Evertec(US:EVTC)2022-11-04 20:01Revenue Performance - Total revenues for the three months ended September 30, 2022, were $145,803, compared to $145,883 for the same period in 2021, reflecting a slight decrease of 0.05%[20] - Total revenues for the nine months ended September 30, 2022, were $456,622,000, compared to $434,559,000 for the same period in 2021, representing a growth of approximately 5.5%[126] - Total revenues for the quarter ended September 30, 2022 were $145.8 million, relatively flat compared to the prior year quarter[143] - Total revenues for the nine months ended September 30, 2022 were $456.6 million, an increase of $22.1 million or 5% compared to the prior year[152] - Revenue from products and services transferred over time for the nine months ended September 30, 2022, was $447.0 million, compared to $428.8 million for the same period in 2021[84] - Revenue concentration with Popular was 35% for the three months and 40% for the nine months ended September 30, 2022, down from 41% and 42% in the comparable periods of 2021[111] Net Income and Earnings - Net income attributable to EVERTEC, Inc.'s common stockholders for the three months ended September 30, 2022, was $137,814, significantly up from $35,314 in the same period of 2021, representing a growth of 289.5%[20] - Net income for the nine months ended September 30, 2022, was $210.2 million, compared to $120.0 million for the same period in 2021, representing a 75.1% increase[26] - Net income for 2022 was $137.739 million, a significant increase from $35.260 million in 2021, representing a growth of approximately 290%[209] - Diluted net income per common share (GAAP) for 2022 was $2.06, up from $0.48 in 2021, representing an increase of approximately 328%[209] - Net income per common share for the three months ended September 30, 2022, was $2.08, compared to $0.49 for the same period in 2021, indicating a substantial increase[20] Operating Costs and Expenses - Operating costs and expenses for the three months ended September 30, 2022, totaled $121,985, an increase of 23.4% from $98,866 in the same period of 2021[20] - Operating costs and expenses for the nine months ended September 30, 2022, were $340,112,000, an increase from $288,251,000 in 2021, reflecting a rise of about 18%[126] - Cost of revenues for the same period increased by $13.3 million or 21% to $76.3 million, primarily due to new revenue sharing agreements and increased personnel costs[144] - Selling, general and administrative expenses rose by $8.9 million or 52% to $26.0 million, driven by increased professional fees related to corporate transactions[145] Cash Flow and Investments - Net cash provided by operating activities was $159.0 million for the nine months ended September 30, 2022, down from $175.9 million in the prior year, a decrease of 9.8%[26] - The company reported a net cash used in investing activities of $106.0 million for the nine months ended September 30, 2022, compared to $60.3 million in the same period of 2021, indicating an increase of 75.9%[26] - Cash and cash equivalents at the end of the period were $224.9 million, down from $244.1 million at the end of the previous year, a decrease of 7.0%[26] - Net cash used in financing activities was $99.5 million, an increase of $25.4 million, mainly due to share repurchases totaling $48.1 million[191] Assets and Liabilities - Total assets as of September 30, 2022, were $1,120,968, a decrease from $1,144,756 as of December 31, 2021[16] - Current liabilities increased to $178,915 as of September 30, 2022, compared to $152,884 as of December 31, 2021, marking a rise of 17.0%[16] - Total liabilities as of September 30, 2022, were $665,713, down from $674,488 as of December 31, 2021[16] - The company’s accumulated earnings as of September 30, 2022, were $480,740, a decrease from $506,051 as of December 31, 2021[16] Shareholder Returns - Cash dividends declared on common stock were $3,338 for the quarter ended June 30, 2022[22] - The company declared quarterly cash dividends of $0.05 per share of common stock on three occasions in 2022, totaling $0.15 per share for the year[106] - The company declared a quarterly cash dividend of $0.05 per share on October 20, 2022, to be paid on December 2, 2022, indicating a commitment to returning value to shareholders[130] Segment Performance - The Payment Services - Puerto Rico & Caribbean segment generated revenues of $44,592 thousand for the three months ended September 30, 2022, compared to $38,773 thousand in the same period of 2021[123] - The Merchant Acquiring segment reported revenues of $36,911 thousand for the three months ended September 30, 2022, compared to $37,606 thousand in the same period of 2021[123] - The Business Solutions segment generated revenues of $49,306 thousand for the three months ended September 30, 2022, compared to $58,134 thousand in the same period of 2021[123] - Payment Services - Latin America segment revenues rose by $6.9 million to $33.7 million for the three months ended September 30, 2022, primarily due to organic growth and revenue from the BBR acquisition[176] Other Financial Metrics - Adjusted EBITDA for the three months ended September 30, 2022, was $52,374 thousand, an increase from $69,770 thousand in the same period of 2021[124] - Adjusted EBITDA for the nine months ended September 30, 2022, was $201,134,000, compared to $218,920,000 in 2021, indicating a decrease of approximately 8.1%[126] - The company reported a provision for expected credit losses of $3.4 million for the nine months ended September 30, 2022, compared to $1.4 million in the prior year, an increase of 136.5%[26] - The company recorded a gain on the sale of a business amounting to $135.6 million, with total consideration for the sale being $184.7 million[44]