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Noteworthy Stock: EVERTEC, Inc. (NYSE: EVTC)

On Wednesday EVERTEC, Inc. (NYSE: EVTC) has shown downward move of -1.56% and ended the last trade at $22.05. The trading volume was recorded to 647,306 shares as compared to average traded volume of 699,939 shares.

EVERTEC, Inc. (EVTC) recently reported results for the first quarter ended March 31, 2018.

First Quarter 2018 and Recent Highlights

  • Revenue grew 9% to $110.3M
  • GAAP Net Income attributable to ordinary shareholders was $23.0M or $0.31 per diluted share flat when contrast with the previous year
  • Adjusted EBITDA raised 10% to $54.0M
  • Adjusted earnings per ordinary share was $0.47, an raise of 4%

Mac Schuessler, President and Chief Executive Officer, stated “We are very happy with our first quarter financial results that importantly exceeded our expectations. We are encouraged by the recovering sales volumes in Puerto Rico, the positive contribution of our PayGroup acquisition and our continued solid execution. Because of our strong first quarter results and our expectations of continued elevated spending driven by relief programs and insurance proceeds in Puerto Rico, we have raised our 2018 guidance. ”

First Quarter 2018 Results

Revenue. Total revenue for the quarter ended March 31, 2018 was $110.3M an raise of 9% contrast with $101.3M in the previous year. Revenue growth in the quarter reflected the impact of the acquisition of PayGroup as well as elevated sales volumes in Puerto Rico driven by post-hurricane recovery activity, federal relief and benefit programs and insurance proceeds.

Net Income attributable to ordinary shareholders. For the quarter ended March 31, 2018, GAAP Net Income attributable to ordinary shareholders was $23.0M, or $0.31 per diluted share, flat as contrast to the previous year.

Adjusted EBITDA. For the quarter ended March 31, 2018, Adjusted EBITDA was $54.0M, an raise of 10% contrast to the previous year. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of total revenues) raised 40 basis points to 48.9% contrast with 48.5% in the previous year. The raise in Adjusted EBITDA margin was primarily driven by revenue mix changes, the contribution of PayGroup as well as expense management actions.

Adjusted Net Income. For the quarter ended March 31, 2018, Adjusted Net Income was $34.6M, an raise of 5% contrast with $33.0M in the previous year and included the impact of raised interest expense and a higher tax rate in the current year. Adjusted earnings per ordinary share was $0.47, an raise of 4% as contrast to $0.45 in the previous year.

Share Repurchases

During the three months ended March 31, 2018, the Company did not repurchase stock and a total of about $72M remains authorized and accessible for future repurchases under its share repurchase program. The Company may repurchase shares in the open market, through an accelerated share repurchase program or in privately negotiated transactions, subject to business opportunities and other factors.

Debt Repayment and Reduction in Revolving Loan Facility in April

On April 17, 2018, the Company paid the final installment of its 2018 Term Loan A of $26M with a combination of cash on hand and a revolver draw. After this payment, Long-term debt was reduced to about $582M. In addition, on the same date, $35M of the Revolving Facility expired and the total borrowing capacity of the Facility is $65M.

EVTC price volatility for a month noted as 2.03% however its price volatility for a week documented as 1.93%. The corporation holds 72.78 million outstanding shares and its 60.60 million shares were floated in the market. The stock established a negative trend of -2.86% in last week and indicated rise of 2.08% in previous month.


Paul Kiefer

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I am Paul Kiefer and I have over 13 years experience in the Technology industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking. Address:  3838 Davis Avenue, San Francisco, CA 94104 Email:  Paul @analystsmedia.com Contact Number:  (1) 707-741-5727