Slide 1: Second Quarter 2022 Earnings Conference Call
Second Quarter 2022 Earnings Conference Call August 4, 2022
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
Slide 3: Business Summary
Business Summary Mac Schuessler, President and CEO
Slide 4: Q2 2022 Financial Highlights
Q2 2022 Financial Highlights Revenue $161 million, 8% increase Financial Adjusted EBITDA $73 million, 9% decrease Results Adjusted EPS $0.65, 17% decrease Liquidity & Returned $18 million to shareholders through dividends and share repurchases Capital Liquidity of $404 million as of June 3
Slide 5: Puerto Rico Update
Puerto Rico Update Increased transaction volumes of 6% from POS processing Payments driving PR Ongoing growth from ATH Movil and ATH Business Growth Tuck-in acquisition closed during the quarter contributing to year over year growth Positioned Economic indicators continue to reflect positive
Slide 6: Latin America Update
Latin America Update Growth Latin America segment grew 19% Drivers Managing healthy sales pipeline Ongoing growth in countries where we have had presence for many years Country Update Accelerating growth in Chile and Mexico 6
Slide 7: Business Update
Business Update o Closed on July 1st, 2022 Popular o 10-year extension of Merchant Acquiring to 2035 Transaction o 5-year extension of ATH Network Participation to 2030 o 3-year extension of Master Service Agreement to 2028 o Closed on July 1st, 2022 BBR o Expands capabilities in Chile Acquisition o
Slide 8: Financial Summary
Financial Summary Joaquin Castrillo, Chief Financial Officer
Slide 9: Consolidated Results Q2 2022
Consolidated Results Q2 2022 (#039;s in millions, except per share) Q2 2022 Y-O-Y % Revenue $160.6 8% Adjusted EBITDA $73.4 -9% Adjusted EBITDA margin 45.7% -810 bps Adjusted Net Income $47.0 -18% Adjusted EPS $0.65 -17% Q2 Revenue growth reflects increased payment transaction volumes, ATH Movil and
Slide 10: Merchant Acquiring Q2 2022
Merchant Acquiring Q2 2022 (#039;s in millions) Q2 2022 Y-O-Y % Revenue $38.5 1% Adjusted EBITDA $17.5 -15% Adjusted EBITDA margin 45.5% -810 bps Q2 revenue growth driven by pricing initiatives implemented in the quarter that offset lower sales volumes and lower transaction spread. Q2 margin reflec
Slide 11: Payment Services, PR and Caribbean Q2 2022
Payment Services, PR and Caribbean Q2 2022 (#039;s in millions) Q2 2022 Y-O-Y % Revenue $46.1 19% Adjusted EBITDA $23.8 1% Adjusted EBITDA margin 51.8% -950 bps Q2 revenue growth driven by an increase in transaction volumes for POS processing, ATH Movil and ATH Business growth, an increase in issuing
Slide 12: Payment Services, Latin America Q2 2022
Payment Services, Latin America Q2 2022 (#039;s in millions) Q2 2022 Y-O-Y % Revenue $30.8 19% Adjusted EBITDA $9.6 -13% Adjusted EBITDA margin 31.1% -1140 bps Q2 revenue driven by organic growth with existing customers and customer wins that have begun to contribute in a more significant manner. Q
Slide 13: Business Solution Q2 2022
Business Solution Q2 2022 (#039;s in millions) Q2 2022 Y-O-Y % Revenue $64.7 7% Adjusted EBITDA $29.8 -3% Adjusted EBITDA margin 46.1% -430 bps Q2 revenue reflects higher transactions and account volumes and the benefit of the CPI escalator on our MSA with Popular, as well as revenue from the printin
Slide 14: Corporate and Other Q2 2022
Corporate and Other Q2 2022 (#039;s in millions) Q2 2022 Y-O-Y % Adjusted EBITDA -$7.4 35% % of Total Revenue 4.6% 90 bps Q2 Corporate and Other Adjusted EBITDA in-line with Company expectations. *See Non-GAAP reconciliation summary in appendix, p.22-23. 14
Slide 15: Rollforward of 2022 Cash Balance
Rollforward of 2022 Cash Balance ($ in millions) Operating Activities $130 AFS Investments $1 Ending $(29) $(11) Beginning CAPEX $(7) Balance2 Purchase of CDs for BBR $(17) Balance1 $311 Customer Acquisition Debt (Net) & $286 Relationship Other 3 $(42) Repurchases & Dividends 12/31/2021 6/30/2022 (1
Slide 16: Debt Summary
Debt Summary (#039;s in millions) 6/30/2022 6/30/2021 Unrestricted Cash $285.0 $199.9 Total Debt $457.9 $475.8 Term A Loan (2023 Maturity) L+200bps 163.4 177.1 Term B Loan (2024 Maturity) L+350bps 294.2 297.5 Revolver (2023 Maturity, $125M) L+200bps 0.0 0.0 Other 0.3 1.3 Net Debt $172.9 $275.9 Weight A
Slide 17: Popular Transaction – closed July 1, 2022
Popular Transaction – closed July 1, 2022 Transaction Details Financial Impact Extended ISO agreement to 2035 Revenue share to be accounted as an expense to the • Revenue share with Popular MAB segment reducing margin starting in Q3 Extension of Key CPI concession to be retroactively credited
Slide 18: 2022 Outlook
2022 Outlook (#039;s in millions, except per share) Low High Total Revenue $607 $615 Growth % 3% 4% GAAP EPS - Diluted $1.81 $1.90 Adjusted EPS $2.52 $2.60 Growth % -8% -5% Capital Expenditures $60 Assumptions: Adjusted EBITDA Margin 45% 46% Tax rate 14% 15% Share Count used to compute Adjusted EPS 70.
Slide 19: Q&A
Q&A 2 evertec
Slide 20: 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
Slide 21: Reconciliation of GAAP to Non-GAAP Operating Results
Reconciliation of GAAP to Non-GAAP Operating Results Three months ended June 30, (Dollar amounts in thousands, except share data) 2022 2021 Net income $ 33,556 $ 49,091 Income tax expense 7,688 2,632 Interest expense, net 5,127 5,208 Depreciation and amortization 19,560 18,723 EBITDA 65,931 75,654 E
Slide 22: Reconciliation of Q2 2022 Segment Non-GAAP Results
Reconciliation of Q2 2022 Segment Non-GAAP Results Three months ended June 30, 2022 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 46,078 $ 30,784 $ 38,539 $ 64,690 $ (19,5
Slide 23: Reconciliation of Q2 2021 Segment Non-GAAP Results
Reconciliation of Q2 2021 Segment Non-GAAP Results Three months ended June 30, 2021 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 38,589 $ 25,835 $ 38,335 $ 60,693 $ (14,3
Slide 24: 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 $607 to $615 $590 Earnings per Share (EPS) (GAAP) $1.81 to $1.90 $2.21 Per share adjustment to reconcile GAAP EPS to Non-GAAP Adju
Slide 25: die! evertec
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