Evertec Inc., a prominent financial technology provider in Latin America, Puerto Rico, and the Caribbean, has announced its financial results for the third quarter of 2024. The company continues to build on its robust business model, which incorporates diversified revenue streams and a comprehensive suite of services.

1. Overview of Financial Performance

For the three months ended September 30, 2024, Evertec reported a 22% increase in revenue, totaling $211.8 million compared to $173.1 million in the same quarter of the previous year. This growth highlights the company’s ability to capitalize on increasing transaction volumes and the successful integration of acquisitions.

Key Financial Metrics

Net Income: $24.67 million, up from $10.03 million in Q3 2023.

Adjusted EBITDA: $92.0 million, reflecting strong operational efficiency.

Cost of Revenues: $102.5 million, a 26% increase from the previous year, indicating rising operational costs associated with growth.

Income Statement of Evertec Inc

	Oct 2023	Nov 2024
Net Income	96.95M	84.03M
Net Income to Non-controlling Interest	-174K	1.88M
Profit	96.77M	85.91M
Net Income Continuing	96.77M	85.91M
Income Tax Expense	10.61M	4.03M
Pretax Income	107.3M	89.95M
Non-operating Income	-47.92M	-49.48M
Operating Income	155.3M	139.4M
Revenue	661.8M	823.7M
Costs and Expenses	506.5M	684.2M
Cost of Revenue	315.5M	401.0M
Operating Expenses	191.0M	283.2M
Depreciation, Depletion & Amortization	83.86M	130.9M
Selling, General & Administrative	107.1M	152.2M

2. Segment Performance

Evertec operates through four distinct segments, each contributing to the overall growth of the company:

Payment Services - Puerto Rico & Caribbean

Revenue: Increased by $1.2 million to $52.8 million.

Adjusted EBITDA: Decreased by $2.0 million to $28.4 million.

Latin America Payments and Solutions

Revenue: Jumped by $29.9 million to $76.0 million, driven by the Sinqia acquisition and organic growth.

Adjusted EBITDA: Rose by $3.2 million.

Merchant Acquiring

Revenue: Grew by $4.9 million to $45.4 million.

Adjusted EBITDA: Increased by $2.9 million to $18.2 million.

Business Solutions

Revenue: Up by $4.6 million to $61.1 million.

Adjusted EBITDA: Increased by $4.4 million to $25.5 million.

3. Balance Sheet Strength

As of September 30, 2024, Evertec's balance sheet reflected healthy financial positioning:

Total Assets: $1.89 billion, up from $1.22 billion in Q3 2023.

Total Liabilities: $1.34 billion, with significant long-term debt of $930.8 million.

Total Equity: $506.1 million, demonstrating solid retained earnings and shareholder equity.

Balance Sheet of Evertec Inc

	Oct 2023	Nov 2024
Total Assets	1.22B	1.89B
Total Current Assets	402.3M	533.6M
Cash and Equivalents	177.8M	275.3M
Accounts Receivable	115.8M	131.1M
Restricted Cash and Investments	20.60M	25.66M
Prepaid Expenses	53.37M	64.07M
Other Current Assets	34.75M	37.44M
Total Non-current Assets	819.1M	1.36B
Intangible Assets	654.7M	1.19B
Long-term Investments	48.08M	35.56M
Non-current Deferred Tax Assets	18.28M	32.75M
Net PP&E	56.95M	64.17M
Lease Assets	12.52M	11.32M
Other Non-current Assets	28.53M	23.52M
Total Liabilities and Equity	1.22B	1.89B
Temporary Equity and Redeemable Non-controlling Interest	0	39.77M
Total Liabilities	685.1M	1.34B
Total Current Liabilities	248.7M	270.4M
Accounts Payable and Accrued Liabilities	172.3M	216.0M
Current Debt	32.72M	31.34M
Current Deferred Revenue	14.4M	23M
Other Current Liabilities	29.25M	34K
Total Non-current Liabilities	436.3M	1.07B
Long-term Debt	374.6M	930.8M
Non-current Deferred Revenue	34.1M	56.7M
Non-current Deferred Tax Liabilities	10.82M	45.11M
Other Non-current Liabilities	16.79M	45.93M
Total Equity and Non-controlling Interests	536.3M	506.1M
Total Equity	532.4M	502.6M
Non-controlling Interests	3.93M	3.55M

4. Cash Flow Analysis

Evertec's cash flow statement indicated a net change in cash of -$2.6 million for the quarter, primarily due to substantial investments in technology and infrastructure. The company generated $53.55 million in cash from operating activities, underscoring its operational efficiency despite the net cash outflow.

Cash Flow Statement of Evertec Inc

	Oct 2023	Nov 2024
Net Change in Cash	-28.13M	110.7M
Effect of Exchange Rate Changes	2.92M	-8.87M
Net Cash from Operating Activities	227.8M	245.7M
Operating Profit	96.77M	85.91M
Adjustment to Operating Profit	131.0M	159.8M
Net Cash from Investing Activities	-132.7M	-467.9M
Business & Interest in Affiliates	28.41M	390.5M
Investments	26.50M	-26.77M
Productive Assets	77.92M	104.1M
Other Investing Activities	86K	-30K
Net Cash from Financing Activities	-126.1M	341.8M
Debt	-38.14M	459.4M
Dividends	12.99M	12.98M
Equity Issuance/Repurchase	-47.66M	-94.79M
Other Financing Activities	-27.30M	-9.82M

5. Strategic Acquisitions and Future Outlook

Evertec's growth strategy has been bolstered by recent acquisitions, including Sinqia and paySmart, which have expanded its service offerings and market reach. The company aims to continue investing in technology and partnerships to strengthen its competitive edge in the transaction processing space.

Additionally, Evertec's Board of Directors has approved an increase in the share repurchase program, allowing for up to $220 million in stock buybacks by December 31, 2025, reflecting confidence in the company's long-term value.

6. Conclusion

Evertec Inc. has demonstrated impressive growth in Q3 2024, driven by strong revenue increases across its business segments and effective cost management. The company’s strategic acquisitions and focus on enhancing operational capabilities position it well for continued success in the rapidly evolving financial technology landscape. Investors and stakeholders will be watching closely as Evertec continues to expand its footprint in Latin America and beyond, capitalizing on emerging opportunities in the transaction processing domain.

Original filing: sec.gov