EX-99.1 2 d875276dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

EVERTEC REPORTS FOURTH-QUARTER AND FULL-YEAR 2014 RESULTS

SAN JUAN, PUERTO RICO – February 18, 2015 — EVERTEC, Inc. (NYSE: EVTC) (“EVERTEC” or the “Company”) today announced results for the fourth quarter and year ended December 31, 2014.

Fourth-Quarter 2014 Highlights

 

    Total revenue of $93.5 million; Merchant Acquiring segment and Payment Processing segment revenue each increased 5%

 

    Adjusted EBITDA of $47.5 million, representing an adjusted EBITDA margin of 50.9%

 

    Adjusted Net Income of $34.4 million, or $0.44 per diluted share

 

    Repurchased $26.2 million, or 1.2 million shares of our common stock

Full-Year 2014 Highlights

 

    Total revenue of $361.1 million; Merchant Acquiring segment revenue increased 7% and Payment Processing segment revenue increased 5%

 

    Adjusted EBITDA of $182.8 million, representing an adjusted EBITDA margin of 50.6%

 

    Adjusted Net Income of $130.0 million, or $1.65 per diluted share

Frank G. D’Angelo, Chairman of the Board and Interim Chief Executive Officer, stated “Our 2014 results were highlighted by solid performance from our payments businesses reflecting continued strong execution and secular growth in all our markets. As we look to 2015, we will execute against our business objectives and are optimistic about our growth prospects, given our leading position in the attractive markets we serve.”

Mr. D’Angelo continued, “We also look forward to Mac Schuessler joining EVERTEC as President and CEO on April 1st and beginning a new chapter under his leadership. Mac’s experience in the payments industry and in international markets will be very valuable in the execution of our corporate strategies.”

Fourth-Quarter 2014 Results

Revenue. Total revenue for the quarter ended December 31, 2014 was $93.5 million, in line with the fourth quarter of last year, impacted primarily by lower hardware and software sales.

Merchant Acquiring net revenue was $20.8 million, an increase of 5% compared with $19.8 million in the prior year. Revenue growth in the quarter was mainly driven by an increase in transaction volumes.

Payment Processing revenue was $27.7 million, an increase of 5% compared with $26.4 million in the prior year. Revenue growth in the quarter was primarily driven by an increase in our ATH debit network and POS processing transactions, and accounts on file within our card products business.

Business Solutions revenue was $45.0 million, a decrease of 5% compared with $47.3 million in the prior year. The decrease in revenue was mainly due to a $2.5 million year-over-year decline in hardware and software sales and lower revenue from IT consulting projects, partially offset by increased revenue from core banking solutions.


Adjusted EBITDA. For the quarter ended December 31, 2014, Adjusted EBITDA was $47.5 million, a decrease of 3% compared with $49.1 million in the prior year. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of total revenues) was 50.9% compared with 52.5% in the prior year. The decrease was primarily due to a decline in other income and lower dividends received from investee.

Net Income. For the quarter ended December 31, 2014, Adjusted Net Income was $34.4 million, a decrease of 3% compared with $35.4 million in the prior year. Adjusted Net Income per diluted share increased 2% to $0.44 compared with $0.43 in the prior year.

For the quarter ended December 31, 2014, GAAP Net Income was $12.5 million, or $0.16 per diluted share, compared with $20.0 million or $0.24 per diluted share in the prior year.

Full-Year 2014 Results

Revenue. Total revenue for the year ended December 31, 2014 was $361.1 million, an increase of 1% compared with $358.0 million in the prior year.

Merchant Acquiring net revenue was $79.1 million, an increase of 7% compared with $73.6 million in the prior year. Revenue growth was driven mainly by an increase in transaction volumes.

Payment Processing revenue was $105.4 million, an increase of 5% compared with $100.1 million in the prior year. Revenue growth was primarily driven by an increase in our ATH debit network and POS processing transactions and accounts on file.

Business Solutions revenue was $176.6 million, a decrease of 4% compared with $184.3 million in the prior year. The decrease in revenue was mainly due to a $10.3 million year-over-year decline in hardware and software sales, partially offset by increased revenue from core banking solutions.

Adjusted EBITDA. For the year ended December 31, 2014, Adjusted EBITDA was $182.8 million, an increase of 3% compared with $177.7 million in the prior year.

Net Income. For the year ended December 31, 2014, Adjusted Net Income was $130.0 million, an increase of 7% compared with $121.3 million in the prior year. Adjusted Net Income per diluted share increased 11% to $1.65 compared with $1.49 in the prior year.

For the year ended December 31, 2014, GAAP Net Income was $67.5 million or $0.86 per diluted share, compared with a net loss of $24.6 million or a loss of $0.31 per diluted share in the prior year.


Earnings Conference Call and Audio Webcast

The Company will host a conference call to discuss its fourth-quarter and full-year 2014 financial results today at 5:00 PM ET. Hosting the call will be Frank G. D’Angelo, Chairman of the Board and Interim Chief Executive Officer, and Juan José Román, Executive Vice President and Chief Financial Officer. The conference call can be accessed live over the phone by dialing (877) 407-3982 or for international callers by dialing (201) 493-6780. A replay will be available at 8:00 p.m. ET and can be accessed by dialing (877) 870-5176 or (858) 384-5517 for international callers; the pin number is 13599502. The replay will be available until Wednesday, February 25, 2015. The call will be webcast live from the Company’s website at www.evertecinc.com under the Investor Relations section or directly at http://ir.evertecinc.com.

About EVERTEC

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

About Non-GAAP Financial Measures

This earnings release presents EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per share information. These supplemental measures of the Company’s performance are not required by, or presented in accordance with, accounting principles generally accepted in the United States of America (“GAAP”). They are not measurements of the Company’s financial performance under GAAP and should not be considered as alternatives to total revenue, net income or any other performance measures derived in accordance with GAAP or as alternatives to cash flows from operating activities, as indicators of cash flows or as measures of the Company’s liquidity. We present EBITDA and Adjusted EBITDA because we consider them important supplemental measures of the Company’s performance and believe they are frequently used by securities analysts, investors and other interested parties to evaluate companies in our industry. In addition, the Company’s presentation of Adjusted EBITDA is consistent with the equivalent measurements contained in the Credit Agreement in testing EVERTEC Group’s compliance with covenants therein such as the senior secured leverage ratio. We use Adjusted Net Income to measure the Company’s overall profitability because it better reflects the Company’s cash flow generation by capturing the actual cash taxes paid rather than the Company’s tax expense as calculated under GAAP, and excludes the impact of the non-cash amortization and depreciation resulting from our 2010 merger involving an affiliate of Apollo Global management, LLC (the “Merger”). For more information regarding EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per share, including a quantitative reconciliation of EBITDA, Adjusted EBITDA and Adjusted Net Income to the most directly comparable GAAP financial performance measure, which is net income, see Schedule 4: Reconciliation of GAAP to Non-GAAP Operating Results in this earnings release.


Forward-Looking Statements

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

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

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


Contact

Investor Contact

Alan Cohen

Executive Vice President

Head of Investor Relations

(787) 773-5302

IR@evertecinc.com


EVERTEC, Inc.

Schedule 1: Unaudited Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)

 

     Quarters ended December 31,     Twelve months ended December 31,  
(Dollar amounts in thousands, except per share data)    2014     2013     2014     2013  

Revenues

        

Merchant Acquiring, net

   $ 20,791      $ 19,781      $ 79,136      $ 73,616   

Payment Processing

     27,732        26,390        105,423        100,104   

Business Solutions

     44,961        47,332        176,570        184,297   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

  93,484      93,503      361,129      358,017   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating costs and expenses

Cost of revenues, exclusive of depreciation and amortization shown below

  40,736      41,318      156,517      163,080   

Selling, general and administrative expenses

  15,647      8,333      41,276      38,810   

Depreciation and amortization

  16,531      17,292      65,988      70,366   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

  72,914      66,943      263,781      272,256   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

  20,570      26,560      97,348      85,761   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-operating (expenses) income

Interest income

  83      89      328      236   

Interest expense

  (6,301   (6,447   (26,081   (37,861

Earnings of equity method investment

  235      112      1,140      935   

Other expenses:

Loss on extinguishment of liability

  —        —        —        (58,464

Termination of consulting agreement

  —        —        —        (16,718

Other income (expenses)

  248      1,338      2,375      (500
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expenses)

  248      1,338      2,375      (75,682
  

 

 

   

 

 

   

 

 

   

 

 

 

Total non-operating (expenses)

  (5,735   (4,908   (22,238   (112,372
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

  14,835      21,652      75,110      (26,611

Income tax expense (benefit)

  2,373      1,613      7,578      (1,990
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

  12,462      20,039      67,532      (24,621

Other comprehensive (loss) income, net of tax

Foreign currency translation adjustments

  (375   (482   (6,948   1,268   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income (loss)

$ 12,087    $ 19,557    $ 60,584    $ (23,353
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) per common share: (1)

Basic

$ 0.16    $ 0.25    $ 0.86    $ (0.31

Diluted

$ 0.16    $ 0.24    $ 0.86    $ (0.31

Shares used in computing net income (loss) per common share: (1)

Basic

  77,898,106      81,030,127      78,337,152      78,914,310   

Diluted

  78,057,312      81,943,035      78,891,139      78,914,310   

 

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

Note: Certain reclassifications have been made to Payments Processing revenue and cost of revenue amounts to conform to the 2014 quarter presentation, see Schedule 6.


EVERTEC, Inc.

Schedule 2: Unaudited Consolidated Balance Sheets

 

(Dollar amounts in thousands, except per share data)    December 31, 2014     December 31, 2013  

Assets

    

Current Assets:

    

Cash

     32,114      $ 22,485   

Restricted cash

     5,718        5,433   

Accounts receivable, net

     75,810        68,434   

Deferred tax asset

     399        2,537   

Prepaid expenses and other assets

     20,565        19,482   
  

 

 

   

 

 

 

Total current assets

  134,606      118,371   

Investment in equity investee

  11,756      10,639   

Property and equipment, net

  29,535      33,240   

Goodwill

  368,837      373,119   

Other intangible assets, net

  334,584      367,780   

Other long-term assets

  10,917      18,162   
  

 

 

   

 

 

 

Total assets

  890,235    $ 921,311   
  

 

 

   

 

 

 

Liabilities and stockholders’ equity

Current Liabilities:

Accrued liabilities

  26,052    $ 26,571   

Accounts payable

  22,879      20,588   

Unearned income

  9,825      5,595   

Income tax payable

  1,956      259   

Current portion of long-term debt

  19,000      19,000   

Short-term borrowings

  23,000      51,200   

Deferred tax liability, net

  1,799      543   
  

 

 

   

 

 

 

Total current liabilities

  104,511      123,756   

Long-term debt

  647,579      665,680   

Long-term deferred tax liability, net

  15,674      20,212   

Other long-term liabilities

  2,898      333   
  

 

 

   

 

 

 

Total liabilities

  770,662      809,981   
  

 

 

   

 

 

 

Stockholders’ equity

Preferred stock, par value $0.01; 2,000,000 shares authorized; none issued

  —        —     

Common stock, par value $0.01; 206,000,000 shares authorized; 77,893,144 shares issued and outstanding at December 31, 2014 (December 31, 2013 - 78,286,465)

  779      783   

Additional paid-in capital

  59,740      80,718   

Accumulated earnings

  65,576      29,403   

Accumulated other comprehensive income (loss), net of tax

  (6,522   426   
  

 

 

   

 

 

 

Total stockholders’ equity

  119,573      111,330   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

  890,235    $ 921,311   
  

 

 

   

 

 

 


EVERTEC, Inc.

Schedule 3: Unaudited Consolidated Statements of Cash Flows

 

     Years ended December 31,  
     2014     2013  

Cash flows from operating activities

    

Net income (loss)

   $ 67,532      $ (24,621

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

    

Depreciation and amortization

     65,988        70,366   

Amortization of debt issue costs and premium and accretion of discount

     3,094        3,905   

Write-off of debt issue costs, premium and discount accounted as loss on extinguishment of debt

     —          16,555   

Provision for doubtful accounts and sundry losses

     1,360        673   

Deferred tax benefit

     (1,714     (5,702

Share-based compensation

     4,587        6,179   

Unrealized loss (gain) of indemnification assets

     446        383   

Loss on disposition of property and equipment and other intangibles

     734        538   

Earnings of equity method investment

     (1,140     (935

Dividend received from equity method investment

     326        984   

(Increase) decrease in assets:

    

Accounts receivable, net

     (6,608     9,243   

Prepaid expenses and other assets

     (1,067     1,685   

Other long-term assets

     3,365        (1,381

(Decrease) increase in liabilities:

    

Accounts payable and accrued liabilities

     (2,882     (16,734

Income tax payable

     1,697        (2,700

Unearned income

     4,230        4,429   
  

 

 

   

 

 

 

Total adjustments

  72,416      87,488   
  

 

 

   

 

 

 

Net cash provided by operating activities

  139,948      62,867   
  

 

 

   

 

 

 

Cash flows from investing activities

Net increase in restricted cash

  (285   (494

Intangible assets acquired

  (15,046   (16,980

Property and equipment acquired

  (10,898   (11,486

Proceeds from sales of property and equipment

  59      16   
  

 

 

   

 

 

 

Net cash used in investing activities

  (26,170   (28,944
  

 

 

   

 

 

 

Cash flows from financing activities

Proceeds from initial public offering, net of offering costs of $12,567

  —        112,432   

Proceeds from issuance of long-term debt

  —        700,000   

Debt issuance costs

  —        (12,077

Net (decrease) increase in short-term borrowings

  (27,000   36,000   

Proceeds from new short-term borrowing for purchase of equipment

  —        1,800   

Repayments of short-term borrowing for purchase of equipment

  (1,200   (13,596

Dividends paid

  (31,359   (16,390

Statutory minimum withholding taxes paid on cashless exercises of stock options

  (2,002   (16,851

Tax windfall benefits on exercises of stock options and vesting of restricted stocks

  3,669      1,829   

Issuance of common stock

  543      29   

Repurchase of common stock

  (26,196   (75,000

Settlement of stock options

  (1,604   —     

Repayment and repurchase of long-term debt

  (19,000   (755,024

Repayment of other financing agreement

  —        (224
  

 

 

   

 

 

 

Net cash used in financing activities

  (104,149   (37,072
  

 

 

   

 

 

 

Net increase (decrease) in cash

  9,629      (3,149

Cash at beginning of the period

  22,485      25,634   
  

 

 

   

 

 

 

Cash at end of the period

$ 32,114    $ 22,485   
  

 

 

   

 

 

 


EVERTEC, Inc.

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

 

     Quarters ended December 31,     Twelve months ended December 31,  
(Dollar amounts in thousands, except per share data)    2014     2013     2014     2013  

Net income (loss)

   $ 12,462      $ 20,039     $ 67,532      $ (24,621

Income tax expense (benefit)

     2,373        1,613       7,578        (1,990

Interest expense, net

     6,218        6,358       25,753        37,625   

Depreciation and amortization

     16,531        17,292       65,988        70,366   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

  37,584      45,302     166,851      81,380   

Software maintenance reimbursement and other costs (1)

  478      619     2,248      2,298   

Equity income (2)

  (235   371     (815   49   

Compensation and benefits (3)

  4,579      596     6,152      7,469   

Pro forma cost reduction adjustments (4)

  —        —        —        175   

Transaction, refinancing and other non-recurring fees (5)

  5,145      1,855     7,930      65,885   

Management fees (6)

  —        —        —        20,109   

Purchase accounting (7)

  (13   371     446      350   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  47,538      49,114      182,812      177,715   

Pro forma cost reduction adjustments (8)

  —        —        —        (175

Operating depreciation and amortization (9)

  (7,416   (7,855   (29,518   (31,645

Cash interest expense, net (10)

  (5,440   (5,590   (22,351   (22,282

Cash income taxes (11)

  (273   (299   (976   (2,338
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Net Income

$ 34,409    $ 35,370    $ 129,967    $ 121,275   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income per common share: (12)

Basic

$ 0.44    $ 0.44    $ 1.66    $ 1.54   

Diluted

$ 0.44    $ 0.43    $ 1.65    $ 1.49   

Shares used in computing adjusted net income per common share: (12)

Basic

  77,898,106      81,030,127      78,337,152      78,914,310   

Diluted

  78,057,312      81,943,035      78,891,139      81,239,519   

 

1) Predominantly represents reimbursements received for certain software maintenance expenses as part of the Merger.
2) Represents the elimination of non-cash equity earnings from our 19.99% equity investment in CONTADO, net of cash dividends received.
3) Predominantly represents non-cash equity based compensation expense, and for the fourth quarter of 2014 includes a cash termination payment and the acceleration of the vesting of stock options to our prior CEO.
4) Represents the pro forma effect of the expected net savings mainly in compensation and benefits from the reduction of certain employees. This pro forma amount was calculated using the net amount of actual expenses for the twelve-month period prior to their separation.
5) Represents fees and expenses associated with non-recurring corporate transactions, including $3.0 million of costs related to the CEO succession in the fourth quarter of 2014, $1.1 million of fees associated with the withdrawn senior secured notes offering in the second quarter of 2014 and refinancing and debt extinguishment of $58.6 million in the second quarter of 2013.
6) Represents consulting fees paid to Apollo and Popular. In connection with our initial public offering during the second quarter of 2013, our consulting agreements with Apollo and Popular were terminated.
7) Represents the elimination of the effects of purchase accounting in connection with certain customer service and software-related arrangements whereby EVERTEC receives reimbursements from Popular.
8) Represents the elimination of the pro forma benefits described in note 4 above.
9) Represents operating depreciation and amortization expense, which excludes amounts generated as a result of the Merger.
10) For the twelve months ended December 31, 2013, represents pro forma cash interest expense assuming EVERTEC’s April 2013 refinancing occurred on January 1, 2013, less interest income, as they appear on our consolidated statements of income (loss) and comprehensive income (loss), adjusted to exclude non-cash amortization of the debt issue costs, premium and accretion of discount. For the three and twelve months ended December 31, 2014 and the three months ended December 31, 2013, represents interest expense, less interest income, as they appear on our consolidated statements of income (loss) and comprehensive income (loss), adjusted to exclude non-cash amortization of the debt issue costs, premium and accretion of discount.
11) Represents cash taxes paid for each period presented.
12) Share count was adjusted for the 2:1 stock split that occurred on April 1, 2013.


Schedule 5: Unaudited Income from Operations by Segment

 

     Quarters ended December 31,     Twelve months ended December 31,  
(Dollar amounts in thousands)    2014     2013     2014     2013  

Segment income from operations

        

Merchant Acquiring, net

   $ 8,648      $ 9,413      $ 34,348      $ 35,376   

Payment Processing

     15,144        15,893        59,882        54,429   

Business Solutions

     11,355        11,830        47,587        42,430   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total segment income from operations

  35,147      37,136      141,817      132,235   

Merger related depreciation and amortization and other unallocated expenses (1)

  (14,577   (10,576   (44,469   (46,474
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

$ 20,570    $ 26,560    $ 97,348    $ 85,761   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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


Schedule 6: Reclassification of Payment Processing Revenues and

Cost of Revenues Exclusive of Depreciation and Amortization

 

     Year Ended      Quarters Ended  
     December 31,
2014
     December 31,
2014
     September 30,
2014
     June 30,
2014
     March 31,
2014
 

Revenues

              

Payment Processing - as presented in previous quarters

   $ 104,751       $ 27,732       $ 25,611       $ 26,406       $ 25,002   

Reclassification (1)

     672         —           237         212         223   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Payment Processing - after reclassification

$ 105,423    $ 27,732    $ 25,848    $ 26,618    $ 25,225   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Operating costs and expenses

Cost of revenues, exclusive of depreciation and amortization - as presented in previous quarters

$ 155,845    $ 40,736    $ 38,625    $ 38,839    $ 37,645   

Reclassification (1)

  672      —        237      212      223   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cost of revenue, exclusive of depreciation and amortization - after reclassification

$ 156,517    $ 40,736    $ 38,862    $ 39,051    $ 37,868   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Year Ended      Quarters Ended  
     December 31,
2013
     December 31,
2013
     September 30,
2013
     June 30,
2013
     March 31,
2013
 

Revenues

              

Payment Processing - as presented in previous quarters

   $ 99,327       $ 26,199       $ 24,731       $ 24,285       $ 24,112   

Reclassification (1)

     777         190         200         187         200   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Payment Processing - after reclassification

$ 100,104    $ 26,389    $ 24,931    $ 24,472    $ 24,312   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Operating costs and expenses

Cost of revenues, exclusive of depreciation and amortization - as presented in previous quarters

$ 162,303    $ 41,128    $ 38,903    $ 41,771    $ 40,501   

Reclassification (1)

  777      190      200      187      200   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cost of revenue, exclusive of depreciation and amortization - after reclassification

$ 163,080    $ 41,318    $ 39,103    $ 41,958    $ 40,701   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

1) Certain reclassifications have been made to the quarterly Payment Processing revenue and cost of revenue, exclusive of depreciation and amortization amounts to conform with the presentation in the quarter ended December 31, 2014. The reclassifications did not impact income from operations, income (loss) before taxes, net income (loss) and total comprehensive income (loss), EBITDA, Adjusted EBITDA, and Adjusted Net Income reported in previous quarters.