EVERTEC reports 2% revenue drop in 4Q17
EVERTEC Inc. announced results for the fourth quarter and full year ended Dec. 31, 2017, reflecting a 2 percent revenue drop, to $99.6 million, during the three-month period, but a 5 percent increase to $407.1 million for the 12-month period.
GAAP net income attributable to common shareholders was $5.8 million, or $0.08 per diluted share for the quarter and $55.1 million, or $0.76 per diluted share for the year 2017.
Adjusted EBITDA decreased 22 percent to $37 million during the fourth quarter, and decreased 5 percent to $178 million during the 12-month period reported.
Meanwhile, adjusted earnings per common share was $0.24, or a 44 percent decline during the last quarter of the year, and $1.47, or a 12 percent decline for the year. In 2017 EVERTEC returned $29 million to shareholders in share repurchases and dividends, the company announced.
“We executed well in the fourth quarter and exceeded the high end of our full year 2017 revenue guidance range, as fourth quarter transaction volume was stronger than previously expected in Puerto Rico,” EVERTEC CEO Mac Schuessler said.
“Reflecting on 2017, we made significant progress on our core growth initiatives, including advancing our Latin American expansion strategy through acquisitions and recent customer wins,” he said.
“Looking to 2018, while the post-hurricane economy in Puerto Rico has improved, many uncertainties still remain and are reflected in our 2018 financial outlook,” he said.
“We will continue to work to restore our customers’ operations in Puerto Rico and remain committed to supporting our community as the island rebuilds. At the same time, we are focused on capitalizing on our expanded opportunities in Latin America,” he added.
EVERTEC’s financial outlook for 2018 is as follows:
- Total consolidated revenue between $411 million and $425 million representing growth of 1 to 5 percent;
- Adjusted earnings per common share guidance of $1.25 to $1.41 representing a range of -15 percent to -4 percent as compared to $1.47 in 2017;
- Capital expenditures ranging between $35 million and $40 million; and,
- Effective tax rate ranging between 11 percent to 13 percent.