Evertec Inc (EVTC, Financial) announced its Q3 2023 results on October 26, 2023. The company reported a 19% increase in revenue to $173.2 million, reflecting growth across all segments. However, GAAP Net Income attributable to common shareholders decreased by 93% to $10.0 million, primarily due to the loss on foreign currency swap and the gain from the Popular Transaction in the prior year.
Financial Highlights
Adjusted EBITDA for the quarter ended September 30, 2023, was $78.7 million, an increase of $18.5 million compared to the prior year quarter. Adjusted EBITDA margin was 45.4%, an increase of approximately 420 basis points from the prior year. Adjusted Net Income was $52.4 million, an increase of $16.8 million compared to $35.6 million in the prior year. Adjusted earnings per common share was $0.80, an increase of $0.27 per diluted share compared to $0.53, in the prior year.
During the three months ended September 30, 2023, the Company repurchased 208,564 shares of its common stock at an average price of $37.44 per share for a total of $7.8 million. As of September 30, 2023, a total of approximately $150 million remained available for future use under the Company’s share repurchase program.
2023 Outlook
Evertec Inc (EVTC, Financial) revised its financial outlook for 2023. Total consolidated revenue is now anticipated to be between $663 million and $667 million, representing growth of approximately 7% to 8% growth, compared with $652 to $658 million previously estimated. Adjusted earnings per common share are expected to be between $2.81 to $2.86, representing approximately 11% to 13% growth as compared to $2.53 in 2022.
Company's Commentary
Mac Schuessler, President and Chief Executive Officer stated, “We are pleased with the revenue growth across all of our segments. We continue to work diligently to close the Sinqia acquisition in the fourth quarter of 2023, and as we begin to look towards 2024, we are focused on collaborating across the Company to continue to cross sell our products across all of our regions."
Summary of Financial Tables
The company's total revenue for the quarter ended September 30, 2023, was $173.2 million, an increase of 19% compared with $145.8 million in the prior year quarter. GAAP Net Income attributable to common shareholders was $10.0 million, or $0.15 per diluted share, a decrease of $127.8 million or $1.91 per diluted share as compared to the prior year. Adjusted EBITDA was $78.7 million, an increase of $18.5 million when compared to the prior year quarter. Adjusted Net Income was $52.4 million, an increase of $16.8 million compared to $35.6 million in the prior year.
As of September 30, 2023, the company's total current assets were $402,351,000, and total assets were $1,032,097,000. Total current liabilities were $188,196,000, and total liabilities were $689,097,000. Total stockholders' equity was $343,000,000.
Explore the complete 8-K earnings release (here) from Evertec Inc for further details.
