EVERTEC (EVTC) 8-K Evertec Reports Second-quarter 2014 Results

Exhibit 99.1

EVERTEC REPORTS SECOND-QUARTER 2014 RESULTS

SAN JUAN, PUERTO RICO – August 6, 2014 – EVERTEC, Inc. (NYSE: EVTC) (“EVERTEC” or the “Company”) today announced results for the second quarter ended June 30, 2014.

Second-Quarter 2014 Highlights

• Total revenue increased to $91.1 million; Merchant Acquiring and Payment Processing segments revenue each increased 9%.

• Adjusted EBITDA increased 5% to $45.5 million.

• Adjusted Net Income increased 11% to $32.2 million and Adjusted Net Income per diluted share increased 17% to $0.41.

Peter Harrington, EVERTEC’s President and Chief Executive Officer, commented on the results: “We delivered solid second quarter results highlighted by the combination of 9% growth in our payments businesses, 50% adjusted EBITDA margin, and 17% EPS growth. Looking forward, we will continue to capitalize on the strong secular growth in the Latin American payments markets by executing our strategy and winning market share.”

Second-Quarter 2014 Results

Revenue. Total revenue for the quarter ended June 30, 2014 was $91.1 million, an increase of 2% compared with $89.2 million in the prior year.

Merchant Acquiring net revenue was $19.8 million, an increase of 9% compared with $18.2 million in the prior year. Revenue growth in the quarter was driven mainly by an increase in transaction volumes.

Payment Processing revenue was $26.4 million, an increase of 9% compared with $24.3 million in the prior year. Revenue growth in the quarter was driven mainly by new customer additions and an increase in accounts on file within the card products business, an increase in ATH and POS network and processing transactions, and fees generated from an annual Department of Education program the Company processes in Puerto Rico.

Business Solutions revenue was $44.9 million, a decrease of 4% compared with $46.7 million in the prior year. The decrease in revenue was due almost entirely to a $2.9 million year-over-year decline in hardware and software sales in the quarter, partially offset by increased revenue from other products and services including network solutions and IT consulting.

Adjusted EBITDA. For the quarter ended June 30, 2014, Adjusted EBITDA was $45.5 million, an increase of 5% compared with $43.4 million in the prior year. The increase in Adjusted EBITDA was due mostly to revenue growth and operating leverage in our Merchant Acquiring and Payment Processing businesses. Adjusted EBITDA margin was 50.0%, an increase of 130 basis points compared with 48.7% in the prior year.

Adjusted Net Income. For the quarter ended June 30, 2014, Adjusted Net Income was $32.2 million, an increase of 11% compared with $28.9 million in the prior year. The increase in Adjusted Net Income was driven mainly by Adjusted EBITDA growth, lower levels of operating depreciation and amortization expense, and lower cash taxes. Adjusted Net Income per diluted share increased 17% to $0.41 compared with $0.35 in the prior year.

Earnings Conference Call and Audio Webcast

The Company has scheduled a conference call to discuss its second-quarter 2014 financial results today at 5:00 PM ET. Hosting the call will be Peter Harrington, President and Chief Executive Officer, and Juan José Román, Executive Vice President and Chief Financial Officer. The conference call can be accessed live over the phone by dialing (877) 718-5101 or (719) 325-4778 for international callers. A replay will be available at 8:00 PM ET and can be accessed by dialing (877) 870-5176 or (858) 384-5517 for international callers; the pin number is 6668719. The replay will be available until Wednesday, August 13, 2014. The call will be webcast live from the Company’s website at www.evertecinc.com under the Investor Relations section or directly at http://ir.evertecinc.com.

About EVERTEC

EVERTEC, Inc. (NYSE: EVTC) is the leading full-service transaction processing business in Latin America, providing a broad range of merchant acquiring, payment processing and business solutions services. The largest merchant acquirer in the Caribbean and Central America—and one of the largest in Latin America—EVERTEC serves 19 countries in the region from its base in Puerto Rico. The Company manages a system of electronic payment networks that process more than 2.1 billion transactions annually, and offers a comprehensive suite of services for core bank processing, cash processing and technology outsourcing. In addition, EVERTEC owns and operates the ATH network, one of the leading personal identification number (“PIN”) debit networks in Latin America. The Company serves a diversified customer base of leading financial institutions, merchants, corporations and government agencies with “mission-critical” technology solutions. For more information, visit http://www.evertecinc.com.

About Non-GAAP Financial Measures

This earnings release presents EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per share information. These supplemental measures of the Company’s performance are not required by, or presented in accordance with, accounting principles generally accepted in the United States of America (“GAAP”). They are not measurements of the Company’s financial performance under GAAP and should not be considered as alternatives to total revenue, net income or any other performance measures derived in accordance with GAAP or as alternatives to cash flows from operating activities, as indicators of cash flows or as measures of the Company’s liquidity. We present EBITDA and Adjusted EBITDA because we consider them important supplemental measures of the Company’s performance and believe they are frequently used by securities analysts, investors and other interested parties to evaluate companies in our industry. In addition, the Company’s presentation of Adjusted EBITDA is consistent with the equivalent measurements contained in the Credit Agreement in testing EVERTEC Group’s compliance with covenants therein such as the senior secured leverage ratio. We use Adjusted Net Income to measure the Company’s overall profitability because it better reflects the Company’s cash flow

generation by capturing the actual cash taxes paid rather than the Company’s tax expense as calculated under GAAP, and excludes the impact of the non-cash amortization and depreciation resulting from our 2010 merger involving an affiliate of Apollo Global management, LLC (the “Merger”). For more information regarding EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per share, including a quantitative reconciliation of EBITDA, Adjusted EBITDA and Adjusted Net Income to the most directly comparable GAAP financial performance measure, which is net income, see Schedule 4: Reconciliation of GAAP to Non-GAAP Operating Results in this earnings release.

Forward-Looking Statements

Certain statements in this press release constitute “forward-looking statements” within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance or achievements of EVERTEC to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by, or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” and “plans” and similar expressions of future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward-looking in nature and not historical facts. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements.

Various factors that could cause actual future results and other future events to differ materially from those estimated by management include, but are not limited to: the Company’s reliance on its relationship with Popular for a significant portion of revenue; our ability to renew our client contracts on terms favorable to us; the effectiveness of our risk management procedures; our dependence on our processing systems, technology infrastructure, security systems and fraudulent-payment-detection systems, and the risk that our systems may experience breakdowns or fail to prevent security breaches or fraudulent transfers; our ability to develop, install and adopt new technology; a decreased client base due to consolidations in the banking and financial-services industry; the credit risk of our merchant clients, for which we may also be liable; the continuing market position of the ATH^® network; the Company’s dependence on credit card associations; regulatory limitations on our activities due to our relationship with Popular and our role as a service provider to financial institutions; changes in the regulatory environment and changes in international, legal, political, administrative or economic conditions; the geographical concentration of the Company’s business in Puerto Rico; operating an international business in multiple regions with potential political and economic instability; operating in countries and counterparties that put us at risk of violating U.S. sanctions laws; our ability to execute our expansion and acquisition strategies; our ability to protect our intellectual property rights; our ability to recruit and retain qualified personnel; our ability to comply with federal, state, and local regulatory requirements; evolving industry standards; the Company’s high level of indebtedness and restrictions contained in the Company’s debt agreements; and the Company’s ability to generate sufficient cash to service the Company’s indebtedness and to generate future profits.

Consideration should be given to the areas of risk described above, as well as those risks set forth under the headings “Forward-Looking Statements” and “Risk Factors” in the reports the Company files with the SEC from time to time, in connection with considering any forward-looking statements that may be made by the Company and its businesses generally. We undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events unless we are required to do so by law.

Contacts

Investor Contact

Luis M. Cabrera

Senior Vice President

Head of Investor Relations

(787) 773-5302

IR@evertecinc.com

Media Contact

Wanda Betancourt, APR

Senior Vice President

Communications and Marketing

(787) 773-5302

NewsMedia@evertecinc.com

EVERTEC, Inc.

Schedule 1: Unaudited Consolidated Statements of Income and Comprehensive Income

	Quarters ended June 30,						Six months ended June 30,
(Dollar amounts in thousands, except per share data)	2014			2013			2014			2013
Revenues
Merchant acquiring, net	$	19,827		$	18,165		$	39,118		$	35,624
Payment processing		26,406			24,285			51,408			48,397
Business solutions		44,888			46,725			87,805			92,493
Total revenues		91,121			89,175			178,331			176,514
Operating costs and expenses
Cost of revenues, exclusive of depreciation and amortization shown below		38,839			41,771			76,484			82,273
Selling, general and administrative expenses		10,463			12,624			18,525			21,487
Depreciation and amortization		16,390			17,842			33,004			35,417
Total operating costs and expenses		65,692			72,237			128,013			139,177
Income from operations		25,429			16,938			50,318			37,337
Non-operating (expenses) income
Interest income		79			49			154			93
Interest expense		(6,501	)		(9,747	)		(13,410	)		(25,011	)
Earnings of equity method investment		343			348			664			625
Other income (expenses):
Loss on extinguishment of debt		—			(58,464	)		—			(58,464	)
Termination of consulting agreement		—			(16,718	)		—			(16,718	)
Other income (expenses)		385			(2,353	)		2,376			(2,286	)
Total other income (expenses)		385			(77,535	)		2,376			(77,468	)
Total non-operating expenses		(5,694	)		(86,885	)		(10,216	)		(101,761	)
Income (loss) before income taxes		19,735			(69,947	)		40,102			(64,424	)
Income tax expense (benefit)		1,962			(5,012	)		4,123			(4,961	)
Net income (loss)		17,773			(64,935	)		35,979			(59,463	)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments		794			(394	)		(6,951	)		1,960
Total comprehensive income (loss)	$	18,567		$	(65,329	)	$	29,028		$	(57,503	)
Net income (loss) per common share:(1)
Basic	$	0.23		$	(0.82	)	$	0.46		$	(0.78	)
Diluted	$	0.22		$	(0.82	)	$	0.45		$	(0.78	)
Shares used in computing net income (loss) per common share:(1)
Basic		78,410,554			78,928,780			78,393,042			75,849,551
Diluted		79,199,964			78,928,780			79,204,642			75,849,551

⁽¹⁾ Share count was adjusted for the 2:1 stock split that occurred on April 1, 2013.

EVERTEC, Inc.

Schedule 2: Unaudited Consolidated Balance Sheets

(Dollar amounts in thousands, except per share data)	June 30, 2014			December 31, 2013
Assets
Current Assets:
Cash	$	27,831		$	22,485
Restricted cash		5,195			5,433
Accounts receivable, net		71,479			68,434
Deferred tax asset		2,812			2,537
Prepaid expenses and other assets		21,846			17,524
Total current assets		129,163			116,413
Investment in equity investee		11,287			10,639
Property and equipment, net		29,371			33,240
Goodwill		369,203			373,119
Other intangible assets, net		347,114			367,780
Other long-term assets		13,745			18,162
Total assets		899,883			919,353
Liabilities and stockholders’ equity
Current Liabilities:
Accrued liabilities		29,159			26,571
Accounts payable		14,256			18,630
Unearned income		8,498			5,595
Income tax payable		1,801			259
Current portion of long-term debt		19,000			19,000
Short-term borrowings		23,000			51,200
Deferred tax liability, net		461			543
Total current liabilities		96,175			121,798
Long-term debt		656,626			665,680
Long-term deferred tax liability, net		20,702			20,212
Other long-term liabilities		251			333
Total liabilities		773,754			808,023
Commitments and contingencies
Stockholders’ equity
Preferred stock, par value $0.01; 2,000,000 shares authorized; none issued		—			—
Common stock, par value $0.01; 206,000,000 shares authorized; 78,631,847 shares issued and outstanding at June 30, 2014 (December 31, 2013- 78,286,465)		786			783
Additional paid-in capital		82,167			80,718
Accumulated earnings		49,701			29,403
Accumulated other comprehensive (loss) income, net of tax		(6,525	)		426
Total stockholders’ equity		126,129			111,330
Total liabilities and stockholders’ equity		899,883			919,353

EVERTEC, Inc.

Schedule 3: Unaudited Consolidated Statements of Cash Flows

	Six months ended June 30,
	2014			2013
Cash flows from operating activities
Net income (loss)	$	35,979		$	(59,463	)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		33,004			35,417
Amortization of debt issue costs and premium and accretion of discount		1,538			2,369
Write-off of debt issue costs, premium and discount accounted as loss on extinguishment		—			16,555
Provision for doubtful accounts and sundry losses		1,058			826
Deferred tax benefit		(430	)		(6,251	)
Share-based compensation		665			5,483
Unrealized loss (gain) of indemnification assets		173			(19	)
Loss on disposition of property and equipment and other intangibles		64			32
Earnings of equity method investment		(664	)		(625	)
Dividend received from equity method investment		326			500
(Increase) decrease in assets:
Accounts receivable, net		(2,045	)		492
Prepaid expenses and other assets		(4,267	)		(5,417	)
Other long-term assets		1,811			(323	)
(Decrease) increase in liabilities:
Accounts payable and accrued liabilities		(4,120	)		(3,347	)
Income tax payable		1,542			(1,867	)
Unearned income		2,903			1,736
Total adjustments		31,558			45,561
Net cash provided by (used in) operating activities		67,537			(13,902	)
Cash flow from investing activities
Net decrease (increase) in restricted cash		238			(44	)
Intangible assets acquired		(5,841	)		(7,927	)
Property and equipment acquired		(3,895	)		(4,384	)
Proceeds from sales of property and equipment		3			11
Net cash used in investing activities		(9,495	)		(12,344	)
Cash flows from financing activities
Proceeds from initial public offering, net of offering costs of $12,567		—			112,432
Proceeds from issuance of long-term debt		—			700,000
Statutory minimum withholding taxes paid on cashless exercises of stock options		(770	)		(16,688	)
Debt issuance costs		—			(12,077	)
Net decrease in short-term borrowing		(27,000	)		(14,000	)
Repayment of short-term borrowing for purchase of equipment		(1,200	)		(4,332	)
Dividends paid		(15,680	)		—
Tax windfall benefits on exercises of stock options		1,482			470
Issuance of common stock, net		54			28
Repayment of other financing agreement		(82	)		(112	)
Repayment of long-term debt		(9,500	)		(745,522	)
Net cash (used in) provided by financing activities		(52,696	)		20,199
Net increase (decrease) in cash		5,346			(6,047	)
Cash at beginning of the period		22,485			25,634
Cash at end of the period	$	27,831		$	19,587

EVERTEC, Inc.

Schedule 4: Reconciliation of GAAP to Non-GAAP Operating Results

	Quarters ended June 30,						Six months ended June 30,
(Dollar amounts in thousands)	2014			2013			2014			2013
Net income (loss)	$	17,773		$	(64,935	)	$	35,979		$	(59,463	)
Income tax expense (benefit)		1,962			(5,012	)		4,123			(4,961	)
Interest expense, net		6,422			9,698			13,256			24,918
Depreciation and amortization		16,390			17,842			33,004			35,417
EBITDA		42,547			(42,407	)		86,362			(4,089	)
Software maintenance reimbursement and other costs(1)		563			489			1,109			1,091
Equity income(2)		(17	)		153			(338	)		(124	)
Compensation and benefits(3)		437			6,218			925			6,549
Pro forma cost reduction adjustments(4)		—			75			—			150
Transaction and other non-recurring fees(5)		1,999			59,645			2,516			61,515
Management fees(6)		—			19,261			—			20,109
Purchase accounting(7)		(6	)		(3	)		173			(19	)
Adjusted EBITDA		45,523			43,431			90,747			85,182
Pro forma EBITDA adjustments(8)		—			(75	)		—			(150	)
Operating depreciation and amortization(9)		(7,281	)		(8,079	)		(14,764	)		(15,894	)
Cash interest expense, net(10)		(5,655	)		(5,434	)		(11,410	)		(11,110	)
Cash income taxes(11)		(402	)		(969	)		(402	)		(1,666	)
Adjusted Net Income	$	32,185		$	28,874		$	64,171		$	56,362
Adjusted Net income per common share: (12)
Basic	$	0.41		$	0.37		$	0.82		$	0.74
Diluted	$	0.41		$	0.35		$	0.81		$	0.70
Shares used in computing Adjusted Net Income per common share: (12)
Basic		78,410,554			78,928,780			78,393,042			75,849,551
Diluted		79,199,964			82,747,507			79,204,642			80,076,665

(1) Predominantly represents reimbursements received for certain software maintenance expenses as part of the Merger.

(2) Represents the elimination of non-cash equity earnings from our 19.99% equity investment in CONTADO, net of cash dividends received.

(3) Predominantly represents non-cash equity based compensation expense.

(4) Represents the pro forma effect of the expected net savings mainly in compensation and benefits from the reduction of certain employees. This pro forma amount was calculated using the net amount of actual expenses for the twelve-month period prior to their separation.

(5) Represents fees and expenses associated with non-recurring corporate transactions, including $1.1 million of fees associated with the withdrawn senior secured notes offering in the second quarter of 2014 and refinancing and debt extinguishment of $58.6 million in the second quarter of 2013.

(6) Represents consulting fees paid to Apollo and Popular. In connection with our initial public offering during the second quarter of 2013, our consulting agreements with Apollo and Popular were terminated.

(7) Represents the elimination of the effects of purchase accounting in connection with certain customer service and software-related arrangements whereby EVERTEC receives reimbursements from Popular.

(8) Represents the elimination of the pro forma benefits described in note 4 above.

(9) Represents operating depreciation and amortization expense, which excludes amounts generated as a result of the Merger.

(10) For the three and six months ended June 30, 2013, represents pro forma cash interest expense assuming EVERTEC’s April 2013 refinancing occurred on January 1, 2013, less interest income, as they appear on our consolidated statements of income (loss) and comprehensive income (loss), adjusted to exclude non-cash amortization of the debt issue costs, premium and accretion of discount. For the three and six months ended June 30, 2014, represents interest expense, less interest income, as they appear on our consolidated statements of income (loss) and comprehensive income (loss), adjusted to exclude non-cash amortization of the debt issue costs, premium and accretion of discount.

(11) Represents cash taxes paid for each period presented.

(12) Share count was adjusted for the 2:1 stock split that occurred on April 1, 2013.

Schedule 5: Unaudited Income from Operations by Segment

	Quarters ended June 30,						Six months ended June 30,
(Dollar amounts in thousands)	2014			2013			2014			2013
Segment income from operations
Merchant acquiring, net	$	8,777		$	8,161		$	17,181		$	17,395
Payment processing		15,314			11,720			30,031			24,480
Business solutions		12,113			8,784			23,537			19,318
Total segment income from operations		36,204			28,665			70,749			61,193
Merger related depreciation and amortization and other unallocated expenses(1)		(10,775	)		(11,727	)		(20,431	)		(23,856	)
Income from operations	$	25,429		$	16,938		$	50,318		$	37,337

(1) Predominantly represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.