EVERTEC reports $23M in net income for 1Q18
EVERTEC Inc. announced results for the first quarter ended March 31, 2018, including net income attributable to common shareholders of $23 million, or $0.31 per diluted share flat, when compared with the prior year.
The San Juan-based company reported a 9 percent revenue growth to $110.3 million year-over-year and an Adjusted EBITDA increase of 10 percent to $54 million. Adjusted earnings per common share was $0.47, an increase of 4 percent, EVERTEC confirmed in the report.
“We are very pleased with our first quarter financial results that significantly exceeded our expectations,” EVERTEC President Mac Schuessler said.
“We are encouraged by the recovering sales volumes in Puerto Rico, the positive contribution of our PayGroup acquisition and our continued solid execution,” he said.
“Due to our strong first quarter results and our expectations of continued elevated spending driven by relief programs and insurance proceeds in Puerto Rico, we have increased our 2018 guidance,” Schuessler added.
Total revenue for the quarter ended March 31, 2018 was $110.3 million, an increase of 9 percent compared with $101.3 million in the prior year.
Revenue growth in the quarter reflected the impact of the acquisition of PayGroup as well as elevated sales volumes in Puerto Rico driven by post-hurricane recovery activity, federal relief and benefit programs and insurance proceeds, the report noted.
For the quarter ended March 31, 2018, Adjusted Net Income was $34.6 million, an increase of 5 percent compared with $33 million in the prior year and included the impact of increased interest expense and a higher tax rate in the current year. Adjusted earnings per common share was $0.47, an increase of 4 percent as compared to $0.45 in the prior year.
During the three months ended March 31, 2018, EVERTEC did not repurchase stock and a total of approximately $72 million remains authorized and available for future repurchases under its share repurchase program, it noted.
“The company may repurchase shares in the open market, through an accelerated share repurchase program or in privately negotiated transactions, subject to business opportunities and other factors,” it added.
Meanwhile, on April 17, 2018, the company paid the final installment of its 2018 Term Loan A of $26 million with a combination of cash on hand and a revolver draw.
After this payment, long-term debt was reduced to approximately $582 million. In addition, on the same date, $35 million of the Revolving Facility expired and the total borrowing capacity of the facility is $65 million, the company noted.
As a result of the quarter’s numbers, EVERTEC is revising its financial outlook for 2018 as follows:
- Total consolidated revenue between $430 million and $440 million representing growth of 6 percent to 8 percent;
- Adjusted earnings per common share guidance of $1.51 to $1.66 representing a range of 3 percent to 13 percent as compared to $1.47 in 2017;
- Capital expenditures ranging between $35 and $40 million; and,
- Non-GAAP effective tax rate ranging between 12 percent to 13 percent.