EVERTEC, Inc. (NYSE:EVTC) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 01, 2018 • 04:30 pm ET


EVERTEC, Inc. (NYSE:EVTC) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Good afternoon, everyone, and welcome to the EVERTEC's First Quarter 2018 Earnings Conference Call. Today's conference call is being recorded. At this time, I would like to turn the call over to Kay Sharpton, Vice President of Investor Relations. Please go ahead.

Kay Sharpton

Thank you and good afternoon. With me today are Mac Schuessler, our President and Chief Executive Officer, and Peter Smith, our Chief Financial Officer.

A replay of this call will be available until Tuesday, May 8. Access information for the replay is listed in today's financial release, which is available on our website under Investor Relations section of evertecinc.com. For those listening to the replay, this call was held on May 1.

Please note, there is a presentation that accompanies this conference call, and it is accessible in the Investor Relations section of our website.

Before we begin, I'd like to remind everyone that this call may contain forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These forward-looking statements about our expectations for future performance are subject to known and unknown risks and uncertainties. EVERTEC cautions that these statements are not guarantees of future performance.

All forward-looking statements made today reflect our current expectations only, and we undertake no obligation to update any statements to reflect the events that occur after this call. Please refer to the company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission for factors that could cause our actual results to differ materially from any forward-looking statements.

During today's call, management will provide certain information that will constitute non-GAAP financial measures under SEC rules, such as adjusted EBITDA, adjusted net income, adjusted earnings per common share. Reconciliation to GAAP measures and certain additional information are also included in today's earnings release and related supplemental slides.

I'll now hand the call over to Mac.

Morgan Schuessler

Thanks, Kay, and good afternoon, everyone. It's a pleasure to speak with you today. We're very pleased that our results for the first quarter of 2018 exceeded our expectations. We benefited from Puerto Rico's increased rebuilding and recovering activity, which drove increased sales volume and margin growth progressively over the quarter.

Beginning on Slide 4, I'll cover some of the quarter's financial highlights and provide you with an update on recent developments. Total revenue was $110 million, an increase of 9% compared to 2017, which was stronger than anticipated due to increased sales volume driven by a significant increase in the average ticket and an improved net revenue mix.

Additionally, our initiatives to manage expenses helped us to deliver adjusted EBITDA of $54 million, up 10% over the prior year, adjusted earnings per common share was $0.47, an increase of 4% compared to last year. We generated significant operating cash flow in the quarter of more than $30 million or $5 million above last year. Given the quarter results and our expectations for the remainder of the year, we are increasing our guidance for the full year.

Before I provide more