Revenue during the quarter went up marginally by 1.64 percent to $94.47 million from $92.94 million in the previous year period. Gross margin for the quarter expanded 330 basis points over the previous year period to 55.80 percent. Total expenses were 71.41 percent of quarterly revenues, down from 76.90 percent for the same period last year. This has led to an improvement of 548 basis points in operating margin to 28.59 percent.

Operating income for the quarter was $27.01 million, compared with $21.47 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $45.14 million compared with $46.89 million in the prior year period. At the same time, adjusted EBITDA margin contracted 267 basis points in the quarter to 47.79 percent from 50.45 percent in the last year period.

Mac Schuessler, president and chief executive officer, stated "Our third quarter results reflect the resilient performance of our Puerto Rican business in challenging conditions and the continued performance of our Latin America business. We generated significant operating cash flow and returned $22 million to shareholders through our share repurchases and dividends."

For financial year 2016, EVERTEC, Inc. projects revenue to be in the range of $382 million to $388 million. It forecasts diluted earnings per share to be in the range of $1.61 to $1.67 on adjusted basis for the same period.

The company has spent $33.85 million cash to meet investing activities during the nine month period as against cash outgo of $36.92 million in the last year period. It has incurred net capital expenditure of $31.44 million on net basis during the nine month period, up 8.08 percent or $2.35 million from year ago period.

The company has spent $74.51 million cash to carry out financing activities during the nine month period as against cash outgo of $79.12 million in the last year period.

Cash and cash equivalents stood at $44.98 million as on Sep. 30, 2016, up 11.35 percent or $4.58 million from $40.40 million on Sep. 30, 2015.

Working capital drops significantly
EVERTEC, Inc. has witnessed a decline in the working capital over the last year. It stood at $25.10 million as at Sep. 30, 2016, down 43.06 percent or $18.98 million from $44.08 million on Sep. 30, 2015. Current ratio was at 1.21 as on Sep. 30, 2016, down from 1.42 on Sep. 30, 2015.

Days sales outstanding went down to 67 days for the quarter compared with 69 days for the same period last year.

At the same time, days payable outstanding went up to 51 days for the quarter from 43 for the same period last year.