Evertec(EVTC) - 2024 Q4 - Annual Report

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]