SAN JUAN, Puerto Rico--(BUSINESS WIRE)--
EVERTEC, Inc. (NYSE: EVTC) (“EVERTEC” or the “Company”) today announced
results for the first quarter ended March 31, 2017.
First Quarter 2017 and Recent Highlights
-
Revenue grew 6% to $101.3 million
-
GAAP Net Income attributable to common shareholders was $23.0 million,
or $0.31 per diluted share
-
Adjusted EBITDA increased 7% to $49.2 million
-
Adjusted earnings per share was $0.45, an increase of 10%
-
$11.0 million returned to shareholders in share repurchases and
dividends
Mac Schuessler, President and Chief Executive Officer, stated “We are
pleased with our first quarter financial results that exceeded our
expectations. We are encouraged by the strong start to the year and
remain focused on our execution while we cautiously monitor the impacts
of the unfolding resolution of the Puerto Rico fiscal situation.”
First Quarter 2017 Results
Revenue. Total revenue for the quarter ended March 31, 2017 was
$101.3 million, an increase of 6% compared with $95.5 million in the
prior year.
Merchant Acquiring net revenue was $22.5 million, a decrease of 2%
compared with $22.9 million in the prior year. This revenue decrease in
the quarter was driven primarily by the shift of revenue from the
Merchant Acquiring segment to the Payment Processing segment, reflecting
a second quarter 2016 client contract change.
Payment Processing revenue was $30.1 million, an increase of 12%
compared with $27.0 million in the prior year. Revenue results in the
quarter reflected the previously referenced client contract change from
Merchant Acquiring to Payment Processing and increases in ATH® debit
network transaction volumes, card processing volumes, POS rental income,
revenue from the Processa acquisition, as well as certain non-recurring
revenue in the quarter.
Business Solutions revenue was $48.7 million, an increase of 7% compared
with $45.6 million in the prior year. Business Solutions revenue growth
in the quarter primarily reflects increased revenue related to the
acquisition of Accuprint, an increase in revenue from Banco Popular and
other service revenues.
Adjusted EBITDA. For the quarter ended March 31, 2017, Adjusted
EBITDA was $49.2 million, an increase of 7% compared to the prior year.
Adjusted EBITDA margin (Adjusted EBITDA as a percentage of total
revenues) increased 30 basis points to 48.5% compared with 48.2% in the
prior year. The increase in Adjusted EBITDA margin was primarily driven
by a favorable revenue mix on increased volumes and the impact of
foreign currency gains. The increase was partially offset by increased
compliance and information security expenses as well as increases in
other operating expenses.
Net Income attributable to common shareholders. For the quarter
ended March 31, 2017, GAAP Net Income attributable to common
shareholders was $23.0 million, or $0.31 per diluted share, compared
with $19.1 million or $0.26 per diluted share in the prior year.
Adjusted Net Income. For the quarter ended March 31, 2017,
Adjusted Net Income was $33.0 million, an increase of 6% compared with
$31.0 million in the prior year and included the impact of increased
depreciation and amortization expense and increased interest expense in
the current year. Adjusted earnings per diluted share was $0.45, an
increase of 10% as compared to $0.41 in the prior year.
Share Repurchase
During the three months ended March 31, 2017, the Company repurchased
approximately 0.2 million shares of common stock at an average price of
$16.48 per share for a total of $3.8 million. As of March 31, 2017, a
total of approximately $76 million remained available for future use
under the Company’s share repurchase program.
2017 Outlook*
The Company is updating its financial outlook for 2017 as follows:
-
Total consolidated revenue between $394 and $404 million representing
growth of 1 to 4%
-
Earnings per share (GAAP) of $0.96 to $1.10
-
Adjusted earnings per share guidance of $1.54 to $1.67 representing a
range of -8 to 0% as compared to $1.67 in 2016
The Company continues to expect:
-
Capital expenditures ranging between $35 and $45 million
-
Effective tax rate ranging between 9.5 to 10.5%
*The 2017 Outlook does not consider any potential impact pursuant to
Title III from the Puerto Rico Oversight, Management and Economic
Stability Act.
Earnings Conference Call and Audio Webcast
The Company will host a conference call to discuss its first quarter
2017 financial results today at 5:00 p.m. ET. Hosting the call will be
Mac Schuessler, President and Chief Executive Officer, and Peter Smith,
Executive Vice President and Chief Financial Officer. 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 10104598. The replay will be available
through Wednesday, May 10, 2017. 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
This earnings release presents EBITDA, Adjusted EBITDA, Adjusted Net
Income, and Adjusted earnings per share information. These supplemental
measures of the Company’s performance are not required by, or presented
in accordance with, accounting principles generally accepted in the
United States of America (“GAAP”). They are not measurements of the
Company’s financial performance under GAAP and should not be considered
as alternatives to total revenue, net income or any other performance
measures derived in accordance with GAAP or as alternatives to cash
flows from operating activities, as indicators of operating performance
or as measures of the Company’s liquidity. In addition to GAAP measures,
management uses these non-GAAP measures to focus on the factors the
company believes are pertinent to the daily management of the Company’s
operations and believe they are frequently used by securities analysts,
investors and other interested parties to evaluate companies in the
industry. Reconciliations of the non-GAAP measures to the most directly
comparable GAAP measure are included in the schedules to this release.
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 forward-looking
statements involve known and unknown risks, uncertainties, and other
factors that may cause the actual results, performance or achievements
of EVERTEC to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Statements preceded by, followed by, or that otherwise
include the words “believes,” “expects,” “anticipates,” “intends,”
“projects,” “estimates,” and “plans” and similar expressions of future
or conditional verbs such as “will,” “should,” “would,” “may,” and
“could” are generally forward-looking in nature and not historical
facts. Any statements that refer to expectations or other
characterizations of future events, circumstances or results are
forward-looking statements.
Various factors that could cause actual future results and other future
events to differ materially from those estimated by management include,
but are not limited to: the Company’s reliance on its relationship with
Popular for a significant portion of revenue; our ability to renew our
client contracts on terms favorable to us; the effectiveness of our risk
management procedures; our dependence on our processing systems,
technology infrastructure, security systems and
fraudulent-payment-detection systems, and the risk that our systems may
experience breakdowns or fail to prevent security breaches or fraudulent
transfers; our ability to develop, install and adopt new technology; a
decreased client base due to consolidations in the banking and
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; reduction in consumer confidence leading to decreased
consumer spending; the Company’s dependence on credit card associations;
regulatory limitations on our activities, including the potential need
to seek regulatory approval to consummate transactions, due to our
relationship with Popular and our role as a service provider to
financial institutions; changes in the regulatory environment and
changes in international, legal, tax, political, administrative or
economic conditions; the geographical concentration of the Company’s
business in Puerto Rico; operating an international business in multiple
regions with potential political and economic instability; increased
compliance risks associated with operating an international business;
operating in countries and counterparties that put us at risk of
violating U.S. sanctions laws; our ability to execute our expansion and
acquisition strategies; our ability to protect our intellectual property
rights; our ability to recruit and retain qualified personnel; our
ability to comply with federal, state, and local regulatory
requirements; evolving industry standards; the Company’s high level of
indebtedness and restrictions contained in the Company’s debt
agreements; and the Company’s ability to generate sufficient cash to
service the Company’s indebtedness and to generate future profits.
Consideration should be given to the areas of risk described above, as
well as those risks set forth under the headings “Forward-Looking
Statements” and “Risk Factors” in the reports the Company files with the
SEC from time to time, in connection with considering any
forward-looking statements that may be made by the Company and its
businesses generally. We undertake no obligation to release publicly any
revisions to any forward-looking statements, to report events or to
report the occurrence of unanticipated events unless we are required to
do so by law.
|
|
|
EVERTEC, Inc.
Schedule 1: Unaudited Consolidated Condensed
Statements of Income and Comprehensive Income
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
|
|
|
2017
|
|
2016
|
|
(Dollar amounts in thousands, except share data)
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
Merchant acquiring, net
|
|
|
$
|
22,485
|
|
|
$
|
22,890
|
|
|
Payment processing
|
|
|
30,116
|
|
|
26,975
|
|
|
Business solutions
|
|
|
48,679
|
|
|
45,614
|
|
|
Total revenues
|
|
|
101,280
|
|
|
95,479
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
Cost of revenues, exclusive of depreciation and amortization shown
below
|
|
|
44,173
|
|
|
43,408
|
|
|
Selling, general and administrative expenses
|
|
|
10,831
|
|
|
10,835
|
|
|
Depreciation and amortization
|
|
|
15,684
|
|
|
14,670
|
|
|
Total operating costs and expenses
|
|
|
70,688
|
|
|
68,913
|
|
|
Income from operations
|
|
|
30,592
|
|
|
26,566
|
|
|
Non-operating income (expenses)
|
|
|
|
|
|
|
Interest income
|
|
|
185
|
|
|
87
|
|
|
Interest expense
|
|
|
(7,036
|
)
|
|
(5,878
|
)
|
|
Earnings (losses) of equity method investment
|
|
|
143
|
|
|
(130
|
)
|
|
Other income
|
|
|
1,274
|
|
|
398
|
|
|
Total non-operating expenses
|
|
|
(5,434
|
)
|
|
(5,523
|
)
|
|
Income before income taxes
|
|
|
25,158
|
|
|
21,043
|
|
|
Income tax expense
|
|
|
2,020
|
|
|
1,876
|
|
|
Net income
|
|
|
23,138
|
|
|
19,167
|
|
|
Less: Net income attributable to non-controlling interest
|
|
|
109
|
|
|
19
|
|
|
Net income attributable to EVERTEC, Inc. common stockholders’
|
|
|
23,029
|
|
|
19,148
|
|
|
Other comprehensive (loss) income, net of tax
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
|
(645
|
)
|
|
468
|
|
|
Gain (loss) on cash flow hedge
|
|
|
618
|
|
|
(3,072
|
)
|
|
Total comprehensive income attributable to EVERTEC, Inc. common
stockholders
|
|
|
$
|
23,002
|
|
|
$
|
16,544
|
|
|
Net income per common share:
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.32
|
|
|
$
|
0.26
|
|
|
Diluted
|
|
|
$
|
0.31
|
|
|
$
|
0.26
|
|
|
Shares used in computing net income per common share:
|
|
|
|
|
|
|
Basic
|
|
|
72,636,166
|
|
|
74,947,850
|
|
|
Diluted
|
|
|
73,154,693
|
|
|
75,017,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EVERTEC, Inc.
Schedule 2: Unaudited Consolidated Condensed
Balance Sheets
|
|
|
|
|
|
|
|
|
(Dollar amounts in thousands)
|
|
|
March 31, 2017
|
|
December 31, 2016
|
|
Assets
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
52,074
|
|
|
$
|
51,920
|
|
|
Restricted cash
|
|
|
8,254
|
|
|
8,112
|
|
|
Accounts receivable, net
|
|
|
76,655
|
|
|
77,803
|
|
|
Prepaid expenses and other assets
|
|
|
26,337
|
|
|
20,430
|
|
|
Total current assets
|
|
|
163,320
|
|
|
158,265
|
|
|
Investment in equity investee
|
|
|
12,491
|
|
|
12,252
|
|
|
Property and equipment, net
|
|
|
37,218
|
|
|
38,930
|
|
|
Goodwill
|
|
|
371,986
|
|
|
370,986
|
|
|
Other intangible assets, net
|
|
|
291,219
|
|
|
299,119
|
|
|
Long-term deferred tax asset
|
|
|
996
|
|
|
805
|
|
|
Other long-term assets
|
|
|
5,332
|
|
|
5,305
|
|
|
Total assets
|
|
|
$
|
882,562
|
|
|
$
|
885,662
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
Accrued liabilities
|
|
|
$
|
32,622
|
|
|
$
|
34,243
|
|
|
Accounts payable
|
|
|
27,155
|
|
|
40,845
|
|
|
Unearned income
|
|
|
6,062
|
|
|
4,531
|
|
|
Income tax payable
|
|
|
3,413
|
|
|
1,755
|
|
|
Current portion of long-term debt
|
|
|
19,977
|
|
|
19,789
|
|
|
Short-term borrowings
|
|
|
27,000
|
|
|
28,000
|
|
|
Total current liabilities
|
|
|
116,229
|
|
|
129,163
|
|
|
Long-term debt
|
|
|
595,631
|
|
|
599,667
|
|
|
Long-term deferred tax liability
|
|
|
14,731
|
|
|
14,978
|
|
|
Unearned income - long term
|
|
|
18,836
|
|
|
17,303
|
|
|
Other long-term liabilities
|
|
|
11,765
|
|
|
16,376
|
|
|
Total liabilities
|
|
|
757,192
|
|
|
777,487
|
|
|
Commitments and contingencies (Note 11)
|
|
|
|
|
|
|
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;
72,548,942
shares issued and outstanding at March 31, 2017
(December 31,
2016 - 72,635,032)
|
|
|
725
|
|
|
726
|
|
|
Additional paid-in capital
|
|
|
—
|
|
|
—
|
|
|
Accumulated earnings
|
|
|
133,455
|
|
|
116,341
|
|
|
Accumulated other comprehensive loss, net of tax
|
|
|
(12,418
|
)
|
|
(12,391
|
)
|
|
Total EVERTEC, Inc. stockholders’ equity
|
|
|
121,762
|
|
|
104,676
|
|
|
Non-controlling interest
|
|
|
3,608
|
|
|
3,499
|
|
|
Total equity
|
|
|
125,370
|
|
|
108,175
|
|
|
Total liabilities and equity
|
|
|
$
|
882,562
|
|
|
$
|
885,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EVERTEC, Inc.
Schedule 3: Unaudited Consolidated Condensed
Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
Three-month period ended March 31,
|
|
(Dollar amounts in thousands)
|
|
|
2017
|
|
2016
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
Net income
|
|
|
$
|
23,138
|
|
|
$
|
19,167
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
15,684
|
|
|
14,670
|
|
|
Amortization of debt issue costs and accretion of discount
|
|
|
1,265
|
|
|
754
|
|
|
Provision for doubtful accounts and sundry losses
|
|
|
96
|
|
|
224
|
|
|
Deferred tax benefit
|
|
|
(1,487
|
)
|
|
(804
|
)
|
|
Share-based compensation
|
|
|
2,006
|
|
|
1,604
|
|
|
Loss (gain) on disposition of property and equipment and other
intangibles
|
|
|
117
|
|
|
(33
|
)
|
|
(Earnings) losses of equity method investment
|
|
|
(143
|
)
|
|
130
|
|
|
Decrease (increase) in assets:
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
1,119
|
|
|
(42
|
)
|
|
Prepaid expenses and other assets
|
|
|
(5,909
|
)
|
|
(835
|
)
|
|
Other long-term assets
|
|
|
(237
|
)
|
|
87
|
|
|
(Decrease) increase in liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
(15,285
|
)
|
|
(8,070
|
)
|
|
Income tax payable
|
|
|
1,658
|
|
|
2,160
|
|
|
Unearned income
|
|
|
3,064
|
|
|
1,219
|
|
|
Other long-term liabilities
|
|
|
219
|
|
|
—
|
|
|
Total adjustments
|
|
|
2,167
|
|
|
11,064
|
|
|
Net cash provided by operating activities
|
|
|
25,305
|
|
|
30,231
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Net (increase) decrease in restricted cash
|
|
|
(142
|
)
|
|
3,256
|
|
|
Additions to software
|
|
|
(3,860
|
)
|
|
(1,837
|
)
|
|
Property and equipment acquired
|
|
|
(2,674
|
)
|
|
(1,179
|
)
|
|
Acquisitions, net of cash acquired
|
|
|
—
|
|
|
(5,948
|
)
|
|
Proceeds from sales of property and equipment
|
|
|
—
|
|
|
39
|
|
|
Net cash used in investing activities
|
|
|
(6,676
|
)
|
|
(5,669
|
)
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Statutory minimum withholding taxes paid on share-based compensation
|
|
|
(1,096
|
)
|
|
(192
|
)
|
|
Net decrease in short-term borrowings
|
|
|
(1,000
|
)
|
|
(2,000
|
)
|
|
Repayment of short-term borrowing for purchase of equipment and
software
|
|
|
(497
|
)
|
|
(389
|
)
|
|
Dividends paid
|
|
|
(7,264
|
)
|
|
(7,481
|
)
|
|
Repurchase of common stock
|
|
|
(3,765
|
)
|
|
(2,458
|
)
|
|
Repayment of long-term debt
|
|
|
(4,853
|
)
|
|
(4,750
|
)
|
|
Net cash used in financing activities
|
|
|
(18,475
|
)
|
|
(17,270
|
)
|
|
Net increase in cash
|
|
|
154
|
|
|
7,292
|
|
|
Cash at beginning of the period
|
|
|
51,920
|
|
|
28,747
|
|
|
Cash at end of the period
|
|
|
$
|
52,074
|
|
|
$
|
36,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EVERTEC, Inc.
Schedule 4: Unaudited Income from Operations by
Segment
|
|
|
|
|
|
|
|
|
|
Quarter ended March 31,
|
|
(Dollar amounts in thousands)
|
|
|
2017
|
|
2016
|
|
Segment income from operations
|
|
|
|
|
|
|
Merchant Acquiring
|
|
|
$
|
6,908
|
|
|
$
|
8,425
|
|
|
Payment Processing
|
|
|
17,233
|
|
|
12,414
|
|
|
Business Solutions
|
|
|
13,651
|
|
|
13,243
|
|
|
Total segment income from operations
|
|
|
37,792
|
|
|
34,082
|
|
|
Merger related depreciation and amortization and other unallocated
expenses (1)
|
|
|
(7,200
|
)
|
|
(7,516
|
)
|
|
Income from operations
|
|
|
$
|
30,592
|
|
|
$
|
26,566
|
|
|
|
|
|
|
|
|
|
|
|
|
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 March 31,
|
|
(Dollar amounts in thousands, except share data)
|
|
|
2017
|
|
2016
|
|
Net income
|
|
|
$
|
23,138
|
|
|
$
|
19,167
|
|
|
Income tax expense
|
|
|
2,020
|
|
|
1,876
|
|
|
Interest expense, net
|
|
|
6,851
|
|
|
5,791
|
|
|
Depreciation and amortization
|
|
|
15,684
|
|
|
14,670
|
|
|
EBITDA
|
|
|
47,693
|
|
|
41,504
|
|
|
Software maintenance reimbursement and other costs (1)
|
|
|
—
|
|
|
312
|
|
|
Equity income (2)
|
|
|
(143
|
)
|
|
130
|
|
|
Compensation and benefits (3)
|
|
|
2,076
|
|
|
3,681
|
|
|
Transaction, refinancing and other fees (4)
|
|
|
(467
|
)
|
|
359
|
|
|
Restatement related expenses (5)
|
|
|
—
|
|
|
59
|
|
|
Adjusted EBITDA
|
|
|
49,159
|
|
|
46,045
|
|
|
Operating depreciation and amortization(6)
|
|
|
(7,461
|
)
|
|
(7,006
|
)
|
|
Cash interest expense, net (7)
|
|
|
(5,702
|
)
|
|
(5,037
|
)
|
|
Income tax expense (8)
|
|
|
(2,891
|
)
|
|
(3,032
|
)
|
|
Non-controlling interest (9)
|
|
|
(155
|
)
|
|
(19
|
)
|
|
Adjusted net income
|
|
|
$
|
32,950
|
|
|
$
|
30,951
|
|
|
Net income per common share (GAAP):
|
|
|
|
|
|
|
Diluted
|
|
|
$
|
0.31
|
|
|
$
|
0.26
|
|
|
Adjusted Earnings per common share (Non-GAAP):
|
|
|
|
|
|
|
Diluted
|
|
|
$
|
0.45
|
|
|
$
|
0.41
|
|
|
Shares used in computing adjusted earnings per common share:
|
|
|
|
|
|
|
Diluted
|
|
|
73,154,693
|
|
|
75,017,996
|
|
|
|
|
|
|
|
|
|
|
1) Predominantly represents reimbursements received for certain software
maintenance expenses as part of the Merger, recorded as part of cost of
revenues.
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 and
other compensation expense of $2.0 million and $1.6 million for the
quarters ended March 31, 2017 and 2016 and severance payments of $0.1
million and $2.1 million for the same periods, respectively. For
March 31, 2017 share-based compensation expense of $0.5 million and
severance payments of $0.1 million were recorded as part of cost of
revenues, while share-based compensation of $1.5 million was recorded as
part of selling, general and administrative expenses. For March 31,
2016, , share-based compensation expense of $0.3 million and severance
payments of $1.8 million were recorded as part of cost of revenues,
while share-based compensation of $1.3 million and severance payments of
$0.3 million were recorded as part of selling, general and
administrative expenses.
4) Represents fees and expenses associated
with corporate transactions as defined in the Credit Agreement, recorded
as part of selling, general and administrative expenses and cost of
revenues.
5) Represents consulting, audit and legal expenses
incurred as part of the restatement, recorded as part of selling,
general and administrative expenses.
6) Represents operating
depreciation and amortization expense, which excludes amounts generated
as a result of the Merger and other from intangibles generated from
acquisitions.
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 the
applicable GAAP tax rate.
9) Represents the 35% non-controlling
equity interest in Processa, net of amortization for intangibles created
as part of the purchase.
|
|
|
EVERTEC, Inc.
Schedule 6: Outlook Summary and Reconciliation
to Non-GAAP Adjusted Earnings per Share
|
|
|
|
|
|
|
2017 Outlook(6)
|
|
2016 Actual
|
|
(Dollar amounts in millions, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
394
|
|
to
|
$
|
404
|
|
|
$
|
390
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share (EPS)-Diluted (GAAP)
|
|
|
$
|
0.96
|
|
to
|
$
|
1.10
|
|
|
$
|
1.01
|
|
|
|
|
|
|
|
|
|
|
|
Per share adjustment to reconcile GAAP EPS to Non-GAAP Adjusted EPS:
|
|
|
|
|
|
|
|
|
Share-based comp, non-cash equity earnings and other (1)
|
|
|
0.18
|
|
|
0.18
|
|
|
0.27
|
|
|
Merger related depreciation and amortization (2)
|
|
|
0.41
|
|
|
0.41
|
|
|
0.42
|
|
|
Non-cash interest expense (3)
|
|
|
0.05
|
|
|
0.05
|
|
|
0.05
|
|
|
Tax effect of non-GAAP adjustments (4)
|
|
|
(0.06
|
)
|
|
(0.06
|
)
|
|
(0.07
|
)
|
|
Non-controlling interest (5)
|
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
—
|
|
|
Total adjustments
|
|
|
0.57
|
|
|
0.57
|
|
|
0.67
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS (Non-GAAP)
|
|
|
$
|
1.54
|
|
to
|
$
|
1.67
|
|
|
$
|
1.67
|
|
|
Shares used in computing adjusted earnings per share (in millions)
|
|
|
|
|
73.5
|
|
|
74.5
|
|
|
|
|
|
|
|
|
|
|
|
|
1) Represents share based compensation, the elimination of non-cash
equity earnings from our 19.99% equity investment in CONTADO, and other
adjustments to reconcile GAAP EPS to Non-GAAP EPS.
2) Represents
depreciation and amortization expenses amounts generated as a result of
the Merger.
3) Represents non-cash amortization of the debt issue
costs, premium and accretion of discount.
4) Represents income tax
expense on non-GAAP adjustments using the applicable GAAP tax rate (in
an anticipated range of 9.5% to 10.5%).
5) Represents the 35%
non-controlling equity interest in Processa, net of amortization of
intangibles created as part of the purchase.
6) The 2017 Outlook
does not consider any potential impact pursuant to Title III from the
Puerto Rico Oversight, Management and Economic Stability Act.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170503006589/en/
EVERTEC
Investor Contact
Kay Sharpton,
787-773-5442
IR@evertecinc.com
Source: EVERTEC, Inc.