Evertec reports 8% in revenue growth to $122.5M in 2Q19
Evertec Inc. announced revenue growth of 8% to $122.5 million for the second quarter ended June 30, 2019.
Adjusted earnings per common share was $0.51, an increase of 11%, while Adjusted EBITDA increased 7% to $57.8 million during the quarter.
For the six months ended on the same date, Evertec posted 8% revenue growth to $241.4 million and Adjusted EBITDA increased 7% to $115.4 million.
“We exceeded our expectations for the quarter and are increasing our guidance for the full-year. Additionally, we are pleased with the recent agreement to acquire PlacetoPay in Colombia, a gateway and payment service provider,” said Evertec CEO Mac Schuessler.
The acquisition, along with new agreements such as Evertec’s expanded regional collection platform with Citibank in Mexico and Guatemala, as well as the previously announced processing agreement with Santander Chile, “will meaningfully advance our Latin American growth strategy in 2020 and beyond,” he said.
As of July 26, 2019, Evertec’s main operating subsidiary, Evertec Group, LLC, entered into an agreement to purchase 100% of the shares of capital stock of an entity commercially known as PlacetoPay, a Colombian-based company, that is a gateway and payment service provider primarily in Colombia and Ecuador.
The transaction is subject to customary closing conditions, including US federal bank regulatory approval. Receipt of U.S. federal bank regulatory approval is dependent on factors outside the control of Evertec and there is no assurance that such approval will be obtained.
During the months of May and June, the San Juan-based company entered into agreements with Citibanamex and Citibank to expand its collection and payments platform to Guatemala and Mexico, it announced in the earnings release.
On June 27, 2019, it announced an agreement with Santander Chile for acquiring processing services, as well as other solutions and services, as Santander enters the merchant acquiring market.
During the three months ended June 30, 2019, Evertec repurchased a total of 0.4 million shares of common stock at an average price of $29.08 per share for a total of $10.7 million. As of June 30, 2019, a total of approximately $34.1 million remained available for future use under the share repurchase program.
As a result of its latest performance is adjusting its financial outlook for 2019 as follows:
- Total consolidated revenue is now expected to be between $477 million and $482 million representing growth of 5% to 6%, compared with $469 million to $476 million previously estimated.
- Adjusted earnings per common share is expected to be between $1.92 and $1.98 representing growth of 4% to 8% from $1.84 in 2018, compared with $1.84 to $1.92 previously estimated.
- Capital expenditures are now anticipated to range between $50 million and $55 million, compared with $40 million to $45 million previously estimated, and reflects increases related to new contracts in Latin America and a hardware refresh.
