Summary
Global Payments Inc. (GPN) reported an 18% increase in revenue to $2,203.8 million for fiscal year 2012, driven by growth in most of its global markets and a recent acquisition in Spain. However, consolidated operating income declined to $307.3 million, largely due to $84.4 million in costs related to a processing system intrusion. Net income attributable to Global Payments decreased by 10% to $188.2 million, resulting in diluted earnings per share of $2.37, down from $2.60 in the prior year. While the North America segment saw revenue growth of 15% and a slight increase in operating income, its operating margin contracted. The International segment demonstrated stronger growth with a 28% revenue increase and a significant jump in operating income, alongside an improved operating margin. The company also highlighted three targeted acquisitions in fiscal year 2012, expanding its international and e-commerce presence. A significant development during the year was the identification and self-reporting of unauthorized access to a portion of its North America card processing system. This incident led to the company being temporarily removed from PCI DSS compliant provider lists and incurred substantial costs, including an accrual of $67.4 million for estimated fraud losses, fines, and other charges. Despite these challenges, Global Payments continues to sign new merchants and process transactions globally.
Financial Highlights
24 data points| Revenue | $2.20B |
| SG&A Expenses | $1.03B |
| Operating Expenses | $1.90B |
| Operating Income | $307.35M |
| Net Income | $188.16M |
| EPS (Basic) | $1.20 |
| EPS (Diluted) | $1.19 |
| Shares Outstanding (Basic) | 157.66M |
| Shares Outstanding (Diluted) | 158.86M |
Key Highlights
- 1Revenue increased by 18% to $2.20 billion in fiscal year 2012, driven by global market growth and acquisitions.
- 2Consolidated operating income decreased by 7% to $307.3 million, primarily impacted by $84.4 million in costs related to a processing system intrusion.
- 3Net income attributable to Global Payments declined 10% to $188.2 million, with diluted EPS falling to $2.37 from $2.60 in the prior year.
- 4International merchant services segment showed strong performance with revenue up 28% and operating income up 36%, with margins improving.
- 5North America merchant services segment revenue grew 15%, but operating margins decreased slightly due to the ISO channel and Durbin amendment impacts.
- 6The company experienced a significant data breach in early March 2012, incurring $84.4 million in associated expenses, including an accrual for fraud losses and fines.
- 7Three targeted acquisitions were completed in fiscal year 2012, focusing on expanding international and e-commerce capabilities.