Evertec, Inc. · NYSE:EVTC

Evertec — Q1 2022 Earnings Presentation

24 slides from Evertec's earnings presentation, Apr 28, 2022

  1. Slide 1: First Quarter 2022 Earnings Conference Call

    First Quarter 2022 Earnings Conference Call April 28, 2022

  2. Slide 2: Forward-looking Statements

    Forward-looking Statements Certain statements in this presentation 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, an

  3. Slide 3: Business Summary

    Business Summary Mac Schuessler, President and CEO

  4. Slide 4: Q1 2022 Financial Highlights

    Q1 2022 Financial Highlights  Revenue $150 million, 8% increase Strong Results  Adjusted EBITDA $75 million, 9% increase  Adjusted EPS $0.70, 13% increase Liquidity &  Delivered operating cash flow of $70 million Capital  Returned $25 million to shareholder through dividends and share repurchas

  5. Slide 5: Puerto Rico Update

    Puerto Rico Update  Strong transactional growth driven by 14% increase in sales volume Payments driving PR  Two extra months of FirstBank relationship extension and expansion Growth  ATH Movil and ATH Business continue to drive growth in Puerto Rico  PlacetoPay launch in Q2 focused on driving e-

  6. Slide 6: Latin America Update

    Latin America Update  Latin America segment grew 15% organically Growth Drivers  New client wins that went into production last year contributing in a more meaningful way to our growth  GetNet Chile anniversary with significant milestones: o Over 60 thousand merchants have been affiliated in the

  7. Slide 7: Business Update

    Business Update Popular Transaction Bloomberg Gender- ESG & BBR Acquisition Equality Index 7

  8. Slide 8: Financial Summary

    Financial Summary Joaquin Castrillo, Chief Financial Officer

  9. Slide 9: Consolidated Results Q1 2022

    Consolidated Results Q1 2022 (#039;s in millions, except per share) Q1 2022 Y-O-Y % Revenue $150.2 8% Adjusted EBITDA $75.4 9% Adjusted EBITDA margin 50.2% 80 bps Adjusted Net Income $50.8 13% Adjusted EPS $0.70 13% • Q1 Revenue growth reflects strong transactional volume driven by POS processing growt

  10. Slide 10: Merchant Acquiring Q1 2022

    Merchant Acquiring Q1 2022 (#039;s in millions) Q1 2022 Y-O-Y % Revenue $35.6 15% Adjusted EBITDA $17.1 10% Adjusted EBITDA margin 47.9% -230 bps • Q1 revenue growth driven by an increase in sales volume, mainly from the FirstBank relationship expansion, a higher average ticket and slightly higher spre

  11. Slide 11: Payment Services, PR and Caribbean Q1 2022

    Payment Services, PR and Caribbean Q1 2022 (#039;s in millions) Q1 2022 Y-O-Y % Revenue $40.0 10% Adjusted EBITDA $23.8 14% Adjusted EBITDA margin 59.4% 210 bps • Q1 revenue growth driven by an increase in transactional revenue from POS processing, strong digital payments growth from ATH Movil and ATH

  12. Slide 12: Payment Services, Latin America Q1 2022

    Payment Services, Latin America Q1 2022 (#039;s in millions) Q1 2022 Y-O-Y % Revenue $28.8 15% Adjusted EBITDA $12.4 24% Adjusted EBITDA margin 43.2% 310 bps • Q1 revenue driven by organic growth, including revenue generated from new client contracts that have begun to contribute in a more significant

  13. Slide 13: Business Solution Q1 2022

    Business Solution Q1 2022 (#039;s in millions) Q1 2022 Y-O-Y % Revenue $62.6 3% Adjusted EBITDA $29.6 —% Adjusted EBITDA margin 47.3% -160 bps • Q1 revenue reflects higher transactions and account volumes and the benefit of the CPI impact on our current MSA, as well as revenue from the printing contrac

  14. Slide 14: Corporate and Other Q1 2022

    Corporate and Other Q1 2022 (#039;s in millions) Q1 2022 Y-O-Y % Adjusted EBITDA ($7.5) -6% % of Total Revenue -5.0% 10 bps • Q1 Corporate and Other Adjusted EBITDA remained relatively flat when compared to prior year as we effectively manage corporate costs. *See Non-GAAP reconciliation summary in app

  15. Slide 15: Rollforward of 2022 Cash Balance

    Rollforward of 2022 Cash Balance ($ in millions) Operating Activities $70 Ending Beginning Balance2 $(14) Balance1 $(11) $304 CAPEX $286 Debt (Net) & $(25) $(2) Other 3 Fx Impact Repurchases & Dividends 12/31/2021 3/31/2022 (1) Includes ~$20M in restricted cash. (2) Includes ~$20M in restricted cash

  16. Slide 16: Debt Summary

    Debt Summary (#039;s in millions) 3/31/2022 3/31/2021 Unrestricted Cash $283.6 $156.4 Total Debt $462.9 $479.5 Term A Loan (2023 Maturity) L+200bps 167.5 179.9 Term B Loan (2024 Maturity) L+350bps 295.0 298.3 Revolver (2023 Maturity, $125M) L+200bps — — Other 0.4 1.3 Net Debt $179.3 $323.1 Weight Avera

  17. Slide 17: 2022 Outlook

    2022 Outlook (#039;s in millions, except per share) Low High Total Revenue $597 $605 Growth % 1% 3% GAAP EPS - Diluted $1.87 $1.95 Adjusted EPS $2.52 $2.60 Growth % -8% -5% Capital Expenditures $60 Assumptions: Adjusted EBITDA Margin 45% 46% Tax rate 13% 14% Share Count used to compute Adjusted EPS 70.

  18. Slide 18: Q&A

    Q&A 2 evertec

  19. Slide 19: Non-GAAP Reconciliation Summary

    Non-GAAP Reconciliation Summary The non-GAAP measures referenced in this release material are supplemental measures of the Company’s performance and are not required by, or presented in accordance with, accounting principles generally accepted in the United States of America (“GAAP”). They are not m

  20. Slide 20: Reconciliation of GAAP to Non-GAAP Operating Results

    Reconciliation of GAAP to Non-GAAP Operating Results Three months ended March 31, (Dollar amounts in thousands, except share data) 2022 2021 Net income $ 38,866 $ 35,604 Income tax expense 6,175 4,708 Interest expense, net 4,880 5,517 Depreciation and amortization 19,160 18,623 EBITDA 69,081 64,452

  21. Slide 21: Reconciliation of Q1 2022 Segment Non-GAAP Results

    Reconciliation of Q1 2022 Segment Non-GAAP Results Three months ended March 31, 2022 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 40,008 $ 28,783 $ 35,629 $ 62,624 $ (16,

  22. Slide 22: Reconciliation of Q1 2021 Segment Non-GAAP Results

    Reconciliation of Q1 2021 Segment Non-GAAP Results Three months ended March 31, 2021 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 36,264 $ 25,014 $ 30,867 $ 60,611 $ (13,

  23. Slide 23: Outlook Summary and Reconciliation to Non-GAAP Adjusted EPS

    Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share 2021 (1) 2022 Outlook Actual (Dollar amounts in millions, except share data) Low High Revenues $597 to $605 $590 Earnings per Share (EPS) (GAAP) $1.87 to $1.95 $2.21 Per share adjustment to reconcile GAAP EPS to Non-GAAP Adju

  24. Slide 24: die!

    die! = evertec Sa~ 3 U

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