July 25, 2013

Global Payments Reports Year-End Earnings

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.

News Provided by Acquire Media


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