Evertec(US:EVTC)2025-05-08 10:19Financial Performance - Revenues for Q1 2025 were $228,792 thousand, an increase of 11.4% compared to $205,318 thousand in Q1 2024[19] - Net income attributable to EVERTEC, Inc.'s common stockholders for Q1 2025 was $32,703 thousand, up 104.3% from $15,979 thousand in Q1 2024[19] - Operating income for Q1 2025 was $49,500 thousand, representing a 50.8% increase from $32,803 thousand in Q1 2024[19] - Net income for Q1 2025 was $33,091,000, compared to $16,387,000 in Q1 2024, representing a 102% increase[23] - Net income per common share - basic for Q1 2025 was $0.51, compared to $0.25 in Q1 2024, reflecting a 104% increase[19] - Segment Adjusted EBITDA for the three months ended March 31, 2025, was $98.903 million, compared to $85.908 million for the same period in 2024, reflecting a growth of about 15.1%[108] Assets and Liabilities - Total assets increased to $1,917,501 thousand as of March 31, 2025, compared to $1,857,611 thousand at the end of 2024, reflecting a growth of 3.2%[18] - The total liabilities decreased slightly to $1,332,385 thousand as of March 31, 2025, from $1,338,350 thousand at the end of 2024[18] - As of March 31, 2025, total debt amounted to $956.65 million, a slight decrease from $965.34 million at December 31, 2024[42] - The Company has a total of $423.6 million in unpaid principal balance for the TLA Facility and $540.0 million for the TLB Facility as of March 31, 2025[46] Cash Flow and Investments - Cash flows from operating activities decreased to $37,643,000 in Q1 2025 from $40,702,000 in Q1 2024, a decline of 5.1%[23] - Total cash, cash equivalents, and restricted cash at the end of Q1 2025 was $307,618,000, down from $337,587,000 at the end of Q1 2024[23] - The company’s net cash used in investing activities was $22,324,000 in Q1 2025, slightly higher than $21,994,000 in Q1 2024[23] Acquisitions - The Company acquired 100% of Grandata, Inc for an aggregate purchase price of $33.3 million, enhancing its product offerings in data analytics focused on underbanked populations[32] - The Company also acquired Nubity, Inc for $11.0 million, a cloud services provider specializing in AWS cloud infrastructure management[32] - Goodwill related to both acquisitions is preliminarily estimated at approximately $7.4 million for Nubity and $13.77 million for Grandata, with no goodwill deductible for income tax purposes[33][35] Shareholder Returns - The company declared a quarterly cash dividend of $0.05 per share, paid on March 21, 2025[89] - The company paid cash dividends of $3,181,000 in Q1 2025, compared to $3,273,000 in Q1 2024[23] Risk Factors - The company highlighted the potential risks associated with its merger with Sinqia and the impact of leverage on its financial flexibility[16] - Rising input costs, including wages and benefits, could negatively impact the company's results of operations and financial condition[177] - The company is facing a rising interest rate environment, which has adversely affected its cost of funding and increased volatility in foreign currency exchange rates[177] Revenue Segmentation - The Payment Services - Puerto Rico & Caribbean segment generated revenues of $37.299 million for the three months ended March 31, 2025, up from $33.944 million in 2024, indicating an increase of approximately 7.0%[100][102] - The Latin America Payments and Solutions segment reported revenues of $78.280 million for the three months ended March 31, 2025, compared to $70.147 million in 2024, marking an increase of around 11.6%[100][102] - The Merchant Acquiring segment's revenues were $47.649 million for the three months ended March 31, 2025, up from $43.099 million in 2024, which is an increase of approximately 10.5%[100][102] - Business Solutions segment revenues increased to $65.564 million for the three months ended March 31, 2025, from $58.128 million in 2024, reflecting a growth of about 12.7%[100][102] Foreign Currency and Interest Rates - The company recognized non-cash unrealized foreign currency remeasurement losses of $0.8 million, a decrease from losses of $4.5 million for the same period in 2024[176] - As of March 31, 2025, the company had an unfavorable foreign currency translation adjustment of $91.3 million, improved from an unfavorable adjustment of $138.0 million as of December 31, 2024[176] - A hypothetical 100 basis point increase in interest rates would increase annual interest expense by approximately $4.1 million based on the company's outstanding debt as of March 31, 2025[171]