Evertec reports 8% year-over-year 1Q19 revenue growth
Evertec Inc. announced results for the first quarter ended Mar. 31, 2019, reporting $118.8 million in revenue, an 8% growth compared with $110.3 million in the prior year.
Revenue increase in the quarter reflected growth from elevated sales volumes in Puerto Rico and increased core banking transactions in part due to last year’s hurricane impacted results, the company stated.
“We’re pleased with our financial performance during the quarter as well as the execution against our share repurchase program,” Evertec CEO Mac Schuessler said.
“We remain focused on our expansion into Latin America and supporting our clients in Puerto Rico,” he said.
Evertec said revenue growth was also the result of an increase in network services related to new managed services projects as well as one-time revenue related to an electronic benefits service contract of approximately $2.7 million.
For the quarter ended Mar. 31, 2019, GAAP net income attributable to common shareholders was $26.6 million, or $0.36 per diluted share, an increase of $3.6 million or $0.05 per diluted share as compared to the prior year.
Adjusted EBITDA was $57.6 million, an increase of 7% compared to the prior year’s first quarter. Meanwhile, adjusted net income was $37.1 million for the first quarter, an increase of 7% compared with $34.6 million in the prior year.
During the three months ended Mar. 31, 2019, Evertec repurchased a total of 0.6 million shares of common stock at an average price of $28.27 per share for a total of $17.5 million. As of the end of the first quarter, some $44.9 million remained available for future use under the company’s share repurchase program, it confirmed.
As a result of its first quarter results, Evertec is adjusting its financial outlook for 2019 as follows:
- Total consolidated revenue is now expected to be between $469 million and $476 million representing growth of 3% to 5%, compared with $464 million and $476 million previously
- Adjusted earnings per common share is now expected to be between $1.84 and $1.92 representing growth of 0% to 4% from $1.84 in 2018, compared with $1.80 to $1.90 previously
- Capital expenditures continue to range between $40 million and $45 million
- Non-GAAP effective tax rate of approximately 13%.