EVO Payments, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the EVO Payments third quarter 2020 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star, then 1 on your telephone. If you require any further assistance, please press star zero. I would now like to hand the conference over to your speaker today, Ed O'Hare, Senior Vice President, Investor Relations. Thank you. Please go ahead, sir.

Good morning, and welcome to Evo Payment's third quarter earnings conference call. This call is being webcast today, and a replay will be available through the Investor Relations section of Evo's website shortly after the completion of this call. Please note that some of the information you will hear during our discussion today will consist of forward-looking statements. These forward-looking statements are based on currently available information and actual results may differ materially from the views expressed in these statements, particularly due to the impact of COVID-19 on our business. For additional information on factors that may cause our actual results to differ from the views expressed in any forward-looking statements made today, please refer to today's press release and the risk factors discussed in our periodic reports filed with the SEC, including our most recent 10-K available on our website. In an effort to provide additional information to investors, today's discussion also includes certain non-GAAP financial measures. An explanation and reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures for the third quarter can be found in our earnings release available on our investor relations website. We have also posted slides on our website detailing recent volume trends for the company to further assist with today's discussion. Today, we will discuss our third quarter performance and provide an update on the impact COVID-19 is having on our business. Joining me on the call today is Jim Kelly, Chief Executive Officer, Tom Panther, Chief Financial Officer, Darren Wilson, President of the International Segment, and Brendan Tansel, President of the America Segment. I will now turn the call over to Jim.

Thank you, Ed, and good morning, everyone. In the third quarter, we delivered strong financial performance as we continue to actively manage our business through this challenging environment. Compared to last year, constant currency revenue declined 4% due to a shift in customer mix for larger merchants, coupled with significant declines in cross-border activity. As a result of our continued expense management and after normalizing for certain COVID-related charges during the quarter, constant currency adjusted EBITDA increased 5% from the prior year and margin expanded 300 basis points to 37%. Compared to the second quarter, constant currency revenue increased 24% and adjusted EBITDA increased 34%. which reflects the strong rebound in volume and our ability to successfully manage our business through this crisis. With respect to our volume trends, total volumes increased 25% sequentially and were flat compared to the prior year. We demonstrated sequential improvement across both Europe and the Americas, despite COVID-related restrictions, particularly related to cross-border activity, impacting certain of our industry verticals. Volume steadily improved in July, but began plateauing in August as economic activity was constrained by lingering government restrictions and lower consumer demand. As you are aware, many of our markets have experienced recent spikes in COVID infection rates. We are closely monitoring the increases in infections and the associated government restrictions in our markets. For October, volumes were down slightly from the prior year, and it is likely that our volumes could continue to exhibit volatility as the effects of the pandemic extend into next year. Despite the ongoing uncertainty regarding this pandemic, we remain confident in our ability to manage our business through this crisis and position the company to capitalize on the accelerated adoption of digital payments. Turning to our expense management, I continue to be pleased with the decisive actions we have taken since the onset of the pandemic to reduce our costs. These actions have allowed us to realign our expenses while also continuing to invest in our business and support our customers. Given our financial positioning, we have elected to reinstate salaries for those affected employees beginning in December. I would like to especially thank them for their sacrifices, which aided the company during this unprecedented period. Tom will discuss our cost structure and margin improvement in more detail later on the call. Even though this year has been extremely challenging, I believe we are well positioned for growth, both organically and through an M&A, as economies recover from the crisis. I will now turn the call over to Darren to discuss our European business. Darren.