10-QPeriod: Q1 FY2014

GLOBAL PAYMENTS INC Quarterly Report for Q1 Ended Feb 28, 2014

Filed April 3, 2014For Securities:GPN

Summary

Global Payments Inc. (GPN) reported its unaudited financial results for the nine months ended February 28, 2014. The company demonstrated revenue growth, with total revenues increasing by 7.0% to $1.88 billion compared to the same period last year. This growth was driven by robust performance across both its North America and International merchant services segments. Net income attributable to Global Payments also saw a significant increase of 10.5%, reaching $193.7 million, which translated to diluted earnings per share of $2.65, up from $2.23 in the prior year. This positive financial trajectory was supported by strategic debt refinancing and a significant acquisition during the period. The company appears well-positioned for continued growth, with ample liquidity and a clear strategy for expanding market share.

Financial Highlights

47 data points
Beta

Revenue

$616.45M

Net Income

$55.12M

8.9% Net Margin

EPS (Diluted)

$0.38

Total Assets

$3.46B

Cash & Equivalents

$1.01B

Free Cash Flow

$314.40M

Financial Statements
Beta
Revenue$616.45M
SG&A Expenses$286.22M
Operating Expenses$519.16M
Operating Income$97.29M
Net Income$55.12M
EPS (Basic)$0.39
EPS (Diluted)$0.38
Shares Outstanding (Basic)143.67M
Shares Outstanding (Diluted)144.87M

Key Highlights

  • 1Total revenues increased by 7.0% to $1.88 billion for the nine months ended February 28, 2014.
  • 2Net income attributable to Global Payments increased by 10.5% to $193.7 million for the nine months ended February 28, 2014.
  • 3Diluted earnings per share rose to $2.65 for the nine months ended February 28, 2014, from $2.23 in the prior year.
  • 4North America merchant services revenue grew 5.6% to $1.33 billion, and International merchant services revenue grew 10.4% to $553.4 million for the nine months ended February 28, 2014.
  • 5The company completed a significant debt refinancing, securing a $1.25 billion term loan and a $1.0 billion revolving credit facility on February 28, 2014.
  • 6Global Payments acquired Payment Processing, Inc. (PayPros) for $420 million on March 4, 2014, to expand its U.S. merchant services capabilities.
  • 7Cash and cash equivalents increased significantly to $1.01 billion as of February 28, 2014, providing strong liquidity.

Frequently Asked Questions

For the nine months ended February 28, 2014, Global Payments reported a 7.0% increase in total revenues to $1.88 billion and a 10.5% increase in net income attributable to Global Payments to $193.7 million. Diluted earnings per share also improved to $2.65 from $2.23 in the prior year, indicating strong operational and financial performance.

Both segments showed growth. North America merchant services revenue increased by 5.6% to $1.33 billion, driven by U.S. integrated solutions and Canadian operations. International merchant services revenue saw a stronger increase of 10.4% to $553.4 million, primarily due to growth in Europe and the Asia-Pacific region.

The company completed a substantial debt refinancing on February 28, 2014, issuing a $1.25 billion term loan and a $1.0 billion revolving credit facility. Shortly after the period ended, on March 4, 2014, Global Payments acquired Payment Processing, Inc. (PayPros) for $420 million, aimed at enhancing its U.S. small-to-medium sized merchant solutions.

Global Payments maintained a strong liquidity position, with cash and cash equivalents totaling $1.01 billion as of February 28, 2014. The company noted that available cash was higher than usual due to proceeds from its recent debt refinancing, which was earmarked for the PayPros acquisition.