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/ Wednesday, November 3, 2021
Evertec Reports Third Quarter 2021 Results Merchants show healthy sales volume growth
E Rosario Fajardo
rfajardo@wjournalpr.com
@RosarioWJournal
vertec Inc. announced that its revenue increased 7 percent to $145.9 million for the third quarter (Q3) ended Sept. 30, 2021 from the $136.5 million of the prior year quarter. “We are pleased to have delivered strong third quarter results, driven by continued robust payment volume growth in both Puerto Rico and Latin America. We remain focused on innovation and execution on new contracts, and this has led to expansion in existing markets,” said Mac Schuessler, the company’s president and CEO. “In Puerto Rico, the continued effect from federal funds, increased digital usage and return to some pre-COVID seasonality drove strong transaction volumes. In Latin America, we are seeing strong growth, driven by both recent implementations as well as organic growth from existing clients,” he stated during the earnings conference call. Specifically, Evertec reported that it also continues to benefit from increased transactions in Puerto Rico, driven by the continued effect from the inflow of federal funds to fight the coronavirus Evertec’s Mac Schuessler >Courtesy pandemic, and increased revenue from its digital payment solutions. We remain pleased with the The company is a leading fullgrowth of ATH Movil, which was service transaction processing up 24 percent for the quarter business in Puerto Rico, the as we continue to see a shift in Caribbean, and Latin America. preference to digital payment Detailing Evertec’s update on methods,” he added. Merchant the economic situation in Puerto Turning to the operating acquiring sales Rico, Schuessler said: “We saw environment in Puerto Rico, volume growth was continued strong volume and Schuessler reported that approximately 23 revenue growth in the third vaccination rates continue to percent year-overquarter. The ongoing effect from increase with over 70 percent year. And average the inflow of Federal stimulus of the population now fully ticket is coming down and EBITDA (earnings before vaccinated, the highest level on a year-over-year interest, taxes, depreciation and of any U.S. state or territory as basis, but remains amortization) funds earlier in the reported by the U.S. Centers for above pre-pandemic year was a major driver of growth Disease Control and Prevention. levels. as well as a pick up and back-to“Hospitalization rates are down school spending in August, a sign over 80 percent from Delta that we are returning to prevariant peaks back in August COVID spending patterns. and this is moving us closer to a “Merchant acquiring sales volume growth was more normal environment with the government approximately 23 percent year-over-year. And continuing to loosen restrictions. The third quarter average ticket is coming down on a year-over-year also had the highest hotel occupancy rates since basis, but remains above pre-pandemic levels. the beginning of the pandemic and we saw the
In fact,
first cruise ship docked in Puerto Rico since March of 2020,” he noted. In other news, Evertec reported that revenue growth in Latin America was driven mainly by client implementations in the beginning of the current year, organic growth from existing customers and the continued expansion of its Place to Pay e-commerce platform. These increases were partially offset by the one-time impact in the prior year quarter from a contract with the Puerto Rico Department of Education, the company noted.
Other Q3 2021 highlights include:
GAAP (generally accepted accounting principles) Net Income attributable to common shareholders was $35.3 million, an increase of $0.9 million compared to the prior year. Adjusted Net Income was $45.0 million, a decrease of 5 percent compared with $47.2 million in the prior year. The decrease was primarily due to a higher effective tax rate driven by certain discrete items in Evertec’s Latin America operations.
