Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 28, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | EVTC | |
Entity Registrant Name | EVERTEC, Inc. | |
Entity Central Index Key | 1,559,865 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 72,381,305 |
Unaudited Consolidated Condense
Unaudited Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 93,060 | $ 51,920 |
Restricted cash | 8,196 | 8,112 |
Accounts receivable, net | 76,902 | 77,803 |
Prepaid expenses and other assets | 26,500 | 20,430 |
Total current assets | 204,658 | 158,265 |
Investment in equity investee | 12,646 | 12,252 |
Property and equipment, net | 36,095 | 38,930 |
Goodwill | 371,204 | 370,986 |
Other intangible assets, net | 284,316 | 299,119 |
Long-term deferred tax asset | 988 | 805 |
Other long-term assets | 4,720 | 5,305 |
Total assets | 914,627 | 885,662 |
Current Liabilities: | ||
Accrued liabilities | 34,203 | 34,243 |
Accounts payable | 31,697 | 40,845 |
Unearned income | 5,383 | 4,531 |
Income tax payable | 2,687 | 1,755 |
Current portion of long-term debt | 46,344 | 19,789 |
Short-term borrowings | 48,000 | 28,000 |
Total current liabilities | 168,314 | 129,163 |
Long-term debt | 565,425 | 599,667 |
Long-term deferred tax liability | 14,378 | 14,978 |
Unearned income - long term | 20,577 | 17,303 |
Other long-term liabilities | 11,918 | 16,376 |
Total liabilities | 780,612 | 777,487 |
Commitments and contingencies (Note 11) | ||
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; 72,381,305 shares issued and outstanding at June 30, 2017 (December 31, 2016 - 72,635,032) | 723 | 726 |
Additional paid-in capital | 0 | 0 |
Accumulated earnings | 144,175 | 116,341 |
Accumulated other comprehensive loss, net of tax | (14,616) | (12,391) |
Total EVERTEC, Inc. stockholders’ equity | 130,282 | 104,676 |
Non-controlling interest | 3,733 | 3,499 |
Total equity | 134,015 | 108,175 |
Total liabilities and equity | $ 914,627 | $ 885,662 |
Unaudited Consolidated Condens3
Unaudited Consolidated Condensed Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized | 2,000,000 | 2,000,000 |
Preferred stock issued | 0 | 0 |
Common stock par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock authorized | 206,000,000 | 206,000,000 |
Common stock issued | 72,381,305 | 72,635,032 |
Common stock outstanding | 72,381,305 | 72,635,032 |
Unaudited Consolidated Condens4
Unaudited Consolidated Condensed Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues | ||||
Merchant acquiring, net | $ 23,506 | $ 23,277 | $ 45,991 | $ 46,167 |
Payment processing (from affiliates: $8,526, $7,951, $16,649 and $15,806) | 30,693 | 28,157 | 60,809 | 55,132 |
Business solutions (from affiliates: $36,416, $35,660, $73,306 and $70,958) | 49,312 | 46,238 | 97,991 | 91,852 |
Total revenues | 103,511 | 97,672 | 204,791 | 193,151 |
Operating costs and expenses | ||||
Cost of revenues, exclusive of depreciation and amortization shown below | 43,030 | 41,966 | 87,203 | 85,374 |
Selling, general and administrative expenses | 14,588 | 12,573 | 25,419 | 23,408 |
Depreciation and amortization | 15,899 | 14,941 | 31,583 | 29,611 |
Total operating costs and expenses | 73,517 | 69,480 | 144,205 | 138,393 |
Income from operations | 29,994 | 28,192 | 60,586 | 54,758 |
Non-operating income (expenses) | ||||
Interest income | 216 | 92 | 401 | 179 |
Interest expense | (7,406) | (6,138) | (14,442) | (12,016) |
Earnings (losses) of equity method investment | 115 | 29 | 258 | (101) |
Other income | 1,363 | 860 | 2,637 | 1,258 |
Total non-operating expenses | (5,712) | (5,157) | (11,146) | (10,680) |
Income before income taxes | 24,282 | 23,035 | 49,440 | 44,078 |
Income tax expense | 4,068 | 2,801 | 6,088 | 4,677 |
Net income | 20,214 | 20,234 | 43,352 | 39,401 |
Less: Net income (loss) attributable to non-controlling interest | 125 | (1) | 234 | 18 |
Net income attributable to EVERTEC, Inc.’s common stockholders | 20,089 | 20,235 | 43,118 | 39,383 |
Other comprehensive (loss) income, net of tax of $(18), $442, $19 and $446 | ||||
Foreign currency translation adjustments | (1,956) | (2,047) | (2,601) | (1,579) |
(Loss) gain on cash flow hedge | (242) | (1,475) | 376 | (4,547) |
Total comprehensive income attributable to EVERTEC, Inc.’s common stockholders | $ 17,891 | $ 16,713 | $ 40,893 | $ 33,257 |
Net income per common share - basic attributable to EVERTEC, Inc.’s common stockholders (usd per share) | $ 0.28 | $ 0.27 | $ 0.59 | $ 0.53 |
Net income per common share - diluted attributable to EVERTEC, Inc.’s common stockholders (usd per share) | 0.27 | 0.27 | 0.59 | 0.53 |
Cash dividends declared per share (usd per share) | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 |
Unaudited Consolidated Condens5
Unaudited Consolidated Condensed Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Payment processing revenue from affiliates | $ 8,526 | $ 7,951 | $ 16,649 | $ 15,806 |
Business solutions revenue from affiliates | 36,416 | 35,600 | 73,306 | 70,958 |
Other comprehensive income, income tax (benefit) expense expense | $ (18) | $ 442 | $ 19 | $ 446 |
Unaudited Consolidated Condens6
Unaudited Consolidated Condensed Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Earnings | Accumulated Other Comprehensive Loss | Non-Controlling Interest |
Changes in Stockholders’ Equity | ||||||
Cumulative adjustment from implementation of ASU 2016-09 | Accounting Standards Update 2016-09 | $ 4,203 | $ 4,203 | ||||
Beginning Balance at Dec. 31, 2016 | $ 108,175 | $ 726 | $ 0 | 116,341 | $ (12,391) | $ 3,499 |
Beginning Balance, Shares at Dec. 31, 2016 | 72,635,032 | 72,635,032 | ||||
Changes in Stockholders’ Equity | ||||||
Share-based compensation recognized | $ 4,189 | 4,189 | ||||
Repurchase of common stock | (7,671) | $ (5) | (2,702) | (4,964) | ||
Repurchase of common stock, Shares | (465,240) | |||||
Restricted stock units delivered, net of cashless | (1,485) | $ 2 | (1,487) | |||
Restricted stock units delivered, net of cashless, Shares | 211,513 | |||||
Net income | 43,352 | 43,118 | 234 | |||
Cash dividends declared on common stock | (14,523) | (14,523) | ||||
Other comprehensive loss | (2,225) | (2,225) | ||||
Ending Balance at Jun. 30, 2017 | $ 134,015 | $ 723 | $ 0 | $ 144,175 | $ (14,616) | $ 3,733 |
Ending Balance, Shares at Jun. 30, 2017 | 72,381,305 | 72,381,305 |
Unaudited Consolidated Condens7
Unaudited Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities | ||
Net income | $ 43,352 | $ 39,401 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 31,583 | 29,611 |
Amortization of debt issue costs and accretion of discount | 2,490 | 1,939 |
Provision for doubtful accounts and sundry losses | 107 | 858 |
Deferred tax benefit | (1,799) | (1,537) |
Share-based compensation | 4,189 | 3,403 |
Loss on disposition of property and equipment and other intangibles | 176 | 122 |
(Earnings) losses of equity method investment | (258) | 101 |
Decrease (increase) in assets: | ||
Accounts receivable, net | 953 | 2,776 |
Prepaid expenses and other assets | (6,067) | (2,972) |
Other long-term assets | 188 | (1,826) |
(Decrease) increase in liabilities: | ||
Accounts payable and accrued liabilities | (9,215) | (6,793) |
Income tax payable | 932 | 1,553 |
Unearned income | 4,126 | 2,578 |
Other long-term liabilities | 297 | 210 |
Total adjustments | 27,702 | 30,023 |
Net cash provided by operating activities | 71,054 | 69,424 |
Cash flows from investing activities | ||
Net (increase) decrease in restricted cash | (83) | 4,217 |
Additions to software | (9,989) | (10,015) |
Acquisitions, net of cash acquired | 0 | (5,947) |
Property and equipment acquired | (5,485) | (9,017) |
Proceeds from sales of property and equipment | 25 | 40 |
Net cash used in investing activities | (15,532) | (20,722) |
Cash flows from financing activities | ||
Statutory withholding taxes paid on share-based compensation | (1,485) | (290) |
Net increase in short-term borrowings | 20,000 | 3,000 |
Repayment of short-term borrowing for purchase of equipment and software | (996) | (778) |
Dividends paid | (14,523) | (14,964) |
Credit amendment fees | 0 | (3,587) |
Repurchase of common stock | (7,671) | (15,602) |
Repayment of long-term debt | (9,707) | (9,500) |
Net cash used in financing activities | (14,382) | (41,721) |
Net increase in cash | 41,140 | 6,981 |
Cash at beginning of the period | 51,920 | 28,747 |
Cash at end of the period | 93,060 | 35,728 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 12,280 | 10,225 |
Cash paid for income taxes | 5,116 | 4,815 |
Supplemental disclosure of non-cash activities: | ||
Foreign currency translation adjustments | (2,601) | (1,579) |
Payable due to vendor related to software acquired | $ 2,360 | $ 3,556 |
The Company and Basis of Presen
The Company and Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
The Company and Basis of Presentation | The Company and Basis of Presentation The Company EVERTEC, Inc. (formerly known as Carib Latam Holdings, Inc.) and its subsidiaries (collectively the “Company,” or “EVERTEC”) is a leading full-service transaction processing business in Latin America and the Caribbean. The Company is based in Puerto Rico and provides a broad range of merchant acquiring, payment processing and business process management. As of July 3, 2017, with the completion of the acquisition of 100% of the share capital of EFT Group S.A., a Chilean-based payment processing and software company known commercially as PayGroup (“PayGroup”), the Company provides services across 27 countries in the region. EVERTEC owns and operates the ATH network, one of the leading automated teller machine (“ATM”) and personal identification number (“PIN”) debit networks in Latin America. In addition, EVERTEC provides a comprehensive suite of services for core bank processing, cash processing and technology outsourcing in 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 consolidated condensed 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 consolidated condensed financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited consolidated condensed 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 SEC and, accordingly, these consolidated condensed financial statements should be read in conjunction with the Audited Consolidated Financial Statements of the Company for the year ended December 31, 2016 , included in the Company’s 2016 Form 10-K. In the opinion of management, the accompanying consolidated condensed 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 | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently issued accounting pronouncements The Financial Accounting Standards Board ("FASB") has issued the following accounting pronouncements and guidance relevant to the Company’s operations: In May 2017, the FASB issued updated guidance to clarify the scope of modifications under share based compensation accounting. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The amendments in this update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued. The amendments in this update should be applied prospectively to an award modified on or after the adoption date. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. Accounting pronouncements issued prior to 2017 and not yet adopted During 2014, the FASB issued new guidance for revenue from contracts with customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and also includes changes in the accounting for customer contract acquisition costs and fulfillment costs. During 2016, the FASB issued several additional updates that amended the proposed guidance. These new standards will replace most existing revenue recognition guidance in U.S. GAAP, and are effective for public reporting companies for interim and annual periods beginning after December 15, 2017. The standards permit two methods of adoption: retrospectively to each prior reporting period presented (retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The effective date for the Company is January 1, 2018. Management has determined to apply the amendments in this update retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application. Management is continuing to evaluate the potential impact this new guidance will have on the Company’s financial statements. Management has conducted initial analysis and is completing detailed contract reviews to determine necessary adjustments to accounting policies and to support an evaluation of the standard’s impact on the Company’s consolidated results of operations and financial condition. Based on work completed at this time, Management believes the new standard may have potentially significant impacts in the following areas: - Under current policies, upfront activities (such as setup activities) are not generally analyzed to determine whether they have standalone value because the contingent revenue cap under the existing revenue guidance would prohibit allocation of hosting revenue to that upfront activity. Under the new standards, the contingent revenue cap no longer exists, so certain upfront activities included in the implementation process will need to be evaluated to determine whether they qualify as separate units of accounting. If they are separate units of accounting, then revenue would be allocated to the upfront activity, recognized as those activities are performed, rather than over the hosting period. - Where the Company charges upfront fees for implementation or set-up activities, including fees charged in pre-production periods, the period over which these fees will be recognized may in some cases be shorter than our current practice. - Revenue for certain professional services that are recognized upon completion of the services will be evaluated under the new standards to determine if revenue should be recognized over time. - Required enhancements to current disclosures around revenue recognition. At this time, Management is not able to reasonably estimate the impact that adoption is expected to have. The Company continues to implement appropriate changes to its business processes, systems and controls to support recognition and disclosures under the new standard. Significant activities that are in process are the calculation of the transition adjustment, drafting and approval of new accounting policies and the implementation of new processes, controls and systems to accommodate the new policies and to compile the information for the enhanced disclosures under the new standards. The implementation process is ongoing and Management expects to be in a position to report under the new accounting standard upon adoption in the first quarter of 2018. During 2016, the FASB issued updated guidance for financial reporting about leasing transactions. The amendments in this update require a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. In addition, the update requires that both financing and operating leases be recognized on the balance sheet. The guidance also requires disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The Company expects to adopt this guidance in the period required by the update and continues to evaluate the impact that this update will have on its consolidated financial statements. During 2016, the FASB issued updated guidance for the measurement of credit losses on financial instruments. The amendments in this update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset or assets to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The Company expects to adopt this guidance in the fiscal period required by this update and continues to evaluate if the adoption will have an impact on the consolidated financial statements. During 2016, the FASB issued updated guidance for the classification of certain cash receipts and cash payments on the statement of cash flows. The amendments in this update provide specific guidance for the classification of eight issues: debt prepayment or extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of an insurance claim; proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and applications of the predominance principle. The Company expects to adopt this guidance in the fiscal period required by this update and continues to evaluate if the adoption will have an impact on the consolidated financial statements. During 2016, the FASB issued updated guidance for tax treatment of intra-entity transfers of assets other than inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The FASB decided that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this update eliminate the exception for an intra-entity transfer of an asset other than inventory. The amendments in this update do not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer of an asset other than inventory. The Company expects to adopt this guidance in the fiscal period required by this update and continues to evaluate if the adoption will have an impact on the consolidated financial statements. |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net consists of the following: (Dollar amounts in thousands) Useful life June 30, 2017 December 31, 2016 Buildings 30 $ 1,529 $ 1,559 Data processing equipment 3 - 5 106,482 105,052 Furniture and equipment 3 - 20 6,278 7,311 Leasehold improvements 5 -10 3,162 3,057 117,451 116,979 Less - accumulated depreciation and amortization (82,692 ) (79,431 ) Depreciable assets, net 34,759 37,548 Land 1,336 1,382 Property and equipment, net $ 36,095 $ 38,930 Depreciation and amortization expense related to property and equipment for the three and six months ended June 30, 2017 amounted to $3.7 million and $7.4 million , compared to $3.4 million and $6.8 million for the same period in 2016 . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
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 reportable segments, were as follows (See Note 13): (Dollar amounts in thousands) Merchant Payment Business Total Balance at December 31, 2016 $ 138,121 $ 186,688 $ 46,177 $ 370,986 Adjustment to goodwill from prior year acquisition — 1,099 — 1,099 Foreign currency translation adjustments — (516 ) (365 ) (881 ) Balance at June 30, 2017 $ 138,121 $ 187,271 $ 45,812 $ 371,204 Goodwill is tested for impairment on an annual basis, or more often if events or changes in circumstances indicate there may be impairment. For 2016, the Company used the qualitative assessment option or step zero process. Using this process, the Company first assessed whether it was “more likely than not” that the fair value of a reporting unit was less than its carrying amount. The Company conducted a qualitative assessment of each reporting unit’s fair value, or step zero process, as of August 31, 2016. As part of the Company’s qualitative assessment, Management considered the results of the Company’s 2015 impairment test (which indicated that the fair value of each reporting unit was in excess of it carrying amount by 120.9% — 145.5% ) as well as current market conditions and changes in the carrying amount of the Company’s reporting units that occurred subsequent to the 2015 impairment test. Based on the results of this qualitative assessment, EVERTEC believes the fair value of goodwill for each of the Company’s reporting units continues to exceed their respective carrying amounts and concluded that it was not necessary to conduct the two-step goodwill impairment test. There were no triggering events or changes in circumstances that, subsequent to the impairment test, would have required an additional impairment evaluation. No impairment losses were recognized for the six months ended June 30, 2017 or 2016 . The carrying amount of other intangible assets at June 30, 2017 and December 31, 2016 was as follows: June 30, 2017 (Dollar amounts in thousands) Useful life in years Gross Accumulated Net carrying Customer relationships 8 - 14 $ 334,207 $ (154,632 ) $ 179,575 Trademark 10 - 15 39,950 (23,382 ) 16,568 Software packages 3 -10 185,892 (128,815 ) 57,077 Non-compete agreement 15 56,539 (25,443 ) 31,096 Other intangible assets, net $ 616,588 $ (332,272 ) $ 284,316 December 31, 2016 (Dollar amounts in thousands) Useful life in years Gross Accumulated Net carrying Customer relationships 8 - 14 $ 334,455 $ (141,829 ) $ 192,626 Trademark 10 - 15 39,950 (21,650 ) 18,300 Software packages 3 - 10 176,267 (121,055 ) 55,212 Non-compete agreement 15 56,539 (23,558 ) 32,981 Other intangible assets, net $ 607,211 $ (308,092 ) $ 299,119 For the three and six months ended June 30, 2017 , the Company recorded amortization expense related to other intangibles of $12.2 million and $24.2 million , respectively, compared to $11.4 million and $22.7 million for the corresponding 2016 period. The estimated amortization expense of the balances outstanding at June 30, 2017 for the next five years is as follows: (Dollar amounts in thousands) Remaining 2017 $ 23,689 2018 43,436 2019 39,943 2020 35,115 2021 31,845 |
Debt and Short-Term Borrowings
Debt and Short-Term Borrowings | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Short-Term Borrowings | Debt and Short-Term Borrowings Total debt at June 30, 2017 and December 31, 2016 follows: (Dollar amounts in thousands) June 30, 2017 December 31, 2016 Senior Secured Credit Facility (2018 Term A) due on April 17, 2018 paying interest at a variable interest rate (London InterBank Offered Rate (“LIBOR”) plus applicable margin(1)(3)) $ 27,894 $ 28,721 Senior Secured Credit Facility (2020 Term A) due on January 17, 2020 paying interest at a variable interest rate (LIBOR plus applicable margin(3)(4)) 206,657 212,661 Senior Secured Credit Facility (Term B) due on April 17, 2020 paying interest at a variable interest rate (LIBOR plus applicable margin(2)(3)) 377,218 378,074 Senior Secured Revolving Credit Facility(6) 48,000 28,000 Note Payable due on October 1, 2017 (3) 772 1,524 Note Payable due on July 31, 2017 (3) 372 357 Note Payable due on August 31, 2019(5) 740 890 Note Payable due on April 30, 2021 (3) 476 532 Total debt $ 662,129 $ 650,759 (1) Applicable margin of 2.25% at June 30, 2017 and December 31, 2016 . (2) Subject to a minimum rate (“LIBOR floor”) of 0.75% plus applicable margin of 2.50% at June 30, 2017 and December 31, 2016 . (3) Net of unaccreted discount and unamortized debt issue costs, as applicable. (4) Applicable margin of 2.50% at June 30, 2017 and December 31, 2016 . (5) Fixed interest rate of 7.50% . (6) Applicable margin of 2.50% at June 30, 2017 and December 31, 2016 . Senior Secured Credit Facilities On April 17, 2013, EVERTEC Group entered into a credit agreement (the “2013 Credit Agreement”) governing the senior secured credit facilities, consisting of a $300.0 million term loan A facility (the “Term A Loan”), a $400.0 million term loan B facility (the “Term B Loan”, together with the Term A Loan, the “Senior Secured term loans”) and a $100.0 million revolving credit facility (the "Revolving Facility"). During 2016, the Company entered into two separate amendments to the 2013 Credit Agreement. In the second quarter of 2016, EVERTEC Group, together with certain other direct and indirect subsidiaries of the Company, entered into a second amendment and waiver to the outstanding 2013 Credit Agreement (the “Second Amendment”). In the fourth quarter of 2016, EVERTEC Group, together with certain other direct and indirect subsidiaries of the Company, entered into a third amendment (the “Third Amendment”) to the 2013 Credit Agreement. The Third Amendment extends the maturity of (a) approximately $219 million of EVERTEC Group’s existing approximately $250 million of Term A loan facility to January 17, 2020 (the “2020 Term A Loan”) and (b) $65 million of EVERTEC Group’s existing $100 million of Revolving Facility to January 17, 2020. The remaining approximately $30 million of Term A loan (the “2018 Term A Loan”) and the $35 million of Revolving Facility that were not extended will remain in place and mature as originally scheduled on April 17, 2018. The Term B loan facility will remain in place and mature as originally scheduled on April 17, 2020. The unpaid principal balance at June 30, 2017 of the 2018 Term A Loan, the 2020 Term A Loan and the Term B Loan was $28.4 million , $209.5 million and $384.0 million , respectively. The additional borrowing capacity for the Revolving Facility loan at June 30, 2017 was $52.0 million . Notes payable In December 2014, June 2015 and May 2016, EVERTEC Group entered into non-interest bearing financing agreements amounting to $4.6 million , $1.1 million , and $0.7 million , respectively, and in October 2016 entered into an interest bearing agreement of $1.1 million , to purchase software. As of June 30, 2017 and December 31, 2016 , the outstanding principal balance of the notes payable is $2.4 million and $3.4 million , respectively. The current portion of these notes is recorded as part of accounts payable and the long-term portion is included in other long-term liabilities. Interest Rate Swap As of June 30, 2017 , the Company has the following interest rate swap agreement converting a portion of the interest rate exposure on the Company's Term B loan from variable to fixed: Effective date Maturity Date Notional Amount Variable Rate Fixed Rate January 2017 April 2020 $200 million 1-month LIBOR 1.9225% The Company has accounted for this transaction as a cash flow hedge. The fair value of the Company’s derivative instrument is determined using a standard valuation model. The significant inputs used in this model are readily available in public markets, or can be derived from observable market transactions, and therefore have been classified as Level 2 within the fair value hierarchy. Inputs used in this standard valuation model for derivative instruments include the applicable forward rates and discount rates. The discount rates are based on the historical LIBOR Swap rates. As of June 30, 2017 and December 31, 2016 , the carrying amount of the derivative on the Company’s balance sheet is as follows: (Dollar amounts in thousands) June 30, 2017 December 31, 2016 Other long-term liabilities $ 1,588 $ 1,964 During the three and six months ended June 30, 2017 , the Company reclassified losses of $0.5 million and $0.9 million respectively, from accumulated other comprehensive loss into income through interest expense. Based on current LIBOR rates, the Company expects to reclassify $1.7 million from accumulated other comprehensive loss into income through interest expense over the next 12 months. Refer to Note 6 for tabular disclosure of the fair value of derivatives and to Note 7 for tabular disclosure of gains recorded on cash flow hedging activities. The cash flow hedge is considered highly effective and no impact on earnings is expected due to hedge ineffectiveness. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements Recurring Fair Value Measurements Fair value measurement provisions establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. These provisions describe three levels of input that may be used to measure fair value: Level 1 : Inputs are unadjusted, quoted prices for identical assets or liabilities in an active market at the measurement date. Level 2 : Inputs, other than quoted prices included in Level 1, which are observable for the asset or liability through corroboration with market data at the measurement date. Level 3 : Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The Company uses observable inputs when available. Fair value is based upon quoted market prices when available. If market prices are not available, the Company may employ models that mostly use market-based inputs including yield curves, interest rates, volatilities, and credit curves, among others. The Company limits valuation adjustments to those deemed necessary to ensure that the financial instrument’s fair value adequately represents the price that would be received or paid in the marketplace. Valuation adjustments may include consideration of counterparty credit quality and liquidity as well as other criteria. The estimated fair value amounts are subjective in nature and may involve uncertainties and matters of significant judgment for certain financial instruments. Changes in the underlying assumptions used in estimating fair value could affect the results. The fair value measurement levels are not indicative of risk of investment. The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value estimates are made at a specific point in time based on the type of financial instrument and relevant market information. Many of these estimates involve various assumptions and may vary significantly from amounts that could be realized in actual transactions. The following table summarizes the fair value measurement by level at June 30, 2017 and December 31, 2016 for the liability measured at fair value on a recurring basis: (Dollar amounts in thousands) Level 1 Level 2 Level 3 Total June 30, 2017 Financial liabilities: Interest rate swap $ — $ 1,588 $ — $ 1,588 December 31, 2016 Financial liabilities: Interest rate swap $ — $ 1,964 $ — $ 1,964 The following table presents the carrying value, as applicable, and estimated fair values for financial instruments at June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (Dollar amounts in thousands) Carrying Fair Carrying Fair Financial liabilities: Interest rate swap $ 1,588 $ 1,588 $ 1,964 $ 1,964 Senior Secured Term B Loan 377,218 382,080 378,074 383,491 2018 Term A Loan 27,894 28,168 28,721 29,268 2020 Term A Loan 206,657 208,232 212,661 213,872 The fair value of the term loans at June 30, 2017 and December 31, 2016 were obtained using the prices provided by third party service providers. Their pricing is based on various inputs such as: market quotes, recent trading activity in a non-active market or imputed prices. Also, the pricing may include the use of an algorithm that could take into account movement in the general high yield market, among other variants. The unpaid principal balance of the 2018 Term A Loan as of June 30, 2017 and December 31, 2016 was $28.4 million and $29.5 million , respectively, and the unpaid principal balance of the 2020 Term A Loan was $209.5 million and $216.0 million for the same periods, respectively. The unpaid principal balance of the Term B Loan was $384.0 million and $386.0 million as of June 30, 2017 and December 31, 2016 , respectively. The Senior Secured term loans, which are not measured at fair value in the balance sheets, would be categorized as Level 3 in the fair value hierarchy. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2017 | |
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 six months period ended June 30, 2017 : (Dollar amounts in thousands) Foreign Currency Cash Flow Hedge Total Balance - December 31, 2016 $ (10,427 ) $ (1,964 ) $ (12,391 ) Other comprehensive loss before reclassifications (2,601 ) (538 ) (3,139 ) Effective portion reclassified to Net Income — 914 914 Balance - June 30, 2017, net of tax $ (13,028 ) $ (1,588 ) $ (14,616 ) |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | Share-based Compensation Long-term Incentive Plan ("LTIP") In the first quarter of 2015, 2016 and 2017, the Compensation Committee of the Board of Directors approved grants of restricted stock units (“RSUs”) to executives and certain employees pursuant to the 2015 LTIP, 2016 LTIP and 2017 LTIP, respectively, all under the terms of our 2013 Equity Incentive Plan. Under the LTIPs, the Company granted restricted stock units to eligible participants as time-based awards and/or performance-based awards. The vesting of the RSUs is dependent upon service, market, 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 is providing services to the Company on the vesting date. Time-based awards vest over a period of three years in substantially equal installments commencing on the start of the fiscal year during which the RSUs were granted or on the grant date and ending on January 1 of each year for the 2015 LTIP, on February 19 of each year for the 2016 LTIP and on February 24 of each year for the 2017 LTIP. Employees that received awards with market conditions under the 2015 and 2016 LTIPs are entitled to receive a specific number of shares of the Company’s common stock on the vesting date if the Company’s total shareholder return (“TSR”) target relative to a specified group of industry peer companies is achieved. Employees that received awards with performance conditions are entitled to receive a specific number of shares of the Company’s common stock on the vesting date if the Cumulative Annual Growth Rate (“CAGR”) of Diluted EPS target over three years is achieved for the 2015 LTIP. For the 2016 LTIP, the CAGR EPS RSUs was based on the Company’s actual one -year diluted EPS measured over the period commencing on January 1, 2016 and ending on December 31, 2016, relative to the goals set by the Compensation Committee. The shares earned according to the plan are further subject to a two -year service vesting period. For the performance-based awards under the 2017 LTIP, the Compensation Committee established Adjusted EBITDA as the primary performance measure while maintaining focus on total shareholder return through the use of a market-based TSR performance modifier. 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, 2017 and ending on December 31, 2017, relative to the goals set by the Compensation Committee for this same period. The shares earned will be subject to a further two -year service vesting period. Performance and market-based awards vest at the end of the performance period that commenced on January 1, 2015 for the 2015 LTIP, February 19, 2016 for the 2016 LTIP and February 24, 2017 for the 2017 LTIP. The periods end respectively on January 1, 2018 for the 2015 LTIP, February 19, 2019 for the 2016 LTIP and February 24, 2020 for the 2017 LTIP. Awards are forfeited if the employee voluntarily ceases to be employed by the Company prior to vesting. The following table summarizes the stock options activity for the six months ended June 30, 2017 : Shares Weighted-Average Outstanding December 31, 2016 20,000 $ 6.04 Outstanding June 30, 2017 20,000 $ 6.04 Exercisable at June 30, 2017 — $ — Management uses the fair value method of recording stock-based compensation as described in the guidance for stock compensation in ASC topic 718. The following table summarizes nonvested restricted shares and RSUs activity for the six months ended June 30, 2017 : Nonvested restricted shares and RSUs Shares Weighted-average Nonvested at December 31, 2016 1,212,364 $ 14.88 Forfeited 106,298 16.30 Vested 310,005 15.26 Granted 683,393 17.83 Nonvested at June 30, 2017 1,479,454 $ 16.06 For the three and six months ended June 30, 2017 and 2016 , the Company recognized $2.0 million and $4.2 million , and $1.8 million and $3.4 million of share-based compensation expense, respectively. As of June 30, 2017 , the maximum unrecognized cost for restricted stocks and RSU’s was $16.8 million . The cost is expected to be recognized over a weighted average period of 2.05 years. Unrecognized share-based compensation expense related to stock options for the same period is minor and is expected to be recognized during the current year. |
Income Tax
Income Tax | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax The components of income tax expense for the three and six months ended June 30, 2017 and 2016 , respectively, consisted of the following: Three months ended Six months ended (Dollar amounts in thousands) 2017 2016 2017 2016 Current tax provision $ 4,380 $ 3,534 $ 7,887 $ 6,214 Deferred tax benefit (312 ) (733 ) (1,799 ) (1,537 ) Income tax expense $ 4,068 $ 2,801 $ 6,088 $ 4,677 The Company conducts operations in Puerto Rico and certain countries in Latin America. As a result, the income tax expense includes the effect of taxes paid to the Puerto Rico government as well as foreign jurisdictions. The following table presents the components of income tax expense for the three and six months ended June 30, 2017 and 2016 , respectively, and its segregation based on location of operations: Three months ended June 30, Six months ended June 30, (Dollar amounts in thousands) 2017 2016 2017 2016 Current tax provision Puerto Rico $ 3,054 $ 1,795 $ 4,860 $ 3,561 United States 386 72 200 236 Foreign countries 940 1,667 2,827 2,417 Total current tax provision $ 4,380 $ 3,534 $ 7,887 $ 6,214 Deferred tax (benefit) provision Puerto Rico $ (463 ) $ (431 ) $ (1,052 ) $ (910 ) United States 20 (26 ) (83 ) (51 ) Foreign countries 131 (276 ) (664 ) (576 ) Total deferred tax benefit $ (312 ) $ (733 ) $ (1,799 ) $ (1,537 ) 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 June 30, 2017 , the Company has $30.0 million of unremitted earnings from foreign subsidiaries. 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. On June 27, 2017 the Company received a one-time repatriation of cash from a foreign subsidiary of $8.9 million to partially fund the acquisition of a Chilean based payment processing company. This distribution was subject to withholding at source of 15% in the country of origin and accordingly the Company recognized current income tax expense of $1.3 million . No income tax expense was recorded in the country that received the distribution because of the availability to credit foreign taxes paid both at the corporate level and the withholding at source on the distribution. The Company believes that this one time repatriation of existing funds from a foreign subsidiary does not prohibit applying the indefinite reinvestment exception to the remaining undistributed earnings because Management has sufficient evidence of specific plans to continue reinvesting the foreign subsidiary’s undistributed earnings. As of June 30, 2017 , the gross deferred tax asset amounted to $5.5 million and the gross deferred tax liability amounted to $19.0 million , compared to $5.0 million and $19.2 million as of December 31, 2016 . The Company estimates that it is reasonably possible that the potential liability for uncertain tax positions relating to the net operating loss created by previously deducted transaction costs will decrease by no more than $4.5 million in the next twelve months as a result of the expiration of the statute of limitations. Pursuant to the applicable provision of the PR Code, net operating losses (“NOL”) can be carried forward for a period of seven, ten or twelve taxable years, depending on the taxable year generated. Act 72 enacted on May 29, 2015, limited the amount of a NOL deduction to 80% for regular tax and 70% for alternative minimum tax. At June 30, 2017 , the Company has $11.8 million in NOL carryforwards for tax purposes available to offset future taxable income. |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, Six months ended June 30, (Dollar amounts in thousands, except per share information) 2017 2016 2017 2016 Net income attributable to EVERTEC, Inc. $ 20,089 $ 20,235 $ 43,118 $ 39,383 Less: non-forfeitable dividends on restricted stock 3 3 3 15 Net income available to EVERTEC, Inc.’s common shareholders $ 20,086 $ 20,232 $ 43,115 $ 39,368 Weighted average common shares outstanding 72,508,852 74,706,042 72,572,157 74,826,946 Weighted average potential dilutive common shares (1) 565,739 313,443 515,230 131,180 Weighted average common shares outstanding - assuming dilution 73,074,591 75,019,485 73,087,387 74,958,126 Net income per common share - basic $ 0.28 $ 0.27 $ 0.59 $ 0.53 Net income per common share - diluted $ 0.27 $ 0.27 $ 0.59 $ 0.53 (1) Potential common shares consist of common stock issuable under the assumed exercise of stock options and restricted stock awards using the treasury stock method. On February 17, 2017 , the Board declared a quarterly cash dividend of $0.10 per share of common stock, which was paid on March 20, 2017 to stockholders of record as of the close of business on March 1, 2017 . On April 27, 2017 , the Board declared a quarterly cash dividend of $0.10 per share of common stock, which was paid on June 9, 2017 to stockholders of record as of the close of business on May 8, 2017 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Certain lease agreements contain provisions for future rent increases. The total amount of rental payments due over the lease term is being charged to rent expense on the straight-line method over the term of the lease. The difference between rent expense recorded and the amount paid is recorded as a deferred rent obligation. Rent expense of office facilities and real estate for the three and six months ended June 30, 2017 and 2016 amounted $1.8 million and $4.0 million , and $2.0 million and $4.0 million , respectively. Rent expense for telecommunications and other equipment for the three and six months ended June 30, 2017 and 2016 amounted to $1.6 million and $3.0 million , and $1.5 million and $3.0 million , respectively. EVERTEC 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 | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The following table presents the Company’s transactions with related parties for the three and six months ended June 30, 2017 and 2016 : Three months ended June 30, Six months ended June 30, (Dollar amounts in thousands) 2017 2016 2017 2016 Total revenues (1)(2) $ 44,942 $ 43,611 $ 89,955 $ 86,764 Cost of revenues $ 349 $ 539 $ 835 $ 798 Rent and other fees $ 1,812 $ 2,029 $ 3,848 $ 3,963 Interest earned from affiliate Interest income $ 39 $ 55 $ 78 $ 114 (1) Total revenues from Popular as a percentage of revenues were 43% , 44% , 43% and 44% for the periods presented above, respectively. (2) Includes revenues generated from investee accounted for under the equity method of $0.6 million and $1.1 million , and $0.5 million and $1.0 million for the three and six months ended June 30, 2017 , and 2016 , respectively. At June 30, 2017 and December 31, 2016 , EVERTEC had the following balances arising from transactions with related parties: (Dollar amounts in thousands) June 30, 2017 December 31, 2016 Cash and restricted cash deposits in affiliated bank $ 24,661 $ 15,918 Other due/to from affiliate Accounts receivable $ 20,255 $ 21,461 Prepaid expenses and other assets $ 1,962 $ 699 Other long-term assets $ 416 $ 554 Accounts payable $ 5,846 $ 6,300 Unearned income $ 18,062 $ 14,383 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information During the periods presented, the Company operated its business in the segments described below. As a result of the acquisition of PayGroup discussed in Note 14, the Chief Operating Decision Maker (“CODM”) is evaluating the current structure of the Company and the information that he regularly reviews for purposes of allocating resources and assessing performance. The Company’s reportable segments will be re-evaluated for any changes that occur as a result of the acquisition. The Company operates in three business segments: Merchant Acquiring, Payment Processing and Business Solutions. The Company’s business segments are organized based on the nature of products and services. The CODM reviews their individual financial information to assess performance and to allocate resources. The following tables set forth information about the Company’s operations by its three business segments for the periods indicated: (Dollar amounts in thousands) Merchant Payment Business Other Total Three months ended June 30, 2017 Revenues $ 23,506 $ 39,476 $ 49,312 $ (8,783 ) (1) $ 103,511 Income from operations 7,192 16,566 13,521 (7,285 ) (2) 29,994 Three months ended June 30, 2016 Revenues $ 23,277 $ 36,289 $ 46,238 $ (8,132 ) (1) $ 97,672 Income from operations 8,786 14,276 15,126 (9,996 ) (2) 28,192 (Dollar amounts in thousands) Merchant Payment Business Other Total Six months ended June 30, 2017 Revenues $ 45,991 $ 78,209 $ 97,991 $ (17,400 ) (1) $ 204,791 Income from operations 14,100 33,799 27,172 (14,485 ) (2) 60,586 Six months ended June 30, 2016 Revenues $ 46,167 $ 70,828 $ 91,852 $ (15,696 ) (1) $ 193,151 Income from operations 17,212 26,690 28,369 (17,513 ) (2) 54,758 (1) Represents the elimination of intersegment revenues for services provided by the Payment Processing segment to the Merchant Acquiring segment, and other miscellaneous intersegment revenues. (2) Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses. The reconciliation of income from operations to consolidated net income for the three and six months ended June 30, 2017 and 2016 is as follows: Three months ended Six months ended (Dollar amounts in thousands) 2017 2016 2017 2016 Segment income from operations Merchant Acquiring $ 7,192 $ 8,786 $ 14,100 $ 17,212 Payment Processing 16,566 14,276 33,799 26,690 Business Solutions 13,521 15,126 27,172 28,369 Total segment income from operations 37,279 38,188 75,071 72,271 Merger related depreciation and amortization and other unallocated expenses (1) (7,285 ) (9,996 ) (14,485 ) (17,513 ) Income from operations 29,994 28,192 60,586 54,758 Interest expense, net (7,190 ) (6,046 ) (14,041 ) (11,837 ) Earnings (losses) of equity method investment 115 29 258 (101 ) Other income 1,363 860 2,637 1,258 Income tax expense (4,068 ) (2,801 ) (6,088 ) (4,677 ) Net income $ 20,214 $ 20,234 $ 43,352 $ 39,401 (1) Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 3, 2017 , EVERTEC, Inc’s main operating subsidiary, EVERTEC Group, LLC, and EVERTEC Panama, S.A. closed on the direct and indirect acquisition of 100% of the share capital of PayGroup for approximately US $46 million , which comprises a cash payment of approximately US $38.5 million and the assumption of approximately US $7.5 million in debt and other liabilities. The acquisition was pursuant to a share purchase promise agreement entered into on February 17, 2017 . On July 25, 2017 , the Company’s Board of Directors declared a regular quarterly cash dividend of $0.10 per share on the Company’s outstanding shares of common stock. The Board anticipates declaring this dividend in future quarters on a regular basis; however future declarations of dividends are subject to the Board of Director's approval and may be adjusted as business needs or market conditions change. The cash dividend of $0.10 per share will be paid on September 8, 2017 to stockholders of record as of the close of business on August 7, 2017 . |
The Company and Basis of Pres22
The Company and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
The Company | The Company EVERTEC, Inc. (formerly known as Carib Latam Holdings, Inc.) and its subsidiaries (collectively the “Company,” or “EVERTEC”) is a leading full-service transaction processing business in Latin America and the Caribbean. The Company is based in Puerto Rico and provides a broad range of merchant acquiring, payment processing and business process management. As of July 3, 2017, with the completion of the acquisition of 100% of the share capital of EFT Group S.A., a Chilean-based payment processing and software company known commercially as PayGroup (“PayGroup”), the Company provides services across 27 countries in the region. EVERTEC owns and operates the ATH network, one of the leading automated teller machine (“ATM”) and personal identification number (“PIN”) debit networks in Latin America. In addition, EVERTEC provides a comprehensive suite of services for core bank processing, cash processing and technology outsourcing in 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 consolidated condensed 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 consolidated condensed financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited consolidated condensed 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 SEC and, accordingly, these consolidated condensed financial statements should be read in conjunction with the Audited Consolidated Financial Statements of the Company for the year ended December 31, 2016 , included in the Company’s 2016 Form 10-K. In the opinion of management, the accompanying consolidated condensed 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 | Recently issued accounting pronouncements The Financial Accounting Standards Board ("FASB") has issued the following accounting pronouncements and guidance relevant to the Company’s operations: In May 2017, the FASB issued updated guidance to clarify the scope of modifications under share based compensation accounting. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The amendments in this update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued. The amendments in this update should be applied prospectively to an award modified on or after the adoption date. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. Accounting pronouncements issued prior to 2017 and not yet adopted During 2014, the FASB issued new guidance for revenue from contracts with customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and also includes changes in the accounting for customer contract acquisition costs and fulfillment costs. During 2016, the FASB issued several additional updates that amended the proposed guidance. These new standards will replace most existing revenue recognition guidance in U.S. GAAP, and are effective for public reporting companies for interim and annual periods beginning after December 15, 2017. The standards permit two methods of adoption: retrospectively to each prior reporting period presented (retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The effective date for the Company is January 1, 2018. Management has determined to apply the amendments in this update retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application. Management is continuing to evaluate the potential impact this new guidance will have on the Company’s financial statements. Management has conducted initial analysis and is completing detailed contract reviews to determine necessary adjustments to accounting policies and to support an evaluation of the standard’s impact on the Company’s consolidated results of operations and financial condition. Based on work completed at this time, Management believes the new standard may have potentially significant impacts in the following areas: - Under current policies, upfront activities (such as setup activities) are not generally analyzed to determine whether they have standalone value because the contingent revenue cap under the existing revenue guidance would prohibit allocation of hosting revenue to that upfront activity. Under the new standards, the contingent revenue cap no longer exists, so certain upfront activities included in the implementation process will need to be evaluated to determine whether they qualify as separate units of accounting. If they are separate units of accounting, then revenue would be allocated to the upfront activity, recognized as those activities are performed, rather than over the hosting period. - Where the Company charges upfront fees for implementation or set-up activities, including fees charged in pre-production periods, the period over which these fees will be recognized may in some cases be shorter than our current practice. - Revenue for certain professional services that are recognized upon completion of the services will be evaluated under the new standards to determine if revenue should be recognized over time. - Required enhancements to current disclosures around revenue recognition. At this time, Management is not able to reasonably estimate the impact that adoption is expected to have. The Company continues to implement appropriate changes to its business processes, systems and controls to support recognition and disclosures under the new standard. Significant activities that are in process are the calculation of the transition adjustment, drafting and approval of new accounting policies and the implementation of new processes, controls and systems to accommodate the new policies and to compile the information for the enhanced disclosures under the new standards. The implementation process is ongoing and Management expects to be in a position to report under the new accounting standard upon adoption in the first quarter of 2018. During 2016, the FASB issued updated guidance for financial reporting about leasing transactions. The amendments in this update require a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. In addition, the update requires that both financing and operating leases be recognized on the balance sheet. The guidance also requires disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The Company expects to adopt this guidance in the period required by the update and continues to evaluate the impact that this update will have on its consolidated financial statements. During 2016, the FASB issued updated guidance for the measurement of credit losses on financial instruments. The amendments in this update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset or assets to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The Company expects to adopt this guidance in the fiscal period required by this update and continues to evaluate if the adoption will have an impact on the consolidated financial statements. During 2016, the FASB issued updated guidance for the classification of certain cash receipts and cash payments on the statement of cash flows. The amendments in this update provide specific guidance for the classification of eight issues: debt prepayment or extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of an insurance claim; proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and applications of the predominance principle. The Company expects to adopt this guidance in the fiscal period required by this update and continues to evaluate if the adoption will have an impact on the consolidated financial statements. During 2016, the FASB issued updated guidance for tax treatment of intra-entity transfers of assets other than inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The FASB decided that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this update eliminate the exception for an intra-entity transfer of an asset other than inventory. The amendments in this update do not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer of an asset other than inventory. The Company expects to adopt this guidance in the fiscal period required by this update and continues to evaluate if the adoption will have an impact on the consolidated financial statements. |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and equipment, net consists of the following: (Dollar amounts in thousands) Useful life June 30, 2017 December 31, 2016 Buildings 30 $ 1,529 $ 1,559 Data processing equipment 3 - 5 106,482 105,052 Furniture and equipment 3 - 20 6,278 7,311 Leasehold improvements 5 -10 3,162 3,057 117,451 116,979 Less - accumulated depreciation and amortization (82,692 ) (79,431 ) Depreciable assets, net 34,759 37,548 Land 1,336 1,382 Property and equipment, net $ 36,095 $ 38,930 |
Goodwill and Other Intangible24
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill Allocated by Reportable Segments | The changes in the carrying amount of goodwill, allocated by reportable segments, were as follows (See Note 13): (Dollar amounts in thousands) Merchant Payment Business Total Balance at December 31, 2016 $ 138,121 $ 186,688 $ 46,177 $ 370,986 Adjustment to goodwill from prior year acquisition — 1,099 — 1,099 Foreign currency translation adjustments — (516 ) (365 ) (881 ) Balance at June 30, 2017 $ 138,121 $ 187,271 $ 45,812 $ 371,204 |
Carrying Amount of Other Intangible Assets | The carrying amount of other intangible assets at June 30, 2017 and December 31, 2016 was as follows: June 30, 2017 (Dollar amounts in thousands) Useful life in years Gross Accumulated Net carrying Customer relationships 8 - 14 $ 334,207 $ (154,632 ) $ 179,575 Trademark 10 - 15 39,950 (23,382 ) 16,568 Software packages 3 -10 185,892 (128,815 ) 57,077 Non-compete agreement 15 56,539 (25,443 ) 31,096 Other intangible assets, net $ 616,588 $ (332,272 ) $ 284,316 December 31, 2016 (Dollar amounts in thousands) Useful life in years Gross Accumulated Net carrying Customer relationships 8 - 14 $ 334,455 $ (141,829 ) $ 192,626 Trademark 10 - 15 39,950 (21,650 ) 18,300 Software packages 3 - 10 176,267 (121,055 ) 55,212 Non-compete agreement 15 56,539 (23,558 ) 32,981 Other intangible assets, net $ 607,211 $ (308,092 ) $ 299,119 |
Estimated Amortization Expenses | The estimated amortization expense of the balances outstanding at June 30, 2017 for the next five years is as follows: (Dollar amounts in thousands) Remaining 2017 $ 23,689 2018 43,436 2019 39,943 2020 35,115 2021 31,845 |
Debt and Short-Term Borrowings
Debt and Short-Term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Total Debt | Total debt at June 30, 2017 and December 31, 2016 follows: (Dollar amounts in thousands) June 30, 2017 December 31, 2016 Senior Secured Credit Facility (2018 Term A) due on April 17, 2018 paying interest at a variable interest rate (London InterBank Offered Rate (“LIBOR”) plus applicable margin(1)(3)) $ 27,894 $ 28,721 Senior Secured Credit Facility (2020 Term A) due on January 17, 2020 paying interest at a variable interest rate (LIBOR plus applicable margin(3)(4)) 206,657 212,661 Senior Secured Credit Facility (Term B) due on April 17, 2020 paying interest at a variable interest rate (LIBOR plus applicable margin(2)(3)) 377,218 378,074 Senior Secured Revolving Credit Facility(6) 48,000 28,000 Note Payable due on October 1, 2017 (3) 772 1,524 Note Payable due on July 31, 2017 (3) 372 357 Note Payable due on August 31, 2019(5) 740 890 Note Payable due on April 30, 2021 (3) 476 532 Total debt $ 662,129 $ 650,759 (1) Applicable margin of 2.25% at June 30, 2017 and December 31, 2016 . (2) Subject to a minimum rate (“LIBOR floor”) of 0.75% plus applicable margin of 2.50% at June 30, 2017 and December 31, 2016 . (3) Net of unaccreted discount and unamortized debt issue costs, as applicable. (4) Applicable margin of 2.50% at June 30, 2017 and December 31, 2016 . (5) Fixed interest rate of 7.50% . (6) Applicable margin of 2.50% at June 30, 2017 and December 31, 2016 . |
Summary of Interest Rate Swap Transaction | As of June 30, 2017 , the Company has the following interest rate swap agreement converting a portion of the interest rate exposure on the Company's Term B loan from variable to fixed: Effective date Maturity Date Notional Amount Variable Rate Fixed Rate January 2017 April 2020 $200 million 1-month LIBOR 1.9225% |
Carrying Amount of Derivative Instruments on Company's Balance Sheet | As of June 30, 2017 and December 31, 2016 , the carrying amount of the derivative on the Company’s balance sheet is as follows: (Dollar amounts in thousands) June 30, 2017 December 31, 2016 Other long-term liabilities $ 1,588 $ 1,964 |
Financial Instruments and Fai26
Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement for Liability at Fair Value on Recurring Basis | The following table summarizes the fair value measurement by level at June 30, 2017 and December 31, 2016 for the liability measured at fair value on a recurring basis: (Dollar amounts in thousands) Level 1 Level 2 Level 3 Total June 30, 2017 Financial liabilities: Interest rate swap $ — $ 1,588 $ — $ 1,588 December 31, 2016 Financial liabilities: Interest rate swap $ — $ 1,964 $ — $ 1,964 |
Carrying Value and Estimated Fair Values for Financial Instruments | The following table presents the carrying value, as applicable, and estimated fair values for financial instruments at June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (Dollar amounts in thousands) Carrying Fair Carrying Fair Financial liabilities: Interest rate swap $ 1,588 $ 1,588 $ 1,964 $ 1,964 Senior Secured Term B Loan 377,218 382,080 378,074 383,491 2018 Term A Loan 27,894 28,168 28,721 29,268 2020 Term A Loan 206,657 208,232 212,661 213,872 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 six months period ended June 30, 2017 : (Dollar amounts in thousands) Foreign Currency Cash Flow Hedge Total Balance - December 31, 2016 $ (10,427 ) $ (1,964 ) $ (12,391 ) Other comprehensive loss before reclassifications (2,601 ) (538 ) (3,139 ) Effective portion reclassified to Net Income — 914 914 Balance - June 30, 2017, net of tax $ (13,028 ) $ (1,588 ) $ (14,616 ) |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the stock options activity for the six months ended June 30, 2017 : Shares Weighted-Average Outstanding December 31, 2016 20,000 $ 6.04 Outstanding June 30, 2017 20,000 $ 6.04 Exercisable at June 30, 2017 — $ — |
Nonvested Restricted Shares and RSUs Activity | The following table summarizes nonvested restricted shares and RSUs activity for the six months ended June 30, 2017 : Nonvested restricted shares and RSUs Shares Weighted-average Nonvested at December 31, 2016 1,212,364 $ 14.88 Forfeited 106,298 16.30 Vested 310,005 15.26 Granted 683,393 17.83 Nonvested at June 30, 2017 1,479,454 $ 16.06 |
Income Tax (Tables)
Income Tax (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense for the three and six months ended June 30, 2017 and 2016 , respectively, consisted of the following: Three months ended Six months ended (Dollar amounts in thousands) 2017 2016 2017 2016 Current tax provision $ 4,380 $ 3,534 $ 7,887 $ 6,214 Deferred tax benefit (312 ) (733 ) (1,799 ) (1,537 ) Income tax expense $ 4,068 $ 2,801 $ 6,088 $ 4,677 |
Segregation of Income Tax Expense Based on Location of Operations | The following table presents the components of income tax expense for the three and six months ended June 30, 2017 and 2016 , respectively, and its segregation based on location of operations: Three months ended June 30, Six months ended June 30, (Dollar amounts in thousands) 2017 2016 2017 2016 Current tax provision Puerto Rico $ 3,054 $ 1,795 $ 4,860 $ 3,561 United States 386 72 200 236 Foreign countries 940 1,667 2,827 2,417 Total current tax provision $ 4,380 $ 3,534 $ 7,887 $ 6,214 Deferred tax (benefit) provision Puerto Rico $ (463 ) $ (431 ) $ (1,052 ) $ (910 ) United States 20 (26 ) (83 ) (51 ) Foreign countries 131 (276 ) (664 ) (576 ) Total deferred tax benefit $ (312 ) $ (733 ) $ (1,799 ) $ (1,537 ) |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, Six months ended June 30, (Dollar amounts in thousands, except per share information) 2017 2016 2017 2016 Net income attributable to EVERTEC, Inc. $ 20,089 $ 20,235 $ 43,118 $ 39,383 Less: non-forfeitable dividends on restricted stock 3 3 3 15 Net income available to EVERTEC, Inc.’s common shareholders $ 20,086 $ 20,232 $ 43,115 $ 39,368 Weighted average common shares outstanding 72,508,852 74,706,042 72,572,157 74,826,946 Weighted average potential dilutive common shares (1) 565,739 313,443 515,230 131,180 Weighted average common shares outstanding - assuming dilution 73,074,591 75,019,485 73,087,387 74,958,126 Net income per common share - basic $ 0.28 $ 0.27 $ 0.59 $ 0.53 Net income per common share - diluted $ 0.27 $ 0.27 $ 0.59 $ 0.53 (1) Potential common shares consist of common stock issuable under the assumed exercise of stock options and restricted stock awards using the treasury stock method. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | The following table presents the Company’s transactions with related parties for the three and six months ended June 30, 2017 and 2016 : Three months ended June 30, Six months ended June 30, (Dollar amounts in thousands) 2017 2016 2017 2016 Total revenues (1)(2) $ 44,942 $ 43,611 $ 89,955 $ 86,764 Cost of revenues $ 349 $ 539 $ 835 $ 798 Rent and other fees $ 1,812 $ 2,029 $ 3,848 $ 3,963 Interest earned from affiliate Interest income $ 39 $ 55 $ 78 $ 114 (1) Total revenues from Popular as a percentage of revenues were 43% , 44% , 43% and 44% for the periods presented above, respectively. (2) Includes revenues generated from investee accounted for under the equity method of $0.6 million and $1.1 million , and $0.5 million and $1.0 million for the three and six months ended June 30, 2017 , and 2016 , respectively. |
Summary of Balances of Transactions with Related Parties | At June 30, 2017 and December 31, 2016 , EVERTEC had the following balances arising from transactions with related parties: (Dollar amounts in thousands) June 30, 2017 December 31, 2016 Cash and restricted cash deposits in affiliated bank $ 24,661 $ 15,918 Other due/to from affiliate Accounts receivable $ 20,255 $ 21,461 Prepaid expenses and other assets $ 1,962 $ 699 Other long-term assets $ 416 $ 554 Accounts payable $ 5,846 $ 6,300 Unearned income $ 18,062 $ 14,383 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Information about Operations by Business Segments | The following tables set forth information about the Company’s operations by its three business segments for the periods indicated: (Dollar amounts in thousands) Merchant Payment Business Other Total Three months ended June 30, 2017 Revenues $ 23,506 $ 39,476 $ 49,312 $ (8,783 ) (1) $ 103,511 Income from operations 7,192 16,566 13,521 (7,285 ) (2) 29,994 Three months ended June 30, 2016 Revenues $ 23,277 $ 36,289 $ 46,238 $ (8,132 ) (1) $ 97,672 Income from operations 8,786 14,276 15,126 (9,996 ) (2) 28,192 (Dollar amounts in thousands) Merchant Payment Business Other Total Six months ended June 30, 2017 Revenues $ 45,991 $ 78,209 $ 97,991 $ (17,400 ) (1) $ 204,791 Income from operations 14,100 33,799 27,172 (14,485 ) (2) 60,586 Six months ended June 30, 2016 Revenues $ 46,167 $ 70,828 $ 91,852 $ (15,696 ) (1) $ 193,151 Income from operations 17,212 26,690 28,369 (17,513 ) (2) 54,758 (1) Represents the elimination of intersegment revenues for services provided by the Payment Processing segment to the Merchant Acquiring segment, and other miscellaneous intersegment revenues. (2) Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses. |
Reconciliation of Income from Operations to Consolidated Net Income | The reconciliation of income from operations to consolidated net income for the three and six months ended June 30, 2017 and 2016 is as follows: Three months ended Six months ended (Dollar amounts in thousands) 2017 2016 2017 2016 Segment income from operations Merchant Acquiring $ 7,192 $ 8,786 $ 14,100 $ 17,212 Payment Processing 16,566 14,276 33,799 26,690 Business Solutions 13,521 15,126 27,172 28,369 Total segment income from operations 37,279 38,188 75,071 72,271 Merger related depreciation and amortization and other unallocated expenses (1) (7,285 ) (9,996 ) (14,485 ) (17,513 ) Income from operations 29,994 28,192 60,586 54,758 Interest expense, net (7,190 ) (6,046 ) (14,041 ) (11,837 ) Earnings (losses) of equity method investment 115 29 258 (101 ) Other income 1,363 860 2,637 1,258 Income tax expense (4,068 ) (2,801 ) (6,088 ) (4,677 ) Net income $ 20,214 $ 20,234 $ 43,352 $ 39,401 (1) Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses. |
The Company and Basis of Pres33
The Company and Basis of Presentation (Detail) - Subsequent Events | Jul. 03, 2017country |
Business Acquisition [Line Items] | |
Number of countries where the Company provides a broad range of merchant acquiring, payment processing and business process management services (in country) | 27 |
EFT Group S.A. (PayGroup) | |
Business Acquisition [Line Items] | |
Percentage of share capital acquired | 100.00% |
Property and Equipment, net (De
Property and Equipment, net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Property and Equipment, net | |||||
Property and equipment, gross | $ 117,451 | $ 117,451 | $ 116,979 | ||
Less - accumulated depreciation and amortization | (82,692) | (82,692) | (79,431) | ||
Depreciable assets, net | 34,759 | 34,759 | 37,548 | ||
Land | 1,336 | 1,336 | 1,382 | ||
Property and equipment, net | 36,095 | 36,095 | 38,930 | ||
Depreciation and amortization expense related to property and equipment | 3,700 | $ 3,400 | $ 7,400 | $ 6,800 | |
Buildings | |||||
Property and Equipment, net | |||||
Useful life in years | 30 years | ||||
Property and equipment, gross | 1,529 | $ 1,529 | 1,559 | ||
Data processing equipment | |||||
Property and Equipment, net | |||||
Property and equipment, gross | 106,482 | $ 106,482 | 105,052 | ||
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 | 6,278 | $ 6,278 | 7,311 | ||
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 | $ 3,162 | $ 3,162 | $ 3,057 | ||
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 Intangible35
Goodwill and Other Intangible Assets - Goodwill by Segments (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Changes in the Carrying Amount of Goodwill | |
Beginning Balance | $ 370,986 |
Adjustment to goodwill from prior year acquisition | 1,099 |
Foreign currency translation adjustments | (881) |
Ending Balance | 371,204 |
Merchant Acquiring, net | |
Changes in the Carrying Amount of Goodwill | |
Beginning Balance | 138,121 |
Adjustment to goodwill from prior year acquisition | 0 |
Foreign currency translation adjustments | 0 |
Ending Balance | 138,121 |
Payment Processing | |
Changes in the Carrying Amount of Goodwill | |
Beginning Balance | 186,688 |
Adjustment to goodwill from prior year acquisition | 1,099 |
Foreign currency translation adjustments | (516) |
Ending Balance | 187,271 |
Business Solutions | |
Changes in the Carrying Amount of Goodwill | |
Beginning Balance | 46,177 |
Adjustment to goodwill from prior year acquisition | 0 |
Foreign currency translation adjustments | (365) |
Ending Balance | $ 45,812 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2015 | |
Goodwill | |||||
Impairment of goodwill | $ 0 | $ 0 | |||
Amortization expense for intangible assets | $ 12,200,000 | $ 11,400,000 | $ 24,200,000 | $ 22,700,000 | |
Minimum | |||||
Goodwill | |||||
Percentage of fair value in excess of carrying amount for each reporting unit | 120.90% | ||||
Maximum | |||||
Goodwill | |||||
Percentage of fair value in excess of carrying amount for each reporting unit | 145.50% |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets - Other Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | $ 616,588 | $ 607,211 |
Accumulated amortization | (332,272) | (308,092) |
Net carrying amount | 284,316 | 299,119 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 334,207 | 334,455 |
Accumulated amortization | (154,632) | (141,829) |
Net carrying amount | $ 179,575 | $ 192,626 |
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 |
Trademark | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | $ 39,950 | $ 39,950 |
Accumulated amortization | (23,382) | (21,650) |
Net carrying amount | $ 16,568 | $ 18,300 |
Trademark | Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life in years | 10 years | 10 years |
Trademark | 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 | $ 185,892 | $ 176,267 |
Accumulated amortization | (128,815) | (121,055) |
Net carrying amount | $ 57,077 | $ 55,212 |
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 | (25,443) | (23,558) |
Net carrying amount | $ 31,096 | $ 32,981 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets - Estimated Amortization Expenses (Detail) $ in Thousands | Jun. 30, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining 2,017 | $ 23,689 |
2,018 | 43,436 |
2,019 | 39,943 |
2,020 | 35,115 |
2,021 | $ 31,845 |
Debt and Short-Term Borrowing39
Debt and Short-Term Borrowings - Total Debt (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Note payable | $ 2,400 | $ 3,400 |
Total debt | 662,129 | 650,759 |
Note Payable due on October 1, 2017 | ||
Debt Instrument [Line Items] | ||
Note payable | 772 | 1,524 |
Note Payable due on July 31, 2017 | ||
Debt Instrument [Line Items] | ||
Note payable | 372 | 357 |
Note Payable due on August 31, 2019 | Notes Payable | ||
Debt Instrument [Line Items] | ||
Total debt | $ 740 | 890 |
Fixed interest rate | 7.50% | |
Note Payable due on April 30, 2021 | ||
Debt Instrument [Line Items] | ||
Note payable | $ 476 | 532 |
Term A due on April 17, 2018 | Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility | $ 27,894 | 28,721 |
Term A due on April 17, 2018 | Credit Facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Margin interest rate | 2.25% | |
Term A due January 17, 2020 | Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility | $ 206,657 | 212,661 |
Term A due January 17, 2020 | Credit Facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Margin interest rate | 2.50% | |
Term B due on April 17, 2020 | Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility | $ 377,218 | 378,074 |
Term B due on April 17, 2020 | Credit Facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Margin interest rate | 2.50% | |
Minimum variable rate | 0.75% | |
Senior Secured Revolving Credit Facility | Credit Facility | ||
Debt Instrument [Line Items] | ||
Note payable | $ 48,000 | $ 28,000 |
Senior Secured Revolving Credit Facility | Credit Facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Margin interest rate | 2.50% |
Debt and Short-Term Borrowing40
Debt and Short-Term Borrowings - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Oct. 31, 2016 | May 31, 2016 | Jun. 30, 2015 | Dec. 31, 2014 | Apr. 17, 2013 | |
Debt Instrument [Line Items] | ||||||||
Non interest bearing financing agreement | $ 700,000 | $ 1,100,000 | $ 4,600,000 | |||||
Note payable | $ 2,400,000 | $ 2,400,000 | $ 3,400,000 | |||||
Losses reclassified from accumulated other comprehensive loss into income | 500,000 | 900,000 | ||||||
Losses expected to be reclassified from accumulated other comprehensive loss into income in the next 12 months | 1,700,000 | 1,700,000 | ||||||
Notes Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Non interest bearing financing agreement | $ 1,100,000 | |||||||
Term A due on April 17, 2018 | Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum amount under credit facilities | 250,000,000 | $ 300,000,000 | ||||||
Secured credit facilities | 28,400,000 | $ 28,400,000 | 29,500,000 | |||||
Term A due on April 17, 2018 | Credit Facility | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin interest rate | 2.25% | |||||||
Term A due on April 17, 2018 | Credit Facility | Maturity not extended | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum amount under credit facilities | 30,000,000 | |||||||
2013 Credit Agreement, Term B Loan | Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum amount under credit facilities | 400,000,000 | |||||||
2013 Credit Agreement, Revolving Facility | Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum amount under credit facilities | $ 100,000,000 | |||||||
Term A due January 17, 2020 | Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Secured credit facilities | 209,500,000 | $ 209,500,000 | 216,000,000 | |||||
Term A due January 17, 2020 | Credit Facility | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin interest rate | 2.50% | |||||||
Term A due January 17, 2020 | Credit Facility | Maturity extended | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum amount under credit facilities | 219,000,000 | |||||||
Term B due on April 17, 2020 | Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Secured credit facilities | 384,000,000 | $ 384,000,000 | 386,000,000 | |||||
Term B due on April 17, 2020 | Credit Facility | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin interest rate | 2.50% | |||||||
Senior Secured Revolving Credit Facility | Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum amount under credit facilities | 100,000,000 | |||||||
Additional borrowing capacity available under the Revolving Facility | 52,000,000 | $ 52,000,000 | ||||||
Note payable | $ 48,000,000 | $ 48,000,000 | 28,000,000 | |||||
Senior Secured Revolving Credit Facility | Credit Facility | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin interest rate | 2.50% | |||||||
Senior Secured Revolving Credit Facility | Credit Facility | Maturity extended | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum amount under credit facilities | 65,000,000 | |||||||
Senior Secured Revolving Credit Facility | Credit Facility | Maturity not extended | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum amount under credit facilities | $ 35,000,000 |
Debt and Short-Term Borrowing41
Debt and Short-Term Borrowings - Summary of Interest Rate Swap Transaction (Detail) - Interest Rate Swap | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Derivative [Line Items] | |
Notional Amount | $ 200,000,000 |
1-month LIBOR | |
Derivative [Line Items] | |
Fixed Rate | 1.9225% |
Debt and Short-Term Borrowing42
Debt and Short-Term Borrowings - Carrying Amount of Derivative Instruments on Company's Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Other long-term liabilities | $ 1,588 | $ 1,964 |
Financial Instruments and Fai43
Financial Instruments and Fair Value Measurements - Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financial liabilities: | ||
Interest rate swap | $ 1,588 | $ 1,964 |
Recurring | Level 1 | ||
Financial liabilities: | ||
Interest rate swap | 0 | 0 |
Recurring | Level 2 | ||
Financial liabilities: | ||
Interest rate swap | 1,588 | 1,964 |
Recurring | Level 3 | ||
Financial liabilities: | ||
Interest rate swap | $ 0 | $ 0 |
Financial Instruments and Fai44
Financial Instruments and Fair Value Measurements - Carrying Value and Estimated Fair Values (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||
Interest rate swap | $ 1,588 | $ 1,964 |
Carrying Amount | ||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||
Interest rate swap | 1,588 | 1,964 |
Carrying Amount | Credit Facility | Senior Secured Term B Loan | ||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||
Senior secured term loan | 377,218 | 378,074 |
Carrying Amount | Credit Facility | 2018 Term A Loan | ||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||
Senior secured term loan | 27,894 | 28,721 |
Carrying Amount | Credit Facility | 2020 Term A Loan | ||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||
Senior secured term loan | 206,657 | 212,661 |
Fair Value | ||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||
Interest rate swap | 1,588 | 1,964 |
Fair Value | Credit Facility | Senior Secured Term B Loan | ||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||
Senior secured term loan | 382,080 | 383,491 |
Fair Value | Credit Facility | 2018 Term A Loan | ||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||
Senior secured term loan | 28,168 | 29,268 |
Fair Value | Credit Facility | 2020 Term A Loan | ||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||
Senior secured term loan | $ 208,232 | $ 213,872 |
Financial Instruments and Fai45
Financial Instruments and Fair Value Measurements - Additional Information (Detail) - Credit Facility - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Term A due on April 17, 2018 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Secured credit facilities | $ 28.4 | $ 29.5 |
Term A due January 17, 2020 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Secured credit facilities | 209.5 | 216 |
Senior Secured Term B Loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Secured credit facilities | $ 384 | $ 386 |
Equity (Detail)
Equity (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Changes in Accumulated Other Comprehensive Income (Loss) | |
Beginning Balance | $ 108,175 |
Other comprehensive loss before reclassifications | (3,139) |
Effective portion reclassified to Net Income | 914 |
Ending Balance | 134,015 |
Foreign Currency Translation Adjustments | |
Changes in Accumulated Other Comprehensive Income (Loss) | |
Beginning Balance | (10,427) |
Other comprehensive loss before reclassifications | (2,601) |
Effective portion reclassified to Net Income | 0 |
Ending Balance | (13,028) |
Cash Flow Hedge | |
Changes in Accumulated Other Comprehensive Income (Loss) | |
Beginning Balance | (1,964) |
Other comprehensive loss before reclassifications | (538) |
Effective portion reclassified to Net Income | 914 |
Ending Balance | (1,588) |
Total | |
Changes in Accumulated Other Comprehensive Income (Loss) | |
Beginning Balance | (12,391) |
Ending Balance | $ (14,616) |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | $ 2 | $ 1.8 | $ 4.2 | $ 3.4 |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum unrecognized cost for stock options | $ 16.8 | $ 16.8 | ||
Unrecognized compensation cost, weighted average period of recognition | 2 years 18 days | |||
Time Based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Awards with Performance Conditions | 2015 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Awards with Performance Conditions | 2016 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance measurement period | 1 year | |||
Requisite service period | 2 years | |||
Awards with Performance Conditions | 2017 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Performance measurement period | 1 year | |||
Requisite service period | 2 years | |||
Performance adjustment percent | 25.00% |
Share-based Compensation - Summ
Share-based Compensation - Summary of Stock Option Activity (Detail) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Shares Outstanding (in shares) | 20,000 | 20,000 |
Shares Exercisable (in shares) | 0 | |
Weighted-Average exercise price, Outstanding (usd per share) | $ 6.04 | $ 6.04 |
Weighted-Average exercise price, Exercisable (usd per share) | $ 0 |
Share-based Compensation - Nonv
Share-based Compensation - Nonvested Restricted Shares and RSUs Activity (Detail) - Restricted Shares and RSUs | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Shares | |
Beginning balance (in shares) | shares | 1,212,364 |
Forfeited (in shares) | shares | 106,298 |
Vested (in shares) | shares | 310,005 |
Granted (in shares) | shares | 683,393 |
Ending Balance (in shares) | shares | 1,479,454 |
Weighted-average grant date fair value | |
Beginning balance (usd per share) | $ / shares | $ 14.88 |
Forfeited (usd per share) | $ / shares | 16.30 |
Vested (usd per share) | $ / shares | 15.26 |
Granted (usd per share) | $ / shares | 17.83 |
Ending balance (usd per share) | $ / shares | $ 16.06 |
Income Tax - Components of Inco
Income Tax - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Current tax provision | $ 4,380 | $ 3,534 | $ 7,887 | $ 6,214 |
Deferred tax benefit | (312) | (733) | (1,799) | (1,537) |
Income tax expense | $ 4,068 | $ 2,801 | $ 6,088 | $ 4,677 |
Income Tax - Tax Expense Based
Income Tax - Tax Expense Based on Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Current tax provision | ||||
Puerto Rico | $ 3,054 | $ 1,795 | $ 4,860 | $ 3,561 |
United States | 386 | 72 | 200 | 236 |
Foreign countries | 940 | 1,667 | 2,827 | 2,417 |
Total current tax provision | 4,380 | 3,534 | 7,887 | 6,214 |
Deferred tax (benefit) provision | ||||
Puerto Rico | (463) | (431) | (1,052) | (910) |
United States | 20 | (26) | (83) | (51) |
Foreign countries | 131 | (276) | (664) | (576) |
Total deferred tax benefit | $ (312) | $ (733) | $ (1,799) | $ (1,537) |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - USD ($) $ in Millions | Jun. 27, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | |||
Unremitted earnings from foreign subsidiaries | $ 30 | ||
One-time repatriation of cash from a foreign subsidiary | $ 8.9 | ||
Foreign income tax rate on distribution | 15.00% | ||
Foreign income tax on distribution | $ 1.3 | ||
Gross deferred tax asset | 5.5 | $ 5 | |
Gross deferred tax liability | 19 | $ 19.2 | |
Decrease in liability for uncertain tax position relating to net operating loss created by transaction costs | $ 4.5 | ||
Percentage of net operating loss deduction with regular tax | 80.00% | ||
Percentage of net operating loss deduction with alternative minimum tax | 70.00% | ||
NOL carryforwards available to offset future taxable income | $ 11.8 |
Net Income Per Common Share - R
Net Income Per Common Share - Reconciliation of Income Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to EVERTEC, Inc. | $ 20,089 | $ 20,235 | $ 43,118 | $ 39,383 |
Less: non-forfeitable dividends on restricted stock | 3 | 3 | 3 | 15 |
Net income available to EVERTEC, Inc.’s common shareholders | $ 20,086 | $ 20,232 | $ 43,115 | $ 39,368 |
Weighted average common shares outstanding (in shares) | 72,508,852 | 74,706,042 | 72,572,157 | 74,826,946 |
Weighted average potential dilutive common shares (in shares) | 565,739 | 313,443 | 515,230 | 131,180 |
Weighted average common shares outstanding - assuming dilution (in shares) | 73,074,591 | 75,019,485 | 73,087,387 | 74,958,126 |
Net income per common share - basic (usd per share) | $ 0.28 | $ 0.27 | $ 0.59 | $ 0.53 |
Net income per common share - diluted (usd per share) | $ 0.27 | $ 0.27 | $ 0.59 | $ 0.53 |
Net Income Per Common Share - A
Net Income Per Common Share - Additional Information (Detail) - $ / shares | Apr. 27, 2017 | Feb. 17, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Earnings Per Share [Abstract] | ||||||
Cash dividend declared per common share (usd per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rent expense of office facilities and real estate | $ 1.8 | $ 4 | $ 2 | $ 4 |
Rent expense for telecommunications and other equipment | $ 1.6 | $ 3 | $ 1.5 | $ 3 |
Related Party Transactions - Tr
Related Party Transactions - Transactions with Related Parties (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Related Party Transactions [Abstract] | ||||
Total revenues | $ 44,942 | $ 43,611 | $ 89,955 | $ 86,764 |
Cost of revenues | 349 | 539 | 835 | 798 |
Rent and other fees | 1,812 | 2,029 | 3,848 | 3,963 |
Interest earned from affiliate | ||||
Interest income | 39 | 55 | 78 | 114 |
Transactions with Third Party | ||||
Revenues generated from investee accounted for under equity method | $ 600 | $ 1,100 | $ 500 | $ 1,000 |
Popular | Customer Concentration Risk | Total Revenue | ||||
Transactions with Third Party | ||||
Total percentage of revenues from Popular | 43.00% | 44.00% | 43.00% | 44.00% |
Related Party Transactions - Ba
Related Party Transactions - Balances of Transactions (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Related Party Transactions [Abstract] | ||
Cash and restricted cash deposits in affiliated bank | $ 24,661 | $ 15,918 |
Other due/to from affiliate | ||
Accounts receivable | 20,255 | 21,461 |
Prepaid expenses and other assets | 1,962 | 699 |
Other long-term assets | 416 | 554 |
Accounts payable | 5,846 | 6,300 |
Unearned income | $ 18,062 | $ 14,383 |
Segment Information - Operation
Segment Information - Operations by Segments (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | |
Segment Reporting [Abstract] | ||||
Number of operating business segments (in segment) | segment | 3 | |||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 103,511 | $ 97,672 | $ 204,791 | $ 193,151 |
Income from operations | 29,994 | 28,192 | 60,586 | 54,758 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 37,279 | 38,188 | 75,071 | 72,271 |
Operating Segments | Merchant Acquiring, net | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 23,506 | 23,277 | 45,991 | 46,167 |
Income from operations | 7,192 | 8,786 | 14,100 | 17,212 |
Operating Segments | Payment Processing | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 39,476 | 36,289 | 78,209 | 70,828 |
Income from operations | 16,566 | 14,276 | 33,799 | 26,690 |
Operating Segments | Business Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 49,312 | 46,238 | 97,991 | 91,852 |
Income from operations | 13,521 | 15,126 | 27,172 | 28,369 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (8,783) | (8,132) | (17,400) | (15,696) |
Income from operations | $ (7,285) | $ (9,996) | $ (14,485) | $ (17,513) |
Segment Information - Income fr
Segment Information - Income from Segments to Consolidated Net Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment income from operations | ||||
Income from operations | $ 29,994 | $ 28,192 | $ 60,586 | $ 54,758 |
Interest expense, net | (7,190) | (6,046) | (14,041) | (11,837) |
Earnings (losses) of equity method investment | 115 | 29 | 258 | (101) |
Other income | 1,363 | 860 | 2,637 | 1,258 |
Income tax expense | (4,068) | (2,801) | (6,088) | (4,677) |
Net income | 20,214 | 20,234 | 43,352 | 39,401 |
Operating Segments | ||||
Segment income from operations | ||||
Income from operations | 37,279 | 38,188 | 75,071 | 72,271 |
Operating Segments | Merchant Acquiring, net | ||||
Segment income from operations | ||||
Income from operations | 7,192 | 8,786 | 14,100 | 17,212 |
Operating Segments | Payment Processing | ||||
Segment income from operations | ||||
Income from operations | 16,566 | 14,276 | 33,799 | 26,690 |
Operating Segments | Business Solutions | ||||
Segment income from operations | ||||
Income from operations | 13,521 | 15,126 | 27,172 | 28,369 |
Other | ||||
Segment income from operations | ||||
Income from operations | $ (7,285) | $ (9,996) | $ (14,485) | $ (17,513) |
Subsequent Events (Detail)
Subsequent Events (Detail) - USD ($) $ / shares in Units, $ in Millions | Jul. 25, 2017 | Jul. 03, 2017 | Apr. 27, 2017 | Feb. 17, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Subsequent Event [Line Items] | ||||||||
Cash dividend declared per common share (usd per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 | ||
Subsequent Events | ||||||||
Subsequent Event [Line Items] | ||||||||
Cash dividend declared per common share (usd per share) | $ 0.10 | |||||||
Subsequent Events | PayGroup | ||||||||
Subsequent Event [Line Items] | ||||||||
Percentage of share capital acquired | 100.00% | |||||||
Consideration given | $ 46 | |||||||
Cash payments | 38.5 | |||||||
Debt and liabilities assumed | $ 7.5 |