Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 20, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35872 | |
Entity Registrant Name | EVERTEC, Inc. | |
Entity Incorporation, State or Country Code | PR | |
Entity Tax Identification Number | 66-0783622 | |
Entity Address, Address Line One | Cupey Center Building, | |
Entity Address, Address Line Two | Road 176, Kilometer 1.3, | |
Entity Address, City or Town | San Juan, | |
Entity Address, State or Province | PR | |
Entity Address, Postal Zip Code | 00926 | |
City Area Code | 787 | |
Local Phone Number | 759-9999 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | EVTC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 71,969,856 | |
Entity Central Index Key | 0001559865 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 244,129 | $ 202,649 |
Restricted cash | 18,664 | 18,456 |
Accounts receivable, net | 95,548 | 95,727 |
Prepaid expenses and other assets | 44,733 | 42,214 |
Total current assets | 403,074 | 359,046 |
Debt securities available-for-sale, at fair value | 3,060 | 0 |
Investment in equity investee | 11,248 | 12,835 |
Property and equipment, net | 42,780 | 43,538 |
Operating lease right-of-use asset | 22,625 | 27,538 |
Goodwill | 394,536 | 397,670 |
Other intangible assets, net | 219,615 | 219,909 |
Deferred tax asset | 4,993 | 5,730 |
Net investment in leases | 178 | 301 |
Other long-term assets | 6,384 | 6,012 |
Total assets | 1,108,493 | 1,072,579 |
Current Liabilities: | ||
Accrued liabilities | 68,555 | 58,033 |
Accounts payable | 34,069 | 43,348 |
Contract liability | 21,304 | 24,958 |
Income tax payable | 4,597 | 6,573 |
Current portion of long-term debt | 18,375 | 14,250 |
Operating lease payable | 5,900 | 5,830 |
Total current liabilities | 152,800 | 152,992 |
Long-term debt | 449,435 | 481,041 |
Deferred tax liability | 1,819 | 2,748 |
Contract liability - long term | 31,109 | 31,336 |
Operating lease liability - long-term | 17,511 | 22,402 |
Derivative liability | 18,104 | 25,578 |
Other long-term liabilities | 9,785 | 14,053 |
Total liabilities | 680,563 | 730,150 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity | ||
Preferred stock, par value $0.01; 2,000,000 shares authorized; none issued | 0 | 0 |
Common stock, par value $0.01; 206,000,000 shares authorized; 71,969,856 shares issued and outstanding as of September 30, 2021 (December 31, 2020 - 72,137,678) | 719 | 721 |
Additional paid-in capital | 3,708 | 5,340 |
Accumulated earnings | 468,533 | 379,934 |
Accumulated other comprehensive loss, net of tax | (49,166) | (48,254) |
Total EVERTEC, Inc. stockholders’ equity | 423,794 | 337,741 |
Non-controlling interest | 4,136 | 4,688 |
Total equity | 427,930 | 342,429 |
Total liabilities and equity | $ 1,108,493 | $ 1,072,579 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Common stock par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 206,000,000 | 206,000,000 |
Common stock issued (in shares) | 71,969,856 | 72,137,678 |
Common stock outstanding (in shares) | 71,969,856 | 72,137,678 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues (affiliates Note 15) | $ 145,883 | $ 136,507 | $ 434,559 | $ 376,386 |
Operating costs and expenses | ||||
Cost of revenues, exclusive of depreciation and amortization | 62,995 | 57,854 | 182,180 | 168,900 |
Selling, general and administrative expenses | 17,126 | 16,682 | 49,980 | 51,528 |
Depreciation and amortization | 18,745 | 18,127 | 56,091 | 53,761 |
Total operating costs and expenses | 98,866 | 92,663 | 288,251 | 274,189 |
Income from operations | 47,017 | 43,844 | 146,308 | 102,197 |
Non-operating income (expenses) | ||||
Interest income | 504 | 429 | 1,343 | 1,165 |
Interest expense | (5,684) | (5,867) | (17,248) | (18,829) |
Earnings of equity method investment | 411 | 202 | 1,307 | 733 |
Other income, net | 146 | 2,486 | 2,719 | 2,766 |
Total non-operating expenses | (4,623) | (2,750) | (11,879) | (14,165) |
Income before income taxes | 42,394 | 41,094 | 134,429 | 88,032 |
Income tax expense | 7,134 | 6,513 | 14,474 | 15,551 |
Net income | 35,260 | 34,581 | 119,955 | 72,481 |
Less: Net (loss) income attributable to non-controlling interest | (54) | 118 | (59) | 323 |
Net income attributable to EVERTEC, Inc.’s common stockholders | 35,314 | 34,463 | 120,014 | 72,158 |
Other comprehensive income (loss), net of tax of $382, $(2), $817 and $(1,087) | ||||
Foreign currency translation adjustments | (6,942) | (3,245) | (7,823) | (10,483) |
Gain (loss) on cash flow hedge | 1,537 | 643 | 6,814 | (11,894) |
Unrealized gain on change in fair value of debt securities available-for-sale | 8 | 0 | 97 | 0 |
Total comprehensive income attributable to EVERTEC, Inc.’s common stockholders | $ 29,917 | $ 31,861 | $ 119,102 | $ 49,781 |
Net income per common share - basic attributable to EVERTEC, Inc.’s common stockholders (in usd per share) | $ 0.49 | $ 0.48 | $ 1.66 | $ 1 |
Net income per common share - diluted attributable to EVERTEC, Inc.’s common stockholders (in usd per share) | $ 0.48 | $ 0.47 | $ 1.65 | $ 0.99 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Other comprehensive income (loss), tax | $ 382 | $ (2) | $ 817 | $ (1,087) |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Accumulated Earnings | Accumulated EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Non-Controlling Interest |
Beginning balance (in shares) at Dec. 31, 2019 | 72,000,261 | |||||||
Beginning balance at Dec. 31, 2019 | $ 271,623 | $ (74) | $ 720 | $ 0 | $ 296,476 | $ (74) | $ (30,009) | $ 4,436 |
Changes in Stockholders’ Equity | ||||||||
Share-based compensation recognized | 3,483 | 3,483 | ||||||
Repurchase of common stock (in shares) | (336,022) | |||||||
Repurchase of common stock | (7,300) | $ (3) | (775) | (6,522) | ||||
Restricted stock units delivered (in shares) | 201,066 | |||||||
Restricted stock units delivered | (2,706) | $ 2 | (2,708) | |||||
Net income | 22,275 | 22,211 | 64 | |||||
Cash dividends declared on common stock, $0.05 per share | (3,600) | (3,600) | ||||||
Other comprehensive income (loss) | (21,017) | (20,164) | (853) | |||||
Ending balance (in shares) at Mar. 31, 2020 | 71,865,305 | |||||||
Ending balance at Mar. 31, 2020 | $ 262,684 | $ 719 | 0 | 308,491 | (50,173) | 3,647 | ||
Changes in Stockholders’ Equity | ||||||||
Cash dividends declared (in usd per share) | $ 0.05 | |||||||
Beginning balance (in shares) at Dec. 31, 2019 | 72,000,261 | |||||||
Beginning balance at Dec. 31, 2019 | $ 271,623 | $ (74) | $ 720 | 0 | 296,476 | $ (74) | (30,009) | 4,436 |
Changes in Stockholders’ Equity | ||||||||
Net income | 72,481 | |||||||
Ending balance (in shares) at Sep. 30, 2020 | 71,906,245 | |||||||
Ending balance at Sep. 30, 2020 | 310,208 | $ 719 | 6,552 | 351,252 | (52,386) | 4,071 | ||
Beginning balance (in shares) at Mar. 31, 2020 | 71,865,305 | |||||||
Beginning balance at Mar. 31, 2020 | 262,684 | $ 719 | 0 | 308,491 | (50,173) | 3,647 | ||
Changes in Stockholders’ Equity | ||||||||
Share-based compensation recognized | 3,639 | 3,639 | ||||||
Restricted stock units delivered (in shares) | 2,445 | |||||||
Restricted stock units delivered | (71) | (71) | ||||||
Net income | 15,625 | 15,484 | 141 | |||||
Cash dividends declared on common stock, $0.05 per share | (3,593) | (3,593) | ||||||
Other comprehensive income (loss) | 684 | 389 | 295 | |||||
Ending balance (in shares) at Jun. 30, 2020 | 71,862,860 | |||||||
Ending balance at Jun. 30, 2020 | $ 278,968 | $ 719 | 3,568 | 320,382 | (49,784) | 4,083 | ||
Changes in Stockholders’ Equity | ||||||||
Cash dividends declared (in usd per share) | $ 0.05 | |||||||
Share-based compensation recognized | $ 3,663 | 3,663 | ||||||
Repurchase of common stock | (679) | (679) | ||||||
Restricted stock units delivered (in shares) | 43,385 | |||||||
Net income | 34,581 | 34,463 | 118 | |||||
Cash dividends declared on common stock, $0.05 per share | (3,593) | (3,593) | ||||||
Other comprehensive income (loss) | (2,732) | (2,602) | (130) | |||||
Ending balance (in shares) at Sep. 30, 2020 | 71,906,245 | |||||||
Ending balance at Sep. 30, 2020 | $ 310,208 | $ 719 | 6,552 | 351,252 | (52,386) | 4,071 | ||
Changes in Stockholders’ Equity | ||||||||
Cash dividends declared (in usd per share) | $ 0.05 | |||||||
Beginning balance (in shares) at Dec. 31, 2020 | 72,137,678 | 72,137,678 | ||||||
Beginning balance at Dec. 31, 2020 | $ 342,429 | $ 721 | 5,340 | 379,934 | (48,254) | 4,688 | ||
Changes in Stockholders’ Equity | ||||||||
Share-based compensation recognized | 3,380 | 3,380 | ||||||
Repurchase of common stock (in shares) | (382,974) | |||||||
Repurchase of common stock | (14,268) | $ (4) | (1,290) | (12,974) | ||||
Restricted stock units delivered (in shares) | 411,739 | |||||||
Restricted stock units delivered | (8,728) | $ 4 | (7,430) | (1,302) | ||||
Net income | 35,604 | 35,503 | 101 | |||||
Cash dividends declared on common stock, $0.05 per share | (3,605) | (3,605) | ||||||
Other comprehensive income (loss) | 1,195 | 1,576 | (381) | |||||
Ending balance (in shares) at Mar. 31, 2021 | 72,166,443 | |||||||
Ending balance at Mar. 31, 2021 | $ 356,007 | $ 721 | 0 | 397,556 | (46,678) | 4,408 | ||
Changes in Stockholders’ Equity | ||||||||
Cash dividends declared (in usd per share) | $ 0.05 | |||||||
Beginning balance (in shares) at Dec. 31, 2020 | 72,137,678 | 72,137,678 | ||||||
Beginning balance at Dec. 31, 2020 | $ 342,429 | $ 721 | 5,340 | 379,934 | (48,254) | 4,688 | ||
Changes in Stockholders’ Equity | ||||||||
Net income | $ 119,955 | |||||||
Ending balance (in shares) at Sep. 30, 2021 | 71,969,856 | 71,969,856 | ||||||
Ending balance at Sep. 30, 2021 | $ 427,930 | $ 719 | 3,708 | 468,533 | (49,166) | 4,136 | ||
Beginning balance (in shares) at Mar. 31, 2021 | 72,166,443 | |||||||
Beginning balance at Mar. 31, 2021 | 356,007 | $ 721 | 0 | 397,556 | (46,678) | 4,408 | ||
Changes in Stockholders’ Equity | ||||||||
Share-based compensation recognized | 3,855 | 3,855 | ||||||
Repurchase of common stock (in shares) | (231,314) | |||||||
Repurchase of common stock | (10,120) | $ (2) | (3,790) | (6,328) | ||||
Restricted stock units delivered (in shares) | 34,727 | |||||||
Restricted stock units delivered | (65) | (65) | ||||||
Net income | 49,091 | 49,197 | (106) | |||||
Cash dividends declared on common stock, $0.05 per share | (3,608) | (3,608) | ||||||
Other comprehensive income (loss) | 2,884 | 2,909 | (25) | |||||
Ending balance (in shares) at Jun. 30, 2021 | 71,969,856 | |||||||
Ending balance at Jun. 30, 2021 | $ 398,044 | $ 719 | 0 | 436,817 | (43,769) | 4,277 | ||
Changes in Stockholders’ Equity | ||||||||
Cash dividends declared (in usd per share) | $ 0.05 | |||||||
Share-based compensation recognized | $ 3,708 | 3,708 | ||||||
Net income | 35,260 | 35,314 | (54) | |||||
Cash dividends declared on common stock, $0.05 per share | (3,598) | (3,598) | ||||||
Other comprehensive income (loss) | $ (5,484) | (5,397) | (87) | |||||
Ending balance (in shares) at Sep. 30, 2021 | 71,969,856 | 71,969,856 | ||||||
Ending balance at Sep. 30, 2021 | $ 427,930 | $ 719 | $ 3,708 | $ 468,533 | $ (49,166) | $ 4,136 | ||
Changes in Stockholders’ Equity | ||||||||
Cash dividends declared (in usd per share) | $ 0.05 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity (Parenthetical) - $ / shares | Jul. 22, 2021 | Apr. 22, 2021 | Feb. 18, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 |
Statement of Stockholders' Equity [Abstract] | |||||||||
Cash dividends declared on common stock (in usd per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | ||
Net income | $ 119,955 | $ 72,481 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 56,091 | 53,761 |
Amortization of debt issue costs and accretion of discount | 1,423 | 1,530 |
Operating lease amortization | 4,443 | 4,377 |
Provision for expected credit losses and sundry losses | 1,428 | 1,732 |
Deferred tax benefit | (1,119) | (2,082) |
Share-based compensation | 10,943 | 10,785 |
Gain from sale of assets | (778) | 0 |
Loss on disposition of property and equipment and impairment of intangible | 1,168 | 753 |
Earnings of equity method investment | (1,307) | (733) |
Dividend received from equity method investment | 1,183 | 0 |
(Increase) decrease in assets: | ||
Accounts receivable, net | (593) | (7,096) |
Prepaid expenses and other assets | (3,070) | (7,138) |
Other long-term assets | (339) | 284 |
(Decrease) increase in liabilities: | ||
Accrued liabilities and accounts payable | (1,425) | (7,969) |
Income tax payable | (2,685) | 1,548 |
Contract liability | (2,654) | 2,350 |
Operating lease liabilities | (4,107) | (5,720) |
Other long-term liabilities | (2,702) | 2,296 |
Total adjustments | 55,900 | 48,678 |
Net cash provided by operating activities | 175,855 | 121,159 |
Cash flows from investing activities | ||
Additions to software | (31,004) | (23,521) |
Acquisition of customer relationship | (14,750) | 0 |
Property and equipment acquired | (12,388) | (13,402) |
Proceeds from sales of property and equipment | 805 | 3 |
Acquisition of available-for-sale debt securities | (2,968) | 0 |
Net cash used in investing activities | (60,305) | (36,920) |
Cash flows from financing activities | ||
Statutory withholding taxes paid on share-based compensation | (8,793) | (3,456) |
Repayment of short-term borrowings for purchase of equipment and software | (1,603) | (1,553) |
Dividends paid | (10,811) | (10,786) |
Repurchase of common stock | (24,388) | (7,300) |
Repayment of long-term debt | (28,482) | (27,685) |
Net cash used in financing activities | (74,077) | (50,780) |
Effect of foreign exchange rate on cash, cash equivalents and restricted cash | 215 | (2,384) |
Net increase in cash, cash equivalents and restricted cash | 41,688 | 31,075 |
Cash, cash equivalents and restricted cash at beginning of the period | 221,105 | 131,121 |
Cash, cash equivalents and restricted cash at end of the period | 262,793 | 162,196 |
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash and cash equivalents | 244,129 | 144,147 |
Restricted cash | 18,664 | 18,049 |
Cash, cash equivalents and restricted cash | 262,793 | 162,196 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 16,289 | 18,081 |
Cash paid for income taxes | 19,468 | 15,257 |
Supplemental disclosure of non-cash activities: | ||
Payable due to vendor related to equipment and software acquired | $ 739 | $ 1,486 |
The Company and Basis of Presen
The Company and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
The Company and Basis of Presentation | The Company and Basis of Presentation The Company EVERTEC, Inc. and its subsidiaries (collectively the “Company,” or “EVERTEC”) is a leading full-service transaction-processing business in Puerto Rico, the Caribbean and Latin America. The Company is based in Puerto Rico and provides a broad range of merchant acquiring, payment services and business process management services. The Company provides services across 26 countries in the region. EVERTEC owns and operates the ATH network, one of the leading personal identification number ("PIN") debit networks in Latin America. EVERTEC manages a system of electronic payment networks and offers a comprehensive suite of services for core bank, cash processing and fulfillment in Puerto Rico. In addition, EVERTEC offers technology outsourcing in all the regions the Company serves. EVERTEC serves a broad and diversified customer base of leading financial institutions, merchants, corporations and government agencies with solutions that are essential to their operations, enabling them to issue, process and accept transactions securely. Basis of Presentation The unaudited condensed consolidated financial statements of EVERTEC have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the accompanying unaudited condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited condensed consolidated financial statements. Actual results could differ from these estimates. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted from these statements pursuant to the rules and regulations of the Securities and Exchange Commission and, accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the Audited Consolidated Financial Statements of the Company for the year ended December 31, 2020, included in the Company’s 2020 Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements, prepared in accordance with GAAP, contain all adjustments necessary for a fair presentation. Intercompany accounts and transactions are eliminated in consolidation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Issued Prior to 2021 and Not Yet Adopted In March 2020, the FASB issued updated guidance for ASC Topic 848, Reference Rate Reform , to provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met for a limited period of time in order to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this update are elective and apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments to this update are effective for all entities as of March 12, 2020 through December 31, 2022. The adoption of this guidance will not have an impact on the Company's unaudited condensed consolidated financial statements. |
Debt Securities
Debt Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities | Debt Securities Accounting policy Debt securities available-for-sale are accounted for under the provisions of ASC 320 Investments – Debt and Equity Securities, which requires that debt securities available-for-sale ("AFS") be carried at fair value on the Company’s unaudited condensed consolidated balance sheets with unrealized gains (losses) recorded through other comprehensive income (“OCI”). Debt securities in an unrealized loss position which the Company intends to sell or for which it is more likely than not that the Company will be required to sell before recovery of the amortized cost basis, are written down to fair value through income. Quarterly, for debt securities in an unrealized loss position that the Company does not intend or will, more likely than not, not be required to sell, the Company evaluates if the decline in fair value has resulted from credit losses or other factors. If it is determined that the decline in fair value is related to credit losses, the Company records an allowance for credit losses, limited to the amount by which the fair value is less than the amortized cost basis. If the Company determines that the decline in value is related to factors other than credit, the Company recognizes the impairment through OCI. Debt securities were purchased close to the final trading day of the quarter ended March 31, 2021 and are held by a trust in the Costa Rica National Bank as a collateral requirement for settlement activities. The Company may substitute securities as needed but must maintain certain levels of collateral based on transaction volumes. The amortized cost, gross unrealized gains and losses recorded in OCI, and estimated fair value as of September 30, 2021 were as follows: September 30, 2021 (In thousands) Gross unrealized Amortized cost Gains Losses Fair Value Costa Rica Government Obligations After 1 to 5 years $ 2,963 97 — $ 3,060 |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net consists of the following: (In thousands) Useful life September 30, 2021 December 31, 2020 Buildings 30 $ 1,394 $ 1,437 Data processing equipment 3 - 5 132,832 124,897 Furniture and equipment 3 - 20 7,372 6,691 Leasehold improvements 5 -10 3,126 3,098 144,724 136,123 Less - accumulated depreciation and amortization (103,160) (93,826) Depreciable assets, net 41,564 42,297 Land 1,216 1,241 Property and equipment, net $ 42,780 $ 43,538 Depreciation and amortization expense related to property and equipment for the three and nine months ended September 30, 2021 amounted to $4.2 million and $13.0 million, respectively, compared to $4.4 million and $12.9 million for the corresponding periods in 2020. During the nine months ended September 30, 2021, the Company recorded a loss on the disposition of damaged POS devices amounting to $0.5 million through cost of revenues. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill, allocated by operating segments, were as follows (see Note 16): (In thousands) Payment Payment Merchant Business Total Balance at December 31, 2020 $ 160,972 $ 52,754 $ 138,121 $ 45,823 $ 397,670 Foreign currency translation adjustments — (3,134) — — (3,134) Balance at September 30, 2021 $ 160,972 $ 49,620 $ 138,121 $ 45,823 $ 394,536 Goodwill is tested for impairment on an annual basis as of August 31, or more often if events or changes in circumstances indicate there may be impairment. The Company may test for goodwill impairment using a qualitative or a quantitative analysis. In the quantitative analysis, the Company compares the estimated fair value of the reporting units to their carrying values, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired. If the fair value does not exceed the carrying value, an impairment loss is recorded for the excess of the carrying value over the fair value, limited to the recorded balance of goodwill. No impairment losses were recognized for the periods ended September 30, 2021 or 2020. The carrying amount of other intangible assets at September 30, 2021 and December 31, 2020 was as follows: September 30, 2021 (In thousands) Useful life in years Gross Accumulated Net carrying Customer relationships 8 - 14 $ 358,191 $ (266,047) $ 92,144 Trademarks 2 - 15 41,926 (36,385) 5,541 Software packages 3 - 10 317,799 (210,946) 106,853 Non-compete agreement 15 56,539 (41,462) 15,077 Other intangible assets, net $ 774,455 $ (554,840) $ 219,615 December 31, 2020 (Dollar amounts in thousands) Useful life in years Gross Accumulated Net carrying Customer relationships 8 - 14 $ 343,981 $ (246,088) $ 97,893 Trademarks 2 - 15 42,036 (35,467) 6,569 Software packages 3 - 10 289,205 (191,662) 97,543 Non-compete agreement 15 56,539 (38,635) 17,904 Other intangible assets, net $ 731,761 $ (511,852) $ 219,909 During the first quarter of 2021, the Company acquired a customer relationship in Puerto Rico amounting to $14.8 million that will be amortized over ten years. Revenue and expenses in connection with this customer relationship are included as part of the Merchant Acquiring segment. Amortization expense related to other intangibles for the three and nine months ended September 30, 2021 amounted to $14.5 million and $43.0 million, respectively, compared to $13.7 million and $40.8 million for the corresponding periods in 2020. During the nine months period ended September 30, 2021, the Company recorded an impairment charge through cost of revenues amounting to $0.6 million for a software solution that will no longer be used. The impairment charge affected the Company’s Payment Services – Puerto Rico & Caribbean segment. The estimated amortization expense of the balances outstanding at September 30, 2021 for the next five years is as follows: (Dollar amounts in thousands) Remaining 2021 $ 14,146 2022 51,237 2023 45,918 2024 34,154 2025 11,731 |
Debt and Short-Term Borrowings
Debt and Short-Term Borrowings | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Short-Term Borrowings | Debt and Short-Term Borrowings Total debt at September 30, 2021 and December 31, 2020 follows: (In thousands) September 30, 2021 December 31, 2020 2023 Term A Loan bearing interest at a variable interest rate (LIBOR plus applicable margin (1)(2) ) $ 173,519 $ 188,788 2024 Term B Loan bearing interest at a variable interest rate (LIBOR plus applicable margin (1)(3) ) 294,291 306,503 Notes payable due January 1, 2022 (1) 739 1,443 Total debt $ 468,549 $ 496,734 (1) Net of unaccreted discount and unamortized debt issue costs, as applicable. (2) Applicable margin of 1.75% at September 30, 2021 and December 31, 2020. (3) Subject to a minimum rate ("LIBOR floor") of 0% plus applicable margin of 3.50% at September 30, 2021 and December 31, 2020. Secured Credit Facilities On November 27, 2018, EVERTEC and EVERTEC Group, LLC ("EVERTEC Group") (collectively, the “Borrower”) entered into a credit agreement providing for the secured credit facilities, consisting of a $220.0 million term loan A facility that matures on November 27, 2023 (the “2023 Term A Loan"), a $325.0 million term loan B facility that matures on November 27, 2024 (the “2024 Term B Loan”), and a $125.0 million revolving credit facility (the “Revolving Facility”) that matures on November 27, 2023, with a syndicate of lenders and Bank of America, N.A. (“Bank of America”), as administrative agent, collateral agent, swingline lender and line of credit issuer (collectively the “2018 Credit Agreement”). The 2018 Credit Agreement requires mandatory repayment of outstanding principal balances based on a percentage of excess cash flow, provided that no such payment shall be due if the resulting amount of the excess cash flow multiplied by the applicable percentage is less than $10 million. On March 8, 2021 and March 5, 2020, in connection with this mandatory repayment clause, the Company repaid $17.8 million and $17.0 million, respectively, as a result of excess cash flow calculation performed for the years ended December 31, 2020 and 2019, respectively. The unpaid principal balance at September 30, 2021 of the 2023 Term A Loan and the 2024 Term B Loan was $174.4 million and $296.7 million, respectively. The additional borrowing capacity under our Revolving Facility at September 30, 2021 was $119.1 million. The Company issues letters of credit against the Revolving Facility which reduce the additional borrowing capacity of the Revolving Facility. Notes Payable In December 2019, EVERTEC Group entered into two non-interest bearing financing agreements amounting to $2.4 million to purchase software and maintenance. As of September 30, 2021 and December 31, 2020, the outstanding principal balance of the notes payable was $0.8 million and $1.5 million, respectively. These notes are included in accounts payable in the Company's unaudited condensed consolidated balance sheets. Interest Rate Swaps As of September 30, 2021, the Company has an interest rate swap agreement, entered into in December 2018, which converts a portion of the interest rate payments on the Company's 2024 Term B Loan from variable to fixed: Swap Agreement Effective date Maturity Date Notional Amount Variable Rate Fixed Rate 2018 Swap April 2020 November 2024 $250 million 1-month LIBOR 2.89% The Company has accounted for this agreement as a cash flow hedge. As of September 30, 2021 and December 31, 2020, the carrying amount of the derivative included on the Company's unaudited condensed consolidated balance sheets was $18.1 million and $25.6 million, respectively. The fair value of this derivative is estimated using Level 2 inputs in the fair value hierarchy on a recurring basis. Refer to Note 8 for disclosure of losses recorded on cash flow hedging activities. During the three and nine months ended September 30, 2021, the Company reclassified losses of $1.8 million and $5.3 million, respectively, from accumulated other comprehensive loss into interest expense compared to $1.7 million and $3.3 million for the corresponding periods in 2020. Based on current LIBOR rates, the Company expects to reclassify losses of $7.0 million from accumulated other comprehensive loss into interest expense over the next 12 months. The cash flow hedge is considered highly effective. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements Recurring Fair Value Measurements Debt Securities Available for Sale The fair value of debt securities is estimated based on observable inputs, therefore classified as a Level 2 asset within the fair value hierarchy. The fair value of debt securities at September 30, 2021 was $3.1 million. Derivatives Instruments The fair value of the Company's interest rate swap is estimated using Level 2 inputs under the fair value hierarchy. This derivative was in a liability position with a balance of $18.1 million and $25.6 million as of September 30, 2021 and December 31, 2020, respectively. The following table presents the carrying value, as applicable, and estimated fair value for financial instruments at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 (In thousands) Carrying Fair Carrying Fair Financial assets: Costa Rica government obligations $ 3,060 $ 3,060 $ — $ — Financial liabilities: Interest rate swap 18,104 18,104 25,578 25,578 2023 Term A Loan 173,519 172,402 188,788 186,678 2024 Term B Loan 294,291 296,657 306,503 308,339 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | Equity Accumulated Other Comprehensive Loss The following table provides a summary of the changes in the balances of accumulated other comprehensive loss for the nine months ended September 30, 2021: (In thousands) Foreign Currency Cash Flow Hedges Unrealized Gains on Debt Securities AFS Total Balance - December 31, 2020, net of tax $ (24,842) $ (23,412) — $ (48,254) Other comprehensive (loss) income before reclassifications (7,823) 1,540 97 (6,186) Effective portion reclassified to net income — 5,274 — 5,274 Balance - September 30, 2021, net of tax $ (32,665) $ (16,598) $ 97 $ (49,166) |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation Long-term Incentive Plan ("LTIP") In the first quarter of 2019, 2020 and 2021, the Compensation Committee (the "Compensation Committee") of the Company's Board of Directors ("Board") approved grants of restricted stock units (“RSUs”) to executives and certain employees pursuant to the 2019 LTIP, 2020 LTIP and 2021 LTIP, respectively, all under the terms of the Company's 2013 Equity Incentive Plan. Under the LTIPs, the Company granted RSUs to eligible participants as time-based awards and/or performance-based awards. The vesting of the RSUs is dependent upon service and/or performance conditions as defined in the grants. Employees that received time-based awards with service conditions are entitled to receive a specific number of shares of the Company’s common stock on the vesting date if the employee provides services to the Company through the vesting date. Time-based awards vest over a period of three years in substantially equal installments commencing on the grant date and ending on February 22 of each year for the 2019 LTIP, February 27 of each year for the 2020 LTIP, and March 2 of each year for the 2021 LTIP. For the performance-based awards under the 2019 LTIP, 2020 LTIP, and 2021 LTIP, the Compensation Committee established adjusted earnings before income taxes, depreciation and amortization ("Adjusted EBITDA") as the primary performance measure while maintaining focus on total shareholder return through the use of a market-based total shareholder return ("TSR") performance modifier. The Adjusted EBITDA measure is based on annual targets and can produce a payout between 0% and 200%. The TSR modifier adjusts the shares earned based on the core Adjusted EBITDA performance upwards or downwards (+/- 25%) based on the Company’s relative TSR at the end of the three-year performance period as compared to the companies in the Russell 2000 Index. The Adjusted EBITDA performance measure will be calculated for the one-year period commencing on January 1 of the year of the grant and ending on December 31 of the same year, relative to the goals set by the Compensation Committee for this same period. The shares earned will be subject to an additional two-year service vesting period and will vest on February 22, 2022 for the 2019 LTIP, February 27, 2023 for the 2020 LTIP, and March 2, 2024 for the 2021 LTIP. Unless otherwise specified in the award agreement, or in an employment agreement, awards are forfeited if the employee voluntarily ceases to be employed by the Company prior to vesting. The following table summarizes nonvested RSUs activity for the nine months ended September 30, 2021: Nonvested RSUs Shares Weighted-average Nonvested at December 31, 2020 1,093,515 $ 27.88 Granted 705,970 31.93 Vested (683,706) 20.95 Forfeited (27,845) 33.37 Nonvested at September 30, 2021 1,087,934 $ 34.71 For the three and nine months ended September 30, 2021, the Company recognized $3.7 million and $10.9 million of share-based compensation expense, compared with $3.7 million and $10.8 million for the corresponding period in 2020. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Disaggregation of Revenue The Company disaggregates revenue from contracts with customers into primary geographical markets, nature of the products and services, and timing of transfer of goods and services. The Company's operating segments are determined by the nature of the products and services the Company provides and the primary geographical markets in which the Company operates. Revenue disaggregated by segment is discussed in Note 16, Segment Information. In the following tables, revenue for each segment, excluding intersegment revenues, is disaggregated by timing of revenue recognition for the periods indicated. Three months ended September 30, 2021 (In thousands) Payment Services - Puerto Rico & Caribbean Payment Services - Latin America Merchant Acquiring, net Business Solutions Total Timing of revenue recognition Products and services transferred at a point in time $ 30 $ 449 $ — $ 446 $ 925 Products and services transferred over time 25,712 23,807 37,606 57,833 144,958 $ 25,742 $ 24,256 $ 37,606 $ 58,279 $ 145,883 Three months ended September 30, 2020 (In thousands) Payment Services - Puerto Rico & Caribbean Payment Services - Latin America Merchant Acquiring, net Business Solutions Total Timing of revenue recognition Products and services transferred at a point in time $ 43 $ 357 $ — $ 4,824 $ 5,224 Products and services transferred over time 23,652 18,791 30,646 58,194 131,283 $ 23,695 $ 19,148 $ 30,646 $ 63,018 $ 136,507 Nine months ended September 30, 2021 (In thousands) Payment Services - Puerto Rico & Caribbean Payment Services - Latin America Merchant Acquiring, net Business Solutions Total Timing of revenue recognition Products and services transferred at a point in time $ 119 $ 1,633 $ — $ 4,048 $ 5,800 Products and services transferred over time 76,642 69,919 106,808 175,390 428,759 $ 76,761 $ 71,552 $ 106,808 $ 179,438 $ 434,559 Nine months ended September 30, 2020 (In thousands) Payment Services - Puerto Rico & Caribbean Payment Services - Latin America Merchant Acquiring, net Business Solutions Total Timing of revenue recognition Products and services transferred at a point in time $ 80 $ 994 $ — $ 7,886 $ 8,960 Products and services transferred over time 63,838 56,487 80,532 166,569 367,426 $ 63,918 $ 57,481 $ 80,532 $ 174,455 $ 376,386 Contract Balances The following table provides information about contract assets from contracts with customers. (In thousands) September 30, 2021 December 31, 2020 Balance at beginning of period $ 2,796 $ 1,191 Services transferred to customers 4,053 3,934 Transfers to accounts receivable (4,246) (2,329) Balance at end of period $ 2,603 $ 2,796 The current portion of contract assets is recorded as part of prepaid expenses and other assets, and the long-term portion is included in other long-term assets in the unaudited condensed consolidated balance sheets. Accounts receivable, net at September 30, 2021 amounted to $95.5 million. Contract liability and contract liability - long term at September 30, 2021 amounted to $21.3 million and $31.1 million, respectively, and may arise when consideration is received or due in advance from customers prior to performance. The contract liability is mainly comprised of upfront fees for implementation or set up activities, including fees charged in pre-production periods in connection with hosting services. Contract liabilities may also arise when consideration is received or due in advance from customers prior to performance. During the three and nine months ended September 30, 2021, the Company recognized revenue of $5.3 million and $20.7 million, respectively that was included in the contract liability at December 31, 2020. During the three and nine months ended September 30, 2020, the Company recognized revenue of $3.9 million and $13.1 million, respectively that was included in the contract liability at December 31, 2019. Transaction price allocated to the remaining performance obligations |
Current Expected Credit Losses
Current Expected Credit Losses | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Current Expected Credit Losses | Current Expected Credit Losses Allowance for Current Expected Credit Losses Trade receivables from contracts with customers are financial assets analyzed by the Company under the expected credit loss model. To measure expected credit losses, trade receivables are grouped based on shared risk characteristics (i.e., the relevant industry sector and customer's geographical location) and days past due (i.e., delinquency status), while considering the following: • Customers in the same geographical location share similar risk characteristics associated with the macroeconomic environment of their country. • The Company has two main industry sectors: private and governmental. The private pool is comprised mainly of leading financial institutions, merchants and corporations, while the governmental pool is comprised of government agencies. The governmental customers possess different risk characteristics than private customers because although all invoices are due 30 days after issuance, governmental customers usually pay within 60 to 90 days after issuance (i.e., approximately 30 to 60 more days than private customers). • The expected credit loss rate is likely to increase as receivables move to older aging buckets. The Company used the following aging categories to estimate the risk of delinquency status: (i) 0 days past due; (ii) 1-30 days past due; (iii) 31-60 days past due; (iv) 61-90 days past due; and (v) over 90 days past due. The credit losses of the Company’s trade receivables have been low historically and most balances are collected within one year. Therefore, the Company determined that the expected loss rates should be calculated using the historical loss rates adjusted by macroeconomic factors. The historical rates are calculated for each of the aging categories used for pooling trade receivables. To determine the collected portion of each bucket, the collection time of each trade receivable is identified, to estimate the proportion of outstanding balances per aging bucket that ultimately will not be collected. This is used to determine the expectation of losses based on the history of uncollected trade receivables once the specific past due period is surpassed. The historical rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of customers to settle the receivables by applying a country risk premium as the forward-looking macroeconomic factor. Specific reserves are established for certain customers for which collection is doubtful. Rollforward of the Allowance for Expected Current Credit Losses The following table provides information about the allowance for expected current credit losses on trade receivables. (In thousands) September 30, 2021 December 31, 2020 Balance at beginning of period $ 2,401 $ 3,460 Current period provision for expected credit losses 534 832 Write-offs (177) (1,894) Recoveries of amounts previously written-off 1 3 Balance at end of period $ 2,759 $ 2,401 The Company does not have a delinquency threshold for writing-off trade receivables. The Company has a formal process for the review and approval of write-offs. Impairment losses on trade receivables are presented as net impairment losses within cost of revenue, exclusive of depreciation and amortization in the unaudited condensed consolidated statements of income and comprehensive income. Subsequent recoveries of amounts previously written-off, when applicable are credited against the allowance for expected current credit losses within accounts receivable, net on the unaudited condensed consolidated balance sheets. |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax The components of income tax expense for the three and nine months ended September 30, 2021 and 2020, respectively, consisted of the following: Three months ended September 30, Nine months ended September 30, (In thousands) 2021 2020 2021 2020 Current tax provision $ 7,306 $ 7,381 $ 15,593 $ 17,633 Deferred tax benefit (172) (868) (1,119) (2,082) Income tax expense $ 7,134 $ 6,513 $ 14,474 $ 15,551 The Company conducts operations in Puerto Rico, the United States, and certain countries in Latin America. As a result, the income tax expense includes the effect of taxes paid to the government of Puerto Rico as well as foreign jurisdictions. The following table presents the components of income tax expense for the three and nine months ended September 30, 2021 and 2020, and its segregation based on location of operations: Three months ended September 30, Nine months ended September 30, (In thousands) 2021 2020 2021 2020 Current tax provision Puerto Rico $ 2,328 $ 3,280 $ 3,363 $ 6,487 United States 57 214 132 508 Foreign countries 4,921 3,887 12,098 10,638 Total current tax provision $ 7,306 $ 7,381 $ 15,593 $ 17,633 Deferred tax (benefit) provision Puerto Rico $ (258) $ (989) $ (778) $ (1,535) United States 116 (68) (71) 1,033 Foreign countries (30) 189 (270) (1,580) Total deferred tax benefit $ (172) $ (868) $ (1,119) $ (2,082) Taxes payable to foreign countries by EVERTEC’s subsidiaries will be paid by such subsidiary and the corresponding liability and expense will be presented in EVERTEC’s consolidated financial statements. As of September 30, 2021, the Company has $92.9 million of unremitted earnings from foreign subsidiaries, compared to $80.2 million as of December 31, 2020. The Company has not recognized a deferred tax liability on undistributed earnings for the Company’s foreign subsidiaries because these earnings are intended to be indefinitely reinvested. As of September 30, 2021, the gross deferred tax asset amounted to $20.1 million and the gross deferred tax liability amounted to $15.6 million, compared to $22.0 million and $19.0 million, respectively, as of December 31, 2020. As of September 30, 2021, there is a valuation allowance against the gross deferred tax asset of approximately $1.3 million. Income tax expense differs from the amount computed by applying the Puerto Rico statutory income tax rate to the income before income taxes as a result of the following: Nine months ended September 30, (In thousands) 2021 2020 Computed income tax at statutory rates $ 50,411 $ 33,012 Differences in tax rates due to multiple jurisdictions 1,789 831 Effect of income subject to tax-exemption grant (35,121) (21,662) Unrecognized tax (benefit) expense (3,475) 1,173 Excess tax benefits on share-based compensation (1,027) (262) Other, net 1,897 2,459 Income tax expense $ 14,474 $ 15,551 |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share The reconciliation of the numerator and denominator of the income per common share is as follows: Three months ended September 30, Nine months ended September 30, (In thousands, except per share information) 2021 2020 2021 2020 Net income available to EVERTEC, Inc.’s common shareholders $ 35,314 $ 34,463 $ 120,014 $ 72,158 Weighted average common shares outstanding 71,969,856 71,886,439 72,082,082 71,921,069 Weighted average potential dilutive common shares (1) 906,397 1,115,341 735,625 1,128,748 Weighted average common shares outstanding - assuming dilution 72,876,253 73,001,780 72,817,707 73,049,817 Net income per common share - basic $ 0.49 $ 0.48 $ 1.66 $ 1.00 Net income per common share - diluted $ 0.48 $ 0.47 $ 1.65 $ 0.99 (1) Potential common shares consist of common stock issuable under RSUs awards using the treasury stock method. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesEVERTEC is a defendant in a number of legal proceedings arising in the ordinary course of business. Based on the opinion of legal counsel and other factors, management believes that the final disposition of these matters will not have a material adverse effect on the business, results of operations, financial condition, or cash flows of the Company. The Company has identified certain claims as a result of which a loss may be incurred, but in the aggregate the loss would be insignificant. For other claims regarding proceedings that are in an initial phase, the Company is unable to estimate the range of possible loss, if any, but at this time believes that any loss related to such claims will not be material. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThe following table presents the Company’s transactions with related parties for the three and nine months ended September 30, 2021 and 2020: Three months ended September 30, Nine months ended September 30, (In thousands) 2021 2020 2021 2020 Total revenues (1)(2) $ 60,091 $ 57,343 $ 182,344 $ 165,703 Cost of revenues $ 624 $ 700 $ 2,242 $ 3,100 Operating lease cost and other fees $ 1,958 $ 2,053 $ 5,482 $ 6,094 Interest earned from affiliate Interest income $ 184 $ 93 $ 422 $ 290 (1) Popular revenues as a percentage of total revenues were 41%, 42%, 42% and 44%, respectively, for each of the periods presented above. (2) Includes revenues generated from investee accounted for under the equity method of $0.2 million, $0.1 million, $0.3 million and $0.5 million, respectively, for each of the periods presented above. As of September 30, 2021 and December 31, 2020, EVERTEC had the following balances arising from transactions with related parties: (In thousands) September 30, 2021 December 31, 2020 Cash and restricted cash deposits in affiliated bank $ 146,025 $ 126,189 Other due to/from affiliate Accounts receivable $ 30,179 $ 28,419 Prepaid expenses and other assets $ 4,089 $ 4,678 Operating lease right-of-use assets $ 14,359 $ 17,099 Accounts payable $ 7,836 $ 4,607 Contract liabilities $ 35,504 $ 35,807 Operating lease liabilities $ 14,836 $ 17,781 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates in four business segments: Payment Services - Puerto Rico & Caribbean, Payment Services - Latin America (collectively "Payment Services segments"), Merchant Acquiring, and Business Solutions. The Payment Services - Puerto Rico & Caribbean segment revenues are comprised of revenues related to providing access to the ATH debit network and other card networks to financial institutions, including related services such as authorization, processing, management and recording of ATM and point of sale ("POS") transactions, and ATM management and monitoring. The segment revenues also include revenues from card processing services (such as credit and debit card processing, authorization and settlement and fraud monitoring and control to debit or credit issuers), payment processing services (such as payment and billing products for merchants, businesses and financial institutions), ATH Movil (person-to-person and person-to-merchant digital transactions) and EBT (which principally consist of services to the government of Puerto Rico for the delivery of benefits to participants). For ATH debit network and processing services, revenues are primarily driven by the number of transactions processed. Revenues are derived primarily from network fees, transaction switching and processing fees, and the leasing of POS devices. For card issuer processing, revenues are primarily dependent upon the number of cardholder accounts on file, transactions and authorizations processed, the number of cards embossed and other processing services. For EBT services, revenues are primarily derived from the number of beneficiaries on file. The Payment Services - Latin America segment revenues consist of revenues related to providing access to the ATH network of ATMs and other card networks to financial institutions, including related services such as authorization, processing, management and recording of ATM and POS transactions, and ATM management and monitoring. The segment revenues also include revenues from card processing services (such as credit and debit card processing, authorization and settlement and fraud monitoring and control to debit or credit issuers), payment processing services (such as payment and billing products for merchants, businesses and financial institutions), as well as licensed software solutions for risk and fraud management and card payment processing. For network and processing services, revenues are primarily driven by the number of transactions processed. Revenues are derived primarily from network fees, transaction switching and processing fees, and the leasing of POS devices. For card issuer processing, revenues are primarily dependent upon the number of cardholder accounts on file, transactions and authorizations processed, the number of cards embossed, and other processing services. The Merchant Acquiring segment consists of revenues from services that allow merchants to accept electronic methods of payment. In the Merchant Acquiring segment, revenues include a discount fee and membership fees charged to merchants, debit network fees and rental fees from POS devices and other equipment, net of credit card interchange and assessment fees charged by credit cards associations (such as VISA or MasterCard) or payment networks. The discount fee is generally a percentage of the transaction value. EVERTEC also charges merchants for other services that are unrelated to the number of transactions or the transaction value. The Business Solutions segment consists of revenues from a full suite of business process management solutions in various product areas such as core bank processing, network hosting and management, IT professional services, business process outsourcing, item processing, cash processing, and fulfillment. Core bank processing and network services revenues are derived in part from a recurrent fixed fee and from fees based on the number of accounts on file (i.e. savings or checking accounts, loans, etc.) or computer resources utilized. Revenues from other processing services within the Business Solutions segment are generally volume-based and depend on factors such as the number of accounts processed. In addition, EVERTEC is a reseller of hardware and software products and these resale transactions are generally non-recurring. In addition to the four operating segments described above, management identified certain functional cost areas that operate independently and do not constitute businesses in themselves. These areas could neither be concluded as operating segments nor could they be combined with any other operating segments. Therefore, these areas are aggregated and presented within the “Corporate and Other” category in the financial statements alongside the operating segments. The Corporate and Other category consists of corporate overhead expenses, intersegment eliminations, certain leveraged activities and other non-operating and miscellaneous expenses that are not included in the operating segments. The overhead and leveraged costs relate to activities such as: • marketing, • corporate finance and accounting, • human resources, • legal, • risk management functions, • internal audit, • corporate debt related costs, • non-operating depreciation and amortization expenses generated as a result of merger and acquisition activity, • intersegment revenues and expenses, and • other non-recurring fees and expenses that are not considered when management evaluates financial performance at a segment level The Chief Operating Decision Maker ("CODM") reviews the operating segments separate financial information to assess performance and to allocate resources. Management evaluates the operating results of each of its operating segments based upon revenues and Adjusted EBITDA. Adjusted EBITDA is defined as EBITDA further adjusted to exclude unusual items and other adjustments. Adjusted EBITDA, as it relates to operating segments, is presented in conformity with ASC Topic 280, Segment Reporting , given that it is reported to the CODM for purposes of allocating resources. Segment asset disclosure is not used by the CODM as a measure of segment performance since the segment evaluation is driven by revenues and Adjusted EBITDA. As such, segment assets are not disclosed in the notes to the accompanying unaudited condensed consolidated financial statements. The following tables set forth information about the Company’s operations by its four business segments for the periods indicated: Three months ended September 30, 2021 (In thousands) Payment Payment Merchant Business Corporate and Other (1) Total Revenues $ 38,773 $ 26,792 $ 37,606 $ 58,134 $ (15,422) $ 145,883 Operating costs and expenses 21,420 22,209 19,922 37,412 (2,097) 98,866 Depreciation and amortization 3,989 2,809 1,010 4,691 6,246 18,745 Non-operating income (expenses) 203 1,844 281 551 (2,322) 557 EBITDA 21,545 9,236 18,975 25,964 (9,401) 66,319 Compensation and benefits (2) 260 755 255 70 2,153 3,493 Transaction, refinancing and other fees (3) — — — — (42) (42) Adjusted EBITDA $ 21,805 $ 9,991 $ 19,230 $ 26,034 $ (7,290) $ 69,770 (1) Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $10.8 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction processing of $2.4 million from Payment Services - Latin America to both Payment Services - Puerto Rico & Caribbean and Business Solutions, and transaction processing and monitoring fees of $2.2 million from Payment Services - Puerto Rico & Caribbean to Payment Services - Latin America. (2) Primarily represents share-based compensation. (3) Primarily represents fees and expenses associated with corporate transactions as defined in the 2018 Credit Agreement, the elimination of non-cash equity earnings from our 19.99% equity investment in Consorcio de Tarjetas Dominicanas S.A, net of dividends received. Three months ended September 30, 2020 (In thousands) Payment Payment Merchant Business Corporate and Other (1) Total Revenues $ 33,284 $ 21,241 $ 30,646 $ 63,018 $ (11,682) $ 136,507 Operating costs and expenses 19,045 18,284 15,643 35,276 4,415 92,663 Depreciation and amortization 3,349 2,936 477 4,372 6,993 18,127 Non-operating income (expenses) 127 2,959 161 411 (970) 2,688 EBITDA 17,715 8,852 15,641 32,525 (10,074) 64,659 Compensation and benefits (2) 258 686 244 466 2,015 3,669 Transaction, refinancing and other fees (3) 500 — — — 1,205 1,705 Adjusted EBITDA $ 18,473 $ 9,538 $ 15,885 $ 32,991 $ (6,854) $ 70,033 (1) Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $9.1 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring and intercompany software developments and transaction processing of $2.6 million from Payment Services - Latin America to Payment Services - Puerto Rico & Caribbean. (2) Primarily represents share-based compensation. (3) Primarily represents fees and expenses associated with corporate transactions as defined in the 2018 Credit Agreement, a software impairment charge and the elimination of non-cash equity earnings from our 19.99% equity investment in Consorcio de Tarjetas Dominicanas S.A. Nine months ended September 30, 2021 (In thousands) Payment Payment Merchant Business Corporate and Other (1) Total Revenues $ 113,626 $ 77,641 $ 106,808 $ 179,438 $ (42,954) $ 434,559 Operating costs and expenses 61,270 63,020 55,762 110,276 (2,077) 288,251 Depreciation and amortization 11,813 8,695 2,631 14,085 18,867 56,091 Non-operating income (expenses) 618 5,348 835 2,494 (5,269) 4,026 EBITDA 64,787 28,664 54,512 85,741 (27,279) 206,425 Compensation and benefits (2) 781 2,321 781 1,193 6,204 11,280 Transaction, refinancing and other fees (3) 660 — — (647) 1,202 1,215 Adjusted EBITDA $ 66,228 $ 30,985 $ 55,293 $ 86,287 $ (19,873) $ 218,920 (1) Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $31.2 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring and intercompany software developments and transaction processing of $6.6 million from Payment Services - Latin America to both Payment Services - Puerto Rico & Caribbean and Business Solutions, and transaction processing and monitoring fees of $5.1 million from Payment Services - Puerto Rico & Caribbean to Payment Services - Latin America. (2) Primarily represents share-based compensation and severance payments. (3) Primarily represents fees and expenses associated with corporate transactions as defined in the 2018 Credit Agreement, the elimination of non-cash equity earnings from our 19.99% equity investment in Consorcio de Tarjetas Dominicanas S.A., net of dividends received, a software impairment charge and a gain from sale of assets. Nine months ended September 30, 2020 (In thousands) Payment Payment Merchant Business Corporate and Other (1) Total Revenues $ 90,632 $ 62,678 $ 80,531 $ 174,455 $ (31,910) $ 376,386 Operating costs and expenses 53,904 53,882 42,579 105,901 17,923 274,189 Depreciation and amortization 9,791 8,508 1,431 13,049 20,982 53,761 Non-operating income (expenses) 62 4,297 473 1,482 (2,815) 3,499 EBITDA 46,581 21,601 39,856 83,085 (31,666) 159,457 Compensation and benefits (2) 742 2,263 695 1,374 5,846 10,920 Transaction, refinancing and other fees (3) 500 — — — 5,647 6,147 Adjusted EBITDA $ 47,823 $ 23,864 $ 40,551 $ 84,459 $ (20,173) $ 176,524 (1) Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $25.4 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring and intercompany software developments and transaction processing of $6.5 million from Payment Services - Latin America to Payment Services - Puerto Rico & Caribbean. (2) Primarily represents share-based compensation and severance payments. (3) Primarily represents fees and expenses associated with corporate transactions as defined in the 2018 Credit Agreement, a software impairment charge and the elimination of non-cash equity earnings from our 19.99% equity investment in Consorcio de Tarjetas Dominicanas S.A. The reconciliation of EBITDA to consolidated net income is as follows: Three months ended September 30, Nine months ended September 30, (In thousands) 2021 2020 2021 2020 Total EBITDA $ 66,319 $ 64,659 $ 206,425 $ 159,457 Less: Income tax expense 7,134 6,513 14,474 15,551 Interest expense, net 5,180 5,438 15,905 17,664 Depreciation and amortization 18,745 18,127 56,091 53,761 Net income $ 35,260 $ 34,581 $ 119,955 $ 72,481 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn October 21, 2021, the Board declared a regular quarterly cash dividend of $0.05 per share on the Company’s outstanding shares of common stock. The dividend will be paid on December 3, 2021 to stockholders of record as of the close of business on November 1, 2021. The Board anticipates declaring this dividend in future quarters on a regular basis; however future declarations of dividends are subject to the Board’s approval and may be adjusted as business needs or market conditions change. |
The Company and Basis of Pres_2
The Company and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
The Company | The CompanyEVERTEC, Inc. and its subsidiaries (collectively the “Company,” or “EVERTEC”) is a leading full-service transaction-processing business in Puerto Rico, the Caribbean and Latin America. The Company is based in Puerto Rico and provides a broad range of merchant acquiring, payment services and business process management services. The Company provides services across 26 countries in the region. EVERTEC owns and operates the ATH network, one of the leading personal identification number ("PIN") debit networks in Latin America. EVERTEC manages a system of electronic payment networks and offers a comprehensive suite of services for core bank, cash processing and fulfillment in Puerto Rico. In addition, EVERTEC offers technology outsourcing in all the regions the Company serves. EVERTEC serves a broad and diversified customer base of leading financial institutions, merchants, corporations and government agencies with solutions that are essential to their operations, enabling them to issue, process and accept transactions securely. |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements of EVERTEC have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the accompanying unaudited condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited condensed consolidated financial statements. Actual results could differ from these estimates. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted from these statements pursuant to the rules and regulations of the Securities and Exchange Commission and, accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the Audited Consolidated Financial Statements of the Company for the year ended December 31, 2020, included in the Company’s 2020 Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements, prepared in accordance with GAAP, contain all adjustments necessary for a fair presentation. Intercompany accounts and transactions are eliminated in consolidation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Issued Prior to 2021 and Not Yet Adopted In March 2020, the FASB issued updated guidance for ASC Topic 848, Reference Rate Reform , to provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met for a limited period of time in order to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this update are elective and apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments to this update are effective for all entities as of March 12, 2020 through December 31, 2022. The adoption of this guidance will not have an impact on the Company's unaudited condensed consolidated financial statements. |
Debt Securities | Debt securities available-for-sale are accounted for under the provisions of ASC 320 Investments – Debt and Equity Securities, which requires that debt securities available-for-sale ("AFS") be carried at fair value on the Company’s unaudited condensed consolidated balance sheets with unrealized gains (losses) recorded through other comprehensive income (“OCI”). Debt securities in an unrealized loss position which the Company intends to sell or for which it is more likely than not that the Company will be required to sell before recovery of the amortized cost basis, are written down to fair value through income. Quarterly, for debt securities in an unrealized loss position that the Company does not intend or will, more likely than not, not be required to sell, the Company evaluates if the decline in fair value has resulted from credit losses or other factors. If it is determined that the decline in fair value is related to credit losses, the Company records an allowance for credit losses, limited to the amount by which the fair value is less than the amortized cost basis. If the Company determines that the decline in value is related to factors other than credit, the Company recognizes the impairment through OCI. Debt securities were purchased close to the final trading day of the quarter ended March 31, 2021 and are held by a trust in the Costa Rica National Bank as a collateral requirement for settlement activities. The Company may substitute securities as needed but must maintain certain levels of collateral based on transaction volumes. |
Debt Securities (Tables)
Debt Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt securities available-for-sale by contractual maturity | The amortized cost, gross unrealized gains and losses recorded in OCI, and estimated fair value as of September 30, 2021 were as follows: September 30, 2021 (In thousands) Gross unrealized Amortized cost Gains Losses Fair Value Costa Rica Government Obligations After 1 to 5 years $ 2,963 97 — $ 3,060 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of property and equipment, net | Property and equipment, net consists of the following: (In thousands) Useful life September 30, 2021 December 31, 2020 Buildings 30 $ 1,394 $ 1,437 Data processing equipment 3 - 5 132,832 124,897 Furniture and equipment 3 - 20 7,372 6,691 Leasehold improvements 5 -10 3,126 3,098 144,724 136,123 Less - accumulated depreciation and amortization (103,160) (93,826) Depreciable assets, net 41,564 42,297 Land 1,216 1,241 Property and equipment, net $ 42,780 $ 43,538 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in carrying amount of goodwill allocated by reportable segments | The changes in the carrying amount of goodwill, allocated by operating segments, were as follows (see Note 16): (In thousands) Payment Payment Merchant Business Total Balance at December 31, 2020 $ 160,972 $ 52,754 $ 138,121 $ 45,823 $ 397,670 Foreign currency translation adjustments — (3,134) — — (3,134) Balance at September 30, 2021 $ 160,972 $ 49,620 $ 138,121 $ 45,823 $ 394,536 |
Summary of carrying amount of other intangible assets | The carrying amount of other intangible assets at September 30, 2021 and December 31, 2020 was as follows: September 30, 2021 (In thousands) Useful life in years Gross Accumulated Net carrying Customer relationships 8 - 14 $ 358,191 $ (266,047) $ 92,144 Trademarks 2 - 15 41,926 (36,385) 5,541 Software packages 3 - 10 317,799 (210,946) 106,853 Non-compete agreement 15 56,539 (41,462) 15,077 Other intangible assets, net $ 774,455 $ (554,840) $ 219,615 December 31, 2020 (Dollar amounts in thousands) Useful life in years Gross Accumulated Net carrying Customer relationships 8 - 14 $ 343,981 $ (246,088) $ 97,893 Trademarks 2 - 15 42,036 (35,467) 6,569 Software packages 3 - 10 289,205 (191,662) 97,543 Non-compete agreement 15 56,539 (38,635) 17,904 Other intangible assets, net $ 731,761 $ (511,852) $ 219,909 |
Summary of estimated amortization expenses | The estimated amortization expense of the balances outstanding at September 30, 2021 for the next five years is as follows: (Dollar amounts in thousands) Remaining 2021 $ 14,146 2022 51,237 2023 45,918 2024 34,154 2025 11,731 |
Debt and Short-Term Borrowings
Debt and Short-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of total debt | Total debt at September 30, 2021 and December 31, 2020 follows: (In thousands) September 30, 2021 December 31, 2020 2023 Term A Loan bearing interest at a variable interest rate (LIBOR plus applicable margin (1)(2) ) $ 173,519 $ 188,788 2024 Term B Loan bearing interest at a variable interest rate (LIBOR plus applicable margin (1)(3) ) 294,291 306,503 Notes payable due January 1, 2022 (1) 739 1,443 Total debt $ 468,549 $ 496,734 (1) Net of unaccreted discount and unamortized debt issue costs, as applicable. (2) Applicable margin of 1.75% at September 30, 2021 and December 31, 2020. |
Summary of interest rate swap transaction | As of September 30, 2021, the Company has an interest rate swap agreement, entered into in December 2018, which converts a portion of the interest rate payments on the Company's 2024 Term B Loan from variable to fixed: Swap Agreement Effective date Maturity Date Notional Amount Variable Rate Fixed Rate 2018 Swap April 2020 November 2024 $250 million 1-month LIBOR 2.89% |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of carrying value and estimated fair values for financial instruments | The following table presents the carrying value, as applicable, and estimated fair value for financial instruments at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 (In thousands) Carrying Fair Carrying Fair Financial assets: Costa Rica government obligations $ 3,060 $ 3,060 $ — $ — Financial liabilities: Interest rate swap 18,104 18,104 25,578 25,578 2023 Term A Loan 173,519 172,402 188,788 186,678 2024 Term B Loan 294,291 296,657 306,503 308,339 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Summary of changes in balances of accumulated other comprehensive loss | The following table provides a summary of the changes in the balances of accumulated other comprehensive loss for the nine months ended September 30, 2021: (In thousands) Foreign Currency Cash Flow Hedges Unrealized Gains on Debt Securities AFS Total Balance - December 31, 2020, net of tax $ (24,842) $ (23,412) — $ (48,254) Other comprehensive (loss) income before reclassifications (7,823) 1,540 97 (6,186) Effective portion reclassified to net income — 5,274 — 5,274 Balance - September 30, 2021, net of tax $ (32,665) $ (16,598) $ 97 $ (49,166) |
Share-based Compensation (Table
Share-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of nonvested restricted shares and RSUs activity | The following table summarizes nonvested RSUs activity for the nine months ended September 30, 2021: Nonvested RSUs Shares Weighted-average Nonvested at December 31, 2020 1,093,515 $ 27.88 Granted 705,970 31.93 Vested (683,706) 20.95 Forfeited (27,845) 33.37 Nonvested at September 30, 2021 1,087,934 $ 34.71 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of disaggregation of revenue | In the following tables, revenue for each segment, excluding intersegment revenues, is disaggregated by timing of revenue recognition for the periods indicated. Three months ended September 30, 2021 (In thousands) Payment Services - Puerto Rico & Caribbean Payment Services - Latin America Merchant Acquiring, net Business Solutions Total Timing of revenue recognition Products and services transferred at a point in time $ 30 $ 449 $ — $ 446 $ 925 Products and services transferred over time 25,712 23,807 37,606 57,833 144,958 $ 25,742 $ 24,256 $ 37,606 $ 58,279 $ 145,883 Three months ended September 30, 2020 (In thousands) Payment Services - Puerto Rico & Caribbean Payment Services - Latin America Merchant Acquiring, net Business Solutions Total Timing of revenue recognition Products and services transferred at a point in time $ 43 $ 357 $ — $ 4,824 $ 5,224 Products and services transferred over time 23,652 18,791 30,646 58,194 131,283 $ 23,695 $ 19,148 $ 30,646 $ 63,018 $ 136,507 Nine months ended September 30, 2021 (In thousands) Payment Services - Puerto Rico & Caribbean Payment Services - Latin America Merchant Acquiring, net Business Solutions Total Timing of revenue recognition Products and services transferred at a point in time $ 119 $ 1,633 $ — $ 4,048 $ 5,800 Products and services transferred over time 76,642 69,919 106,808 175,390 428,759 $ 76,761 $ 71,552 $ 106,808 $ 179,438 $ 434,559 Nine months ended September 30, 2020 (In thousands) Payment Services - Puerto Rico & Caribbean Payment Services - Latin America Merchant Acquiring, net Business Solutions Total Timing of revenue recognition Products and services transferred at a point in time $ 80 $ 994 $ — $ 7,886 $ 8,960 Products and services transferred over time 63,838 56,487 80,532 166,569 367,426 $ 63,918 $ 57,481 $ 80,532 $ 174,455 $ 376,386 |
Summary of contract balances | The following table provides information about contract assets from contracts with customers. (In thousands) September 30, 2021 December 31, 2020 Balance at beginning of period $ 2,796 $ 1,191 Services transferred to customers 4,053 3,934 Transfers to accounts receivable (4,246) (2,329) Balance at end of period $ 2,603 $ 2,796 |
Current Expected Credit Losses
Current Expected Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Schedule of allowance for credit losses on trade receivables | The following table provides information about the allowance for expected current credit losses on trade receivables. (In thousands) September 30, 2021 December 31, 2020 Balance at beginning of period $ 2,401 $ 3,460 Current period provision for expected credit losses 534 832 Write-offs (177) (1,894) Recoveries of amounts previously written-off 1 3 Balance at end of period $ 2,759 $ 2,401 |
Income Tax (Tables)
Income Tax (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense (benefit) | The components of income tax expense for the three and nine months ended September 30, 2021 and 2020, respectively, consisted of the following: Three months ended September 30, Nine months ended September 30, (In thousands) 2021 2020 2021 2020 Current tax provision $ 7,306 $ 7,381 $ 15,593 $ 17,633 Deferred tax benefit (172) (868) (1,119) (2,082) Income tax expense $ 7,134 $ 6,513 $ 14,474 $ 15,551 |
Segregation of income tax expense based on location of operations | The following table presents the components of income tax expense for the three and nine months ended September 30, 2021 and 2020, and its segregation based on location of operations: Three months ended September 30, Nine months ended September 30, (In thousands) 2021 2020 2021 2020 Current tax provision Puerto Rico $ 2,328 $ 3,280 $ 3,363 $ 6,487 United States 57 214 132 508 Foreign countries 4,921 3,887 12,098 10,638 Total current tax provision $ 7,306 $ 7,381 $ 15,593 $ 17,633 Deferred tax (benefit) provision Puerto Rico $ (258) $ (989) $ (778) $ (1,535) United States 116 (68) (71) 1,033 Foreign countries (30) 189 (270) (1,580) Total deferred tax benefit $ (172) $ (868) $ (1,119) $ (2,082) |
Schedule of income tax expense differs from computed income tax at statutory rates | Income tax expense differs from the amount computed by applying the Puerto Rico statutory income tax rate to the income before income taxes as a result of the following: Nine months ended September 30, (In thousands) 2021 2020 Computed income tax at statutory rates $ 50,411 $ 33,012 Differences in tax rates due to multiple jurisdictions 1,789 831 Effect of income subject to tax-exemption grant (35,121) (21,662) Unrecognized tax (benefit) expense (3,475) 1,173 Excess tax benefits on share-based compensation (1,027) (262) Other, net 1,897 2,459 Income tax expense $ 14,474 $ 15,551 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of numerator and denominator of income per common share | The reconciliation of the numerator and denominator of the income per common share is as follows: Three months ended September 30, Nine months ended September 30, (In thousands, except per share information) 2021 2020 2021 2020 Net income available to EVERTEC, Inc.’s common shareholders $ 35,314 $ 34,463 $ 120,014 $ 72,158 Weighted average common shares outstanding 71,969,856 71,886,439 72,082,082 71,921,069 Weighted average potential dilutive common shares (1) 906,397 1,115,341 735,625 1,128,748 Weighted average common shares outstanding - assuming dilution 72,876,253 73,001,780 72,817,707 73,049,817 Net income per common share - basic $ 0.49 $ 0.48 $ 1.66 $ 1.00 Net income per common share - diluted $ 0.48 $ 0.47 $ 1.65 $ 0.99 (1) Potential common shares consist of common stock issuable under RSUs awards using the treasury stock method. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Summary of transactions with related parties | The following table presents the Company’s transactions with related parties for the three and nine months ended September 30, 2021 and 2020: Three months ended September 30, Nine months ended September 30, (In thousands) 2021 2020 2021 2020 Total revenues (1)(2) $ 60,091 $ 57,343 $ 182,344 $ 165,703 Cost of revenues $ 624 $ 700 $ 2,242 $ 3,100 Operating lease cost and other fees $ 1,958 $ 2,053 $ 5,482 $ 6,094 Interest earned from affiliate Interest income $ 184 $ 93 $ 422 $ 290 (1) Popular revenues as a percentage of total revenues were 41%, 42%, 42% and 44%, respectively, for each of the periods presented above. (2) Includes revenues generated from investee accounted for under the equity method of $0.2 million, $0.1 million, $0.3 million and $0.5 million, respectively, for each of the periods presented above. |
Summary of balances of transactions with related parties | As of September 30, 2021 and December 31, 2020, EVERTEC had the following balances arising from transactions with related parties: (In thousands) September 30, 2021 December 31, 2020 Cash and restricted cash deposits in affiliated bank $ 146,025 $ 126,189 Other due to/from affiliate Accounts receivable $ 30,179 $ 28,419 Prepaid expenses and other assets $ 4,089 $ 4,678 Operating lease right-of-use assets $ 14,359 $ 17,099 Accounts payable $ 7,836 $ 4,607 Contract liabilities $ 35,504 $ 35,807 Operating lease liabilities $ 14,836 $ 17,781 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of information about operations by business segments | The following tables set forth information about the Company’s operations by its four business segments for the periods indicated: Three months ended September 30, 2021 (In thousands) Payment Payment Merchant Business Corporate and Other (1) Total Revenues $ 38,773 $ 26,792 $ 37,606 $ 58,134 $ (15,422) $ 145,883 Operating costs and expenses 21,420 22,209 19,922 37,412 (2,097) 98,866 Depreciation and amortization 3,989 2,809 1,010 4,691 6,246 18,745 Non-operating income (expenses) 203 1,844 281 551 (2,322) 557 EBITDA 21,545 9,236 18,975 25,964 (9,401) 66,319 Compensation and benefits (2) 260 755 255 70 2,153 3,493 Transaction, refinancing and other fees (3) — — — — (42) (42) Adjusted EBITDA $ 21,805 $ 9,991 $ 19,230 $ 26,034 $ (7,290) $ 69,770 (1) Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $10.8 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction processing of $2.4 million from Payment Services - Latin America to both Payment Services - Puerto Rico & Caribbean and Business Solutions, and transaction processing and monitoring fees of $2.2 million from Payment Services - Puerto Rico & Caribbean to Payment Services - Latin America. (2) Primarily represents share-based compensation. (3) Primarily represents fees and expenses associated with corporate transactions as defined in the 2018 Credit Agreement, the elimination of non-cash equity earnings from our 19.99% equity investment in Consorcio de Tarjetas Dominicanas S.A, net of dividends received. Three months ended September 30, 2020 (In thousands) Payment Payment Merchant Business Corporate and Other (1) Total Revenues $ 33,284 $ 21,241 $ 30,646 $ 63,018 $ (11,682) $ 136,507 Operating costs and expenses 19,045 18,284 15,643 35,276 4,415 92,663 Depreciation and amortization 3,349 2,936 477 4,372 6,993 18,127 Non-operating income (expenses) 127 2,959 161 411 (970) 2,688 EBITDA 17,715 8,852 15,641 32,525 (10,074) 64,659 Compensation and benefits (2) 258 686 244 466 2,015 3,669 Transaction, refinancing and other fees (3) 500 — — — 1,205 1,705 Adjusted EBITDA $ 18,473 $ 9,538 $ 15,885 $ 32,991 $ (6,854) $ 70,033 (1) Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $9.1 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring and intercompany software developments and transaction processing of $2.6 million from Payment Services - Latin America to Payment Services - Puerto Rico & Caribbean. (2) Primarily represents share-based compensation. (3) Primarily represents fees and expenses associated with corporate transactions as defined in the 2018 Credit Agreement, a software impairment charge and the elimination of non-cash equity earnings from our 19.99% equity investment in Consorcio de Tarjetas Dominicanas S.A. Nine months ended September 30, 2021 (In thousands) Payment Payment Merchant Business Corporate and Other (1) Total Revenues $ 113,626 $ 77,641 $ 106,808 $ 179,438 $ (42,954) $ 434,559 Operating costs and expenses 61,270 63,020 55,762 110,276 (2,077) 288,251 Depreciation and amortization 11,813 8,695 2,631 14,085 18,867 56,091 Non-operating income (expenses) 618 5,348 835 2,494 (5,269) 4,026 EBITDA 64,787 28,664 54,512 85,741 (27,279) 206,425 Compensation and benefits (2) 781 2,321 781 1,193 6,204 11,280 Transaction, refinancing and other fees (3) 660 — — (647) 1,202 1,215 Adjusted EBITDA $ 66,228 $ 30,985 $ 55,293 $ 86,287 $ (19,873) $ 218,920 (1) Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $31.2 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring and intercompany software developments and transaction processing of $6.6 million from Payment Services - Latin America to both Payment Services - Puerto Rico & Caribbean and Business Solutions, and transaction processing and monitoring fees of $5.1 million from Payment Services - Puerto Rico & Caribbean to Payment Services - Latin America. (2) Primarily represents share-based compensation and severance payments. (3) Primarily represents fees and expenses associated with corporate transactions as defined in the 2018 Credit Agreement, the elimination of non-cash equity earnings from our 19.99% equity investment in Consorcio de Tarjetas Dominicanas S.A., net of dividends received, a software impairment charge and a gain from sale of assets. Nine months ended September 30, 2020 (In thousands) Payment Payment Merchant Business Corporate and Other (1) Total Revenues $ 90,632 $ 62,678 $ 80,531 $ 174,455 $ (31,910) $ 376,386 Operating costs and expenses 53,904 53,882 42,579 105,901 17,923 274,189 Depreciation and amortization 9,791 8,508 1,431 13,049 20,982 53,761 Non-operating income (expenses) 62 4,297 473 1,482 (2,815) 3,499 EBITDA 46,581 21,601 39,856 83,085 (31,666) 159,457 Compensation and benefits (2) 742 2,263 695 1,374 5,846 10,920 Transaction, refinancing and other fees (3) 500 — — — 5,647 6,147 Adjusted EBITDA $ 47,823 $ 23,864 $ 40,551 $ 84,459 $ (20,173) $ 176,524 (1) Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $25.4 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring and intercompany software developments and transaction processing of $6.5 million from Payment Services - Latin America to Payment Services - Puerto Rico & Caribbean. (2) Primarily represents share-based compensation and severance payments. (3) Primarily represents fees and expenses associated with corporate transactions as defined in the 2018 Credit Agreement, a software impairment charge and the elimination of non-cash equity earnings from our 19.99% equity investment in Consorcio de Tarjetas Dominicanas S.A. |
Reconciliation of income from operations to consolidated net income | The reconciliation of EBITDA to consolidated net income is as follows: Three months ended September 30, Nine months ended September 30, (In thousands) 2021 2020 2021 2020 Total EBITDA $ 66,319 $ 64,659 $ 206,425 $ 159,457 Less: Income tax expense 7,134 6,513 14,474 15,551 Interest expense, net 5,180 5,438 15,905 17,664 Depreciation and amortization 18,745 18,127 56,091 53,761 Net income $ 35,260 $ 34,581 $ 119,955 $ 72,481 |
The Company and Basis of Pres_3
The Company and Basis of Presentation (Detail) | Sep. 30, 2021country |
Accounting Policies [Abstract] | |
Number of countries where services are provided | 26 |
Debt Securities (Detail)
Debt Securities (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
Available-for-sale Securities, Debt Maturities [Abstract] | |
Amortized cost, after 1 to 5 years | $ 2,963 |
Gross unrealized gains, after 1 to 5 years | 97 |
Gross unrealized losses, after 1 to 5 years | 0 |
Fair Value, after 1 to 5 years | $ 3,060 |
Property and Equipment, net (De
Property and Equipment, net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Property and Equipment, net | |||||
Property and equipment, gross | $ 144,724 | $ 144,724 | $ 136,123 | ||
Less - accumulated depreciation and amortization | (103,160) | (103,160) | (93,826) | ||
Depreciable assets, net | 41,564 | 41,564 | 42,297 | ||
Land | 1,216 | 1,216 | 1,241 | ||
Property and equipment, net | 42,780 | 42,780 | 43,538 | ||
Depreciation and amortization expense related to property and equipment | 4,200 | $ 4,400 | 13,000 | $ 12,900 | |
Loss on disposition of damaged POS devices | $ 500 | ||||
Buildings | |||||
Property and Equipment, net | |||||
Useful life in years | 30 years | ||||
Property and equipment, gross | 1,394 | $ 1,394 | 1,437 | ||
Data processing equipment | |||||
Property and Equipment, net | |||||
Property and equipment, gross | 132,832 | $ 132,832 | 124,897 | ||
Data processing equipment | Minimum | |||||
Property and Equipment, net | |||||
Useful life in years | 3 years | ||||
Data processing equipment | Maximum | |||||
Property and Equipment, net | |||||
Useful life in years | 5 years | ||||
Furniture and equipment | |||||
Property and Equipment, net | |||||
Property and equipment, gross | 7,372 | $ 7,372 | 6,691 | ||
Furniture and equipment | Minimum | |||||
Property and Equipment, net | |||||
Useful life in years | 3 years | ||||
Furniture and equipment | Maximum | |||||
Property and Equipment, net | |||||
Useful life in years | 20 years | ||||
Leasehold improvements | |||||
Property and Equipment, net | |||||
Property and equipment, gross | $ 3,126 | $ 3,126 | $ 3,098 | ||
Leasehold improvements | Minimum | |||||
Property and Equipment, net | |||||
Useful life in years | 5 years | ||||
Leasehold improvements | Maximum | |||||
Property and Equipment, net | |||||
Useful life in years | 10 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill by Segments (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Changes in the Carrying Amount of Goodwill | |
Beginning balance | $ 397,670 |
Foreign currency translation adjustments | (3,134) |
Ending balance | 394,536 |
Payment Services - Puerto Rico & Caribbean | |
Changes in the Carrying Amount of Goodwill | |
Beginning balance | 160,972 |
Foreign currency translation adjustments | 0 |
Ending balance | 160,972 |
Payment Services - Latin America | |
Changes in the Carrying Amount of Goodwill | |
Beginning balance | 52,754 |
Foreign currency translation adjustments | (3,134) |
Ending balance | 49,620 |
Merchant Acquiring, net | |
Changes in the Carrying Amount of Goodwill | |
Beginning balance | 138,121 |
Foreign currency translation adjustments | 0 |
Ending balance | 138,121 |
Business Solutions | |
Changes in the Carrying Amount of Goodwill | |
Beginning balance | 45,823 |
Foreign currency translation adjustments | 0 |
Ending balance | $ 45,823 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Impairment of goodwill | $ 0 | $ 0 | ||||
Other intangible assets, net | $ 219,615,000 | 219,615,000 | $ 219,909,000 | |||
Amortization expense for intangible assets | 14,500,000 | $ 13,700,000 | 43,000,000 | $ 40,800,000 | ||
Customer relationships | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Other intangible assets, net | 92,144,000 | 92,144,000 | 97,893,000 | |||
Customer relationships | Puerto Rico | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Other intangible assets, net | $ 14,800,000 | |||||
Useful life (years) | 10 years | |||||
Software packages | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Other intangible assets, net | $ 106,853,000 | 106,853,000 | $ 97,543,000 | |||
Impairment charge | $ 600,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | $ 774,455 | $ 731,761 |
Accumulated amortization | (554,840) | (511,852) |
Net carrying amount | 219,615 | 219,909 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 358,191 | 343,981 |
Accumulated amortization | (266,047) | (246,088) |
Net carrying amount | $ 92,144 | $ 97,893 |
Customer relationships | Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life in years | 8 years | 8 years |
Customer relationships | Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life in years | 14 years | 14 years |
Trademarks | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | $ 41,926 | $ 42,036 |
Accumulated amortization | (36,385) | (35,467) |
Net carrying amount | $ 5,541 | $ 6,569 |
Trademarks | Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life in years | 2 years | 2 years |
Trademarks | Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life in years | 15 years | 15 years |
Software packages | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | $ 317,799 | $ 289,205 |
Accumulated amortization | (210,946) | (191,662) |
Net carrying amount | $ 106,853 | $ 97,543 |
Software packages | Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life in years | 3 years | 3 years |
Software packages | Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life in years | 10 years | 10 years |
Non-compete agreement | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life in years | 15 years | 15 years |
Gross amount | $ 56,539 | $ 56,539 |
Accumulated amortization | (41,462) | (38,635) |
Net carrying amount | $ 15,077 | $ 17,904 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated Amortization Expenses (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining 2021 | $ 14,146 |
2022 | 51,237 |
2023 | 45,918 |
2024 | 34,154 |
2025 | $ 11,731 |
Debt and Short-Term Borrowing_2
Debt and Short-Term Borrowings - Total Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total debt | $ 468,549 | $ 496,734 |
Notes Payable due on January 1, 2022 | Notes Payable | ||
Debt Instrument [Line Items] | ||
Note payable due January 1, 2022 | 739 | 1,443 |
Term A due on November 27,2023 | Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility | $ 173,519 | $ 188,788 |
Fixed rate | 1.75% | 1.75% |
Term B due on November 27, 2024 | Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility | $ 294,291 | $ 306,503 |
Term B due on November 27, 2024 | Credit Facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Minimum variable rate | 0.00% | 3.50% |
Debt and Short-Term Borrowing_3
Debt and Short-Term Borrowings - Additional Information (Detail) | Mar. 08, 2021USD ($) | Mar. 05, 2020USD ($) | Nov. 27, 2018USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)agreement |
Debt Instrument [Line Items] | |||||||||
Losses reclassified from accumulated other comprehensive loss into income | $ 1,800,000 | $ 1,700,000 | $ 5,300,000 | $ 3,300,000 | |||||
Losses expected to be reclassified from accumulated other comprehensive loss into income in the next 12 months | 7,000,000 | 7,000,000 | |||||||
Credit Agreement 2018 | |||||||||
Debt Instrument [Line Items] | |||||||||
Mandatory prepayment trigger, maximum value of excess cash flow | $ 10,000,000 | ||||||||
Credit facility, payment | $ 17,800,000 | $ 17,000,000 | |||||||
Notes Payable | December 2019 Financing Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of financing agreements | agreement | 2 | ||||||||
Non interest bearing financing agreement | $ 2,400,000 | ||||||||
Notes payable | 800,000 | 800,000 | $ 1,500,000 | ||||||
Term A due on November 27,2023 | Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Secured credit facilities | 174,400,000 | 174,400,000 | |||||||
Term A due on November 27,2023 | Credit Facility | Credit Agreement 2018 | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum amount under credit facilities | 220,000,000 | ||||||||
Term B due on November 27, 2024 | Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Secured credit facilities | 296,700,000 | 296,700,000 | |||||||
Term B due on November 27, 2024 | Credit Facility | Credit Agreement 2018 | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum amount under credit facilities | 325,000,000 | ||||||||
Senior Secured Revolving Credit Facility | Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Additional borrowing capacity available under the revolving facility | 119,100,000 | 119,100,000 | |||||||
Senior Secured Revolving Credit Facility | Credit Facility | Credit Agreement 2018 | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum amount under credit facilities | $ 125,000,000 | ||||||||
Carrying Amount | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate swap | 18,104,000 | 18,104,000 | 25,578,000 | ||||||
Fair Value, Level 2 | Carrying Amount | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate swap | $ 18,100,000 | $ 18,100,000 | $ 25,600,000 |
Debt and Short-Term Borrowing_4
Debt and Short-Term Borrowings - Summary of Interest Rate Swap Transaction (Detail) - 2018 Interest Rate Swap Agreement | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Derivative [Line Items] | |
Notional Amount | $ 250,000,000 |
1-month LIBOR | |
Derivative [Line Items] | |
Fixed Rate | 2.89% |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | $ 3,060 | $ 0 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap | 18,104 | 25,578 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap | 18,104 | 25,578 |
Costa Rica government obligations | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 3,060 | 0 |
Costa Rica government obligations | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 3,060 | 0 |
Fair Value, Level 2 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap | $ 18,100 | $ 25,600 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Carrying Value and Estimated Fair Values (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Costa Rica government obligations | $ 3,060 | $ 0 |
Carrying Amount | ||
Financial liabilities: | ||
Interest rate swap | 18,104 | 25,578 |
Carrying Amount | Credit Facility | 2023 Term A Loan | ||
Financial liabilities: | ||
Senior secured term loan | 173,519 | 188,788 |
Carrying Amount | Credit Facility | 2024 Term B Loan | ||
Financial liabilities: | ||
Senior secured term loan | 294,291 | 306,503 |
Fair Value | ||
Financial liabilities: | ||
Interest rate swap | 18,104 | 25,578 |
Fair Value | Credit Facility | 2023 Term A Loan | ||
Financial liabilities: | ||
Senior secured term loan | 172,402 | 186,678 |
Fair Value | Credit Facility | 2024 Term B Loan | ||
Financial liabilities: | ||
Senior secured term loan | 296,657 | 308,339 |
Costa Rica government obligations | Carrying Amount | ||
Financial assets: | ||
Costa Rica government obligations | 3,060 | 0 |
Costa Rica government obligations | Fair Value | ||
Financial assets: | ||
Costa Rica government obligations | $ 3,060 | $ 0 |
Equity - Summary of Changes in
Equity - Summary of Changes in Accumulated Other Comprehensive Loss (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Changes in Accumulated Other Comprehensive Income (Loss) | |
Beginning balance | $ 342,429 |
Other comprehensive (loss) income before reclassifications | (6,186) |
Effective portion reclassified to net income | 5,274 |
Ending balance | 427,930 |
Foreign Currency Translation Adjustments | |
Changes in Accumulated Other Comprehensive Income (Loss) | |
Beginning balance | (24,842) |
Other comprehensive (loss) income before reclassifications | (7,823) |
Effective portion reclassified to net income | 0 |
Ending balance | (32,665) |
Cash Flow Hedges | |
Changes in Accumulated Other Comprehensive Income (Loss) | |
Beginning balance | (23,412) |
Other comprehensive (loss) income before reclassifications | 1,540 |
Effective portion reclassified to net income | 5,274 |
Ending balance | (16,598) |
Unrealized Gains on Debt Securities AFS | |
Changes in Accumulated Other Comprehensive Income (Loss) | |
Beginning balance | 0 |
Other comprehensive (loss) income before reclassifications | 97 |
Effective portion reclassified to net income | 0 |
Ending balance | 97 |
Total | |
Changes in Accumulated Other Comprehensive Income (Loss) | |
Beginning balance | (48,254) |
Ending balance | $ (49,166) |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | $ 3.7 | $ 3.7 | $ 10.9 | $ 10.8 |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum unrecognized cost for RSUs | $ 23.1 | $ 23.1 | ||
Unrecognized compensation cost, weighted average period of recognition (in years) | 1 year 10 months 24 days | |||
Time Based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 3 years | |||
Awards with Performance Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 3 years | |||
Performance adjustment percent | 25.00% | |||
Performance measurement period (in years) | 1 year | |||
Requisite service period (in years) | 2 years | |||
Awards with Performance Conditions | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance payout percent | 0.00% | |||
Awards with Performance Conditions | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance payout percent | 200.00% |
Share-based Compensation - Nonv
Share-based Compensation - Nonvested RSUs Activity (Detail) - Restricted Stock Units | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Shares | |
Beginning balance (in shares) | shares | 1,093,515 |
Granted (in shares) | shares | 705,970 |
Vested (in shares) | shares | (683,706) |
Forfeited (in shares) | shares | (27,845) |
Ending balance (in shares) | shares | 1,087,934 |
Weighted-average grant date fair value | |
Beginning balance (in usd per share) | $ / shares | $ 27.88 |
Granted (in usd per share) | $ / shares | 31.93 |
Vested (in usd per share) | $ / shares | 20.95 |
Forfeited (in usd per share) | $ / shares | 33.37 |
Ending balance (in usd per share) | $ / shares | $ 34.71 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 145,883 | $ 136,507 | $ 434,559 | $ 376,386 |
Products and services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 925 | 5,224 | 5,800 | 8,960 |
Products and services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 144,958 | 131,283 | 428,759 | 367,426 |
Payment Services - Puerto Rico & Caribbean | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 25,742 | 23,695 | 76,761 | 63,918 |
Payment Services - Puerto Rico & Caribbean | Products and services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 30 | 43 | 119 | 80 |
Payment Services - Puerto Rico & Caribbean | Products and services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 25,712 | 23,652 | 76,642 | 63,838 |
Payment Services - Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 24,256 | 19,148 | 71,552 | 57,481 |
Payment Services - Latin America | Products and services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 449 | 357 | 1,633 | 994 |
Payment Services - Latin America | Products and services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 23,807 | 18,791 | 69,919 | 56,487 |
Merchant Acquiring, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 37,606 | 30,646 | 106,808 | 80,532 |
Merchant Acquiring, net | Products and services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Merchant Acquiring, net | Products and services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 37,606 | 30,646 | 106,808 | 80,532 |
Business Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 58,279 | 63,018 | 179,438 | 174,455 |
Business Solutions | Products and services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 446 | 4,824 | 4,048 | 7,886 |
Business Solutions | Products and services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 57,833 | $ 58,194 | $ 175,390 | $ 166,569 |
Revenues - Contract Balances (D
Revenues - Contract Balances (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Revenue, Contract Balances [Roll Forward] | ||
Beginning balance | $ 2,796 | $ 1,191 |
Services transferred to customers | 4,053 | 3,934 |
Transfers to accounts receivable | (4,246) | (2,329) |
Ending balance | $ 2,603 | $ 2,796 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||||
Accounts receivable, net | $ 95,548 | $ 95,548 | $ 95,727 | ||
Contract liability | 21,304 | 21,304 | 24,958 | ||
Contract liability - long term | 31,109 | 31,109 | $ 31,336 | ||
Revenue recognized that was included in unearned income | 5,300 | $ 3,900 | 20,700 | $ 13,100 | |
Transaction price allocated to performance obligations that are unsatisfied or partially satisfied | $ 310,400 | $ 310,400 | |||
Professional Services, All Other Contracts | Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, remaining performance obligation, period of expected timing of satisfaction (in years) | 2 years | 2 years | |||
Professional Services, All Other Contracts | Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, remaining performance obligation, period of expected timing of satisfaction (in years) | 5 years | 5 years |
Current Expected Credit Losse_2
Current Expected Credit Losses (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 2,401 | $ 3,460 |
Current period provision for expected credit losses | 534 | 832 |
Write-offs | (177) | (1,894) |
Recoveries of amounts previously written-off | 1 | 3 |
Balance at end of period | $ 2,759 | $ 2,401 |
Income Tax - Components of Inco
Income Tax - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Current tax provision | $ 7,306 | $ 7,381 | $ 15,593 | $ 17,633 |
Deferred tax benefit | (172) | (868) | (1,119) | (2,082) |
Income tax expense | $ 7,134 | $ 6,513 | $ 14,474 | $ 15,551 |
Income Tax - Tax Expense Based
Income Tax - Tax Expense Based on Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Current tax provision | ||||
Puerto Rico | $ 2,328 | $ 3,280 | $ 3,363 | $ 6,487 |
United States | 57 | 214 | 132 | 508 |
Foreign countries | 4,921 | 3,887 | 12,098 | 10,638 |
Total current tax provision | 7,306 | 7,381 | 15,593 | 17,633 |
Deferred tax (benefit) provision | ||||
Puerto Rico | (258) | (989) | (778) | (1,535) |
United States | 116 | (68) | (71) | 1,033 |
Foreign countries | (30) | 189 | (270) | (1,580) |
Total deferred tax benefit | $ (172) | $ (868) | $ (1,119) | $ (2,082) |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Unremitted earnings from foreign subsidiaries | $ 92.9 | $ 80.2 |
Gross deferred tax asset | 20.1 | 22 |
Gross deferred tax liability | 15.6 | $ 19 |
Valuation allowance | $ 1.3 |
Income Tax - Income Tax Expense
Income Tax - Income Tax Expense Differs from Computed Income Tax at Statutory Rates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Computed income tax at statutory rates | $ 50,411 | $ 33,012 | ||
Differences in tax rates due to multiple jurisdictions | 1,789 | 831 | ||
Effect of income subject to tax-exemption grant | (35,121) | (21,662) | ||
Unrecognized tax (benefit) expense | (3,475) | 1,173 | ||
Excess tax benefits on share-based compensation | (1,027) | (262) | ||
Other, net | 1,897 | 2,459 | ||
Income tax expense | $ 7,134 | $ 6,513 | $ 14,474 | $ 15,551 |
Net Income Per Common Share - R
Net Income Per Common Share - Reconciliation of Income Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jul. 22, 2021 | Apr. 22, 2021 | Feb. 18, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Earnings Per Share [Abstract] | |||||||||||
Net income available to EVERTEC, Inc.’s common shareholders | $ 35,314 | $ 34,463 | $ 120,014 | $ 72,158 | |||||||
Net income available to EVERTEC, Inc.’s common shareholders | $ 35,314 | $ 34,463 | $ 120,014 | $ 72,158 | |||||||
Weighted average common shares outstanding (in shares) | 71,969,856 | 71,886,439 | 72,082,082 | 71,921,069 | |||||||
Weighted average potential dilutive common shares (in shares) | 906,397 | 1,115,341 | 735,625 | 1,128,748 | |||||||
Weighted average common shares outstanding - assuming dilution (in shares) | 72,876,253 | 73,001,780 | 72,817,707 | 73,049,817 | |||||||
Net income per common share - basic (in usd per share) | $ 0.49 | $ 0.48 | $ 1.66 | $ 1 | |||||||
Net income per common share - diluted (in usd per share) | 0.48 | 0.47 | $ 1.65 | $ 0.99 | |||||||
Cash dividends declared (in usd per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 |
Related Party Transactions - Tr
Related Party Transactions - Transactions with Related Parties (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Transactions with Third Party | ||||
Total revenues | $ 60,091 | $ 57,343 | $ 182,344 | $ 165,703 |
Cost of revenues | 624 | 700 | 2,242 | 3,100 |
Operating lease cost and other fees | 1,958 | 2,053 | 5,482 | 6,094 |
Interest earned from affiliate | ||||
Interest income | 184 | 93 | 422 | 290 |
Earnings (losses) of equity method investment | 411 | 202 | 1,307 | 733 |
Popular | ||||
Interest earned from affiliate | ||||
Earnings (losses) of equity method investment | $ 200 | $ 100 | $ 300 | $ 500 |
Popular | Customer Concentration Risk | Total Revenue | ||||
Interest earned from affiliate | ||||
Total percentage of revenues from Popular | 41.00% | 42.00% | 42.00% | 44.00% |
Related Party Transactions - Ba
Related Party Transactions - Balances of Transactions (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Related Party Transactions [Abstract] | ||
Cash and restricted cash deposits in affiliated bank | $ 146,025 | $ 126,189 |
Other due to/from affiliate | ||
Accounts receivable | 30,179 | 28,419 |
Prepaid expenses and other assets | 4,089 | 4,678 |
Operating lease right-of-use assets | 14,359 | 17,099 |
Accounts payable | 7,836 | 4,607 |
Contract liabilities | 35,504 | 35,807 |
Operating lease liabilities | $ 14,836 | $ 17,781 |
Segment Information - Operation
Segment Information - Operations by Segments (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating business segments (in segment) | segment | 4 | |||
Revenues | $ 145,883 | $ 136,507 | $ 434,559 | $ 376,386 |
Operating costs and expenses | 98,866 | 92,663 | 288,251 | 274,189 |
Depreciation and amortization | 18,745 | 18,127 | 56,091 | 53,761 |
Non-operating income (expenses) | 557 | 2,688 | 4,026 | 3,499 |
EBITDA | 66,319 | 64,659 | 206,425 | 159,457 |
Compensation and benefits | 3,493 | 3,669 | 11,280 | 10,920 |
Transaction, refinancing and other fees | (42) | 1,705 | 1,215 | 6,147 |
Adjusted EBITDA | $ 69,770 | $ 70,033 | $ 218,920 | $ 176,524 |
Consorcio de Tarjetas Dominicanas S.A. | ||||
Segment Reporting Information [Line Items] | ||||
Equity investment | 19.99% | 19.99% | 19.99% | 19.99% |
Payment Services - Puerto Rico & Caribbean | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 25,742 | $ 23,695 | $ 76,761 | $ 63,918 |
Payment Services - Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 24,256 | 19,148 | 71,552 | 57,481 |
Merchant Acquiring, net | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 37,606 | 30,646 | 106,808 | 80,532 |
Business Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 58,279 | 63,018 | 179,438 | 174,455 |
Operating Segments | Payment Services - Puerto Rico & Caribbean | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 38,773 | 33,284 | 113,626 | 90,632 |
Operating costs and expenses | 21,420 | 19,045 | 61,270 | 53,904 |
Depreciation and amortization | 3,989 | 3,349 | 11,813 | 9,791 |
Non-operating income (expenses) | 203 | 127 | 618 | 62 |
EBITDA | 21,545 | 17,715 | 64,787 | 46,581 |
Compensation and benefits | 260 | 258 | 781 | 742 |
Transaction, refinancing and other fees | 0 | 500 | 660 | 500 |
Adjusted EBITDA | 21,805 | 18,473 | 66,228 | 47,823 |
Operating Segments | Payment Services - Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 26,792 | 21,241 | 77,641 | 62,678 |
Operating costs and expenses | 22,209 | 18,284 | 63,020 | 53,882 |
Depreciation and amortization | 2,809 | 2,936 | 8,695 | 8,508 |
Non-operating income (expenses) | 1,844 | 2,959 | 5,348 | 4,297 |
EBITDA | 9,236 | 8,852 | 28,664 | 21,601 |
Compensation and benefits | 755 | 686 | 2,321 | 2,263 |
Transaction, refinancing and other fees | 0 | 0 | 0 | 0 |
Adjusted EBITDA | 9,991 | 9,538 | 30,985 | 23,864 |
Operating Segments | Merchant Acquiring, net | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 37,606 | 30,646 | 106,808 | 80,531 |
Operating costs and expenses | 19,922 | 15,643 | 55,762 | 42,579 |
Depreciation and amortization | 1,010 | 477 | 2,631 | 1,431 |
Non-operating income (expenses) | 281 | 161 | 835 | 473 |
EBITDA | 18,975 | 15,641 | 54,512 | 39,856 |
Compensation and benefits | 255 | 244 | 781 | 695 |
Transaction, refinancing and other fees | 0 | 0 | 0 | 0 |
Adjusted EBITDA | 19,230 | 15,885 | 55,293 | 40,551 |
Operating Segments | Business Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 58,134 | 63,018 | 179,438 | 174,455 |
Operating costs and expenses | 37,412 | 35,276 | 110,276 | 105,901 |
Depreciation and amortization | 4,691 | 4,372 | 14,085 | 13,049 |
Non-operating income (expenses) | 551 | 411 | 2,494 | 1,482 |
EBITDA | 25,964 | 32,525 | 85,741 | 83,085 |
Compensation and benefits | 70 | 466 | 1,193 | 1,374 |
Transaction, refinancing and other fees | 0 | 0 | (647) | 0 |
Adjusted EBITDA | 26,034 | 32,991 | 86,287 | 84,459 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (15,422) | (11,682) | (42,954) | (31,910) |
Operating costs and expenses | (2,097) | 4,415 | (2,077) | 17,923 |
Depreciation and amortization | 6,246 | 6,993 | 18,867 | 20,982 |
Non-operating income (expenses) | (2,322) | (970) | (5,269) | (2,815) |
EBITDA | (9,401) | (10,074) | (27,279) | (31,666) |
Compensation and benefits | 2,153 | 2,015 | 6,204 | 5,846 |
Transaction, refinancing and other fees | (42) | 1,205 | 1,202 | 5,647 |
Adjusted EBITDA | (7,290) | (6,854) | (19,873) | (20,173) |
Payment Processing | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 10,800 | 9,100 | 31,200 | 25,400 |
Software Sale and Developments | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,400 | $ 2,600 | 6,600 | $ 6,500 |
Transaction Processing and Monitoring Fees | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,200 | $ 5,100 |
Segment Information - Income fr
Segment Information - Income from Segments to Consolidated Net Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting [Abstract] | ||||||||
Total EBITDA | $ 66,319 | $ 64,659 | $ 206,425 | $ 159,457 | ||||
Less: | ||||||||
Income tax expense | 7,134 | 6,513 | 14,474 | 15,551 | ||||
Interest expense, net | 5,180 | 5,438 | 15,905 | 17,664 | ||||
Depreciation and amortization | 18,745 | 18,127 | 56,091 | 53,761 | ||||
Net income | $ 35,260 | $ 49,091 | $ 35,604 | $ 34,581 | $ 15,625 | $ 22,275 | $ 119,955 | $ 72,481 |
Subsequent Events (Detail)
Subsequent Events (Detail) - $ / shares | Oct. 21, 2021 | Jul. 22, 2021 | Apr. 22, 2021 | Feb. 18, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 |
Subsequent Event [Line Items] | ||||||||||
Cash dividends declared (in usd per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | |
Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Cash dividends declared (in usd per share) | $ 0.05 |