EVERTEC Reports First Quarter 2021 Results

Security Services


SAN JUAN, Puerto Rico–(BUSINESS WIRE)–EVERTEC, Inc. (NYSE: EVTC) (“Evertec” or the “Company”) today announced results for the first quarter ended March 31, 2021.

First Quarter 2021 Highlights

  • Revenue increased 14% to $139.5 million
  • GAAP Net Income attributable to common shareholders was $35.5 million or $0.49 per diluted share
  • Adjusted EBITDA increased 22% to $68.9 million
  • Adjusted earnings per common share was $0.62, an increase of 35%
  • Share repurchases totaled $14.3 million

Mac Schuessler, President and Chief Executive Officer stated, “In the first quarter, we delivered strong results as we lapped the one-year anniversary of the pandemic. We benefited from volume growth and continued increase of our digital solutions in Puerto Rico as well as the new client contracts in Latin America. Additionally, as a result of the strong first quarter, the incremental federal stimulus package, as well as the execution against our share repurchase program, we are increasing our outlook for 2021 results.”

First Quarter 2021 Results

Revenue. Total revenue for the quarter ended March 31, 2021 was $139.5 million, an increase of 14% compared with $121.9 million in the prior year. Revenue increase in the quarter reflected sales volume growth with a high average ticket, as well as continued growth in our digital solutions in Puerto Rico. Additionally, revenue growth in Latin America was driven by new client contracts. Revenue growth also includes approximately $1 million in one-time hardware and software sales.

Net Income attributable to common shareholders. For the quarter ended March 31, 2021, GAAP Net Income attributable to common shareholders was $35.5 million, or $0.49 per diluted share, an increase of $13.3 million or $0.19 per diluted share as compared to the prior year.

Adjusted EBITDA. For the quarter ended March 31, 2021, Adjusted EBITDA was $68.9 million, an increase of 22% compared to the prior year. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of total revenues) was 49.4%, an increase of approximately 320 basis points from the prior year. The year over year increase in margin primarily reflects the benefit of higher payment revenues in both Puerto Rico and Latin America while at the same time controlling costs.

Adjusted Net Income. For the quarter ended March 31, 2021, Adjusted Net Income was $45.0 million, an increase of 34% compared with $33.5 million in the prior year. Adjusted earnings per common share was $0.62, an increase of 35% compared to $0.46 in the prior year.

Share Repurchase

During the three months ended March 31, 2021, the Company repurchased 382,974 shares of its common stock at an average price of $37.26 per share for a total of $14.3 million. As of March 31, 2021, a total of approximately $86 million remained available for future use under the Company’s share repurchase program.

2021 Outlook

The Company is increasing its financial outlook for 2021 as follows:

  • Total consolidated revenue is now anticipated between $543 million and $552 million representing growth of 6% to 8%, compared with $533 million to $544 million previously estimated
  • Adjusted earnings per common share between $2.25 to $2.32 representing a growth range of 9% to 12% from $2.07 in 2020, compared with $2.15 to $2.23 previously estimated
  • Capital expenditures are now anticipated to be between $50 and $55 million
  • Effective tax rate of approximately 13% to 14%.

Earnings Conference Call and Audio Webcast

The Company will host a conference call to discuss its first quarter 2021 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 10154680. The replay will be available through Thursday, May 6, 2021. 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 processing business in Puerto Rico, the Caribbean and Latin America, 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 three billion transactions annually. The Company also offers 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 release material 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 interested parties to evaluate companies in the industry. Reconciliations of the non-GAAP measures to the most directly comparable GAAP measure are included in the schedules to this release. These non-GAAP measures include EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per common share and are defined below.

EBITDA is defined as earnings before interest, taxes, depreciation and amortization.

Adjusted EBITDA is defined as EBITDA further adjusted to exclude unusual items and other adjustments. 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 net income adjusted to exclude unusual items and other adjustments.

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…



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