Global Payments Reports Second Quarter Earnings
(Logo: http://photos.prnewswire.com/prnh/20010221/ATW031LOGO )
President and CEO
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
Annual fiscal 2014 GAAP diluted earnings per share are now expected to be
The company maintains its expectations for annual revenue of
Conference Call
About
This announcement and comments made by
Investor contact: |
Media contact: |
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770-829-8234 |
770-829-8755 |
SCHEDULE 1 |
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GAAP CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||
|
||||||||||||
(In thousands, except per share data) |
||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||
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 |
$ 73,897 |
$ 70,183 |
5.3% |
$ 138,540 |
$ 116,858 |
18.6% |
||||||
Earnings per share attributable to |
||||||||||||
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 |
||||||||||||
|
||||||||||||
(In thousands, except per share data) |
||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||
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 |
$ 77,885 |
$ 73,586 |
5.8% |
$ 152,074 |
$ 142,382 |
6.8% |
||||||
Earnings per share attributable to |
||||||||||||
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 |
||||||||||||
|
||||||||||||
(In thousands) |
||||||||||||
Three Months Ended November 30, |
||||||||||||
2013 |
2012 |
% Change |
||||||||||
GAAP |
Cash Earnings |
GAAP |
Cash Earnings |
GAAP |
Cash Earnings |
|||||||
Revenues: |
||||||||||||
|
$ 361,793 |
$ 361,793 |
$ 339,998 |
$ 339,998 |
6.4% |
6.4% |
||||||
|
85,240 |
85,240 |
80,770 |
80,770 |
5.5% |
5.5% |
||||||
|
447,033 |
447,033 |
420,768 |
420,768 |
6.2% |
6.2% |
||||||
|
146,866 |
146,866 |
131,161 |
131,161 |
12.0% |
12.0% |
||||||
|
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: |
||||||||||||
|
$ 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: |
||||||||||||
|
$ 725,626 |
$ 725,626 |
$ 685,896 |
$ 685,896 |
5.8% |
5.8% |
||||||
|
171,912 |
171,912 |
161,667 |
161,667 |
6.3% |
6.3% |
||||||
|
897,538 |
897,538 |
847,563 |
847,563 |
5.9% |
5.9% |
||||||
|
290,054 |
290,054 |
259,626 |
259,626 |
11.7% |
11.7% |
||||||
|
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 |
|
|
|
|
7.2% |
7.2% |
||||||
Operating income (loss) for segments: |
||||||||||||
|
$ 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 |
||||||||||||
See Schedule 8 for reconciliation of cash earnings segment information to GAAP. |
SCHEDULE 4 |
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CONSOLIDATED BALANCE SHEETS |
||||
|
||||
(In thousands, except share data) |
||||
|
|
|||
(unaudited) |
||||
Assets |
||||
Current assets: |
||||
Cash and cash equivalents |
$ 1,096,833 |
$ 680,470 |
||
Accounts receivable, net of allowances for doubtful accounts of |
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 |
- |
- |
||
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 |
|||||||
|
|||||||
(In thousands) |
|||||||
Six Months Ended |
|||||||
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 |
||||||||||
|
||||||||||
(In thousands, except per share data) |
||||||||||
Three Months Ended |
||||||||||
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 |
$ 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 |
||||||||||
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 |
$ 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 |
||||||||||
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 |
SCHEDULE 7 |
||||||||||
RECONCILIATION OF YEAR TO DATE CASH EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS TO GAAP |
||||||||||
|
||||||||||
(In thousands, except per share data) |
||||||||||
Six Months Ended |
||||||||||
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 |
$ 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 |
||||||||||
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 |
$ 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 |
||||||||||
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 |
SCHEDULE 8 |
||||||||||||||||||||
RECONCILIATION OF CASH EARNINGS SEGMENT INFORMATION TO GAAP |
||||||||||||||||||||
|
||||||||||||||||||||
(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: |
||||||||||||||||||||
|
$ 361,793 |
$ - |
$ - |
$ - |
$ 361,793 |
$ 339,998 |
$ - |
$ - |
$ - |
$ 339,998 |
||||||||||
|
85,240 |
- |
- |
- |
85,240 |
80,770 |
- |
- |
- |
80,770 |
||||||||||
|
447,033 |
- |
- |
- |
447,033 |
420,768 |
- |
- |
- |
420,768 |
||||||||||
|
146,866 |
- |
- |
- |
146,866 |
131,161 |
- |
- |
- |
131,161 |
||||||||||
|
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: |
||||||||||||||||||||
|
$ 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: |
||||||||||||||||||||
|
$ 725,626 |
$ - |
$ - |
$ - |
$ 725,626 |
$ 685,896 |
$ - |
$ - |
$ - |
$ 685,896 |
||||||||||
|
171,912 |
- |
- |
- |
171,912 |
161,667 |
- |
- |
- |
161,667 |
||||||||||
|
897,538 |
- |
- |
- |
897,538 |
847,563 |
- |
- |
- |
847,563 |
||||||||||
|
290,054 |
- |
- |
- |
290,054 |
259,626 |
- |
- |
- |
259,626 |
||||||||||
|
76,215 |
- |
- |
- |
76,215 |
71,636 |
- |
- |
- |
71,636 |
||||||||||
International merchant services |
366,269 |
- |
- |
- |
366,269 |
331,262 |
- |
- |
- |
331,262 |
||||||||||
Total revenues |
|
$ - |
$ - |
$ - |
|
|
$ - |
$ - |
$ - |
|
||||||||||
Operating income (loss) for segments: |
||||||||||||||||||||
|
$ 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 |
||||||||||||||||||||
3Represents acquisition intangible amortization expense. |
SCHEDULE 9 |
|||||||
OUTLOOK SUMMARY |
|||||||
|
|||||||
(In millions, except per share data) |
|||||||
Fiscal 2013 Actual |
Fiscal 2014 Outlook |
% Change FY13 |
|||||
Revenue Outlook |
|||||||
Total Revenues |
$ 2,376 |
|
6% to 8% |
||||
EPS Outlook |
|||||||
Cash EPS |
$ 3.65 |
|
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 |
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 |
SOURCE
News Provided by Acquire Media