Announces 2025 outlook
Announces acquisition of Nubity
EVERTEC, Inc. (NYSE: EVTC) (“Evertec” or the “Company”) today
announced results for the fourth quarter and full year ended
December 31, 2024.
Fourth Quarter 2024 Highlights and Recent Highlights
- Revenue increased 11% to $216.4 million, approximately 14.5% on
a constant currency basis
- GAAP Net Income attributable to common shareholders increased
249.0% to $40.1 million, and increased 264.7% to $0.62 per diluted
share
- Adjusted EBITDA increased 24% to $88.6 million and Adjusted
earnings per common share increased 40.3% to $0.87
- Closed on acquisition of 100% of Nubity, Inc. ("Nubity") on
November 19th
Full Year 2024 Highlights
- Revenue grew 22% to $845.5 million, approximately 23.5% on a
constant currency basis
- GAAP Net Income attributable to common shareholders was $112.6
million an increase of 41%, or $1.73 per diluted share
- Adjusted EBITDA was $340.2 million an increase of 17% and
Adjusted earnings per common share increased by 16.3% to $3.28
- $95.2 million returned to shareholders through share
repurchases and dividends
- Closed on the acquisition of Grandata and Nubity
- Completed a $70 million accelerated share repurchase
program
Mac Schuessler, President and Chief Executive Officer stated,
"In 2024, we achieved record revenues by delivering strong results
in our core markets while successfully integrating our largest
acquisition, Sinqia. We continued to execute on our capital
deployment plan, completing the acquisition of Nubity and Grandata
as well as repurchasing our stock through the accelerated share
repurchase program completed in 2024. Our focus for 2025 will be on
optimizing margin, continuing to allocate capital thoughtfully and
driving organic revenue growth.”
Fourth Quarter 2024 Results
Revenue. Total revenue for the quarter ended December 31, 2024
was $216.4 million, an increase of 11.2%, compared with $194.6
million in the prior year quarter as a result of organic growth
across all of the Company's segments, the contribution from an
additional month of Sinqia and the contribution from the Grandata
and Nubity acquisitions. Merchant acquiring revenue benefited from
an improvement in spread and sales volume growth and Payments
Puerto Rico revenue continues to benefit from growth in
transactions and ATH Movil. Revenue in Latin America reflected the
contribution from acquisitions, continued organic growth across the
region and incremental volumes from our GetNet Chile relationship
which led to the recognition of a one-time incremental revenue in
the quarter of $0.6 million. Business Solutions revenue increased
as a result of projects completed throughout the year.
Net Income attributable to common shareholders. For the quarter
ended December 31, 2024, GAAP Net Income attributable to common
shareholders was $40.1 million or $0.62 per diluted share, an
increase of $28.6 million, compared with $11.5 million or $0.17 per
diluted share in the prior year. The increase was driven by the
increase in revenues, the impact from a $8.9 million net gain in
the quarter related to the sale of tax credits, lower selling,
general and administrative expenses, lower depreciation and
amortization and the benefit from a lower effective tax rate. These
variances are partially offset by an increase in cost of revenues
resulting from the incremental expenses related to the acquisitions
completed throughout the year, an increase in costs of sales mainly
related to the projects completed in Business Solutions and higher
interest expense as a result of the incremental debt raised to
finance the Sinqia acquisition.
Adjusted EBITDA and Adjusted EBITDA Margin. For the quarter
ended December 31, 2024, Adjusted EBITDA was $88.6 million, an
increase of $16.9 million when compared to the prior year quarter,
driven by the increase in revenues and the contribution from the
acquisitions. Adjusted EBITDA margin (Adjusted EBITDA as a
percentage of total revenue) increased approximately 410 basis
points to 40.9% compared with 36.8% in the prior year, as we drive
incremental revenue and continue to focus on managing expenses.
Adjusted Net Income and Adjusted earnings per common share. For
the quarter ended December 31, 2024, Adjusted Net Income was $56.0
million, an increase of 37% compared with $40.8 million in the
prior year, almost entirely related to the increase in Adjusted
EBITDA and a lower adjusted effective tax rate. Adjusted earnings
per common share was $0.87, an increase of 40% compared with $0.62
in the prior year driven by the factors explained for Adjusted Net
Income and a lower share count as a result of repurchases completed
in 2024.
Full Year 2024 Results
Revenue. Total revenue for the year ended December 31, 2024 was
$845.5 million, an increase of 22% compared with $694.7 million in
the prior year. This reflects contributions from acquisitions and
organic growth across all segments. The Latin America segment
experienced a full-year contribution from the Sinqia acquisition
completed in Q4 2023, with additional contributions from the
Grandata and Nubity acquisitions completed in Q4 2024, along with
organic growth in the region. Merchant acquiring revenue saw
improvements due to better spread and sales volume growth. Payments
Puerto Rico revenue increased due to ongoing transaction volume
growth and contributions from ATH Movil Business. Business
Solutions revenue benefited from completed projects, mainly for
Popular.
Net Income attributable to common shareholders. For the year
ended December 31, 2024, GAAP Net Income attributable to common
shareholders was $112.6 million, or $1.73 per diluted share, an
increase compared with $79.7 million or $1.21 per diluted share in
the prior year, primarily driven by the higher revenues and the
benefit from a lower effective tax rate. These were partially
offset by higher depreciation and amortization and interest
expense. The prior year also included the negative impact from the
loss on foreign currency swap related to the Sinqia acquisition.
Cost of revenues and selling, general and administrative expenses
both increased primarily due to an increase in personnel costs
driven by the added headcount from acquisitions. Interest expense
increased from the prior year due to the same reason explained
above for the quarter.
Adjusted EBITDA and Adjusted EBITDA Margin. For the year ended
December 31, 2024, Adjusted EBITDA was $340.2 million, an increase
of 17% compared to the prior year. The increase in Adjusted EBITDA
primarily reflects the contribution from the Sinqia acquisition and
the increase in revenues discussed above, partially offset by an
increase in operating expenses. Adjusted EBITDA margin (Adjusted
EBITDA as a percentage of total revenues) decreased 180 basis
points to 40.2% compared with 42.0% in the prior year. The decrease
in Adjusted EBITDA margin primarily reflects the addition of
Sinqia, which contributes at a lower margin, as well as the impact
of the $6.3 million adjustment for GetNet Chile in the prior year,
compared with $2.4 million in the current year, which is 100%
accretive to margin.
Adjusted Net Income and Adjusted earnings per common share. For
the year ended December 31, 2023, Adjusted Net Income was $213.2
million, an increase of 15% compared with $185.5 million in the
prior year. The increase was driven by the higher adjusted EBITDA
and a decrease in Non-GAAP tax expense, partially offset by higher
operating depreciation and amortization and higher cash interest
expense, due to the incremental debt raised for the Sinqia
acquisition. Adjusted earnings per common share were $3.28, an
increase of 16.3% compared with $2.82 in the prior year. The
increase was driven by the increase in Adjusted Net Income and a
lower share count that reflects the impact from the share
repurchases completed throughout the year.
Business Acquisition
On November 19, 2024, the Company acquired 100% of the share
capital of Nubity. Nubity is a cloud services provider based in
Mexico, specializing in AWS cloud infrastructure management,
DevOps, and cloud-native application solutions for clients across
Latin America. This transaction enhances our existing product
offering and helps enable the Company to address our customer’s
needs more fully. The Company plans on leveraging its existing
client base in Puerto Rico and Latin America to accelerate the
growth of this acquisition.
Stock Repurchase
For the full year 2024, the Company repurchased 2.4 million
shares of its common stock at an average price of $34.90 for a
total of $82.3 million. At December 31, 2024, the Company's share
repurchase program had approximately $138 million remaining and
authorized for future use through December 31, 2025. The Company
may repurchase shares in the open market, through accelerated share
repurchase programs, 10b5-1 plans, or in privately negotiated
transactions, subject to business opportunities and other
factors.
2025 Outlook
The Company's financial outlook for 2025 is as follows:
- Total consolidated revenue between $889 million and $899
million representing approximately 5.1% to 6.3% growth compared
with $845 million in 2024 on a GAAP basis, or approximately 5.5% to
6.7% on a constant currency basis
- Adjusted earnings per common share between $3.34 to $3.45
representing approximately 1.8% to 5.2% growth as compared to $3.28
in 2024, or approximately 2.6% to 6.0% on a constant currency
basis
- Capital expenditures are anticipated to be approximately $85
million
- Effective tax rate of approximately 6% to 7%
Earnings Conference Call and Audio Webcast
The Company will host a conference call to discuss its fourth
quarter and full year 2024 financial results today at 4:30 p.m. ET.
Hosting the call will be Mac Schuessler, President and Chief
Executive Officer, and Joaquin Castrillo, Chief Financial Officer.
The conference call can be accessed live over the phone by dialing
(888) 338-7153 or for international callers by dialing (412)
317-5117. A replay will be available one hour after the end of the
conference call and can be accessed by dialing (877) 344-7529 or
(412) 317-0088 for international callers; the pin number is
1193493. The replay will be available through Wednesday, March 5,
2025. The call will be webcast live from the Company’s website at
www.evertecinc.com under the Investor Relations section or directly
at http://ir.evertecinc.com. A supplemental slide presentation that
accompanies this call and webcast can be found on the investor
relations website at ir.evertecinc.com and will remain available
after the call.
About Evertec
EVERTEC, Inc. (NYSE: EVTC) is a leading full-service transaction
processor and financial technology provider in Latin America,
Puerto Rico and the Caribbean, providing a broad range of merchant
acquiring, payment services and business process management
services. Evertec owns and operates the ATH® network, one of the
leading personal identification number (“PIN”) debit networks in
Latin America. In addition, the Company manages a system of
electronic payment networks and offers a comprehensive suite of
services for core banking, cash processing and fulfillment in
Puerto Rico, that process approximately six billion transactions
annually. The Company also offers financial technology outsourcing
in all the regions it serves. Based in Puerto Rico, the Company
operates in 26 Latin American countries and serves a diversified
customer base of leading financial institutions, merchants,
corporations and government agencies with “mission-critical”
technology solutions. For more information, visit
www.evertecinc.com.
Use of Non-GAAP Financial Information
The non-GAAP measures referenced in this earnings release are
supplemental measures of the Company’s performance and are not
required by, or presented in accordance with, accounting principles
generally accepted in the United States of America (“GAAP”). They
are not measurements of the Company’s financial performance under
GAAP and should not be considered as alternatives to total revenue,
net income or any other performance measures derived in accordance
with GAAP or as alternatives to cash flows from operating
activities, as indicators of operating performance or as measures
of the Company’s liquidity. In addition to GAAP measures,
management uses these non-GAAP measures to focus on the factors the
Company believes are pertinent to the daily management of the
Company’s operations and believes that they are also frequently
used by analysts, investors and other stakeholders to evaluate
companies in our industry. These measures have certain limitations
in that they do not include the impact of certain expenses that are
reflected in our condensed consolidated statements of operations
that are necessary to run our business. Other companies, including
other companies in our industry, may not use these measures or may
calculate these measures differently than as presented herein,
limiting their usefulness as comparative measures.
Reconciliations of the non-GAAP measures to the most directly
comparable GAAP measure are included at the end of this earnings
release. These non-GAAP measures include EBITDA, Adjusted EBITDA,
Adjusted Net Income and Adjusted Earnings per common share, each as
defined below.
EBITDA is defined as earnings before interest, taxes,
depreciation and amortization.
Adjusted EBITDA is defined as EBITDA further adjusted to
exclude certain non-cash items and unusual expenses such as:
share-based compensation, restructuring related expenses, fees and
expenses from corporate transactions such as M&A activity and
financing, equity investment income net of dividends received, and
the impact from unrealized gains and losses on foreign currency
remeasurement for assets and liabilities in non-functional
currency. This measure is reported to the chief operating decision
maker for purposes of making decisions about allocating resources
to the segments and assessing their performance. For this reason,
Adjusted EBITDA, as it relates to the Company's segments, is
presented in conformity with Accounting Standards Codification 280,
Segment Reporting, and is excluded from the definition of non-GAAP
financial measures under the Securities and Exchange Commission's
Regulation G and Item 10(e) of Regulation S-K. The Company's
presentation of Adjusted EBITDA is substantially consistent with
the equivalent measurements that are contained in the secured
credit facilities in testing EVERTEC Group’s compliance with
covenants therein such as the secured leverage ratio.
Adjusted Net Income is defined as Adjusted EBITDA less:
operating depreciation and amortization expense, defined as GAAP
Depreciation and amortization less amortization of intangibles
related to acquisitions such as customer relationships, trademarks,
non-compete agreements, among others; cash interest expense defined
as GAAP interest expense, less GAAP interest income adjusted to
exclude non-cash amortization of debt issue costs, premium and
accretion of discount; income tax expense which is calculated on
adjusted pre-tax income using the applicable GAAP tax rate,
adjusted for uncertain tax position releases, tax true-ups,
windfall from share-based compensation, unrealized gains and losses
from foreign currency remeasurement, among others; and
non-controlling interests, net of amortization for intangibles
created as part of the purchase.
Adjusted Earnings per common share is defined as Adjusted
Net Income divided by diluted shares outstanding.
The Company uses Adjusted Net Income to measure the Company's
overall profitability because the Company believes it better
reflects the comparable operating performance by excluding the
impact of the non-cash amortization and depreciation that was
created as a result of merger and acquisition activity. In
addition, in evaluating EBITDA, Adjusted EBITDA, Adjusted Net
Income and Adjusted Earnings per common share, you should be aware
that in the future the Company may incur expenses such as those
excluded in calculating them.
Forward-Looking Statements
Certain statements in this earnings release constitute
“forward-looking statements” within the meaning of, and subject to
the protection of, the Private Securities Litigation Reform Act of
1995. 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. All
statements contained in this press release other than statements of
historical facts, including, without limitation, statements
regarding our future results of operations and financial position,
including our guidance for fiscal year 2025; our business
strategies; objectives of management for future operations,
including, among others, statements regarding our expected growth,
international expansion and future capital expenditures; and
expectations for and anticipated benefits of acquisitions, are
forward looking statements. Words such as “believes,” “expects,”
“anticipates,” “intends,” “projects,” “estimates,” and “plans” and
similar expressions of future or conditional verbs such as “will,”
“should,” “would,” “may,” and “could” are generally forward-looking
in nature and not historical facts.
Various factors that could cause actual future results and other
future events to differ materially from those estimated by
management include, but are not limited to: our reliance on our
relationship with Popular, Inc. (“Popular”) for a significant
portion of our revenues pursuant to our second Amended and Restated
Master Services Agreement (“A&R MSA”) with them, and as it may
impact our ability to grow our business; our ability to renew our
client contracts on terms favorable to us, including but not
limited to the current term and any extension of the A&R MSA
with Popular; our dependence on our processing systems, technology
infrastructure, security systems and fraudulent payment detection
systems, as well as on our personnel and certain third parties with
whom we do business, and the risks to our business if our systems
are hacked or otherwise compromised; our ability to develop,
install and adopt new software, technology and computing systems; a
decreased client base due to consolidations and/or failures in the
financial services industry; the credit risk of our merchant
clients, for which we may also be liable; the continuing market
position of the ATH network; a reduction in consumer confidence,
whether as a result of a global economic downturn or otherwise,
which leads to a decrease in consumer spending; our dependence on
credit card associations, including any adverse changes in credit
card association or network rules or fees; changes in the
regulatory environment and changes in macroeconomic, market,
international, legal, tax, political, or administrative conditions,
including inflation or the risk of recession; the geographical
concentration of our business in Puerto Rico, including our
business with the government of Puerto Rico and its
instrumentalities, which are facing severe political and fiscal
challenges; additional adverse changes in the general economic
conditions in Puerto Rico, whether as a result of the government’s
debt crisis or otherwise, including the continued migration of
Puerto Ricans to the U.S. mainland, which could negatively affect
our customer base, general consumer spending, our cost of
operations and our ability to hire and retain qualified employees;
operating an international business in Latin America, Puerto Rico
and the Caribbean, in jurisdictions with potential political and
economic instability; the impact of foreign exchange rates on
operations; our ability to protect our intellectual property rights
against infringement and to defend ourselves against claims of
infringement brought by third parties; our ability to comply with
U.S. federal, state, local and foreign regulatory requirements;
evolving industry standards and adverse changes in global economic,
political and other conditions; our level of indebtedness and the
impact of rising interest rates, restrictions contained in our debt
agreements, including the secured credit facilities, as well as
debt that could be incurred in the future; our ability to protect
our IT systems and prevent a cybersecurity attack or breach to our
information security; the possibility that we could lose our
preferential tax rate in Puerto Rico; our ability to integrate
Sinqia S.A. (“Sinqia”) successfully into the Company or to achieve
expected accretion to our earnings per common share; any loss of
personnel or customers in connection with the acquisition of
Sinqia; any possibility of future catastrophic hurricanes,
earthquakes and other potential natural disasters affecting our
main markets in Latin America, Puerto Rico and the Caribbean; and
the other factors set forth under "Part 1, Item 1A. Risk Factors,"
in the Company’s Annual Report on Form 10-K for the fiscal year
ended December 31, 2023 filed with the Securities and Exchange
Commission (the "SEC") on February 29, 2024, as any such factors
may be updated from time to time in the Company’s filings with the
SEC, including in the Company’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2024, to be filed with the SEC. The
Company undertakes no obligation to release publicly any revisions
to any forward-looking statements, to report events or to report
the occurrence of unanticipated events unless it is required to do
so by law.
EVERTEC, Inc.
Schedule 1: Unaudited
Consolidated Statements of Income and Comprehensive (Loss)
Income
Quarter ended December
31,
Year ended December
31,
(Dollar amounts in thousands, except share
data)
2024
2023
2024
2023
Revenues
$
216,395
$
194,621
$
845,486
$
694,709
Operating costs and expenses
Cost of revenues, exclusive of
depreciation and amortization shown below
103,990
98,607
406,416
336,756
Selling, general and administrative
expenses
37,648
44,338
145,558
128,172
Depreciation and amortization
26,795
29,941
127,846
93,621
Total operating costs and expenses
168,433
172,886
679,820
558,549
Income from operations
47,962
21,735
165,666
136,160
Non-operating income (expenses)
Interest income
3,058
3,350
13,332
8,512
Interest expense
(17,381
)
(15,329
)
(74,733
)
(32,321
)
Loss on foreign currency remeasurement
(2,034
)
(939
)
(5,198
)
(8,276
)
Gain (loss) on foreign currency swap
—
5,160
—
(24,065
)
Earnings of equity method investment
1,032
1,148
4,298
4,976
Other income (loss), net
9,777
(2,387
)
16,261
367
Total non-operating expenses
(5,548
)
(8,997
)
(46,040
)
(50,807
)
Income before income taxes
42,414
12,738
119,626
85,353
Income tax expense
1,747
931
4,847
5,477
Net income
40,667
11,807
114,779
79,876
Less: Net income attributable to
non-controlling interests
605
328
2,159
154
Net income attributable to EVERTEC,
Inc.’s common stockholders
40,062
11,479
112,620
79,722
Other comprehensive (loss) income, net of
tax
Foreign currency translation
adjustments
(77,378
)
28,902
(152,851
)
38,328
Gain (loss) on cash flow hedges
8,481
(7,357
)
(74
)
(3,618
)
Unrealized (loss) income on change in fair
value of debt securities available-for-sale
(3
)
16
(7
)
(15
)
Other comprehensive (loss) income, net of
tax
$
(68,900
)
$
21,561
$
(152,932
)
$
34,695
Total comprehensive (loss) income
attributable to EVERTEC, Inc.’s common stockholders
$
(28,838
)
$
33,040
$
(40,312
)
$
114,417
Net income per common share:
Basic
$
0.63
$
0.18
$
1.75
$
1.23
Diluted
$
0.62
$
0.17
$
1.73
$
1.21
Shares used in computing net income per
common share:
Basic
63,613,215
65,067,316
64,286,725
64,932,114
Diluted
64,650,434
66,273,215
65,077,535
65,814,317
EVERTEC, Inc.
Schedule 2: Unaudited
Consolidated Balance Sheets
(Dollar amounts in thousands, except share
data)
December 31, 2024
December 31, 2023
Assets
Current Assets:
Cash and cash equivalents
$
273,645
$
295,600
Restricted cash
24,594
23,073
Accounts receivable, net
137,501
126,510
Settlement assets
31,942
51,467
Prepaid expenses and other assets
61,383
64,704
Total current assets
529,065
561,354
Debt securities available-for-sale, at
fair value
913
2,095
Equity securities, at fair value
4,976
9,413
Investment in equity investees
29,472
21,145
Property and equipment, net
62,059
62,453
Operating lease right-of-use asset
10,131
14,796
Goodwill
726,901
791,700
Other intangible assets, net
430,885
518,070
Deferred tax asset
33,877
47,847
Derivative asset
4,338
4,385
Other long-term assets
24,994
27,005
Total assets
$
1,857,611
$
2,060,263
Liabilities and stockholders’
equity
Current Liabilities:
Accrued liabilities
$
124,553
$
129,160
Accounts payable
58,729
66,516
Contract liability
25,274
21,055
Income tax payable
8,981
3,402
Current portion of long-term debt
23,867
23,867
Current portion of operating lease
liability
6,229
6,693
Settlement liabilities
32,027
47,620
Total current liabilities
279,660
298,313
Long-term debt
925,062
946,816
Deferred tax liability
44,810
87,916
Contract liability - long term
55,003
41,825
Operating lease liability - long-term
4,924
9,033
Derivative liability
1,351
900
Other long-term liabilities
27,540
40,084
Total liabilities
1,338,350
1,424,887
Redeemable non-controlling interests
43,460
36,968
Stockholders’ equity
Preferred stock, par value $0.01;
2,000,000 shares authorized; none issued
—
—
Common stock, par value $0.01; 206,000,000
shares authorized; 63,614,077 shares issued and outstanding at
December 31, 2024 (December 31, 2023 - 65,450,799)
636
654
Additional paid-in capital
7,003
36,527
Accumulated earnings
599,608
538,903
Accumulated other comprehensive (loss)
income, net of tax
(134,723
)
18,209
Total EVERTEC, Inc. stockholders’
equity
472,524
594,293
Non-controlling interest
3,277
4,115
Total equity
475,801
598,408
Total liabilities and equity
$
1,857,611
$
2,023,295
EVERTEC, Inc.
Schedule 3: Unaudited
Consolidated Statements of Cash Flows
Years ended December
31,
(In thousands)
2024
2023
Cash flows from operating
activities
Net income
$
114,779
$
79,876
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
127,846
93,621
Amortization of debt issue costs and
accretion of discount
4,739
2,307
Operating lease amortization
7,063
6,252
Loss on extinguishment of debt
—
1,433
Deferred tax benefit
(26,726
)
(16,144
)
Share-based compensation
30,275
25,732
Gain from sale of assets
(2,571
)
—
Loss on disposition of property and
equipment and impairment of software
2,603
969
Earnings of equity method investments
(4,298
)
(4,976
)
Dividends received from equity method
investment
3,364
3,497
Loss on foreign currency remeasurement
5,198
8,276
Other, net
(529
)
1,809
(Increase) decrease in assets:
Accounts receivable, net
(11,225
)
(6,850
)
Prepaid expenses and other assets
(865
)
(16,862
)
Other long-term assets
1,288
(5,383
)
(Decrease) increase in liabilities:
Accrued liabilities and accounts
payable
(6,602
)
46,523
Income tax payable
6,199
(6,631
)
Contract liability
14,199
8,074
Operating lease liabilities
(7,359
)
(5,723
)
Other long-term liabilities
2,681
(4,606
)
Total adjustments
145,280
131,318
Net cash provided by operating
activities
260,059
211,194
Cash flows from investing
activities
Additions to software
(63,044
)
(63,524
)
Acquisition of customer relationship
—
—
Acquisitions, net of cash acquired
(34,030
)
(417,566
)
Property and equipment acquired
(25,384
)
(21,452
)
Proceeds from sales of property and
equipment
5
24
Purchase of certificates of deposit
—
—
Proceeds from maturities of
available-for-sale debt securities
1,102
1,048
Acquisition of available-for-sale debt
securities
(793
)
(962
)
Purchase of equity securities
(132
)
—
Investment in equity method investee
(2,000
)
(5,500
)
Sale of investments
5,994
—
Net cash used in investing activities
(118,282
)
(507,932
)
Cash flows from financing
activities
Debt issuance and repricing costs
(1,215
)
(10,481
)
Proceeds from issuance of long-term
debt
—
651,000
Net (decrease) increase in short-term
borrowings
—
(20,000
)
Repayments of short-terms borrowings for
purchase of equipment and software
(2,479
)
(7,175
)
Dividends paid
(12,873
)
(13,025
)
Withholding taxes paid on share-based
compensation
(9,970
)
(5,956
)
Repurchase of common stock
(82,293
)
(36,096
)
Repayment of long-term debt
(23,867
)
(154,280
)
Repayment of other financing agreement
(8,134
)
(717
)
Settlement activity, net
(8,641
)
13,096
Other financing activities, net
(3,088
)
—
Net cash (used in) provided by financing
activities
(152,560
)
416,366
Effect of foreign exchange rate on cash,
cash equivalents and restricted cash
(18,292
)
8,439
Net (decrease) increase in cash, cash
equivalents and restricted cash
(29,075
)
128,067
Cash, cash equivalents, restricted
cash, and cash included in settlement assets at beginning of the
period
343,724
215,657
Cash, cash equivalents, restricted
cash, and cash included in settlement assets at end of the
period
$
314,649
$
343,724
Reconciliation of cash, cash
equivalents, restricted cash, and cash included in settlement
assets
Cash and cash equivalents
$
273,645
$
295,600
Restricted cash
24,594
23,073
Cash and cash equivalents included in
settlement assets
16,410
25,051
Cash, cash equivalents, restricted
cash, and cash included in settlement assets
$
314,649
$
343,724
EVERTEC, Inc.
Schedule 4: Unaudited Segment
Information
Quarter Ended December 31,
2024
(In thousands)
Payment
Services -
Puerto Rico &
Caribbean
Latin America Payments and
Solutions
Merchant
Acquiring, net
Business
Solutions
Total Reportable
Segments
Corporate and Other
(1)
Total
Revenues
$
54,764
$
77,870
$
46,645
$
62,408
$
241,687
$
(25,292
)
$
216,395
Adjusted EBITDA
31,328
25,144
19,937
24,357
100,766
(12,156
)
88,610
__________________
(1)
Corporate and Other consists of corporate
overhead, certain leveraged activities, other non-operating
expenses and intersegment eliminations. Intersegment revenue
eliminations predominantly reflect the $14.4 million processing fee
from Payments Services - Puerto Rico & Caribbean to Merchant
Acquiring, intercompany software developments and transaction
processing of $6.4 million from Latin America Payments and
Solutions to both Payment Services - Puerto Rico & Caribbean
and Business Solutions, and transaction processing and monitoring
fees of $4.4 million from Payment Services - Puerto Rico &
Caribbean to Latin America Payments and Solutions.
Quarter Ended December 31,
2023
(In thousands)
Payment
Services -
Puerto Rico &
Caribbean
Latin America Payments and
Solutions
Merchant
Acquiring, net
Business
Solutions
Total Reportable
Segments
Corporate and Other
(1)
Total
Revenues
$
52,408
$
65,955
$
40,214
$
57,772
$
216,349
$
(21,728
)
$
194,621
Adjusted EBITDA
30,851
18,251
14,423
20,016
83,541
(11,843
)
71,698
____________________
(1)
Corporate and Other consists of corporate
overhead, certain leveraged activities, other non-operating
expenses and intersegment eliminations. Intersegment revenue
eliminations predominantly reflect the $13.0 million processing fee
from Payments Services - Puerto Rico & Caribbean to Merchant
Acquiring, intercompany software developments and transaction
processing of $4.3 million from Latin America Payments and
Solutions to both Payment Services- Puerto Rico & Caribbean and
Business Solutions, and transaction processing and monitoring fees
of $4.4 million from Payment Services - Puerto Rico & Caribbean
to Latin America Payments and Solutions.
Year Ended December 31,
2024
(In thousands)
Payment
Services -
Puerto Rico &
Caribbean
Latin America Payments and
Solutions
Merchant
Acquiring, net
Business
Solutions
Total Reportable
Segments
Corporate and Other
(1)
Total
Revenues
$
214,749
$
302,784
$
180,500
$
243,975
$
942,008
$
(96,522
)
$
845,486
Adjusted EBITDA
121,390
79,681
72,632
102,669
376,372
(36,144
)
340,228
____________________
(1)
Corporate and Other consists of corporate
overhead, certain leveraged activities, other non-operating
expenses and intersegment eliminations. Intersegment revenue
eliminations predominantly reflect the $57.6 million processing fee
from Payments Services - Puerto Rico & Caribbean to Merchant
Acquiring, intercompany software developments and transaction
processing of $21.1 million from Latin America Payments and
Solutions to both Payment Services - Puerto Rico & Caribbean
and Business Solutions, and transaction processing and monitoring
fees of $17.8 million from Payment Services - Puerto Rico &
Caribbean to Latin America Payments and Solutions.
Year Ended December 31,
2023
(In thousands)
Payment
Services -
Puerto Rico &
Caribbean
Latin America Payments and
Solutions
Merchant
Acquiring, net
Business
Solutions
Total Reportable
Segments
Corporate and Other
(1)
Total
Revenues
$
203,232
$
186,503
$
162,366
$
226,960
$
779,061
$
(84,352
)
$
694,709
Adjusted EBITDA
118,266
60,158
60,992
86,880
$
326,296
(34,325
)
291,971
____________________
(1)
Corporate and Other consists of corporate
overhead, certain leveraged activities, other non-operating
expenses and intersegment eliminations. Intersegment revenue
eliminations predominantly reflect the $52.9 million processing fee
from Payments Services - Puerto Rico & Caribbean to Merchant
Acquiring, intercompany software developments and transaction
processing of $17.1 million from Latin America Payments and
Solutions to both Payment Services- Puerto Rico & Caribbean and
Business Solutions, and transaction processing and monitoring fees
of $14.3 million from Payment Services - Puerto Rico &
Caribbean to Latin America Payments and Solutions.
EVERTEC, Inc.
Schedule 5: Reconciliation of
GAAP to Non-GAAP Operating Results
Quarter ended December
31,
Year ended December
31,
(Dollar amounts in thousands, except share
data)
2024
2023
2024
2023
Net income
$
40,667
$
11,807
$
114,779
$
79,876
Income tax expense
1,747
931
4,847
5,477
Interest expense, net
14,323
11,979
61,401
23,809
Depreciation and amortization
26,795
29,941
127,846
93,621
EBITDA
83,532
54,658
308,873
202,783
Equity income(1)
(1,032
)
(1,148
)
(1,270
)
(1,945
)
Compensation and benefits (2)
8,458
7,796
31,644
29,312
Transaction, refinancing and other fees
(3)
(4,382
)
9,453
(4,217
)
53,545
Loss on foreign currency remeasurement
(4)
2,034
939
5,198
8,276
Adjusted EBITDA
88,610
71,698
340,228
291,971
Operating depreciation and amortization
(5)
(15,735
)
(14,648
)
(61,467
)
(52,913
)
Cash interest expense, net (6)
(13,182
)
(12,711
)
(56,931
)
(24,286
)
Income tax expense (7)
(3,073
)
(3,183
)
(6,371
)
(29,038
)
Non-controlling interest (8)
(616
)
(353
)
(2,217
)
(257
)
Adjusted Net Income
$
56,004
$
40,803
$
213,242
$
185,477
Net income per common share (GAAP):
Diluted
$
0.62
$
0.17
$
1.73
$
1.21
Adjusted earnings per common share
(Non-GAAP):
Diluted
$
0.87
$
0.62
$
3.28
$
2.82
Shares used in computing adjusted earnings
per common share:
Diluted
64,650,434
66,273,215
65,077,535
65,814,317
____________________
(1)
Represents the elimination of non-cash
equity earnings from our equity investments, net of dividends
received.
(2)
Primarily represents share-based
compensation and severance payments.
(3)
Represents fees and expenses associated
with corporate transactions as defined in the Credit Agreement,
recorded as part of selling, general and administrative expenses,
the elimination of multi-year non recurring gains recognized in
connection with the sale of tax credits, realized gains from the
change in fair market value of equity securities and the foreign
currency swap loss.
(4)
Represents non-cash unrealized gains
(losses) on foreign currency remeasurement for assets and
liabilities denominated in non-functional currencies.
(5)
Represents operating depreciation and
amortization expense, which excludes amounts generated as a result
of merger and acquisition activity.
(6)
Represents interest expense, less interest
income, as they appear on the consolidated statements of income and
comprehensive income (loss), adjusted to exclude non-cash
amortization of the debt issue costs, premium and accretion of
discount.
(7)
Represents income tax expense calculated
on adjusted pre-tax income using the applicable GAAP tax rate,
adjusted for certain discrete items.
(8)
Represents the non-controlling equity
interests, net of amortization for intangibles created as part of
the purchase.
EVERTEC, Inc.
Schedule 6: Outlook Summary and
Reconciliation to Non-GAAP Adjusted Earnings per Share
Outlook 2024
2024
(Dollar amounts in millions, except per
share data)
Low
High
Revenues
$
889
to
$
899
$
845
Earnings per Share (EPS) (GAAP)
$
1.93
to
$
2.05
$
1.73
Per share adjustment
to reconcile GAAP EPS to Non-GAAP Adjusted EPS:
Share-based comp, non-cash equity earnings
and other (1)
0.88
0.88
0.48
Merger and acquisition related
depreciation and amortization (2)
0.58
0.58
1.02
Non-cash interest expense (3)
0.04
0.04
0.07
Tax effect of non-gaap adjustments (4)
(0.09
)
(0.10
)
(0.02
)
Total adjustments
1.41
1.40
1.55
Adjusted EPS (Non-GAAP)
$
3.34
to
$
3.45
$
3.28
Shares used in computing adjusted earnings
per common share
65.0
65.1
____________________
(1)
Represents share-based compensation, the
elimination of non-cash equity earnings from equity investments,
severance and other adjustments to reconcile GAAP EPS to Non-GAAP
EPS.
(2)
Represents depreciation and amortization
expenses amounts generated as a result of M&A activity.
(3)
Represents non-cash amortization of the
debt issue costs, premium and accretion of discount.
(4)
Represents income tax expense on non-GAAP
adjustments using the applicable GAAP tax rate (anticipated at
approximately 6% to 7%).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250226268717/en/
Investor Contact Beatriz Brown-Sáenz (787) 773-5442
IR@evertecinc.com
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