EVERTEC, Inc. (NYSE:EVTC) Q3 2022 Results Conference Call November 2, 2022 4:30 PM ET

Company Participants

Kevin Hunt - IR

Mac Schuessler - President and CEO

Joaquin Castrillo - CFO

Conference Call Participants

Jamie Friedman - Susquehanna

John Davis - Raymond James

Vasu Govil - KBW

Jeff Goldstein - Morgan Stanley

Chris Kennedy - William Blair

Operator

Good day, and welcome to the EVERTEC Third Quarter 2022 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. Please note that this event is being recorded.

Now, I would like to turn the call over to Mr. Kevin Hunt of Investor Relations. Please go ahead, sir.

Kevin Hunt

Thank you, and good afternoon. With me today are Mac Schuessler, our President and Chief Executive Officer; and Joaquin Castrillo, our Chief Financial Officer.

Before we begin, I'd like to remind everyone that this call may contain forward-looking statements and should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent periodic SEC report. During today's call, management will provide certain information that will constitute non-GAAP financial measures under SEC rules, such as adjusted EBITDA, adjusted net income, and adjusted earnings per common share. Reconciliations to GAAP measures and certain additional information are also included in today's earnings release and related supplemental slides which are available in the Investor Relations section of our company website at www.evertecinc.com.

I'll now hand over the call to Mac.

Mac Schuessler

Thanks, Kevin, and good afternoon, everyone. Our business performed well in the quarter despite the headwinds we faced. Some of which we knew about coming into the quarter and others that were unanticipated. Our payments in Puerto Rico and LatAm revenues continue to grow very well driven by organic growth and also benefiting in part from the acquisitions that we completed during the year. In payments Puerto Rico, the year-over-year growth was driven by a combination of strong POS transactions. In DTH mobile business growth and the contribution from the small acquisition completed in the second quarter. In Latin America, we continue to see very strong results driven by organic growth across the region, as well as the initial contribution from the BBR acquisition that closed on July 1st.

In terms of expected headwinds, the input add from the popular transaction that closed on July 1st was in line with our expectations as it affected year-over-year revenue growth and margins primarily in the Business Solutions and MAB segments. We also experienced a modest revenue and margin impacts from Hurricane Fiona over the final two weeks of the quarter, primarily in our Merchant Acquiring segment.