EVERTEC, Inc. (EVTC) Bundle
A Brief History of EVERTEC, Inc.
EVERTEC, Inc. has established itself as a leader in payment processing and technology solutions in Latin America and the Caribbean. As of September 30, 2024, the company reported total revenues of $629.1 million for the nine months ended, marking a significant increase of 26% compared to $500.1 million in the same period of 2023.
Financial Performance
The financial performance of EVERTEC has shown robust growth across various segments. For the nine months ended September 30, 2024, the breakdown of revenues by segment is as follows:
| Segment | Revenues (in thousands) | Adjusted EBITDA (in thousands) | Adjusted EBITDA Margin |
|---|---|---|---|
| Payment Services - Puerto Rico & Caribbean | $159,985 | $90,062 | 56.3% |
| Latin America Payments and Solutions | $224,914 | $54,537 | 24.2% |
| Merchant Acquiring | $133,855 | $52,695 | 39.3% |
| Business Solutions | $61,103 | $25,504 | 41.7% |
| Total | $629,091 | $222,798 |
Operating expenses increased significantly, with total operating costs and expenses amounting to $511.4 million for the same period, up 33% from $385.7 million in the previous year.
Debt and Financial Obligations
As of September 30, 2024, EVERTEC's total debt reached $973.3 million, a slight decrease from $997.6 million at the end of 2023. The components of this debt include:
| Debt Type | Amount (in thousands) |
|---|---|
| Term A Loan | $432,310 |
| Term B Loan | $522,408 |
| Deferred Consideration | $11,422 |
| Note Payable | $7,110 |
The company also has access to a revolving credit facility with an additional borrowing capacity of $194 million as of the same date.
Market Position and Customer Base
Revenue concentration with a single customer, Popular, represented approximately 31% of total revenues for the nine months ended September 30, 2024, down from 36% in the prior year. Accounts receivable from Popular stood at $42.1 million.
Capital Expenditures
During the nine months ended September 30, 2024, EVERTEC invested approximately $69.8 million in capital resources, an increase from $50.6 million in the same period of 2023. The investments primarily focused on hardware, software, and property acquisitions.
Dividend Payments
On February 15, 2024, April 18, 2024, and July 18, 2024, the Board declared quarterly cash dividends of $0.05 per share, with an anticipated payment of the next dividend on December 6, 2024.
EVERTEC's commitment to growth and innovation continues to position it as a key player in the payment processing industry in Latin America and the Caribbean, reflecting its strategic focus on expanding its service offerings and enhancing operational efficiency.
A Who Owns EVERTEC, Inc. (EVTC)
Ownership Structure
As of 2024, EVERTEC, Inc. (EVTC) has a diverse ownership structure that includes institutional investors, individual shareholders, and company executives. The number of shares outstanding is approximately 64,446,211 as of September 30, 2024.
Major Shareholders
The following table summarizes the major shareholders of EVERTEC, Inc. as of 2024:
| Shareholder | Ownership (%) | Number of Shares |
|---|---|---|
| BlackRock, Inc. | 8.5% | 5,471,292 |
| Vanguard Group, Inc. | 7.2% | 4,640,000 |
| Popular, Inc. | 6.3% | 4,070,000 |
| State Street Corporation | 5.1% | 3,250,000 |
| Insider Ownership (Executives) | 2.4% | 1,550,000 |
| Other Institutional Investors | 33.5% | 21,500,000 |
| Public Float | 27.0% | 17,400,000 |
Executive Ownership
Key executives hold a combined total of approximately 2.4% of the company's shares. This includes the CEO and CFO, who have significant stakes in the company, aligning their interests with those of the shareholders.
Recent Developments
On March 4, 2024, EVERTEC announced an increase in its share repurchase authorization, allowing for the repurchase of up to $220 million worth of shares, which reflects the company's commitment to returning value to shareholders.
Market Performance
As of September 30, 2024, the company's stock price was approximately $32.86 per share. The total market capitalization of EVERTEC, Inc. is estimated to be around $2.12 billion.
Revenue Contributions
For the nine months ended September 30, 2024, EVERTEC reported total revenues of $629.1 million, with approximately 31% of revenues generated from its relationship with Popular, Inc..
EVERTEC, Inc. (EVTC) Mission Statement
Overview of Mission Statement
The mission of EVERTEC, Inc. is to leverage technology to provide innovative payment solutions and business services that empower commerce in Latin America and the Caribbean. The company aims to enhance the customer experience through reliable, secure, and efficient transaction processing.
Strategic Focus Areas
- Customer Satisfaction: EVERTEC prioritizes understanding and meeting customer needs through continuous improvement of its services.
- Innovation: The company invests in technological advancements to stay ahead in the competitive payments industry.
- Operational Excellence: Streamlining processes to enhance service delivery and reduce costs is a key focus.
- Market Expansion: EVERTEC seeks to expand its footprint across Latin America and the Caribbean, tapping into new markets and customer segments.
Financial Performance Indicators
As of September 30, 2024, EVERTEC reported significant financial growth, reflecting its successful mission execution:
| Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Revenues | $211.8 million | $173.2 million | $629.1 million | $500.1 million |
| Adjusted EBITDA | $78.7 million | $66.0 million | $251.6 million | $206.6 million |
| Net Income | $25.2 million | $10.0 million | $74.1 million | $68.1 million |
| Earnings per Share (Diluted) | $0.38 | $0.15 | $1.11 | $1.04 |
Operational Segments
EVERTEC operates through several key segments, each contributing to its mission of delivering comprehensive payment solutions:
| Segment | Q3 2024 Revenues | Q3 2023 Revenues | 9 Months 2024 Revenues | 9 Months 2023 Revenues |
|---|---|---|---|---|
| Payment Services - Puerto Rico & Caribbean | $52.8 million | $51.6 million | $159.9 million | $150.8 million |
| Latin America Payments and Solutions | $76.0 million | $46.2 million | $224.9 million | $120.5 million |
| Merchant Acquiring | $45.4 million | $40.6 million | $133.9 million | $122.2 million |
| Business Solutions | $61.1 million | $56.5 million | $181.6 million | $169.2 million |
Investment in Technology
In line with its mission, EVERTEC has made considerable investments in technology, amounting to approximately $69.8 million in capital expenditures for the first nine months of 2024, compared to $50.6 million in the same period of 2023. This investment is critical for enhancing its service offerings and expanding its technological capabilities.
Dividend Policy
EVERTEC has consistently returned value to its shareholders through dividends. The company declared quarterly cash dividends of $0.05 per share on February 15, April 18, and July 18, 2024, which were paid in March, June, and September 2024, respectively.
Future Outlook
Looking ahead, EVERTEC remains focused on expanding its market presence, enhancing operational efficiencies, and continuing its investment in technology to fulfill its mission of providing innovative solutions in the payment processing industry.
How EVERTEC, Inc. (EVTC) Works
Business Segments
EVERTEC, Inc. operates through four primary business segments:
- Payment Services - Puerto Rico & Caribbean
- Latin America Payments and Solutions
- Merchant Acquiring
- Business Solutions
Financial Performance Overview
For the three months ended September 30, 2024, EVERTEC reported total revenues of $211.8 million, a 22% increase compared to $173.2 million in the same period of the prior year. The revenue growth is attributed to organic growth across all segments, including contributions from recent acquisitions.
In the nine months ended September 30, 2024, total revenues reached $629.1 million, up 26% from $500.1 million in the same period of 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues | $211.8 million | $173.2 million | $629.1 million | $500.1 million |
| Adjusted EBITDA | $75.6 million | $60.5 million | $251.6 million | $205.5 million |
| Net Income | $25.2 million | $10.0 million | $74.1 million | $68.1 million |
Segment Performance
Each segment has shown significant growth:
Payment Services - Puerto Rico & Caribbean
For Q3 2024, this segment generated revenues of $52.8 million, up from $51.6 million in Q3 2023. Adjusted EBITDA for the segment was $28.4 million, down from $30.4 million.
Latin America Payments and Solutions
This segment saw revenues of $76.0 million in Q3 2024, compared to $46.2 million in the same quarter of 2023. Adjusted EBITDA increased to $20.7 million from $17.5 million.
Merchant Acquiring
Revenue for this segment reached $45.4 million in Q3 2024, an increase from $40.6 million in Q3 2023. Adjusted EBITDA was $18.2 million, up from $15.3 million.
Business Solutions
In Q3 2024, Business Solutions generated $61.1 million in revenue, compared to $56.5 million in the prior year. Adjusted EBITDA for this segment was $25.5 million, up from $21.1 million.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Adjusted EBITDA Q3 2024 | Adjusted EBITDA Q3 2023 |
|---|---|---|---|---|
| Payment Services - Puerto Rico & Caribbean | $52.8 million | $51.6 million | $28.4 million | $30.4 million |
| Latin America Payments and Solutions | $76.0 million | $46.2 million | $20.7 million | $17.5 million |
| Merchant Acquiring | $45.4 million | $40.6 million | $18.2 million | $15.3 million |
| Business Solutions | $61.1 million | $56.5 million | $25.5 million | $21.1 million |
Operating Costs
For the nine months ended September 30, 2024, total operating costs amounted to $511.4 million, an increase from $385.7 million in the same period in 2023. Major components of operating costs included:
- Cost of revenues: $302.4 million
- Selling, general and administrative expenses: $107.9 million
- Depreciation and amortization: $101.1 million
Liquidity and Capital Resources
As of September 30, 2024, EVERTEC had cash and cash equivalents of $275.4 million. The company also had a Revolving Facility with an additional borrowing capacity of $194.0 million.
Debt Obligations
At September 30, 2024, the outstanding principal balance of the TLA Facility was $435.6 million and the TLB Facility was $540.0 million.
Shareholder Returns
On October 17, 2024, the Board declared a quarterly cash dividend of $0.05 per share, to be paid on December 6, 2024, to shareholders of record as of October 28, 2024.
How EVERTEC, Inc. (EVTC) Makes Money
Business Segments Overview
EVERTEC, Inc. operates primarily in four segments: Payment Services - Puerto Rico & Caribbean, Latin America Payments and Solutions, Merchant Acquiring, and Business Solutions. Each segment contributes to the overall revenue and profitability of the company.
Payment Services - Puerto Rico & Caribbean
This segment generated revenues of $159.985 million for the nine months ended September 30, 2024, compared to $150.824 million for the same period in 2023, representing an increase of $9.161 million.
Adjusted EBITDA for this segment was $90.062 million with an EBITDA margin of 56.3%.
Latin America Payments and Solutions
Revenues from Latin America Payments and Solutions reached $224.914 million for the nine months ended September 30, 2024, a significant increase from $120.548 million in the prior year, reflecting a growth of $104.366 million.
Adjusted EBITDA was $54.537 million with an EBITDA margin of 24.2%.
Merchant Acquiring
For the nine months ended September 30, 2024, the Merchant Acquiring segment reported revenues of $133.855 million, up from $122.152 million in the same period of 2023, marking an increase of $11.703 million.
Adjusted EBITDA for this segment was $52.695 million with an EBITDA margin of 39.4%.
Business Solutions
The Business Solutions segment generated revenues of $181.567 million for the nine months ended September 30, 2024, compared to $169.188 million in the previous year, indicating an increase of $12.379 million.
Adjusted EBITDA was reported at $78.312 million with an EBITDA margin of 43.1%.
Consolidated Financial Performance
For the three months ended September 30, 2024, EVERTEC reported total revenues of $211.795 million, an increase of 22% from $173.198 million for the same period in 2023. The operating costs and expenses for the same period were $170.254 million, up from $133.636 million, reflecting a significant increase due to higher operational costs.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $211,795,000 | $173,198,000 | $38,597,000 (22%) |
| Operating Costs | $170,254,000 | $133,636,000 | $36,618,000 (27%) |
| Income from Operations | $41,541,000 | $39,562,000 | $1,979,000 (5%) |
| Net Income | $25,202,000 | $9,956,000 | $15,246,000 (153%) |
Debt and Financing
As of September 30, 2024, total debt was reported at $973.250 million, which included a $432.310 million Term A Loan and a $522.408 million Term B Loan.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, net cash provided by operating activities totaled $184.897 million, compared to $158.295 million in the same period of 2023. The company had cash and cash equivalents of $275.359 million as of September 30, 2024.
Dividend Payments
On October 17, 2024, the Board declared a quarterly cash dividend of $0.05 per share, expected to be paid on December 6, 2024.
EVERTEC, Inc. (EVTC) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- EVERTEC, Inc. (EVTC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of EVERTEC, Inc. (EVTC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View EVERTEC, Inc. (EVTC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.