Evertec(US:EVTC)2025-11-07 12:01Financial Performance - Total revenues for Q3 2025 reached $228,587,000, a 7.5% increase from $211,795,000 in Q3 2024[18] - Net income attributable to EVERTEC, Inc.'s common stockholders for Q3 2025 was $32,861,000, compared to $24,678,000 in Q3 2024, reflecting a 33.5% year-over-year growth[18] - Operating income for Q3 2025 was $37,732,000, down from $41,541,000 in Q3 2024, reflecting a decrease of 9.0%[18] - The company reported a total comprehensive income of $46,146,000 for Q3 2025, compared to $28,094,000 in Q3 2024, an increase of 64.3%[18] - Net income for the quarter ending September 30, 2025, was $32,700,000, compared to $40,404,000 for the previous quarter[20] - Net income for the nine months ended September 30, 2025, was $107,524,000, an increase of 45% compared to $74,112,000 in 2024[23] - Net income available to common shareholders for the nine months ended September 30, 2025, was $106.029 million, compared to $72.558 million for the same period in 2024, reflecting a growth of approximately 46%[96] Assets and Liabilities - Total assets increased to $2,149,167,000 as of September 30, 2025, up from $1,857,611,000 at the end of 2024, representing a 15.6% growth[17] - Current assets rose to $744,420,000, a significant increase from $529,065,000 at the end of 2024, marking a 40.7% increase[17] - Long-term debt increased to $1,059,143,000 from $925,062,000, indicating a 14.5% rise[17] - Total stockholders' equity grew to $663,750,000 as of September 30, 2025, compared to $472,524,000 at the end of 2024, a 40.4% increase[17] - As of September 30, 2025, total debt amounted to $1,095,751,000, an increase of 13.5% from $965,343,000 on December 31, 2024[47] Cash Flow and Dividends - Cash and cash equivalents increased to $474,738,000 from $273,645,000, a growth of 73.5%[17] - Cash dividends declared on common stock were $3,199,000 for the quarter ending September 30, 2025, consistent with the previous quarters[20] - The company paid $47,477,000 in interest for the nine months ended September 30, 2025, down from $55,024,000 in 2024[123] - The Company declared quarterly cash dividends of $0.05 per share on February 20, May 2, and July 24, 2025, totaling $0.15 per share for the year[97] Acquisitions and Investments - The company completed the acquisition of Grandata, Inc. for $33.3 million, enhancing its product offerings in data analytics[37] - The acquisition of Nubity, Inc. was finalized for $11.0 million, focusing on cloud services and infrastructure management[38] - On October 1, 2025, the company acquired 75% of Tecnobank for BRL$787 million (approximately USD$148 million), enhancing its product offerings[124][125] - The Company purchased the remaining interest of approximately 40% in Homie Do Brasil Informatica for $5.2 million, classified as a financing activity[66] Segment Performance - The Payment Services - Puerto Rico & Caribbean segment generated revenues of $36.7 million, while the Latin America Payments and Solutions segment contributed $83.4 million, indicating strong performance across these segments[110] - Segment Adjusted EBITDA for the total reportable segments was $98.0 million for the three months ended September 30, 2025, compared to $92.8 million for the same period in 2024, reflecting an increase of about 5.5%[110] - The Merchant Acquiring segment's revenues included discount fees and membership fees charged to merchants, contributing significantly to the overall revenue growth[105] - The Business Solutions segment reported revenues driven by a full suite of business process management solutions, with a focus on core bank processing and managed services[106] - The Latin America Payments and Solutions segment's revenues are primarily driven by transaction processing, highlighting the importance of transaction volume in revenue generation[104] Expenses and Costs - The company experienced a decrease in depreciation and amortization expenses to $28,435,000 in Q3 2025 from $33,660,000 in Q3 2024, a reduction of 15.6%[18] - The company reported a decrease in depreciation and amortization expenses to $85,217,000 from $101,051,000, a reduction of approximately 16%[23] - Amortization expense for other intangibles for the nine months ended September 30, 2025 was $68.7 million, down from $84.2 million for the same period in 2024, indicating a decrease of 18.4%[45] Tax and Regulatory - As of September 30, 2025, the gross deferred tax asset was $98.4 million, while the gross deferred tax liability was $87.2 million, compared to $74.3 million and $79.9 million, respectively, as of December 31, 2024[93] - The current tax provision for the nine months ended September 30, 2025, was $27.119 million, an increase from $23.375 million in 2024[91] Other Financial Metrics - The balance of accumulated other comprehensive loss improved from $(134,723) at December 31, 2024, to $(48,374) at September 30, 2025[68] - The estimated aggregate amount of the transaction price allocated to unsatisfied or partially satisfied performance obligations was $724.8 million, expected to be recognized over the next 5 to 7 years[85] - The allowance for expected current credit losses on trade receivables was $2.619 million as of September 30, 2025, down from $2.856 million at the end of 2024[88] - A hypothetical 100 basis point increase in interest rates would increase annual interest expense by approximately $5.5 million based on outstanding debt as of September 30, 2025[209] - The company has three interest rate swap agreements to convert a portion of variable rate debt to fixed[210]