
Schedule I

EVERTEC, Inc. Condensed Financial Statements

Parent Company Only

Condensed Balance Sheets


	December 31,
(Dollar amounts in thousands)	2013		2012
Assets
Current assets:
Cash	$	1,285	$	557
Prepaid expenses and other assets		11,574		6,378
Deferred tax asset		2,494		1,396

Total current assets		15,353		8,331
Investment in subsidiaries, at equity		111,931		133,325
Other long-term assets		—		2,847

Total assets	$	127,284	$	144,503

Liabilities and stockholders’ equity
Current liabilities:
Accrued liabilities	$	1,309	$	1,414

Total current liabilities		1,309		1,414
Long-term deferred tax liability, net		14,312		17,787
Other long-term liabilities		333		2,847

Total liabilities		15,954		22,048

Stockholders’ equity:
Common stock		783		728
Additional paid-in capital		80,718		52,155
Accumulated earnings		29,403		70,414
Accumulated other comprehensive loss, net of tax of $0 and $0		426		(842	)

Total stockholders’ equity		111,330		122,455

Total liabilities and stockholders’ equity	$	127,284	$	144,503


Schedule I

Condensed Statements of Income and Comprehensive Income


	Years ended December 31,
(Dollar amounts in thousands)	2013			2012			2011
Non-operating income (expenses)
Equity in (losses) earnings of subsidiaries	$	(23,668	)	$	95,382		$	28,004
Interest income		144			5			37
Other expenses		(4,780	)		(375	)		—

Total non-operating (expense) income		(28,304	)		95,012			28,041
(Loss) income before income taxes		(28,304	)		95,012			28,041
Income tax (benefit) expense		(3,684	)		17,646			3,827

Net (loss) income		(24,621	)		77,366			24,214
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments		1,268			476			(1,176	)

Total comprehensive (loss) income	$	(23,353	)	$	77,842		$	23,038

Condensed Statements of Cash Flows


	Years ended December 31,
(Dollar amounts in thousands)	2013			2012			2011
Cash flows from operating activities	$	(5,322	)	$	317,389		$	36

Cash flows from financing activities
Proceeds from initial public offering, net of offering costs of $12,567		112,432			—			—
Dividends paid		(16,390	)		(319,959	)		—
Repurchase of common stock		(75,000	)		—			—
Statutory minimum withholding taxes paid on cashless exercises of stock options		(16,851	)		—			—
Tax windfall benefits on exercises of stock options and vesting of restricted stocks		1,829			—			—
Issuance of common stock		29			450			2,641

Net cash (used in) provided by financing activities		6,049			(319,509	)		2,641

Net increase (decrease) in cash		727			(2,120	)		2,677
Cash at beginning of the period		557			2,677			—

Cash at end of the period	$	1,285		$	557		$	2,677

Supplemental disclosure of non-cash activities:
Transfer of prepaid income taxes from subsidiary	$	—		$	6,719		$	—
Liability related to unvested portion of stock options as a result of equitable adjustment (Note 14)		—			3,151			—

On both August 31, 2013 and December 1, 2013, the parent company received cash distributions from Holdings of $8.2 million and used the proceeds of such distributions to pay dividends to its stockholders. On December 18, 2013, the parent company received a dividend from Holdings of approximately $75.0 million. The proceeds from this dividend were used in the repurchase of 3,690,036 shares of its common stock.

On December 18, 2012, the parent company received a cash distribution from Holdings of approximately $50.3 million and used the proceeds of such distribution to pay a dividend to its stockholders and to pay an equitable adjustment to holders of vested options. The Board of Directors approved an equitable adjustment to stock options payable in the form of a one-time cash bonus to holders of vested options and in the case of unvested options will be paid as the options vest.

On May 9, 2012, the parent company received a cash distribution from Holdings of approximately $269.8 million and used the proceeds of such distribution to pay a dividend to its stockholders. The Board of Directors approved an equitable adjustment to stock options in order to reduce the exercise price of the outstanding stock options.