Evertec Inc (EVTC) 2024 Q3 法說會逐字稿

Good afternoon, everyone and welcome to Evertec's third quarter 2024 earnings conference call. Today's conference call is being recorded. (Operator Instructions)

大家下午好，歡迎參加 Evertec 2024 年第三季財報電話會議。今天的電話會議正在錄音。（操作員指令）

I would now like to turn the conference over to Beatriz Brown-Saenz of Investor Relations. Please go ahead.

現在，我想將會議交給投資者關係部的 Beatriz Brown-Saenz。請繼續。

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

謝謝，下午好。今天與我一起的是我們的總裁兼執行長 Mac Schuessler；以及我們的財務長 Joaquin Castrillo。

Before we begin, I would like to remind everyone that this call may contain forward-looking statements and should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent periodic SEC report. During today's call, management will provide certain information that will constitute non-GAAP financial measures under SEC rules, such as adjusted EBITDA, adjusted net income and adjusted earnings per common share.

在我們開始之前，我想提醒大家，本次電話會議可能包含前瞻性陳述，應與我們的收益報告和公司最新的定期 SEC 報告中的警告聲明一起考慮。在今天的電話會議上，管理層將提供一些根據美國證券交易委員會規則構成非公認會計準則財務指標的信息，例如調整後的 EBITDA、調整後的淨收入和調整後的每股普通股收益。

Reconciliations to GAAP measures and certain additional information are also included in today's earnings release and related supplemental slides, which are available in the Investor Relations section of our company website at www.evertecinc.com.

今天的收益報告和相關補充幻燈片中還包含與 GAAP 指標的對帳表和某些附加信息，可在我們公司網站 www.evertecinc.com 的投資者關係部分找到。

I will now hand the call over to Mac.

我現在將電話交給麥克。

Thanks, Beatriz. I'm pleased to report strong third quarter results with revenue growth across all segments and margins that were once again above our expectations. Growth remained strong in Puerto Rico, while LatAm continued to deliver strong organic growth as well as the contribution from the Sinqia since acquisition. I'm also pleased to announce that we have closed on the acquisition of Grandata in Latin America.

謝謝，比阿特麗斯。我很高興地報告第三季業績強勁，所有部門的收入均實現成長，利潤率再次超出我們的預期。波多黎各的成長依然強勁，而拉美地區繼續實現強勁的有機成長以及自收購以來 Sinqia 的貢獻。我還很高興地宣布，我們已經完成對拉丁美洲 Grandata 的收購。

On today's call, I will start with some highlights from the quarter followed by discussion of our Puerto Rico segment, concluding with an update on Latin America. I will then turn it over to Joaquin, who will provide further details on our third quarter results, an update to our expectations for the remainder of the year and some important items to consider for 2025.

在今天的電話會議上，我將首先介紹本季的一些亮點，然後討論波多黎各部分，最後介紹拉丁美洲的情況。然後，我將把話題交給 Joaquin，他將提供有關我們第三季業績的更多詳細資訊、對今年剩餘時間的預期更新以及 2025 年需要考慮的一些重要事項。

Beginning on slide 4. Total revenue was approximately $212 million for the third quarter, an increase of approximately 22% compared to the third quarter of 2023. Adjusted EBITDA was approximately $87 million, an increase of approximately 11% when compared with the prior year. Adjusted EBITDA margin was 41.3%, approximately 420 basis points below last year's level, but above our expectations and guidance.

從投影片 4 開始。第三季總營收約 2.12 億美元，較 2023 年第三季成長約 22%。調整後 EBITDA 約 8,700 萬美元，較上年增長約 11%。調整後的 EBITDA 利潤率為 41.3%，比去年同期低約 420 個基點，但高於我們的預期和指導。

Adjusted earnings per share was $0.86, an increase of 8% from the prior year adjusted EPS of $0.80. Year-to-date, we have generated operating cash flow of $185 million and have returned approximately $92 million to our shareholders through dividends and share repurchases including $12 million in repurchases this quarter. Additionally, our liquidity remains strong at approximately $469 million as of September 30.

調整後每股收益為 0.86 美元，較上年調整後每股收益 0.80 美元成長 8%。年初至今，我們已產生 1.85 億美元的營運現金流，並透過股利和股票回購向股東返還了約 9,200 萬美元，其中包括本季的 1,200 萬美元回購。此外，截至 9 月 30 日，我們的流動資金依然強勁，約 4.69 億美元。

Moving on to our business update on slide 5. In Puerto Rico, we experienced growth across all of our segments. Merchant acquiring was quite strong, with revenue up approximately 12% year-over-year driven by higher sales volume and a higher spread. Payments Puerto Rico was up approximately 2%, driven by growth in ATH Móvil and POS transactions, partially offset by comparison against a strong prior year quarter. Our Business Solutions segment revenue was up approximately 8% as projects with Popular that have gone into production have started to contribute more meaningfully.

接下來是投影片 5 上的業務更新。在波多黎各，我們所有業務領域都實現了成長。商家收單表現相當強勁，受銷售量增加和利差擴大的推動，營收年增約 12%。波多黎各支付業務成長約 2%，主要得益於 ATH Móvil 和 POS 交易的成長，但與去年同期的強勁表現相比，部分抵銷了這一成長。由於與 Popular 合作投入生產的專案開始做出更有意義的貢獻，我們的商業解決方案部門收入成長了約 8%。

Turning to the macro environment in Puerto Rico. The overall backdrop remains stable. The overall level of employment has continued its upward trend and was up 1.9% year-over-year for the most recent reading in August. With the unemployment rate ticking down to 5.7%, still near the lowest levels in decades.

轉向波多黎各的宏觀環境。整體基本保持穩定。整體就業水準持續呈上升趨勢，8月最新數據年增1.9%。失業率下降至 5.7%，仍接近幾十年來的最低水準。

Travel and tourism trends continue to be a bright spot as arrivals to the international airport in San Juan accelerated during the third quarter and are up approximately 19% year-over-year for the first nine months of the year. Nonresident hotel registrations remained up over 4% year-to-date through September. In sum, we continue to view the macroeconomic environment as supportive.

旅行和旅遊業趨勢繼續成為亮點，因為第三季度抵達聖胡安國際機場的旅客人數加速增加，今年前九個月同比增長約 19%。截至 9 月份，非居民飯店註冊量今年迄今仍上漲 4% 以上。總之，我們仍然認為宏觀經濟環境是有利的。

Before leaving Puerto Rico, I want to call out some items to consider as you think about next year. As part of the renegotiation with Popular in 2022, please recall that our MSA extension agreement provided for a 10% discount on certain MSA services beginning in October of 2025. We recognize that this discount will have an impact on our top line and margin for the fourth quarter of 2025 and full year 2026.

在離開波多黎各之前，我想提一下您在考慮明年時需要考慮的一些事項。作為 2022 年與 Popular 重新談判的一部分，請記住，我們的 MSA 延期協議規定，從 2025 年 10 月開始，某些 MSA 服務可享受 10% 的折扣。我們認識到，此折扣將對我們 2025 年第四季和 2026 年全年的營業收入和利潤產生影響。

And as such, we have already started executing on cost efficiency initiatives that we expect will more than offset the effect of the discount on our EBITDA. Some of these initiatives have already started to take place and are part of the reason we delivered better margins this quarter. We expect the totality of these initiatives to be in place by the end of 2025 with a full effect in 2026.

因此，我們已經開始執行成本效益舉措，預計這些舉措將足以抵銷折扣對我們的 EBITDA 的影響。其中一些措施已經開始實施，這也是我們本季實現更高利潤的原因之一。我們預計這些措施將於 2025 年底全部到位，並於 2026 年全面生效。

From a business perspective, this discount will enable us to become even more competitive in terms of pricing with our largest client. And we hope to use this advantage to drive more business over the coming years. Joaquin will provide more details on these efforts later in the call.

從商業角度來看，這種折扣將使我們在與最大客戶的定價方面更具競爭力。我們希望利用這一優勢在未來幾年推動更多業務。華金將在稍後的電話會議中提供有關這些努力的更多細節。

Moving to Latin America on slide 6. Revenue was up 65% year-over-year. The acquisition of Sinqia was once again the major contributor in terms of year-over-year growth. We also recognized a onetime revenue from GetNet Chile of $1.8 million, given better-than-expected volumes from this relationship. But this compared to the $6.3 million recognized from GetNet in the prior year quarter.

移至幻燈片 6 上的拉丁美洲。營收年增65%。收購 Sinqia 再次成為年成長的主要貢獻者。由於此次合作帶來的業務量優於預期，我們也確認了來自 GetNet Chile 的 180 萬美元的一次性收入。但相較之下，去年同期 GetNet 的營收為 630 萬美元。

Currency was also a headwind impacting the segment's growth by approximately 10 percentage points. If we remove the impact of Sinqia, GetNet and currency, LatAm growth would have been in the low double digits on a year-over-year basis, consistent with our long-term goal for the segment.

貨幣也是一個不利因素，影響了該部門的成長約 10 個百分點。如果我們消除 Sinqia、GetNet 和貨幣的影響，拉美地區的成長率將達到同比低兩位數，這與我們對該部門的長期目標一致。

Turning to Sinqia. It's been a year since the acquisition, and we continue to be extremely excited about the long-term opportunity in this business. I want to now update you on three of the five areas of focus that we have previously discussed.

轉向辛恰。收購已經一年了，我們仍然對這項業務的長期機會感到非常興奮。現在，我想向大家介紹我們之前討論過的五個重點領域中的三個。

First, on product modernization, we continue to make progress on the key platforms, which we have been focused on updating. As an example, we implemented a new version of our GRC platform and are already seeing results as we recently signed an important client to the newer version. A number of other banks have also expressed interest, and we expect to see additional new wins in the coming quarters.

首先，在產品現代化方面，我們持續在重點更新的關鍵平台上取得進展。舉例來說，我們實施了新版本的 GRC 平台，並且已經看到了成效，因為我們最近與一位重要客戶簽訂了新版本的協議。其他一些銀行也表達了興趣，我們預計未來幾季還會有更多新得標。

Second, on revenue synergies. We've identified a number of opportunities to reprice contracts on more favorable terms, and we did, in fact, see progress on that front in the third quarter, having repriced contracts representing 51 clients so far.

第二，關於所得綜效。我們已經發現了許多以更優惠的條款重新定價合約的機會，事實上，我們確實在第三季度看到了這方面的進展，迄今為止已經對代表 51 個客戶的合約進行了重新定價。

And finally, from the margin optimization perspective, we are already executing on a plan to increase our margins for next year. Therefore, based on the ongoing modernization, repricing and margin optimization efforts, we are confident that Sinqia will experience higher revenue growth rates and margins in 2025.

最後，從利潤優化的角度來看，我們已經在執行明年提高利潤率的計畫。因此，基於正在進行的現代化、重新定價和利潤優化努力，我們相信 Sinqia 將在 2025 年實現更高的收入成長率和利潤率。

Moving on to slide 7. We are also pleased to announce that we have closed the acquisition of Grandata, a data analytics company operating in Latin America that specializes in leveraging behavioral data to provide credit risk insights with a focus on underbanked populations. This acquisition enhances our proprietary product offering as well as expands our relationship with two of the most important fintechs in the region, including Mercado Libre and one of the largest digital banks.

轉到投影片 7。我們也很高興地宣布，我們已經完成對 Grandata 的收購，這是一家在拉丁美洲運營的數據分析公司，專門利用行為數據提供信用風險洞察，重點關注銀行服務不足的人群。此次收購增強了我們的專有產品供應，並擴大了我們與該地區兩家最重要的金融科技公司的關係，包括 Mercado Libre 和最大的數位銀行之一。

This product is a natural extension to our issuing platform, positioning us as the preferred partner throughout Latin America. We are also encouraged by the organic client pipeline that we have for Latin America, the best pipeline we have had in the last couple of years. And we expect to sign new contracts as we exit this year and then in the next year, that should begin to impact revenues in 2026.

該產品是我們發行平台的自然延伸，使我們成為整個拉丁美洲的首選合作夥伴。我們在拉丁美洲擁有的自然客戶管道也令我們感到鼓舞，這是我們過去幾年來最好的客戶管道。我們預計在今年退出時簽署新的合同，然後在明年簽署，這將對 2026 年的收入產生影響。

Finally, I would like to highlight our commitment to our people and community. In October, we hosted the winners of our Chairman's Award in New York City, including a trip to the New York Stock Exchange. The Chairman's Award is the highest recognition that our collaborators at Evertec can achieve, and I would like to personally thank this year's winners for their contributions.

最後，我想強調我們對人民和社區的承諾。十月份，我們在紐約接待了董事長獎得主，並安排他們參觀了紐約證券交易所。主席獎是 Evertec 的合作夥伴可以獲得的最高認可，我要親自感謝今年的獲獎者所做的貢獻。

I would also like to highlight our commitment to our scholarship program in Puerto Rico and Latin America. The program is now in its tenth year, having awarded approximately $1.4 million from scholarships over the 10-year life of the program. And we remain committed to supporting higher education in both Puerto Rico and LatAm as we go forward.

我還要強調我們對波多黎各和拉丁美洲獎學金計劃的承諾。該計劃現已進入第十個年頭，在實施的十年間已頒發了約 140 萬美元的獎學金。我們將繼續致力於支持波多黎各和拉丁美洲的高等教育。

In sum, this was another strong quarter for Evertec. We continue to deliver organic growth across all our segments, while producing upside to our margin expectations. We're executing our acquisition strategy, integrating Sinqia while also closing deals like Grandata that further expand our product offering and presence in LatAm. I want to thank the teams that worked so hard this past quarter to deliver these results.

總而言之，這對 Evertec 來說又是一個強勁的季度。我們所有部門持續實現有機成長，同時利潤率預期也呈現上升趨勢。我們正在執行收購策略，整合 Sinqia，同時完成 Grandata 等交易，進一步擴大我們的產品供應和在拉丁美洲的影響力。我要感謝過去一個季度辛勤工作以取得這些成果的團隊。

We remain excited about our long-term growth prospects in both LatAm and Puerto Rico and our ability to deliver attractive margins over time. With that, I'll now turn it over to Joaquin to provide a more in-depth look at our third quarter results, our increased EPS outlook for 2024 and some items to consider for 2025.

我們對拉丁美洲和波多黎各的長期成長前景以及我們隨著時間的推移實現可觀利潤的能力感到興奮。現在，我將把話題轉到 Joaquin 身上，讓他更深入地介紹我們的第三季業績、我們對 2024 年每股收益的預期增長以及 2025 年需要考慮的一些事項。

Thank you, Mac, and good afternoon, everyone. Turning to slide 9, you will see the consolidated third quarter results for Evertec. Total revenue for the third quarter was $211.8 million, up approximately 22% compared to $173.2 million in the prior year. Revenue growth was primarily driven by the Sinqia acquisition in the LatAm segment as well as organic growth across all of our segments, driven mainly by higher volumes, higher spreads, and revenue perform projects that have gone into production in the past couple of quarters.

謝謝你，麥克，大家下午好。翻到第 9 頁，您將看到 Evertec 的第三季綜合業績。第三季總營收為 2.118 億美元，較去年同期的 1.732 億美元成長約 22%。收入成長主要得益於拉美地區對 Sinqia 的收購以及所有地區的有機成長，這主要得益於交易量的增加、利差的擴大以及過去幾個季度投入生產的收入執行項目。

Revenue growth was negatively impacted by foreign currency, which represented a headwind of approximately 2.6 percentage points for the quarter. Adjusted EBITDA for the quarter was $87.4 million, an increase of approximately $8.7 million or 11% when compared to the prior year quarter.

營收成長受到外匯的負面影響，佔本季營收成長約 2.6 個百分點的阻力。本季調整後 EBITDA 為 8,740 萬美元，較去年同期增加約 870 萬美元，增幅 11%。

Adjusted EBITDA margin was approximately 41.3%, a decrease of approximately 420 basis points compared to prior year, but above the 39% we have been charging for the year. The upside in margin was the higher-than-expected revenue, proactive management of expenses, including cost initiatives mentioned by Mac, partially offset by the impact in the prior year of the $6.3 million onetime from GetNet Chile, which was highly accretive to margin compared to $21.8 million in the current quarter.

調整後的 EBITDA 利潤率約為 41.3%，比前一年下降約 420 個基點，但高於今年的 39%。利潤率的上升是由於收入高於預期，積極主動的費用管理，包括 Mac 提到的成本計劃，部分抵消了上年同期 GetNet Chile 的 630 萬美元一次性援助的影響，與本季度的 2,180 萬美元相比，這項援助對利潤率有很大的增值作用。

Adjusted net income for the quarter was $55.4 million, an increase of 6% compared to $52.4 million in the prior year. The increase was driven by higher adjusted EBITDA, a decrease in non-GAAP tax expense partially offset by higher operating depreciation and amortization, and higher cash interest expense due to the incremental debt raised for the Sinqia acquisition. Our adjusted effective tax rate in the quarter was approximately 2%. Adjusted EPS was $0.86 for the quarter, an increase of approximately 8% compared to the prior year.

本季調整後淨收入為 5,540 萬美元，較去年同期的 5,240 萬美元成長 6%。成長的主要原因是調整後 EBITDA 增加、非 GAAP 稅費減少（部分被經營折舊和攤銷增加所抵銷）以及收購 Sinqia 所增加的增量債務導致的現金利息支出增加。我們本季的調整後有效稅率約為 2%。本季調整後每股收益為 0.86 美元，較上年增長約 8%。

Moving on to slide 10. I'll now cover our segment results, starting with Merchant Acquiring. In the third quarter, Merchant Acquiring net revenue increased approximately 12% year-over-year to approximately $45.4 million. Consistent with prior quarters, this increase was driven by a combination of higher sales volumes and higher spreads resulting in part from pricing initiatives.

轉到投影片 10。我現在將介紹我們的分部業績，從商家收單開始。第三季度，商家收單淨收入年增約 12% 至約 4,540 萬美元。與前幾季一致，這一增長是由銷售量增加和價差擴大共同推動的，價差擴大的部分原因是定價舉措。

We have been calling out in previous quarters, these pricing initiatives result from repricing existing relationships, reevaluating nontransactional fees, and managing brand costs. As a reminder, most of these will never say during the fourth quarter.

我們在前幾季就曾呼籲，這些定價舉措源自於重新定價現有關係、重新評估非交易費用以及管理品牌成本。提醒一下，大多數這些都不會在第四季揭曉。

Adjusted EBITDA for the segment was $18.2 million, up approximately 19%, and adjusted EBITDA margin was 40.1%, an increase of 240 basis points from the prior year quarter. The margin benefited from the higher revenues partially offset by higher processing costs from the Payment Services - Puerto Rico and Caribbean segment given the increase in transactions and an increase in the revenue sharing agreements driven by the higher revenues.

該部門調整後的 EBITDA 為 1,820 萬美元，成長約 19%，調整後的 EBITDA 利潤率為 40.1%，較去年同期增加 240 個基點。利潤率受益於更高的收入，但部分抵消了支付服務 - 波多黎各和加勒比地區部門的更高處理成本，因為交易量增加以及收入增加推動的收入分享協議增加。

On slide 11, you will see the results for the Payment Services - Puerto Rico & the Caribbean segment. Revenue for the segment in the third quarter was $52.8 million, up approximately 2% from the prior year. POS transactions were up 4% for the prior year, and ATH Móvil revenue growth continues to be double digits, driven by ATH business sales volumes. These positive impacts were partially offset by lower issuing services revenue mainly driven by lower active accounts.

在第 11 張幻燈片上，您將看到支付服務 - 波多黎各和加勒比地區部分的結果。該部門第三季的營收為 5,280 萬美元，較上年增長約 2%。POS 交易量較上年同期成長了 4%，而 ATH Móvil 的營收持續保持兩位數成長，這主要得益於 ATH 業務銷售量的推動。這些正面影響被發行服務收入的下降（主要由於活躍帳戶減少）部分抵消。

Adjusted EBITDA for the segment was $28.4 million, a decline of approximately 7% as compared to last year. Adjusted EBITDA margin was 53.7%, down approximately 510 basis points as compared to last year. The margin decline was mainly impacted by the positive impact to prior year's margin from the recovery of previously recorded operating losses and the impact from a lower number of transactions being charged to the Latin America segment.

該部門調整後 EBITDA 為 2,840 萬美元，較去年同期下降約 7%。調整後EBITDA利潤率為53.7%，較去年同期下降約510個基點。利潤率下降主要受到先前記錄的經營虧損恢復對上年利潤率產生的正面影響，以及計入拉丁美洲分部的交易數量減少的影響。

On Slide 12, you will see the results for our LatAm payments and solutions segment. Revenue for the segment in the third quarter was $76 million, up approximately 65% as compared to last year. The Sinqia acquisition continues to be the major driver of growth in the quarter. As Mac noted, we also faced a headwind from the onetime revenue from GetNet Chile in the prior year of $6.3 million compared to a much smaller $1.8 million recognition this quarter. Note that we do not expect any further effects of this nature from GetNet moving forward.

在第 12 張投影片上，您將看到我們拉丁美洲支付和解決方案部門的結果。該部門第三季的營收為 7,600 萬美元，比去年同期成長約 65%。對 Sinqia 的收購繼續成為本季成長的主要推動力。正如 Mac 所指出的，我們也面臨來自上年 GetNet Chile 一次性收入的阻力，該收入為 630 萬美元，而本季的確認收入僅為 180 萬美元。請注意，我們預計 GetNet 今後不會再產生此類影響。

We continue to see solid organic growth in the region and growth excluding the Sinqia acquisition, GetNet adjustments, and currency would have remained in the low double-digit range. This quarter, currency represented a 10% headwind to growth or an impact of approximately $4.5 million mainly due to the devaluation of the Brazilian real and, to a lesser extent, the Chilean currency, which both have negatively impacted Brazil revenues, including the revenue from Sinqia as well as Chilean revenues.

我們繼續看到該地區穩健的有機成長，若不包括 Sinqia 收購、GetNet 調整和貨幣因素，成長率仍將保持在兩位數以下。本季度，貨幣對成長造成了 10% 的阻力，或約 450 萬美元的影響，這主要是由於巴西雷亞爾貶值以及智利貨幣貶值（程度較小），這兩者都對巴西的收入產生了負面影響，包括來自 Sinqia 的收入以及智利的收入。

Adjusted EBITDA for the segment was $20.7 million, and adjusted EBITDA margin was 27.3%, down approximately 11 percentage points compared to last year. The reduced margin was due primarily to the addition of Sinqia, which has lower margins than the segment average and the effect from the lower Getnet onetime revenue, which was almost 100% accretive to margin.

該部門調整後的 EBITDA 為 2,070 萬美元，調整後的 EBITDA 利潤率為 27.3%，較去年同期下降約 11 個百分點。利潤率下降主要由於Sinqia的加入，其利潤率低於分部平均水平，以及Getnet一次性收入降低的影響，而Getnet一次性收入幾乎使利潤率增加了100％。

On slide 13, you will find the results for the business solutions segment. Business solutions revenue for the third quarter was up approximately 8% to $61.1 million primarily driven by the impact from projects with Popular that have now gone into production and are having a more meaningful impact.

在第 13 張投影片上，您將看到商業解決方案部分的結果。第三季的商業解決方案收入成長約 8%，達到 6,110 萬美元，這主要得益於與 Popular 合作的專案的影響，這些專案目前已投入生產並產生了更有意義的影響。

Adjusted EBITDA was $25.5 million and adjusted EBITDA margin was 41.7%, an up approximately 430 basis points as compared to the third quarter last year. The adjusted EBITDA margin increase was mainly driven by the higher revenues in the quarter, partially offset by higher programming and equipment expenses.

調整後 EBITDA 為 2,550 萬美元，調整後 EBITDA 利潤率為 41.7%，較去年第三季上升約 430 個基點。調整後的 EBITDA 利潤率成長主要得益於本季收入增加，但編程和設備費用增加部分抵消了這一增長。

Moving on to slide 14, you will see a summary of corporate and other. Our third quarter adjusted EBITDA was a negative $5.4 million, a decrease of approximately 3% compared to prior year. Our adjusted EBITDA as a percentage of total revenue was 2.6%, below the 3.2% a year ago.

翻到第 14 張投影片，您將看到公司和其他內容的摘要。我們第三季的調整後 EBITDA 為負 540 萬美元，較上年下降約 3%。我們的調整後 EBITDA 佔總收入的百分比為 2.6%，低於一年前的 3.2%。

moving on to our cash flow overview on Slide 15. Our beginning cash balance was approximately $319 million, including restricted cash of approximately $23 million. Net cash provided by operating activities year-to-date was approximately $185 million, an increase of approximately $26.6 million compared to prior year as we continue to effectively manage working capital.

繼續第 15 張投影片上的現金流量概覽。我們的期初現金餘額約為 3.19 億美元，其中包括約 2,300 萬美元的受限現金。由於我們繼續有效管理營運資金，年初至今經營活動提供的淨現金約為 1.85 億美元，比前一年增加約 2,660 萬美元。

Capital expenditures were approximately $70 million, and we continue to expect $85 million of our CapEx for the full year. We made net debt payments of $28.4 million and $9.9 million in withholding taxes on share-based compensation, which resulted in a total net debt decrease of approximately $38.3 million.

資本支出約為 7,000 萬美元，我們預計全年資本支出仍將達到 8,500 萬美元。我們支付了 2,840 萬美元的淨債務和 990 萬美元的股權激勵預扣稅，導致淨債務總額減少約 3,830 萬美元。

We paid cash dividends of $9.7 million, and we repurchased approximately 2.4 million shares of common stock for a total of approximately $82.3 million year-to-date, including the ASR that we completed in the third quarter. We currently have approximately $138 million available for future use under the company's share repurchase program through December 31, 2025.

我們支付了 970 萬美元的現金股息，並回購了約 240 萬股普通股，年初至今總額約為 8,230 萬美元，其中包括我們在第三季完成的 ASR。根據截至 2025 年 12 月 31 日的公司股票回購計劃，我們目前有約 1.38 億美元可供未來使用。

We also announced another $0.05 dividend to be paid on December 6, 2025, to shareholders of record as of October 28, 2024. Our ending cash balance as of September 30, was $301 million, and this included approximately $25.7 million of restricted cash.

我們也宣布將於 2025 年 12 月 6 日向截至 2024 年 10 月 28 日登記在冊的股東支付另一筆 0.05 美元的股息。截至 9 月 30 日，我們的期末現金餘額為 3.01 億美元，其中包括約 2,570 萬美元的受限現金。

Moving to Slide 16, you will find a summary of our debt as of September 30. Our quarter ending net debt position was approximately $712 million, comprised of approximately $275 million of unrestricted cash and approximately $987 million of total short-term borrowings and long-term debt. Our weighted average interest rate was 6.7%. And as a reminder, about 50% of our total debt is fixed through interest rate swaps.

翻到第 16 張投影片，您會看到截至 9 月 30 日的債務摘要。我們本季末的淨債務狀況約為 7.12 億美元，其中包括約 2.75 億美元的非限制現金和約 9.87 億美元的短期借款和長期債務總額。我們的加權平均利率為6.7%。提醒一下，我們的總債務中約有 50% 是透過利率互換來固定的。

Our net debt to trailing 12-month adjusted EBITDA was approximately 2.2 times. As of September 30, total equity was approximately $469 million. This balance excludes restricted cash and includes the available borrowing capacity under revolver.

我們的淨債務與過去 12 個月調整後的 EBITDA 比率約為 2.2 倍。截至 9 月 30 日，總股本約為 4.69 億美元。該餘額不包括受限現金，但包括循環信貸下的可用借貸能力。

Now I'll turn to slide 17 for commentary on our 2024 outlook as well as some initial comments to help you think about 2025. As mentioned previously, we saw an unfavorable impact from foreign currency movements that resulted in a headwind to growth of approximately 2.4% in our Q3 results, and we expect that headwind to continue into the fourth quarter. Considering the FX impact to Q3 and the expected continuation into Q4, we now expect our revenue range to be $840.5 million to $846.5 million, or growth of approximately 21% to 22% year-over-year.

現在，我將轉到第 17 張投影片，查看我們對 2024 年展望的評論，以及一些幫助您思考 2025 年的初步評論。如前所述，我們看到外匯波動的不利影響，導致我們第三季業績成長遭遇約 2.4% 的阻力，我們預期這種阻力將持續到第四季。考慮到外匯對第三季度的影響以及預計延續到第四季度的影響，我們現在預計收入範圍為 8.405 億美元至 8.465 億美元，或同比增長約 21% 至 22%。

In terms of margin, we now expect our adjusted EBITDA margin to range from 39.5% to 40% with a higher expectation due to both the positive margin in our Q3 results, and our focus on margin optimization and cost efficiencies. Adjusted earnings per common share are now expected in a range of $3.09 to $3.15 or 10% to 12% as we benefit from a lower effective tax rate and higher-than-expected margin. This updated range considers our year-to-date results and an overall adjusted tax rate of approximately 5% for the full year.

在利潤率方面，我們現在預計調整後的 EBITDA 利潤率將在 39.5% 至 40% 之間，由於第三季業績的正利潤率以及我們對利潤率優化和成本效率的關注，預期利潤率會更高。由於我們受益於較低的有效稅率和高於預期的利潤率，預計調整後每股普通股收益在 3.09 美元至 3.15 美元之間，或增長 10% 至 12%。此更新後的範圍考慮了我們今年迄今為止的業績以及全年約 5% 的總體調整稅率。

In terms of the segments, we now expect our Merchant Acquiring segment to be in the high single to low double digits, and we still expect our Payments Puerto Rico segment to be in the mid-single-digit growth range. For Payments Latin America, we now expect growth in the loan 60s as a result of the foreign currency impact to our Q3 results and our expectations for a similar headwind in the fourth quarter.

就分部而言，我們現在預期商家收單分部將實現高個位數至低兩位數的成長，我們仍預期波多黎各支付分部將實現中等個位數的成長。對於拉丁美洲支付業務，由於外匯對我們第三季業績的影響以及我們預計第四季度將出現類似的逆風，我們現在預計貸款將成長 60%。

We expect Business Solutions revenue growth in the mid-single digits for the full year. All of our ranges for the remainder of the year include the impact of the 2-month contribution from the Grandata acquisition.

我們預計全年商業解決方案收入將以中等個位數成長。我們對今年剩餘時間的所有預期均包括了 Grandata 收購帶來的 2 個月貢獻的影響。

Turning now to 2025, as we have done historically, I will now provide a list of key items for you to consider when thinking about your financial models. Beginning with Puerto Rico, recall that as part of the renegotiation with Popular in 2022, we have provided for a 10% discount on certain MSA services and a change to the annual CPI escalator that is to begin on October of 2025.

現在展望 2025 年，正如我們過去所做的那樣，我將提供一份關鍵事項清單，供您在思考財務模型時考慮。從波多黎各開始，回想一下，作為 2022 年與 Popular 重新談判的一部分，我們為某些 MSA 服務提供了 10% 的折扣，並對將於 2025 年 10 月開始的年度 CPI 調整進行了更改。

We estimate the impact of this discount will represent a headwind of approximately $18 million on an annualized basis once affected. You will see the impact of this discount to revenue beginning in October 2025 with full impact in 2026, mostly in our business solutions segment revenue and to a lesser extent, our Payments Puerto Rico segment. In order to offset the impact of the discount, as Mac mentioned, we are committed to executing on cost efficiencies across our business lines that will offset any impact to EBITDA from this reduced revenue.

我們估計，一旦受到影響，這項折扣的影響將按年率計算造成約 1800 萬美元的逆風。您將從 2025 年 10 月開始看到此折扣對收入的影響，並在 2026 年全面產生影響，主要影響到我們的業務解決方案部門收入，其次是影響到我們的波多黎各支付部門。正如 Mac 所說，為了抵銷折扣的影響，我們致力於提高整個業務線的成本效率，以抵銷收入減少對 EBITDA 的影響。

These efforts are already underway and some have already started to have an impact on our overall margin. But most of these initiatives will have more of an impact in the second half of 2025 and into 2026 when the Popular discount takes effect. With this, you should expect to see some positive upward trend in margins as 2025 progresses the step back down in the first quarter when the discount is applied.

這些努力已經在進行中，有些已經開始對我們的整體利潤產生影響。但其中大多數措施將在 2025 年下半年和 2026 年大眾折扣生效時產生更大影響。因此，您應該可以看到，隨著 2025 年的到來，利潤率將出現一些積極的上升趨勢，而當在第一季實施折扣時，利潤率將出現回落。

This effort has identified efficiencies above and beyond the popular discount, which gives us comfort that even as we execute on our organic growth strategy in LatAm, we believe we can maintain margins in a similar range to 2024 for the coming years. Lastly, the CPI index for September was announced earlier this month and was 2.4%.

這項努力已確定了超出流行折扣的效率，這讓我們感到欣慰，即使我們在拉丁美洲執行有機成長策略，我們相信未來幾年我們的利潤率仍能維持在與 2024 年相似的範圍內。最後，本月初公佈的9月CPI指數為2.4%。

As a reminder, our MSA with Banco Popular caps are annually increase to 1.5%, and our ATH processing agreement caps our annual increase to 5%. The mechanics of the CPI escalator changed again in October 2025, allowing for an increase of CPI above 2%, up to a maximum of 2%.

提醒一下，我們與 Banco Popular 的 MSA 上限每年增加 1.5%，而我們的 ATH 處理協議將我們的年度增幅限制在 5%。2025年10月，CPI上漲機制再次發生變化，允許CPI漲幅超過2%，最高可達2%。

Moving on to our LatAm Payments & Solutions segment. Revenue in 2025 will benefit from the contribution of the acquisition we just closed, and we are happy to say that we are beginning to see progress in Sinqia that should lead to an acceleration in top line growth and margin expansion in Brazil. However, we are expecting headwinds in LatAm related to client attrition, some of which was known like [Mercado Libre], as we now expect their credit migration to finalize early in 2025 as well as other attrition now expected to come from clients that we have not previously discussed.

接下來是我們的拉丁美洲支付和解決方案部分。2025 年的營收將受益於我們剛完成的收購的貢獻，我們很高興地說，我們開始看到 Sinqia 取得進展，這將加速巴西的營收成長和利潤率擴大。然而，我們預計拉美地區將出現與客戶流失相關的阻力，其中一些是眾所周知的（例如 [Mercado Libre]），因為我們現在預計他們的信用遷移將在 2025 年初完成，而且現在預計其他客戶流失將來自我們之前沒有討論過的客戶。

We expect this client churn will be mostly offset by the contribution from the M&A transaction. So at a high level and considering the multiple factors at work, on a constant currency basis, we are optimistic that our LatAm segment can grow low double digits for 2025, including the effect of M&A.

我們預計，客戶流失的大部分將被併購交易的貢獻所抵銷。因此，從高層次考慮並考慮到多種因素，在固定匯率基礎上，我們對拉美地區業務到 2025 年可以實現低兩位數增長感到樂觀，其中包括併購的影響。

In summary, we are pleased with our results thus far in 2024 and we believe Evertec is well positioned for growth in 2025 and beyond. We continue to be excited by the long-term opportunity in both Brazil and the rest of LatAm and we remain focused on maximizing margins while also growing the business. We look forward to updating you on our progress in early 2025, and hope to see some of you at conferences over the next few months.

總而言之，我們對 2024 年迄今的表現感到滿意，並相信 Evertec 在 2025 年及以後的成長勢頭良好。我們繼續對巴西和拉丁美洲其他地區的長期機會感到興奮，我們將繼續專注於最大化利潤，同時發展業務。我們期待在 2025 年初向你們通報我們的進展，並希望在接下來的幾個月的會議上見到你們。

Operator, please go ahead and open the line for questions.

接線員，請繼續，並打開問答線。

(Operator Instructions)

（操作員指令）

Nate Svensson, Deutsche Bank.

德意志銀行的 Nate Svensson。

Hi guys. Thanks for the question. I wanted to start with acquiring. Growth was obviously really strong in the quarter at 12%, and I know you called out sort of higher volumes and spreads in addition to pricing initiatives driving that. So maybe a two-parter here. So first, on pricing, I know you talked about some of those pricing initiatives starting in 3Q and we'll lap them in 4Q. But just wondering how those conversations have gone? And kind of how we should think about pricing power you have across that business moving forward?

嗨，大家好。謝謝你的提問。我想從收購開始。本季的成長顯然非常強勁，達到 12%，我知道您提到了除了定價舉措之外，銷量和利差的增加也推動了這一增長。因此這裡也許可以分成兩個部分。首先，關於定價，我知道您談到了從第三季開始的一些定價舉措，我們將在第四季度實施這些舉措。但只是想知道這些對話進展如何？我們該如何看待您未來在該業務中擁有的定價權？

And then the second part, we've heard some other players in the payments ecosystem point out a bit of an acceleration in volumes in October. So hoping you could give an update on the trends you've seen quarter-to-date, both in acquiring and maybe across the rest of your business and how that plays into your outlook for the rest of the year.

然後是第二部分，我們聽到支付生態系統中的一些其他參與者指出十月份的交易量有所加速。因此，希望您能更新本季迄今的趨勢，包括在收購以及其他業務方面，以及這對您對今年剩餘時間的展望有何影響。

Sure thing. This is Joaquin. So I'll start with the last part of the question in terms of trends in October. From our perspective, we're seeing volumes consistent with what we saw in the previous quarter. We aren't really seeing that type of acceleration.

當然可以。這是華金。因此，我將從問題的最後一部分開始，討論十月份的趨勢。從我們的角度來看，我們看到的交易量與上一季的情況一致。我們實際上並沒有看到這種加速。

From a pricing perspective, look, these are pricing initiatives that, as we start on the call, some have to do with, let's say, specific contracts that are coming up. that have been, let's say, a couple of years contracted under a certain price, and that has given us the ability to improve pricing on a go-forward basis. In other cases, it's been more pervasive in terms of a specific segment. And that's something that we kind of do strategically every so often. We're continuously looking at this.

從定價角度來看，這些都是定價舉措，正如我們在電話會議開始時所說，其中一些與即將簽訂的具體合約有關。比如說，我們已經以某個價格簽訂了幾年的合同，這使我們能夠在未來改善定價。在其他情況下，它在特定領域中更為普遍。這是我們時常採取的策略性舉措。我們持續關注此事。

But given that these were, let's say, impacting a bus, portion of the portfolio, we're going out that some of this will certainly anniversary as we get into Q4. So we won't have the same type of tailwind that we've had the last couple of quarters.

但考慮到這些影響了公司的一部分投資組合，我們可以預測，進入第四季度後，其中一些肯定會改變。因此，我們不會再擁有像過去幾季那樣的順風。

Got it. Understood. And then for a follow-up, maybe a couple of things on LatAm as we look into next year. So I guess maybe first, a little more color on the Grandata acquisition. So maybe how that deal come about? Sort of what products or services do they offer? And how do you see that fitting in with your existing solutions? And I know you mentioned sort of a benefit to revenue in '25 and then offset the client attrition. So some more color there would be helpful.

知道了。明白了。接下來是後續內容，我們可能會展望明年關於拉丁美洲的一些事情。因此我想首先，我們來稍微詳細地介紹一下 Grandata 收購的情況。那麼這筆交易是如何達成的呢？他們提供什麼產品或服務？您認為這與您現有的解決方案有何契合之處？我知道您提到了 25 年的收入收益，從而抵消了客戶流失。因此，增加一些顏色將會很有幫助。

And then I guess the second part on Lat Am, I think it's probably the second call now I think Mac last quarter had talked about an acceleration in Sinqia and then Joaquin, you just mentioned that in your prepared remarks as well. So maybe more color on what you're seeing under the hood at Sinqia that gives you confidence that we're going to see an acceleration in that portion of the business leaving aside any of the FX impacts that you had called out?

然後我想第二部分是關於拉丁美洲的，我想現在可能是第二次通話，我認為 Mac 上個季度談到了 Sinqia 的加速，然後是 Joaquin，你剛才在準備好的發言中也提到了這一點。因此，您是否可以更詳細地了解 Sinqia 的內部情況，讓您有信心，我們將看到該部分業務加速發展，而不受您所指出的外匯影響？

Sure. This is Mac. So first, a little bit about Grandata. So as you know, we brought in Alberta about 1.5 years ago, and he's been very active in building up the pipeline for LatAm. Grandata is one look at behavioral data from the telcos to help some of the big fintechs make credit decisions, when they issue cards.

當然。這是 Mac。首先，簡單介紹一下 Grandata。如你所知，我們大約一年半前將阿爾伯塔省引入，他一直積極地為拉美地區建造渠道。Grandata 透過查看電信公司的行為數據，幫助一些大型金融科技公司在發卡時做出信貸決策。

So they're big in Mexico right now, they're moving into Brazil. And as we said earlier, Mercado Libre and one of the biggest neobanks in the region is a significant customer. So we're incredibly excited about the customers that they have. But we're also incredibly excited they're moving into Brazil, and we can roll that out across our other customers, particularly on the issuing side. It complements our issuing platform and our product set.

他們現在在墨西哥很有影響力，並且正在進軍巴西。正如我們之前所說，Mercado Libre 和該地區最大的新銀行之一是我們的重要客戶。因此，我們對他們的客戶感到非常興奮。但我們也非常高興他們正在進軍巴西，我們可以將這項業務推廣到我們的其他客戶，特別是在發行方面。它補充了我們的發行平台和產品系列。

As it relates to Sinqia, we talked about, again, in the prepared remarks, three things we've really focused on. One is repricing some of the contracts. So we're using some of the same discipline that we've done here with the Puerto Rican business and maybe that we talked about a little bit earlier and taking a look at how we can reprice some of the ink contracts. So we have some legacy contracts from acquisitions that we're making more contemporary. We're bringing them more to market. We're actually making them more variable so that as volumes grow, we grow with the volumes.

就 Sinqia 而言，我們在準備好的發言中再次討論了我們真正關注的三件事。一是部分合約重新定價。因此，我們採用了與波多黎各業務相同的一些原則，也許我們之前討論過這一點，並研究如何對一些油墨合約進行重新定價。因此，我們在收購過程中保留了一些遺留的合同，我們正在使它們更加現代化。我們正在將更多產品推向市場。我們實際上正在使它們變得更加多變，以便隨著數量的增長，我們也能隨之成長。

The second thing is we're modernizing the platforms. So as we modernize those platforms, we're able to charge new pricing and increase the pricing because of those new features, those two capabilities. And then the third is on the market piece. I mean, we do want to increase margins. We talked about some cost-cutting that we're doing in order to offset the Popular discount. We're also having an initiative with Sinqia to increase those margins as well.

第二件事是我們正在對平台進行現代化改造。因此，隨著我們對這些平台進行現代化改造，我們能夠收取新的價格，並根據這些新功能、這兩項能力提高價格。第三個是關於市場的部分。我的意思是，我們確實想提高利潤率。我們討論了為了抵銷大眾折扣而採取的一些成本削減措施。我們也與 Sinqia 合作，以提高這些利潤率。

So when you look at all of these efforts across the acquisition, the work we've done with Sinqia, and then the organic business, we feel good about low double-digit growth in LatAm next year.

因此，當您回顧我們在收購過程中所做的所有這些努力、與 Sinqia 合作開展的工作以及有機業務時，我們對明年拉美地區實現低兩位數增長感到樂觀。

I appreciate it. Thanks.

我很感激。謝謝。

Chris Kennedy, William Blair.

克里斯甘迺迪、威廉布萊爾。

Good afternoon. Could you just give a little bit more color on some of the cost initiatives that you're undergoing for -- to offset the MSA contract change?

午安.您能否詳細介紹一下為抵銷 MSA 合約變更而採取的一些成本措施？

Yes. So this is Mac, Chris. So as you know, when we cut the deal in 2022, part of the extensions, we were extending three contracts, right? And one of those was the MSA that's primarily the business solutions segment. In order to do that, that would have expired at the end of '25.

是的。這就是麥克，克里斯。所以如你所知，當我們在 2022 年達成協議時，作為延期的一部分，我們延長了三份合同，對嗎？其中之一就是 MSA，它主要是業務解決方案部分。為了做到這一點，該期限將於 25 年底到期。

To get the three-year extension, we committed to a 10% discount that would take effect Q4 of next year. So in anticipation of that, we've gone through a very vigorous exercise to identify where we can cut costs to more than offset that. So this will offset that, which is about $18 million, which will still impact top line revenue.

為了獲得三年的延期，我們承諾提供 10% 的折扣，將於明年第四季生效。因此，為了應對這種情況，我們進行了非常積極的努力來確定可以在哪些方面削減成本，以彌補這一損失。因此，這將抵消約 1800 萬美元的損失，但仍會影響營業收入。

So you'll get a quarter of that next year, and then you'll get a full year in 2026, but we're going to offset the EBITDA impact. more than offset it so that not only can we cover it, but so that we can guarantee our margins into the foreseeable future even as we grow LatAm.

因此，您明年將獲得其中的四分之一，然後在 2026 年將獲得全年的收益，但我們將抵消 EBITDA 的影響。這樣我們不僅可以彌補這一損失，而且可以在可預見的未來保證我們的利潤，即使我們在拉丁美洲地區發展。

We're not being specific on what those are because they may be cuts to vendors, there may be cuts that we are not ready to announce but we have identified exactly what they are. We have calendarized those, and we have a high confidence level in our ability to execute those.

我們沒有具體說明這些削減是什麼，因為它們可能是對供應商的削減，也可能是一些我們尚未準備好宣布的削減，但我們已經確定了它們到底是什麼。我們已經將這些事項列入日程，我們對執行這些事項的能力非常有信心。

Okay, great. Thank you for that. And I know you're not breaking out Sinqia anymore, but you talked about revenue accelerating next year. Is there any way to frame the type of acceleration? Thanks for taking the questions.

好的，太好了。謝謝你。我知道您不再單獨推出 Sinqia，但是您談到了明年收入的加速成長。有沒有什麼方法可以確定加速度的類型？感謝您回答這些問題。

Sure. Yes. So I mean as with every acquisition, we don't break it out. I mean, we manage that as a segment and LatAm. As you know, it decelerated as we closed on the transaction and as we moved into this year. We've been very focused. Claudia is now managing that business.

當然。是的。所以我的意思是，就像每次收購一樣，我們不會將其分開。我的意思是，我們將其作為一個部分和拉美部分進行管理。如你所知，隨著我們完成交易並進入今年，速度開始減慢。我們一直都非常專注。克勞迪婭現在負責管理這項業務。

We talked about that a couple of quarters ago. And we put these initiatives in place just to execute better and to deliver on some key initiatives that will grow the company. We're not breaking that out again separately, but we are confident that revenue will accelerate and that margins will expand as well.

我們幾個季度前就討論過這個問題。我們採取這些措施只是為了更好地執行並實現一些有助於公司發展的關鍵措施。我們不會再次單獨列出這些內容，但我們相信收入將加速成長並且利潤率也將擴大。

Great. Thanks for taking the questions.

偉大的。感謝您回答這些問題。

Thanks.

謝謝。

Vasu Govil, KVW.

Vasu Govil，KVW。

Hi, thanks for taking my question. Just following up on the Sinqia question, Mac. Purely, like the three initiatives that you had laid out are having positive effects on Sinqia. Just curious, compared to what you had planned for at the beginning of the year? Do you think things are trending better or worse even though they're improving? Just trying to get a sense for if there's upside to what you had sort of been for the year.

你好，謝謝你回答我的問題。只是跟進 Sinqia 的問題，Mac。純粹地，就像您列出的三個舉措對 Sinqia 產生了積極的影響。只是好奇，與您年初的計劃相比，情況如何？您認為儘管情況正在改善，但趨勢是變好還是變壞了？只是想了解你今年的表現是否有改善。

You mean for '25 or for '24?

你是指 '25 還是 '24？

I'm sorry, '24 and '25, you would basically lead out of plan and then you were expecting to get some benefits in '24 and then potentially more in '25. Just curious if things are going better than expected or in line with expected.

對不起，'24 和 '25，你基本上會超出計劃，然後你期望在 '24 年獲得一些好處，然後在 '25 年可能獲得更多好處。只是好奇事情進展是否比預期的更好或符合預期。

Yes. So what I would say -- I mean, two pieces to that question. One is, I would say, the original thesis of the acquisition, we're incredibly excited about, right? We're in the most important market in Latin America, with a great asset that's installed at 7 of the 10 biggest banks and many of the financial institutions. And they want to do more business with us. If we can modernize our products, continue to deliver new services, we're one of the largest software providers in that space.

是的。所以我想說的是──我的意思是，這個問題有兩面。一是我想說，我們對這次收購的最初論點感到非常興奮，對吧？我們的市場位於拉丁美洲最重要的地區，我們的寶貴資產被安裝於拉丁美洲十大銀行中的七家以及眾多金融機構。他們希望與我們開展更多生意。如果我們能夠使我們的產品現代化，繼續提供新的服務，我們就是該領域最大的軟體供應商之一。

As we moved in -- as we acquired the company, we knew that we would want to operate it a bit differently so that we could manage pricing like we do at Evertec so that we could make investments on delivering and modernizing the platforms like we've done here. And we are also very, very focused on margin. So we are seeing the effects of that now, Vasu. We plan to see that in Q4, and we think that will have a meaningful impact next year.

當我們收購這家公司時，我們知道我們希望以略有不同的方式運營它，以便我們能夠像在 Evertec 那樣管理定價，以便我們能夠像在這裡所做的那樣對平台的交付和現代化進行投資。我們也非常非常注重利潤。所以我們現在看到了它的影響，Vasu。我們計劃在第四季度看到這一點，我們認為這將在明年產生有意義的影響。

So we're very excited about the impact of the progress of these initiatives and the impact we're making. We talked earlier about GRC is one we worked with to develop that new solution has signed a multiyear contract to extend using new solution, and we have a pipeline of other customers that actually want to move to the new platform as well.

因此，我們對這些措施的進展以及我們產生的影響感到非常興奮。我們之前談到過，GRC 是我們合作開發新解決方案的公司之一，已簽署了一份多年期合約以延長使用新解決方案，而且我們還有其他客戶也希望遷移到新平台。

So we're now prioritizing other platforms that we need to make investments in so that we can continue to grow the role with acts of customers that use our platforms, but also increase pricing on the existing customers.

因此，我們現在優先考慮需要投資的其他平台，以便我們可以透過使用我們平台的客戶的行為來繼續發展這一角色，同時也提高現有客戶的定價。

That's helpful color. And then I think, Joaquin, you called out lower issuing services as sort of a drag in the payment Puerto Rico business. Can you elaborate a little bit on that? And was that a onetime or is that something that sort of stays with us here in the near term and into early next year?

這是很有幫助的顏色。然後我認為，華金，您指出發行服務減少對波多黎各支付業務造成了一定拖累。能詳細闡述嗎？這是一次性的事情嗎，還是會在短期內持續到明年年初？

As -- so as you -- as we said in the past, we have some of the health care providers issuing cards to the healthcare customers and that's a way for them to issue benefits. Every so often, they kind of go back and look at some of the inactive cards and do sort of a cleanup. So we're seeing the effects of that, let's say, purge. This isn't something that they do necessarily every quarter, but obviously, now they have to kind of rebuild into the same type of volume. So we will see some headwind, right, as they kind of build that back up, at least when we compare it against the previous year.

正如我們過去所說的那樣，我們有一些醫療保健提供者向醫療保健客戶發行卡，這是他們發放福利的一種方式。每隔一段時間，他們就會回頭查看一些不活躍的卡片並進行清潔。所以我們看到了這種做法的效果，可以說是清除。他們不一定會每個季度都這樣做，但顯然現在他們必須重建到相同類型的規模。因此，我們會看到一些阻力，因為它們會重新建立起來，至少與前一年相比是這樣的。

Thank you very much.

非常感謝。

Thanks Vasu.

謝謝 Vasu。

Jamie Friedman, Susquehanna.

薩斯奎哈納的傑米·弗里德曼。

Hey guys, a nice job with the quarter and especially the margins. I wanted to ask, with regard to the MSA for next year that you're calling out, is that -- because my understanding was that was a multiyear agreement. And if that's the case, was this evolution embedded in the previous agreement? Or is this something new?

嘿夥計們，本季的工作做得很好，特別是利潤率。我想問一下，關於您所提到的明年的 MSA，因為我的理解是這是一項多年期協議。如果確實如此，那麼這種演變是否已嵌入先前的協議中？還是這是新事物？

This is Mac. So I'll start, and then I'll hand it to Joaquin. So yes, as part of -- so again, there were three agreements that we extended in 2022. One was relating primarily to ATH. The other is to MAB, the acquiring business with the bank. And then the third was Business Solutions or the MSA, which has core banking, printing, everything else that we do for the bank.

這是 Mac。那我先開始，然後我會把它交給 Joaquin。是的，作為其中的一部分 — — 再次重申，我們在 2022 年延長了三項協議。其中一個主要與 ATH 相關。另一項是與銀行進行收單業務的MAB。第三個是商業解決方案或 MSA，它包括核心銀行業務、印刷以及我們為銀行所做的一切其他業務。

So when we did the contract -- those were all going to end at the end of 2025, right? And as we extended each of them, we looked at individual terms to make it a more competitive offering with the bank and looked at them individually. In order to get to at the end of 2025, which is when the original contract would expire for the three-year extension to give them a 10% discount. So that was part of the deal that we did in 2022.

所以當我們簽訂合約時，這些合約都將在 2025 年底結束，對嗎？在擴展每項服務時，我們會考慮各個條款，以向銀行提供更具競爭力的服務，並對每項服務進行單獨審查。為了在 2025 年底，也就是原始合約到期時，延長三年並給予他們 10% 的折扣。所以這是我們在 2022 年達成的交易的一部分。

As we said earlier, we now have a cost initiative that's already identified, calendarized, and underway to more than offset the EBITDA impact of that. So you will still see the revenue impact, which is about $18 million. You'll see about a fourth of that next year in the last quarter. And then you'll see it fully annualized in 2026, but we have cost efficiencies in place or that we're executing that will more than offset that.

正如我們之前所說，我們現在已經確定、安排並實施了一項成本計劃，以抵消 EBITDA 的影響。因此你仍然會看到收入影響，約 1800 萬美元。明年最後一個季度，你會看到其中的四分之一。然後你會看到它在 2026 年完全年化，但我們已經實施了成本效率，或者正在執行的措施將足以抵消這一點。

So Jamie, that will eliminate that $18 million impact, but we're actually cutting more so that we can ensure that we have about 40% margins for the foreseeable future even as we grow outside of LatAm because -- I mean, outside of Puerto Rico because as you know, LatAm has lower margins. So we're trying to take measures so that we can maintain that margin even as we have the organic growth in LatAm.

所以傑米，這將消除 1800 萬美元的影響，但實際上我們削減的更多，以便我們能夠確保在可預見的未來我們有大約 40% 的利潤率，即使我們在拉丁美洲以外的地區發展——我的意思是，在波多黎各以外，因為如你所知，拉丁美洲的利潤率較低。因此，我們正在嘗試採取措施，以便即使我們在拉美地區實現有機成長，我們也能保持這一利潤率。

Yes. Okay. That makes sense. And then in terms of the objective, Mac, to start to accelerate Sinqia and expand the margins, what is the pricing opportunity within Sinqia? Is the intention for the company to set price, meaning like raise prices?

是的。好的。這很有道理。那麼就目標而言，Mac，開始加速 Sinqia 並擴大利潤率，Sinqia 的定價機會是什麼？公司定價的意圖是提高價格嗎？

Yes. So Jamie, it's a couple of things. One is some of the contracts are very old and they were not contemporary in their pricing. So the pricing was outdated. Even when those contracts would extend from year to year to year, they hadn't gone in and renegotiated those. They had added new features as the market had changed for those products. So given that some of these contracts are old, there's just a natural opportunity to increase pricing.

是的。所以傑米，有幾件事。一是一些合約已經非常老舊，其定價也已經不合時宜。因此這個定價已經過時了。即使這些合約會逐年延長，他們也沒有重新進行談判。隨著這些產品的市場變化，他們也加入了新的功能。因此，考慮到其中一些合約已經過期，自然就有提高價格的機會。

Secondly, as you modernize the platform, which is a big initiative for that business, their newer platforms with better features, where we'll use that as an opportunity to increase pricing as well. And then the third piece is, as we do these new contracts and new pricing arrangements, we're creating an ability for us to grow with the volume like we do with Merchant Acquiring and some of our other businesses. So we're really looking at across all of the businesses and all the contracts, how can we have more contemporary contracts to grow as the volumes grow.

其次，隨著平台的現代化，這對企業來說是一項重大舉措，他們的新平台具有更好的功能，我們也將利用這個機會來提高價格。第三部分是，當我們簽訂這些新合約和新的定價安排時，我們正在創造一種能力，使我們能夠隨著業務量的增加而成長，就像我們在商家收單和我們的其他一些業務中所做的那樣。因此，我們確實在關注所有業務和所有合同，看看我們如何隨著業務量的增加而獲得更多的當代合約。

Got it makes sense. Thank you, Mac.

明白了，有道理。謝謝你，麥克。

Thanks Jamie.

謝謝傑米。

John Davis, Raymond James.

約翰戴維斯、雷蒙詹姆斯。

Good afternoon guys. Joaquin, I just wanted to circle back on the rev guide. Appreciate you have FX headwinds. But just curious, is the change in the guide, just the FX headwinds netting off some benefit from Grandata? And any color you can provide on the Grandata contribution for both revenue and earnings in the fourth quarter.

大家下午好。華金，我只是想重新回到轉速指南。感謝您遇到了外匯逆風。但只是好奇，指南的變化是否只是外匯逆風從 Grandata 中獲得了部分利益？您能否提供有關 Grandata 對第四季度收入和收益的貢獻的任何細節。

Yeah. I mean most of the impact to the guide to your point, John, is frac currency. So that's certainly the biggest change. and it does incorporate the two months have Grandata, as we said in the prepared remarks, which obviously are not going to be very significant. This is a talking deal. And that's -- I mean, those are really the two moving pieces.

是的。我的意思是，約翰，對你的觀點影響最大的是分數貨幣。所以這無疑是最大的改變。而且它確實包含了兩個月的 Grandata，正如我們在準備好的評論中所說，這顯然不會非常重要。這是一項正在談判的交易。這就是——我的意思是，這確實是兩個活動的部分。

John, what I would say is, if you look at the data, most of the Latin American markets, their currencies have devalued against the US dollar. Part of it is people are moving to the dollar, right? So Brazilian real over the last year is down about 13%, but the Mexican peso is down about 12%. Chile is down about 10%, and Colombia is down about 9%.

約翰，我想說的是，如果你看看數據，你會發現大多數拉丁美洲市場的貨幣兌美元都貶值了。部分原因是人們正在轉向美元，對嗎？因此，巴西雷亞爾在過去一年中下跌了約 13%，而墨西哥比索則下跌了約 12%。智利下跌約 10%，哥倫比亞下跌約 9%。

So you see everybody's moving to US dollar. So it's putting pressure on currencies across the globe, particularly in Latin America, which is creating a bit of a headwind for us.

所以你會看到每個人都在轉向美元。因此，這給全球貨幣帶來了壓力，特別是拉丁美洲的貨幣，這對我們來說是一個阻力。

To be clear, right, the way we constructed that guide was we have the impact that's flowing through our actual numbers, which we called out as part of the call. But we've also assume that, that's going to persist into Q4. And so we've kind of impacted Q4 for the same effect or a similar effect that we had in Q3.

要明確的是，我們制定指南的方式是，我們會根據實際數字來產生影響，我們在通話中將其作為一部分提出來。但我們也假設這種情況將持續到第四季。因此，我們對第四季的影響與對第三季的影響相同或類似。

Okay. So that's another way on an organic and FX-adjusted basis. There's no change to the revenue guide. It's just what's going on with currency, offset a little bit by some small contribution from Grandata. I guess I'm trying to figure out if there is anything else?

好的。因此，這是基於有機和外匯調整的另一種方式。收入指南沒有變化。這只是貨幣的變化，被 Grandata 的一些小額貢獻稍微抵消了。我想我想知道是否還有其他事情？

That is correct. You right on.

正確。你說得對。

Okay. Perfect. And then, Mac, I think you called out a little bit of client churn in the LatAm business that was new. I mean not my cutter, but just can you expand on that a little bit? What's going on? Is it older products? Or just like what's driving that attrition? And what potentially can you do to help minimize it?

好的。完美的。然後，麥克，我想你提到了拉丁美洲業務中一些新的客戶流失問題。我的意思是不是我的切割機，但你能稍微詳細說明一下嗎？這是怎麼回事？是老產品嗎？還是什麼導致了這種人員流失？你能做些什麼來幫助盡量減少這種情況呢？

Yeah. Look, I mean, attrition has been a focus for the company for the last decade since I've been here. We've had some anomalies this year. When we called out at the beginning of the year with Mercado Libre. We have some others. One is an example of a cost Rigon regulators taking over one of our customers.

是的。我的意思是，自從我來到這裡，近十年來，人員流失一直是公司關注的重點。今年我們遇到了一些異常現象。當我們在年初推出 Mercado Libre 時。我們還有其他一些。其中一個例子就是成本 Rigon 監管機構接管了我們的一個客戶。

So we think these are anomalies. We don't think it persists in the future, but it is something that will create a headwind going into next year. But the good news is with Sinqia reaccelerating and with the Grandata acquisition, that segment should still grow double digit -- low double digit next year.

因此我們認為這些都是異常現象。我們認為這種情況不會在未來持續下去，但它將對明年造成不利影響。但好消息是，隨著 Sinqia 的重新加速和對 Grandata 的收購，該部門明年仍應保持兩位數 - 低兩位數的增長。

Okay. And then one last quick one, if I can. Just on capital allocation, Joaquin, I think you said you had $18 million left on the buyback that expires at the end of '25. Should we expect that you kind of use that ratably over the course? Or is there a chance that that gets extended you don't lease it all by then?

好的。如果可以的話，我還有最後一個快速問題。僅就資本配置而言，Joaquin，我想您說過您在 25 年底到期的回購中還剩下 1800 萬美元。我們是否應該期望您在課程中按比例使用它？或者是否有可能延長租期，到那時您就不會把所有房子都租出去了？

Honestly what you guys have done year-to-date from a buyback perspective? And historically, what you've done, it seems like you would imply a bigger buyback over the next, call five quarters than you historically done. Just any color there on how you think about leverage, buyback, M&A in the context of what you have left in the buyback.

說實話，從回購的角度來看，今年迄今為止你們做了什麼？從歷史上看，您所做的似乎意味著您將在接下來的五個季度中進行比以往更大規模的回購。關於您如何看待槓桿、回購、併購以及回購中剩餘的資金，您可以參考這裡。

I mean, I think it's consistent with what we've done in the past, John. I mean we've been opportunity. We bought $12 million this quarter because we think the price was attractive. We'll certainly continue to look at repurchasing stock. It's certainly one of the things that we focus on from our capital deployment strategy when we're not doing M&A.

我的意思是，我認為這與我們過去所做的一致，約翰。我的意思是我們有機會。我們本季購買了 1200 萬美元，因為我們認為價格很有吸引力。我們肯定會繼續考慮回購股票。當我們不進行併購時，這肯定是我們的資本配置策略的重點之一。

We're in a great place in terms of our leverage on our balance sheet. So it's certainly something that we're continuously thinking about. But we'll continue to be opportunistic. We're not going to necessarily go into a specific, let's say, buyback commitment or anything at this point.

就資產負債表的槓桿比率而言，我們處於良好的狀態。所以這確實是我們一直在思考的事情。但我們將繼續抓住機會。我們現在不一定會採取具體的措施，例如回購承諾或任何其他措施。

Okay. Fair enough. Thanks, guys.

好的。很公平。謝謝大家。

James Faucette, Morgan Stanley.

摩根士丹利的詹姆斯·福塞特（James Faucette）。

Hi. Thank you for taking my question. This is Shefali Tamaskar on for James. You mentioned last quarter that you were seeing some softness in the software market in Brazil. I was wondering if you could give any update on that trend from what you've seen this quarter and through October?

你好。感謝您回答我的問題。這是詹姆斯的 Shefali Tamaskar。您在上個季度提到，您發現巴西的軟體市場有些疲軟。我想知道您是否可以根據本季和整個十月看到的情況對此趨勢做出更新？

Hi, this is Joaquin. So no, no real change. We do continue to see some softness in the market. I think that the fact that [the AI] have is where it's at. [Canal] is another factor as to why that, let's say, underlying softness is there from some of the big players that we're spending in technology. So I think this is something that we need to continue to monitor. But I think the main point is, even though that's the case, we continue to see Sinqia reaccelerating top line. And as we said, we're comfortable that next year, we're going to get to low double digits for the LatAm segment

你好，我是 Joaquin。所以沒有，沒有真正的改變。我們確實繼續看到市場有些疲軟。我認為，事實就是如此。 [Canal] 是另一個導致我們在科技領域投入的大公司存在潛在疲軟現象的另一個因素。所以我認為這是我們需要繼續監測的事情。但我認為主要的一點是，儘管情況如此，我們仍然看到辛恰亞的營收重新加速成長。正如我們所說的，我們確信明年拉丁美洲市場將實現兩位數的低成長

Okay. Great. And actually, kind of similar on that point. Wanted to see great to hear the confidence on reaccelerating growth in Sinqia. I wanted to see how much visibility you have into this in terms of what metrics you might be tracking like pipeline of clients, anything else that's sort of driving this confidence into next year?

好的。偉大的。實際上，在這一點上有點類似。很高興聽到大家對新洽重新加速成長的信心。我想了解您對此有多少了解，就您可能追蹤的指標而言，例如客戶管道，還有其他什麼因素可以推動您對明年的信心？

I can give you some color. I mean, I think Mac specifically has mentioned these initiatives since the beginning of the year in our Q4 call. So these are very specific projects that we've now been working on for over six months. We have 18 that's managing this PMO in the different initiatives with our clients. We have tracking lists. We have steering communities. So these are very strategic initiatives that we're very confident given the visibility that we have today as to where they're going to be that are going to be a contributor into next year.

我可以給你一些顏色。我的意思是，我認為 Mac 自今年年初以來在我們的第四季電話會議上特別提到了這些舉措。這些都是非常具體的項目，我們已經為此工作了六個多月。我們有 18 位員工負責管理該 PMO，與客戶共同進行不同的專案。我們有跟蹤清單。我們有指導社區。因此，這些都是非常具有戰略意義的舉措，我們非常有信心，因為我們今天已經清楚地知道它們將會走向何處，並將為明年的發展做出貢獻。

Yeah. And what I would say is it's exactly what you said. We're tracking this better, right? We are tracking their pipeline very closely. We know when we're getting contracts signed. We know what we need to do to get contracts signed. We know what we need to do for specific clients to increase pricing. So there's a significant level of discipline that Claudia has put in place to ensure he gets the results that he's trying to push the organization towards.

是的。我想說的是，這正是你所說的。我們正在更好地跟踪這一點，對嗎？我們正在密切追蹤他們的管道。我們知道何時簽署合約。我們知道要簽署合約需要做什麼。我們知道需要為特定客戶做些什麼才能提高價格。因此，克勞蒂亞實施了高度嚴格的紀律，以確保他能夠實現他所推動的組織所要實現的成果。

Okay, great. Thank.

好的，太好了。感謝。

This concludes our question-and-answer session. I would like to turn the conference back over to Mac Schuessler for any closing remarks.

我們的問答環節到此結束。我想將會議交還給 Mac Schuessler 來做結束語。

Again, I want to thank everyone for joining us on the call tonight and thank you for your investment in Evertec. I also want to thank my colleagues for all their hard work and for the accomplishments of this quarter. We look forward to seeing you at conferences in the future. Good night.

再次感謝大家今晚參加我們的電話會議，並感謝大家對 Evertec 的投資。我還要感謝我的同事們的辛勤工作以及本季的成就。我們期待在未來的會議上見到您。晚安。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。