Slide 1: Fourth Quarter 2022 Earnings Conference Call
Fourth Quarter 2022 Earnings Conference Call February 22, 2023
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: 2022 Financial Highlights
2022 Financial Highlights Total Revenue $618.4 million, increased 5% Financial Adjusted EBITDA $269.5 million, 9% decrease Results Adjusted EPS $2.42, 12% decrease Significant Delivered operating cash flow of $223 million Operating Cash Returned $110 million to shareholders through dividen
Slide 5: Puerto Rico Update
Puerto Rico Update Positive impact from strong Holiday seasonality, increased transaction Payments volumes and pricing initiatives driving PR ATH Movil Business continues to drive growth Growth Acquisition closed in second quarter continues to provide benefits Inflation elevated at approxima
Slide 6: Latin America Update
Latin America Update Organic growth and Strong organic growth with new and existing customers M&A Revenue contribution from BBR acquisition completed mid-year driving LATAM Business New contract with SumUp in Chile for issuing processing wins Renewed contract with Banco de Costa Rica, key re
Slide 7: 2022 milestones positioned for 2023 growth
2022 milestones positioned for 2023 growth Focus on new and Mergers & People & Culture existing relationships Acquisitions o Amended and extended o Completed two acquisitions in o 5th consecutive year included relationship with Popular, our 2022 in the Bloomberg Gender largest customer Equality Inde
Slide 8: Financial Summary
Financial Summary Joaquin Castrillo, Chief Financial Officer
Slide 9: Consolidated Results Q4 and Full-Year 2022
Consolidated Results Q4 and Full- Year 2022 (#039;s in millions, except per share) Q4 2022 Y-O-Y % 2022 Y-O-Y % Revenue $161.8 4% $618.4 5% Adjusted EBITDA $68.4 -10% $269.5 -9% Adjusted EBITDA margin 42.3% -660 bps 43.6% -640 bps Adjusted Net Income $42.6 -19% $167.6 -16% Adjusted EPS $0.65 -10% $2.42
Slide 10: Merchant Acquiring 2022
Merchant Acquiring 2022 (#039;s in millions) Q4 2022 Y-O-Y % 2022 Y-O-Y% Revenue $40.0 8% $151.1 5% Adjusted EBITDA $15.1 -19% $63.6 -14% Adjusted EBITDA 37.8% -1,220 bps 42.1% -920 bps margin Revenue increase was driven by strong Holiday seasonality that drove strong sales volume growth with a sligh
Slide 11: Payment Services, PR and Caribbean 2022
Payment Services, PR and Caribbean 2022 (#039;s in millions) Q4 2022 Y-O-Y % 2022 Y-O-Y % Revenue $47.8 14% $178.5 15% Adjusted EBITDA $28.1 19% $100.8 12% Adjusted EBITDA margin 58.8% 210 bps 56.5% -140 bps Revenue growth was driven by an increase in transaction volumes, ATH Movil Business growth an
Slide 12: Payment Services, Latin America 2022
Payment Services, Latin America 2022 (#039;s in millions) Q4 2022 Y-O-Y % 2022 Y-O-Y % Revenue $34.9 23% $128.2 21% Adjusted EBITDA $10.9 -6% $36.1 -15% Adjusted EBITDA 31.2% -950 bps 28.1% -1,200 bps margin Increase in revenue is driven by organic growth throughout the region and the contribution fr
Slide 13: Business Solution 2022
Business Solution 2022 (#039;s in millions) Q4 2022 Y-O-Y % 2022 Y-O-Y % Revenue $58.7 -9% $235.3 -3% Adjusted EBITDA $24.9 -18% $100.6 -14% Adjusted EBITDA 42.4% -460 bps 42.7% -500 bps margin Revenue decrease was due primarily to the assets sold to Popular which generated approximately $30 million
Slide 14: Corporate and Other 2022
Corporate and Other 2022 (#039;s in millions) Q4 2022 Y-O-Y % 2022 Y-O-Y % Adjusted EBITDA -$10.6 -31.0% -$31.5 -13.0% % of Total Revenue 6.6% 130 bps 5.1% 40 bps Corporate and Other Adjusted EBITDA as a percentage of total revenues of 6.6%, a slight decrease over prior year, partially due to specifi
Slide 15: Roll Forward of 2022 Cash Balance
Roll Forward of 2022 Cash Balance ($ in millions) Operating Activities $223 AFS Investments Beginning $(72) $(11) $1 Balance1 CAPEX Acquisition $(52) $286 of Customer Ending BBR $(46) Relationship Balance2 Acquisition Debt (Net) & $216 Other 3 $(110) $(3) Repurchases & FX Impact Dividends 12/31/2021
Slide 16: Debt Summary
Debt Summary (#039;s in millions) 12/31/2022 12/31/2021 Unrestricted Cash $197.2 $266.3 Total Debt $435.2 $468.6 Term A Loan (2023 Maturity) L+175bps - 171.6 Term B Loan (2024 Maturity) L+350bps - 295.8 Term A Loan (2027 Maturity) S+150bps 415.0 - Revolver (2027 Maturity, $200M) S+150bps 20.0 - Other 0
Slide 17: 2023 Outlook
2023 Outlook (#039;s in millions, except per share) Low High Total Revenue $638 $647 Growth % 3.2% 4.6% GAAP EPS - Diluted $1.89 $2.00 Adjusted EPS $2.53 $2.64 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 18: Q&A
Q&A 2 evertec
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
Slide 20: Reconciliation of GAAP to Non-GAAP Operating Results
Reconciliation of GAAP to Non-GAAP Operating Results Three months ended December 31, Year ended December 31, (Dollar amounts in thousands, except share data) 2022 2021 2022 2021 Net income $28,708 $41,188 $238,869 $161,143 Income tax expense 6,072 6,088 28,983 20,562 Interest expense, net 5,688 5,01
Slide 21: Reconciliation of Q4 2022 Segment Non-GAAP Results
Reconciliation of Q4 2022 Segment Non-GAAP Results Three months ended December 31, 2022 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 47,803 $ 34,913 $ 40,006 $ 58,679 $ (
Slide 22: Reconciliation of 2022 Segment Non-GAAP Results
Reconciliation of 2022 Segment Non-GAAP Results Year ended December 31, 2022 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 178,481 $ 128,221 $ 151,085 $ 235,299 $ (74,677)
Slide 23: Reconciliation of Q4 2021 Segment Non-GAAP Results
Reconciliation of Q4 2021 Segment Non-GAAP Results Three months ended December 31, 2021 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 41,766 $ 28,322 $ 37,157 $ 64,369 $ (
Slide 24: Reconciliation of 2021 Segment Non-GAAP Results
Reconciliation of 2021 Segment Non-GAAP Results Year ended December 31, 2021 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 155,392 $ 105,963 $ 143,965 $ 243,807 $ (59,331)
Slide 25: Outlook Summary and Reconciliation to Non-GAAP Adjusted EPS
Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share 2022 2023 Outlook Actual (Dollar amounts in millions, except share data) Low High Revenues $632 to $642 $618 Earnings per Share (EPS) (GAAP) $1.89 to $2.00 $3.45 Per share adjustment to reconcile GAAP EPS to Non-GAAP Adjusted
Slide 26: die!
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