Evertec 3rd quarter results: Revenue grew 9%
“Following the one-year anniversary of hurricanes Irma and Maria, our third quarter financial results exceeded our expectations and reflect the strong performance of our Puerto Rico business, as well as solid execution and innovation efforts. Based on our third quarter results, and an anticipated robust fourth quarter, we are increasing our annual guidance for 2018,” Mac Schuessler, Evertec’s president and CEO said.
Generally accepted accounting principles (GAAP) net income attributable to common shareholders was $23 million, or $0.31 per diluted share, an increase of $16.9 million or $0.23 per diluted share compared with 2017.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was $52.1 million, an increase of 25% compared with the prior year. “Adjusted EBITDA margin (Adjusted EBITDA as a percentage of total revenues) increased 590 basis points to 46.5% compared with 40.6% in the prior year. The increase in Adjusted EBITDA margin was primarily driven by growth over the hurricane impact in the third quarter of 2017 as well as favorable foreign currency impact of approximately 100 basis points in the quarter,” Evertec said.
Adjusted net income, meanwhile, was $33.6 million, an increase of 38% compared with $24.3 million last year. Adjusted earnings per common share was $0.45, an increase of 36% as compared with $0.33 in the prior year.
According to Evertec, the company is increasing its financial outlook for 2018 as follows:
- Total consolidated revenue between $448 million and $452 million representing growth of 10% to 11%
- Adjusted earnings per common share of $1.79 to $1.83 representing growth of 22% to 24% as compared to $1.47 in 2017
- Capital expenditures ranging between $37 million and $42 million
- Non-GAAP effective tax rate of approximately 13%.
The company was hosting a conference call to discuss its results Tuesday at 4:30 p.m. 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 10110465.
The replay will be available through Nov. 6. 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 can be found on the investor relations website at ir.evertecinc.com and will remain available after the call.