Increases 2016 Guidance Range
SAN JUAN, Puerto Rico--(BUSINESS WIRE)--
EVERTEC, Inc. (NYSE: EVTC) (“EVERTEC” or the “Company”) today announced
results for the second quarter ended June 30, 2016.
Second Quarter 2016 Highlights
-
Revenue grew 5% to $97.7 million
-
GAAP Net Income was $20.2 million, or $0.27 per diluted share
-
Adjusted EBITDA increased 4% to $48.8 million
-
Adjusted diluted earnings per share increased 7% to $0.43
-
$21 million returned to shareholders through share repurchases and
dividends
Six-Month Year-to-Date 2016 Highlights
-
Revenue grew 4% to $193.2 million
-
GAAP Net Income was $39.4 million, or $0.53 per diluted share
-
Adjusted EBITDA increased 2% to $94.9 million
-
Adjusted diluted earnings per share increased 10% to $0.84
-
$31 million returned to shareholders through share repurchases and
dividends
Mac Schuessler, President and Chief Executive Officer, stated, “We are
pleased with our second quarter financial results that reflect the
resiliency of our business model in challenging market conditions.”
Second Quarter 2016 Results
Revenue. Total revenue for the quarter ended June 30, 2016 was
$97.7 million, an increase of 5% compared with $93.4 million in the
prior year.
Merchant Acquiring net revenue was $23.3 million, an increase of 10%
compared with $21.2 million in the prior year. Revenue growth in the
quarter was driven by the FirstBank merchant business, partially offset
by the shift of a merchant acquiring customer contract to a payment
processing contract as well as other revenue mix shifts.
Payment Processing revenue was $28.2 million, an increase of 5% compared
with $26.8 million in the prior year. Revenue growth in the quarter
primarily reflected increases in transactions processed over the ATH®
debit network and card processing volume, revenue related to the
Processa acquisition and the reference revenue shift from merchant
acquiring to payment processing. These increases were partially offset
by a reduction related to the classification of FirstBank revenues in
merchant acquiring in 2016 as well as revenue reductions related to
government programs.
Business Solutions revenue was $46.2 million, an increase of 2% compared
to $45.5 million in the prior year. Business Solutions revenue growth in
the quarter reflects additional volumes in core banking and increased
revenue from hardware sales, partially offset by a decrease in IT
consulting and cash and item processing revenue.
Adjusted EBITDA. For the quarter ended June 30, 2016, Adjusted
EBITDA was $48.8 million, an increase of 4% compared with $47.0 million
in the prior year. Adjusted EBITDA margin (Adjusted EBITDA as a
percentage of total revenues) decreased 30 basis points to 50.0%
compared with 50.3% in the prior year. The decrease in Adjusted EBITDA
margin was primarily driven by a change in revenue mix, increased
business to business operating taxes, increased investment expense
related to Latin America growth initiatives and corporate development.
Net Income. For the quarter ended June 30, 2016, GAAP Net Income
was $20.2 million, or $0.27 per diluted share, compared with $19.6
million or $0.25 per diluted share in the prior year.
For the quarter ended June 30, 2016, Adjusted Net Income was $32.0
million, an increase of 4% compared with $30.9 million in the prior
year. Adjusted Net Income per diluted share of $0.43 increased 7% as
compared to $0.40 per diluted share in the prior year.
Share Repurchase
During the three months ended June 30, 2016, the Company repurchased 0.8
million shares of common stock at an average price of $15.83 per share
for a total of $13.2 million. As of June 30, 2016, a total of $104.4
million remained available for future use under the Company’s share
repurchase program.
2016 Outlook
The Company increased the current financial outlook for 2016 as follows:
-
Total consolidated revenue between $382 and $388 million representing
growth of 2 to 4%
-
Adjusted diluted earnings per share guidance of $1.61 to $1.67
representing a growth range of 1 to 5% as compared to $1.59 in 2015
Capital expenditures continue to be expected in a range between $35 and
$40 million.
Earnings Conference Call and Audio Webcast
The conference call can be accessed live over the phone by dialing (888)
338-7153 or for international callers by dialing (412) 317-5117. A
replay will be available one hour after the end of the conference call
and can be accessed by dialing (877) 344-7529 or (412) 317-0088 for
international callers; the pin number is 10089345. The replay will be
available through Thursday, August 4, 2016. The call will be webcast
live from the Company’s website at www.evertecinc.com
under the Investor Relations section or directly at http://ir.evertecinc.com.
A supplemental slide presentation that accompanies this call and webcast
can be found on the investor relations website at ir.evertecinc.com and
will remain available after the call.
About EVERTEC
EVERTEC, Inc. (NYSE: EVTC) is a leading full-service transaction
processing business in Latin America, providing a broad range of
merchant acquiring, payment processing and business solutions services.
The Company manages a system of electronic payment networks that process
more than two billion transactions annually, and offers a comprehensive
suite of services for core bank processing, cash processing and
technology outsourcing. In addition, EVERTEC owns and operates the ATH®
network, one of the leading personal identification number (“PIN”) debit
networks in Latin America. Based in Puerto Rico, the Company operates in
18 Latin American countries and serves a diversified customer base of
leading financial institutions, merchants, corporations and government
agencies with “mission-critical” technology solutions. For more
information, visit www.evertecinc.com.
About Non-GAAP Financial Measures
Generally Accepted Accounting Principles (GAAP) is the term used to
refer to the standard framework of guidelines for financial accounting.
GAAP includes the standards, conventions, and rules accountants follow
in recording and summarizing transactions and in the preparation of
financial statements. In addition to reporting financial results in
accordance with GAAP, the company has provided non-GAAP financial
measures, which it believes are useful to help investors better
understand its financial performance, competitive position and prospects
for the future. For these reasons, management also uses these measures
in part to assess its performance. In addition, the Company’s
presentation of Adjusted EBITDA is consistent with the equivalent
measurements contained in the Credit Agreement in testing EVERTEC
Group’s compliance with covenants therein such as the senior secured
leverage ratio. Any non-GAAP measures should be considered in context
with the GAAP financial presentation and should not be considered in
isolation or as a substitute for GAAP measures. Further, EVERTEC’s
non-GAAP measures may be calculated differently from similarly titled
measures of other companies. Reconciliations of these non-GAAP measures
to related GAAP measures, including footnotes describing the specific
adjustments, are provided in the attached schedules and in the Investor
Relations section of the EVERTEC web site, www.evertecinc.com.
Forward-Looking Statements
Certain statements in this press release constitute “forward-looking
statements” within the meaning of, and subject to the protection of, the
Private Securities Litigation Reform Act of 1995. Such statements can be
identified by the use of forward-looking terminology such as “believes,”
“expects,” “may,” “estimates,” “will,” “should,” “plans” or
“anticipates” or the negative thereof or other variations thereon or
comparable terminology, or by discussions of strategy. Readers are
cautioned that any such forward-looking statements are not guarantees of
future performance and may involve significant risks and uncertainties,
and that actual results may vary materially from those in the
forward-looking statements as a result of various factors. Among the
factors that significantly impact our business and could impact our
business in the future are: the effect of the Restatement of our
previously issued financial results for the years ended December 31,
2014 and 2013 as described in Note 2 to the quarterly unaudited
financial statements, and any claims, investigations or proceedings
arising as a result; the effectiveness of our efforts to remediate the
material weakness in our internal controls over financial reporting
described in Item 4 of this Quarterly Report and our ability to maintain
effective internal controls and procedures in the future; our reliance
on our relationship with Popular, Inc. (“Popular”) for a significant
portion of our revenues and with Banco Popular de Puerto Rico (“Banco
Popular”), Popular’s principal banking subsidiary, to grow our merchant
acquiring business; for as long as we are deemed to be controlled by
Popular, we will be subject to supervision and examination by U.S.
federal banking regulators, and our activities will be limited to those
permissible for Popular. Furthermore, as a technology service provider
to regulated financial institutions, we are subject to additional
regulatory oversight and examination. As a regulated institution, we
most likely will be required to obtain regulatory approval before
engaging in certain new activities or businesses, whether organically or
by acquisition; our ability to renew our client contracts on terms
favorable to us; our dependence on our processing systems, technology
infrastructure, security systems and fraudulent payment detection
systems, as well as on our personnel and certain third parties with whom
we do business, and the risks to our business if our systems are hacked
or otherwise compromised; our ability to develop, install and adopt new
software, technology and computing systems; a decreased client base due
to consolidations and failures in the financial services industry; the
credit risk of our merchant clients, for which we may also be liable;
the continuing market position of the ATH network; a reduction in
consumer confidence, whether as a result of a global economic downturn
or otherwise, which leads to a decrease in consumer spending; our
dependence on credit card associations, including any adverse changes in
credit card association or network rules or fees; changes in the
regulatory environment and changes in international, legal, political,
administrative or economic conditions; the geographical concentration of
our business in Puerto Rico, including our business with the government
of Puerto Rico and its instrumentalities, which are facing severe fiscal
challenges and fiscal and regulatory oversight uncertainties; our
exposure to climate risks in Puerto Rico; additional adverse changes in
the general economic conditions in Puerto Rico, including the continued
migration of Puerto Ricans to the U.S. mainland, which could negatively
affect our customer base, general consumer spending, our cost of
operations and our ability to hire and retain qualified employees;
operating an international business in multiple regions with potential
political and economic instability, including Latin America; our ability
to execute our geographic expansion and acquisition strategies; our
ability to protect our intellectual property rights against infringement
and to defend ourselves against claims of infringement brought by third
parties; our ability to recruit and retain the qualified personnel
necessary to operate our business; our ability to comply with U.S.
federal, state, local and foreign regulatory requirements; evolving
industry standards and adverse changes in global economic, political and
other conditions; our high level of indebtedness and restrictions
contained in our debt agreements, including the senior secured credit
facilities, as well as debt that could be incurred in the future; our
ability to prevent a cybersecurity attack or breach in our information
security; our ability to generate sufficient cash to service our
indebtedness and to generate future profits; our ability to refinance
our debt; and the risk that the counterparty to our interest rate swap
agreement fails to satisfy its obligations under the agreement. These
forward-looking statements involve a number of risks and uncertainties
that could cause actual results to differ materially from those
suggested by the forward-looking statements. The Company does not
undertake, and specifically disclaims any obligation, to update any of
the “forward-looking statements” to reflect occurrences or unanticipated
events or circumstances after the date of such statements except as
required by the federal securities laws. Investors should refer to the
Company’s Form 10-K for the year ended December 31, 2015 (the “2015 Form
10-K”) for a discussion of factors that could cause events to differ
from those suggested by the forward-looking statements, including
factors set forth in the sections entitled “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and Results
of Operations”.
|
|
EVERTEC, Inc.
Schedule 1: Unaudited Consolidated Condensed
Statements of Income and Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended June 30,
|
|
Six-month period ended June 30,
|
|
(Dollar amounts in thousands, except per share data)
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
(As restated)
|
|
|
|
(As restated)
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
Merchant Acquiring, net
|
|
|
$
|
23,277
|
|
|
$
|
21,165
|
|
|
$
|
46,167
|
|
|
$
|
41,256
|
|
|
Payment Processing
|
|
|
|
28,157
|
|
|
|
26,759
|
|
|
|
55,132
|
|
|
|
53,136
|
|
|
Business Solutions
|
|
|
|
46,238
|
|
|
|
45,481
|
|
|
|
91,852
|
|
|
|
90,510
|
|
|
Total revenues
|
|
|
|
97,672
|
|
|
|
93,405
|
|
|
|
193,151
|
|
|
|
184,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues, exclusive of depreciation and amortization shown
below
|
|
|
|
41,966
|
|
|
|
41,004
|
|
|
|
85,374
|
|
|
|
80,954
|
|
|
Selling, general and administrative expenses
|
|
|
|
12,573
|
|
|
|
8,948
|
|
|
|
23,408
|
|
|
|
16,651
|
|
|
Depreciation and amortization
|
|
|
|
14,941
|
|
|
|
16,006
|
|
|
|
29,611
|
|
|
|
32,834
|
|
|
Total operating costs and expenses
|
|
|
|
69,480
|
|
|
|
65,958
|
|
|
|
138,393
|
|
|
|
130,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
28,192
|
|
|
|
27,447
|
|
|
|
54,758
|
|
|
|
54,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income (expenses)
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
92
|
|
|
|
127
|
|
|
|
179
|
|
|
|
231
|
|
|
Interest expense
|
|
|
|
(6,138
|
)
|
|
|
(6,210
|
)
|
|
|
(12,016
|
)
|
|
|
(12,411
|
)
|
|
(Losses) earnings of equity method investment
|
|
|
|
29
|
|
|
|
84
|
|
|
|
(101
|
)
|
|
|
199
|
|
|
Other income
|
|
|
|
860
|
|
|
|
764
|
|
|
|
1,258
|
|
|
|
1,049
|
|
|
Total non-operating expenses
|
|
|
|
(5,157
|
)
|
|
|
(5,235
|
)
|
|
|
(10,680
|
)
|
|
|
(10,932
|
)
|
|
Income before income taxes
|
|
|
|
23,035
|
|
|
|
22,212
|
|
|
|
44,078
|
|
|
|
43,531
|
|
|
Income tax expense
|
|
|
|
2,801
|
|
|
|
2,645
|
|
|
|
4,677
|
|
|
|
5,420
|
|
|
Net income
|
|
|
|
20,234
|
|
|
|
19,567
|
|
|
|
39,401
|
|
|
|
38,111
|
|
|
Less: Net (loss) income attributable to non-controlling interest
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
18
|
|
|
|
-
|
|
|
Net income attributable to EVERTEC, Inc.'s common stockholders'
|
|
|
|
20,235
|
|
|
|
19,567
|
|
|
|
39,383
|
|
|
|
38,111
|
|
|
Other comprehensive loss, net of tax
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
|
|
(2,047
|
)
|
|
|
(87
|
)
|
|
|
(1,579
|
)
|
|
|
802
|
|
|
Loss on cash flow hedge
|
|
|
|
(1,475
|
)
|
|
|
-
|
|
|
|
(4,547
|
)
|
|
|
-
|
|
|
Total comprehensive income
|
|
|
$
|
16,712
|
|
|
$
|
19,480
|
|
|
$
|
33,275
|
|
|
$
|
38,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.27
|
|
|
$
|
0.25
|
|
|
$
|
0.53
|
|
|
$
|
0.49
|
|
|
Diluted
|
|
|
$
|
0.27
|
|
|
$
|
0.25
|
|
|
$
|
0.53
|
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing net income per common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
74,706,042
|
|
|
|
77,457,322
|
|
|
|
74,826,946
|
|
|
|
77,631,339
|
|
|
Diluted
|
|
|
|
75,019,485
|
|
|
|
77,697,861
|
|
|
|
74,958,126
|
|
|
|
77,780,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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EVERTEC, Inc.
Schedule 2: Unaudited Consolidated Condensed
Balance Sheets
|
|
|
|
|
|
|
|
|
(Dollar amounts in thousands)
|
|
|
June 30, 2016
|
|
December 31, 2015
|
|
Assets
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
Cash
|
|
|
$
|
35,728
|
|
|
$
|
28,747
|
|
|
Restricted cash
|
|
|
|
7,601
|
|
|
|
11,818
|
|
|
Accounts receivable, net
|
|
|
|
72,164
|
|
|
|
73,715
|
|
|
Deferred tax asset
|
|
|
|
-
|
|
|
|
1,685
|
|
|
Prepaid expenses and other assets
|
|
|
|
21,976
|
|
|
|
18,758
|
|
|
Total current assets
|
|
|
|
137,469
|
|
|
|
134,723
|
|
|
Investment in equity investee
|
|
|
|
12,193
|
|
|
|
12,264
|
|
|
Property and equipment, net
|
|
|
|
35,358
|
|
|
|
34,128
|
|
|
Goodwill
|
|
|
|
372,001
|
|
|
|
368,133
|
|
|
Other intangible assets, net
|
|
|
|
302,356
|
|
|
|
312,059
|
|
|
Long-term deferred tax asset
|
|
|
|
531
|
|
|
|
-
|
|
|
Other long-term assets
|
|
|
|
4,544
|
|
|
|
2,347
|
|
|
Total assets
|
|
|
$
|
864,452
|
|
|
$
|
863,654
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
Accrued liabilities
|
|
|
|
34,365
|
|
|
$
|
37,308
|
|
|
Accounts payable
|
|
|
|
18,122
|
|
|
|
21,216
|
|
|
Unearned income
|
|
|
|
3,703
|
|
|
|
2,877
|
|
|
Income tax payable
|
|
|
|
2,903
|
|
|
|
1,350
|
|
|
Current portion of long-term debt
|
|
|
|
26,500
|
|
|
|
22,750
|
|
|
Short-term borrowings
|
|
|
|
20,000
|
|
|
|
17,000
|
|
|
Total current liabilities
|
|
|
|
105,593
|
|
|
|
102,501
|
|
|
Long-term debt
|
|
|
|
604,676
|
|
|
|
619,297
|
|
|
Long-term deferred tax liability, net
|
|
|
|
17,415
|
|
|
|
20,614
|
|
|
Unearned income - Long-term
|
|
|
|
12,690
|
|
|
|
10,939
|
|
|
Other long-term liabilities
|
|
|
|
16,632
|
|
|
|
12,089
|
|
|
Total liabilities
|
|
|
|
757,006
|
|
|
|
765,440
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
Preferred stock, par value $0.01; 2,000,000 shares authorized; none
issued
|
|
|
|
-
|
|
|
|
-
|
|
|
Common stock, par value $0.01; 206,000,000 shares authorized;
74,027,206 shares
issued and outstanding at June 30, 2016
(December 31, 2015 - 74,988,210)
|
|
|
|
741
|
|
|
|
750
|
|
|
Additional paid-in capital
|
|
|
|
-
|
|
|
|
9,718
|
|
|
Accumulated earnings
|
|
|
|
116,986
|
|
|
|
95,328
|
|
|
Accumulated other comprehensive loss, net of tax
|
|
|
|
(13,708
|
)
|
|
|
(7,582
|
)
|
|
Total EVERTEC, Inc stockholders' equity
|
|
|
|
104,019
|
|
|
|
98,214
|
|
|
Non-controlling interest
|
|
|
|
3,427
|
|
|
|
-
|
|
|
Total equity
|
|
|
|
107,446
|
|
|
|
98,214
|
|
|
Total liabilities and equity
|
|
|
$
|
864,452
|
|
|
$
|
863,654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EVERTEC, Inc.
Schedule 3: Unaudited Consolidated Condensed
Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six-month period ended June 30,
|
|
(Dollar amounts in thousands)
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
(As restated)
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
Net income
|
|
|
$
|
39,401
|
|
|
$
|
38,111
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
29,611
|
|
|
|
32,834
|
|
|
Amortization of debt issue costs and accretion of discount
|
|
|
|
1,939
|
|
|
|
1,621
|
|
|
Provision for doubtful accounts and sundry losses
|
|
|
|
858
|
|
|
|
622
|
|
|
Deferred tax benefit
|
|
|
|
(1,537
|
)
|
|
|
(1,740
|
)
|
|
Share-based compensation
|
|
|
|
3,403
|
|
|
|
2,191
|
|
|
Unrealized gain of indemnification assets
|
|
|
|
-
|
|
|
|
(12
|
)
|
|
Loss on disposition of property and equipment and other intangibles
|
|
|
|
122
|
|
|
|
1
|
|
|
Losses (earnings) of equity method investment
|
|
|
|
101
|
|
|
|
(199
|
)
|
|
Decrease (Increase) in assets:
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
2,776
|
|
|
|
1,998
|
|
|
Prepaid expenses and other assets
|
|
|
|
(2,972
|
)
|
|
|
(1,691
|
)
|
|
Other long-term assets
|
|
|
|
(1,826
|
)
|
|
|
(50
|
)
|
|
(Decrease) increase in liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
(6,793
|
)
|
|
|
1,263
|
|
|
Income tax payable
|
|
|
|
1,553
|
|
|
|
(1,875
|
)
|
|
Unearned income
|
|
|
|
2,578
|
|
|
|
1,580
|
|
|
Other long-term liabilities
|
|
|
|
210
|
|
|
|
2,027
|
|
|
Total adjustments
|
|
|
|
30,023
|
|
|
|
38,570
|
|
|
Net cash provided by operating activities
|
|
|
|
69,424
|
|
|
|
76,681
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Net decrease (increase) in restricted cash
|
|
|
|
4,217
|
|
|
|
(543
|
)
|
|
Additions to software
|
|
|
|
(13,154
|
)
|
|
|
(6,713
|
)
|
|
Property and equipment acquired
|
|
|
|
(5,878
|
)
|
|
|
(8,649
|
)
|
|
Acquisitions, net of cash acquired
|
|
|
|
(5,947
|
)
|
|
|
-
|
|
|
Proceeds from sales of property and equipment
|
|
|
|
40
|
|
|
|
11
|
|
|
Net cash used in investing activities
|
|
|
|
(20,722
|
)
|
|
|
(15,894
|
)
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Net increase (decrease) in short-term borrowings
|
|
|
|
3,000
|
|
|
|
(19,000
|
)
|
|
Repayments of short-term borrowing for purchase of equipment
|
|
|
|
(778
|
)
|
|
|
-
|
|
|
Dividends paid
|
|
|
|
(14,964
|
)
|
|
|
(15,542
|
)
|
|
Statutory minimum withholding taxes paid on share-based compensation
|
|
|
|
(290
|
)
|
|
|
(31
|
)
|
|
Credit amendment fees
|
|
|
|
(3,587
|
)
|
|
|
-
|
|
|
Repurchase of common stock
|
|
|
|
(15,602
|
)
|
|
|
(9,991
|
)
|
|
Repayment of long-term debt
|
|
|
|
(9,500
|
)
|
|
|
(9,500
|
)
|
|
Net cash used in financing activities
|
|
|
|
(41,721
|
)
|
|
|
(54,064
|
)
|
|
|
|
|
|
|
|
|
Net increase in cash
|
|
|
|
6,981
|
|
|
|
6,723
|
|
|
Cash at beginning of the period
|
|
|
|
28,747
|
|
|
|
32,114
|
|
|
Cash at end of the period
|
|
|
$
|
35,728
|
|
|
$
|
38,837
|
|
|
|
|
|
|
|
|
|
|
EVERTEC, Inc.
Schedule 4: Unaudited Income from Operations by
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended June 30,
|
|
Six-month period ended June 30,
|
|
(Dollar amounts in thousands)
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Segment income from operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchant Acquiring
|
|
|
$
|
8,786
|
|
|
$
|
9,626
|
|
|
$
|
17,212
|
|
|
$
|
18,901
|
|
|
Payment Processing
|
|
|
|
14,276
|
|
|
|
14,515
|
|
|
|
26,690
|
|
|
|
28,058
|
|
|
Business Solutions
|
|
|
|
15,126
|
|
|
|
13,288
|
|
|
|
28,369
|
|
|
|
27,356
|
|
|
Total segment income from operations
|
|
|
|
38,188
|
|
|
|
37,429
|
|
|
|
72,271
|
|
|
|
74,315
|
|
|
Merger related depreciation and amortization
and other
unallocated expenses (1)
|
|
|
|
(9,996
|
)
|
|
|
(9,982
|
)
|
|
|
(17,513
|
)
|
|
|
(19,852
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
$
|
28,192
|
|
|
$
|
27,447
|
|
|
$
|
54,758
|
|
|
$
|
54,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Primarily represents non-operating depreciation and
amortization expenses generated as a result of the Merger and certain
non-recurring fees and expenses.
|
|
|
|
|
|
|
|
|
|
|
EVERTEC, Inc.
Schedule 5: Reconciliation of GAAP to Non-GAAP
Operating Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended June 30,
|
|
Six-month period ended June 30,
|
|
(Dollar amounts in thousands, except per share data)
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
20,234
|
|
|
$
|
19,567
|
|
|
$
|
39,401
|
|
|
$
|
38,111
|
|
|
Income tax expense (benefit)
|
|
|
|
2,801
|
|
|
|
2,645
|
|
|
|
4,677
|
|
|
|
5,420
|
|
|
Interest expense, net
|
|
|
|
6,046
|
|
|
|
6,083
|
|
|
|
11,837
|
|
|
|
12,180
|
|
|
Depreciation and amortization
|
|
|
|
14,941
|
|
|
|
16,006
|
|
|
|
29,611
|
|
|
|
32,834
|
|
|
EBITDA
|
|
|
|
44,022
|
|
|
|
44,301
|
|
|
|
85,526
|
|
|
|
88,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software maintenance reimbursement and other costs(1)
|
|
|
|
149
|
|
|
|
455
|
|
|
|
461
|
|
|
|
929
|
|
|
Equity (income) loss(2)
|
|
|
|
(29
|
)
|
|
|
(9
|
)
|
|
|
101
|
|
|
|
(199
|
)
|
|
Compensation and benefits (3)
|
|
|
|
2,349
|
|
|
|
1,831
|
|
|
|
6,030
|
|
|
|
2,664
|
|
|
Transaction, refinancing and other non-recurring fees (4)
|
|
|
|
611
|
|
|
|
411
|
|
|
|
970
|
|
|
|
732
|
|
|
Purchase accounting (5)
|
|
|
|
-
|
|
|
|
(9
|
)
|
|
|
-
|
|
|
|
(12
|
)
|
|
Restatement related expenses (6)
|
|
|
|
1,737
|
|
|
|
-
|
|
|
|
1,796
|
|
|
|
-
|
|
|
Adjusted EBITDA
|
|
|
|
48,839
|
|
|
|
46,980
|
|
|
|
94,884
|
|
|
|
92,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating depreciation and amortization (7)
|
|
|
|
(7,081
|
)
|
|
|
(6,638
|
)
|
|
|
(14,087
|
)
|
|
|
(14,099
|
)
|
|
Cash interest expense, net (8)
|
|
|
|
(5,264
|
)
|
|
|
(5,309
|
)
|
|
|
(10,301
|
)
|
|
|
(10,642
|
)
|
|
Income tax expense (9)
|
|
|
|
(4,438
|
)
|
|
|
(4,171
|
)
|
|
|
(7,470
|
)
|
|
|
(8,452
|
)
|
|
Non-controlling interest (10)
|
|
|
|
(69
|
)
|
|
|
-
|
|
|
|
(88
|
)
|
|
|
-
|
|
|
Adjusted Net Income
|
|
|
$
|
31,987
|
|
|
$
|
30,862
|
|
|
$
|
62,938
|
|
|
$
|
59,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share (GAAP):
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.27
|
|
|
$
|
0.25
|
|
|
$
|
0.53
|
|
|
$
|
0.49
|
|
|
Diluted
|
|
|
$
|
0.27
|
|
|
$
|
0.25
|
|
|
$
|
0.53
|
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per common share (Non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.43
|
|
|
$
|
0.40
|
|
|
$
|
0.84
|
|
|
$
|
0.77
|
|
|
Diluted
|
|
|
$
|
0.43
|
|
|
$
|
0.40
|
|
|
$
|
0.84
|
|
|
$
|
0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing adjusted net income per common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
74,706,042
|
|
|
|
77,457,322
|
|
|
|
74,826,946
|
|
|
|
77,631,339
|
|
|
Diluted
|
|
|
|
75,019,485
|
|
|
|
77,697,861
|
|
|
|
74,958,126
|
|
|
|
77,780,202
|
|
|
|
|
|
|
|
|
|
|
|
|
1)Predominantly represents reimbursements received for certain software
maintenance expenses as part of the Merger.
2)Represents the elimination of non-cash equity earnings from our 19.99%
equity investment in CONTADO, net of cash dividends received.
3)Primarily represents share-based compensation expense of $1.9 million
and $1.5 million for the quarters ended June 30, 2016 and 2015 and
severance payments of $0.4 million and $0.2 million for the quarters
ended June 30, 2016 and 2015 and share-based compensation expense of
$3.5 million and $2.3 million for the six-month period ended June 30,
2016 and 2015 and severance payments of $2.5 million and $0.2 million
for the six month period ended June 30, 2016 and 2015.
4)Represents fees and expenses associated with corporate transactions as
defined in the Credit Agreement.
5)Represents the elimination of the effects of purchase accounting in
connection with certain customer service and software-related
arrangements whereby EVERTEC receives reimbursements from Popular.
6)Represents consulting, audit and legal expenses incurred as part of
the restatement.
7)Represents operating depreciation and amortization expense, which
excludes amounts generated as a result of the Merger.
8)Represents interest expense, less interest income, as they appear on
our consolidated statements of income and comprehensive income, adjusted
to exclude non-cash amortization of the debt issue costs, premium and
accretion of discount.
9)Represents income tax expense calculated on adjusted pre-tax income
using GAAP tax rate.
10)Represents the 35% non-controlling equity interest in Processa, net
of amortization for intangibles created as part of the purchase.
|
|
EVERTEC, Inc.
Schedule 6: Reconciliation of Adjusted Net Income
to GAAP Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended June 30,
|
|
(Dollar amounts in thousands, except per share data)
|
|
|
2016
|
|
2015
|
|
|
|
|
GAAP
|
|
Adjustments
|
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
97,672
|
|
|
|
|
|
$
|
97,672
|
|
|
$
|
93,405
|
|
|
|
|
|
$
|
93,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues, exclusive of depreciation and amortization shown
below
|
|
|
|
41,966
|
|
|
(990
|
)
|
(1),(3)
|
|
|
40,976
|
|
|
|
41,004
|
|
|
(1,178
|
)
|
(1),(3)
|
|
|
39,826
|
|
|
Selling, general and administrative expenses
|
|
|
|
12,573
|
|
|
(3,856
|
)
|
(3),(4),(5),(6)
|
|
|
8,717
|
|
|
|
8,948
|
|
|
(1,510
|
)
|
(3),(4),(5)
|
|
|
7,438
|
|
|
Depreciation and amortization
|
|
|
|
14,941
|
|
|
(7,860
|
)
|
(7)
|
|
|
7,081
|
|
|
|
16,006
|
|
|
(9,368
|
)
|
(7)
|
|
|
6,638
|
|
|
Total operating costs and expenses
|
|
|
|
69,480
|
|
|
|
|
|
|
56,774
|
|
|
|
65,958
|
|
|
|
|
|
|
53,902
|
|
|
Income from operations
|
|
|
|
28,192
|
|
|
|
|
|
|
40,898
|
|
|
|
27,447
|
|
|
|
|
|
|
39,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
92
|
|
|
(92
|
)
|
(8)
|
|
|
-
|
|
|
|
127
|
|
|
(127
|
)
|
(8)
|
|
|
-
|
|
|
Interest expense
|
|
|
|
(6,138
|
)
|
|
874
|
|
(8)
|
|
|
(5,264
|
)
|
|
|
(6,210
|
)
|
|
901
|
|
(8)
|
|
|
(5,309
|
)
|
|
Earnings of equity method investment
|
|
|
|
29
|
|
|
(29
|
)
|
(2)
|
|
|
-
|
|
|
|
84
|
|
|
(9
|
)
|
(2)
|
|
|
75
|
|
|
Other income
|
|
|
|
860
|
|
|
|
|
|
|
860
|
|
|
|
764
|
|
|
|
|
|
|
764
|
|
|
Total non-operating expenses
|
|
|
|
(5,157
|
)
|
|
|
|
|
|
(4,404
|
)
|
|
|
(5,235
|
)
|
|
|
|
|
|
(4,470
|
)
|
|
Income before income taxes
|
|
|
|
23,035
|
|
|
|
|
|
|
36,494
|
|
|
|
22,212
|
|
|
|
|
|
|
35,033
|
|
|
Income tax expense
|
|
|
|
2,801
|
|
|
1,637
|
|
(9)
|
|
|
4,438
|
|
|
|
2,645
|
|
|
1,526
|
|
(9)
|
|
|
4,171
|
|
|
Net income
|
|
|
|
20,234
|
|
|
|
|
|
|
32,056
|
|
|
|
19,567
|
|
|
|
|
|
|
30,862
|
|
|
Less: Net income attributable to non-controlling interest
|
|
|
|
(1
|
)
|
|
70
|
|
(10)
|
|
|
69
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
Net income attributable to EVERTEC, Inc.'s common stockholders'
|
|
|
|
20,235
|
|
|
|
|
|
|
31,987
|
|
|
|
19,567
|
|
|
|
|
|
|
30,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.27
|
|
|
|
|
|
$
|
0.43
|
|
|
$
|
0.25
|
|
|
|
|
|
$
|
0.40
|
|
|
Diluted
|
|
|
$
|
0.27
|
|
|
|
|
|
$
|
0.43
|
|
|
$
|
0.25
|
|
|
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
74,706,042
|
|
|
|
|
|
|
|
|
77,457,322
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
75,019,485
|
|
|
|
|
|
|
|
|
77,697,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six-month period ended June 30,
|
|
(Dollar amounts in thousands, except per share data)
|
|
|
2016
|
|
2015
|
|
|
|
|
GAAP
|
|
Adjustments
|
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
|
|
|
Non-GAAP
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
$
|
193,151
|
|
|
|
|
|
$
|
193,151
|
|
|
$
|
184,902
|
|
|
|
|
|
$
|
184,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues, exclusive of depreciation and amortization shown
below
|
|
|
|
85,374
|
|
|
(3,366
|
)
|
(1),(3)
|
|
|
82,008
|
|
|
|
80,954
|
|
|
(2,002
|
)
|
(1),(3)
|
|
|
78,952
|
|
|
Selling, general and administrative expenses
|
|
|
|
23,408
|
|
|
(5,891
|
)
|
(3),(4),(5),(6)
|
|
|
17,517
|
|
|
|
16,651
|
|
|
(2,311
|
)
|
(3),(4),(5)
|
|
|
14,340
|
|
|
Depreciation and amortization
|
|
|
|
29,611
|
|
|
(15,524
|
)
|
(7)
|
|
|
14,087
|
|
|
|
32,834
|
|
|
(18,735
|
)
|
(7)
|
|
|
14,099
|
|
|
Total operating costs and expenses
|
|
|
|
138,393
|
|
|
|
|
|
|
113,612
|
|
|
|
130,439
|
|
|
|
|
|
|
107,391
|
|
|
Income from operations
|
|
|
|
54,758
|
|
|
|
|
|
|
79,539
|
|
|
|
54,463
|
|
|
|
|
|
|
77,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
179
|
|
|
(179
|
)
|
(8)
|
|
|
-
|
|
|
|
231
|
|
|
(231
|
)
|
(8)
|
|
|
-
|
|
|
Interest expense
|
|
|
|
(12,016
|
)
|
|
1,715
|
|
(8)
|
|
|
(10,301
|
)
|
|
|
(12,411
|
)
|
|
1,769
|
|
(8)
|
|
|
(10,642
|
)
|
|
Earnings of equity method investment
|
|
|
|
(101
|
)
|
|
101
|
|
(2)
|
|
|
-
|
|
|
|
199
|
|
|
(199
|
)
|
(2)
|
|
|
-
|
|
|
Other income
|
|
|
|
1,258
|
|
|
|
|
|
|
1,258
|
|
|
|
1,049
|
|
|
|
|
|
|
1,049
|
|
|
Total non-operating expenses
|
|
|
|
(10,680
|
)
|
|
|
|
|
|
(9,043
|
)
|
|
|
(10,932
|
)
|
|
|
|
|
|
(9,593
|
)
|
|
Income before income taxes
|
|
|
|
44,078
|
|
|
|
|
|
|
70,496
|
|
|
|
43,531
|
|
|
|
|
|
|
67,918
|
|
|
Income tax expense
|
|
|
|
4,677
|
|
|
2,793
|
|
(9)
|
|
|
7,470
|
|
|
|
5,420
|
|
|
3,032
|
|
(9)
|
|
|
8,452
|
|
|
Net income
|
|
|
|
39,401
|
|
|
|
|
|
|
63,026
|
|
|
|
38,111
|
|
|
|
|
|
|
59,466
|
|
|
Less: Net income attributable to non-controlling interest
|
|
|
|
18
|
|
|
70
|
|
(10)
|
|
|
88
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
Net income attributable to EVERTEC, Inc.'s common stockholders'
|
|
|
|
39,383
|
|
|
|
|
|
|
62,938
|
|
|
|
38,111
|
|
|
|
|
|
|
59,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.53
|
|
|
|
|
|
$
|
0.84
|
|
|
$
|
0.49
|
|
|
|
|
|
$
|
0.77
|
|
|
Diluted
|
|
|
$
|
0.53
|
|
|
|
|
|
$
|
0.84
|
|
|
$
|
0.49
|
|
|
|
|
|
$
|
0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
74,826,946
|
|
|
|
|
|
|
|
|
77,631,339
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
74,958,126
|
|
|
|
|
|
|
|
|
77,780,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)Predominantly represents reimbursements received for certain software
maintenance expenses as part of the Merger.
2)Represents the elimination of non-cash equity earnings from our 19.99%
equity investment in CONTADO, net of cash dividends received.
3)Primarily represents non-cash equity based compensation expense of
$1.9 million and $1.5 million for the quarters ended June 30, 2016 and
2015 and severance payments of $0.4 million and $0.2 million for the
quarters ended June 30, 2016 and 2015 and non-cash equity based
compensation expense of $3.5 million and $2.3 million for the six-month
period ended June 30, 2016 and 2015 and severance payments of $2.5
million and $0.2 million for the six month period ended June 30, 2016
and 2015.
4)Represents fees and expenses associated with corporate transactions as
defined in the Credit Agreement.
5)Represents the elimination of the effects of purchase accounting in
connection with certain customer service and software-related
arrangements whereby EVERTEC receives reimbursements from Popular.
6)Represents consulting, audit and legal expenses incurred as part of
the restatement.
7)Represents operating depreciation and amortization expense, which
excludes amounts generated as a result of the Merger.
8)Represents interest expense, less interest income, as they appear on
our consolidated statements of income and comprehensive income, adjusted
to exclude non-cash amortization of the debt issue costs, premium and
accretion of discount.
9)Represents income tax expense calculated on adjusted pre-tax income
using GAAP tax rate.
10)Represents the 35% non-controlling equity interest in Processa, net
of amortization for intangibles created as part of the purchase.
|
|
|
|
|
|
|
|
|
|
|
|
|
EVERTEC, Inc.
Schedule 7: Reconciliation of new measure for
Adjusted Net Income and Adjusted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share data)
|
|
|
Quarter ended
|
|
Year ended
|
|
|
|
|
March 31, 2015
|
|
June 30, 2015
|
|
September 30, 2015
|
|
December 31, 2015
|
|
December 31, 2015
|
|
Net income, as restated
|
|
|
$
|
18,544
|
|
|
$
|
19,567
|
|
|
$
|
25,336
|
|
|
$
|
21,930
|
|
|
$
|
85,377
|
|
|
Income tax expense (benefit)
|
|
|
|
2,775
|
|
|
|
2,645
|
|
|
|
(9,347
|
)
|
|
|
592
|
|
|
|
(3,335
|
)
|
|
Interest expense, net
|
|
|
|
6,097
|
|
|
|
6,083
|
|
|
|
5,863
|
|
|
|
5,728
|
|
|
|
23,771
|
|
|
Depreciation and amortization
|
|
|
|
16,828
|
|
|
|
16,006
|
|
|
|
16,934
|
|
|
|
15,206
|
|
|
|
64,974
|
|
|
EBITDA
|
|
|
|
44,244
|
|
|
|
44,301
|
|
|
|
38,786
|
|
|
|
43,456
|
|
|
|
170,787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software maintenance reimbursement and other costs(1)
|
|
|
|
474
|
|
|
|
455
|
|
|
|
479
|
|
|
|
494
|
|
|
|
1,902
|
|
|
Equity income (2)
|
|
|
|
(190
|
)
|
|
|
(9
|
)
|
|
|
3
|
|
|
|
49
|
|
|
|
(147
|
)
|
|
Compensation and benefits (3)
|
|
|
|
833
|
|
|
|
1,831
|
|
|
|
7,271
|
|
|
|
2,302
|
|
|
|
12,237
|
|
|
Transaction, refinancing and other non-recurring fees (4)
|
|
|
|
321
|
|
|
|
411
|
|
|
|
260
|
|
|
|
324
|
|
|
|
1,316
|
|
|
Purchase accounting (5)
|
|
|
|
(3
|
)
|
|
|
(9
|
)
|
|
|
94
|
|
|
|
-
|
|
|
|
82
|
|
|
Adjusted EBITDA
|
|
|
|
45,679
|
|
|
|
46,980
|
|
|
|
46,893
|
|
|
|
46,625
|
|
|
|
186,177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating depreciation and amortization (6)
|
|
|
|
(7,461
|
)
|
|
|
(6,638
|
)
|
|
|
(7,568
|
)
|
|
|
(7,634
|
)
|
|
|
(29,301
|
)
|
|
Cash interest expense, net (7)
|
|
|
|
(5,333
|
)
|
|
|
(5,310
|
)
|
|
|
(5,081
|
)
|
|
|
(4,941
|
)
|
|
|
(20,665
|
)
|
|
Income Tax expense (8)
|
|
|
|
(4,281
|
)
|
|
|
(4,171
|
)
|
|
|
(3,867
|
)
|
|
|
(892
|
)
|
|
|
(13,211
|
)
|
|
Adjusted Net income
|
|
|
$
|
28,604
|
|
|
$
|
30,861
|
|
|
$
|
30,377
|
|
|
$
|
33,158
|
|
|
$
|
123,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applicable GAAP Tax Rate
|
|
|
|
13.0
|
%
|
|
|
11.9
|
%
|
|
|
12.2
|
%
|
|
|
2.6
|
%
|
|
|
9.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EPS - diluted
|
|
|
$
|
0.24
|
|
|
$
|
0.25
|
|
|
$
|
0.33
|
|
|
$
|
0.29
|
|
|
$
|
1.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP EPS - diluted
|
|
|
$
|
0.37
|
|
|
$
|
0.40
|
|
|
$
|
0.39
|
|
|
$
|
0.43
|
|
|
$
|
1.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
Year ended
|
|
|
|
|
March 31, 2014
|
|
June 30, 2014
|
|
September 30, 2014
|
|
December 31, 2014
|
|
December 31, 2014
|
|
Net income, as restated
|
|
|
$
|
16,978
|
|
|
$
|
17,473
|
|
|
$
|
18,855
|
|
|
$
|
12,851
|
|
|
$
|
66,157
|
|
|
Income tax expense (benefit)
|
|
|
|
2,400
|
|
|
|
2,395
|
|
|
|
1,159
|
|
|
|
2,947
|
|
|
|
8,901
|
|
|
Interest expense, net
|
|
|
|
6,525
|
|
|
|
6,422
|
|
|
|
6,279
|
|
|
|
6,218
|
|
|
|
25,444
|
|
|
Depreciation and amortization
|
|
|
|
16,614
|
|
|
|
16,390
|
|
|
|
16,453
|
|
|
|
16,531
|
|
|
|
65,988
|
|
|
EBITDA
|
|
|
|
42,517
|
|
|
|
42,680
|
|
|
|
42,746
|
|
|
|
38,547
|
|
|
|
166,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software maintenance reimbursement and other costs(1)
|
|
|
|
546
|
|
|
|
563
|
|
|
|
661
|
|
|
|
478
|
|
|
|
2,248
|
|
|
Equity income (2)
|
|
|
|
(321
|
)
|
|
|
(15
|
)
|
|
|
(239
|
)
|
|
|
(240
|
)
|
|
|
(815
|
)
|
|
Compensation and benefits (3)
|
|
|
|
488
|
|
|
|
437
|
|
|
|
648
|
|
|
|
4,579
|
|
|
|
6,152
|
|
|
Transaction, refinancing and other non-recurring fees (4)
|
|
|
|
517
|
|
|
|
1,999
|
|
|
|
269
|
|
|
|
5,145
|
|
|
|
7,930
|
|
|
Purchase accounting (5)
|
|
|
|
179
|
|
|
|
(8
|
)
|
|
|
284
|
|
|
|
(9
|
)
|
|
|
446
|
|
|
Adjusted EBITDA
|
|
|
|
43,926
|
|
|
|
45,656
|
|
|
|
44,369
|
|
|
|
48,500
|
|
|
|
182,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating depreciation and amortization (6)
|
|
|
|
(7,483
|
)
|
|
|
(7,281
|
)
|
|
|
(7,338
|
)
|
|
|
(7,416
|
)
|
|
|
(29,518
|
)
|
|
Cash interest expense, net (7)
|
|
|
|
(5,755
|
)
|
|
|
(5,654
|
)
|
|
|
(5,501
|
)
|
|
|
(5,441
|
)
|
|
|
(22,351
|
)
|
|
Income Tax expense (8)
|
|
|
|
(3,423
|
)
|
|
|
(3,230
|
)
|
|
|
(1,703
|
)
|
|
|
(5,354
|
)
|
|
|
(13,183
|
)
|
|
Adjusted Net income
|
|
|
$
|
27,265
|
|
|
$
|
29,491
|
|
|
$
|
29,827
|
|
|
$
|
30,289
|
|
|
$
|
117,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applicable GAAP Tax Rate
|
|
|
|
11.2
|
%
|
|
|
9.9
|
%
|
|
|
5.4
|
%
|
|
|
15.0
|
%
|
|
|
10.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EPS - diluted
|
|
|
$
|
0.21
|
|
|
$
|
0.22
|
|
|
$
|
0.24
|
|
|
$
|
0.16
|
|
|
$
|
0.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP EPS - diluted
|
|
|
$
|
0.34
|
|
|
$
|
0.37
|
|
|
$
|
0.38
|
|
|
$
|
0.38
|
|
|
$
|
1.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)Predominantly represents reimbursements received for certain software
maintenance expenses as part of the Merger.
2)Represents the elimination of non-cash equity earnings from our 19.99%
equity investment in CONTADO, net of cash dividends received.
3)Represents share-based compensation expense of $5.3 million for the
year ended December 31, 2015 and severance payments of $6.4 million for
the year ended December 31, 2015. For 2014, primarily represents
share-based compensation.
4)Represents fees and expenses associated with corporate transactions as
defined in the Credit Agreement.
5)Represents the elimination of the effects of purchase accounting in
connection with certain customer service and software-related
arrangements whereby EVERTEC receives reimbursements from Popular.
6)Represents operating depreciation and amortization expense, which
excludes amounts generated as a result of the Merger.
7)Represents interest expense, less interest income, as they appear on
our consolidated statements of income and comprehensive income, adjusted
to exclude non-cash amortization of the debt issue costs, premium and
accretion of discount.
8)Represents income tax expense calculated on adjusted pre-tax income
using GAAP tax rate. Figures for the third quarter of 2015 and the year
ended December 31, 2015 were adjusted to exclude the effect of tax
benefit related to the reversal of the liability for uncertain tax
position, as the underlying statue of limitations expired.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160728006599/en/
EVERTEC, Inc.
Kay Sharpton, 787-773-5442
Investor Relations
IR@evertecinc.com
Source: EVERTEC, Inc.