Afternoon, everyone, and welcome to the EVERTEC Incorporated Second Quarter 2014 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Luis Cabrera, Senior Vice President, Treasury, Investor Relations and Corporate Development. Please go ahead, sir.
Thank you, operator. Good afternoon, everyone. Welcome to EVERTEC's Q2 2014 earnings call. I'm Luis Cabrera, Senior Vice President, Head of Investor Relations for EVERTEC. With me today is Peter Harrington, our President and CEO and Juan Jose Roman, Executive Vice President and Chief Financial Officer.
A replay of this call will be available until Wednesday, August 13, 2014. Access information for the replay is listed in today's financial press release, which is available on our website under the Investor Relations tab. As a reminder, this call may not be taped or otherwise reproduced without EVERTEC's prior consent. Before we begin, I would like to remind everyone that this call may contain forward looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. These forward looking statements about our expectations for future performance are subject to known and unknown risks and uncertainties.
EVERTEC cautious that these statements are not guarantees of future performance. All forward looking statements made today reflect our current expectations only and we undertake no obligation to update any statements to reflect events that occur after this call. Please refer to the company's most recent annual report on Form 10 ks filed with the SEC for factors that could cause our actual results to differ materially from any forward looking statements. During today's call, management will provide certain information that will constitute non GAAP financial measures under SEC rules, such as adjusted EBITDA, adjusted net income, adjusted net income per share. Reconciliations to GAAP measures and certain additional information are also included in today's earnings press release.
With that, we'll begin by turning the call over to Peter Harrington, our President and CEO. Peter?
Thanks, Luis, and good afternoon, everyone. Thanks for joining us on today's call. We had another good quarter highlighted by merchant acquiring and payment processing revenue growth of 9% year over year, adjusted EBITDA margin expansion of 130 basis points to 50% and adjusted earnings per share growth of 17% to $0.41 Revenue growth in our payments business outside of Puerto Rico remained strong in the Q2, increasing 10% compared with Q2 of last year. We continued to see good growth in all of our non Puerto Rican markets driven by demand for our card product and POS processing solutions. Within Puerto Rico, transaction growth was solid despite the ongoing economic headwinds as POS processing transactions were up 7% on a year over year basis.
As our results for the first half of twenty fourteen indicate, demand for our payment services remained solid across our entire Latin American footprint. And our new business pipeline continues to build into the second half of the year. Looking forward, our outlook for our payments businesses remains positive based on our leading market position, our demonstrated ability to gain share in all of our markets and the ongoing secular cash to card conversion trend, which is driving consistent growth of electronic payments across our entire market footprint. I want to share with you a few new business developments in payments, which show that we continue to successfully execute on our growth plan. First, we are now on the final steps of acquiring the principal member license for Visa Columbia.
This means we can sponsor any financial institution that is not a direct Visa member to issue Visa branded cards or acquire Visa transactions under the EVERTEC license. While having this license allows us to be a direct acquirer of Visa transactions, as we've stated in the past, this is not our strategy. Instead, we're aiming to find 1 or more partners whose commercial relationships we can leverage and they in turn can leverage our members license, scale, network and expertise. Next, I'd like to give you a quick update on the new Puerto Rico value added tax project, which we announced last quarter. As a reminder, we developed and are now hosting an integrated merchant portal for the reporting and payment of the new tax.
The new VAT tax will go live in August and we will continue to expect that this service will yield additional payment processing revenue as new merchants are included in the portal throughout the year. Now for Business Solutions. Business Solutions revenue declined 4% year over year in the second quarter to $44,900,000 Growth in the segment continued to be affected by lower levels of hardware and software sales versus the particularly strong sales we had in the 1st and second quarters of last year. It's worth mentioning, however, that excluding hardware and software sales, business solutions revenue grew 2% in the second quarter, in line with the first quarter results, excluding hardware and software and also consistent with our expectation of low single digit growth for the business. Overall, we continue to see solid demand for our recurring business solution products and services such as network solutions and IT consulting.
And we continue to sign new deals. For example, in July, we were awarded a contract with the Puerto Rico Police Department to provide a new data protection infrastructure. We were also recently awarded a contract to implement kiosks to provide digital information network throughout the largest mall in the Caribbean. Turning now to our full year 2014 outlook. We continue to look for upper single digit revenue growth in our payment businesses driven by the positive market trends that I just discussed.
In addition, our adjusted EPS guidance of $1.65 to $1.71 remains unchanged. As our first and second quarter results have shown, lower margin hardware and software sales have very little impact on the profitability growth. And as a result, we have either met or exceeded our EPS expectations in the first half of the year despite the revenue shortfall. However, based on our current visibility into hardware and software sales for the remainder of 2014, we now believe there is significantly higher risk that we will not achieve our overall growth target for business solutions this year. As a result, we are adjusting our 2014 total revenue growth guidance range to 3% to 4% from the 5% to 7% previously indicated.
While we continue to see new business opportunities, segment is more susceptible to delays in client decision making and in some cases because of the current economic situation in Puerto Rico. Thus increasing the risk that hardware and software sales will be lower than previously expected. In summary, our 2nd quarter results were solid and we've ended the second half of the year with strong momentum in our payment businesses. The hardware and software components of our business solutions unit are creating a drag on our top line results. But because of the strength of our business model, we continue to achieve greater profitability and strong free cash flow.
We continue to take the steps necessary to position EVERTEC for accelerated growth over time and we confident in our ability to succeed given our strong market position, best in class network and services and unmatched track record of delivering value to our customers. I will now turn the call over to our CFO, Juan Jose, who will take you through our financial results in more detail. Juan? Thank you and good
afternoon everyone. As Peter mentioned, in the Q2, the payment side of our business performed very well with both merchant acquiring and payment processing revenue growing 9% year over year. On the business solutions side, similar to the Q1, we again have a difficult year over year comparison due to the particularly high level of hardware and software sales we booked in the Q2 of 2013. Nevertheless, operating leverage in our payment related businesses, combined with our ongoing focus on managing costs again enable us to increase profitability. In the second quarter, we delivered over 100 basis points of adjusted EBITDA margin expansion and strong double digit adjusted net income and EPS growth.
Let's go through the results in more detail. Total consolidated revenue was $91,100,000 an increase of 2% compared with $89,200,000 in the prior year period. Turning to our segments. Merchant acquiring net revenue increased 9% to $19,800,000 from $18,200,000 in the prior year period. Growth was driven mainly by an increase in transaction volume.
Payment processing revenue also increased 9% to $26,400,000 in the 2nd quarter, up from $24,300,000 in the prior year period. Growth was driven mainly by new customer additions and an increase in accounts on file within our car product business as well as an increase in ATH and POS processing transactions. In addition, as we discussed with you in our Q1 call, in the Q2, we recognized approximately $65,000,000 of revenue from the Department of Education program we processed in Puerto Rico. We recognized no revenue from this program in the Q2 of 2013. Excluding outside of Puerto Rico continued to grow at a strong pace in Q2, up 10% versus the prior year, driven mainly by car product processing.
Additionally, POS volume growth within Puerto Rico was up a solid 7% compared with the prior year. Our Business Solutions segment revenue decreased 4% to $44,900,000 in the 2nd quarter compared with $46,700,000 in the prior year period. Similar to the Q1, the decrease was due almost entirely to a $2,900,000 decline in hardware and software product sales in the quarter, partly offset by the increase in revenue from other product and services, including network solutions and IT consulting. Moving to expenses on a GAAP basis, our 2nd quarter total operating expenses were down by approximately 9% compared with the prior year period. Cost of revenue, excluding depreciation and amortization, was $38,800,000 a decrease of $2,900,000 or 7% from the corresponding 2013 period.
This decline was due primarily to a reduction in cost of sales, resulting from lower level of hardware and software product sales. Selling, general and administrative expenses for the quarter were $10,500,000 down $2,200,000 or 17% from the corresponding 2013 period. This decrease was due mainly to a one time $3,100,000 non cash charge taken in the Q2 of 2013 in connection with the vesting of all our tranche B and C stock options as a result of our IPO. The decrease was partly offset by $1,100,000 in professional fees minutes. Depreciation and amortization expense decreased $1,500,000 or 8% compared with the prior year.
Decrease is related primarily to lower amortization of software packages that became fully depreciated. Income from operations for the 2nd quarter was $25,400,000 an increase of 50 percent compared with $16,900,000 in the corresponding 2013 period. Total non operating expenses were $5,700,000 dollars a decrease of $81,200,000 from the corresponding 2013 period. The decrease was driven mainly by 2 non recurring expenses incurred in the Q2 of 2013. First, a $58,500,000 loss related to the extinguishment of debt as a result of our debt refinancing in April 2013 and second, a 16,700,000 dollars expense associated with the termination of our consulting agreements with Apollo and Popular.
In addition, our interest expense declined by $3,200,000 as a result of our refinancing last year. GAAP income tax expense in the 2nd quarter was $2,000,000 versus an income tax benefit of $5,000,000 in the prior year period. Cash income tax expense was approximately $400,000 versus approximately $1,000,000 in the prior year. We expect cash taxes to return to a more normalized rate beginning in the Q3. As of June 30, 2014, we had approximately $58,000,000 of NOLs available to offset future tax payments related to our operations in Puerto Rico.
Adjusted EBITDA for the 2nd quarter was 45 $500,000 an increase of $2,100,000 or 5 percent from $43,400,000 in the corresponding 2013 period. The increase in adjusted EBITDA was due mostly to revenue growth and operating leverage in our merchant acquiring and payment processing businesses. Adjusted EBITDA margin was 50%, up 130 basis points from 48.7 percent in the prior year period. Adjusted net income in the 2nd quarter was $32,200,000 up 11% from $28,900,000 in the prior year. This increase was due mainly to adjusted EBITDA growth and lower levels of operating expense and cash taxes.
Moving to our balance sheet. As of June 30, we reported $27,800,000 of unrestricted cash and $698,600,000 of total short term borrowings and long term debt. During the quarter, we made a mandatory repayment of approximately $4,800,000 on borrowings outstanding on our Term A and Term B senior secured facilities, paid $17,000,000 on our revolving line of credit and paid dividends of 7,800,000 dollars As of June 30, total liquidity, which includes unrestricted cash and available borrowing capacity under our revolver, was approximately $104,800,000 For the Q2, our free cash flow defined as adjusted EBITDA minus CapEx, cash interest expense and cash income taxes was $32,200,000 up 10% compared with the prior year period. Now I would like to briefly address the $400,000,000 senior notes offering, which we withdrew from the market in June. Our aim was to opportunistically access the debt capital markets to enhance our already strong balance sheet with longer term low fixed rate capital.
However, as we went through the process, we concluded that it was not the right time to move forward given the cost of capital achievable was not attractive to the company. We do not need to refinance any of our existing debt at this time. Our balance sheet is strong and have no significant maturities over the next 4 years. And as you know, we generate significant annual free cash flow. All of this means we maintain considerable financial flexibility.
And if we choose, we can pursue new debt financing alternative at a time that is beneficial to us and our shareholders. We remain committed to the prudent return of capital to shareholders. This afternoon, we announced that our Board of Directors declared a regular quarterly dividend of $0.10 per common share. Now on to our guide. As Peter mentioned, we now expect total revenue growth in 2014 to be between 3% to 4% compared with our prior outlook of 5% to 7% growth.
Our updated revenue guidance reflect greater risk to the hardware and software portion of our Business Solutions segment. We continue to expect adjusted EBITDA growth of at least 100 basis points higher than our revenue growth and fully diluted earnings per share of between 1.65 dollars and $1.71 We now expect full year 2014 operating depreciation and amortization expense of approximately $31,000,000 compared with $32,000,000 previously. We continue to expect cash interest expense of approximately 23,000,000 and fully diluted shares of approximately 79,200,000. We expect 2014 cash income tax expense of 2,000,000 dollars compared to $3,000,000 previously. Our 2014 effective tax rate outlook on a GAAP basis remains between 10% 12%.
With that operator, we will now open up the call for questions.
Thank you. And our first question will come from Jim Schneider with Goldman Sachs.
Good afternoon. Thanks for taking my question. I guess, I understand that the hardware and software is relatively immaterial to your EBITDA contribution, so you're keeping your earnings guidance unchanged. But can you give us a little bit of color around the hardware and software bookings in the pipeline, whether you think that any of that business is pushing out to the back half of the year, so you're being conservative of the full year outlook? Or do you think that most of this may not happen at all in 2014 and may just get pushed into 2015 or canceled altogether?
I would say that we probably see at this point that more of it will get pushed to 2015 from 2014. We do have opportunities that we will execute on in the second half of the year. But given some of the projects that we expected in 2014 that clearly won't happen until 2015. But I think you need to understand that a lot of this hardware and software comes from current customers where we already have a recurring revenue stream and maybe where we've had a contract and they are now upgrading to newer versions of hardware and software. And so we will continue to generate the recurring revenue.
It's just that refresh that has now probably been pushed to 2,050.
Okay. That's helpful. Thanks. And then I was wondering if you could just give us any update on your partnerships for processing in Colombia in terms of the 2 customers that you've already signed up. When should we expect to start to see revenue materialize from those customers?
Yes, nothing's changed there. We are implementing and we expect to see the first revenue by year end in Q4. So we are very much in the midst of going through the implementation process, but nothing has changed from the last quarter. We expect to bring that first customer online by end of year.
That's helpful. Thanks so much.
And our next question will come from Tien Tsin Huang. Go ahead, sir.
Great. Thank you. Just following up on that, just on the hardware, software sales. I mean, is it broad based or is it really Popular that's driving some of that? And I'm curious maybe just on Popular, how their spend is tracking versus plan?
I noticed they paid back TARP. So just wanted to get an update there.
I would say that the hardware shortfall is less Popular and more the government. When you look at what we had expected in 2014. Popular's revenue give or take is roughly flat to and in line with where we expected it.
Okay. So no big change there. Fair enough. That's good to know. And then just and then Peter, just on the I think in the past you've talked a little bit about sort of new deals and bookings and backlog.
I know you don't give us hard numbers there, but can you just compare for us sort of year to date how booking backlog compares this year versus last year?
I would say it's right in line. We signed a couple of new customers in the Q2. So right now based on what I'm seeing, we should have a year that looks a lot like 2013 as far as new customer sales on the payment side. We don't really track because of the nature of the business solution side, some of all the smaller deals that we do in the network and BPO business. But on the payment side, we're in line with where we were last year.
Okay. That's good to know. And then just last one for me. Just sounds like Puerto Rico is pretty stable, that's good. But there's been a lot of rumblings of different changes, regulatory laws in different parts of Latin America.
I know you're not big in Mexico, I know that tax change there, but anything to call out that may be good or bad relative to when we last got together with respect to the regulation situation around payments? Thanks.
Yes. No, I don't see anything around the payment side. I mean, I think clearly there's been again considerable amount of noise related to Puerto Rico. And I think that what we're seeing is probably some of the impact of that is the pushing out of some of these projects to refresh the hardware and software. But as you saw in the numbers, we don't see it on the payment side of the business.
We're still seeing consumption just as we have, as I've been telling you every quarter, we've been running at 7% to 8% year over year growth and that continues. To be honest with you, we're seeing the same thing already in the beginning of this Q3. So that trend, I don't see any impact to it.
No, that's good. That's consistent. Ironically, actually a little better than the ISO performance, it sounds like this quarter in the U. S. So that is ironic.
Anyway, appreciate that. I'm all set up.
Thanks, Tien Tsin.
And our next question will come from George Mihalos from Credit Suisse.
Great. Thanks for taking my question. Just to sort of build on the prior question from Tien Tsin. Peter, any update with regard to signing another merchant alliance, obviously outside of Colombia, I thought there were perhaps something else in the pipeline that could be imminent?
Yes, it is. I don't have any news for you, George. I mean, we're still it's out there. I think we've gotten to a point where we're waiting on them. I think they've got probably some stuff they're working through internally, but we still feel good about it.
It's just I don't have any real update for you. We're still there.
Okay. And you don't But
I think is a positive of the Columbia thing is now, as I told you before, I had to wait to get this before I could actually go have conversations. So now I'm in a position where we can start focusing on that to find our partner in Colombia.
Okay, great. And is your sense that that's not at this point going to materially weigh on how you're thinking about 2015 growth, the push out of the merchant lines? Okay, great. And just last question from me, I think you had mentioned that revenue growth outside of Puerto Rico was sort of low double digit, call it, about 10%. Did that decelerate a bit from what you saw in 2Q?
No, no. I think well, it did from on a real basis of I think we grew 16% in the Q1.
Okay.
But as we've said before, it's not really deceleration. It's that if you look back at what we published in the 3rd Q4 of last year, it goes up and down a little bit because as you can imagine, it has to do with the size of the customers I put on. And so if I put on big customers last year and smaller customers this year in the quarter, then obviously the number is affected. But I wouldn't read anything more than that. This is how it's gone.
You'll see some quarters that will be in the low teens, some quarters it will be in the mid teens. I think that's what you'll see. We still think it will run around somewhere around 15% give or take year over year.
Okay. Thank you.
And our next question will come from Bryan Keane with Deutsche Bank.
Yes. Hi, guys. Just want to follow-up on that. On the international growth, is there areas of strength versus areas of weakness that
you can talk about that you saw in the quarter? No, not really. I mean, we don't give it out. We don't give market by market. I would just tell you that we continue to sign business in a number of the markets we're in.
So we're seeing growth in sales in all of our markets like we did last year. And we're seeing the growth it's driven again, I mean a lot of this is driven by 2 things. The sales we had last year and the cash to card conversion. And we're seeing that pretty uniform across the markets.
Okay. And then just a follow-up on Business Solutions. What does the revenue guidance for the year now come out to be for Business Solutions? And then do we expect a rebound in the Q1 of 2015? Or is the visibility still unclear when that rebound will be in Business Solutions?
For the rest of the year, Business Solutions, maybe the second half will be around 4% growth versus last year. Yes, well, we still have not looked into 2015, but the reality is we expect to be better than 2014 mostly because of the impact really this year. Hardware and software will be lower, but we expect to be more normalized here starting Q1 of next year.
Okay. All right. That's helpful. Thanks. That's all I had.
And our next question will come from Fatoum Begoli from Bank of America Merrill Lynch.
Yes. Thanks for taking my questions. So most of them have been answered already. But just once again, so what the current Puerto Rico situation, how is that affecting EVERTEC specifically and what are you hearing from clients? Thanks.
Well, again, I mean, if you look at it from an EVERTEC perspective, that's separate it. Like we said, on the payment side, we've seen really no impact in that. We continue to see growth in the payment transactions. And again, we have probably more visibility to this than anybody. And we're seeing just very consistent growth year over year on the payment side of the business and you see that in the numbers.
On the business solutions side, we have seen no impact to Popular at this point. So Popular is behaving exactly from a revenue perspective for EVERTEC as we had expected really to behave and in line with what it's done last year. So we don't see any negative impact to Popular. It makes up the majority of the revenue in Business Solutions. We do think there is a lot of uncertainty in the government side.
And I think you're seeing that in some of these projects that are not being upgraded as quickly as we had expected them to be. I'll be honest, we think it's just timing. We think they're going to have to upgrade at some point. It's just with they're trying to balance the budget for the first time in 22 years. I think that probably has more play in it than anything else.
I see. All right. Thank you. And so just to clarify again,
And in the hardware and software, it was predominantly government contracts.
I see. Okay. And then for merchant acquiring and payment processing, is it okay to assume that you're expecting high single digit growth for the second half?
Yes.
Okay. That's all I had. Thank you.
Okay.
Up next, we have Chris Brendler with Stifel.
Hi, thanks. Good evening, guys. I just wanted to ask a follow-up on the international expansion front, the strategy and the plans to find an acquiring partner either in Colombia or other markets like Costa Rica or Panama. No real uptick, it sounds like, from you guys at this point. I just wanted to know, just sort of take your temperature on how you feel about the multi year outlook.
And it's something that you're starting to get discouraged about or it's just simply that they need to take it's just not longer? And maybe by market, how are things trending from sort of the standpoint of potentially getting something done in calendar 2014?
Yes. I think as we've said before, I mean, this is a new experience for the partners that we're talking to. This is not a common practice in our footprint. We're the ones trying to lead this in the market. And so yes, we clearly have learned that it will take longer than we had originally expected.
But I am not anymore I'm no more confident than I was before. Colombia is a different story. We really couldn't move in Colombia until we had to licenses. And now we feel very good about Colombia because we have finally gotten the Visa license, which gives us the ability now to actually go into the market. Now as we said in the script, we could go in as EVERTEC, but that's not the strategy that we have been pursuing or will pursue.
Pursue. We want to partner with the financial institution.
Okay, great. And then for Puerto Rico for a second, it sounds like it's remarkably stable. Any inflection in terms of just consumer spending and spending on cards? Is this sort of 7% rate? I'd say it's been very consistent for the last several quarters.
Any movement either way on that front?
I don't I mean, it has been so consistent that there is nothing that we see that tells us that that's going to change. Now, we have gone through a lot of noise as you know here over the last give or take what 6, 9 months. It hasn't changed. So the consumer confidence in the market hasn't if anything has had absolutely no impact. I think this is very isolated.
There's been a lot of noise, but it's not about the consumer, it's about the government. It's not really about and because we would see it, believe me, we would see it before anybody else, sorry.
Okay, great. Thanks so much. Okay.
Up next, we have Bob Napoli from William Blair.
Hey, guys. Good afternoon. Any chance we could get hardware and software sales number for 2013? I mean, I think I asked last quarter, I mean, it's just such a huge difference in margin that it would be great if you broke that out. I mean, what did you have in full year 2013?
And what do you have year to date
in Let us look at that. I don't have that in front of me. But me or Juan will get back to you on that, Bob.
Okay.
Yes, but we will but again, I just want to remind, last year was around 3%, 3.5%, give and take percent. This year, obviously, would run even lower than that. So at least give you a good sense of where the number is. It's really not
3% of total revenue, Juan?
Of total revenue.
Okay.
Like around that.
Okay. Thank you. And then just in the non Puerto Rico growth, where as you look at expecting that to continue in mid double digits, what markets are you getting are the most and where are you getting the majority of that growth today? And where do you expect to be getting it over the next couple of years?
Obviously, it comes from the bigger markets that we operate in today, okay?
Panama or
is that I mean?
Well, what I'm saying is the market if you look at our footprint today, Bob, right? Yes. So our bigger markets would be Panama, it would be Costa Rica, it would be the Dominican Republic. Those are our bigger markets in our current footprint, right? And that's where obviously the transactions, right.
But we're seeing growth in El Salvador, we're seeing growth in Guatemala and Curacao and a number of other markets. They're just if you look in the grand scheme, those are fairly small markets. The future, obviously, the growth will come from places like Colombia. I mean, that's where the growth the majority of the growth will come from as we go forward.
Okay.
So that story really hasn't changed much, Bob.
Any different thoughts on return of capital and share buybacks? I mean, you're generating a lot of capital paying down debt. How much longer do you want to pay down debt? I know you'd love to do an acquisition or to buy a portfolio or but it doesn't sound like you're that close to anything material on that front. So what are your thoughts as far as share repurchases?
Yes. For now, it has not changed. We continue to focus obviously investing in the company. In terms of our debt repayment, as I said today, we continue paying down our revolver. You should expect that that will continue.
So we expect to pay all of it during this year. And we will continue doing the mandatory debt repayment, right? After that, yes, we will have a discussion with our board to evaluate what other alternative we will do, including the buyback. As we said, we buyback last year was very positive for our shareholders. So it's a consideration for us to discuss with our Board.
But short term, as I said, it you will see us liquid paying down fully our revolver.
And then from an M and A perspective, Peter, you're not really seeing any material opportunities at this point?
Not for 2014, no.
Okay, Great. Thank you very much.
Thank you.
At this time, we have one question remaining in the queue. We'll take our next question from Smriti Srivastava Pramod from Morgan Stanley.
Yes. Hi, Peter and Juan.
How are you doing? Good.
Thank you. Just a follow-up question on the international expansion plans, especially on the merchant acquiring alliance front. Just wondering, would it do you think it'd be possible to accelerate the timeframe of signing some of these alliances if you were to contribute some of your own capital to
JV?
No, I don't think so because I would be happy to do that today. It's not that it isn't that we're reluctant to commit capital. As we just said, that would be my first use of capital before I would even pay down the revolver and do a buy My first use of capital would always be to invest in the business. So now it's not that isn't going to help the process. We're more than happy to do that today.
And then maybe just
a follow-up on the international front. A while back, you guys talked about introducing new products like dynamic currency conversion and such. Can you give us an update in terms of what's in the pipeline for new products and new geographies that you are likely to enter outside of the merchant acquiring alliance front?
There is no substantial product offering that I would highlight to you today. I mean, we're always adding functionality to the platform, there's nothing that stands out like dynamic currency conversion or ATH, the person to person payment product that we launched. There isn't anything today that I would that's imminent that I would bring to the that I would put on the table to you.
Okay. Thank you.
And it appears there are no further questions at this time. Mr. Harrington, I'd like to turn the conference back to you for any additional or closing remarks.
Thank you, operator. In summary, we had a solid second quarter. We continue to add business from new and existing customers. We continue to invest to support long term growth and we're driving greater profitability by leveraging our attractive business model. I want to thank you for your support and I look forward to speaking with you again on our Q3 earnings call.
Operator, you may now end the call.
This does conclude today's