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Press release from PR Newswire

Global Payments Reports Year-End Earnings

Thursday, July 25, 2013

Global Payments Reports Year-End Earnings

16:01 EDT Thursday, July 25, 2013

Establishes Fiscal 2014 Growth Expectations
Board Authorizes New $250 Million Share Repurchase Program
Announces Expanded Partnership with CaixaBank in Brazil

ATLANTA, July 25, 2013 /PRNewswire/ -- Global Payments Inc. (NYSE: GPN) today announced results for its fiscal fourth quarter and year ended May 31, 2013.  The company delivered revenues of $2.4 billion or 8% growth and cash earnings per share of $3.65 or 3% growth over prior year.

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

Chairman and CEO Paul R. Garcia said, "We are focused on delivering a strong fiscal 2014 with cash earnings per share growth of 8% to 10%.  Importantly, this includes a significant step up in annual security costs.  Excluding these costs, annual cash earnings per share growth for fiscal 2014 would be 12% to 14%.

"I am also delighted to announce that our Spanish partner, CaixaBank, will be taking a 50% share in Global Payments Brazil. This expands our strategic partnership with CaixaBank and will provide us the opportunity to grow more rapidly in this important region with potential further expansion into other Latin American markets over time," continued Garcia.

Full-Year 2013 Summary

  • Revenues grew 8% to $2,375.9 million, compared to $2,203.8 million in fiscal 2012.  
  • Cash diluted earnings per share1 grew 3% to $3.65, compared to $3.53 in the prior fiscal year.
  • GAAP full-year diluted earnings per share of $2.76, compared to $2.37 diluted earnings per share in the prior year.

Fourth Quarter 2013 Summary

  • Revenues grew 4% to $618.4 million, compared to $597.0 million in the fourth quarter of fiscal 2012.
  • Cash diluted earnings per share grew 1% to $0.98, compared to $0.97 in the fourth quarter of fiscal 2012.
  • GAAP diluted earnings per share were $0.53, compared to $0.06 in the fourth quarter of 2012.

2014 Outlook For the full-year of fiscal 2014, the company expects annual revenue of $2.51 billion to $2.56 billion, or 6% to 8% growth over fiscal 2013 and diluted earnings per share on a cash basis of $3.93 to $4.00, reflecting growth of 8% to 10% over fiscal 2013.  Annual fiscal 2014 GAAP diluted earnings per share is expected to be $3.35 to $3.42. 

New $250 Million Share Repurchase Authorization David E. Mangum, Senior Executive Vice President and CFO, stated, "I am pleased that the Board of Directors approved a new $250 million share repurchase authorization of Global Payments' stock. We intend to complete our previous $300 million share authorization in the first quarter of fiscal 2014, and the benefit from the original authorization is factored into our outlook for fiscal 2014."

Under the company's new program, Global Payments may repurchase shares in the open market or as otherwise may be determined by the company, subject to market conditions, business opportunities and other factors.  The company has no obligation to repurchase shares under this program.  This authorization has no expiration date and may be suspended or terminated at any time.  Repurchased shares will be retired but will be available for future issuance.  The company's expectations exclude the impact of any potential share repurchases under the new $250 million authorization.

Conference Call Global Payments will hold a conference call today, July 25, 2013 at 5:00 p.m. EDT 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 August 8, 2013.  

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 the United States, Canada, Brazil, 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, including sovereign insolvency situations and a decline in the value of the U.S. dollar, and 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

_________________________1 See Schedule 2 for Cash Earnings and Schedules 6 and 7 for Reconciliations of Cash Earnings to GAAP.

 

SCHEDULE 1

GAAP CONSOLIDATED STATEMENTS OF INCOME

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands, except per share data)

Three Months Ended May 31,

Year Ended May 31,

2013

2012

% Change

2013

2012

% Change

Revenues

$        618,352

$         597,032

4%

$      2,375,923

$    2,203,847

8%

Operating expenses:

  Cost of service

229,951

213,071

8%

862,075

784,756

10%

  Sales, general and administrative

290,568

289,712

0%

1,119,860

1,027,304

9%

  Processing system intrusion

28,464

84,438

(66%)

36,775

84,438

(56%)

548,983

587,221

(7%)

2,018,710

1,896,498

6%

Operating income

69,369

9,811

607%

357,213

307,349

16%

Other income (expense):

  Interest and other income

3,647

2,818

29%

10,353

9,946

4%

  Interest and other expense

(8,065)

(4,185)

93%

(33,282)

(16,848)

98%

(4,418)

(1,367)

223%

(22,929)

(6,902)

232%

Income before income taxes 

64,951

8,444

669%

334,284

300,447

11%

Income tax (provision) benefit

(18,585)

3,202

(680%)

(95,571)

(82,881)

15%

Net income

46,366

11,646

298%

238,713

217,566

10%

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

(5,561)

(6,560)

(15%)

(22,588)

(29,405)

(23%)

Net income attributable to Global Payments

$          40,805

$             5,086

702%

$         216,125

$       188,161

15%

Earnings per share attributable to Global Payments:

    Basic

$              0.54

$               0.06

800%

$               2.78

$             2.39

16%

    Diluted

$              0.53

$               0.06

783%

$               2.76

$             2.37

16%

Weighted average shares outstanding:

    Basic

76,034

78,539

77,767

78,829

    Diluted

76,651

79,192

78,227

79,431

 

 

SCHEDULE 2

CASH EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands, except per share data)

Three Months Ended May 31,

Year Ended May 31,

2013

2012

% Change

2013

2012

% Change

Revenues

$         618,352

$       597,032

4%

$      2,375,923

$    2,203,847

8%

Operating expenses:

  Cost of service

214,080

200,051

7%

803,952

734,060

10%

  Sales, general and administrative

285,017

274,390

4%

1,113,509

1,011,982

10%

499,097

474,441

5%

1,917,461

1,746,042

10%

Operating income

119,255

122,591

(3%)

458,462

457,805

0%

Other income (expense):

  Interest and other income

3,647

2,818

29%

10,353

9,946

4%

  Interest and other expense

(8,065)

(4,185)

93%

(24,899)

(16,848)

48%

(4,418)

(1,367)

223%

(14,546)

(6,902)

111%

Income before income taxes 

114,837

121,224

(5%)

443,916

450,903

(2%)

Provision for income taxes

(32,693)

(36,318)

(10%)

(126,294)

(133,455)

(5%)

Net income

82,144

84,906

(3%)

317,622

317,448

0%

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

(7,042)

(8,437)

(17%)

(32,206)

(37,193)

(13%)

Net income attributable to Global Payments

$           75,102

$         76,469

(2%)

$         285,416

$       280,255

2%

Basic earnings per share

$               0.99

$             0.97

2%

$               3.67

$             3.56

3%

Diluted earnings per share

$               0.98

$             0.97

1%

$               3.65

$             3.53

3%

Weighted average shares outstanding:

    Basic

76,034

78,539

77,767

78,829

    Diluted

76,651

79,192

78,227

79,431

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 May 31, 

2013

2012

 % Change 

 GAAP 

Cash

Earnings

 GAAP 

Cash

Earnings

 GAAP 

Cash

Earnings

Revenues:

United States

$    372,425

$    372,425

$    351,872

$    351,872

6%

6%

Canada

77,115

77,115

79,015

79,015

(2%)

(2%)

  North America merchant services

449,540

449,540

430,887

430,887

4%

4%

Europe

132,217

132,217

128,521

128,521

3%

3%

Asia-Pacific

36,595

36,595

37,624

37,624

(3%)

(3%)

  International merchant services

168,812

168,812

166,145

166,145

2%

2%

  Total revenues

$    618,352

$    618,352

$    597,032

$    597,032

4%

4%

Operating income (loss) for segments:

North America merchant services

$      69,101

$      80,229

$      76,412

$      81,194

(10%)

(1%)

International merchant services

48,295

57,460

48,074

61,664

0%

(7%)

Corporate1

(48,027)

(18,434)

(114,675)

(20,267)

58%

9%

  Operating income

$      69,369

$    119,255

$        9,811

$    122,591

607%

(3%)

 Year Ended May 31, 

2013

2012

 % Change 

 GAAP 

Cash

Earnings

 GAAP 

Cash

Earnings

 GAAP 

Cash

Earnings

Revenues:

United States

$ 1,394,675

$ 1,394,675

$ 1,234,818

$ 1,234,818

13%

13%

Canada

311,000

311,000

332,434

332,434

(6%)

(6%)

  North America merchant services

1,705,675

1,705,675

1,567,252

1,567,252

9%

9%

Europe

522,593

522,593

489,300

489,300

7%

7%

Asia-Pacific

147,655

147,655

147,295

147,295

0%

0%

  International merchant services

670,248

670,248

636,595

636,595

5%

5%

  Total revenues

$ 2,375,923

$ 2,375,923

$ 2,203,847

$ 2,203,847

8%

8%

Operating income (loss) for segments:

North America merchant services

$    258,910

$    288,162

$    281,305

$    295,003

(8%)

(2%)

International merchant services

211,242

245,279

196,137

238,487

8%

3%

Corporate1

(112,939)

(74,979)

(170,093)

(75,685)

34%

1%

Operating income

$    357,213

$    458,462

$    307,349

$    457,805

16%

0%

1GAAP results include data intrusion charges of $28.5 million and $36.8 million for the three and twelve months ended  May 31, 2013 respectively and $84.4 million for the three and twelve months ended May 31, 2012

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)

May 31, 2013

May 31,2012

Assets

Current assets:

Cash and cash equivalents

$         680,470

$       781,275

Accounts receivable, net of allowances for doubtful accounts of $509 and $532, respectively

189,435

182,962

Claims receivable, net of allowance for losses of $3,144 and $3,435, respectively

1,156

1,029

Settlement processing assets

259,204

217,994

Inventory

11,057

9,864

Deferred income taxes

6,485

21,969

Prepaid expenses and other current assets

66,685

33,646

Total current assets

1,214,492

1,248,739

Goodwill

1,044,222

724,687

Other intangible assets, net of accumulated amortization of $290,660 and $235,296, respectively

400,848

290,188

Property and equipment, net of accumulated depreciation of $156,948 and $161,911, respectively

348,064

305,848

Deferred income taxes

95,178

97,235

Other

22,252

21,446

Total assets

$      3,125,056

$    2,688,143

Liabilities and Equity

Current liabilities:

Lines of credit

$         187,461

$       215,391

Current portion of long-term debt

72,335

76,420

Accounts payable and accrued liabilities

262,890

316,313

Settlement processing obligations

162,558

216,878

Income taxes payable

18,870

12,283

  Total current liabilities

704,114

837,285

Long-term debt

891,134

236,565

Deferred income taxes

170,723

106,644

Other long-term liabilities

72,478

62,306

Total liabilities

1,838,449

1,242,800

Commitments and contingencies

Redeemable noncontrolling interest

-

144,422

Equity:

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

-

-

 Common stock, no par value; 200,000,000 shares authorized; 75,426,099 and

 78,551,297 issued and outstanding at May 31, 2013 and 2012, respectively

 Paid-in capital

202,396

358,728

 Retained earnings

958,751

843,456

 Accumulated other comprehensive loss

(15,062)

(30,000)

      Total Global Payments shareholders' equity

1,146,085

1,172,184

 Noncontrolling interest

140,522

128,737

 Total equity

1,286,607

1,300,921

Total liabilities and equity

$      3,125,056

$    2,688,143

 

SCHEDULE 5

CONSOLIDATED STATEMENTS OF CASH FLOWS

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)

Year Ended May 31,

2013

2012

Cash flows from operating activities:

Net income

$  238,713

$  217,566

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

Depreciation and amortization of property and equipment

55,023

48,403

Amortization of acquired intangibles

56,765

50,696

Share-based compensation expense

18,427

16,391

Provision for operating losses and bad debts

21,659

22,417

Deferred income taxes

33,112

(19,498)

Other, net

(4,878)

(2,775)

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

Accounts receivable

(5,458)

(16,422)

Claims receivable

(11,858)

(13,519)

Settlement processing assets and obligations, net

(104,007)

(568,335)

Inventory

(1,187)

(2,394)

Prepaid expenses and other assets

(22,978)

3,511

Accounts payable and other accrued liabilities

(39,374)

85,875

Income taxes payable

6,587

4,609

Net cash provided by (used in) operating activities

240,546

(173,475)

Cash flows from investing activities:

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

(434,016)

(44,274)

Capital expenditures

(98,590)

(109,876)

Net decrease in financing receivables

2,812

2,565

Proceeds from sale of investment and contractual rights

1,227

1,152

Net cash used in investing activities

(528,567)

(150,433)

Cash flows from financing activities:

Net payments on short-term lines of credit

(27,930)

(55,354)

Proceeds from issuance of long-term debt

1,135,327

146,374

Principal payments under long-term debt

(482,349)

(184,235)

Acquisition of redeemable noncontrolling interest

(242,000)

-

Payment of debt issuance cost

(3,987)

-

Proceeds from stock issued under employee stock plans

10,543

11,446

Common stock repurchased - share-based compensation plans

(10,244)

(4,861)

Repurchase of common stock

(175,297)

(99,604)

Tax benefit from employee share-based compensation 

1,863

1,441

Distribution to noncontrolling interests

(16,206)

(27,082)

Dividends paid

(6,198)

(6,311)

Net cash provided by (used in) financing activities

183,522

(218,186)

Effect of exchange rate changes on cash

3,694

(30,916)

(Decrease) increase in cash and cash equivalents

(100,805)

(573,010)

Cash and cash equivalents, beginning of period

781,275

1,354,285

Cash and cash equivalents, end of period

$  680,470

$  781,275

 

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 May 31, 2013

GAAP

Processing

System Intrusion

Other1

Cash Earnings Adjustments2

Cash Earnings

Revenues

$         618,352

$                   -

$                   -

$                   -

$         618,352

Operating expenses:

   Cost of service

229,951

-

(1,197)

(14,674)

214,080

   Sales, general and administrative

290,568

-

(5,551)

-

285,017

   Processing system intrusion

28,464

(28,464)

-

-

-

548,983

(28,464)

(6,748)

(14,674)

499,097

Operating income

69,369

28,464

6,748

14,674

119,255

Other income (expense):

   Interest and other income

3,647

-

-

-

3,647

   Interest and other expense

(8,065)

-

-

-

(8,065)

(4,418)

-

-

-

(4,418)

Income before income taxes 

64,951

28,464

6,748

14,674

114,837

Provision for income taxes

(18,585)

(8,865)

(1,053)

(4,190)

(32,693)

Net income

46,366

19,599

5,695

10,484

82,144

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

(5,561)

-

-

(1,481)

(7,042)

Net income attributable to Global Payments

$           40,805

$           19,599

$             5,695

$             9,003

$           75,102

Diluted shares

76,651

76,651

Diluted earnings per share

$               0.53

$               0.26

$               0.07

$               0.12

$               0.98

Three Months Ended May 31, 2012

GAAP

Processing System Intrusion

Other1

Cash Earnings Adjustments2

Cash Earnings

Revenues

$         597,032

$                   -

$                   -

$                   -

$         597,032

Operating expenses:

   Cost of service

213,071

-

-

(13,020)

200,051

   Sales, general and administrative

289,712

-

(15,322)

-

274,390

   Processing system intrusion

84,438

(84,438)

-

-

-

587,221

(84,438)

(15,322)

(13,020)

474,441

Operating income

9,811

84,438

15,322

13,020

122,591

Other income (expense):

   Interest and other income

2,818

-

-

-

2,818

   Interest and other expense

(4,185)

-

-

-

(4,185)

(1,367)

-

-

-

(1,367)

Income before income taxes 

8,444

84,438

15,322

13,020

121,224

Benefit (provision) for income taxes

3,202

(30,666)

(5,034)

(3,820)

(36,318)

Net income

11,646

53,772

10,288

9,200

84,906

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

(6,560)

-

-

(1,877)

(8,437)

Net income attributable to Global Payments

$             5,086

$           53,772

$           10,288

$             7,323

$           76,469

Diluted shares

79,192

79,192

Diluted earnings per share

$               0.06

$               0.68

$               0.13

$               0.10

$               0.97

1Represents one-time charges primarily related to employee termination benefits and certain contract settlement and related costs.

2Represents 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 May 31, 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 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.

 

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)

Year Ended May 31, 2013

GAAP

Processing

System Intrusion

Other1

Cash Earnings Adjustments2

Cash Earnings

Revenues

$      2,375,923

$                   -

$                   -

$                   -

$      2,375,923

Operating expenses:

   Cost of service

862,075

-

(1,358)

(56,765)

803,952

   Sales, general and administrative

1,119,860

-

(6,351)

-

1,113,509

   Processing system intrusion

36,775

(36,775)

-

-

-

2,018,710

(36,775)

(7,709)

(56,765)

1,917,461

Operating income

357,213

36,775

7,709

56,765

458,462

Other income (expense):

   Interest and other income

10,353

-

-

-

10,353

   Interest and other expense

(33,282)

-

8,383

-

(24,899)

(22,929)

-

8,383

-

(14,546)

Income before income taxes 

334,284

36,775

16,092

56,765

443,916

Provision for income taxes

(95,571)

(11,913)

(2,586)

(16,224)

(126,294)

Net income

238,713

24,862

13,506

40,541

317,622

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

(22,588)

-

(3,594)

(6,024)

(32,206)

Net income attributable to Global Payments

$         216,125

$           24,862

$             9,912

$           34,517

$         285,416

Diluted shares

78,227

78,227

Diluted earnings per share

$               2.76

$               0.32

$               0.13

$               0.44

$               3.65

Year Ended May 31, 2012

GAAP

Processing System Intrusion

Other1

Cash Earnings Adjustments2

Cash Earnings

Revenues

$      2,203,847

$                   -

$                   -

$                   -

$      2,203,847

Operating expenses:

   Cost of service

784,756

-

-

(50,696)

734,060

   Sales, general and administrative

1,027,304

-

(15,322)

-

1,011,982

   Processing system intrusion

84,438

(84,438)

-

-

-

1,896,498

(84,438)

(15,322)

(50,696)

1,746,042

Operating income

307,349

84,438

15,322

50,696

457,805

Other income (expense):

   Interest and other income

9,946

-

-

-

9,946

   Interest and other expense

(16,848)

-

-

-

(16,848)

(6,902)

-

-

-

(6,902)

Income before income taxes 

300,447

84,438

15,322

50,696

450,903

Provision for income taxes

(82,881)

(30,640)

(5,034)

(14,900)

(133,455)

Net income

217,566

53,798

10,288

35,796

317,448

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

(29,405)

-

-

(7,788)

(37,193)

Net income attributable to Global Payments

$         188,161

$           53,798

$           10,288

$           28,008

$         280,255

Diluted shares

79,431

79,431

Diluted earnings per share

$               2.37

$               0.68

$               0.13

$               0.35

$               3.53

1Represents one-time charges primarily related to employee termination benefits and certain contract settlement and related costs.

2Represents 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 May 31, 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 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.

 

 

SCHEDULE 8

RECONCILIATION OF CASH EARNINGS SEGMENT INFORMATION TO GAAP

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)

 Three Months Ended May 31, 

2013

2012

 GAAP 

Processing System Intrusion

Other1

Cash Earnings Adjustments2

 Cash Earnings 

 GAAP 

Processing System Intrusion

Other1

Cash Earnings Adjustments2

 Cash Earnings 

Revenues:

United States

$      372,425

$               -

$               -

$               -

$      372,425

$      351,872

$               -

$               -

$               -

$      351,872

Canada

77,115

-

-

-

77,115

79,015

-

-

-

79,015

North America merchant services

449,540

-

-

-

449,540

430,887

-

-

-

430,887

Europe

132,217

-

-

-

132,217

128,521

-

-

-

128,521

Asia-Pacific

36,595

-

-

-

36,595

37,624

-

-

-

37,624

International merchant services

168,812

-

-

-

168,812

166,145

-

-

-

166,145

Total revenues

$      618,352

$               -

$               -

$               -

$      618,352

$      597,032

$               -

$               -

$               -

$      597,032

Operating income:

North America merchant services

$        69,101

$               -

$          4,688

$          6,440

$        80,229

$        76,412

$               -

$          1,538

$          3,244

$        81,194

International merchant services

48,295

53

878

8,234

57,460

48,074

-

3,814

9,776

61,664

Corporate

(48,027)

28,411

1,182

-

(18,434)

(114,675)

84,438

9,970

-

(20,267)

Operating income

$        69,369

$        28,464

$          6,748

$        14,674

$      119,255

$          9,811

$        84,438

$        15,322

$        13,020

$      122,591

 Year Ended May 31, 

2013

2012

 GAAP 

Processing System Intrusion

Other1

Cash Earnings Adjustments2

 Cash Earnings 

 GAAP 

Processing System Intrusion

Other1

Cash Earnings Adjustments2

 Cash Earnings 

Revenues:

United States

$   1,394,675

$               -

$               -

$               -

$   1,394,675

$   1,234,818

$               -

$               -

$               -

$   1,234,818

Canada

311,000

-

-

-

311,000

332,434

-

-

-

332,434

North America merchant services

1,705,675

-

-

-

1,705,675

1,567,252

-

-

-

1,567,252

Europe

522,593

-

-

-

522,593

489,300

-

-

-

489,300

Asia-Pacific

147,655

-

-

-

147,655

147,295

-

-

-

147,295

International merchant services

670,248

-

-

-

670,248

636,595

-

-

-

636,595

Total revenues

$   2,375,923

$               -

$               -

$               -

$   2,375,923

$   2,203,847

$               -

$               -

$               -

$   2,203,847

Operating income (loss) for segments:

North America merchant services

$      258,910

$               -

$          5,593

$        23,659

$      288,162

$      281,305

$               -

$          1,538

$        12,160

$      295,003

International merchant services

211,242

53

878

33,106

245,279

196,137

-

3,814

38,536

238,487

Corporate

(112,939)

36,722

1,238

-

(74,979)

(170,093)

84,438

9,970

-

(75,685)

Operating income

$      357,213

$        36,775

$          7,709

$        56,765

$      458,462

$      307,349

$        84,438

$        15,322

$        50,696

$      457,805

1Represents one-time charges primarily related to employee termination benefits and certain contract settlement and related costs.

2 Represents 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

$3.93 to $4.00

8% to 10%

Acquisition-related intangibles assets, non-recurring items and 

    processing system intrusion 1

(0.89)

($0.58)

35%

GAAP Diluted EPS 

$         2.76

 $3.35 to $3.42 

21% to 24%

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 and processing system intrusion costs. 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.

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