- Second quarter 2024 GAAP diluted earnings per share (EPS) of
$1.47, an increase of 40%, and adjusted EPS of $2.93, an increase
of 12%
- Second quarter 2024 GAAP revenue of $2.57 billion, an increase
of 5%, and adjusted net revenue of $2.32 billion, an increase of
6%
- Reaffirms outlook for 2024
- Announces official commerce technology partnership with Diamond
Baseball Holdings
- Renews long-standing issuer relationship with NatWest
Global Payments Inc. (NYSE: GPN) today announced results for the
second quarter ended June 30, 2024.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240807386498/en/
"We delivered high single-digit adjusted net revenue growth,
excluding the Netspend divestiture, and double-digit adjusted
earnings per share growth in the second quarter,” said Cameron
Bready, chief executive officer. "These results reflect consistent
strong performance and execution of our strategy focused on being
the worldwide partner of choice for commerce solutions.”
Bready continued, “We continue to see good momentum with our
point-of-sale solutions, and are pleased to announce a new
agreement with Diamond Baseball Holdings to serve as the official
commerce technology partner for its Minor League Baseball
franchises in the United States and Canada. We also signed new
stadium partnerships with multiple UK football clubs in the second
quarter, including Newcastle, Birmingham City, and Nottingham
Forest.”
Bready concluded, “We are also finalizing the review of our
business that we began earlier this year and have identified
meaningful opportunities to better align our organization to
continue to drive sustainable growth. We are focused on simplifying
our business and streamlining our operations to deliver
product-led, customer-centric solutions, while further emphasizing
service as a key differentiator.”
Second Quarter 2024 Summary
- GAAP revenues were $2.57 billion, compared to $2.45 billion in
2023; diluted earnings per share were $1.47, compared to $1.05 in
the prior year; and operating margin was 22.3%, compared to 24.6%
in the prior year.
- Adjusted net revenues increased 6% to $2.32 billion, compared
to $2.20 billion in the second quarter of 2023.
- Adjusted earnings per share increased 12% to $2.93, compared to
$2.62 in the second quarter of 2023.
- Adjusted operating margin expanded 40 basis points to
45.2%.
2024 Outlook
“We are pleased with our financial performance in the second
quarter, and overall execution across the business,” said Josh
Whipple, 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, “Our outlook continues to reflect the
potential for a slightly more tempered economic environment in the
second half of 2024.”
Capital Allocation
Global Payments’ Board of Directors approved a dividend of $0.25
per share payable on September 27, 2024 to shareholders of record
as of September 13, 2024.
Investor Conference
Global Payments will host its 2024 Investor Conference on
Tuesday, September 24, 2024 in New York City. All interested
parties may access the webcast via the investor relations page of
the company’s website at investors.globalpayments.com. A replay of
the webcast will be archived on the company’s website following the
live event.
Conference Call
Global Payments’ management will host a live audio webcast
today, August 7, 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 or
operational 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
Six Months Ended
June 30,
June 30,
2024
2023
% Change
2024
2023
% Change
Revenues
$
2,568,768
$
2,452,469
4.7
%
$
4,988,955
$
4,744,916
5.1
%
Operating expenses:
Cost of service
938,484
941,952
(0.4
)%
1,860,874
1,889,705
(1.5
)%
Selling, general and administrative
1,057,661
1,013,514
4.4
%
2,103,206
2,056,641
2.3
%
Net (gain) loss on business
dispositions
—
(105,738
)
nm
—
139,095
nm
1,996,145
1,849,728
3,964,080
4,085,441
Operating income
572,623
602,741
(5.0
)%
1,024,875
659,475
55.4
%
Interest and other income
35,306
27,944
26.3
%
71,234
39,097
82.2
%
Interest and other expense
(159,157
)
(191,423
)
(16.9
)%
(321,304
)
(314,368
)
2.2
%
(123,851
)
(163,479
)
(250,070
)
(275,271
)
Income before income taxes and equity in
income of equity method investments
448,772
439,262
2.2
%
774,805
384,204
101.7
%
Income tax expense
77,834
172,211
(54.8
)%
97,216
140,812
(31.0
)%
Income before equity in income of equity
method investments
370,938
267,051
38.9
%
677,589
243,392
178.4
%
Equity in income of equity method
investments, net of tax
18,337
17,155
6.9
%
34,748
36,394
(4.5
)%
Net income
389,275
284,206
37.0
%
712,337
279,786
154.6
%
Net income attributable to noncontrolling
interests
(14,515
)
(10,058
)
44.3
%
(24,270
)
(16,679
)
45.5
%
Net income attributable to Global
Payments
$
374,760
$
274,148
36.7
%
$
688,067
$
263,107
161.5
%
Earnings per share attributable to Global
Payments:
Basic earnings per share
$
1.47
$
1.05
40.0
%
$
2.69
$
1.00
169.0
%
Diluted earnings per share
$
1.47
$
1.05
40.0
%
$
2.68
$
1.00
168.0
%
Weighted-average number of shares
outstanding:
Basic
254,748
260,827
255,837
261,965
Diluted
255,166
261,328
256,377
262,394
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
Six Months Ended
June 30,
June 30,
2024
2023
% Change
2024
2023
% Change
Adjusted net revenue
$
2,324,121
$
2,202,827
5.5
%
$
4,508,060
$
4,252,284
6.0
%
Adjusted operating income
$
1,050,329
$
986,980
6.4
%
$
1,999,951
$
1,869,494
7.0
%
Adjusted net income attributable to Global
Payments
$
748,770
$
685,308
9.3
%
$
1,415,283
$
1,316,570
7.5
%
Adjusted diluted earnings per share
attributable to Global Payments
$
2.93
$
2.62
11.9
%
$
5.52
$
5.02
10.0
%
Supplemental Non-GAAP(1)
Adjusted net revenue(1)
$
2,324,121
$
2,173,242
6.9
%
$
4,508,060
$
4,106,842
9.8
%
Adjusted operating income(1)
$
1,050,329
$
971,067
8.2
%
$
1,999,951
$
1,796,264
11.3
%
______________________________
(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
June 30, 2024
June 30, 2023
% Change
GAAP
Non-GAAP
GAAP
Non-GAAP
GAAP
Non-GAAP
Revenues:
Merchant Solutions
$
1,971,025
$
1,812,619
$
1,842,293
$
1,682,143
7.0
%
7.8
%
Issuer Solutions
613,508
526,492
590,441
505,283
3.9
%
4.2
%
Consumer Solutions
—
—
39,031
33,785
nm
nm
Intersegment eliminations
(15,765
)
(14,989
)
(19,296
)
(18,384
)
18.3
%
18.5
%
$
2,568,768
$
2,324,121
$
2,452,469
$
2,202,827
4.7
%
5.5
%
Operating income (loss):
Merchant Solutions
$
672,525
$
884,774
$
603,548
$
815,236
11.4
%
8.5
%
Issuer Solutions
110,375
246,622
95,701
235,910
15.3
%
4.5
%
Consumer Solutions
—
—
1,890
15,913
nm
nm
Corporate
(210,277
)
(81,067
)
(204,136
)
(80,079
)
(3.0
)%
(1.2
)%
Gain on business disposition
—
—
105,738
—
nm
nm
$
572,623
$
1,050,329
$
602,741
$
986,980
(5.0
)%
6.4
%
Six Months Ended
June 30, 2024
June 30, 2023
% Change
GAAP
Non-GAAP
GAAP
Non-GAAP
GAAP
Non-GAAP
Revenues:
Merchant Solutions
$
3,805,119
$
3,496,002
$
3,447,903
$
3,138,533
10.4
%
11.4
%
Issuer Solutions
1,216,243
1,042,102
1,161,349
995,500
4.7
%
4.7
%
Consumer Solutions
—
—
182,740
163,027
nm
nm
Intersegment Elimination
(32,407
)
(30,044
)
(47,076
)
(44,776
)
31.2
%
32.9
%
$
4,988,955
$
4,508,060
$
4,744,916
$
4,252,284
5.1
%
6.0
%
Operating income:
Merchant Solutions
$
1,252,962
$
1,675,186
$
1,110,757
$
1,503,516
12.8
%
11.4
%
Issuer Solutions
216,472
488,024
178,511
451,152
21.3
%
8.2
%
Consumer Solutions
—
—
(3,908
)
73,230
nm
nm
Corporate
(444,559
)
(163,259
)
(486,790
)
(158,404
)
8.7
%
(3.1
)%
Net gain (loss) on business
dispositions
—
—
(139,095
)
—
nm
nm
$
1,024,875
$
1,999,951
$
659,475
$
1,869,494
55.4
%
7.0
%
______________________________ See Schedules 8 and 9 for a
reconciliation of adjusted net revenue and adjusted operating
income by segment to the most comparable GAAP measures and Schedule
10 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)
June 30, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
2,097,159
$
2,088,887
Accounts receivable, net
1,134,292
1,120,078
Settlement processing assets
4,496,778
4,097,417
Prepaid expenses and other current
assets
822,103
767,377
Total current assets
8,550,332
8,073,759
Goodwill
26,860,500
26,743,523
Other intangible assets, net
9,607,299
10,168,046
Property and equipment, net
2,309,347
2,190,005
Deferred income taxes
80,053
111,712
Notes receivable
741,478
713,123
Other noncurrent assets
2,603,149
2,570,018
Total assets
$
50,752,158
$
50,570,186
LIABILITIES AND EQUITY
Current liabilities:
Settlement lines of credit
$
1,010,032
$
981,244
Current portion of long-term debt
1,565,024
620,585
Accounts payable and accrued
liabilities
2,680,738
2,824,979
Settlement processing obligations
4,073,557
3,698,921
Total current liabilities
9,329,351
8,125,729
Long-term debt
15,611,948
15,692,297
Deferred income taxes
2,010,628
2,242,105
Other noncurrent liabilities
639,179
722,540
Total liabilities
27,591,106
26,782,671
Commitments and contingencies
Redeemable noncontrolling interests
147,400
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 June 30, 2024 and December 31, 2023;
254,353,455 issued and outstanding at June 30, 2024 and 260,382,746
issued and outstanding at December 31, 2023
—
—
Paid-in capital
18,761,494
19,800,953
Retained earnings
4,018,207
3,457,182
Accumulated other comprehensive loss
(392,287
)
(258,925
)
Total Global Payments shareholders’
equity
22,387,414
22,999,210
Nonredeemable noncontrolling interests
626,238
280,340
Total equity
23,013,652
23,279,550
Total liabilities, redeemable
noncontrolling interests and equity
$
50,752,158
$
50,570,186
SCHEDULE 5
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)
Six Months Ended
June 30, 2024
June 30, 2023
Cash flows from operating
activities:
Net income
$
712,337
$
279,786
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization of property
and equipment
241,943
223,753
Amortization of acquired intangibles
689,157
645,675
Amortization of capitalized contract
costs
68,019
59,065
Share-based compensation expense
83,362
136,701
Provision for operating losses and credit
losses
41,026
61,313
Noncash lease expense
29,741
32,362
Deferred income taxes
(184,963
)
(317,660
)
Paid-in-kind interest capitalized to
principal of notes receivable
(35,868
)
(12,165
)
Equity in income of equity method
investments, net of tax
(34,748
)
(36,394
)
Net loss on business dispositions
—
139,095
Other, net
23,023
13,574
Changes in operating assets and
liabilities, net of the effects of business combinations:
Accounts receivable
(29,658
)
(58,981
)
Settlement processing assets and
obligations, net
(57,718
)
213,936
Prepaid expenses and other assets
(160,058
)
(191,478
)
Accounts payable and other liabilities
(232,396
)
(24,099
)
Net cash provided by operating
activities
1,153,199
1,164,483
Cash flows from investing
activities:
Business combinations and other
acquisitions, net of cash and restricted cash acquired
(372,662
)
(4,101,415
)
Capital expenditures
(324,657
)
(331,002
)
Issuance of notes receivable
—
(50,000
)
Net cash from sales of businesses
—
478,695
Other, net
6
2,186
Net cash used in investing activities
(697,313
)
(4,001,536
)
Cash flows from financing
activities:
Net borrowings from (repayments of)
settlement lines of credit
55,351
(233,075
)
Net borrowings from (repayments of)
commercial paper notes
(936,539
)
1,841,675
Proceeds from long-term debt
6,288,994
7,359,193
Repayments of long-term debt
(4,430,074
)
(5,673,724
)
Payments of debt issuance costs
(33,056
)
(12,255
)
Repurchases of common stock
(900,047
)
(418,271
)
Proceeds from stock issued under
share-based compensation plans
25,137
19,282
Common stock repurchased - share-based
compensation plans
(43,279
)
(33,680
)
Distributions to noncontrolling
interests
(10,881
)
(17,255
)
Contributions from noncontrolling
interests
2,116
—
Payment of deferred consideration in
business combination
(6,390
)
—
Purchase of capped calls related to
issuance of convertible notes
(256,250
)
—
Dividends paid
(127,042
)
(130,635
)
Net cash provided by (used in) financing
activities
(371,960
)
2,701,255
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(53,652
)
34,543
Increase (decrease) in cash, cash
equivalents and restricted cash
30,274
(101,255
)
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
$
2,287,149
$
2,114,351
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 June 30,
2024
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Income Taxes on
Adjustments(3)
Non-GAAP
Revenues
$
2,568,768
$
(244,647
)
$
—
$
—
$
2,324,121
Operating income
$
572,623
$
429
$
477,277
$
—
$
1,050,329
Net income attributable to Global
Payments
$
374,760
$
429
$
474,375
$
(100,794
)
$
748,770
Diluted earnings per share attributable to
Global Payments
$
1.47
$
2.93
Diluted weighted average shares
outstanding
255,166
255,166
Three Months Ended June 30,
2023
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Income Taxes on
Adjustments(3)
Non-GAAP
Revenues
$
2,452,469
$
(249,642
)
$
—
$
—
$
2,202,827
Operating income
$
602,741
$
(4,704
)
$
388,943
$
—
$
986,980
Net income attributable to Global
Payments
$
274,148
$
(4,704
)
$
405,783
$
10,081
$
685,308
Diluted earnings per share attributable to
Global Payments
$
1.05
$
2.62
Diluted weighted average shares
outstanding
261,328
261,328
______________________________
(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 June 30, 2024
and 2023, net revenue adjustments also included $0.4 million and
$0.5 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 June 30, 2023 also included a $5.2 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 June 30, 2024,
earnings adjustments to operating income included $345.9 million in
cost of services (COS) and $131.3 million in selling, general and
administrative expenses (SG&A). Adjustments to COS consisted of
amortization of acquired intangibles of $345.9 million. Adjustments
to SG&A included share-based compensation expense of $43.2
million, acquisition, integration and separation expenses of $55.7
million, employee severance charges of $10.1 million, and other
items of $22.3 million.
For the three months ended June 30, 2023,
earnings adjustments to operating income included $344.3 million in
COS and $150.3 million in SG&A. Adjustments to COS included
amortization of acquired intangibles of $344.4 million and other
items of $(0.1) million. Adjustments to SG&A included
share-based compensation expense of $47.1 million, acquisition,
integration and separation expenses of $86.6 million, facilities
exit charges of $3.6 million, employee severance charges of $11.2
million, and other items of $1.8 million. Earnings adjustments to
operating income also included the $105.7 million gain on business
dispositions.
Acquisition, integration and separation
expenses for the three months ended June 30, 2023 included $19.4
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 June 30, 2023,
earnings adjustments to net income also included an allowance for
current expected credit losses (CECL) of $18.2 million within
interest and other expense related to the seller financing issued
in connection with the 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. In addition, for the three months ended
June 30, 2023, income taxes on adjustments include the removal of
tax expense related to business dispositions.
See "Non-GAAP Financial Measures"
discussion on Schedule 10.
Note: Amounts may not sum due to
rounding.
SCHEDULE 7
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES TO GAAP MEASURES (UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands, except per share data)
Six Months Ended June 30,
2024
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Income Taxes on
Adjustments(3)
Non-GAAP
Revenues
$
4,988,955
$
(480,895
)
$
—
$
—
$
4,508,060
Operating income
$
1,024,875
$
891
$
974,185
$
—
$
1,999,951
Net income attributable to Global
Payments
$
688,067
$
891
$
967,939
$
(241,614
)
$
1,415,283
Diluted earnings per share attributable to
Global Payments
$
2.68
$
5.52
Diluted weighted average shares
outstanding
256,377
256,377
Six Months Ended June 30,
2023
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Income Taxes on
Adjustments(3)
Non-GAAP
Revenues
$
4,744,916
$
(492,633
)
$
—
$
—
$
4,252,284
Operating income
$
659,475
$
(18,641
)
$
1,228,660
$
—
$
1,869,494
Net income attributable to Global
Payments
$
263,107
$
(18,641
)
$
1,243,358
$
(171,254
)
$
1,316,570
Diluted earnings per share attributable to
Global Payments
$
1.00
$
5.02
Diluted weighted average shares
outstanding
262,394
262,394
______________________________
(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 six months ended June 30, 2024 and
2023, net revenue adjustments also included $0.9 million and $1.1
million, respectively, to eliminate the effect of acquisition
accounting fair value adjustments for software-related contract
liabilities associated with acquired businesses. Adjustments for
the six months ended June 30, 2023 also included a $19.7 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 six months ended June 30, 2024,
earnings adjustments to operating income included $689.2 million in
COS and $285 million in SG&A. Adjustments to COS consisted of
amortization of acquired intangibles of $689.2 million. Adjustments
to SG&A included share-based compensation expense of $83.4
million, acquisition, integration and separation expenses of $134.6
million, employee severance charges of $34.9 million, and other
items of $32.1 million.
For the six months ended June 30, 2023,
earnings adjustments to operating income included $647.9 million in
COS and $441.6 million in SG&A. Adjustments to COS included
amortization of acquired intangibles of $645.7 million and other
items of $2.2 million. Adjustments to SG&A included share-based
compensation expense of $136.7 million, acquisition, integration
and separation expenses of $261.3 million, facilities exit charges
of $11.3 million, employee severance charges of $29.9 million, and
other items of $2.4 million. Earnings adjustments to operating
income also included the $139.1 million loss on business
dispositions.
Acquisition, integration and separation
expenses for the six months ended June 30, 2023 included $93.6
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 six months ended June 30, 2023,
earnings adjustments to net income also included an allowance for
current expected credit losses (CECL) of $18.2 million within
interest and other expense related to the seller financing issued
in connection with the 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. In addition, for the three months ended
June 30, 2023, income taxes on adjustments include the removal of
tax expense related to business dispositions.
See "Non-GAAP Financial Measures"
discussion on Schedule 10.
Note: Amounts may not sum due to
rounding.
SCHEDULE 8
RECONCILIATION OF SEGMENT NON-GAAP
FINANCIAL MEASURES TO GAAP MEASURES (UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)
Three Months Ended June 30,
2024
GAAP
Net Revenue Adjustments (1)
Earnings Adjustments(2)
Non-GAAP
Revenues:
Merchant Solutions
$
1,971,025
$
(158,406
)
$
—
$
1,812,619
Issuer Solutions
613,508
(87,016
)
—
526,492
Intersegment eliminations
(15,765
)
776
—
(14,989
)
$
2,568,768
$
(244,647
)
$
—
$
2,324,121
Operating income (loss):
Merchant Solutions
$
672,525
$
—
$
212,249
$
884,774
Issuer Solutions
110,375
429
135,818
246,622
Corporate
(210,277
)
—
129,210
(81,067
)
$
572,623
$
429
$
477,277
$
1,050,329
Three Months Ended June 30,
2023
GAAP
Net Revenue Adjustments (1)
Earnings Adjustments(2)
Non-GAAP
Consumer Business (3)
Supplemental Non-GAAP (3)
Revenues:
Merchant Solutions
$
1,842,293
$
(160,150
)
$
—
$
1,682,143
$
—
$
1,682,143
Issuer Solutions
590,441
(85,158
)
—
505,283
—
505,283
Consumer Solutions
39,031
(5,246
)
—
33,785
(33,785
)
—
Intersegment eliminations
(19,296
)
912
—
(18,384
)
4,200
(14,184
)
$
2,452,469
$
(249,642
)
$
—
$
2,202,827
$
(29,585
)
$
2,173,242
Operating income (loss):
Merchant Solutions
$
603,548
$
9
$
211,679
$
815,236
$
—
$
815,236
Issuer Solutions
95,701
534
139,676
235,910
—
235,910
Consumer Solutions
1,890
(5,246
)
19,269
15,913
(15,913
)
—
Corporate
(204,136
)
—
124,057
(80,079
)
—
(80,079
)
Gain on business disposition
105,738
—
(105,738
)
—
—
—
$
602,741
$
(4,704
)
$
388,943
$
986,980
$
(15,913
)
$
971,067
______________________________
(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 June 30, 2024
and 2023, net revenue adjustments also included $0.4 million and
$0.5 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 June 30, 2023 also included a $5.2 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 June 30, 2024,
earnings adjustments to operating income included $345.9 million in
COS and $131.3 million in SG&A. Adjustments to COS consisted of
amortization of acquired intangibles of $345.9 million. Adjustments
to SG&A included share-based compensation expense of $43.2
million, acquisition, integration and separation expenses of $55.7
million, employee severance charges of $10.1 million, and other
items of $22.3 million.
For the three months ended June 30, 2023,
earnings adjustments to operating income included $344.3 million in
COS and $150.3 million in SG&A. Adjustments to COS included
amortization of acquired intangibles of $344.4 million and other
items of $(0.1) million. Adjustments to SG&A included
share-based compensation expense of $47.1 million, acquisition,
integration and separation expenses of $86.6 million, facilities
exit charges of $3.6 million, employee severance charges of $11.2
million, and other items of $1.8 million. Earnings adjustments to
operating income also included the $105.7 million gain on business
dispositions.
Acquisition, integration and separation
expenses for the three months ended June 30, 2023 included $19.4
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.
(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 10.
Note: Amounts may not sum due to
rounding.
SCHEDULE 9
RECONCILIATION OF SEGMENT NON-GAAP
FINANCIAL MEASURES TO GAAP MEASURES (UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)
Six Months Ended June 30,
2024
GAAP
Net Revenue Adjustments (1)
Earnings Adjustments(2)
Non-GAAP
Revenues:
Merchant Solutions
$
3,805,119
$
(309,117
)
$
—
$
3,496,002
Issuer Solutions
1,216,243
(174,141
)
—
1,042,102
Intersegment eliminations
(32,407
)
2,363
—
(30,044
)
$
4,988,955
$
(480,895
)
$
—
$
4,508,060
Operating income (loss):
Merchant Solutions
$
1,252,962
$
—
$
422,224
$
1,675,186
Issuer Solutions
216,472
891
270,660
488,024
Corporate
(444,559
)
—
281,300
(163,259
)
$
1,024,875
$
891
$
974,185
$
1,999,951
Six Months Ended June 30,
2023
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Non-GAAP
Consumer Business (3)
Supplemental Non-GAAP (3)
Revenues:
Merchant Solutions
$
3,447,903
$
(309,370
)
$
—
$
3,138,533
$
—
$
3,138,533
Issuer Solutions
1,161,349
(165,849
)
—
995,500
—
995,500
Consumer Solutions
182,740
(19,713
)
—
163,027
(163,027
)
—
Intersegment eliminations
(47,076
)
2,300
—
(44,776
)
17,585
(27,191
)
$
4,744,916
$
(492,633
)
$
—
$
4,252,284
$
(145,442
)
$
4,106,842
Operating income (loss):
Merchant Solutions
$
1,110,757
$
22
$
392,737
$
1,503,516
$
—
$
1,503,516
Issuer Solutions
178,511
1,050
271,591
451,152
—
451,152
Consumer Solutions
(3,908
)
(19,713
)
96,851
73,230
(73,230
)
—
Corporate
(486,790
)
—
328,386
(158,404
)
—
(158,404
)
Impairment of goodwill
—
—
—
—
—
—
Net loss on business dispositions
(139,095
)
—
139,095
—
—
—
$
659,475
$
(18,641
)
$
1,228,660
$
1,869,494
$
(73,230
)
$
1,796,264
______________________________
(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 six months ended June 30, 2024 and
2023, net revenue adjustments also included $0.9 million and $1.1
million, respectively, to eliminate the effect of acquisition
accounting fair value adjustments for software-related contract
liabilities associated with acquired businesses. Adjustments for
the six months ended June 30, 2023 also included a $19.7 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 six months ended June 30, 2024,
earnings adjustments to operating income included $689.2 million in
COS and $285 million in SG&A. Adjustments to COS consisted of
amortization of acquired intangibles of $689.2 million. Adjustments
to SG&A included share-based compensation expense of $83.4
million, acquisition, integration and separation expenses of $134.6
million, employee severance charges of $34.9 million, and other
items of $32.1 million.
For the six months ended June 30, 2023,
earnings adjustments to operating income included $647.9 million in
COS and $441.6 million in SG&A. Adjustments to COS included
amortization of acquired intangibles of $645.7 million and other
items of $2.2 million. Adjustments to SG&A included share-based
compensation expense of $136.7 million, acquisition, integration
and separation expenses of $261.3 million, facilities exit charges
of $11.3 million, employee severance charges of $29.9 million, and
other items of $2.4 million. Earnings adjustments to operating
income also included the $139.1 million loss on business
dispositions.
Acquisition, integration and separation
expenses for the six months ended June 30, 2023 included $93.6
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.
(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 10.
Note: Amounts may not sum due to
rounding.
SCHEDULE 10
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/20240807386498/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
