Evertec reports revenue increase of 14% to $139.5M in 1Q21
Financial technology firm Evertec announced results for the first quarter ended Mar. 31, 2021, which included a revenue increase of 14%, to $139.5 million, benefitting from volume growth and continued increase of digital solutions in Puerto Rico as well as the new client contracts in Latin America.
The current revenue compares with $121.9 million reported in the prior year.
“Revenue increase in the quarter reflected sales volume growth with a high average ticket, as well as continued growth in our digital solutions in Puerto Rico. Additionally, revenue growth in Latin America was driven by new client contracts. Revenue growth also includes approximately $1 million in one-time hardware and software sales,” said Evertec CEO Mac Schuessler.
“In the first quarter, we delivered strong results as we lapped the one-year anniversary of the pandemic. As a result of the strong first quarter, the incremental federal stimulus package, as well as the execution against our share repurchase program, we are increasing our outlook for 2021 results,” he said.
For the quarter ended March 31, 2021, net income attributable to common shareholders was $35.5 million, or $0.49 per diluted share, an increase of $13.3 million or $0.19 per diluted share as compared to the prior year.
Meanwhile, for the quarter ended March 31, 2021, Adjusted EBITDA was $68.9 million, an increase of 22% compared to the prior year. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of total revenues) was 49.4%, an increase of approximately 320 basis points from the prior year.
The year-over-year increase in margin primarily reflects the benefit of higher payment revenues in both Puerto Rico and Latin America while at the same time controlling costs, Schuessler said.
During the three months ended March 31, 2021, Evertec repurchased 382,974 shares of its common stock at an average price of $37.26 per share for a total of $14.3 million. As of March 31, 2021, a total of approximately $86 million remained available for future use under the Company’s share repurchase program.
As a result of its current numbers, Evertec increased its financial outlook for 2021 as follows:
- Total consolidated revenue is now anticipated between $543 million and $552 million representing growth of 6% to 8%, compared with $533 million to $544 million previously estimated;
- Adjusted earnings per common share between $2.25 to $2.32 representing a growth range of 9% to 12% from $2.07 in 2020, compared with $2.15 to $2.23 previously estimated;
- Capital expenditures are now anticipated to be between $50 and $55 million; and,
- Effective tax rate of approximately 13% to 14%.
