Slide 1: First Quarter 2023 Earnings Conference Call
First Quarter 2023 Earnings Conference Call April 26, 2023
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: First quarter 2023 Financial Highlights
First quarter 2023 Financial Highlights Total Revenue $159.8 million, increased 6% Strong Adjusted EBITDA $67.1 million, 8% decrease versus recast figures Results Adjusted EPS $0.69, 5% increase versus recast figures Revised Adjusted EBITDA calculation to exclude non-cash unrealized gains an
Slide 5: Puerto Rico Update
Puerto Rico Update Strong growth in both Merchant Acquiring and Payment Processing Payments ATH Movil Business continues to drive growth driving Growth Tailwind from acquisition closed in second quarter of 2022 Extended ATH Network relationship with Oriental for an additional 7 years Key Rel
Slide 6: Latin America Update
Latin America Update Organic growth and Strong organic growth M&A Revenue contribution from acquisitions: BBR and paySmart driving growth Expanded relationship with Mercado Libre to support their issuing of credit LATAM cards in Mexico Business wins Currently processing debit cards for Merca
Slide 7: Financial Summary
Financial Summary Joaquin Castrillo, Chief Financial Officer
Slide 8: Consolidated Results Q1 2023
Consolidated Results Q1 2023 (#039;s in millions, except per share) Q1 2023 Y-O-Y % Revenue $159.8 6% Adjusted EBITDA(1) $67.1 -8% Adjusted EBITDA margin 42.0% -640 bps Adjusted Net Income(1) $45.6 -5% Adjusted EPS(1) $0.69 5% Strong revenue growth across payment segments in Puerto Rico and LATAM, dr
Slide 9: Merchant Acquiring Q1 2023
Merchant Acquiring Q1 2023 (#039;s in millions) Q1 2023 Y-O-Y % Revenue $40.3 13% Adjusted EBITDA(1) $15.6 -9% Adjusted EBITDA margin 38.7% -920 bps Increase in revenue was primarily driven by strong sales volume growth mainly due to new merchants and incremental sales volume in existing merchants, a
Slide 10: Payment Services, PR and Caribbean Q1 2023
Payment Services, PR and Caribbean Q1 2023 (#039;s in millions) Q1 2023 Y-O-Y % Revenue $48.4 21% Adjusted EBITDA(1) $27.9 17% Adjusted EBITDA margin 57.6% -220 bps Revenue increase was driven by strong transaction growth in POS and ATH Movil, mainly Business, and the contribution from the small acqu
Slide 11: Payment Services, Latin America Q1 2023
Payment Services, Latin America Q1 2023 (#039;s in millions) Q1 2023 Y-O-Y % Revenue $35.3 23% Adjusted EBITDA(1) $10.4 8% Adjusted EBITDA margin 29.3% -410 bps Increase in revenue is driven by organic growth throughout the region and the contribution from the BBR and paySmart acquisitions completed
Slide 12: Business Solution Q1 2023
Business Solution Q1 2023 (#039;s in millions) Q1 2023 Y-O-Y % Revenue $55.7 -11% Adjusted EBITDA(1) $22.4 -24% Adjusted EBITDA margin 40.2% -710 bps Revenue decrease was due primarily to the impact from the Popular Transaction. Margin decrease was primarily due to the impact from the sale of highe
Slide 13: Corporate and Other Q1 2023
Corporate and Other Q1 2023 (#039;s in millions) Q1 2023 Y-O-Y % Adjusted EBITDA(1) -$9.1 -21.0% % of Total Revenue 5.7% 70 bps Corporate and Other Adjusted EBITDA as a percentage of total revenues of 5.7%, a slight increase over prior year, partially due to specific corporate initiatives. (1) Adjust
Slide 14: Roll Forward of Q1 2023 Cash Balance
Roll Forward of Q1 2023 Cash Balance ($ in millions) Operating Activities $54.5 CAPEX PaySmart Acquisition 13.3 Debt (Net) & Beginning Other 3 Balance1 23.3 Ending $215.7 Repurchases & Balance2 Dividends 31.1 $193 $9.5 12/31/2022 3/31/2023 (1) Includes ~$18M in restricted cash. (2) Includes ~$19M in
Slide 15: Debt Summary
Debt Summary (#039;s in millions) 3/31/2023 3/31/2022 Unrestricted Cash $173.7 $283.6 Total Debt $409.8 $462.9 Term A Loan (2023 Maturity) L+175bps - 167.5 Term B Loan (2024 Maturity) L+350bps - 295.0 Term A Loan (2027 Maturity) S+150bps 409.8 - Revolver (2027 Maturity, $200M) S+150bps - - Other - 0.4
Slide 16: 2023 Outlook
2023 Outlook (#039;s in millions, except per share) Low High Total Revenue $644 $652 Growth % 4.1% 5.4% GAAP EPS - Diluted $1.80 $1.90 Adjusted EPS $2.59 $2.68 Capital Expenditures $70 Assumptions: Adjusted EBITDA Margin 42% 43% Tax rate 16% 17% Share Count used to compute Adjusted EPS 65.7 65.7 *See N
Slide 17: Q&A
Q&A 2 evertec
Slide 18: 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 19: Reconciliation of GAAP to Non-GAAP Operating Results
Reconciliation of GAAP to Non-GAAP Operating Results Three months ended March, (Dollar amounts in thousands, except share data) 2023 2022 Net income $30,063 $38,866 Income tax expense 2,818 6,175 Interest expense, net 4,510 4,880 Depreciation and amortization 19,432 19,160 EBITDA 56,823 69,081 (1) E
Slide 20: Reconciliation of Q1 2023 Segment Non-GAAP Results
Reconciliation of Q1 2023 Segment Non-GAAP Results Three months ended March 31, 2023 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 48,429 $ 35,317 $ 40,347 $ 55,695 $ (19,
Slide 21: Reconciliation of Q1 2022 Segment Non-GAAP Results
Reconciliation of Q1 2022 Segment Non-GAAP Results Three months ended March 31, 2022 (as recast) 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 $ 6
Slide 22: Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share
Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share 2022 2023 Outlook (As recast) (Dollar amounts in millions, except share data) Low High Revenues $644 to $652 $618 Earnings per Share (EPS) (GAAP) $1.80 to $1.90 $3.45 Per share adjustment to reconcile GAAP EPS to Non-GAAP Adj
Slide 23: die!
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