Evertec(EVTC) - 2024 Q3 - Quarterly Report

Financial Performance - Revenues for Q3 2024 reached $211.8 million, a 22.3$173.2 million in Q3 2023[14] - Net income for Q3 2024 was $25.2 million, compared to$10.0 million in Q3 2023, representing a 152.5% increase[14] - The company reported a net income attributable to common stockholders of $24.7 million for Q3 2024, compared to$10.0 million in Q3 2023[14] - The company reported a net income of $25,202,000 for the three months ended September 30, 2024, compared to$9,956,000 for the same period in 2023[109] - Net income for the nine months ended September 30, 2024, was $74,112, compared to$68,069 for the same period in 2023, representing an increase of 4.9%[18] - Adjusted net income for the nine months ended September 30, 2024 was $157.2 million, compared to$144.7 million for the same period in 2023[190] Operating Costs - Operating costs for Q3 2024 totaled $170.3 million, up from$133.6 million in Q3 2023, reflecting a 27.5% increase[14] - Total operating costs and expenses for the three months ended September 30, 2023, were $133,636,000, compared to$511,387,000 for the nine months ended September 30, 2024[104][107] - Operating costs and expenses for the nine months ended September 30, 2024, rose by 33% to $511.4 million, up from$385.7 million in the prior year[138] Cash and Assets - Cash and cash equivalents were $275.4 million as of September 30, 2024, down from$295.6 million at the end of 2023[11] - Total assets decreased to $1.89 billion as of September 30, 2024, down from$2.06 billion at the end of 2023[11] - The company’s cash, cash equivalents, and restricted cash at the end of the period totaled $326,282, compared to$215,546 at the end of the same period in 2023, reflecting a growth of 51.5%[18] - As of September 30, 2024, the company had cash and cash equivalents of $275.4 million, with$214.0 million held in subsidiaries outside of Puerto Rico[164] Shareholder Equity and Dividends - The company’s total stockholders' equity decreased to $502.6 million as of September 30, 2024, from$594.3 million at the end of 2023[11] - Cash dividends declared on common stock were $3,199,000, maintaining a rate of$0.05 per share[15] - The company declared quarterly cash dividends of $0.05 per share on February 15, April 18, and July 18, 2024, with payments made to stockholders on March 15, June 7, and September 6, 2024[93] Debt and Financing - Total liabilities decreased to$1.35 billion as of September 30, 2024, compared to $1.42 billion at the end of 2023[11] - The unpaid principal balance of the TLA Facility and TLB Facility at September 30, 2024, was$435.6 million and $540.0 million, respectively[41] - The Company prepaid$60 million of the outstanding balance on the TLB facility in the fourth quarter of 2023[40] - The Company has four interest rate swap agreements with a total notional amount of 600 million, converting variable interest payments to fixed rates[179] Revenue Segments - The company operates in four business segments: Payment Services - Puerto Rico & Caribbean, Latin America Payments and Solutions, Merchant Acquiring, and Business Solutions, each contributing to overall revenue growth[95] - Payment Services - Puerto Rico & Caribbean segment revenues increased by 1.2 million to $52.8 million for the three months ended September 30, 2024, driven by growth from ATH Movil and increased POS transactions[153] - Latin America Payments and Solutions segment revenues rose by$29.9 million to $76.0 million for the three months ended September 30, 2024, benefiting from the Sinqia acquisition and organic growth[154] - Merchant Acquiring segment revenues increased by$4.9 million to $45.4 million for the three months ended September 30, 2024, primarily due to improved spread and sales volume growth[156] - Business Solutions segment revenues grew by$4.6 million to $61.1 million for the three months ended September 30, 2024, driven by completed projects[157] Tax and Compliance - The current tax provision for the three months ended September 30, 2024, was$8.7 million, compared to $8.2 million for the same period in 2023, reflecting an increase of approximately 6$2.7 million in the next 12 months due to the expiration of the statute of limitations[89] Acquisitions and Growth - On October 31, 2024, the company acquired 100% of Grandata, Inc., enhancing its product offerings in data analytics[114] - The Sinqia acquisition contributed to revenue growth in Latin America, alongside better-than-expected volumes in the GetNet Chile relationship, resulting in a one-time revenue recognition of $1.8 million[132] - The ongoing shift from cash to electronic payments presents significant growth opportunities in Latin America and the Caribbean, where penetration remains lower than in the U.S.[126] Miscellaneous - The company processed over six billion transactions annually through its electronic payment networks in Puerto Rico and Latin America[118] - The company has increased its share repurchase authorization to allow for up to$220 million in stock repurchases by December 31, 2025[124] - The company recognized $22.4 million in share-based compensation expense for the nine months ended September 30, 2024, compared to$18.8 million for the same period in 2023[68]