs^(a)	4,673	2,785	9,970	19,914
Share-based payments^(b)	3,200	227	10,407	994
Net loss (gain) on foreign currency exchange^(c)	4,780	1,018	7,898	3,620
Legal settlement costs and other^(d)	1,079	(16)	933	259
Adjusted EBITDA^(e)	51,313	31,942	162,982	87,200
Advance from third party – merchant residual received^(f)	2,946	4,303	12,469	11,671

	Three months ended December 31		Year ended December 31
	2020	2019	2020	2019
	$	$	$	$
Net income (loss)	22,577	(3,077)	(103,670)	(69,465)
Change in redemption value of liability-classified common and preferred shares^(a)	–	3,616	76,438	41,744
Accelerated amortization of deferred transaction costs / loss on debt modification^(b)	–	–	24,491	4,830
Amortization of acquisition-related intangible assets^(c)	16,008	14,612	59,219	42,846
Acquisition, integration and severance costs^(d)	4,673	2,785	9,970	19,914
Share-based payments^(e)	3,200	227	10,407	994
Net loss (gain) on foreign currency exchange^(f)	1,029	(10,725)	18,918	(11,680)
Legal settlement costs and other^(g)	1,079	(16)	933	259
Adjustments	25,989	10,499	200,376	98,907
Income tax expense related to adjustments^(h)	(2,074)	(2,058)	(7,720)	(7,096)
Adjusted net income (loss)⁽ⁱ⁾	46,492	5,364	88,986	22,346
Adjusted net income per share attributable to common shareholders of the Company^(j)
Basic	0.34	0.06	0.88	0.35
Diluted	0.33	0.06	0.84	0.33

	December 31,	December 31,
	2020	2019
	$	$
Assets
Current assets
Cash	180,722	60,072
Trade and other receivables	32,055	32,765
Inventory	80	709
Prepaid expenses	4,727	2,268
Income taxes receivables	6,690	–
Current portion of advances to third parties	8,520	8,901
Current portion of contract assets	1,587	1,720
Total current assets before segregated funds	234,381	106,435
Segregated funds	443,394	200,612
Total current assets	677,775	307,047

Non-current assets
Advances to third parties	38,478	42,584
Property and equipment	16,537	15,272
Intangible assets	524,232	408,380
Goodwill	969,820	768,497
Contract assets	1,300	1,426
Processor deposits	13,898	12,478
Other non-current assets	1,944	3,088
Total Assets	2,243,984	1,558,772

	December 31,	December 31,
	2020	2019
	$	$
Liabilities
Current liabilities
Trade and other payables	64,779	51,258
Income taxes payable	7,558	2,866
Current portion of loans and borrowings	2,527	2,874
Other current liabilities	7,132	9,875
Liability-classified common shares	–	58,262
Liability-classified preferred shares	–	39,967
Total current liabilities before due to merchants	81,996	165,102
Due to merchants	443,394	200,612
Total current liabilities	525,390	365,714

Non-current liabilities
Loans and borrowings	212,726	722,166
Deferred tax liabilities	46,320	12,976
Other non-current liabilities	1,659	4,875
Unsecured convertible debentures due to shareholders	–	109,022
Total Liabilities	786,095	1,214,753

Equity
Equity attributable to shareholders

Share capital	1,625,785	450,523
Contributed surplus	11,966	1,603
Deficit	(211,042)	(104,812)
Accumulated other comprehensive income (loss)	22,470	(10,385)
	1,449,179	336,929
Non-controlling interest	8,710	7,090
Total Equity	1,457,889	344,019
Total Liabilities and Equity	2,243,984	1,558,772

	Year ended December 31
	2020	2019
	$	$
Cash flows from (used in) operating activities
Net loss	(103,670)	(69,465)
Adjustments for:
Depreciation of property and equipment	5,121	3,682
Amortization of intangible assets	64,552	47,443
Amortization of contract assets	2,114	2,323
Share-based payments	10,407	994
Net finance costs	164,684	85,452
Impairment on disposal of a subsidiary	338	–
Write-down of inventory to net realizable value	513	134
Income tax expense (recovery)	3,087	(4,699)
Changes in non-cash working capital items	10,061	2,667
Interest paid	(43,788)	(43,197)
Net realized loss on foreign currency exchange	(5,937)	–
Income taxes paid	(14,223)	(2,629)
	93,259	22,705
Cash flows from (used in) investing activities
Business acquisitions, net of cash acquired	(67,537)	(780,196)
Decrease (increase) in other non-current assets	(1,683)	1,158
Proceeds from the sale of a subsidiary, net of cash	19,045	–

Sale of equity investments	–	28,600
Net decrease (increase) in advances to third parties	9,401	(14,531)
Acquisition of property and equipment	(3,395)	(1,825)
Acquisition of intangible assets	(14,448)	(8,595)
	(58,617)	(775,389)
Cash flows from (used in) financing activities
Transaction costs related to loans and borrowings	(3,380)	(28,833)
Repayment of unsecured convertible debentures due to shareholders	(93,384)	(100,500)
Issuance of Subordinate Voting Shares	758,447	–
Equity issuance fees	(42,966)	–
Issuance of common shares	150	187,295
Proceeds from loans and borrowings	110,000	629,509
Repayment of loans and borrowings	(642,786)	(157,496)
Payment of lease liabilities	(946)	(939)
Dividend paid to non controlling interest	(940)	(360)
Redemption of preferred shares	–	(2,299)
Issuance of preferred shares	–	81,240
Issuance of unsecured convertible debentures due to shareholders	–	199,000
	84,195	806,617
Effect of movements in exchange rates on cash	1,813	69

Net increase in cash	120,650	54,002

Cash – Beginning of year	60,072	6,070
Cash – End of year	180,722	60,072

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