EVERTEC (EVTC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $212.0 million, up 27% year-over-year, driven by the Sinqia acquisition, robust Puerto Rico performance, and organic growth across all segments.

• Adjusted EBITDA rose 16% to $86.1 million, with a margin of 40.6%, slightly lower due to Sinqia's lower margin profile.

• Adjusted EPS increased 17% to $0.83, exceeding expectations due to higher revenue, strong margins, and a lower tax rate.

• GAAP Net Income attributable to common shareholders was $31.9 million, or $0.49 per diluted share, up 13% year-over-year.

• Completed a $70 million accelerated share repurchase, retiring nearly 2 million shares by July 2024.

Financial highlights

• Adjusted net income was $53.8 million, up 15% year-over-year.

• Operating cash flow for the first half was $131.3 million; liquidity stood at $451.7 million as of June 30, 2024.

• Capital expenditures were $56.3 million through Q2, with full-year CapEx expected at $85 million.

• Net debt to trailing 12-month Adjusted EBITDA was 2.28x as of June 30, 2024, up from 0.86x a year ago.

• Cash and cash equivalents at June 30, 2024 were $257.7 million; long-term debt was $936.0 million.

Outlook and guidance

• 2024 revenue guidance is $846–$854 million, representing 22–23% growth.

• Adjusted EPS guidance raised to $2.98–$3.07, up 5.7–9% from 2023.

• Adjusted EBITDA margin expected around 39% for the full year; CapEx forecast at $85 million.

• Effective tax rate projected at approximately 5% for 2024, down from 6–7% in 2023.

• Management expects continued growth from electronic payment adoption, technology outsourcing, and Sinqia integration.