Evertec reports strong reveneue growth, following hurricanes' one-year anniversary

Financial transaction processing service provider Evertec announced results for the third quarter ended September 30, 2018.

“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," said Evertec President and Chief Executive Officer Mac Schuessler.

Third Quarter 2018 and Recent Highlights

• Revenue grew 9% to $112.0 million
• GAAP Net Income attributable to common shareholders was $23.0 million or $0.31 per diluted share
• Adjusted EBITDA increased 25% to $52.1 million
• Adjusted earnings per common share was $0.45, an increase of 36%

Nine-Month Year-to-Date 2018 Highlights

• Revenue grew 9% to $335.6 million
• GAAP Net Income attributable to common shareholders was $66.1 million or $0.89 per diluted share
• Adjusted EBITDA increased 13% to $159.8 million
• Adjusted earnings per common share was $1.38, an increase of 13%

Total revenue for the quarter ended September 30, 2018 was $112.0 million an increase of 9% compared with $102.7 million in the prior year. Revenue increase in the quarter primarily reflected growth over last year's hurricane impacted results as well as the elevated sales volumes in Puerto Rico driven by post-hurricane recovery activity, federal relief and benefit programs.
Net Income attributable to common shareholders. For the quarter ended September 30, 2018, GAAP Net Income attributable to common shareholders was $23.0 million, or $0.31 per diluted share, an increase of $16.9 million or $0.23 per diluted share as compared to the prior year.

For the quarter ended September 30, 2018, Adjusted EBITDA was $52.1 million, an increase of 25% compared to 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.

For the quarter ended September 30, 2018, Adjusted Net Income was $33.6 million, an increase of 38% compared with $24.3 million in the prior year. Adjusted earnings per common share was $0.45, an increase of 36% as compared to $0.33 in the prior year.

2018 Outlook
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%.