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Evertec reports $20.2M in net income for 4Q18, $86.3M for full year

Evertec Inc. announced results for the fourth quarter and full year ended Dec. 31, 2018, reporting net income of $20.2 million and $86.3 million, for the respective periods.

During the last quarter of 2018,
GAAP Net Income attributable to common shareholders represented or $0.27 per
diluted share, compared with $5.8 million or $0.08 per diluted share in the prior
year.

For the year ended Dec. 31,
2018, the result represented or $1.16 per diluted share, compared with $55.1
million or $0.76 per diluted share in the prior year.

The increase for the 12-month
period of 2018 reflects growth over last year’s hurricane impacted results, as
well as two charges taken last year, one in connection with an exit activity
for a third-party software solution and an impairment loss related to a
software asset under development, partially offset by increased interest
expense.

“We set a new revenue record in
the fourth quarter, exceeded our most recent full year guidance and far
surpassed our expectations from the beginning of the year,” said Evertec CEO Mac
Schuessler.

Total revenue for the quarter
ended Dec. 31, 2018 was $118.2 million, an increase of 19 percent compared
with $99.6 million in the prior year, according to the report.

Revenue increase in the quarter
primarily reflects growth over last year’s hurricane impacted results as well
as the elevated sales volume in Puerto Rico driven by post-hurricane recovery
activity, federal relief and benefit programs, Evertec stated.

Meanwhile, total revenue for
the year ended Dec. 31, 2018 was $453.9 million, an increase of 11 percent
compared with $407.1 million in the prior year. The increase in revenues
reflected growth over last year’s hurricane impacted results and was driven by
increases in ATH debit network transaction volumes and card processing volumes,
revenue generated from a full year of results from the acquisition of the
business formerly known as PayGroup, that closed in July 2017, and an increase
in network revenue, the company stated.

“Looking to 2019, we expect to
continue to benefit from the momentum in Puerto Rico and our continued
investments in growing our business. We anticipate the Latin American markets
will continue to evolve, creating new opportunities for our business,” Schuessler
said.

This year, Evertec’s financial
outlook for 2019 is as follows:

  • Total consolidated revenue between $464 million
    and $476 million representing growth of 2 percent to 5 percent;
  • Adjusted earnings per common share between $1.80
    to $1.90 representing a range of -2 percent to 3 percent as compared to $1.84
    in 2018;
  • Capital expenditures ranging between $40 and
    $45 million; and,
  • Effective tax rate of approximately 13 percent.

Author Details
This story was written by our staff based on a press release.

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