EVERTEC, Inc. (NYSE:EVTC) (“EVERTEC” or the “Company”) today announced
results for the first quarter ended March 31, 2014.
First-Quarter 2014 Highlights
-
Total revenue of $87.2 million; Merchant Acquiring segment revenue
increased 10% and Payment Processing segment revenue increased 4%.
-
Adjusted EBITDA increased 8% to $45.2 million.
-
Adjusted Net Income increased 16% to $32.0 million, or $0.40 per
diluted share.
Peter Harrington, EVERTEC’s President and Chief Executive Officer,
commented on the results: “We are pleased with the continued solid
performance of our payments businesses in the first quarter of 2014.
These results demonstrate strong secular growth in the Latin American
markets we serve, our ability to gain share, and our focus on execution.
Looking forward, we aim to further penetrate our existing customer base
and markets with our broad set of differentiated, value-added services.”
First-Quarter 2014 Results
Revenue. Total revenue for the quarter ended March 31, 2014 was
$87.2 million, essentially flat compared with $87.3 million in the prior
year.
Merchant Acquiring net revenue was $19.3 million, an increase of 10%
compared with $17.5 million in the prior year. Revenue growth in the
quarter was predominantly driven by an increase in transaction volumes.
Payment Processing revenue was $25.0 million, an increase of 4% compared
with $24.1 million in the prior year. Revenue growth in the quarter was
predominantly driven by new customer additions and an increase in
accounts on file within our card products business, as well as an
increase in POS processing transactions.
Business Solutions revenue was $42.9 million, a decrease of 6% compared
with $45.8 million in the prior year. The decrease in Business Solutions
revenue was mainly due to a $3.5 million decline in hardware and
software product sales in the quarter, partly offset by increased demand
for our network and core banking products and services.
Adjusted EBITDA. For the quarter ended March 31, 2014, Adjusted
EBITDA was $45.2 million, an increase of 8% compared with $41.8 million
in the prior year. The increase in Adjusted EBITDA was predominantly due
to revenue growth and significant operating leverage in our Merchant
Acquiring and Payment Processing businesses, and a foreign exchange gain
of $1.0 million related to an inter-company loan, which is reflected in
other income. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of
total revenue) was 51.9% compared with 47.8% in the prior year. The
increase in Adjusted EBITDA margin was mainly due to the same factors
affecting Adjusted EBITDA.
Adjusted Net Income. For the quarter ended March 31, 2014,
Adjusted Net Income was $32.0 million, an increase of 16% compared with
$27.5 million in the prior year. The increase in Adjusted Net Income was
predominantly driven by Adjusted EBITDA growth and lower levels of
operating depreciation and amortization expense, and cash taxes paid.
EVERTEC recorded no cash taxes in the first quarter of 2014 mainly
because of overpayments made in the 2013 fiscal year. EVERTEC expects
cash taxes to return to a more normalized level for the remainder of
2014. Adjusted Net Income per diluted share increased 11% to $0.40
compared with $0.36 in the prior year.
Earnings Conference Call and Audio Webcast
The Company has scheduled a conference call to discuss its first-quarter
2014 financial results today at 5:00 PM ET. Hosting the call will be
Peter Harrington, President and Chief Executive Officer, and Juan José
Román, Executive Vice President and Chief Financial Officer. The
conference call can be accessed live over the phone by dialing (877)
741-4249 or (719) 325-4833 for international callers. A replay will be
available at 8:00 PM ET and can be accessed by dialing (877) 870-5176 or
(858) 384-5517 for international callers; the pin number is 8900269. The
replay will be available until Wednesday, May 14, 2014. 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.
About EVERTEC
EVERTEC, Inc. (NYSE: EVTC) is the leading full-service transaction
processing business in Latin America, providing a broad range of
merchant acquiring, payment processing and business solutions services.
The largest merchant acquirer in the Caribbean and Central America—and
the seventh largest in Latin America—EVERTEC serves 19 countries in the
region from its base in Puerto Rico. The Company manages a system of
electronic payment networks that process more than 2.1 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.
The Company serves a diversified customer base of leading financial
institutions, merchants, corporations and government agencies with
mission-critical technology solutions. For more information, visit http://www.evertecinc.com.
About Non-GAAP Financial Measures
This earnings release presents EBITDA, Adjusted EBITDA, Adjusted Net
Income, and Adjusted Net Income 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
cash flows or as measures of the Company’s liquidity. We present EBITDA
and Adjusted EBITDA because we consider them important supplemental
measures of the Company’s performance and believe they are frequently
used by securities analysts, investors and other interested parties to
evaluate companies in our industry. In addition, the Company’s
presentation of Adjusted EBITDA is consistent with the equivalent
measurements contained in the Credit Agreement in testing EVERTEC
Group’s compliance with covenants therein such as the senior secured
leverage ratio. We use Adjusted Net Income to measure the Company’s
overall profitability because it better reflects the Company’s cash flow
generation by capturing the actual cash taxes paid rather than the
Company’s tax expense as calculated under GAAP, and excludes the impact
of the non-cash amortization and depreciation resulting from our 2010
merger involving an affiliate of Apollo Global management, LLC (the
“Merger”). For more information regarding EBITDA, Adjusted EBITDA,
Adjusted Net Income, and Adjusted Net Income per share, including a
quantitative reconciliation of EBITDA, Adjusted EBITDA and Adjusted Net
Income to the most directly comparable GAAP financial performance
measure, which is net income, see Schedule 4: Reconciliation of GAAP to
Non-GAAP Operating Results in this earnings 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 revenues; 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; the Company’s dependence on credit card associations;
regulatory limitations on our activities 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, 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; 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.
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|
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|
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EVERTEC, Inc.
Schedule 1: Unaudited Consolidated Statements of Income and
Comprehensive Income
|
|
|
|
|
|
|
|
|
|
Quarters ended March 31,
|
|
(Dollar amounts in thousands, except per share data)
|
|
|
|
2014
|
|
|
|
|
2013
|
|
|
Revenues
|
|
|
|
|
|
|
|
Merchant Acquiring, net
|
|
|
$
|
19,291
|
|
|
|
$
|
17,459
|
|
|
Payment Processing
|
|
|
|
25,002
|
|
|
|
|
24,112
|
|
|
Business Solutions
|
|
|
|
42,917
|
|
|
|
|
45,768
|
|
|
Total revenues
|
|
|
|
87,210
|
|
|
|
|
87,339
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
Cost of revenues, exclusive of depreciation and amortization shown
below
|
|
|
|
37,645
|
|
|
|
|
40,502
|
|
|
Selling, general and administrative expenses
|
|
|
|
8,062
|
|
|
|
|
8,863
|
|
|
Depreciation and amortization
|
|
|
|
16,614
|
|
|
|
|
17,575
|
|
|
Total operating costs and expenses
|
|
|
|
62,321
|
|
|
|
|
66,940
|
|
|
Income from operations
|
|
|
|
24,889
|
|
|
|
|
20,399
|
|
|
|
|
|
|
|
|
|
|
Non-operating (expenses) income
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
75
|
|
|
|
|
44
|
|
|
Interest expense
|
|
|
|
(6,909
|
)
|
|
|
|
(15,264
|
)
|
|
Earnings of equity method investment
|
|
|
|
321
|
|
|
|
|
277
|
|
|
Other income
|
|
|
|
1,991
|
|
|
|
|
67
|
|
|
Total non-operating (expenses) income
|
|
|
|
(4,522
|
)
|
|
|
|
(14,876
|
)
|
|
Income before income taxes
|
|
|
|
20,367
|
|
|
|
|
5,523
|
|
|
Income tax expense
|
|
|
|
2,161
|
|
|
|
|
51
|
|
|
Net income
|
|
|
|
18,206
|
|
|
|
|
5,472
|
|
|
Other comprehensive (loss) income, net of tax
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
|
|
(7,745
|
)
|
|
|
|
2,354
|
|
|
Total comprehensive income
|
|
|
$
|
10,461
|
|
|
|
$
|
7,826
|
|
|
|
|
|
|
|
|
|
|
Net income per common share: (1)
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.23
|
|
|
|
$
|
0.08
|
|
|
Diluted
|
|
|
$
|
0.23
|
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing net income per common share: (1)
|
|
|
|
|
|
|
|
Basic
|
|
|
|
78,375,335
|
|
|
|
|
72,736,107
|
|
|
Diluted
|
|
|
|
79,236,195
|
|
|
|
|
76,879,263
|
|
_________________________
(1) Share count was adjusted for the 2:1 stock split that
occurred on April 1, 2013.
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EVERTEC, Inc.
Schedule 2: Unaudited Consolidated Balance Sheets
|
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|
|
|
|
|
|
(Dollar amounts in thousands, except per share data)
|
|
|
March 31, 2014
|
|
|
December 31, 2013
|
|
Assets
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash
|
|
|
$
|
27,242
|
|
|
|
$
|
22,485
|
|
Restricted cash
|
|
|
|
5,247
|
|
|
|
|
5,433
|
|
Accounts receivable, net
|
|
|
|
68,403
|
|
|
|
|
68,434
|
|
Deferred tax asset
|
|
|
|
3,823
|
|
|
|
|
2,537
|
|
Prepaid expenses and other assets
|
|
|
|
18,919
|
|
|
|
|
17,524
|
|
Total current assets
|
|
|
|
123,634
|
|
|
|
|
116,413
|
|
Investment in equity investee
|
|
|
|
10,895
|
|
|
|
|
10,639
|
|
Property and equipment, net
|
|
|
|
30,494
|
|
|
|
|
33,240
|
|
Goodwill
|
|
|
|
369,101
|
|
|
|
|
373,119
|
|
Other intangible assets, net
|
|
|
|
355,801
|
|
|
|
|
367,780
|
|
Other long-term assets
|
|
|
|
15,958
|
|
|
|
|
18,162
|
|
Total assets
|
|
|
$
|
905,883
|
|
|
|
$
|
919,353
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
Accrued liabilities
|
|
|
$
|
28,057
|
|
|
|
$
|
26,571
|
|
Accounts payable
|
|
|
|
12,107
|
|
|
|
|
18,630
|
|
Unearned income
|
|
|
|
7,213
|
|
|
|
|
5,595
|
|
Income tax payable
|
|
|
|
1,762
|
|
|
|
|
259
|
|
Current portion of long-term debt
|
|
|
|
19,000
|
|
|
|
|
19,000
|
|
Short-term borrowings
|
|
|
|
40,600
|
|
|
|
|
51,200
|
|
Deferred tax liability, net
|
|
|
|
356
|
|
|
|
|
543
|
|
Total current liabilities
|
|
|
|
109,095
|
|
|
|
|
121,798
|
|
Long-term debt
|
|
|
|
661,153
|
|
|
|
|
665,680
|
|
Long-term deferred tax liability, net
|
|
|
|
20,767
|
|
|
|
|
20,212
|
|
Other long-term liabilities
|
|
|
|
301
|
|
|
|
|
333
|
|
Total liabilities
|
|
|
|
791,316
|
|
|
|
|
808,023
|
|
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;
78,381,126 and 78,286,465
|
|
|
|
|
|
|
|
shares issued and outstanding at March 31, 2014 and December 31,
2013, respectively
|
|
|
|
784
|
|
|
|
|
783
|
|
Additional paid-in capital
|
|
|
|
81,332
|
|
|
|
|
80,718
|
|
Accumulated earnings
|
|
|
|
39,770
|
|
|
|
|
29,403
|
|
Accumulated other comprehensive income (loss), net of tax
|
|
|
|
(7,319
|
)
|
|
|
|
426
|
|
Total stockholders' equity
|
|
|
|
114,567
|
|
|
|
|
111,330
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
905,883
|
|
|
|
$
|
919,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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EVERTEC, Inc.
Schedule 3: Unaudited Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
|
|
|
|
2014
|
|
|
|
|
2013
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
18,206
|
|
|
|
$
|
5,472
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
16,614
|
|
|
|
|
17,575
|
|
|
Amortization of debt issue costs and premium and accretion of
discount
|
|
|
|
770
|
|
|
|
|
1,466
|
|
|
Provision for doubtful accounts and sundry losses
|
|
|
|
571
|
|
|
|
|
660
|
|
|
Deferred tax benefit
|
|
|
|
(1,428
|
)
|
|
|
|
(234
|
)
|
|
Share-based compensation
|
|
|
|
350
|
|
|
|
|
331
|
|
|
Unrealized loss (gain) of indemnification assets
|
|
|
|
179
|
|
|
|
|
(16
|
)
|
|
Loss on disposition of property and equipment and other intangibles
|
|
|
|
57
|
|
|
|
|
11
|
|
|
Earnings of equity method investment
|
|
|
|
(321
|
)
|
|
|
|
(277
|
)
|
|
Decrease (increase) in assets:
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
261
|
|
|
|
|
4,196
|
|
|
Prepaid expenses and other assets
|
|
|
|
(1,435
|
)
|
|
|
|
(1,449
|
)
|
|
Other long-term assets
|
|
|
|
1,108
|
|
|
|
|
(838
|
)
|
|
(Decrease) increase in liabilities:
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
(8,039
|
)
|
|
|
|
7,354
|
|
|
Income tax payable
|
|
|
|
1,503
|
|
|
|
|
(1,197
|
)
|
|
Unearned income
|
|
|
|
1,618
|
|
|
|
|
777
|
|
|
Total adjustments
|
|
|
|
11,808
|
|
|
|
|
28,359
|
|
|
Net cash provided by operating activities
|
|
|
|
30,014
|
|
|
|
|
33,831
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Net decrease in restricted cash
|
|
|
|
186
|
|
|
|
|
112
|
|
|
Intangible assets acquired
|
|
|
|
(986
|
)
|
|
|
|
(2,197
|
)
|
|
Property and equipment acquired
|
|
|
|
(1,501
|
)
|
|
|
|
(2,257
|
)
|
|
Proceeds from sales of property and equipment
|
|
|
|
1
|
|
|
|
|
8
|
|
|
Net cash used in investing activities
|
|
|
|
(2,300
|
)
|
|
|
|
(4,334
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Net decrease in short-term borrowing
|
|
|
|
(10,000
|
)
|
|
|
|
(18,332
|
)
|
|
Repayment of short-term borrowing for purchase of equipment
|
|
|
|
(600
|
)
|
|
|
|
-
|
|
|
Repayment of long-term debt
|
|
|
|
(4,750
|
)
|
|
|
|
(2,671
|
)
|
|
Repayment of other financing agreement
|
|
|
|
(32
|
)
|
|
|
|
-
|
|
|
Dividends paid
|
|
|
|
(7,839
|
)
|
|
|
|
-
|
|
|
Tax windfall benefits on exercise of stock options
|
|
|
|
398
|
|
|
|
|
-
|
|
|
Statutory minimum withholding taxes paid on cashless exercise of
stock options
|
|
|
|
(134
|
)
|
|
|
|
-
|
|
|
Net cash used in financing activities
|
|
|
|
(22,957
|
)
|
|
|
|
(21,003
|
)
|
|
|
|
|
|
|
|
|
|
Net increase in cash
|
|
|
|
4,757
|
|
|
|
|
8,494
|
|
|
Cash at beginning of the period
|
|
|
|
22,485
|
|
|
|
|
25,634
|
|
|
Cash at end of the period
|
|
|
$
|
27,242
|
|
|
|
$
|
34,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EVERTEC, Inc.
Schedule 4: Reconciliation of GAAP to Non-GAAP Operating Results
|
|
|
|
|
|
|
|
|
|
Quarters ended March 31,
|
|
(Dollar amounts in thousands, except per share data)
|
|
|
|
2014
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
18,206
|
|
|
|
$
|
5,472
|
|
|
Income tax expense
|
|
|
|
2,161
|
|
|
|
|
51
|
|
|
Interest expense, net
|
|
|
|
6,834
|
|
|
|
|
15,220
|
|
|
Depreciation and amortization
|
|
|
|
16,614
|
|
|
|
|
17,575
|
|
|
EBITDA
|
|
|
|
43,815
|
|
|
|
|
38,318
|
|
|
|
|
|
|
|
|
|
|
Software maintenance reimbursement and other costs(1)
|
|
|
|
546
|
|
|
|
|
602
|
|
|
Equity income (2)
|
|
|
|
(321
|
)
|
|
|
|
(277
|
)
|
|
Compensation and benefits (3)
|
|
|
|
488
|
|
|
|
|
331
|
|
|
Pro forma cost reduction adjustments(4)
|
|
|
|
-
|
|
|
|
|
75
|
|
|
Transaction, refinancing and other non-recurring fees (5)
|
|
|
|
517
|
|
|
|
|
1,870
|
|
|
Management fees (6)
|
|
|
|
-
|
|
|
|
|
848
|
|
|
Purchase accounting (7)
|
|
|
|
179
|
|
|
|
|
(16
|
)
|
|
Adjusted EBITDA
|
|
|
|
45,224
|
|
|
|
|
41,751
|
|
|
|
|
|
|
|
|
|
|
Pro forma cost reduction adjustments (8)
|
|
|
|
-
|
|
|
|
|
(75
|
)
|
|
Operating depreciation and amortization (9)
|
|
|
|
(7,483
|
)
|
|
|
|
(7,815
|
)
|
|
Cash interest expense, net (10)
|
|
|
|
(5,755
|
)
|
|
|
|
(5,676
|
)
|
|
Cash income taxes (11)
|
|
|
|
-
|
|
|
|
|
(697
|
)
|
|
Adjusted Net Income
|
|
|
$
|
31,986
|
|
|
|
$
|
27,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per common share: (12)
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.41
|
|
|
|
$
|
0.38
|
|
|
Diluted
|
|
|
$
|
0.40
|
|
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing adjusted net income per common share:
(12)
|
|
|
|
|
|
|
|
Basic
|
|
|
|
78,375,335
|
|
|
|
|
72,736,107
|
|
|
Diluted
|
|
|
|
79,236,195
|
|
|
|
|
76,879,263
|
|
|
____________
|
|
(1)
|
|
Predominantly represents reimbursements received for certain
software maintenance expenses as part of the Merger.
|
|
(2)
|
|
Represents the elimination of non-cash equity earnings from our
19.99% equity investment in CONTADO, net of cash dividends
received.
|
|
(3)
|
|
Predominantly represents non-cash equity based compensation
expense.
|
|
(4)
|
|
Represents the pro forma effect of the expected net savings mainly
in compensation and benefits from the reduction of certain
employees, temporary employees and professional services. This pro
forma amount was calculated using the net amount of actual
expenses for temporary employees and professional services for the
twelve-month period prior to their replacement, separation and/or
elimination net of the incremental cost of the new full-time
employees that were hired.
|
|
(5)
|
|
Represents fees and expenses associated with non-recurring
corporate transactions, including costs associated with the
refinancing and debt extinguishment of $58.6 million in the second
quarter of 2013.
|
|
(6)
|
|
Represents consulting fees paid to Apollo and Popular. In
connection with our initial public offering during the second
quarter of 2013, our consulting agreements with Apollo and Popular
were terminated.
|
|
(7)
|
|
Represents the elimination of the effects of purchase accounting
in connection with certain customer service and software-related
arrangements whereby EVERTEC receives reimbursements from Popular.
|
|
(8)
|
|
Represents the elimination of the pro forma benefits described in
note 4 above.
|
|
(9)
|
|
Represents operating depreciation and amortization expense, which
excludes amounts generated as a result of the Merger.
|
|
(10)
|
|
For the three months ended March 31, 2013, represents pro forma
cash interest expense assuming EVERTEC’s April 2013 refinancing
occurred on January 1, 2013. For the three months ended March 31,
2014, represents interest expense, less interest income, as they
appear on our consolidated statements of income (loss) and
comprehensive income (loss), adjusted to exclude non-cash
amortization of the debt issue costs, premium and accretion of
discount.
|
|
(11)
|
|
Represents cash taxes paid for each period presented.
|
|
(12)
|
|
Share count was adjusted for the 2:1 stock split that occurred on
April 1, 2013.
|
|
|
|
|
|
|
|
|
|
|
Schedule 5: Unaudited Income from Operations by Segment
|
|
|
|
|
|
|
|
|
|
Quarters ended March 31,
|
|
(Dollar amounts in thousands)
|
|
|
|
2014
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Segment income from operations
|
|
|
|
|
|
|
|
Merchant Acquiring, net
|
|
|
$
|
8,404
|
|
|
|
$
|
9,234
|
|
|
Payment Processing
|
|
|
|
14,717
|
|
|
|
|
12,760
|
|
|
Business Solutions
|
|
|
|
11,424
|
|
|
|
|
10,534
|
|
|
Total segment income from operations
|
|
|
|
34,545
|
|
|
|
|
32,528
|
|
|
Merger related depreciation and amortization
|
|
|
|
|
|
|
|
and other unallocated expenses (1)
|
|
|
|
(9,656
|
)
|
|
|
|
(12,129
|
)
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
$
|
24,889
|
|
|
|
$
|
20,399
|
|
|
________________
|
|
|
|
|
|
(1)
|
|
Predominantly represents non-operating depreciation and
amortization expenses generated as a result of the Merger and
certain non-recurring fees and expenses.
|
Copyright Business Wire 2014