10-KPeriod: FY2015

GLOBAL PAYMENTS INC Annual Report, Year Ended May 31, 2015

Filed July 30, 2015For Securities:GPN

Summary

GLOBAL PAYMENTS INC. (GPN) reported a strong fiscal year ended May 31, 2015, demonstrating robust growth across its key financial metrics. Total revenues climbed by 8.6% to $2.77 billion, driven by solid performance in both its North America and International merchant services segments. This top-line growth translated into significant improvements in profitability, with operating income increasing by 12.6% to $456.6 million and net income attributable to Global Payments rising by 13.4% to $278.0 million. Diluted earnings per share saw a substantial increase of $0.75, reaching $4.12. The company's strategic acquisitions, including PayPros, Ezidebit, and Realex Payments, played a crucial role in expanding its capabilities and market reach. These acquisitions contributed to revenue growth, particularly within the North America and International segments, as highlighted by the nearly 8% revenue increase in North America and over 8% in International markets. Despite currency headwinds, Global Payments effectively navigated these challenges, showcasing operational resilience and a strong execution of its growth strategy.

Financial Highlights

30 data points
Beta

Revenue

$2.77B

77.0% Gross Margin

Net Income

$194.84M

7.0% Net Margin

EPS (Diluted)

$1.49

Cash & Equivalents

$587.75M

Free Cash Flow

$429.88M

Financial Statements
Beta
Revenue$2.77B
Cost of Revenue$638.70M
Gross Profit$2.14B
SG&A Expenses$784.82M
Operating Expenses$1.42B
Operating Income$306.55M
Interest Expense$39.90M
Net Income$194.84M
EPS (Basic)$1.50
EPS (Diluted)$1.49
Shares Outstanding (Basic)134.07M
Shares Outstanding (Diluted)134.92M

Key Highlights

  • 1Revenue increased by 8.6% to $2.77 billion in fiscal year 2015.
  • 2Operating income grew by 12.6% to $456.6 million.
  • 3Net income attributable to Global Payments increased by 13.4% to $278.0 million.
  • 4Diluted earnings per share rose by 19.3% to $4.12.
  • 5North America merchant services segment revenue grew by 8.8% to $1.97 billion.
  • 6International merchant services segment revenue grew by 8.0% to $804.8 million.
  • 7Successful acquisitions of PayPros, Ezidebit, and Realex Payments contributed to segment growth and expanded market presence.

Frequently Asked Questions

Revenue growth was primarily driven by increases in card transactions and volume across both the North America and International merchant services segments. Key acquisitions, such as PayPros (integrated into the 'OpenEdge' channel), Ezidebit in Australia, and Realex Payments in Europe, also significantly contributed to the expansion of services and market reach.

The acquisitions of PayPros, Ezidebit, and Realex Payments were instrumental in driving revenue and operating income growth. PayPros bolstered the North America segment, particularly in integrated payment solutions. Ezidebit expanded the company's footprint in Australia and New Zealand, while Realex Payments strengthened its European online payment gateway capabilities. These strategic moves contributed to overall segment performance and enhanced the company's integrated solutions offerings.

Global Payments' strategy focuses on leveraging the ongoing shift to electronic payments by expanding market share in existing regions through its distribution channels and service innovation. It also aims to enter new markets through strategic acquisitions, investments, and alliances. The company plans to continue investing in its technology infrastructure and personnel to drive penetration in its key markets.

Currency fluctuations had an unfavorable effect on the company's results, particularly in fiscal year 2015, which decreased revenues by approximately $78.4 million compared to the prior year. Despite these headwinds, the company managed to achieve overall revenue growth due to strong local currency performance in its various markets.