Earnings Performance - Evertec reported quarterly earnings of $0.87 per share, exceeding the Zacks Consensus Estimate of $0.81 per share, and up from $0.72 per share a year ago, representing an earnings surprise of 7.41% [1] - The company has surpassed consensus EPS estimates for four consecutive quarters [2] Revenue Performance - Evertec posted revenues of $228.79 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.88%, and up from $205.32 million year-over-year [2] - The company has also topped consensus revenue estimates for four consecutive quarters [2] Stock Performance and Outlook - Evertec shares have declined approximately 0.1% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.89 on revenues of $224.81 million, and for the current fiscal year, it is $3.41 on revenues of $893.96 million [7] Industry Context - The Financial Transaction Services industry, to which Evertec belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

EVERTEC (EVTC) Q1 2025 Earnings Call May 07, 2025 04:30 PM ET Company Participants Beatriz Brown-Sáenz - Reporting & IR ManagerMorgan M. Schuessler - President, CEO & DirectorJoaquin Castrillo-Salgado - Executive VP, Treasurer & CFOVasundhara Govil - Managing DirectorJohn Davis - Managing Director Conference Call Participants Cristopher Kennedy - Research Analyst, Financial Services and TechnologyJamie Friedman - Senior FinTech and IT Services Research Analyst Operator Good day, everybody, and welcome to th ...

EVERTEC (EVTC) Q1 2025 Earnings Call May 07, 2025 04:30 PM ET Speaker0 Good day, everybody, and welcome to the EVERTEC First Quarter twenty twenty five Earnings Call. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note that today's event is being recorded. I would now like to turn the conference over to Beatrice Brown from Investor Relations. Please go ahead. Speaker1 Thank you, and good afternoon. With me today are Max Schue ...

This presentation will reference certain non-GAAP financial information. For a description and reconciliation of non-GAAP measures presented in this document, please see the appendix attached to this presentation or visit the Investor Relations section of the Evertec website at www.evertecinc.com. Business Summary Mac Schuessler, President and CEO First Quarter Earnings Conference call May 7, 2025 Foward looking statements Certain statements in this presentation constitute "forward-looking statements" withi ...

Exhibit 99.1 EVERTEC REPORTS FIRST QUARTER 2025 RESULTS Raises full year outlook SAN JUAN, PUERTO RICO – May 7, 2025 – EVERTEC, Inc. (NYSE: EVTC) ("Evertec" or the "Company") today announced results for the first quarter ended March 31, 2025. First Quarter 2025 Highlights and Recent Highlights Mac Schuessler, President and Chief Executive Officer stated "We are pleased to report another quarter of strong revenue and earnings growth, which demonstrates our continued focus on sustainable execution. Given our ...

Core Viewpoint - Investors in the Financial Transaction Services sector should consider Evertec (EVTC) and Visa (V) as potential value opportunities, with a current analysis suggesting that EVTC presents a better value option based on various valuation metrics [1][7]. Valuation Metrics - Both EVTC and V have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3]. - EVTC has a forward P/E ratio of 11.12, significantly lower than V's forward P/E of 31.22, suggesting that EVTC may be undervalued relative to its earnings potential [5]. - The PEG ratio for EVTC is 1.77, while V's PEG ratio is 2.33, indicating that EVTC has a more favorable valuation when considering expected earnings growth [5]. - EVTC's P/B ratio stands at 5.06, compared to V's P/B of 17.52, further supporting the argument that EVTC is a more attractive value stock [6]. Value Grades - Based on the aforementioned metrics, EVTC has earned a Value grade of A, while V has received a Value grade of D, highlighting the relative undervaluation of EVTC [6].

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to ...

Financial Performance and Growth - The company reported a significant reliance on its relationship with Popular, Inc., which contributes a substantial portion of its revenues under the Amended and Restated Master Services Agreement[13] - The company anticipates future growth driven by international expansion and increased capital expenditures, with a focus on enhancing its market position[11] - The company is focused on renewing client contracts on favorable terms to ensure continued revenue growth[13] Technology and Innovation - The company is actively investing in artificial intelligence and machine learning technologies to improve operational efficiency and adapt to evolving regulatory frameworks[13] Risk Management - The company faces risks related to cybersecurity, including potential data breaches that could adversely affect operations[13] - The geographical concentration of the company's business in Puerto Rico presents challenges due to fiscal issues and potential natural disasters impacting government contracts[13] - The company's leverage may limit its ability to raise additional capital and react to economic changes, exposing it to interest rate risk[18] - The company is monitoring foreign exchange fluctuations and capital controls that could impact its costs and earnings[13] Strategic Initiatives - The company is exploring strategic acquisitions, including the anticipated benefits from its merger with Sinqia, which may enhance its service offerings[13] - The company has implemented a stock repurchase plan, which is expected to influence the value of its common stock positively[13] Compliance and Market Position - The company is committed to maintaining compliance with existing and future regulations in the jurisdictions where it operates[13] - Industry data in the report is based on reliable sources, including the 2025 World Payments Report, and management's estimates of market share and position[20] - The company's market share and expectations involve risks and uncertainties, subject to change based on various factors[20]

Financial Data and Key Metrics Changes - Total revenue for 2024 was $845.5 million, a 22% increase year-over-year [8] - Adjusted EBITDA was $340.2 million, up approximately 17% year-over-year, with an adjusted EBITDA margin of 40.2% [10][26] - Adjusted EPS was $3.28, an increase of 16% from the previous year [11][27] - Operating cash flows for the year were approximately $260 million, with $95 million returned to shareholders through share repurchases and dividends [12][39] Business Line Data and Key Metrics Changes - Merchant Acquiring revenue grew by 11% due to pricing initiatives and increased sales volume [9] - Payments Puerto Rico revenue increased by 6%, driven by higher transaction volumes and strong performance from ATH Movil [9] - Business Solutions revenue grew by 7%, attributed to key projects recognized throughout the year [9] - LATAM revenue surged by 62% year-over-year, primarily due to the full-year contribution from Sinqia and organic growth [10][17] Market Data and Key Metrics Changes - Economic conditions in Puerto Rico remained stable, with total employment at its highest since 2009 [13] - Passenger traffic at San Juan Airport grew approximately 9% year-over-year [14] - Puerto Rico received approximately $7 billion in reconstruction funds in 2024, with a similar amount expected for 2025 [16] Company Strategy and Development Direction - The company aims to focus on organic revenue growth, margin optimization, and capital allocation in 2025 [7] - Continued execution of acquisition strategy with two tuck-in deals closed in Q4 2024 [6] - The company is diversifying its revenue mix outside of Puerto Rico, with LATAM contributing approximately 33% of total revenue in 2024 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about economic conditions in Puerto Rico supporting business growth in 2025 [16] - The company anticipates revenue growth of 5.1% to 6.3% for 2025, with adjusted EPS expected to grow between 1.8% and 5.2% [42][43] - Management is confident in navigating the upcoming 10% discount on services starting in October 2025 through cost efficiencies [72] Other Important Information - The company generated a strong liquidity position of approximately $468 million as of December 31, 2024 [12][41] - The net debt position at year-end was $706.8 million, with a weighted average interest rate of approximately 6.45% [40][41] Q&A Session Summary Question: Can you provide midterm guidance for future growth? - Management is currently focused on providing guidance for 2025 due to several moving pieces and changes within the company [56] Question: What is the expected performance of Sinqia in 2025? - Management is optimistic about Sinqia's growth reacceleration, focusing on technology upgrades and customer engagement [63] Question: How is the integration of EVERTEC's processing business into Brazil progressing? - Management is seeing reacceleration in existing businesses and is optimistic about future payment product interest [70] Question: What was the contribution from pricing in the Merchant segment? - The growth in the Merchant segment was approximately one-third from pricing, one-third from volume, and one-third from non-transactional fees [90] Question: What is the state of the M&A market in Latin America? - Management has a good M&A pipeline and is focused on diversifying the company through smart deals [94]

Financial Data and Key Metrics Changes - Total revenue for 2024 was $845.5 million, a 22% increase year-over-year [8][25] - Adjusted EBITDA was $340.2 million, up approximately 17% year-over-year, with an adjusted EBITDA margin of 40.2% [10][26] - Adjusted EPS was $3.28, reflecting a 16% increase from the previous year [11][27] - Operating cash flows generated were approximately $260 million, with $95 million returned to shareholders through share repurchases and dividends [12][39] Business Line Data and Key Metrics Changes - Merchant Acquiring revenue grew by 11% due to pricing initiatives and increased sales volume [9] - Payments Puerto Rico revenue increased by 6%, driven by higher transaction volumes and strong performance from ATH Movil [9] - Business Solutions revenue grew by 7%, recognized from key projects that went into production [9] - LATAM revenue surged by 62% year-over-year, attributed to the full-year contribution of Sinqia and organic growth [10][17] Market Data and Key Metrics Changes - Economic conditions in Puerto Rico remained stable, with total employment at its highest since 2009 [13][14] - Passenger traffic at San Juan Airport grew approximately 9% year-over-year [15] - Puerto Rico received approximately $7 billion in reconstruction funds in 2024, with a similar amount expected for 2025 [16] Company Strategy and Development Direction - The company aims to focus on organic revenue growth, margin optimization, and capital allocation in 2025 [7] - Continued execution of acquisition strategy with two tuck-in deals closed in Q4, Grandata and Nubity [6] - The company is diversifying its revenue mix outside of Puerto Rico, with LATAM contributing approximately 33% of total revenue in 2024 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about economic conditions in Puerto Rico supporting business growth through 2025 [16] - The company is focused on cost efficiency measures to offset a 10% discount on Popular services starting in Q4 2025 [11][47] - Management expects revenue growth for 2025 to be between $889 million to $899 million, reflecting a growth of 5.1% to 6.3% [42] Other Important Information - The company has a strong liquidity position of approximately $468 million as of December 31, 2024 [12][41] - The net debt position at year-end was $706.8 million, with a weighted average interest rate of approximately 6.45% [40][41] - Capital expenditures for 2024 were $88.4 million, with a target of approximately $85 million for 2025 [39][50] Q&A Session Summary Question: Thoughts on midterm guidance for growth profiles of segments - Management is currently focused on providing guidance for 2025 due to ongoing changes and integration efforts [54][56] Question: Update on Sinqia's growth and performance - Management noted that Sinqia's growth is reaccelerating, with a focus on technology upgrades and customer engagement [58][63] Question: Update on bringing EVERTEC's processing business into Brazil - Management is optimistic about small successes in payment products and is focused on improving existing businesses [68][70] Question: Contribution from pricing in Merchant segment growth - Pricing contributed approximately one-third to the growth, with expectations for a balanced contribution moving into 2025 [90][91] Question: State of the M&A market in Latin America - Management indicated a good M&A pipeline and a focus on smart deals for growth and diversification [92][94]