On July 31, 2024, Evertec Inc (EVTC, Financial) released its 8-K filing reporting robust financial results for the second quarter ended June 30, 2024. Evertec Inc, a leading transaction processing business in Latin America and the Caribbean, operates through segments including Merchant Acquiring, Payment Services - Puerto Rico & Caribbean, Latin America Payments and Solutions, and Business Solutions.
Performance Overview
Evertec Inc (EVTC, Financial) reported a 27% increase in revenue to $212.0 million, surpassing the analyst estimate of $211.10 million. The company's GAAP net income attributable to common shareholders rose by 13% to $31.9 million, or $0.49 per diluted share, exceeding the estimated earnings per share of $0.34. Adjusted EBITDA increased by 16% to $86.1 million, and adjusted earnings per common share grew by 17% to $0.83.
Key Financial Achievements
The significant revenue growth was driven by the Sinqia acquisition and organic expansion across all segments. Merchant acquiring revenue saw improvements due to better spreads and increased sales volumes. Payments Puerto Rico experienced growth from ATH Movil Business and higher transaction volumes, while Latin America benefited from both the Sinqia acquisition and organic growth. Business Solutions revenue was bolstered by a one-time project-related impact.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $212.0 million | $167.1 million |
| GAAP Net Income | $31.9 million | $28.2 million |
| Adjusted EBITDA | $86.1 million | $74.5 million |
| Adjusted EPS | $0.83 | $0.71 |
Balance Sheet and Cash Flow
As of June 30, 2024, Evertec Inc (EVTC, Financial) reported total assets of $1.89 billion, with cash and cash equivalents of $257.7 million. The company completed an accelerated share repurchase transaction, retiring a total of 1,984,155 shares. Net cash provided by operating activities was $131.3 million, while net cash used in investing and financing activities were $50.2 million and $85.8 million, respectively.
Commentary and Outlook
"Our second quarter results exceeded our expectations, our business in Puerto Rico continues to perform strongly and our results in Latin America are encouraging as we continue to work through the Sinqia integration," said Mac Schuessler, President and Chief Executive Officer.
Looking ahead, Evertec Inc (EVTC, Financial) projects total consolidated revenue between $846 million and $854 million for 2024, representing a growth of approximately 22% to 23%. Adjusted earnings per common share are expected to be between $2.98 and $3.07, reflecting a growth of approximately 6% to 9% compared to $2.82 in 2023.
For more detailed insights and the complete financial statements, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Evertec Inc for further details.
