EVERTEC Group, LLC reported Thursday consolidated results for the fourth quarter and year ended December 31, 2012, reporting $91 million and $341.7 million for each respective period. Both results were up 6 percent year-over-year, company executives said.
“We are pleased to report another strong quarter and year of double-digit Adjusted EBITDA growth and revenue increases across our business lines,” said EVERTEC President Peter Harrington. “Our continued strong financial performance is a testament to the value of our diversified business model, which has enabled us to provide our customers with differentiated, value-add capabilities and successfully penetrate new markets and geographies.”
The EVERTEC executive listed a “number of important steps” taken during 2012, including obtaining a 15-year tax grant from the government of Puerto Rico, which “has structurally enhanced our advantaged free cash flow profile and further positions us to compound our momentum in the Latin American payments market,” Harrington said.
Total revenues for the quarter ended Dec. 31, 2012 represented an increase of $5.4 million compared to the corresponding 2011 period, which reflected an increase in merchant acquiring revenue of $100,000, payment processing revenue of $2.4 million — reflecting a 6 percent increase attributed to an increase in volume and higher demand for services — and business solutions revenue of $2.9 million.
In its report, EVERTEC noted that the income tax benefit granted by the government late last year slashed the company’s tax expenses by half to $800,000 for the quarter, when compared to the same period the prior year.
Meanwhile, total revenue for the 12-months ended Dec. 31, 2012 were $341.7 million, representing an increase of $20.6 million or 6 percent when compared to the same period in 2011.
Merchant acquiring revenue for the year reached $69.6 million, representing an increase of $7.6 million or 12 percent as compared 2011. Payment processing revenue for 2012 was $94.8 million, representing an increase of $9.1 million or 11 percent when compared to the prior year, attributed to an increase in volume.
Business Solutions revenues for the year ended Dec. 31, 2012 were $177.3 million, representing an increase of $3.9 million or 2 percent as compared to the corresponding 2011 period, primarily due to higher demand for services, EVERTEC said in its report.
Total operating costs and expenses, excluding depreciation and amortization, for the year ended December 31, 2012 were $190.2 million, representing an increase of $1.5 million or 1 percent as compared to the 2011 period. The increase was associated with an increase in revenues, partially offset by a reduction in personnel costs.