The following is a summary of the EVERTEC, Inc. (EVTC) Q2 2024 Earnings Call Transcript:

Financial Performance:

• EVERTEC reported Q2 2024 revenues of $212 million, marking a 27% increase from the previous year.

• Adjusted EBITDA was $86.1 million, up 16% compared to last year, but the adjusted EBITDA margin decreased to 40.6%.

• Adjusted earnings per share (EPS) increased by 17% year-over-year to $0.83.

• The company managed to lower its interest rate on Term Loan B by 25 basis points, leading to future cost savings.

• Generated operating cash flow of $131 million in the first half of the year.

Business Progress:

• EVERTEC achieved strong sales volume growth in its Puerto Rico segments and improved revenue performance in the Latin American markets.

• The Sinqia acquisition significantly contributed to revenue, particularly in the Latin America segment.

• Managed to successfully complete a $70 million accelerated share repurchase program, retiring approximately 1.9 million shares.

• Plans for the continued integration of Sinqia and growth initiatives across Latin America.

Opportunities:

• The macroeconomic conditions in Puerto Rico remain favorable, supporting continued organic growth.

• Federal funding acceleration and strong tourism indicators in Puerto Rico present strong business prospects.

• In Latin America, despite overall market softness, there are growth opportunities through strategic focus areas and platform modernizations.

Risks:

• Noted a softer software market in Brazil impacting Sinqia's performance.

• Higher operating depreciation, amortization, and cash interest expenses due to the Sinqia acquisition and related debt.

More details: Evertec IR

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