10-Q/APeriod: Q1 FY2002

GLOBAL PAYMENTS INC Quarterly Report (Amendment) for Q1 Ended Feb 28, 2002

Filed May 10, 2002For Securities:GPN

Summary

This amended 10-Q filing for Global Payments Inc. for the period ending February 28, 2002, primarily serves to include the report of independent accountants, which was previously omitted. The company demonstrates significant year-over-year revenue growth, with a substantial increase of over 40% for the three months ended February 28, 2002, and over 36% for the nine-month period. This growth is largely driven by the merchant services segment. Net income also saw robust growth, reflecting improved operational efficiency and strategic acquisitions. The balance sheet indicates a strong increase in goodwill and other intangible assets, primarily due to business acquisitions, and a reduction in line of credit usage, suggesting improved liquidity management.

Key Highlights

  • 1Revenues surged by approximately 43% to $115.3 million for the three months ended February 28, 2002, compared to $80.7 million in the prior year period.
  • 2Net income for the three months ended February 28, 2002, rose to $10.3 million ($0.28 basic EPS) from $5.8 million ($0.22 basic EPS) in the same period last year, representing significant profitability improvement.
  • 3The nine-month period ending February 28, 2002, also showed strong performance with revenues of $341.9 million, up from $250.5 million in the prior year, and net income of $34.8 million, up from $22.9 million.
  • 4Goodwill and other intangible assets increased substantially, reflecting strategic business acquisitions, with goodwill rising to $157.0 million from $118.8 million.
  • 5Cash flow from operations was robust, totaling $127.0 million for the nine-month period, a significant increase from $54.9 million in the prior year, indicating strong operational cash generation.
  • 6The company completed several business acquisitions during the period, including National Bank of Canada’s merchant acquiring portfolio and a minority interest buy-out, totaling $61.2 million in cash paid.
  • 7The company adopted SFAS No. 142 (Goodwill and Other Intangible Assets) effective June 1, 2001, discontinuing the amortization of goodwill and certain other intangible assets, impacting reported earnings and requiring impairment testing.

Frequently Asked Questions

This amended 10-Q filing (Amendment No. 1) is primarily to include the report of the independent public accountants, which was inadvertently omitted from the original filing on April 5, 2002. No other changes were made to the financial statements themselves.

Global Payments Inc. demonstrated strong financial performance. For the three months ended February 28, 2002, revenues increased by approximately 43% to $115.3 million, and net income grew to $10.3 million from $5.8 million in the prior year. The nine-month period also showed significant growth, with revenues at $341.9 million and net income at $34.8 million.

The company adopted Statement of Financial Accounting Standards No. 142 ('Goodwill and Other Intangible Assets') effective June 1, 2001. This standard requires the discontinuation of goodwill amortization and periodic impairment testing, which has impacted the company's balance sheet and income statement presentation related to these assets.

The company completed several strategic business acquisitions during the period, including National Bank of Canada’s merchant acquiring portfolio. These acquisitions resulted in a significant increase in goodwill and other intangible assets on the balance sheet, totaling $38.2 million in goodwill acquired during the nine-month period. These acquisitions are expected to contribute to future revenue and earnings growth.