- First quarter 2024 GAAP diluted earnings per share (EPS) of
$1.22 and adjusted EPS of $2.59
- First quarter 2024 GAAP revenue of $2.42 billion, an increase
of 6%, and adjusted net revenue of $2.18 billion, an increase of
7%
- Reaffirms outlook for 2024
- Received EU regulatory approval for Commerzbank joint
venture
Global Payments Inc. (NYSE: GPN) today announced results for the
first quarter ended March 31, 2024.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240501270776/en/
"We are pleased with our solid start to the year, delivering
high single-digit adjusted net revenue growth and mid-teens
adjusted earnings per share growth in the first quarter, excluding
dispositions,” said Cameron Bready, President and Chief Executive
Officer. "These results were ahead of our expectations as we saw
strong execution across our business and resilient consumer trends,
despite the uncertain macroeconomic environment.”
Bready continued, “We are now beyond the anniversary of the
three transactions we completed in 2023, including the acquisition
of EVO Payments and the divestitures of the Netspend Consumer and
Gaming Solutions businesses. And we are continuing to make progress
on further sharpening our strategic focus and simplifying our
business to support long-term sustainable growth and success.”
Bready concluded, “Looking ahead, we remain committed to our key
priorities of advancing our software-centric strategy, making it as
easy as possible for our customers to do business with us,
maintaining our focus on operational excellence, and ensuring we
have the right culture to achieve our vision.”
First Quarter 2024 Summary
- GAAP revenues were $2.42 billion, compared to $2.29 billion in
2023; diluted earnings (loss) per share were $1.22, compared to
$(0.04) in the prior year; and operating margin was 18.7%, compared
to 2.5% in the prior year.
- Adjusted net revenues increased 7% to $2.18 billion, compared
to $2.05 billion in the first quarter of 2023.
- Adjusted earnings per share increased 8% to $2.59, compared to
$2.40 in the first quarter of 2023.
- Adjusted operating margin expanded 40 basis points to
43.5%.
2024 Outlook
“We are pleased with our financial performance in the first
quarter, which positions us well for the balance of 2024,” said
Josh Whipple, Senior Executive Vice President and Chief Financial
Officer.
Whipple continued, “The company continues to expect adjusted net
revenue to be in a range of $9.17 billion to $9.30 billion,
reflecting growth of 6% to 7%, and adjusted earnings per share to
be in a range of $11.54 to $11.70, reflecting growth of 11% to 12%
over 2023. Annual adjusted operating margin for 2024 is still
expected to expand by up to 50 basis points.”
Whipple concluded, “While trends in the business remain stable,
our outlook continues to reflect the potential for a slightly more
tempered economic environment than we saw in 2023.”
Capital Allocation
Global Payments’ Board of Directors approved a dividend of $0.25
per share payable on June 28, 2024 to shareholders of record as of
June 14, 2024.
Conference Call
Global Payments’ management will host a live audio webcast
today, May 1, 2024, at 8:00 a.m. EDT to discuss financial results
and business highlights. The audio webcast, along with supplemental
financial information, can be accessed via the investor relations
page of the company’s website at investors.globalpayments.com. A
replay of the audio webcast will be archived on the company's
website following the live event.
Non-GAAP Financial Measures
Global Payments supplements revenues, operating income,
operating margin and net income and earnings per share determined
in accordance with GAAP by providing these measures with certain
adjustments (such measures being non-GAAP financial measures) in
this earnings release to assist with evaluating our performance. In
addition to GAAP measures, management uses these non-GAAP financial
measures to focus on the factors the company believes are pertinent
to the daily management of our operations.
Global Payments also has provided supplemental non-GAAP
information to reflect the divestiture of the consumer portion of
our Netspend business, which comprised our former Consumer
Solutions segment, which closed in April 2023. Management believes
that providing such supplemental financial information should
enhance shareholders’ ability to evaluate how the business will be
managed going forward.
Reconciliations of each of the non-GAAP financial measures to
the most directly comparable GAAP measure are included in the
schedules to this release, except for forward-looking measures
where a reconciliation to the corresponding GAAP measures is not
available due to the variability, complexity and limited visibility
of the items that are excluded from the non-GAAP outlook
measures.
About Global Payments
Global Payments Inc. (NYSE: GPN) is a leading payments
technology company delivering innovative software and services to
our customers globally. Our technologies, services and team member
expertise allow us to provide a broad range of solutions that
enable our customers to operate their businesses more efficiently
across a variety of channels around the world.
Headquartered in Georgia with approximately 27,000 team members
worldwide, Global Payments is a Fortune 500® company and a member
of the S&P 500 with worldwide reach spanning North America,
Europe, Asia Pacific and Latin America. For more information, visit
company.globalpayments.com and follow Global Payments on X,
LinkedIn and Facebook.
Forward-Looking Statements
Investors are cautioned that some of the statements we use in
this release contain forward-looking statements and are made
pursuant to the "safe-harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements,
which are based on current expectations, estimates and projections
about the industry and markets in which we operate, and beliefs of
and assumptions made by our management, involve risks and
uncertainties that could significantly affect the financial
condition, results of operations, business plans and the future
performance of Global Payments. Actual events or results might
differ materially from those expressed or forecasted in these
forward-looking statements. Accordingly, we cannot guarantee that
our plans and expectations will be achieved. Examples of
forward-looking statements include, but are not limited to,
statements we make regarding guidance and projected financial
results for the year 2024; the effects of general economic
conditions on our business; statements about the benefits of
acquisitions or divestitures, including future financial and
operating results, and the successful integration of our
acquisitions or completion of anticipated benefits or strategic
initiatives; statements regarding our success and timing in
developing and introducing new services and expanding our business;
and other statements regarding our future financial performance and
the company’s plans, objectives, expectations and intentions.
Statements can generally be identified as forward-looking because
they include words such as “believes,” “anticipates,” “expects,”
“intends,” “plan,” “forecast,” “could,” “should,” or words of
similar meaning. Although we believe that the plans and
expectations reflected in any forward-looking statements are based
on reasonable assumptions, we can give no assurance that our plans
and expectations will be attained, and therefore actual outcomes
and results may differ materially from what is expressed or
forecasted in such forward-looking statements.
In addition to factors previously disclosed in Global Payments’
reports filed with the SEC and those identified elsewhere in this
communication, the following factors, among others, could cause
actual results to differ materially from forward-looking statements
or historical performance: the effects of global economic,
political, market, health and social events or other conditions;
foreign currency exchange, inflation and rising interest rate
risks; difficulties, delays and higher than anticipated costs
related to integrating the businesses of acquired companies,
including with respect to implementing controls to prevent a
material security breach of any internal systems or to successfully
manage credit and fraud risks in business units; the effect of a
security breach or operational failure on our business; failing to
comply with the applicable requirements of Visa, Mastercard or
other payment networks or card schemes or changes in those
requirements; the ability to maintain Visa and Mastercard
registration and financial institution sponsorship; the ability to
retain, develop and hire key personnel; the diversion of
management’s attention from ongoing business operations; the
continued availability of capital and financing; increased
competition in the markets in which we operate and our ability to
increase our market share in existing markets and expand into new
markets; our ability to safeguard our data; risks associated with
our indebtedness; our ability to meet environmental, social or
governance targets, goals and commitments; the potential effect of
climate change including natural disasters; the effects of new or
changes in current laws, regulations, credit card association rules
or other industry standards on us or our partners and customers,
including privacy and cybersecurity laws and regulations; and other
events beyond our control, and other factors included in the “Risk
Factors” section in our most recent Annual Report on Form 10-K and
in other documents that we file with the SEC, which are available
at https://www.sec.gov.
These cautionary statements qualify all of our forward-looking
statements, and you are cautioned not to place undue reliance on
these forward-looking statements. Our forward-looking statements
speak only as of the date they are made and should not be relied
upon as representing our plans and expectations as of any
subsequent date. While we may elect to update or revise
forward-looking statements at some time in the future, we
specifically disclaim any obligation to publicly release the
results of any revisions to our forward-looking statements, except
as required by law.
SCHEDULE 1
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands, except per share data)
Three Months Ended
March 31,
2024
2023
% Change
Revenues
$
2,420,187
$
2,292,447
5.6
%
Operating expenses:
Cost of service
922,390
947,753
(2.7
)%
Selling, general and administrative
1,045,545
1,043,126
0.2
%
Loss on business disposition
—
244,833
nm
1,967,935
2,235,712
Operating income
452,252
56,735
nm
Interest and other income
35,928
11,153
222.1
%
Interest and other expense
(162,147
)
(122,945
)
31.9
%
(126,219
)
(111,792
)
Income (loss) before income taxes and
equity in income of equity method investments
326,033
(55,057
)
nm
Income tax expense (benefit)
19,382
(31,399
)
nm
Income (loss) before equity in income of
equity method investments
306,651
(23,658
)
nm
Equity in income of equity method
investments, net of tax
16,411
19,238
(14.7
)%
Net income (loss)
323,062
(4,420
)
nm
Net income attributable to noncontrolling
interests
(9,755
)
(6,621
)
47.3
%
Net income (loss) attributable to Global
Payments
$
313,307
$
(11,041
)
nm
Earnings (loss) per share attributable to
Global Payments:
Basic earnings (loss) per share
$
1.22
$
(0.04
)
nm
Diluted earnings (loss) per share
$
1.22
$
(0.04
)
nm
Weighted-average number of shares
outstanding:
Basic
256,926
263,115
Diluted
257,588
263,115
Note: nm = not meaningful.
SCHEDULE 2
NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands, except per share data)
Three Months Ended
March 31,
2024
2023
% Change
Adjusted net revenue
$
2,183,939
$
2,049,456
6.6
%
Adjusted operating income
$
949,622
$
882,514
7.6
%
Adjusted net income attributable to Global
Payments
$
666,514
$
631,261
5.6
%
Adjusted diluted earnings per share
attributable to Global Payments
$
2.59
$
2.40
8.0
%
Supplemental Non-GAAP(1)
Adjusted net revenue(1)
$
2,183,939
$
1,933,599
12.9
%
Adjusted operating income(1)
$
949,622
$
825,196
15.1
%
----------------------------------------------------------------------------------
(1)
The supplemental non-GAAP information
reflects the divestiture of our consumer business which closed in
April 2023.
See Schedule 6 for a reconciliation of
each non-GAAP financial measure to the most comparable GAAP
measure, Schedule 7 for a reconciliation of adjusted net revenue
and adjusted operating income by segment and supplemental non-GAAP
information to the most comparable GAAP measure, and Schedule 8 for
a discussion of non-GAAP financial measures.
SCHEDULE 3
SEGMENT INFORMATION (UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)
Three Months Ended
March 31, 2024
March 31, 2023
% Change
GAAP
Non-GAAP
GAAP
Non-GAAP
GAAP
Non-GAAP
Revenues:
Merchant Solutions
$
1,834,094
$
1,683,384
$
1,605,610
$
1,456,390
14.2
%
15.6
%
Issuer Solutions
602,735
515,610
570,907
490,216
5.6
%
5.2
%
Consumer Solutions
—
—
143,709
129,242
nm
nm
Intersegment eliminations
(16,642
)
(15,055
)
(27,779
)
(26,392
)
40.1
%
43.0
%
$
2,420,187
$
2,183,939
$
2,292,447
$
2,049,456
5.6
%
6.6
%
Operating income (loss):
Merchant Solutions
$
580,438
$
790,413
$
507,210
$
688,281
14.4
%
14.8
%
Issuer Solutions
106,097
241,401
82,810
215,241
28.1
%
12.2
%
Consumer Solutions
—
—
(5,798
)
57,317
nm
nm
Corporate
(234,283
)
(82,193
)
(282,654
)
(78,326
)
17.1
%
(4.9
)%
Loss on business disposition
—
—
(244,833
)
—
nm
nm
$
452,252
$
949,622
$
56,735
$
882,514
697.1
%
7.6
%
----------------------------------------------------------------------------------
See Schedule 7 for a reconciliation of
adjusted net revenue and adjusted operating income by segment to
the most comparable GAAP measures and Schedule 8 for a discussion
of non-GAAP financial measures.
Note: Amounts may not sum due to
rounding.
Note: nm = not meaningful.
SCHEDULE 4
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands, except share data)
March 31, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
2,167,616
$
2,088,887
Accounts receivable, net
1,054,193
1,120,078
Settlement processing assets
5,617,576
4,097,417
Prepaid expenses and other current
assets
830,548
767,377
Total current assets
9,669,933
8,073,759
Goodwill
26,728,023
26,743,523
Other intangible assets, net
9,797,023
10,168,046
Property and equipment, net
2,200,366
2,190,005
Deferred income taxes
80,241
111,712
Notes receivable
731,429
713,123
Other noncurrent assets
2,567,735
2,570,018
Total assets
$
51,774,750
$
50,570,186
LIABILITIES AND EQUITY
Current liabilities:
Settlement lines of credit
$
1,095,901
$
981,244
Current portion of long-term debt
1,579,357
620,585
Accounts payable and accrued
liabilities
2,630,789
2,824,979
Settlement processing obligations
5,209,972
3,698,921
Total current liabilities
10,516,019
8,125,729
Long-term debt
15,565,705
15,692,297
Deferred income taxes
2,062,885
2,242,105
Other noncurrent liabilities
643,996
722,540
Total liabilities
28,788,605
26,782,671
Commitments and contingencies
Redeemable noncontrolling interests
143,069
507,965
Equity:
Preferred stock, no par value; 5,000,000
shares authorized and none issued
—
—
Common stock, no par value; 400,000,000
shares authorized at March 31, 2024 and December 31, 2023;
255,130,560 issued and outstanding at March 31, 2024 and
260,382,746 issued and outstanding at December 31, 2023
—
—
Paid-in capital
18,806,396
19,800,953
Retained earnings
3,706,873
3,457,182
Accumulated other comprehensive loss
(297,438
)
(258,925
)
Total Global Payments shareholders’
equity
22,215,831
22,999,210
Nonredeemable noncontrolling interests
627,245
280,340
Total equity
22,843,076
23,279,550
Total liabilities, redeemable
noncontrolling interests and equity
$
51,774,750
$
50,570,186
SCHEDULE 5
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)
Three Months Ended
March 31, 2024
March 31, 2023
Cash flows from operating
activities:
Net income (loss)
$
323,062
$
(4,420
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization of property
and equipment
117,919
105,983
Amortization of acquired intangibles
343,217
301,267
Amortization of capitalized contract
costs
32,883
29,336
Share-based compensation expense
40,117
89,566
Provision for operating losses and credit
losses
19,409
29,859
Noncash lease expense
15,397
15,810
Deferred income taxes
(111,886
)
(160,040
)
Equity in income of equity method
investments, net of tax
(16,411
)
(19,238
)
Facilities exit charges
—
5,164
Loss on business disposition
—
244,833
Other, net
(5,619
)
10,521
Changes in operating assets and
liabilities, net of the effects of business combinations:
Accounts receivable
50,934
30,767
Settlement processing assets and
obligations, net
(24,689
)
248,710
Prepaid expenses and other assets
(120,774
)
(119,479
)
Accounts payable and other liabilities
(247,242
)
(209,113
)
Net cash provided by operating
activities
416,317
599,526
Cash flows from investing
activities:
Business combinations and other
acquisitions, net of cash and restricted cash acquired
(2,557
)
(4,046,785
)
Capital expenditures
(145,441
)
(162,195
)
Other, net
—
2,187
Net cash used in investing activities
(147,998
)
(4,206,793
)
Cash flows from financing
activities:
Net borrowings from (repayments of)
settlement lines of credit
133,228
(281,411
)
Net borrowings from (repayments of)
commercial paper notes
(1,093,043
)
1,048,620
Proceeds from long-term debt
4,609,000
4,708,140
Repayments of long-term debt
(2,628,548
)
(1,555,954
)
Payments of debt issuance costs
(29,391
)
(11,593
)
Repurchases of common stock
(800,048
)
(202,785
)
Proceeds from stock issued under
share-based compensation plans
11,031
6,103
Common stock repurchased - share-based
compensation plans
(41,140
)
(28,323
)
Distributions to noncontrolling
interests
(4,748
)
(6,218
)
Contributions from noncontrolling
interests
89
—
Purchase of capped calls related to
issuance of convertible notes
(256,250
)
—
Dividends paid
(63,616
)
(65,750
)
Net cash provided by (used in) financing
activities
(163,436
)
3,610,829
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(34,035
)
18,584
Increase in cash, cash equivalents and
restricted cash
70,848
22,146
Cash, cash equivalents and restricted
cash, beginning of the period
2,256,875
2,215,606
Cash, cash equivalents and restricted
cash, end of the period
$
2,327,723
$
2,237,752
SCHEDULE 6
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES TO GAAP MEASURES (UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands, except per share data)
Three Months Ended March 31,
2024
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Income
Taxes on Adjustments(3)
Non-GAAP
Revenues
$
2,420,187
$
(236,248
)
$
—
$
—
$
2,183,939
Operating income
$
452,252
$
462
$
496,908
$
—
$
949,622
Net income attributable to Global
Payments
$
313,307
$
462
$
493,565
$
(140,820
)
$
666,514
Diluted earnings per share attributable to
Global Payments
$
1.22
$
2.59
Diluted weighted average shares
outstanding
257,588
257,588
Three Months Ended March 31,
2023
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Income
Taxes on Adjustments(3)
Non-GAAP
Revenues
$
2,292,447
$
(242,991
)
$
—
$
—
$
2,049,456
Operating income
$
56,735
$
(13,938
)
$
839,716
$
—
$
882,514
Net (loss) income attributable to Global
Payments
$
(11,041
)
$
(13,938
)
$
837,575
$
(181,335
)
$
631,261
Diluted (loss) earnings per share
attributable to Global Payments
$
(0.04
)
$
2.40
Diluted weighted average shares
outstanding (4)
263,115
263,386
----------------------------------------------------------------------------------
(1)
Includes adjustments to revenues for
gross-up related payments (included in operating expenses)
associated with certain lines of business to reflect economic
benefits to the company. For the three months ended March 31, 2024
and 2023, net revenue adjustments also included $0.5 million and
$0.4 million, respectively, to eliminate the effect of acquisition
accounting fair value adjustments for software-related contract
liabilities associated with acquired businesses. Adjustments for
the three months ended March 31, 2023 also included a $14.5 million
adjustment to exclude revenues that were associated with certain
excluded expenses of our consumer business, which was divested in
April 2023.
(2)
For the three months ended March 31, 2024,
earnings adjustments to operating income included $343.2 million in
cost of services (COS) and $153.7 million in selling, general and
administrative expenses (SG&A). Adjustments to COS consisted of
amortization of acquired intangibles of $343.2 million. Adjustments
to SG&A included share-based compensation expense of $40.1
million, acquisition, integration and separation expenses of $78.9
million, employee severance charges of $24.9 million, and other
items of $9.8 million.
For the three months ended March 31, 2023,
earnings adjustments to operating income included $303.6 million in
COS and $291.3 million in SG&A. Adjustments to COS included
amortization of acquired intangibles of $301.3 million and other
items of $2.3 million. Adjustments to SG&A included share-based
compensation expense of $89.6 million, acquisition, integration and
separation expenses of $174.8 million, facilities exit charges of
$7.7 million, and employee severance charges of $19.2 million.
Acquisition, integration and separation
expenses for the three months ended March 31, 2023 included $74.2
million related to our divested consumer business. These
incremental expenses, which include card and marketing expenses,
compensation and benefit expenses, and other expenses, were
incurred as a result of contractual obligations with the purchasers
of the consumer business and do not reflect the manner in which the
company would have operated the business and would not have
otherwise been incurred absent the transaction.
For the three months ended March 31, 2023,
earnings adjustments to operating income also included the $244.8
million loss on business dispositions.
(3)
Income taxes on adjustments reflect the
tax effect of earnings adjustments to income before income taxes.
The tax rate used in determining the tax impact of earnings
adjustments is either the jurisdictional statutory rate in effect
at the time of the adjustment or the jurisdictional expected annual
effective tax rate for the period, depending on the nature and
timing of the adjustment.
(4)
Includes 270,957 dilutive shares for
non-GAAP. All awards are antidilutive for GAAP due to reporting a
net loss.
See "Non-GAAP Financial Measures"
discussion on Schedule 8.
Note: Amounts may not sum due to
rounding.
SCHEDULE 7
RECONCILIATION OF SEGMENT NON-GAAP
FINANCIAL MEASURES TO GAAP MEASURES (UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)
Three Months Ended March 31,
2024
GAAP
Net Revenue Adjustments (1)
Earnings Adjustments(2)
Non-GAAP
Revenues:
Merchant Solutions
$
1,834,094
$
(150,710
)
$
—
$
1,683,384
Issuer Solutions
602,735
(87,125
)
—
515,610
Intersegment eliminations
(16,642
)
1,587
—
(15,055
)
$
2,420,187
$
(236,248
)
$
—
$
2,183,939
Operating income (loss):
Merchant Solutions
$
580,438
$
—
$
209,975
$
790,413
Issuer Solutions
106,097
462
134,843
241,401
Corporate
(234,283
)
—
152,090
(82,193
)
$
452,252
$
462
$
496,908
$
949,622
Three Months Ended March 31,
2023
GAAP
Net Revenue Adjustments (1)
Earnings Adjustments(2)
Non-GAAP
Consumer Business (3)
Supplemental Non-GAAP (3)
Revenues:
Merchant Solutions
$
1,605,610
$
(149,220
)
$
—
$
1,456,390
$
—
$
1,456,390
Issuer Solutions
570,907
(80,691
)
—
490,216
—
490,216
Consumer Solutions
143,709
(14,467
)
—
129,242
(129,242
)
—
Intersegment eliminations
(27,779
)
1,387
—
(26,392
)
13,385
(13,007
)
$
2,292,447
$
(242,991
)
$
—
$
2,049,456
$
(115,857
)
$
1,933,599
Operating income (loss):
Merchant Solutions
$
507,210
$
13
$
181,058
$
688,281
$
—
$
688,281
Issuer Solutions
82,810
516
131,915
215,241
—
215,241
Consumer Solutions
(5,798
)
(14,467
)
77,582
57,317
(57,317
)
—
Corporate
(282,654
)
—
204,328
(78,326
)
—
(78,326
)
Loss on business disposition
(244,833
)
—
244,833
—
—
—
$
56,735
$
(13,938
)
$
839,716
$
882,514
$
(57,317
)
$
825,196
------------------------------------------------------------------------------------------
(1)
Includes adjustments to revenues for
gross-up related payments (included in operating expenses)
associated with certain lines of business to reflect economic
benefits to the company. For the three months ended March 31, 2024
and 2023, net revenue adjustments also included $0.5 million and
$0.4 million, respectively, to eliminate the effect of acquisition
accounting fair value adjustments for software-related contract
liabilities associated with acquired businesses. Adjustments for
the three months ended March 31, 2023 also included a $14.5 million
adjustment to exclude revenues that were associated with certain
excluded expenses of our consumer business, which was divested in
April 2023.
(2)
For the three months ended March 31, 2024,
earnings adjustments to operating income included $343.2 million in
COS and $153.7 million in SG&A. Adjustments to COS consisted of
amortization of acquired intangibles of $343.2 million. Adjustments
to SG&A included share-based compensation expense of $40.1
million, acquisition, integration and separation expenses of $78.9
million, employee severance charges of $24.9 million, and other
items of $9.8 million.
For the three months ended March 31, 2023,
earnings adjustments to operating income included $303.6 million in
COS and $291.3 million in SG&A. Adjustments to COS included
amortization of acquired intangibles of $301.3 million and other
items of $2.3 million. Adjustments to SG&A included share-based
compensation expense of $89.6 million, acquisition, integration and
separation expenses of $174.8 million, facilities exit charges of
$7.7 million, and employee severance charges of $19.2 million.
Acquisition, integration and separation
expenses for the three months ended March 31, 2023 included $74.2
million related to our divested consumer business. These
incremental expenses, which include card and marketing expenses,
compensation and benefit expenses, and other expenses, were
incurred as a result of contractual obligations with the purchasers
of the consumer business and do not reflect the manner in which the
company would have operated the business and would not have
otherwise been incurred absent the transaction.
For the three months ended March 31, 2023,
earnings adjustments to operating income also included the $244.8
million loss on business dispositions.
(3)
The supplemental non-GAAP information
excludes the results of the consumer business that was divested in
April 2023.
See "Non-GAAP Financial Measures"
discussion on Schedule 8.
Note: Amounts may not sum due to
rounding.
SCHEDULE 8
OUTLOOK SUMMARY (UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
2023
2024 Outlook
Growth
Revenues:
GAAP revenues
$
9,654
$10,130 to $10,260
5% to 6%
Adjustments(1)
(983
)
(960
)
Adjusted net revenue
$
8,671
$9,170 to $9,300
6% to 7%
Earnings Per
Share:
GAAP diluted EPS
$
3.77
$5.57 to $5.73
nm
Adjustments(2)
6.65
5.97
Adjusted EPS
$
10.42
$11.54 to $11.70
11% to 12%
(1)
Includes adjustments to revenues for gross-up related payments
(included in operating expenses) associated with certain lines of
business to reflect economic benefit to the company. Amounts also
included adjustments to eliminate the effect of acquisition
accounting fair value adjustments for software-related contract
liabilities associated with acquired businesses, as well as
adjustments to exclude revenues that were associated with certain
excluded expenses of our consumer business which was classified as
assets held for sale on our balance sheet.
(2)
Adjustments to 2023 GAAP diluted EPS included the removal of 1)
software-related contract liability adjustments described above of
$0.01, 2) acquisition related amortization expense of $3.88, 3)
share-based compensation expense of $0.62, 4) acquisition,
integration, and separation expense of $1.22, 5) facilities exit
charges of $0.05, 6) equity method investment earnings from our
interest in a private equity investment fund of $0.02, 7) discrete
tax items of $0.28, 8) gain/loss on business dispositions of $0.40,
9) other income and expense of $0.06, 10) other items of $0.11, and
11) the effect of noncontrolling interests and income taxes, as
applicable.
Note: nm = not meaningful.
NON-GAAP FINANCIAL MEASURES
Global Payments supplements revenues, operating income,
operating margin and net income and earnings per share (EPS)
determined in accordance with U.S. GAAP by providing these measures
with certain adjustments (such measures being non-GAAP financial
measures) in this document to assist with evaluating our
performance. In addition to GAAP measures, management uses these
non-GAAP financial measures to focus on the factors the company
believes are pertinent to the daily management of our operations.
The constant currency growth measures adjust for the impact of
exchange rates and are calculated using average exchange rates
during the comparable period in the prior year. Management believes
adjusted net revenue more closely reflects the economic benefits to
the company's core business and allows for better comparisons with
industry peers. Management uses these non-GAAP financial measures,
together with other metrics, to set goals for and measure the
performance of the business and to determine incentive
compensation.
Adjusted net revenue, adjusted operating income, adjusted
operating margin, adjusted net income and adjusted EPS should be
considered in addition to, and not as substitutes for, revenues,
operating income, net income and earnings per share determined in
accordance with GAAP. The non-GAAP financial measures reflect
management's judgment of particular items, and may not be
comparable to similarly titled measures reported by other
companies. Adjusted net revenue excludes gross-up related payments
associated with certain lines of business to reflect economic
benefits to the company. On a GAAP basis, these payments are
presented gross in both revenues and operating expenses. Adjusted
operating income, adjusted net income and adjusted EPS exclude
acquisition-related amortization expense, share-based compensation
expense, acquisition, integration and separation expense, gain or
losses on business divestitures, and certain other items specific
to each reporting period as more fully described in the
accompanying reconciliations in Schedules 6 and 7. Adjusted
operating margin is derived by dividing adjusted operating income
by adjusted net revenue. The tax rate used in determining the
income tax impact of earnings adjustments is either the
jurisdictional statutory rate in effect at the time of the
adjustment or the jurisdictional expected annual effective tax rate
for the period, depending on the nature and timing of the
adjustment.
The supplemental non-GAAP information excludes the results of
the consumer business that was divested in April 2023. Management
believes that providing such supplemental financial information
should enhance shareholders’ ability to evaluate how the business
will be managed going forward.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240501270776/en/
Investor contact: investor.relations@globalpay.com Winnie Smith
770-829-8478
Media contact: media.relations@globalpay.com Emily Edmonds
770-829-8755
Grafico Azioni Global Payments (NYSE:GPN)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Global Payments (NYSE:GPN)
Storico
Da Dic 2023 a Dic 2024
