10-KPeriod: FY2010

GLOBAL PAYMENTS INC Annual Report, Year Ended May 31, 2010

Filed July 28, 2010For Securities:GPN

Summary

GLOBAL PAYMENTS INC. (GPN) reported a strong fiscal year ended May 31, 2010, with a 12% increase in revenue to $1.64 billion, driven by growth in both its North America and International merchant services segments. Net income attributable to Global Payments surged by 446% to $203.3 million, or $2.48 per diluted share, compared to the prior year. This significant improvement was largely due to the absence of a substantial impairment charge that impacted the prior fiscal year, alongside solid operational performance, particularly in the International segment which saw a 19% revenue increase. The company also completed strategic divestitures and acquisitions during the year. Notably, the money transfer business was divested, and the company acquired Auctionpay, Inc. to expand its reach into new vertical markets. Global Payments continues to focus on leveraging technology, expanding its direct merchant services distribution channels, and pursuing strategic international acquisitions to drive future growth. The company ended the fiscal year with a healthy cash position and a manageable debt load.

Financial Highlights

27 data points
Beta

Revenue

$1.64B

Net Income

$203.32M

12.4% Net Margin

EPS (Diluted)

$1.24

Free Cash Flow

$409.71M

Financial Statements
Beta
Revenue$1.64B
SG&A Expenses$734.58M
Operating Expenses$1.32B
Operating Income$323.28M
Net Income$203.32M
EPS (Basic)$1.25
EPS (Diluted)$1.24
Shares Outstanding (Basic)162.15M
Shares Outstanding (Diluted)164.24M

Key Highlights

  • 1Revenue increased 12% to $1.64 billion for the fiscal year ended May 31, 2010.
  • 2Net income attributable to Global Payments increased significantly by 446% to $203.3 million ($2.48 per diluted share).
  • 3The International merchant services segment showed robust growth, with revenue up 19% to $422.4 million and operating income up 37%.
  • 4North America merchant services revenue grew 10% to $1.22 billion, though operating margins slightly decreased due to growth in the ISO channel.
  • 5The company divested its money transfer business (DolEx and Europhil) for $85.0 million.
  • 6Acquisition of Auctionpay, Inc. was completed to expand into new vertical markets.
  • 7The company repurchased $100 million of its common stock during the fiscal year.

Frequently Asked Questions

Global Payments experienced a 12% increase in revenue, primarily driven by growth in its direct merchant acquiring markets across both North America and International segments. The International segment, in particular, saw significant revenue growth of 19%, boosted by acquisitions and strong business performance in regions like the United Kingdom.

Profitability saw a substantial improvement. Net income attributable to Global Payments increased by 446% to $203.3 million, or $2.48 per diluted share. This was largely due to a strong recovery from the prior year's results, which were impacted by a significant impairment charge related to the divested money transfer business.

The company made two key strategic moves: it divested its money transfer businesses (DolEx and Europhil) and acquired Auctionpay, Inc., a company specializing in payment processing for fundraising activities. These actions aimed to streamline operations and expand into new market segments.

Global Payments aims to leverage the increasing adoption of card-based payments by expanding market share in existing markets (North America, Asia-Pacific, Europe) through its distribution channels and strategic acquisitions. It also plans to invest in technology and people to enhance customer service and product offerings, and enter new international markets.