Slide 1: Third Quarter 2024 Earnings Conference Call
Third Quarter 2024 Earnings Conference Call November 6, 2024
Slide 2: Forward-looking Statements and Use of Non-GAAP Measures
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
Slide 3: Business Summary
Business Summary Mac Schuessler, President and CEO
Slide 4: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights ▪ Total Revenue $211.8 million, 22% increase ▪ Adjusted EBITDA $87.4 million, 11% increase Strong Results ▪ Adjusted EBITDA margin of 41.3% ▪ Adjusted EPS $0.86, 8% increase ▪ Delivered operating cash flow of approximately $185 million Year to Date Cash Flow and ▪ Share
Slide 5: Puerto Rico Business Update
Puerto Rico Business Update ▪ Merchant Acquiring up 12%, driven by higher sales volume and a higher spread Puerto Rico ▪ Payments PR up 2%, driven by growth in ATH Movil and POS transactions Segments ▪ Business Solutions up 8%, due to completed projects, primarily for Banco Popular ▪ Employment leve
Slide 6: LATAM Business Update
LATAM Business Update ▪ Revenue grew 65%, reflecting strong organic growth ▪ Revenue increase reflects the contribution from the Sinqia acquisition Latin America ▪ Recognized one-time revenue from GetNet Chile of $1.8 million compared with Segment $6.3 million in the prior year for the same concept
Slide 7: Other Business Update
Other Business Update ▪ Closed the acquisition of Grandata, a data analytics company in Latin America Business ▪ Services leverage behavioral data to provide credit risk insights to their clients acquisition ▪ Enhances our proprietary product offering and extends our relationship with two of the mos
Slide 8: Financial Summary
Financial Summary Joaquin Castrillo, Chief Financial Officer
Slide 9: Consolidated Results Q3 2024
Consolidated Results Q3 2024 Q3 2024 Y-o-Y % (in USD mm, except per share) Revenue $211.8 22% Adjusted EBITDA(1) $87.4 11% Adj. EBITDA margin 41.3% -420bps Adjusted Net Income(1) $55.4 1% Adjusted EPS(1) $0.86 8% ▪ Revenue growth driven by the Sinqia acquisition as well as organic growth across all
Slide 10: Merchant Acquiring Q3 2024
Merchant Acquiring Q3 2024 Q3 2024 Y-o-Y % (in USD mm, except per share) Revenue $45.4 12% Adjusted EBITDA(1) $18.2 19% Adj. EBITDA margin 40.1% 240bps ▪ Increase in revenue reflects a combination of higher sales volume and higher spreads resulting, in part, from pricing initiatives. ▪ Margin benefi
Slide 11: Payment Services, PR and Caribbean Q3 2024
Payment Services, PR and Caribbean Q3 2024 Q3 2024 Y-o-Y % (in USD mm, except per share) Revenue $52.8 2% Adjusted EBITDA(1) $28.4 -7% Adj. EBITDA margin 53.7% -510bps ▪ Revenue growth was driven by higher POS transactions as well as the continued strength in ATH Movil Business, partially offset by
Slide 12: Latin America Payments and Solutions Q3 2024
Latin America Payments and Solutions Q3 2024 Q3 2024 Y-o-Y % (in USD mm, except per share) Revenue $76.0 65% Adjusted EBITDA(1) $20.7 19% Adj. EBITDA margin 27.3% -1060bps ▪ Increase in revenue mainly reflects a full quarter of revenue contribution from Sinqia, as well as continued organic growth ac
Slide 13: Business Solutions Q3 2024
Business Solutions Q3 2024 Q3 2024 Y-o-Y % (in USD mm, except per share) Revenue $61.1 8% Adjusted EBITDA(1) $25.5 21% Adj. EBITDA margin 41.7% 440bps ▪ Revenue increase was primarily driven by completed projects with Popular that are contributing in a more meaningful way. ▪ Margin increase was prim
Slide 14: Corporate and Other Q3 2024
Corporate and Other Q3 2024 Q3 2024 Y-o-Y % (in USD mm, except per share) Adjusted EBITDA(1) -$5.4 3% % of Total Revenue 2.6% -60bps ▪ Corporate and Other Adjusted EBITDA as a percentage of total revenues of 2.6%, below 3.2% a year ago. *See Non-GAAP reconciliation summary in appendix, p.22-23. 14
Slide 15: Roll Forward of 2024 Cash Balance
Roll Forward of 2024 Cash Balance ($ in millions) Operating Activities Equity $184.9 Investments Beginning 4.4 Ending Balance1 Balance2 $343.7 ($69.8 ) ($38.3 ) $326.3 CAPEX Debt (Net) & ($92.0 ) Other3 ($6.6 ) Repurchases & Dividends Fx impact Mainly driven by $70M ASR 12/31/2023 9/30/2024 (1) Incl
Slide 16: Debt Summary
Debt Summary September 30, (in USD mm, except per share) 2024 2023 Unrestricted Cash $275.4 $177.8 Total Debt $987.0 $415.5 Term A Loan (2027 Maturity) S+150bps(2) 435.6 399.4 S+350bps Term B Loan (2030 Maturity) 540.0 - Revolver ($200M) - 6.0 Other 11.4 10.1 EVTC Net Debt $711.6 $237.7 Lev. Ratio N
Slide 17: Outlook 2024
Outlook 2024 (in USD mm, except per share) Low High Total Revenue $840.5 $846.5 Growth, % 21% 22% GAAP EPS – Diluted $1.64 $1.73 Adjusted EPS $3.08 $3.15 Growth, % 9% 12% Capital Expenditures $85 Assumptions: Adjusted EBITDA Margin 39.5% 40% Tax Rate 5% 5% Share Count to compute Adjusted EPS 65.2mm
Slide 18: Q&A
Q&A
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP Reconciliation Summary
Non-GAAP Reconciliation Summary The non-GAAP measures referenced in this earnings release 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
Slide 21: Reconciliation of GAAP to Non-GAAP Operating Results
Reconciliation of GAAP to Non-GAAP Operating Results Three months ended September 30, (Dollar amounts in thousands, except share data) 2024 2023 Net income $25,202 $9,956 Income tax expense 1,707 (4,858) Interest expense, net 15,008 3,783 Depreciation and amortization 33,660 21,919 EBITDA 75,577 30,
Slide 22: Reconciliation of Q3 2024 Segment Non-GAAP Results
Reconciliation of Q3 2024 Segment Non-GAAP Results Three months ended September 30, 2024 Payment Services - Latin America Puerto Rico & Payments and Merchant Business Corporate and (In thousands) Caribbean Solutions Acquiring, net Solutions Other (1) Total Revenues $ 52,755 $ 76,029 $ 45,437 $ 61,10
Slide 23: Reconciliation of Q3 2023 Segment Non-GAAP Results
Reconciliation of Q3 2023 Segment Non-GAAP Results Three months ended September 30, 2023 Payment Services - Latin America Puerto Rico & Payments and Merchant Business Corporate and (In thousands) Caribbean Solutions Acquiring, net Solutions Other (1) Total Revenues $ 51,600 $ 46,155 $ 40,557 $ 56,52
Slide 24: Outlook Summary and Reconciliation to Non-GAAP Adjusted EPS
Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share 2023 2024 Outlook Actual (Dollar amounts in millions, except share data) Low High Revenues $840.5 to $846.5 $695 Earnings per Share (EPS) (GAAP) $1.64 to $1.73 $1.21 Per share adjustment to reconcile GAAP EPS to Non-GAAP Adju
Slide 25: Evertec
a’ evertec oN 13 + ®OOG® i .