EVERTEC, Inc. (NYSE: EVTC) (“Evertec”, the “Company”, “we” or
“our”) today announced results for the first quarter ended March
31, 2024.
First Quarter 2024 Highlights
- Revenue increased 28% to $205.3 million
- GAAP Net Income attributable to common shareholders decreased
47% to $16.0 million and decreased 48% to $0.24 per diluted
share
- Adjusted EBITDA increased 16% to $78.2 million and Adjusted
earnings per common share increased 4% to $0.72
- Entered into an accelerated share repurchase (ASR) agreement
for $70 million which is expected to be completed in the third
quarter of 2024
Mac Schuessler, President and Chief Executive Officer stated,
“We are pleased with our first quarter results that reflect the
strength of our business in Puerto Rico while we continue to
successfully expand in Latin America."
First Quarter 2024 Results
Revenue. Total revenue for the quarter ended March 31, 2024 was
$205.3 million, an increase of 28% compared with $159.8 million in
the prior year quarter, reflecting the contribution from the Sinqia
acquisition and organic growth across all of the Company's
segments. Strong sales volume growth and an improvement in the
overall spread drove our Merchant acquiring revenue growth.
Payments Puerto Rico revenues benefited from growth in transactions
and ATH Movil Business. Latin America revenue benefited from a full
quarter contribution from the Sinqia acquisition as well as
continued organic growth across the region. Business Solutions
revenue reflected growth across several lines of business.
Net Income attributable to common shareholders. For the quarter
ended March 31, 2024, GAAP Net Income attributable to common
shareholders was $16.0 million, or $0.24 per diluted share, a
decrease of $14.1 million or $0.22 per diluted share as compared to
the prior year. The decrease was driven by an increase in interest
expense resulting from the incremental debt raised to finance the
Sinqia acquisition and an increase in depreciation and amortization
expense. Costs of revenues increased primarily due to the addition
of Sinqia, and, to a lesser extent, increases in cloud services,
professional fees, personnel costs and costs of sales. Selling,
general and administrative expenses increased also mainly due to
the addition of Sinqia, and an increase in personnel costs.
Partially offsetting these negative impacts is a decrease in income
tax expense driven by the higher interest expense resulting from
the incremental debt raised as part of the Sinqia acquisition.
Adjusted EBITDA and Adjusted EBITDA Margin. For the quarter
ended March 31, 2024, Adjusted EBITDA was $78.2 million, an
increase of $11.0 million when compared to the prior year quarter.
Adjusted EBITDA margin (Adjusted EBITDA as a percentage of total
revenues) was 38.1%, a decrease of approximately 390 basis points
from the prior year. The increase in Adjusted EBITDA reflects the
impact from the Sinqia acquisition, which contributes at a lower
margin, leading to the decrease in Adjusted EBITDA margin.
Adjusted Net Income and Adjusted earnings per common share. For
the quarter ended March 31, 2024, Adjusted Net Income was $48.0
million, an increase of $2.4 million compared to $45.6 million in
the prior year. The increase was driven by the higher Adjusted
EBITDA and a non-gaap tax benefit compared with a non-gaap tax
expense in the prior year quarter, partially offset by higher
operating depreciation and amortization resulting from the increase
in capital expenditures in the prior year and higher cash interest
expense, due to the incremental debt raised for the Sinqia
acquisition. Adjusted earnings per common share was $0.72, an
increase of $0.03 per diluted share compared to $0.69, in the prior
year driven by the increase in adjusted net income, partially
offset by a higher share count that reflects the shares issued as
part of the Sinqia acquisition.
Share Repurchase
During the three months ended March 31, 2024, the Company
repurchased 1.5 million shares of its common stock at an average
price of $37.92 per share as part of the Company's ASR.
2024 Outlook
The Company's financial outlook for 2024 is as follows:
- Total consolidated revenue between $846 million and $854
million approximately 22% to 23% growth.
- Adjusted earnings per common share between $2.85 to $2.94
approximately 1% to 4% growth as compared to $2.82 in 2023.
- Capital expenditures are anticipated to be approximately $80
million, including Sinqia.
- Effective tax rate of approximately 6% to 7%.
Earnings Conference Call and Audio Webcast
The Company will host a conference call to discuss its first
quarter 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 7888864. The replay will
be available through Wednesday, May 8, 2024. 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 will be available prior to the
call 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 ability to meet our guidance expectations for
revenue, earnings per share, Adjusted earnings per common share,
capital expenditures and effective tax rate, including for fiscal
year 2023, 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 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 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 prevent a
cybersecurity attack or breach to our information security; the
possibility that we could lose our preferential tax rate in Puerto
Rico; our inability to integrate 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
Sinqia Transaction; any possibility of future catastrophic
hurricanes, earthquakes and other potential natural disasters
affecting our main markets in Latin America 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. 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 Condensed
Consolidated Statements of Income and Comprehensive (Loss)
Income
Three months ended March
31,
2024
2023
(Dollar amounts in thousands, except share
data)
Revenues
$
205,318
$
159,814
Operating costs and expenses
Cost of revenues, exclusive of
depreciation and amortization
102,448
76,417
Selling, general and administrative
expenses
35,626
23,875
Depreciation and amortization
34,441
19,432
Total operating costs and expenses
172,515
119,724
Income from operations
32,803
40,090
Non-operating income (expenses)
Interest income
3,360
1,133
Interest expense
(19,939
)
(5,643
)
Loss on foreign currency remeasurement
(4,456
)
(4,864
)
Earnings of equity method investment
1,071
1,155
Other income, net
3,840
1,010
Total non-operating expenses
(16,124
)
(7,209
)
Income before income taxes
16,679
32,881
Income tax expense
292
2,818
Net income
16,387
30,063
Less: Net income attributable to
non-controlling interest
408
11
Net income attributable to EVERTEC, Inc.’s
common stockholders
15,979
30,052
Other comprehensive (loss) income, net of
tax
Foreign currency translation
adjustments
(26,476
)
17,605
Gain (loss) on cash flow hedges
2,348
(1,545
)
Unrealized loss on change in fair value of
debt securities available-for-sale
(3
)
(20
)
Other comprehensive (loss) income, net of
tax
$
(24,131
)
$
16,040
Total comprehensive (loss) income
attributable to EVERTEC, Inc.’s common stockholders
$
(8,152
)
$
46,092
Net income per common share:
Basic
0.25
$
0.46
Diluted
$
0.24
$
0.46
Shares used in computing net income per
common share:
Basic
65,179,965
64,968,298
Diluted
66,336,679
65,608,618
EVERTEC, Inc. Schedule 2: Unaudited Condensed
Consolidated Balance Sheets
(In thousands)
March 31, 2024
December 31, 2023
Assets
Current Assets:
Cash and cash equivalents
$
293,666
$
295,600
Restricted cash
23,597
23,073
Accounts receivable, net
141,332
126,510
Settlement assets
42,068
51,467
Prepaid expenses and other assets
62,336
64,704
Total current assets
562,999
561,354
Debt securities available-for-sale, at
fair value
2,093
2,095
Equity securities, at fair value
10,843
9,413
Investment in equity investee
21,859
21,145
Property and equipment, net
60,777
62,453
Operating lease right-of-use asset
14,824
14,796
Goodwill
777,932
791,700
Other intangible assets, net
490,188
518,070
Deferred tax asset
19,879
47,847
Derivative asset
6,962
4,385
Other long-term assets
28,130
27,005
Total assets
$
1,996,486
$
2,060,263
Liabilities and stockholders’
equity
Current Liabilities:
Accrued liabilities
$
116,977
$
129,160
Accounts payable
66,629
66,516
Contract liability
18,938
21,055
Income tax payable
—
3,402
Current portion of long-term debt
23,867
23,867
Short-term borrowings
80,000
—
Current portion of operating lease
liability
7,575
6,693
Settlement liabilities
40,446
47,620
Total current liabilities
354,432
298,313
Long-term debt
941,717
946,816
Deferred tax liability
53,576
87,916
Contract liability - long term
52,062
41,825
Operating lease liability - long-term
8,686
9,033
Other long-term liabilities
34,116
40,984
Total liabilities
1,444,589
1,424,887
Commitments and contingencies
Redeemable non-controlling interests
40,658
36,968
Stockholders’ equity
Common stock, par value $0.01; 206,000,000
shares authorized; 64,408,959 shares issued and outstanding as of
March 31, 2024 (December 31, 2023 - 65,450,799)
644
654
Additional paid-in capital
—
36,527
Accumulated earnings
512,535
538,903
Accumulated other comprehensive (loss)
income, net of tax
(5,922
)
18,209
Total stockholders’ equity
507,257
594,293
Non-redeemable non-controlling
interest
3,982
4,115
Total equity
511,239
598,408
Total liabilities and equity
$
1,996,486
$
2,060,263
EVERTEC, Inc. Schedule 3: Unaudited Condensed
Consolidated Statements of Cash Flows
Three months ended March
31,
2024
2023
Cash flows from operating
activities
Net income
16,387
$
30,063
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
34,441
19,432
Amortization of debt issue costs and
accretion of discount
1,874
396
Operating lease amortization
1,810
1,626
Unrealized gain on change in fair value of
equity securities
(2,325
)
—
Deferred tax benefit
(5,720
)
(2,208
)
Share-based compensation
7,349
5,557
Earnings of equity method investment
(1,071
)
(1,155
)
Loss on foreign currency remeasurement
4,456
4,864
Other, net
797
2,530
(Increase) decrease in assets:
Accounts receivable, net
(14,756
)
10,044
Prepaid expenses and other assets
130
(5,388
)
Other long-term assets
(1,484
)
(261
)
Increase (decrease) in liabilities:
Accrued liabilities and accounts
payable
(11,031
)
(13,417
)
Income tax payable
(3,347
)
(639
)
Contract liability
8,721
3,089
Operating lease liabilities
(4
)
310
Other long-term liabilities
(252
)
(332
)
Total adjustments
19,588
24,448
Net cash provided by operating
activities
35,975
54,511
Cash flows from investing
activities
Additions to software
(16,494
)
(9,257
)
Property and equipment acquired
(5,389
)
(4,063
)
Purchase of equity securities
(111
)
—
Acquisitions, net of cash acquired
—
(23,317
)
Net cash used in investing activities
(21,994
)
(36,637
)
Cash flows from financing
activities
Withholding taxes paid on share-based
compensation
(9,756
)
(5,874
)
Net increase (decrease) in short-term
borrowings
80,000
(20,000
)
Dividends paid to noncontrolling interest
holders
(1,142
)
—
Dividends paid
(3,273
)
(3,249
)
Repurchase of common stock
(70,000
)
(6,269
)
Repayment of long-term debt
(5,967
)
(5,187
)
Repayment of other financing agreement
(6,212
)
—
Net cash used in financing activities
(16,350
)
(40,579
)
Effect of foreign exchange rate on cash,
cash equivalents and restricted cash
(3,768
)
(275
)
Net increase in cash, cash equivalents
and restricted cash
(6,137
)
(22,980
)
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
$
337,587
$
192,677
Reconciliation of cash, cash
equivalents, restricted cash, and cash included in settlement
assets
Cash and cash equivalents
293,666
173,662
Restricted cash
23,597
19,015
Cash and cash equivalents included in
settlement assets
20,324
59,461
Cash, cash equivalents, restricted
cash, and cash included in settlement assets
$
337,587
$
252,138
EVERTEC, Inc. Schedule 4: Unaudited Segment
Information
Three Months Ended March 31,
2024
(In thousands)
Payment Services -
Puerto Rico & Caribbean
Latin America Payments and
Solutions
Merchant Acquiring,
net
Business
Solutions
Corporate and Other
(1)
Total
Revenues
$
53,031
$
74,216
$
43,099
$
58,128
$
(23,156
)
$
205,318
Operating costs and expenses
30,952
76,031
28,819
40,451
(3,738
)
172,515
Depreciation and amortization
7,262
16,257
1,233
4,438
5,251
34,441
Non-operating income (expenses)
148
(1,165
)
—
139
1,333
455
EBITDA
29,489
13,277
15,513
22,254
(12,834
)
67,699
Compensation and benefits (2)
698
1,498
707
785
4,302
7,990
Transaction, refinancing and other fees
(3)
267
(3,029
)
—
—
794
(1,968
)
(Gain) loss on foreign currency
remeasurement (4)
(102
)
4,551
—
—
7
4,456
Adjusted EBITDA
$
30,352
$
16,297
$
16,220
$
23,039
$
(7,731
)
$
78,177
__________________________________ (1)
Corporate and Other consists of corporate
overhead, certain leveraged activities, other non-operating
expenses and intersegment eliminations. Intersegment revenue
eliminations predominantly reflect the $14.6 million processing fee
from Payments Services - Puerto Rico & Caribbean to Merchant
Acquiring, intercompany software developments and
transaction-processing of $4.1 million from Latin America Payments
and Solutions to both Payment Services- Puerto Rico & Caribbean
and Business Solutions, and transaction-processing and monitoring
fees of $4.5 million from Payment Services - Puerto Rico &
Caribbean to Latin America Payments and Solutions.
(2)
Primarily represents share-based
compensation and severance payments.
(3)
Primarily represents fees and expenses
associated with corporate transactions as defined in the Credit
Agreement, the elimination of unrealized gains from equity
securities and the elimination of unrealized earnings from equity
investments.
(4)
Represents non-cash unrealized gains
(losses) on foreign currency remeasurement for assets and
liabilities denominated in non-functional currencies.
Three Months Ended March 31,
2023
(In thousands)
Payment Services -
Puerto Rico & Caribbean
Latin America Payments and
Solutions
Merchant Acquiring,
net
Business
Solutions
Corporate and Other
(1)
Total
Revenues
$
48,429
$
35,317
$
40,347
$
55,695
$
(19,974
)
$
159,814
Operating costs and expenses
27,722
29,312
26,689
38,913
(2,912
)
119,724
Depreciation and amortization
5,888
2,711
1,129
4,488
5,216
19,432
Non-operating income (expenses)
365
(3,785
)
307
532
(118
)
(2,699
)
EBITDA
26,960
4,931
15,094
21,802
(11,964
)
56,823
Compensation and benefits (2)
528
652
532
565
3,568
5,845
Transaction, refinancing and other (3)
292
—
—
—
(689
)
(397
)
Loss (gain) on foreign currency
remeasurement (4)
95
4,772
—
—
(3
)
4,864
Adjusted EBITDA
$
27,875
$
10,355
$
15,626
$
22,367
$
(9,088
)
$
67,135
__________________________________
(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 $4.0 million from Latin America Payments
and Solutions to both Payment Services- Puerto Rico & Caribbean
and Business Solutions, and transaction-processing and monitoring
fees of $2.9 million from Payment Services - Puerto Rico &
Caribbean to Latin America Payments and Solutions.
(2)
Primarily represents share-based
compensation and severance payments.
(3)
Primarily represents fees and expenses
associated with corporate transactions as defined in the Credit
Agreement, and the elimination of unrealized earnings from equity
investments.
(4)
Represents non-cash unrealized gains
(losses) on foreign currency remeasurement for assets and
liabilities denominated in non-functional currencies.
EVERTEC, Inc. Schedule 5: Reconciliation of
GAAP to Non-GAAP Operating Results
Three months ended March
31,
(Dollar amounts in thousands, except share
data)
2024
2023
Net income
16,387
30,063
Income tax expense
292
2,818
Interest expense, net
16,579
4,510
Depreciation and amortization
34,441
19,432
EBITDA
67,699
56,823
Equity income (1)
(1,071
)
(1,155
)
Compensation and benefits (2)
7,990
5,845
Transaction, refinancing and other (3)
(897
)
758
Loss on foreign currency remeasurement
(4)
4,456
4,864
Adjusted EBITDA
78,177
67,135
Operating depreciation and amortization
(5)
(14,795
)
(12,369
)
Cash interest expense, net (6)
(15,419
)
(4,363
)
Income tax benefit (expense) (7)
462
(4,782
)
Non-controlling interest (8)
(421
)
(34
)
Adjusted net income
$
48,004
$
45,587
Net income per common share
(GAAP):
Diluted
$
0.24
$
0.46
Adjusted Earnings per common share
(Non-GAAP):
Diluted
$
0.72
$
0.69
Shares used in computing adjusted earnings
per common share:
Diluted
66,336,679
65,608,618
__________________________________ 1)
Represents the elimination of non-cash
equity earnings from our equity investments.
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
and the elimination of unrealized gains from the change in fair
market value of equity securities.
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 condensed consolidated statements of
income and comprehensive (loss) income, 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 Common Share
Outlook 2024
2023
(Dollar amounts in millions, except per
share data)
Low
High
Revenues
$
846
to
$
854
$
695
Earnings per Share (EPS) (GAAP)
$
1.46
to
$
1.60
$
1.21
Per share adjustment
to reconcile GAAP EPS to Non-GAAP Adjusted EPS:
Share-based comp, non-cash equity earnings
and other (1)
0.77
0.77
1.36
Merger and acquisition related
depreciation and amortization (2)
0.71
0.69
0.62
Non-cash interest expense (3)
0.05
0.04
(0.01
)
Tax effect of non-gaap adjustments (4)
(0.09
)
(0.10
)
(0.36
)
Non-controlling interest (5)
(0.05
)
(0.06
)
—
Total adjustments
1.39
1.34
1.61
Adjusted EPS (Non-GAAP)
$
2.85
to
$
2.94
$
2.82
Shares used in computing adjusted earnings
per common share
65.8
65.8
_______________________ (1)
Represents share-based compensation, the
elimination of non-cash equity earnings from equity investees,
non-cash unrealized gains (losses) on foreign currency
remeasurement for assets and liabilities denominated in
non-functional currencies, 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%).
(5)
Represents the non-controlling equity
interests, net of amortization for intangibles created as part of
the purchase.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240501750063/en/
Investor Beatriz Brown-Sáenz (787) 773-5442
IR@evertecinc.com
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