10-QPeriod: Q3 FY2015

GLOBAL PAYMENTS INC Quarterly Report for Q3 Ended Nov 30, 2015

Filed January 11, 2016For Securities:GPN

Summary

GLOBAL PAYMENTS INC. (GPN) reported its third-quarter and year-to-date results for the period ending November 30, 2015. For the three months ended November 30, 2015, the company generated revenues of $722.4 million, a 3.6% increase year-over-year, while net income attributable to Global Payments was $78.8 million, up 5.3%. Diluted earnings per share also saw an increase to $0.60, up from $0.55 in the prior year period. The company highlighted operational growth in its North America segment, driven by its U.S. direct distribution channels and acquisitions like the FIS Gaming Business. For the six months ended November 30, 2015, revenues grew by 4.9% to $1.5 billion, and net income attributable to Global Payments increased by 10.2% to $165.4 million. Diluted earnings per share rose to $1.27 from $1.10 in the comparable prior year period. The company also completed a significant refinancing of its long-term debt, expanding debt capacity and lowering borrowing rates. Additionally, GLOBAL PAYMENTS announced its intent to acquire Heartland Payment Systems in a significant cash-and-stock transaction valued at $4.3 billion, which was a key strategic development discussed within the filing.

Key Highlights

  • 1Total revenues for the three months ended November 30, 2015 increased by 3.6% to $722.4 million compared to the prior year.
  • 2Net income attributable to Global Payments increased by 5.3% to $78.8 million for the three months ended November 30, 2015.
  • 3Diluted earnings per share rose to $0.60 for the three months ended November 30, 2015, an increase of 9.1% from the prior year.
  • 4For the six months ended November 30, 2015, revenues increased by 4.9% to $1.5 billion, and net income attributable to Global Payments rose by 10.2% to $165.4 million.
  • 5The company completed a refinancing of its long-term debt, expanding its debt capacity and lowering borrowing rates.
  • 6Global Payments announced a definitive agreement to acquire Heartland Payment Systems for $4.3 billion in a cash-and-stock transaction.
  • 7Despite unfavorable currency fluctuations, the company demonstrated revenue growth across its segments, particularly in North America.

Frequently Asked Questions

For the three months ended November 30, 2015, GLOBAL PAYMENTS INC. reported total revenues of $722.4 million, representing a 3.6% increase compared to $697.3 million in the same period of the prior year. This growth was achieved despite unfavorable currency fluctuations.

Net income attributable to Global Payments for the three months ended November 30, 2015 was $78.8 million, a 5.3% increase from $74.8 million in the prior year. Diluted earnings per share increased by 9.1% to $0.60, up from $0.55 in the prior year period.

The most significant development was the announcement on December 15, 2015, of an agreement to acquire Heartland Payment Systems in a cash-and-stock transaction valued at $4.3 billion. This acquisition is expected to close in the fiscal 2016 fourth quarter and will be financed through a combination of cash and new debt.

GLOBAL PAYMENTS completed a refinancing of its long-term debt on July 31, 2015. This resulted in a new $1.75 billion term loan and a $1.25 billion revolving credit facility, expanding total debt capacity and lowering borrowing rates. The company also utilizes lines of credit for settlement funding.