1-8-14 4:00 PM EST | Email Article

Increases Fiscal 2014 EPS Outlook

ATLANTA, Jan. 8, 2014 /PRNewswire/ -- Global Payments Inc. (NYSE: GPN) today announced results for its fiscal second quarter ended November 30, 2013.  

(Logo: http://photos.prnewswire.com/prnh/20010221/ATW031LOGO )

President and CEO Jeff Sloan said, "We are pleased with our results for the quarter driven by strong business performance across all regions, and we now expect double digit cash earnings per share growth for our full-year.  We are making substantial progress on our growth initiatives globally, and we remain focused on being the partner of choice."

Second Quarter 2014 Summary

  • Revenues grew 8% to $634.1 million, compared to $588.5 million in the second quarter of fiscal 2013.
  • Cash diluted earnings per share grew 15% to $1.07, compared to $0.93 in the second quarter of fiscal 2013.
  • GAAP diluted earnings per share were $1.02, compared to $0.89 in the second quarter of 2013.

2014 Outlook

"We are raising our full-year expectations for diluted earnings per share on a cash basis by five cents to a range of $4.03 to $4.10, or growth of 10% to 12% over fiscal 2013," said David E. Mangum, Senior Executive Vice President and CFO.

Annual fiscal 2014 GAAP diluted earnings per share are now expected to be $3.45 to $3.52

The company maintains its expectations for annual revenue of $2.51 billion to $2.56 billion, or 6% to 8% growth over fiscal 2013. 

Conference Call

Global Payments will hold a conference call today, January 8, 2014 at 5:00 p.m. EST to discuss financial results and business highlights.  Callers may access the conference call via the investor relations page of the company's website at www.globalpaymentsinc.com by clicking the "Webcast" button; or callers in North America may dial 1-888-895-3550 and callers outside North America may dial 1-706-758-8809.  The pass code is "GPN."  A replay of the call may be accessed through the Global Payments website through January 22, 2014.

About Global Payments

Global Payments Inc. (NYSE: GPN) is a leading provider of electronic transaction processing services for merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout North America, South America, Europe and the Asia-Pacific region.  Global Payments, a Fortune 1000 company, offers a comprehensive line of processing solutions for credit and debit cards, business-to-business purchasing cards, gift cards, electronic check conversion and check guarantee, verification and recovery including electronic check services, as well as terminal management.  Visit www.globalpaymentsinc.com for more information about the company and its services.

This announcement and comments made by Global Payments' management during the conference call may contain certain forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.  Statements that are not historical facts, including revenue and earnings estimates and management's expectations regarding future events and developments, are forward-looking statements and are subject to significant risks and uncertainties.  Important factors that may cause actual events or results to differ materially from those anticipated by such forward-looking statements include the following: the effect on our results of operations of continued security enhancements to our processing system; foreign currency risks which become increasingly relevant as we expand internationally; the effect of current domestic and worldwide economic conditions, future performance and integration of acquisitions, and other risks detailed in our SEC filings, including the most recently filed Form 10-K.  We undertake no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.

 

Investor contact: 

investor.relations@globalpay.com  

Media contact:

media.relations@globalpay.com


Jane Elliott


Amy Corn


770-829-8234


770-829-8755

 


SCHEDULE 1

GAAP CONSOLIDATED STATEMENTS OF INCOME 


GLOBAL PAYMENTS INC. AND SUBSIDIARIES















(In thousands, except per share data)
















Three Months Ended 

November 30,




Six Months Ended

November 30,





2013


2012


% Change


2013


2012


% Change



(unaudited)




(unaudited)



Revenues


$     634,122


$      588,538


7.7%


$  1,263,807


$   1,178,825


7.2%

Operating expenses:













Cost of service


235,170


210,268


11.8%


465,915


414,659


12.4%

Sales, general and administrative


294,045


276,177


6.5%


585,601


557,596


5.0%

Processing system intrusion


(7,000)


(14,489)


(51.7%)


(7,000)


9,500


(173.7%)



522,215


471,956


10.6%


1,044,516


981,755


6.4%














Operating income


111,907


116,582


(4.0%)


219,291


197,070


11.3%

Other income (expense):













Interest and other income


5,288


2,187


141.8%


8,626


4,170


106.9%

Interest and other expense


(8,025)


(14,609)


(45.1%)


(15,904)


(18,154)


(12.4%)



(2,737)


(12,422)


(78.0%)


(7,278)


(13,984)


(48.0%)














Income before income taxes 


109,170


104,160


4.8%


212,013


183,086


15.8%

Provision for income taxes


(29,313)


(28,789)


1.8%


(60,448)


(53,553)


12.9%

Net income


79,857


75,371


6.0%


151,565


129,533


17.0%

Less: Net income attributable to noncontrolling interests, net of income tax


(5,960)


(5,188)


14.9%


(13,025)


(12,675)


2.8%

Net income attributable to Global Payments


$        73,897


$         70,183


5.3%


$     138,540


$      116,858


18.6%



























Earnings per share attributable to Global Payments:













    Basic


$            1.02


$             0.89


14.6%


$            1.90


$             1.49


27.5%

    Diluted


$            1.02


$             0.89


14.6%


$            1.88


$             1.48


27.0%














Weighted average shares outstanding:













    Basic


72,174


78,751




72,974


78,669



    Diluted


72,706


79,144




73,504


79,062



 

SCHEDULE 2


CASH EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS


GLOBAL PAYMENTS INC. AND SUBSIDIARIES















(In thousands, except per share data)

















Three Months Ended 

November 30,




Six Months Ended 

November 30,





2013


2012


% Change


2013


2012


% Change














Revenues


$       634,122


$     588,538


7.7%


$    1,263,807


$  1,178,825


7.2%

Operating expenses:













Cost of service


220,610


195,932


12.6%


436,383


388,937


12.2%

Sales, general and administrative


290,697


276,177


5.3%


580,757


556,796


4.3%



511,307


472,109


8.3%


1,017,140


945,733


7.6%



























Operating income


122,815


116,429


5.5%


246,667


233,092


5.8%

Other income (expense):













Interest and other income


3,165


2,187


44.7%


6,503


4,170


55.9%

Interest and other expense


(8,025)


(6,226)


28.9%


(15,904)


(9,771)


62.8%



(4,860)


(4,039)


20.3%


(9,401)


(5,601)


67.8%














Income before income taxes 


117,955


112,390


5.0%


237,266


227,491


4.3%

Provision for income taxes


(32,873)


(29,385)


11.9%


(69,559)


(65,938)


5.5%

Net income


85,082


83,005


2.5%


167,707


161,553


3.8%

Less: Net income attributable to noncontrolling interests, net of income tax


(7,197)


(9,419)


(23.6%)


(15,633)


(19,171)


(18.5%)

Net income attributable to Global Payments


$         77,885


$       73,586


5.8%


$       152,074


$     142,382


6.8%



























Earnings per share attributable to Global Payments:













    Basic


$              1.08


$            0.93


16.1%


$              2.08


$            1.81


14.9%

    Diluted


$              1.07


$            0.93


15.1%


$              2.07


$            1.80


15.0%














Weighted average shares outstanding:













    Basic


72,174


78,751




72,974


78,669



    Diluted


72,706


79,144




73,504


79,062
















See Schedules 6 and 7 for a reconciliation of cash earnings to GAAP.







 

SCHEDULE 3

SEGMENT INFORMATION 

GLOBAL PAYMENTS INC. AND SUBSIDIARIES














(In thousands)
















 Three Months Ended November 30, 







2013


2012


 % Change 



 GAAP 


 Cash Earnings 


 GAAP 


 Cash Earnings 


 GAAP 


 Cash Earnings 














Revenues:













United States


$    361,793


$    361,793


$    339,998


$    339,998


6.4%


6.4%

Canada


85,240


85,240


80,770


80,770


5.5%


5.5%

North America merchant services


447,033


447,033


420,768


420,768


6.2%


6.2%














Europe


146,866


146,866


131,161


131,161


12.0%


12.0%

Asia-Pacific


40,223


40,223


36,609


36,609


9.9%


9.9%

International merchant services


187,089


187,089


167,770


167,770


11.5%


11.5%














Total revenues


$    634,122


$    634,122


$    588,538


$    588,538


7.7%


7.7%














Operating income (loss) for segments:













North America merchant services


$      70,437


$      77,621


$      67,114


$      73,280


5.0%


5.9%

International merchant services


62,467


69,843


53,987


62,157


15.7%


12.4%

Corporate1


(20,997)


(24,649)


(4,519)


(19,008)


(364.6%)


(29.7%)

Operating income


$    111,907


$    122,815


$    116,582


$    116,429


(4.0%)


5.5%





























 Six Months Ended November 30, 







2013


2012


 % Change 



 GAAP 


 Cash Earnings 


 GAAP 


 Cash Earnings 


 GAAP 


 Cash Earnings 














Revenues:













United States


$    725,626


$    725,626


$    685,896


$    685,896


5.8%


5.8%

Canada


171,912


171,912


161,667


161,667


6.3%


6.3%

North America merchant services


897,538


897,538


847,563


847,563


5.9%


5.9%














Europe


290,054


290,054


259,626


259,626


11.7%


11.7%

Asia-Pacific


76,215


76,215


71,636


71,636


6.4%


6.4%

International merchant services


366,269


366,269


331,262


331,262


10.6%


10.6%














Total revenues


$ 1,263,807


$ 1,263,807


$ 1,178,825


$ 1,178,825


7.2%


7.2%














Operating income (loss) for segments:













North America merchant services


$    140,136


$    157,025


$    134,331


$    144,723


4.3%


8.5%

International merchant services


124,008


138,600


111,127


127,201


11.6%


9.0%

Corporate1


(44,853)


(48,958)


(48,388)


(38,832)


7.3%


(26.1%)

Operating income


$    219,291


$    246,667


$    197,070


$    233,092


11.3%


5.8%








































1GAAP and cash earnings include incremental security spend for the three and six months ended November 30, 2013. GAAP earnings for the three and six months ended November 30, 2013 include insurance proceeds of ($7M) related to the FY2012 data intrusion.  GAAP earnings for the three and six months ended November 30, 2012 include a data intrusion (credit)/charge of ($14.5) million and $9.5M, respectively.














See Schedule 8 for reconciliation of cash earnings segment information to GAAP. 








 

SCHEDULE 4

CONSOLIDATED BALANCE SHEETS

GLOBAL PAYMENTS INC. AND SUBSIDIARIES






(In thousands, except share data)












November 30, 2013


May 31, 2013



(unaudited)



Assets





Current assets:





Cash and cash equivalents


$    1,096,833


$       680,470

Accounts receivable, net of allowances for doubtful accounts of $353 and $509, respectively


195,788


189,435

Claims receivable, net


662


1,156

Settlement processing assets


688,003


259,204

Inventory


8,886


11,057

Deferred income taxes


6,459


6,485

Prepaid expenses and other current assets


61,677


66,685

Total current assets


2,058,308


1,214,492






Goodwill


1,063,310


1,044,222

Other intangible assets, net


379,350


400,848

Property and equipment, net


357,880


348,064

Deferred income taxes


100,332


95,178

Other


22,384


22,252






Total assets


$    3,981,564


$    3,125,056






Liabilities and Equity





Current liabilities:





Lines of credit


$       446,508


$       187,461

Current portion of long-term debt


72,351


72,335

Accounts payable and accrued liabilities


235,361


262,890

Settlement processing obligations


798,671


162,558

Income taxes payable


20,114


18,870

  Total current liabilities


1,573,005


704,114






Long-term debt


922,545


891,134

Deferred income taxes


172,988


170,723

Other long-term liabilities


81,342


72,478

Total liabilities


2,749,880


1,838,449






Equity:





Preferred stock, no par value; 5,000,000 shares authorized and none issued


-


-

Common stock, no par value; 200,000,000 shares authorized; 71,908,829 issued and outstanding





 at November 30, 2013 and 75,426,099 issued and outstanding at May 31, 2013


-


-

Paid-in capital


188,281


202,396

Retained earnings


896,597


958,751

Accumulated other comprehensive income (loss)


2,235


(15,062)

      Total Global Payments shareholders' equity


1,087,113


1,146,085

Noncontrolling interest


144,571


140,522

Total equity


1,231,684


1,286,607






Total liabilities and equity


$    3,981,564


$    3,125,056

 

SCHEDULE 5

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

GLOBAL PAYMENTS INC. AND SUBSIDIARIES









(In thousands)


















Six Months Ended November 30,






2013


2012









Cash flows from operating activities:





Net income


$         151,565


$      129,533

Adjustments to reconcile net income to net cash provided by operating activities:






Depreciation and amortization of property and equipment


28,439


26,494


Amortization of acquired intangibles


28,953


25,561


Share-based compensation expense


11,965


9,178


Provision for operating losses and bad debts


10,249


11,970


Deferred income taxes


6,073


30,055


Other, net


(4,345)


(2,231)

Changes in operating assets and liabilities, net of the effects of acquisitions:






Accounts receivable


(6,353)


721


Claims receivable


(6,567)


(6,600)


Settlement processing assets and obligations, net


204,307


(11,671)


Inventory


2,237


(4,297)


Prepaid expenses and other assets


5,761


(11,204)


Accounts payable and other accrued liabilities


(21,845)


(67,869)


Income taxes payable


1,244


(4,847)



Net cash provided by operating activities


411,683


124,793









Cash flows from investing activities:






Business, intangible and other asset acquisitions, net of cash acquired


(2,324)


(409,731)


Capital expenditures


(41,178)


(54,393)


Net decrease in financing receivables


1,328


1,485


Net proceeds from sales of investment and business


3,102


-



Net cash used in investing activities


(39,072)


(462,639)









Cash flows from financing activities:






Net borrowings (payments) on short-term lines of credit


259,047


(2,992)


Proceeds from issuance of long-term debt


810,000


910,327


Principal payments under long-term debt


(779,380)


(343,133)


Payment of debt issuance costs


-


(3,987)


Repurchase of common stock


(250,183)


(12,653)


Proceeds from stock issued under share-based compensation plans


27,366


7,080


Common stock repurchased - share-based compensation plans


(5,260)


(10,224)


Tax benefit from share-based compensation plans


4,415


1,791


Distribution to noncontrolling interests


(15,593)


(5,740)


Dividends paid


(2,894)


(3,153)




Net cash provided by financing activities


47,518


537,316









Effect of exchange rate changes on cash


(3,766)


17,516









Increase in cash and cash equivalents


416,363


216,986

Cash and cash equivalents, beginning of period


680,470


781,275

Cash and cash equivalents, end of period


$      1,096,833


$      998,261

 

SCHEDULE 6

RECONCILIATION OF QUARTERLY CASH EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS TO GAAP

GLOBAL PAYMENTS INC. AND SUBSIDIARIES












(In thousands, except per share data)














Three Months Ended November 30, 2013



GAAP


Processing System Intrusion1


Other2


Cash Earnings Adjustments3


Cash Earnings












Revenues


$       634,122


$                    -


$                  -


$                  -


$       634,122

Operating expenses:











   Cost of service


235,170


-


-


(14,560)


220,610

   Sales, general and administrative


294,045


-


(3,348)


-


290,697

   Processing system intrusion


(7,000)


7,000


-


-


-



522,215


7,000


(3,348)


(14,560)


511,307












Operating income


111,907


(7,000)


3,348


14,560


122,815

Other income (expense):











   Interest and other income


5,288


-


(2,123)


-


3,165

   Interest and other expense


(8,025)


-


-


-


(8,025)



(2,737)


-


(2,123)


-


(4,860)












Income (loss) before income taxes 


109,170


(7,000)


1,225


14,560


117,955

(Provision) benefit  for income taxes


(29,313)


2,393


(1,145)


(4,808)


(32,873)

Net income (loss)


79,857


(4,607)


80


9,752


85,082

Less: Net income attributable to noncontrolling interests, net of income tax


(5,960)


-


-


(1,237)


(7,197)

Net income (loss) attributable to Global Payments


$         73,897


$           (4,607)


$                 80


$           8,515


$         77,885












Diluted shares


72,706








72,706

Diluted earnings (loss) per share


$             1.02


$              (0.07)


$             0.00


$             0.12


$             1.07

























Three Months Ended November 30, 2012



GAAP


Processing System Intrusion


Other2


Cash Earnings Adjustments3


Cash Earnings












Revenues


$       588,538


$                    -


$                  -


$                  -


$       588,538

Operating expenses:











   Cost of service


210,268


-


-


(14,336)


195,932

   Sales, general and administrative


276,177


-


-


-


276,177

   Processing system intrusion


(14,489)


14,489


-


-


-



471,956


14,489


-


(14,336)


472,109












Operating income


116,582


(14,489)


-


14,336


116,429

Other income (expense):











   Interest and other income


2,187


-


-


-


2,187

   Interest and other expense


(14,609)


-


8,383


-


(6,226)



(12,422)


-


8,383


-


(4,039)












Income (loss) before income taxes 


104,160


(14,489)


8,383


14,336


112,390

(Provision) benefit  for income taxes


(28,789)


5,000


(1,383)


(4,213)


(29,385)

Net income (loss)


75,371


(9,489)


7,000


10,123


83,005

Less: Net income attributable to noncontrolling interests, net of income tax


(5,188)


-


(2,853)


(1,378)


(9,419)

Net income (loss) attributable to Global Payments


$         70,183


$           (9,489)


$           4,147


$           8,745


$         73,586












Diluted shares


79,144








79,144

Diluted earnings (loss) per share


$             0.89


$              (0.12)


$             0.05


$             0.11


$             0.93























1Represents insurance proceeds associated with processing system intrusion charges incurred in FY 2012.












2 For the period ended November 30, 2013, represents one-time charges primarily related to employee termination benefits and a one-time credit related to the gain on the sale of an interest in a business.  For the prior period, represents HSBC's share of GPAP dividends declared and the net income attributable to our Asia-Pacific redeemable noncontrolling interest.












3Represents adjustments to cost of service to exclude acquisition intangible amortization expense from net income and the related income tax benefit.












We supplemented our reporting of income and the related earnings per share information determined in accordance with GAAP by reporting income and the related earnings per share for the three months ended November 30, 2013 and 2012 on a "cash earnings" basis in this earnings release as a measure to help evaluate performance. We calculated income and earnings per share on a cash basis by excluding amounts related to the processing system intrusion, acquisition intangible amortization, one-time charges related to employee termination benefits, and a one-time credit related to the gain on the sale of an interest in a business.  In November 2012, we also adjusted the net income attributable to noncontrolling interests to include HSBC's share of second quarter 2013 GPAP net income and for HSBC's share of GPAP dividends. We exclude these charges in order to more clearly focus on the factors we believe are pertinent to the daily management of our operations. Our income and earnings per share reported on a cash earnings basis should be considered in addition to, and not as a substitute for, income and earnings per share determined in accordance with GAAP. Our measures of income and earnings per share on a cash earnings basis reflect management's judgment of particular items, and may not be comparable to similarly titled measures reported by other companies.

 

SCHEDULE 7

RECONCILIATION OF YEAR TO DATE CASH EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS TO GAAP

GLOBAL PAYMENTS INC. AND SUBSIDIARIES












(In thousands, except per share data)














Six Months Ended November 30, 2013



GAAP


Processing System Intrusion 1


Other2


Cash Earnings Adjustments3


Cash Earnings












Revenues


$   1,263,807


$                       -


$                  -


$                  -


$   1,263,807

Operating expenses:











   Cost of service


465,915


-


(579)


(28,953)


436,383

   Sales, general and administrative


585,601


-


(4,844)


-


580,757

   Processing system intrusion


(7,000)


7,000


-


-


-



1,044,516


7,000


(5,423)


(28,953)


1,017,140












Operating income


219,291


(7,000)


5,423


28,953


246,667

Other income (expense):











   Interest and other income


8,626


-


(2,123)


-


6,503

   Interest and other expense


(15,904)


-


-


-


(15,904)



(7,278)


-


(2,123)


-


(9,401)












Income (loss) before income taxes 


212,013


(7,000)


3,300


28,953


237,266

(Provision) benefit  for income taxes


(60,448)


2,393


(1,934)


(9,570)


(69,559)

Net income (loss)


151,565


(4,607)


1,366


19,383


167,707

Less: Net income attributable to noncontrolling interests, net of income tax


(13,025)


-


-


(2,608)


(15,633)

Net income (loss) attributable to Global Payments


$       138,540


$               (4,607)


$           1,366


$         16,775


$       152,074












Diluted shares


73,504








73,504

Diluted earnings (loss) per share


$             1.88


$                 (0.07)


$             0.02


$             0.24


$             2.07

























Six Months Ended November 30, 2012



GAAP


Processing System Intrusion


Other2


Cash Earnings Adjustments3


Cash Earnings












Revenues


$   1,178,825


$                       -


$                  -


$                  -


$   1,178,825

Operating expenses:











   Cost of service


414,659


-


(161)


(25,561)


388,937

   Sales, general and administrative


557,596


-


(800)


-


556,796

   Processing system intrusion


9,500


(9,500)


-


-


-



981,755


(9,500)


(961)


(25,561)


945,733












Operating income


197,070


9,500


961


25,561


233,092

Other income (expense):











   Interest and other income


4,170


-


-


-


4,170

   Interest and other expense


(18,154)


-


8,383


-


(9,771)



(13,984)


-


8,383


-


(5,601)












Income (loss) before income taxes 


183,086


9,500


9,344


25,561


227,491

(Provision) benefit  for income taxes


(53,553)


(3,279)


(1,533)


(7,573)


(65,938)

Net income (loss)


129,533


6,221


7,811


17,988


161,553

Less: Net income attributable to noncontrolling interests, net of income tax


(12,675)


-


(3,594)


(2,902)


(19,171)

Net income (loss) attributable to Global Payments


$       116,858


$                6,221


$           4,217


$         15,086


$       142,382












Diluted shares


79,062








79,062

Diluted earnings (loss) per share


$             1.48


$                   0.08


$             0.05


$             0.19


$             1.80























1Represents insurance proceeds associated with processing system intrusion charges incurred in FY 2012.












2 For the period ended November 30, 2013, represents one-time charges primarily related to employee termination benefits and resolution of a contract related contingency, and a one-time credit related to the gain on the sale of an interest in a business.  For the prior period, represents HSBC's share of GPAP dividends declared and the net income attributable to our Asia-Pacific redeemable noncontrolling interest.












3Represents adjustments to cost of service to exclude acquisition intangible amortization expense from net income and the related income tax benefit.












We supplemented our reporting of income and the related earnings per share information determined in accordance with GAAP by reporting income and the related earnings per share for the six months ended November 30, 2013 and 2012 on a "cash earnings" basis in this earnings release as a measure to help evaluate performance. We calculated income and earnings per share on a cash basis by excluding amounts related to the processing system intrusion, acquisition intangible amortization, one-time charges related to employee termination benefits and resolution of a contract related contingency, and a one-time credit related to the sale of an interest in a business.  In the six months ended November 2012, we also adjusted the net income attributable to noncontrolling interests to include HSBC's share of second quarter 2013 GPAP net income and for HSBC's share of GPAP dividends declared.  We exclude these charges in order to more clearly focus on the factors we believe are pertinent to the daily management of our operations. Our income and earnings per share reported on a cash earnings basis should be considered in addition to, and not as a substitute for, income and earnings per share determined in accordance with GAAP. Our measures of income and earnings per share on a cash earnings basis reflect management's judgment of particular items, and may not be comparable to similarly titled measures reported by other companies.

 

SCHEDULE 8

RECONCILIATION OF CASH EARNINGS SEGMENT INFORMATION TO GAAP

GLOBAL PAYMENTS INC. AND SUBSIDIARIES






















(In thousands)
























 Three Months Ended November 30,  



2013


2012



 GAAP 


Processing System Intrusion 1


Other2


Cash Earnings Adjustments3


 Cash Earnings 


 GAAP 


Processing System Intrusion


Other2


Cash Earnings Adjustments3


 Cash Earnings 






















Revenues:





















United States


$   361,793


$               -


$               -


$               -


$   361,793


$    339,998


$               -


$               -


$               -


$   339,998

Canada


85,240


-


-


-


85,240


80,770


-


-


-


80,770

  North America merchant services


447,033


-


-


-


447,033


420,768


-


-


-


420,768






















Europe


146,866


-


-


-


146,866


131,161


-


-


-


131,161

Asia-Pacific


40,223


-


-


-


40,223


36,609


-


-


-


36,609

  International merchant services


187,089


-


-


-


187,089


167,770


-


-


-


167,770






















     Total revenues


$   634,122


$               -


$               -


$               -


$   634,122


$    588,538


$               -


$               -


$               -


$   588,538






















Operating income (loss) for segments:





















North America merchant services


$      70,437


$               -


$               -


$        7,184


$      77,621


$      67,114


$               -


$               -


$        6,166


$      73,280

International merchant services


62,467


-


-


7,376


69,843


53,987


-


-


8,170


62,157

Corporate


(20,997)


(7,000)


3,348


-


(24,649)


(4,519)


(14,489)


-


-


(19,008)

     Operating income (loss)


$   111,907


$       (7,000)


$        3,348


$      14,560


$   122,815


$    116,582


$    (14,489)


$               -


$      14,336


$   116,429













































 Six Months Ended November 30,  



2013


2012



 GAAP 


Processing System Intrusion 1


Other2


Cash Earnings Adjustments3


 Cash Earnings 


 GAAP 


Processing System Intrusion


Other2


Cash Earnings Adjustments3


 Cash Earnings 






















Revenues:





















United States


$   725,626


$               -


$               -


$               -


$   725,626


$    685,896


$               -


$               -


$               -


$   685,896

Canada


171,912


-


-


-


171,912


161,667


-


-


-


161,667

  North America merchant services


897,538


-


-


-


897,538


847,563


-


-


-


847,563






















Europe


290,054


-


-


-


290,054


259,626


-


-


-


259,626

Asia-Pacific


76,215


-


-


-


76,215


71,636


-


-


-


71,636

  International merchant services


366,269


-


-


-


366,269


331,262


-


-


-


331,262






















     Total revenues


$1,263,807


$               -


$               -


$               -


$1,263,807


$ 1,178,825


$               -


$               -


$               -


$1,178,825






















Operating income (loss) for segments:





















North America merchant services


$   140,136


$               -


$        2,518


$      14,371


$   157,025


$    134,331


$               -


$           905


$        9,487


$   144,723

International merchant services


124,008


-


10


14,582


138,600


111,127


-


-


16,074


127,201

Corporate


(44,853)


(7,000)


2,895


-


(48,958)


(48,388)


9,500


56


-


(38,832)

     Operating income (loss)


$   219,291


$       (7,000)


$        5,423


$      28,953


$   246,667


$    197,070


$        9,500


$           961


$      25,561


$   233,092











































1Represents insurance proceeds associated with processing system intrusion charges incurred in FY 2012.


































2Represents one-time charges primarily related to employee termination benefits and resolution of a contract related contingency for the period ending November 30, 2013 and the prior year represents one-time charges primarily related to employee termination benefits.
































3Represents acquisition intangible amortization expense.



















 

SCHEDULE 9

OUTLOOK SUMMARY

GLOBAL PAYMENTS INC. AND SUBSIDIARIES









(In millions, except per share data)












Fiscal 2013 Actual


Fiscal 2014 Outlook


% Change FY13









Revenue Outlook






Total Revenues

$      2,376


$2,510 to $2,560


6% to 8%









EPS Outlook






Cash EPS 

$        3.65


$4.03 to $4.10


10% to 12%

Acquisition-related intangibles assets, non-recurring items and 






    processing system intrusion1

(0.89)


(0.58)


(35%)

GAAP Diluted EPS 

$        2.76


 $3.45 to $3.52 


25% to 28%

























We supplemented our reporting of income and the related earnings per share information determined in accordance with GAAP by reporting income and the related earnings per share on a "cash earnings" basis in this earnings release as a measure to help evaluate performance. We calculated income and earnings per share on a cash basis by excluding costs related to the processing system intrusion, acquisition intangible amortization and one-time charges related to employee termination benefits and certain contract settlement and related costs. We exclude these charges in order to more clearly focus on the factors we believe are pertinent to the daily management of our operations. Our income and earnings per share reported on a cash earnings basis should be considered in addition to, and not as a substitute for, income and earnings per share determined in accordance with GAAP. Our measures of income and earnings per share on a cash earnings basis reflect management's judgment of particular items, and may not be comparable to similarly titled measures reported by other companies.









1  Fiscal 2014 reflects $0.48 of acquisition-related intangibles and $0.10 of non-recurring items.  Acquisition-related intangibles accounted and non-recurring items accounted for $0.57 in fiscal 2013 and processing intrusion costs were $0.32.  

 

 

SOURCE Global Payments Inc.

Add a Comment

News   More...

Securities related to this article
Global Payments, Inc. View gpn Stock Quote
 
Start Premium Trial Register For Free

P F Fund Financial Data (13,000+ funds)
P F Stock Financial Data (7,000+ stocks)
P F Stock and Fund Screeners (basic)
P F Investing Articles and Market Commentary
P F Articles Archive (>30 days)
P F Discuss (dozens of stock, fund, bond, and general bulletin boards)
P F Portfolio Manager (basic)
P F Morningstar Investment Classroom
P F Access Your Portfolio Anytime, Anywhere via Your Mobile Device
P   Morningstar Fund Analyst Reports (full research on 1,700 funds, ETFs, and CEFs)
P   Morningstar Stock Analyst Reports (full research on more than 1,100 stocks)
P   Portfolio Manager (advanced with 10 X-Ray analyses, including recommendations)
P   Portfolio Monitor (monthly and on-demand personalized portfolio statements)
P   Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)
P   Morningstar 5-Star Stock and Fund Favorites & Red Flags eNewsletters
P   Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)
P   Discounts on Morningstar newsletters, books, seminars, and more

Sign-up to Morningstar


Basic Access

Articles and Videos
Morningstar video reports, articles, data, and tools. Dig into our lineup of e-newsletters and investing classroom courses outlining sensible strategies for maximizing your investments.
Morningstar Discuss
Follow the buzz on individual stocks or fund families. Plus, read the latest posts from Morningstar members and analysts.
Portfolio Manager
Track your investments and watch lists with our Portfolio Manager. Customize your view with our comprehensive stock, fund, and ETF data.

Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.

Unlimited Access

Analyst Research
Gather in-depth, actionable insight on over 3,700 stock and mutual funds covered by Morningstar analysts. View our mutual fund Analyst Reports favored by professionals, savvy experienced investors, and new investors researching options for retirement savings, college plans, or other investment needs.
Portfolio X-Ray®
Ensure your portfolio is positioned exactly how you want with Morningstar's X-Ray Interpreter and Stock Intersection tools. A Barron's "Best of the Web" award winner for five years running, X-Ray Interpreter goes under the hood of your portfolio to provide a useful allocation, sector, and geographic analysis. And you can discover how much of a stock you really own, individually and through mutual funds, with Stock Intersection.
Investment Picks
Find new 5-star stocks (greatly undervalued companies) to consider daily. Our 5-star stock rating is a proven winner, consistently beating benchmarks like the S&P 500. Plus, browse our Fund Analyst Picks and Stewardship Grades to find shareholder-friendly mutual funds that are poised for outperformance.
Portfolio Monitor
Get a clear view of your investments with personalized reports about your portfolio. Receive monthly statements and generate reports on-demand to help you stay on track to meet your investment goals.

Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.

Content Partners
Morningstar - 2014/1/8 - Global Payments Reports Second Quarter Earnings
Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol |  Title Star Rating |  Category |  Total Assets |  Top Holdings |  Top Sectors |  Symbol |  Name Topic |  Sector |  Key Indicators |  User Interest |  Market Cap |  Industry Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol / Ticker |  Title Star Rating |  Category |  Total Assets |  Symbol / Ticker |  Name Title |  Date |  Author |  Collection |  Popularity |  Interest Title |  Date |  Company |  Symbol |  Interest |  Popularity Title |  Date |  Company |  Symbol |  Interest |  Popularity Title |  Date |  Author |  Collection |  Interest |  Popularity

Previous: Global Payments Reports First Quarter Earnings  |  Next: Global Payments Reports Third Quarter Earnings