Q3 2024 Evertec Inc Earnings Call Transcript
Key Points
- Evertec Inc (EVTC) reported a strong third quarter with total revenue of approximately $212 million, marking a 22% increase compared to the same period last year.
- The company achieved an adjusted EBITDA of approximately $87 million, representing an 11% increase year-over-year, with margins exceeding expectations.
- Evertec Inc (EVTC) successfully closed the acquisition of Grandata, enhancing its data analytics capabilities and expanding its presence in Latin America.
- The company experienced robust growth in Puerto Rico, with merchant acquiring revenue up by approximately 12% year-over-year.
- Evertec Inc (EVTC) has a strong liquidity position with approximately $469 million as of September 30, 2024, and returned $92 million to shareholders through dividends and share repurchases year-to-date.
- Adjusted EBITDA margin decreased by approximately 420 basis points compared to the previous year, despite being above expectations.
- The Latin America segment faced a 10% headwind due to currency devaluation, impacting growth.
- The company anticipates a 10% discount on certain MSA services with Popular starting in October 2025, which will affect revenue and margins.
- The Payment Services - Puerto Rico & Caribbean segment saw a decline in adjusted EBITDA by approximately 7% compared to last year.
- Evertec Inc (EVTC) experienced client attrition in the Latin America segment, which is expected to create a headwind going into 2025.
Good afternoon, everyone and welcome to Evertec's third quarter 2024 earnings conference call. Today's conference call is being recorded. (Operator Instructions)
I would now like to turn the conference over to Beatriz Brown-Saenz of Investor Relations. Please go ahead.
Thank you, and good afternoon. With me today are Mac Schuessler, our President and Chief Executive Officer; and Joaquin Castrillo, our Chief Financial Officer.
Before we begin, I would like to remind everyone that this call may contain forward-looking statements and should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent periodic SEC report. During today's call, management will provide certain information that will constitute non-GAAP financial measures under SEC rules, such as adjusted EBITDA, adjusted net income and adjusted earnings per common share.
Reconciliations to GAAP measures and certain additional information are also
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