Puerto Rican transaction processing firm Evertec announced it a revenue increase of 8% to $127.2 million during the fourth quarter in 2019, and revenue growth of 7% to $487.4 million for the full year ended Dec. 31, 2019.
“We’re pleased with our financial results for the year and with the advancement of our key growth strategies. We enhanced our product offering for our customers and delivered significant new wins in Latin America, including the recent completion of our PlacetoPay acquisition,” said Evertec President Mac Schuessler.
On Dec. 2, 2019, the company completed the acquisition of 100% of the shares of capital stock of an entity commercially known as PlacetoPay. Based in Colombia, PlacetoPay is a gateway and payment service provider primarily in Colombia and Ecuador. The results of this acquisition are reported within the Payment Services, Latin America segment.
“Looking to 2020, we expect to drive results in Puerto Rico through our focus on innovation and to deliver strong growth in Latin America through our execution on new contracts and further market expansion,” he said.
During its presentation, Evertec officials also unveiled the company’s 2020 outlook, which includes a projection of total consolidated revenue between $501 million and $508 million representing growth of 3% to 4%; adjusted earnings per common share between $2 to $2.06 representing a growth range of 2% to 5% as compared to $1.96 in 2019; capital expenditures are anticipated to be approximately $45 million; and effective tax rate of approximately 13%.
Total revenue for the quarter ended Dec. 31, 2019 was $127.2 million, an increase of 8% compared with $118.2 million in the prior year. Revenue increase in the quarter primarily reflects growth in Evertec’s Puerto Rico businesses driven by higher transaction volumes, value added solutions, new contracts and pricing actions.
Total revenue for the year was $487.4 million, an increase of 7% compared with $453.9 million in the prior year.
The increase in revenues primarily reflected growth driven in ATH debit network transaction volumes, value added solutions, new managed services, pricing actions as well as one-time revenue related to an electronic benefits services contract and other completed projects, the company stated.
During the three months ended Dec. 31, 2019 and for the full year 2019, the company repurchased a total of 0.1 million and 1.1 million shares of common stock, respectively, at an average price of $30.60 and $28.79 per share, respectively.
During the three months ended Dec. 31, 2019 and for the full year 2019, total repurchases were $3.3 million and $31.8 million, respectively. As of Dec. 31, 2019, a total of approximately $30.6 million remained available for future use under the company’s share repurchase program.