Global Payments Reports Second Quarter 2024 Results
-
Second quarter 2024 GAAP diluted earnings per share (EPS) of
$1.47 , an increase of 40%, and adjusted EPS of$2.93 , an increase of 12% -
Second quarter 2024 GAAP revenue of
$2.57 billion , an increase of 5%, and adjusted net revenue of$2.32 billion , an increase of 6% - Reaffirms outlook for 2024
-
Announces official commerce technology partnership with
Diamond Baseball Holdings - Renews long-standing issuer relationship with NatWest
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240807386498/en/
"We delivered high single-digit adjusted net revenue growth, excluding the Netspend divestiture, and double-digit adjusted earnings per share growth in the second quarter,” said
Bready continued, “We continue to see good momentum with our point-of-sale solutions, and are pleased to announce a new agreement with
Bready concluded, “We are also finalizing the review of our business that we began earlier this year and have identified meaningful opportunities to better align our organization to continue to drive sustainable growth. We are focused on simplifying our business and streamlining our operations to deliver product-led, customer-centric solutions, while further emphasizing service as a key differentiator.”
Second Quarter 2024 Summary
-
GAAP revenues were
$2.57 billion , compared to$2.45 billion in 2023; diluted earnings per share were$1.47 , compared to$1.05 in the prior year; and operating margin was 22.3%, compared to 24.6% in the prior year. -
Adjusted net revenues increased 6% to
$2.32 billion , compared to$2.20 billion in the second quarter of 2023. -
Adjusted earnings per share increased 12% to
$2.93 , compared to$2.62 in the second quarter of 2023. - Adjusted operating margin expanded 40 basis points to 45.2%.
2024 Outlook
“We are pleased with our financial performance in the second quarter, and overall execution across the business,” said
Whipple continued, “The company continues to expect adjusted net revenue to be in a range of
Whipple concluded, “Our outlook continues to reflect the potential for a slightly more tempered economic environment in the second half of 2024.”
Capital Allocation
Global Payments’ Board of Directors approved a dividend of
Investor Conference
Conference Call
Global Payments’ management will host a live audio webcast today,
Non-GAAP Financial Measures
Reconciliations of each of the non-GAAP financial measures to the most directly comparable GAAP measure are included in the schedules to this release, except for forward-looking measures where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the items that are excluded from the non-GAAP outlook measures.
About
Headquartered in
Forward-Looking Statements
Investors are cautioned that some of the statements we use in this release contain forward-looking statements and are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which we operate, and beliefs of and assumptions made by our management, involve risks and uncertainties that could significantly affect the financial condition, results of operations, business plans and the future performance of
In addition to factors previously disclosed in Global Payments’ reports filed with the
These cautionary statements qualify all of our forward-looking statements, and you are cautioned not to place undue reliance on these forward-looking statements. Our forward-looking statements speak only as of the date they are made and should not be relied upon as representing our plans and expectations as of any subsequent date. While we may elect to update or revise forward-looking statements at some time in the future, we specifically disclaim any obligation to publicly release the results of any revisions to our forward-looking statements, except as required by law.
SCHEDULE 1 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share data) |
|||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
$ |
2,568,768 |
|
|
$ |
2,452,469 |
|
|
4.7 |
% |
|
$ |
4,988,955 |
|
|
$ |
4,744,916 |
|
|
5.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of service |
|
938,484 |
|
|
|
941,952 |
|
|
(0.4 |
)% |
|
|
1,860,874 |
|
|
|
1,889,705 |
|
|
(1.5 |
)% |
Selling, general and administrative |
|
1,057,661 |
|
|
|
1,013,514 |
|
|
4.4 |
% |
|
|
2,103,206 |
|
|
|
2,056,641 |
|
|
2.3 |
% |
Net (gain) loss on business dispositions |
|
— |
|
|
|
(105,738 |
) |
|
nm |
|
|
— |
|
|
|
139,095 |
|
|
nm |
||
|
|
1,996,145 |
|
|
|
1,849,728 |
|
|
|
|
|
3,964,080 |
|
|
|
4,085,441 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income |
|
572,623 |
|
|
|
602,741 |
|
|
(5.0 |
)% |
|
|
1,024,875 |
|
|
|
659,475 |
|
|
55.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and other income |
|
35,306 |
|
|
|
27,944 |
|
|
26.3 |
% |
|
|
71,234 |
|
|
|
39,097 |
|
|
82.2 |
% |
Interest and other expense |
|
(159,157 |
) |
|
|
(191,423 |
) |
|
(16.9 |
)% |
|
|
(321,304 |
) |
|
|
(314,368 |
) |
|
2.2 |
% |
|
|
(123,851 |
) |
|
|
(163,479 |
) |
|
|
|
|
(250,070 |
) |
|
|
(275,271 |
) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income taxes and equity in income of equity method investments |
|
448,772 |
|
|
|
439,262 |
|
|
2.2 |
% |
|
|
774,805 |
|
|
|
384,204 |
|
|
101.7 |
% |
Income tax expense |
|
77,834 |
|
|
|
172,211 |
|
|
(54.8 |
)% |
|
|
97,216 |
|
|
|
140,812 |
|
|
(31.0 |
)% |
Income before equity in income of equity method investments |
|
370,938 |
|
|
|
267,051 |
|
|
38.9 |
% |
|
|
677,589 |
|
|
|
243,392 |
|
|
178.4 |
% |
Equity in income of equity method investments, net of tax |
|
18,337 |
|
|
|
17,155 |
|
|
6.9 |
% |
|
|
34,748 |
|
|
|
36,394 |
|
|
(4.5 |
)% |
Net income |
|
389,275 |
|
|
|
284,206 |
|
|
37.0 |
% |
|
|
712,337 |
|
|
|
279,786 |
|
|
154.6 |
% |
Net income attributable to noncontrolling interests |
|
(14,515 |
) |
|
|
(10,058 |
) |
|
44.3 |
% |
|
|
(24,270 |
) |
|
|
(16,679 |
) |
|
45.5 |
% |
Net income attributable to |
$ |
374,760 |
|
|
$ |
274,148 |
|
|
36.7 |
% |
|
$ |
688,067 |
|
|
$ |
263,107 |
|
|
161.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share attributable to |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings per share |
$ |
1.47 |
|
|
$ |
1.05 |
|
|
40.0 |
% |
|
$ |
2.69 |
|
|
$ |
1.00 |
|
|
169.0 |
% |
Diluted earnings per share |
$ |
1.47 |
|
|
$ |
1.05 |
|
|
40.0 |
% |
|
$ |
2.68 |
|
|
$ |
1.00 |
|
|
168.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average number of shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
254,748 |
|
|
|
260,827 |
|
|
|
|
|
255,837 |
|
|
|
261,965 |
|
|
|
||
Diluted |
|
255,166 |
|
|
|
261,328 |
|
|
|
|
|
256,377 |
|
|
|
262,394 |
|
|
|
||
Note: nm = not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE 2 NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(In thousands, except per share data) |
|||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net revenue |
$ |
2,324,121 |
|
|
$ |
2,202,827 |
|
|
5.5 |
% |
|
$ |
4,508,060 |
|
|
$ |
4,252,284 |
|
|
6.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted operating income |
$ |
1,050,329 |
|
|
$ |
986,980 |
|
|
6.4 |
% |
|
$ |
1,999,951 |
|
|
$ |
1,869,494 |
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income attributable to |
$ |
748,770 |
|
|
$ |
685,308 |
|
|
9.3 |
% |
|
$ |
1,415,283 |
|
|
$ |
1,316,570 |
|
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted diluted earnings per share attributable to |
$ |
2.93 |
|
|
$ |
2.62 |
|
|
11.9 |
% |
|
$ |
5.52 |
|
|
$ |
5.02 |
|
|
10.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Supplemental Non-GAAP(1) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net revenue(1) |
$ |
2,324,121 |
|
|
$ |
2,173,242 |
|
|
6.9 |
% |
|
$ |
4,508,060 |
|
|
$ |
4,106,842 |
|
|
9.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted operating income(1) |
$ |
1,050,329 |
|
|
$ |
971,067 |
|
|
8.2 |
% |
|
$ |
1,999,951 |
|
|
$ |
1,796,264 |
|
|
11.3 |
% |
______________________________ | |
(1) |
The supplemental non-GAAP information reflects the divestiture of our consumer business which closed in |
|
|
See Schedule 6 for a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure, Schedule 7 for a reconciliation of adjusted net revenue and adjusted operating income by segment and supplemental non-GAAP information to the most comparable GAAP measure, and Schedule 8 for a discussion of non-GAAP financial measures. |
SCHEDULE 3 SEGMENT INFORMATION (UNAUDITED)
(In thousands) |
||||||||||||||||||||||
|
|
Three Months Ended |
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
% Change |
||||||||||||||||
|
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchant Solutions |
|
$ |
1,971,025 |
|
|
$ |
1,812,619 |
|
|
$ |
1,842,293 |
|
|
$ |
1,682,143 |
|
|
7.0 |
% |
|
7.8 |
% |
Issuer Solutions |
|
|
613,508 |
|
|
|
526,492 |
|
|
|
590,441 |
|
|
|
505,283 |
|
|
3.9 |
% |
|
4.2 |
% |
Consumer Solutions |
|
|
— |
|
|
|
— |
|
|
|
39,031 |
|
|
|
33,785 |
|
|
nm |
|
nm |
||
Intersegment eliminations |
|
|
(15,765 |
) |
|
|
(14,989 |
) |
|
|
(19,296 |
) |
|
|
(18,384 |
) |
|
18.3 |
% |
|
18.5 |
% |
|
|
$ |
2,568,768 |
|
|
$ |
2,324,121 |
|
|
$ |
2,452,469 |
|
|
$ |
2,202,827 |
|
|
4.7 |
% |
|
5.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchant Solutions |
|
$ |
672,525 |
|
|
$ |
884,774 |
|
|
$ |
603,548 |
|
|
$ |
815,236 |
|
|
11.4 |
% |
|
8.5 |
% |
Issuer Solutions |
|
|
110,375 |
|
|
|
246,622 |
|
|
|
95,701 |
|
|
|
235,910 |
|
|
15.3 |
% |
|
4.5 |
% |
Consumer Solutions |
|
|
— |
|
|
|
— |
|
|
|
1,890 |
|
|
|
15,913 |
|
|
nm |
|
nm |
||
Corporate |
|
|
(210,277 |
) |
|
|
(81,067 |
) |
|
|
(204,136 |
) |
|
|
(80,079 |
) |
|
(3.0 |
)% |
|
(1.2 |
)% |
Gain on business disposition |
|
|
— |
|
|
|
— |
|
|
|
105,738 |
|
|
|
— |
|
|
nm |
|
nm |
||
|
|
$ |
572,623 |
|
|
$ |
1,050,329 |
|
|
$ |
602,741 |
|
|
$ |
986,980 |
|
|
(5.0 |
)% |
|
6.4 |
% |
|
|
Six Months Ended |
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
% Change |
||||||||||||||||
|
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchant Solutions |
|
$ |
3,805,119 |
|
|
$ |
3,496,002 |
|
|
$ |
3,447,903 |
|
|
$ |
3,138,533 |
|
|
10.4 |
% |
|
11.4 |
% |
Issuer Solutions |
|
|
1,216,243 |
|
|
|
1,042,102 |
|
|
|
1,161,349 |
|
|
|
995,500 |
|
|
4.7 |
% |
|
4.7 |
% |
Consumer Solutions |
|
|
— |
|
|
|
— |
|
|
|
182,740 |
|
|
|
163,027 |
|
|
nm |
|
nm |
||
Intersegment Elimination |
|
|
(32,407 |
) |
|
|
(30,044 |
) |
|
|
(47,076 |
) |
|
|
(44,776 |
) |
|
31.2 |
% |
|
32.9 |
% |
|
|
$ |
4,988,955 |
|
|
$ |
4,508,060 |
|
|
$ |
4,744,916 |
|
|
$ |
4,252,284 |
|
|
5.1 |
% |
|
6.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchant Solutions |
|
$ |
1,252,962 |
|
|
$ |
1,675,186 |
|
|
$ |
1,110,757 |
|
|
$ |
1,503,516 |
|
|
12.8 |
% |
|
11.4 |
% |
Issuer Solutions |
|
|
216,472 |
|
|
|
488,024 |
|
|
|
178,511 |
|
|
|
451,152 |
|
|
21.3 |
% |
|
8.2 |
% |
Consumer Solutions |
|
|
— |
|
|
|
— |
|
|
|
(3,908 |
) |
|
|
73,230 |
|
|
nm |
|
nm |
||
Corporate |
|
|
(444,559 |
) |
|
|
(163,259 |
) |
|
|
(486,790 |
) |
|
|
(158,404 |
) |
|
8.7 |
% |
|
(3.1 |
)% |
Net gain (loss) on business dispositions |
|
|
— |
|
|
|
— |
|
|
|
(139,095 |
) |
|
|
— |
|
|
nm |
|
nm |
||
|
|
$ |
1,024,875 |
|
|
$ |
1,999,951 |
|
|
$ |
659,475 |
|
|
$ |
1,869,494 |
|
|
55.4 |
% |
|
7.0 |
% |
______________________________ | |
See Schedules 8 and 9 for a reconciliation of adjusted net revenue and adjusted operating income by segment to the most comparable GAAP measures and Schedule 10 for a discussion of non-GAAP financial measures. | |
Note: Amounts may not sum due to rounding. | |
Note: nm = not meaningful. |
SCHEDULE 4 CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except share data) |
|||||||
|
|
|
|
||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
2,097,159 |
|
|
$ |
2,088,887 |
|
Accounts receivable, net |
|
1,134,292 |
|
|
|
1,120,078 |
|
Settlement processing assets |
|
4,496,778 |
|
|
|
4,097,417 |
|
Prepaid expenses and other current assets |
|
822,103 |
|
|
|
767,377 |
|
Total current assets |
|
8,550,332 |
|
|
|
8,073,759 |
|
|
|
26,860,500 |
|
|
|
26,743,523 |
|
Other intangible assets, net |
|
9,607,299 |
|
|
|
10,168,046 |
|
Property and equipment, net |
|
2,309,347 |
|
|
|
2,190,005 |
|
Deferred income taxes |
|
80,053 |
|
|
|
111,712 |
|
Notes receivable |
|
741,478 |
|
|
|
713,123 |
|
Other noncurrent assets |
|
2,603,149 |
|
|
|
2,570,018 |
|
Total assets |
$ |
50,752,158 |
|
|
$ |
50,570,186 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Settlement lines of credit |
$ |
1,010,032 |
|
|
$ |
981,244 |
|
Current portion of long-term debt |
|
1,565,024 |
|
|
|
620,585 |
|
Accounts payable and accrued liabilities |
|
2,680,738 |
|
|
|
2,824,979 |
|
Settlement processing obligations |
|
4,073,557 |
|
|
|
3,698,921 |
|
Total current liabilities |
|
9,329,351 |
|
|
|
8,125,729 |
|
Long-term debt |
|
15,611,948 |
|
|
|
15,692,297 |
|
Deferred income taxes |
|
2,010,628 |
|
|
|
2,242,105 |
|
Other noncurrent liabilities |
|
639,179 |
|
|
|
722,540 |
|
Total liabilities |
|
27,591,106 |
|
|
|
26,782,671 |
|
Commitments and contingencies |
|
|
|
||||
Redeemable noncontrolling interests |
|
147,400 |
|
|
|
507,965 |
|
Equity: |
|
|
|
||||
Preferred stock, no par value; 5,000,000 shares authorized and none issued |
|
— |
|
|
|
— |
|
Common stock, no par value; 400,000,000 shares authorized at |
|
— |
|
|
|
— |
|
Paid-in capital |
|
18,761,494 |
|
|
|
19,800,953 |
|
Retained earnings |
|
4,018,207 |
|
|
|
3,457,182 |
|
Accumulated other comprehensive loss |
|
(392,287 |
) |
|
|
(258,925 |
) |
Total |
|
22,387,414 |
|
|
|
22,999,210 |
|
Nonredeemable noncontrolling interests |
|
626,238 |
|
|
|
280,340 |
|
Total equity |
|
23,013,652 |
|
|
|
23,279,550 |
|
Total liabilities, redeemable noncontrolling interests and equity |
$ |
50,752,158 |
|
|
$ |
50,570,186 |
|
SCHEDULE 5 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands) |
|||||||
|
Six Months Ended |
||||||
|
|
|
|
||||
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
712,337 |
|
|
$ |
279,786 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization of property and equipment |
|
241,943 |
|
|
|
223,753 |
|
Amortization of acquired intangibles |
|
689,157 |
|
|
|
645,675 |
|
Amortization of capitalized contract costs |
|
68,019 |
|
|
|
59,065 |
|
Share-based compensation expense |
|
83,362 |
|
|
|
136,701 |
|
Provision for operating losses and credit losses |
|
41,026 |
|
|
|
61,313 |
|
Noncash lease expense |
|
29,741 |
|
|
|
32,362 |
|
Deferred income taxes |
|
(184,963 |
) |
|
|
(317,660 |
) |
Paid-in-kind interest capitalized to principal of notes receivable |
|
(35,868 |
) |
|
|
(12,165 |
) |
Equity in income of equity method investments, net of tax |
|
(34,748 |
) |
|
|
(36,394 |
) |
Net loss on business dispositions |
|
— |
|
|
|
139,095 |
|
Other, net |
|
23,023 |
|
|
|
13,574 |
|
Changes in operating assets and liabilities, net of the effects of business combinations: |
|
|
|
||||
Accounts receivable |
|
(29,658 |
) |
|
|
(58,981 |
) |
Settlement processing assets and obligations, net |
|
(57,718 |
) |
|
|
213,936 |
|
Prepaid expenses and other assets |
|
(160,058 |
) |
|
|
(191,478 |
) |
Accounts payable and other liabilities |
|
(232,396 |
) |
|
|
(24,099 |
) |
Net cash provided by operating activities |
|
1,153,199 |
|
|
|
1,164,483 |
|
Cash flows from investing activities: |
|
|
|
||||
Business combinations and other acquisitions, net of cash and restricted cash acquired |
|
(372,662 |
) |
|
|
(4,101,415 |
) |
Capital expenditures |
|
(324,657 |
) |
|
|
(331,002 |
) |
Issuance of notes receivable |
|
— |
|
|
|
(50,000 |
) |
Net cash from sales of businesses |
|
— |
|
|
|
478,695 |
|
Other, net |
|
6 |
|
|
|
2,186 |
|
Net cash used in investing activities |
|
(697,313 |
) |
|
|
(4,001,536 |
) |
Cash flows from financing activities: |
|
|
|
||||
Net borrowings from (repayments of) settlement lines of credit |
|
55,351 |
|
|
|
(233,075 |
) |
Net borrowings from (repayments of) commercial paper notes |
|
(936,539 |
) |
|
|
1,841,675 |
|
Proceeds from long-term debt |
|
6,288,994 |
|
|
|
7,359,193 |
|
Repayments of long-term debt |
|
(4,430,074 |
) |
|
|
(5,673,724 |
) |
Payments of debt issuance costs |
|
(33,056 |
) |
|
|
(12,255 |
) |
Repurchases of common stock |
|
(900,047 |
) |
|
|
(418,271 |
) |
Proceeds from stock issued under share-based compensation plans |
|
25,137 |
|
|
|
19,282 |
|
Common stock repurchased - share-based compensation plans |
|
(43,279 |
) |
|
|
(33,680 |
) |
Distributions to noncontrolling interests |
|
(10,881 |
) |
|
|
(17,255 |
) |
Contributions from noncontrolling interests |
|
2,116 |
|
|
|
— |
|
Payment of deferred consideration in business combination |
|
(6,390 |
) |
|
|
— |
|
Purchase of capped calls related to issuance of convertible notes |
|
(256,250 |
) |
|
|
— |
|
Dividends paid |
|
(127,042 |
) |
|
|
(130,635 |
) |
Net cash provided by (used in) financing activities |
|
(371,960 |
) |
|
|
2,701,255 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(53,652 |
) |
|
|
34,543 |
|
Increase (decrease) in cash, cash equivalents and restricted cash |
|
30,274 |
|
|
|
(101,255 |
) |
Cash, cash equivalents and restricted cash, beginning of the period |
|
2,256,875 |
|
|
|
2,215,606 |
|
Cash, cash equivalents and restricted cash, end of the period |
$ |
2,287,149 |
|
|
$ |
2,114,351 |
|
SCHEDULE 6 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES (UNAUDITED)
(In thousands, except per share data) |
||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Income
|
|
Non-GAAP |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
|
$ |
2,568,768 |
|
$ |
(244,647 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,324,121 |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income |
|
$ |
572,623 |
|
|
$ |
429 |
|
|
$ |
477,277 |
|
$ |
— |
|
|
$ |
1,050,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to |
|
$ |
374,760 |
|
|
$ |
429 |
|
|
$ |
474,375 |
|
|
$ |
(100,794 |
) |
|
$ |
748,770 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share attributable to |
|
$ |
1.47 |
|
|
|
|
|
|
|
|
$ |
2.93 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted weighted average shares outstanding |
|
|
255,166 |
|
|
|
|
|
|
|
|
|
255,166 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Income
|
|
Non-GAAP |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
|
$ |
2,452,469 |
|
|
$ |
(249,642 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,202,827 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income |
|
$ |
602,741 |
|
|
$ |
(4,704 |
) |
|
$ |
388,943 |
|
|
$ |
— |
|
|
$ |
986,980 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to |
|
$ |
274,148 |
|
|
$ |
(4,704 |
) |
|
$ |
405,783 |
|
|
$ |
10,081 |
|
|
$ |
685,308 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share attributable to |
|
$ |
1.05 |
|
|
|
|
|
|
|
|
$ |
2.62 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted weighted average shares outstanding |
|
|
261,328 |
|
|
|
|
|
|
|
|
|
261,328 |
|
______________________________ | |
(1) |
Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended |
|
|
(2) |
For the three months ended |
|
|
|
For the three months ended |
|
|
|
Acquisition, integration and separation expenses for the three months ended |
|
|
|
For the three months ended |
|
|
(3) |
Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment. In addition, for the three months ended |
|
|
See "Non-GAAP Financial Measures" discussion on Schedule 10. |
|
|
|
Note: Amounts may not sum due to rounding. |
SCHEDULE 7 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES (UNAUDITED)
(In thousands, except per share data) |
||||||||||||||||||||
|
|
Six Months Ended |
||||||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Income
|
|
Non-GAAP |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
|
$ |
4,988,955 |
|
$ |
(480,895 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,508,060 |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income |
|
$ |
1,024,875 |
|
|
$ |
891 |
|
|
$ |
974,185 |
|
$ |
— |
|
|
$ |
1,999,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to |
|
$ |
688,067 |
|
|
$ |
891 |
|
|
$ |
967,939 |
|
|
$ |
(241,614 |
) |
|
$ |
1,415,283 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share attributable to |
|
$ |
2.68 |
|
|
|
|
|
|
|
|
$ |
5.52 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted weighted average shares outstanding |
|
|
256,377 |
|
|
|
|
|
|
|
|
|
256,377 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Six Months Ended |
||||||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Income
|
|
Non-GAAP |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
|
$ |
4,744,916 |
|
|
$ |
(492,633 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,252,284 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income |
|
$ |
659,475 |
|
|
$ |
(18,641 |
) |
|
$ |
1,228,660 |
|
|
$ |
— |
|
|
$ |
1,869,494 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to |
|
$ |
263,107 |
|
|
$ |
(18,641 |
) |
|
$ |
1,243,358 |
|
|
$ |
(171,254 |
) |
|
$ |
1,316,570 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share attributable to |
|
$ |
1.00 |
|
|
|
|
|
|
|
|
$ |
5.02 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted weighted average shares outstanding |
|
|
262,394 |
|
|
|
|
|
|
|
|
|
262,394 |
|
______________________________ | |
(1) |
Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For six months ended |
|
|
(2) |
For the six months ended |
|
|
|
For the six months ended |
|
|
|
Acquisition, integration and separation expenses for the six months ended |
|
|
|
For the six months ended |
|
|
(3) |
Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment. In addition, for the three months ended |
|
|
See "Non-GAAP Financial Measures" discussion on Schedule 10. |
|
|
|
Note: Amounts may not sum due to rounding. |
SCHEDULE 8 RECONCILIATION OF SEGMENT NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES (UNAUDITED)
(In thousands) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
|
|
||||||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Non-GAAP |
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Merchant Solutions |
|
$ |
1,971,025 |
|
|
$ |
(158,406 |
) |
|
$ |
— |
|
|
$ |
1,812,619 |
|
|
|
|
|
||||
Issuer Solutions |
|
|
613,508 |
|
|
|
(87,016 |
) |
|
|
— |
|
|
|
526,492 |
|
|
|
|
|
||||
Intersegment eliminations |
|
|
(15,765 |
) |
|
|
776 |
|
|
|
— |
|
|
|
(14,989 |
) |
|
|
|
|
||||
|
|
$ |
2,568,768 |
|
|
$ |
(244,647 |
) |
|
$ |
— |
|
|
$ |
2,324,121 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Merchant Solutions |
|
$ |
672,525 |
|
|
$ |
— |
|
|
$ |
212,249 |
|
|
$ |
884,774 |
|
|
|
|
|
||||
Issuer Solutions |
|
|
110,375 |
|
|
|
429 |
|
|
|
135,818 |
|
|
|
246,622 |
|
|
|
|
|
||||
Corporate |
|
|
(210,277 |
) |
|
|
— |
|
|
|
129,210 |
|
|
|
(81,067 |
) |
|
|
|
|
||||
|
|
$ |
572,623 |
|
|
$ |
429 |
|
|
$ |
477,277 |
|
|
$ |
1,050,329 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Non-GAAP |
|
Consumer
|
|
Supplemental
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Merchant Solutions |
|
$ |
1,842,293 |
|
|
$ |
(160,150 |
) |
|
$ |
— |
|
|
$ |
1,682,143 |
|
|
$ |
— |
|
|
$ |
1,682,143 |
|
Issuer Solutions |
|
|
590,441 |
|
|
|
(85,158 |
) |
|
|
— |
|
|
|
505,283 |
|
|
|
— |
|
|
|
505,283 |
|
Consumer Solutions |
|
|
39,031 |
|
|
|
(5,246 |
) |
|
|
— |
|
|
|
33,785 |
|
|
|
(33,785 |
) |
|
|
— |
|
Intersegment eliminations |
|
|
(19,296 |
) |
|
|
912 |
|
|
|
— |
|
|
|
(18,384 |
) |
|
|
4,200 |
|
|
|
(14,184 |
) |
|
|
$ |
2,452,469 |
|
|
$ |
(249,642 |
) |
|
$ |
— |
|
|
$ |
2,202,827 |
|
|
$ |
(29,585 |
) |
|
$ |
2,173,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Merchant Solutions |
|
$ |
603,548 |
|
|
$ |
9 |
|
|
$ |
211,679 |
|
|
$ |
815,236 |
|
|
$ |
— |
|
|
$ |
815,236 |
|
Issuer Solutions |
|
|
95,701 |
|
|
|
534 |
|
|
|
139,676 |
|
|
|
235,910 |
|
|
|
— |
|
|
|
235,910 |
|
Consumer Solutions |
|
|
1,890 |
|
|
|
(5,246 |
) |
|
|
19,269 |
|
|
|
15,913 |
|
|
|
(15,913 |
) |
|
|
— |
|
Corporate |
|
|
(204,136 |
) |
|
|
— |
|
|
|
124,057 |
|
|
|
(80,079 |
) |
|
|
— |
|
|
|
(80,079 |
) |
Gain on business disposition |
|
|
105,738 |
|
|
|
— |
|
|
|
(105,738 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
$ |
602,741 |
|
|
$ |
(4,704 |
) |
|
$ |
388,943 |
|
|
$ |
986,980 |
|
|
$ |
(15,913 |
) |
|
$ |
971,067 |
|
______________________________ |
|
(1) |
Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended |
|
|
(2) |
For the three months ended |
|
|
|
For the three months ended |
|
|
|
Acquisition, integration and separation expenses for the three months ended |
|
|
(3) |
The supplemental non-GAAP information excludes the results of the consumer business that was divested in |
|
|
See "Non-GAAP Financial Measures" discussion on Schedule 10. |
|
|
|
Note: Amounts may not sum due to rounding. |
SCHEDULE 9 RECONCILIATION OF SEGMENT NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES (UNAUDITED)
(In thousands) |
||||||||||||||||||||||||
|
|
Six Months Ended |
|
|
|
|
||||||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Non-GAAP |
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Merchant Solutions |
|
$ |
3,805,119 |
|
|
$ |
(309,117 |
) |
|
$ |
— |
|
|
$ |
3,496,002 |
|
|
|
|
|
||||
Issuer Solutions |
|
|
1,216,243 |
|
|
|
(174,141 |
) |
|
|
— |
|
|
|
1,042,102 |
|
|
|
|
|
||||
Intersegment eliminations |
|
|
(32,407 |
) |
|
|
2,363 |
|
|
|
— |
|
|
|
(30,044 |
) |
|
|
|
|
||||
|
|
$ |
4,988,955 |
|
|
$ |
(480,895 |
) |
|
$ |
— |
|
|
$ |
4,508,060 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Merchant Solutions |
|
$ |
1,252,962 |
|
|
$ |
— |
|
|
$ |
422,224 |
|
$ |
1,675,186 |
|
|
|
|
|
|||||
Issuer Solutions |
|
|
216,472 |
|
|
|
891 |
|
|
|
270,660 |
|
|
|
488,024 |
|
|
|
|
|
||||
Corporate |
|
|
(444,559 |
) |
|
|
— |
|
|
|
281,300 |
|
|
|
(163,259 |
) |
|
|
|
|
||||
|
|
$ |
1,024,875 |
|
|
$ |
891 |
|
|
$ |
974,185 |
|
|
$ |
1,999,951 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Six Months Ended |
||||||||||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Non-GAAP |
|
Consumer
|
|
Supplemental
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Merchant Solutions |
|
$ |
3,447,903 |
|
|
$ |
(309,370 |
) |
|
$ |
— |
|
|
$ |
3,138,533 |
|
|
$ |
— |
|
|
$ |
3,138,533 |
|
Issuer Solutions |
|
|
1,161,349 |
|
|
|
(165,849 |
) |
|
|
— |
|
|
|
995,500 |
|
|
|
— |
|
|
|
995,500 |
|
Consumer Solutions |
|
|
182,740 |
|
|
|
(19,713 |
) |
|
|
— |
|
|
|
163,027 |
|
|
|
(163,027 |
) |
|
|
— |
|
Intersegment eliminations |
|
|
(47,076 |
) |
|
|
2,300 |
|
|
|
— |
|
|
|
(44,776 |
) |
|
|
17,585 |
|
|
|
(27,191 |
) |
|
|
$ |
4,744,916 |
|
|
$ |
(492,633 |
) |
|
$ |
— |
|
|
$ |
4,252,284 |
|
|
$ |
(145,442 |
) |
|
$ |
4,106,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Merchant Solutions |
|
$ |
1,110,757 |
|
|
$ |
22 |
|
|
$ |
392,737 |
|
|
$ |
1,503,516 |
|
|
$ |
— |
|
|
$ |
1,503,516 |
|
Issuer Solutions |
|
|
178,511 |
|
|
|
1,050 |
|
|
|
271,591 |
|
|
|
451,152 |
|
|
|
— |
|
|
|
451,152 |
|
Consumer Solutions |
|
|
(3,908 |
) |
|
|
(19,713 |
) |
|
|
96,851 |
|
|
|
73,230 |
|
|
|
(73,230 |
) |
|
|
— |
|
Corporate |
|
|
(486,790 |
) |
|
|
— |
|
|
|
328,386 |
|
|
|
(158,404 |
) |
|
|
— |
|
|
|
(158,404 |
) |
Impairment of goodwill |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss on business dispositions |
|
|
(139,095 |
) |
|
|
— |
|
|
|
139,095 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
$ |
659,475 |
|
|
$ |
(18,641 |
) |
|
$ |
1,228,660 |
|
|
$ |
1,869,494 |
|
|
$ |
(73,230 |
) |
|
$ |
1,796,264 |
|
______________________________ |
|
(1) |
Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For six months ended |
|
|
(2) |
For the six months ended |
|
|
|
For the six months ended |
|
|
|
Acquisition, integration and separation expenses for the six months ended |
|
|
(3) |
The supplemental non-GAAP information excludes the results of the consumer business that was divested in |
|
|
See "Non-GAAP Financial Measures" discussion on Schedule 10. |
|
|
|
Note: Amounts may not sum due to rounding. |
SCHEDULE 10 OUTLOOK SUMMARY (UNAUDITED)
(In millions, except per share data) |
||||||||||
|
|
2023 |
|
2024 Outlook |
|
Growth |
||||
Revenues: |
|
|
|
|
|
|||||
GAAP revenues |
|
$ |
9,654 |
|
|
|
|
|
5% to 6 |
% |
Adjustments(1) |
|
|
(983 |
) |
|
(960 |
) |
|
|
|
Adjusted net revenue |
|
$ |
8,671 |
|
|
|
|
|
6% to 7 |
% |
|
|
|
|
|
|
|
||||
Earnings Per Share: |
|
|
|
|
|
|
||||
GAAP diluted EPS |
|
$ |
3.77 |
|
|
|
|
|
nm |
|
Adjustments(2) |
|
|
6.65 |
|
|
5.97 |
|
|
|
|
Adjusted EPS |
|
$ |
10.42 |
|
|
|
|
|
11% to 12 |
% |
(1) |
Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefit to the company. Amounts also included adjustments to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses, as well as adjustments to exclude revenues that were associated with certain excluded expenses of our consumer business which was classified as assets held for sale on our balance sheet. |
|
|
(2) |
Adjustments to 2023 GAAP diluted EPS included the removal of 1) software-related contract liability adjustments described above of |
|
|
Note: nm = not meaningful. |
NON-GAAP FINANCIAL MEASURES
Adjusted net revenue, adjusted operating income, adjusted operating margin, adjusted net income and adjusted EPS should be considered in addition to, and not as substitutes for, revenues, operating income, net income and earnings per share determined in accordance with GAAP. The non-GAAP financial measures reflect management's judgment of particular items, and may not be comparable to similarly titled measures reported by other companies. Adjusted net revenue excludes gross-up related payments associated with certain lines of business to reflect economic benefits to the company. On a GAAP basis, these payments are presented gross in both revenues and operating expenses. Adjusted operating income, adjusted net income and adjusted EPS exclude acquisition-related amortization expense, share-based compensation expense, acquisition, integration and separation expense, gain or losses on business divestitures, and certain other items specific to each reporting period as more fully described in the accompanying reconciliations in Schedules 6 and 7. Adjusted operating margin is derived by dividing adjusted operating income by adjusted net revenue. The tax rate used in determining the income tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment.
The supplemental non-GAAP information excludes the results of the consumer business that was divested in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807386498/en/
Investor contact:
investor.relations@globalpay.com
770-829-8478
Media contact:
media.relations@globalpay.com
770-829-8755
Source: