2015 Q4 Form 10-K Financial Statement

#000119312517056193 Filed on February 24, 2017

View on sec.gov

Income Statement

Concept 2015 Q4 2014 Q4 2014
Revenue $96.20M $94.10M $361.8M
YoY Change 2.23% 0.0% 0.94%
Cost Of Revenue $42.60M $41.80M $1.946M
YoY Change 1.91% -0.24% -76.91%
Gross Profit $53.50M $52.40M $359.8M
YoY Change 2.1% 0.38% 2.82%
Gross Profit Margin 55.61% 55.69% 99.46%
Selling, General & Admin $10.20M $15.60M $41.28M
YoY Change -34.62% 87.95% 6.35%
% of Gross Profit 19.07% 29.77% 11.47%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $15.20M $16.50M $15.50M
YoY Change -7.88% -4.62% -4.32%
% of Gross Profit 28.41% 31.49% 4.31%
Operating Expenses $25.40M $32.10M $41.28M
YoY Change -20.87% 25.39% 6.35%
Operating Profit $28.10M $20.30M $96.99M
YoY Change 38.42% -23.68% 12.45%
Interest Expense -$5.800M -$5.700M $25.77M
YoY Change 1.75% -8.06% -31.12%
% of Operating Profit -20.64% -28.08% 26.57%
Other Income/Expense, Net $900.0K $200.0K -$21.93M
YoY Change 350.0% -84.62% -80.41%
Pretax Income $23.20M $14.80M $75.06M
YoY Change 56.76% -31.8% -392.26%
Income Tax -$9.400M $3.700M $8.901M
% Of Pretax Income -40.52% 25.0% 11.86%
Net Earnings $32.60M $11.10M $66.16M
YoY Change 193.69% -44.5% -343.97%
Net Earnings / Revenue 33.89% 11.8% 18.29%
Basic Earnings Per Share $0.84
Diluted Earnings Per Share $428.9K $142.3K $0.84
COMMON SHARES
Basic Shares Outstanding 76.11M shares 77.97M shares 78.34M shares
Diluted Shares Outstanding 78.89M shares

Balance Sheet

Concept 2015 Q4 2014 Q4 2014
SHORT-TERM ASSETS
Cash & Short-Term Investments $28.70M $32.10M $32.10M
YoY Change -10.59% 42.67% 42.67%
Cash & Equivalents $28.75M $32.11M $32.10M
Short-Term Investments
Other Short-Term Assets $32.30M $26.40M $31.40M
YoY Change 22.35% -4.0% -18.86%
Inventory
Prepaid Expenses
Receivables $73.72M $70.68M $65.60M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $134.7M $129.1M $129.1M
YoY Change 4.32% 9.1% 9.04%
LONG-TERM ASSETS
Property, Plant & Equipment $34.13M $29.54M $29.50M
YoY Change 15.55% -11.15% -11.14%
Goodwill $368.1M $368.8M
YoY Change -0.19% -1.15%
Intangibles
YoY Change
Long-Term Investments $12.26M $11.76M $11.80M
YoY Change 4.32% 10.5% 11.32%
Other Assets $2.347M $11.42M $11.40M
YoY Change -79.44% -37.13% -37.36%
Total Long-Term Assets $728.9M $756.2M $756.2M
YoY Change -3.6% -5.82% -5.82%
TOTAL ASSETS
Total Short-Term Assets $134.7M $129.1M $129.1M
Total Long-Term Assets $728.9M $756.2M $756.2M
Total Assets $863.7M $885.3M $885.3M
YoY Change -2.45% -3.91% -3.91%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $21.22M $17.75M $17.80M
YoY Change 19.51% -13.77% -13.59%
Accrued Expenses $37.31M $26.05M $26.10M
YoY Change 43.21% -1.95% -1.88%
Deferred Revenue
YoY Change
Short-Term Debt $17.00M $23.00M $23.00M
YoY Change -26.09% -55.08% -55.08%
Long-Term Debt Due $22.75M $19.00M $19.00M
YoY Change 19.74% 0.0% 0.0%
Total Short-Term Liabilities $102.5M $91.06M $91.10M
YoY Change 12.57% -26.42% -26.41%
LONG-TERM LIABILITIES
Long-Term Debt $619.3M $647.6M $647.6M
YoY Change -4.37% -2.72% -2.72%
Other Long-Term Liabilities $12.09M $20.46M $28.80M
YoY Change -40.92% 6044.44% 9500.0%
Total Long-Term Liabilities $631.4M $668.0M $676.4M
YoY Change -5.49% 0.3% 1.56%
TOTAL LIABILITIES
Total Short-Term Liabilities $102.5M $91.06M $91.10M
Total Long-Term Liabilities $631.4M $668.0M $676.4M
Total Liabilities $765.4M $790.5M $790.5M
YoY Change -3.17% -2.41% -2.41%
SHAREHOLDERS EQUITY
Retained Earnings $95.33M $40.84M
YoY Change 133.4% 38.91%
Common Stock $750.0K $779.0K
YoY Change -3.72% -0.51%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $98.21M $94.84M $94.80M
YoY Change
Total Liabilities & Shareholders Equity $863.7M $885.3M $885.3M
YoY Change -2.45% -3.91% -3.91%

Cashflow Statement

Concept 2015 Q4 2014 Q4 2014
OPERATING ACTIVITIES
Net Income $32.60M $11.10M $66.16M
YoY Change 193.69% -44.5% -343.97%
Depreciation, Depletion And Amortization $15.20M $16.50M $15.50M
YoY Change -7.88% -4.62% -4.32%
Cash From Operating Activities $38.10M $36.00M $139.8M
YoY Change 5.83% -26.83% 123.32%
INVESTING ACTIVITIES
Capital Expenditures -$17.90M -$9.000M $10.90M
YoY Change 98.89% -21.74% -6.79%
Acquisitions
YoY Change
Other Investing Activities $1.700M $400.0K -$200.0K
YoY Change 325.0% -200.0% -60.0%
Cash From Investing Activities -$16.20M -$8.600M -$25.80M
YoY Change 88.37% -27.12% -10.73%
FINANCING ACTIVITIES
Cash Dividend Paid $31.36M
YoY Change 91.33%
Common Stock Issuance & Retirement, Net $26.20M $25.65M
YoY Change 4.8% -65.78%
Debt Paid & Issued, Net $19.00M
YoY Change -97.48%
Cash From Financing Activities -33.60M -24.30M -104.1M
YoY Change 38.27% -43.36% 180.59%
NET CHANGE
Cash From Operating Activities 38.10M 36.00M 139.8M
Cash From Investing Activities -16.20M -8.600M -25.80M
Cash From Financing Activities -33.60M -24.30M -104.1M
Net Change In Cash -11.70M 3.100M 9.900M
YoY Change -477.42% -156.36% -391.18%
FREE CASH FLOW
Cash From Operating Activities $38.10M $36.00M $139.8M
Capital Expenditures -$17.90M -$9.000M $10.90M
Free Cash Flow $56.00M $45.00M $128.9M
YoY Change 24.44% -25.86% 153.21%

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CY2015 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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147000
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3638000
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8000
CY2015 us-gaap Proceeds From Sale Of Property Plant And Equipment
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CY2015 us-gaap Share Based Compensation
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15947000
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InterestCostsCapitalized
300000
CY2015 us-gaap Restricted Stock Award Forfeitures Dividends
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CY2015 evtc Other Non Operating Income Expense Other
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2306000
CY2015 evtc Current Territory Tax Expense Benefit
CurrentTerritoryTaxExpenseBenefit
-3500000
CY2015 evtc Merchant Acquiring Net
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85411000
CY2015 evtc Payment Processing
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108320000
CY2015 evtc Income Tax Reconciliation Unrecognized Tax Benefit
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-11626000
CY2015 evtc Income Tax Reconciliation Effect Of Income Subject To Tax Exemption Grant
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23375000
CY2015 evtc Sales Rebates Received
SalesRebatesReceived
400000
CY2015 evtc Rent And Other Fees Paid To Related Party
RentAndOtherFeesPaidToRelatedParty
7880000
CY2015 evtc Rent Expense For Office Facilities And Real Estate
RentExpenseForOfficeFacilitiesAndRealEstate
8100000
CY2015 evtc Business Solutions Revenue From Affiliates
BusinessSolutionsRevenueFromAffiliates
138929000
CY2015 evtc Deferred Territory Income Tax Expense Benefit
DeferredTerritoryIncomeTaxExpenseBenefit
-2169000
CY2015 evtc Gain On Refurbished Pos Machines
GainOnRefurbishedPosMachines
200000
CY2015 evtc Income Tax Reconciliation Effect Of Disallowed Net Operating Losses Foreign Operations
IncomeTaxReconciliationEffectOfDisallowedNetOperatingLossesForeignOperations
-103000
CY2015 evtc Income Tax Reconciliation Change In Estimate
IncomeTaxReconciliationChangeInEstimate
-201000
CY2015 evtc Income Tax Reconciliation Tax Exempt Interest Income
IncomeTaxReconciliationTaxExemptInterestIncome
284000
CY2015 evtc Business Solutions
BusinessSolutions
179797000
CY2015 evtc Payment Processing Revenue From Affiliates
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30504000
CY2015 evtc Provision For Doubtful Accounts And Sundry Losses
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2130000
CY2015 evtc Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued Period Increase Decrease
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccruedPeriodIncreaseDecrease
2000000
CY2015 evtc Rent Expense For Telecommunications And Other Equipment
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5400000
CY2015 evtc Stock Issued And Granted During Period Value Restricted Stock Award Net Of Cashless
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306000
CY2015 evtc Cost Of Revenues Excluding Depreciation And Amortization
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CY2015 evtc Income Tax Reconciliation Differences In Tax Rates Due To Multiple Jurisdictions
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37000
CY2016 dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
FY
CY2016 dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2016
CY2016 dei Document Type
DocumentType
10-K
CY2016 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.01
CY2016 dei Entity Central Index Key
EntityCentralIndexKey
0001559865
CY2016 dei Entity Well Known Seasoned Issuer
EntityWellKnownSeasonedIssuer
No
CY2016 us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
168054000
CY2016 us-gaap Number Of Businesses Acquired
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2 Business
CY2016 us-gaap Revenue Recognition Accounting Policy Gross And Net Revenue Disclosure
RevenueRecognitionAccountingPolicyGrossAndNetRevenueDisclosure
<div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt"> <b>Revenue Recognition</b></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt"> The Company&#x2019;s revenue recognition policy follows the guidance from Accounting Standards Codification (&#x201C;ASC&#x201D;) 605 <i>Revenue Recognition</i>; ASC 605-25, <i>Revenue Recognition&#x2014;Multiple Element Arrangements</i>; and; ASC 985, <i>Software</i>, which provide guidance on the recognition, presentation, and disclosure of revenue in consolidated financial statements.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; MARGIN-TOP: 0pt"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 0pt"> The Company recognizes revenue when the following four criteria are met: (i)&#xA0;persuasive evidence of an agreement exists, (ii)&#xA0;delivery and acceptance has occurred or services have been rendered, (iii)&#xA0;the selling price is fixed or determinable, and (iv)&#xA0;collection is reasonably assured. For multiple deliverable arrangements, EVERTEC evaluates each arrangement to determine if the elements or deliverables within the arrangement represent separate units of accounting pursuant to ASC 605-25. If the deliverables are determined to be separate units of accounting, revenues are recognized as units of accounting are delivered and the revenue recognition criteria are met. If the deliverables are not determined to be separate units of accounting, revenues for the delivered services are combined into one unit of accounting and recognized (i)&#xA0;over the life of the arrangement if all services are consistently delivered over such term, or if otherwise, (ii)&#xA0;at the time that all services and deliverables have been delivered. The selling price for each deliverable is based on vendor specific objective evidence (&#x201C;VSOE&#x201D;) if available, third party evidence (&#x201C;TPE&#x201D;) if VSOE is not available, or management best estimate of selling price (&#x201C;BESP&#x201D;) if neither VSOE nor TPE is available. EVERTEC establishes VSOE of selling price using the price charged when the same element is sold separately. EVERTEC bifurcates or allocates the arrangement consideration to each of the deliverables based on the relative selling price of each unit of accounting.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt"> The Company has two main categories of revenues according to the type of transactions EVERTEC enters into with the Company&#x2019;s customers: (a)&#xA0;transaction-based fees and (b)&#xA0;fixed fees and time and material.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt"> <i>Transaction-based fees</i></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt"> The Company provides services that generate transaction-based fees. Typically transaction-based fees depend on factors such as number of accounts or transactions processed. These factors typically consist of a fee per transaction or item processed, a percentage of dollar volume processed or a fee per account on file, or some combination thereof. Revenue derived from the transaction-based fee contracts are recognized when the underlying transaction is processed, which constitutes delivery of service.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt"> Revenues from business contracts in the Company&#x2019;s Merchant Acquiring segment are primarily comprised of discount fees charged to the merchants based on the sales amount of transactions processed. Revenues include a discount fee and membership fees charged to merchants and debit network fees as well as point-of-sale (&#x201C;POS&#x201D;) rental fees. Pursuant to the guidance from ASC 605-45-45, <i>Revenue Recognition&#x2014;Principal Agent Considerations</i>, EVERTEC records Merchant Acquiring revenues net of interchange and assessments charged by the credit and debit card network associations and recognizes such revenues at the time of the sale (when a transaction is processed).</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt"> Payment processing revenues are comprised of revenues related to providing access to the ATH network and other card networks to financial institutions, and related services. Payment processing revenues also include revenues from card issuer processing services (such as credit and debit card processing, authorization and settlement, and fraud monitoring and control to debit or credit card issuers), payment processing services (such as payment and billing products for merchants, businesses and financial institutions) and electronic benefit transfer (&#x201C;EBT&#x201D;) (which principally consists of services to the Puerto Rico government for the delivery of government benefits to participants). Revenues in EVERTEC&#x2019;s Payment Processing segment are primarily comprised of fees per transaction processed or per account on file, or a combination of both, and are recognized at the time transactions are processed or on a monthly basis for accounts on file.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt"> Transaction-based fees within EVERTEC&#x2019;s Business Solutions segment consist of revenues from business process management solutions including core bank processing, business process outsourcing, item and cash processing, and fulfillment. Transaction-based fee revenues generated by the Company&#x2019;s core bank processing services are derived from fees based on various factors such as the number of accounts on file (e.g. savings or checking accounts, loans, etc.), and the number of transactions processed or registered users (e.g. for online banking services). For services dependent on the number of transactions processed, revenues are recognized as the underlying transactions are processed. For services dependent on the number of users or accounts on file, revenues are recognized on a monthly basis based on the number of accounts on file each month. Item and cash processing revenues are based upon the number of items (e.g. checks) processed and revenues are recognized when the underlying item is processed. Fulfillment services include technical and operational resources for producing and distributing variable print documents such as statements, bills, checks and benefits summaries. Fulfillment revenues are based upon the number pages for printing services and the number of envelopes processed for mailing services. Revenues are recognized as services are delivered based on a fee per page printed or envelope mailed, as applicable.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt"> <i>Fixed fees and time and material</i></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt"> The Company also provides services that generate a fixed fee per month or fees based on time and expenses incurred. These services are mostly provided in EVERTEC&#x2019;s Business Solutions segment. Revenues are generated from EVERTEC&#x2019;s core bank solutions, network hosting and management and IT consulting services.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt"> In core bank solutions, the Company mostly provides access to applications and services such as back-up or recovery, hosting and maintenance that enable a bank to operate the related hosted services accessing the Company&#x2019;s IT infrastructure. These contracts generally contain multiple elements or deliverables which are evaluated by EVERTEC and revenues are recognized according to the applicable guidance. Revenue is derived from fixed fees charged for the use of hosted services and are recognized on a monthly basis as delivered. Set-up fees are billed to the customer when the service is rendered; however, they are deferred and recognized as revenues over the term of the arrangement or the expected period of the customer relationship, whichever is longer, as set-up services rarely provide value to the customer on a stand-alone basis and are interrelated with the service to be provided under the contract.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt"> In network hosting and management, EVERTEC provides hosting services for network infrastructure at EVETEC&#x2019;s facilities; automated monitoring services; maintenance of call centers; interactive voice response solutions, among other related services. Revenues are primarily derived from monthly fees as services are delivered. Set-up fees are billed up-front to the customer when the set-up service is rendered; however, they are deferred and recognized as revenues over the term of the arrangement or the expected period of the customer relationship, whichever is longer, as set-up services rarely provide value to the customer on a stand-alone basis and are interrelated with the service under the contract. There are some arrangements under this line of service category that may contain undelivered elements. In such cases, the undelivered elements are evaluated and recognized when the services are delivered or at the time that all deliverables under the contract have been delivered.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt"> IT consulting services revenue primarily consists of time billings based upon the number of hours dedicated to each client. Revenue from time billings are recognized as services are delivered.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt"> EVERTEC also charges members of the ATH network an annual membership fee; however, these fees are deferred and recognized as revenues on a straight-line basis over the year and recorded in the Company&#x2019;s Payment Processing segment. In addition, occasionally EVERTEC is a reseller of hardware and software products and revenues from these resale transactions are recognized when such product is delivered and accepted by the client.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt"> <i>Service level arrangements</i></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt"> The Company&#x2019;s service contracts may include service level arrangements (&#x201C;SLA&#x201D;) generally allowing the customer to receive a credit for part of the service fee when the Company has not provided the agreed level of services. The SLA performance obligation is committed on a monthly basis, thus SLA performance is monitored and assessed for compliance with arrangements on a monthly basis, including determination and accounting for its economic impact, if any.</p> </div>
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod
66667 shares
CY2016 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
6.04
CY2016 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice
24.01
CY2016 dei Trading Symbol
TradingSymbol
EVTC
CY2016 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
74473369 shares
CY2016 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
74132863 shares
CY2016 dei Amendment Flag
AmendmentFlag
false
CY2016 us-gaap Financing Receivable Allowance For Credit Losses Policy For Uncollectible Amounts
FinancingReceivableAllowanceForCreditLossesPolicyForUncollectibleAmounts
<div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt"> <b>Allowance for Doubtful Accounts</b></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt"> An allowance for doubtful accounts is provided for based on the estimated uncollectible amounts of the related receivables. The estimate is primarily based on a review of the current status of specific accounts receivable. Receivables are considered past due if full payment is not received by the contractual date. Past due accounts are generally written off against the allowance for doubtful accounts only after all collection attempts have been exhausted.</p> </div>
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
33333 shares
CY2016 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
24.01
CY2016 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
340506 shares
CY2016 us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
0.40
CY2016 dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
CY2016 dei Document Period End Date
DocumentPeriodEndDate
2016-12-31
CY2016 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.01
CY2016 dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes
CY2016 dei Entity Filer Category
EntityFilerCategory
Large Accelerated Filer
CY2016 us-gaap Income Tax Holiday Description
IncomeTaxHolidayDescription
The grant contains customary commitments, conditions and representations that EVERTEC Group will be required to comply with in order to maintain the grant. The more significant commitments include: (i) maintaining at least 750 employees in EVERTEC Group’s Puerto Rico data processing operations during 2012 and at least 700 employees for the remaining years of the grant, (ii) investing at least $200.0 million in building, machinery, equipment or computer programs to be used in Puerto Rico during the effective term of the grant (to be made over four year capital investment cycles in $50.0 million increments); and (iii) 80% of EVERTEC Group employees must be residents of Puerto Rico.
CY2016 us-gaap Income Tax Holiday Termination Date
IncomeTaxHolidayTerminationDate
2024-11-30
CY2016 us-gaap Increase Decrease In Other Noncurrent Assets
IncreaseDecreaseInOtherNoncurrentAssets
1790000
CY2016 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
3 Segment
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
0 shares
CY2016 us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
2500000 shares
CY2016 us-gaap Use Of Estimates
UseOfEstimates
<div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt"> <b>Use of Estimates</b></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt"> The preparation of the accompanying consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.</p> </div>
CY2016 dei Entity Registrant Name
EntityRegistrantName
EVERTEC, Inc.
CY2016 dei Entity Voluntary Filers
EntityVoluntaryFilers
No
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Exercised
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised
20000 shares
CY2016 us-gaap Revenues
Revenues
389507000
CY2016 us-gaap Revenue From Related Parties
RevenueFromRelatedParties
176473000
CY2016 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
18450000
CY2016 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
39946000
CY2016 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
15600000
CY2016 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
-3360000
CY2016 us-gaap Other Comprehensive Income Derivatives Qualifying As Hedges Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeDerivativesQualifyingAsHedgesNetOfTaxPortionAttributableToParent
-1449000
CY2016 us-gaap Noncontrolling Interest Increase From Business Combination
NoncontrollingInterestIncreaseFromBusinessCombination
3409000
CY2016 us-gaap Interest Income Deposits With Financial Institutions
InterestIncomeDepositsWithFinancialInstitutions
377000
CY2016 us-gaap Increase Decrease In Accounts And Other Receivables
IncreaseDecreaseInAccountsAndOtherReceivables
2583000
CY2016 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
-1476000
CY2016 us-gaap Operating Income Loss
OperatingIncomeLoss
107145000
CY2016 us-gaap Net Income Loss
NetIncomeLoss
75036000
CY2016 us-gaap Interest Income Related Party
InterestIncomeRelatedParty
211000
CY2016 us-gaap Interest Paid
InterestPaid
22535000
CY2016 us-gaap Goodwill Foreign Currency Translation Gain Loss
GoodwillForeignCurrencyTranslationGainLoss
-2138000
CY2016 us-gaap Equity Method Investment Summarized Financial Information Revenue
EquityMethodInvestmentSummarizedFinancialInformationRevenue
2100000
CY2016 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
70227000
CY2016 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
6408000
CY2016 us-gaap Repayments Of Short Term Debt
RepaymentsOfShortTermDebt
2213000
CY2016 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
96741000
CY2016 us-gaap Profit Loss
ProfitLoss
75126000
CY2016 us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
23819000
CY2016 us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
548000
CY2016 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
4830000
CY2016 us-gaap Payments Of Dividends
PaymentsOfDividends
29696000
CY2016 us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-24240000
CY2016 us-gaap Income Taxes Paid
IncomeTaxesPaid
8697000
CY2016 us-gaap Payments Of Financing Costs
PaymentsOfFinancingCosts
3587000
CY2016 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
544000
CY2016 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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-4809000
CY2016 us-gaap Other Comprehensive Income Loss Net Of Tax
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-4809000
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NonoperatingIncomeExpense
-23748000
CY2016 us-gaap Net Income Loss Available To Common Stockholders Basic
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75024000
CY2016 us-gaap Increase Decrease In Restricted Cash
IncreaseDecreaseInRestrictedCash
-3705000
CY2016 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
1426000
CY2016 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
-52000
CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
83397000
CY2016 us-gaap Gain Loss On Disposition Of Assets
GainLossOnDispositionOfAssets
-453000
CY2016 us-gaap Foreign Currency Transaction Gain Loss Realized
ForeignCurrencyTransactionGainLossRealized
1900000
CY2016 us-gaap Capitalized Computer Software Impairments1
CapitalizedComputerSoftwareImpairments1
2277000
CY2016 us-gaap Deferred Federal Income Tax Expense Benefit
DeferredFederalIncomeTaxExpenseBenefit
-259000
CY2016 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
-4594000
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DepreciationDepletionAndAmortization
14200000
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DividendsCommonStockCash
29696000
CY2016 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
8271000
CY2016 us-gaap Interest Expense
InterestExpense
24617000
CY2016 us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
-54083000
CY2016 us-gaap Noncash Or Part Noncash Acquisition Value Of Assets Acquired1
NoncashOrPartNoncashAcquisitionValueOfAssetsAcquired1
3302000
CY2016 us-gaap Other Comprehensive Income Loss Tax Portion Attributable To Parent1
OtherComprehensiveIncomeLossTaxPortionAttributableToParent1
176000
CY2016 us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
81000
CY2016 us-gaap Share Based Compensation
ShareBasedCompensation
6408000
CY2016 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
283000
CY2016 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestExpense
2000000
CY2016 us-gaap Adjustments To Reconcile Net Income Loss To Cash Provided By Used In Operating Activities
AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities
92928000
CY2016 us-gaap Current Federal Tax Expense Benefit
CurrentFederalTaxExpenseBenefit
567000
CY2016 us-gaap Current Foreign Tax Expense Benefit
CurrentForeignTaxExpenseBenefit
5226000
CY2016 us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
12865000
CY2016 us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
700000
CY2016 us-gaap Depreciation And Amortization
DepreciationAndAmortization
59567000
CY2016 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Net
FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetTransfersNet
0
CY2016 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
32525000
CY2016 us-gaap Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
8018000
CY2016 us-gaap Increase Decrease In Other Noncurrent Liabilities
IncreaseDecreaseInOtherNoncurrentLiabilities
3747000
CY2016 us-gaap Proceeds From Repayments Of Short Term Debt
ProceedsFromRepaymentsOfShortTermDebt
11000000
CY2016 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
46986000
CY2016 us-gaap Amortization Of Financing Costs And Discounts
AmortizationOfFinancingCostsAndDiscounts
4334000
CY2016 us-gaap Costs And Expenses
CostsAndExpenses
282362000
CY2016 us-gaap Goodwill And Intangible Asset Impairment
GoodwillAndIntangibleAssetImpairment
0
CY2016 us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
1000
CY2016 us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
-90798000
CY2016 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
90000
CY2016 us-gaap Proceeds From Dividends Received
ProceedsFromDividendsReceived
0
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
200000
CY2016 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
345000
CY2016 us-gaap Cash And Cash Equivalents Period Increase Decrease
CashAndCashEquivalentsPeriodIncreaseDecrease
23173000
CY2016 us-gaap Cost Of Revenue
CostOfRevenue
2180000
CY2016 us-gaap Deferred Foreign Income Tax Expense Benefit
DeferredForeignIncomeTaxExpenseBenefit
-1461000
CY2016 us-gaap Goodwill Acquired During Period
GoodwillAcquiredDuringPeriod
4991000
CY2016 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0
CY2016 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
14594000
CY2016 us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
405000
CY2016 us-gaap Interest Costs Capitalized
InterestCostsCapitalized
400000
CY2016 us-gaap Proceeds From Issuance Of Debt
ProceedsFromIssuanceOfDebt
75763000
CY2016 us-gaap Restricted Stock Award Forfeitures Dividends
RestrictedStockAwardForfeituresDividends
12000
CY2016 us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
39946000
CY2016 evtc Other Non Operating Income Expense Other
OtherNonOperatingIncomeExpenseOther
544000
CY2016 evtc Current Territory Tax Expense Benefit
CurrentTerritoryTaxExpenseBenefit
7072000
CY2016 evtc Merchant Acquiring Net
MerchantAcquiringNet
91248000
CY2016 evtc Payment Processing
PaymentProcessing
111507000
CY2016 evtc Stock Issued During Period Stock Options Exercised Net Of Cashless Exercises
StockIssuedDuringPeriodStockOptionsExercisedNetOfCashlessExercises
-79000
CY2016 evtc Income Tax Reconciliation Unrecognized Tax Benefit
IncomeTaxReconciliationUnrecognizedTaxBenefit
373000
CY2016 evtc Preferential Income Tax Rate
PreferentialIncomeTaxRate
0.04 pure
CY2016 evtc Income Tax Reconciliation Effect Of Income Subject To Tax Exemption Grant
IncomeTaxReconciliationEffectOfIncomeSubjectToTaxExemptionGrant
24866000
CY2016 evtc Dividends Forfeited
DividendsForfeited
18000
CY2016 evtc Rent And Other Fees Paid To Related Party
RentAndOtherFeesPaidToRelatedParty
8110000
CY2016 evtc Rent Expense For Office Facilities And Real Estate
RentExpenseForOfficeFacilitiesAndRealEstate
8200000
CY2016 evtc Business Solutions Revenue From Affiliates
BusinessSolutionsRevenueFromAffiliates
143988000
CY2016 evtc Deferred Territory Income Tax Expense Benefit
DeferredTerritoryIncomeTaxExpenseBenefit
-2874000
CY2016 evtc Income Tax Reconciliation Change In Estimate
IncomeTaxReconciliationChangeInEstimate
258000
CY2016 evtc Income Tax Reconciliation Tax Exempt Interest Income
IncomeTaxReconciliationTaxExemptInterestIncome
52000
CY2016 evtc Business Solutions
BusinessSolutions
186752000
CY2016 evtc Payment Processing Revenue From Affiliates
PaymentProcessingRevenueFromAffiliates
32485000
CY2016 evtc Provision For Doubtful Accounts And Sundry Losses
ProvisionForDoubtfulAccountsAndSundryLosses
1990000
CY2016 evtc Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued Period Increase Decrease
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccruedPeriodIncreaseDecrease
700000
CY2016 evtc Defined Contribution Plan Vesting Period
DefinedContributionPlanVestingPeriod
P5Y
CY2016 evtc Rent Expense For Telecommunications And Other Equipment
RentExpenseForTelecommunicationsAndOtherEquipment
6200000
CY2016 evtc Stock Issued And Granted During Period Value Restricted Stock Award Net Of Cashless
StockIssuedAndGrantedDuringPeriodValueRestrictedStockAwardNetOfCashless
470000
CY2016 evtc Cost Of Revenues Excluding Depreciation And Amortization
CostOfRevenuesExcludingDepreciationAndAmortization
175809000
CY2016 evtc Income Tax Reconciliation Differences In Tax Rates Due To Multiple Jurisdictions
IncomeTaxReconciliationDifferencesInTaxRatesDueToMultipleJurisdictions
32000
CY2016 evtc Deferred Tax Assets Realized Increase In Equity Description
DeferredTaxAssetsRealizedIncreaseInEquityDescription
Equity will be increased by $4.2 million if and when such windfall tax benefit is ultimately realized. The Company uses tax law ordering when determining when windfall tax benefits have been realized.
CY2016Q2 evtc Credit Facility Amendment Fee
CreditFacilityAmendmentFee
3600000

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