Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMMISSION FILE NUMBER 001-35872 EVERTEC, Inc. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Puerto Rico 66-0783622 (State or other juris ...

[Part I. Financial Information](index=6&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) Condensed Consolidated Balance Sheet Highlights (As of June 30, 2023) | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $393,888 | $389,129 | | **Total Assets** | $1,171,633 | $1,131,743 | | **Total Current Liabilities** | $198,930 | $208,410 | | **Total Liabilities** | $633,491 | $656,995 | | **Total Equity** | $538,142 | $474,748 | Condensed Consolidated Statements of Income Highlights (in thousands) | Metric | Q2 2023 | Q2 2022 | 6 Months 2023 | 6 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $167,076 | $160,571 | $326,890 | $310,819 | | **Income from Operations** | $34,773 | $46,647 | $74,863 | $92,692 | | **Net Income** | $28,050 | $33,556 | $58,113 | $72,422 | | **Diluted EPS** | $0.43 | $0.47 | $0.89 | $1.00 | Condensed Consolidated Statements of Cash Flows Highlights (Six months ended June 30) | Metric | 2023 (in thousands) | 2022 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $126,238 | $129,902 | | **Net cash used in investing activities** | $(58,371) | $(46,192) | | **Net cash used in financing activities** | $(58,623) | $(58,796) | [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents EVERTEC, Inc.'s unaudited condensed consolidated financial statements and notes for Q2 and H1 2023 [Note 2 – Business Acquisition](index=15&type=section&id=Note%202%20%E2%80%93%20Business%20Acquisition) The company acquired paySmart in Brazil for approximately $25 million, expanding its footprint and product offerings - The company acquired 100% of paySmart in Brazil for approximately **$25 million** on February 16, 2023[33](index=33&type=chunk) Preliminary Fair Value of Assets Acquired and Liabilities Assumed (in thousands) | Category | Amount | | :--- | :--- | | Total assets acquired | $79,655 | | Total liabilities assumed | $55,382 | | Preliminary goodwill | $8,292 | [Note 6 – Debt and Short-Term Borrowings](index=18&type=section&id=Note%206%20%E2%80%93%20Debt%20and%20Short-Term%20Borrowings) The company's debt includes a $404.6 million Term Loan Facility and $194.0 million available Revolving Facility, with interest rate swaps mitigating risk - The Term Loan Facility's unpaid principal balance was **$404.6 million** at June 30, 2023, with **$194.0 million** available under the Revolving Facility[48](index=48&type=chunk) Interest Rate Swap Agreements (as of June 30, 2023) | Swap Agreement | Notional Amount | Maturity Date | Fixed Rate | | :--- | :--- | :--- | :--- | | 2018 Swap | $250 million | November 2024 | 2.929% | | 2023 Swap | $250 million | December 2027 | 3.375% | [Note 10 – Revenues](index=21&type=section&id=Note%2010%20%E2%80%93%20Revenues) Revenue disaggregation shows significant concentration with Popular, Inc. (37% in H1 2023) and $944.5 million in remaining performance obligations - Revenue concentration with Popular, Inc. was **37%** of total revenues for the first six months of 2023, down from **42%** in 2022[64](index=64&type=chunk) - The estimated transaction price for remaining performance obligations as of June 30, 2023, is **$944.5 million**, expected over 1 to 6 years[68](index=68&type=chunk) [Note 16 – Segment Information](index=25&type=section&id=Note%2016%20%E2%80%93%20Segment%20Information) The company reports four segments, with Payment Services showing revenue growth in Q2 2023, while Business Solutions declined Segment Revenues (Three Months Ended June 30) | Segment | 2023 (in thousands) | 2022 (in thousands) | | :--- | :--- | :--- | | Payment Services - Puerto Rico & Caribbean | $50,795 | $46,078 | | Payment Services - Latin America | $39,076 | $30,784 | | Merchant Acquiring, net | $41,248 | $38,539 | | Business Solutions | $56,971 | $64,690 | Segment Adjusted EBITDA (Three Months Ended June 30) | Segment | 2023 (in thousands) | 2022 (in thousands) | | :--- | :--- | :--- | | Payment Services - Puerto Rico & Caribbean | $29,183 | $23,875 | | Payment Services - Latin America | $14,060 | $10,234 | | Merchant Acquiring, net | $15,643 | $17,534 | | Business Solutions | $23,374 | $29,835 | [Note 17 – Subsequent Events](index=31&type=section&id=Note%2017%20%E2%80%93%20Subsequent%20Events) Post-quarter, the company declared a $0.05 per share dividend and agreed to acquire Sinqia S.A. in Brazil for $600 million financing - On July 20, 2023, the company entered a Merger Agreement to acquire Sinqia S.A. in Brazil, expected to close in Q4 2023[107](index=107&type=chunk) - The company declared a quarterly cash dividend of **$0.05 per share**, payable on September 1, 2023[106](index=106&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2023 financial results, noting 4% revenue growth, a 25% decline in operating income due to higher SG&A, and the pending Sinqia acquisition Q2 2023 vs Q2 2022 Performance Summary | Metric | Q2 2023 (in thousands) | Q2 2022 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenues** | $167,076 | $160,571 | 4% | | **Cost of Revenues** | $80,452 | $74,313 | 8% | | **SG&A Expenses** | $29,522 | $20,051 | 47% | | **Income from Operations** | $34,773 | $46,647 | (25)% | - The increase in Q2 2023 SG&A expenses was primarily driven by higher professional fees related to corporate transactions and increased personnel costs[129](index=129&type=chunk) - The company's relationship with Popular, Inc. accounted for approximately **37%** of revenues for the six months ended June 30, 2023[116](index=116&type=chunk) - On July 20, 2023, the company agreed to acquire Sinqia S.A. in Brazil, expected to close in Q4 2023, financed by cash and **$600 million** in committed debt[117](index=117&type=chunk)[119](index=119&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from interest rate fluctuations (e.g., 100 bps increase raises annual interest by $2.6 million) and foreign exchange volatility, mitigated by interest rate swaps - A hypothetical **100 basis point** increase in interest rates on variable-rate debt would increase annual interest expense by approximately **$2.6 million**[184](index=184&type=chunk) - The company recognized a non-cash unrealized foreign currency remeasurement loss of **$4.5 million** for H1 2023, compared to a **$0.9 million** gain in the prior-year period[188](index=188&type=chunk) - The company utilizes an interest rate swap agreement to convert a portion of its variable-rate debt to a fixed rate, hedging against interest rate risk[185](index=185&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of the end of the report period[190](index=190&type=chunk) - No material changes occurred during the fiscal quarter affecting the company's internal control over financial reporting[191](index=191&type=chunk) [Part II. Other Information](index=48&type=section&id=Part%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management expects no material adverse effect on financial condition or operations - Management does not expect liabilities from ongoing legal proceedings to have a material adverse effect on the company's financial condition or results of operations[194](index=194&type=chunk) [Item 1A. Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) Updated risk factors highlight challenges and uncertainties related to acquisitions, especially the pending Sinqia merger, including integration difficulties and potential non-completion - The company faces acquisition risks, including integration challenges, management distraction, and business disruption, particularly with the pending Sinqia transaction[197](index=197&type=chunk) - There is no assurance that the Sinqia transaction will be completed or that expected benefits like earnings accretion and revenue synergies will be realized[200](index=200&type=chunk)[202](index=202&type=chunk) - Failure to complete the Sinqia transaction could adversely affect the company's business and stock price due to unrecoverable costs and negative market perception[201](index=201&type=chunk) [Item 2. Issuer Purchases of Equity Securities](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20in%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company repurchased 268,398 shares in Q2 2023 and increased its stock repurchase program authorization to $150 million, extending it to December 31, 2024 Share Repurchases (Q2 2023) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | June 2023 | 268,398 | $35.64 | - The Board increased the stock repurchase program authorization to **$150 million** and extended it to December 31, 2024[203](index=203&type=chunk) [Other Disclosures (Items 3, 4, 5 & 6)](index=49&type=section&id=Items%203%2C%204%2C%205%20%26%206) This section confirms standard corporate disclosures, including no defaults on senior securities, non-applicability of mine safety, no other material information, and a list of filed exhibits - Item 3: No defaults upon senior securities were reported[204](index=204&type=chunk) - Item 4: Mine safety disclosures are not applicable to the company[205](index=205&type=chunk) - Item 6: A list of exhibits filed with the Form 10-Q is included, such as the Merger Agreement for Sinqia and CEO/CFO certifications[209](index=209&type=chunk)

romoros = rotororororororororomoro, oro or Forward-looking Statements Q2 2023 Financial Highlights Adjusted EPS $0.71, increased 6% 4 Increased sales volumes Economic Activity Index was up 1.8% YoY in the month of May Revenue contribution from acquisitions: BBR and paySmart Consolidated Results Q2 2023 (1) Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are compared with prior year recast figures. See Non-GAAP reconciliation summary in appendix, p.19 for current year reconciliation and prior year reca ...

EVERTEC, Inc (NYSE:EVTC) Q2 2023 Earnings Conference Call July 26, 2023 4:30 PM ET Company Participants Beatriz Brown-Sáenz - Investor Relations Mac Schuessler - President and Chief Executive Officer Joaquin Castrillo - Chief Financial Officer Conference Call Participants John Davis - Raymond James Marc Feldman - William Blair Operator Good afternoon, everyone and welcome to EVERTEC’s Second Quarter 2023 Earnings Conference Call. Today’s conference call is being recorded. [Operator Instructions] I would now ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMMISSION FILE NUMBER 001-35872 EVERTEC, Inc. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Puerto Rico 66-0783622 Securities registered pur ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35872 EVERTEC, Inc. (Exact name of registrant as specified in its charter) Puerto Rico 66-0783622 (State or other jurisdiction of incorporation or organization) C ...

EVERTEC, Inc. (NYSE:EVTC) Q3 2022 Results Conference Call November 2, 2022 4:30 PM ET Company Participants Kevin Hunt - IR Mac Schuessler - President and CEO Joaquin Castrillo - CFO Conference Call Participants Jamie Friedman - Susquehanna John Davis - Raymond James Vasu Govil - KBW Jeff Goldstein - Morgan Stanley Chris Kennedy - William Blair Operator Good day, and welcome to the EVERTEC Third Quarter 2022 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today’s pr ...

10 010 ,01040 Third Quarter 2022 Earnings Conference Call 0101010101010 01010401010101010101 0 1 7 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 0 0 1 0 November 2, 2022 evertec. Forward-looking Statements Certain statements in this presentation constitute "forward-looking statements" within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMMISSION FILE NUMBER 001-35872 EVERTEC, Inc. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Puerto Rico 66-0783622 (State or other juris ...

EVERTEC, Inc. (NYSE:EVTC) Q2 2022 Earnings Conference Call August 4, 2022 4:30 PM ET Company Participants Kevin Hunt - IR Mac Schuessler - President and CEO Joaquin Castrillo - CFO Conference Call Participants Bob Napoli - William Blair Vasu Govil - KBW John Davis - Raymond James Jeff Goldstein - Morgan Stanley Jamie Friedman - Susquehanna Operator Good afternoon, everyone, and welcome to the EVERTEC Second Quarter 2022 Earnings Conference Call. Today's conference call is being recorded. At this time, I wou ...