Global Payments Reports Second Quarter 2024 Results
Global Payments Inc. (NYSE: GPN) reported strong second quarter 2024 results, with GAAP diluted EPS up 40% to $1.47 and adjusted EPS increasing 12% to $2.93. The company's GAAP revenue grew 5% to $2.57 billion, while adjusted net revenue rose 6% to $2.32 billion. Global Payments reaffirmed its 2024 outlook, expecting adjusted net revenue growth of 6% to 7% and adjusted EPS growth of 11% to 12%.
Key highlights include a new partnership with Diamond Baseball Holdings and renewed relationship with NatWest. The company also expanded its presence in UK football, signing agreements with multiple clubs. Global Payments continues to focus on simplifying its business and streamlining operations to drive sustainable growth.
Global Payments Inc. (NYSE: GPN) ha riportato forti risultati per il secondo trimestre del 2024, con EPS diluito GAAP in aumento del 40% a $1.47 e EPS rettificato in crescita del 12% a $2.93. I ricavi GAAP dell'azienda sono cresciuti del 5% a $2.57 miliardi, mentre i ricavi netti rettificati sono aumentati del 6% a $2.32 miliardi. Global Payments ha confermato le sue prospettive per il 2024, prevedendo una crescita dei ricavi netti rettificati dal 6% al 7% e una crescita dell'EPS rettificato dell'11% al 12%.
I punti salienti includono una nuova partnership con Diamond Baseball Holdings e una relazione rinnovata con NatWest. L'azienda ha anche ampliato la sua presenza nel calcio britannico, firmando accordi con diverse squadre. Global Payments continua a concentrarsi sulla semplificazione delle proprie attività e sull'ottimizzazione delle operazioni per favorire una crescita sostenibile.
Global Payments Inc. (NYSE: GPN) reportó sólidos resultados para el segundo trimestre de 2024, con EPS diluido GAAP aumentando un 40% a $1.47 y EPS ajustado incrementándose un 12% a $2.93. Los ingresos GAAP de la empresa crecieron un 5% a $2.57 mil millones, mientras que los ingresos netos ajustados aumentaron un 6% a $2.32 mil millones. Global Payments reafirmó su pronóstico para 2024, esperando un crecimiento de ingresos netos ajustados del 6% al 7% y un crecimiento de EPS ajustado del 11% al 12%.
Los aspectos destacados incluyen una nueva asociación con Diamond Baseball Holdings y la renovación de la relación con NatWest. La empresa también amplió su presencia en el fútbol del Reino Unido, firmando acuerdos con múltiples clubes. Global Payments continúa enfocándose en simplificar su negocio y optimizar operaciones para impulsar un crecimiento sostenible.
글로벌 페이먼츠 주식회사 (NYSE: GPN)는 2024년 2분기 강력한 실적을 보고했으며, GAAP 희석 EPS가 40% 증가하여 $1.47에 달했고 조정된 EPS는 12% 증가하여 $2.93에 도달했습니다. 회사의 GAAP 수익은 5% 증가하여 $25.7억 달러에 이르고, 조정된 순수익은 6% 증가하여 $23.2억 달러에 달했습니다. 글로벌 페이먼츠는 2024년 전망을 재확인하며, 조정된 순수익이 6%에서 7% 증가하고 조정된 EPS가 11%에서 12% 증가할 것으로 기대하고 있습니다.
주요 하이라이트로는 다이아몬드 베이스볼 홀딩스와의 새로운 파트너십 및 NatWest와의 관계 재연장 등이 있습니다. 회사는 또한 영국 축구에서의 존재감을 확대하며 여러 클럽과 계약을 체결했습니다. 글로벌 페이먼츠는 지속 가능한 성장을 촉진하기 위해 비즈니스를 간소화하고 운영을 최적화하는 데 계속 집중하고 있습니다.
Global Payments Inc. (NYSE: GPN) a annoncé de solides résultats pour le deuxième trimestre 2024, avec un EPS dilué GAAP en hausse de 40 % à 1,47 $ et un EPS ajusté en augmentation de 12 % à 2,93 $. Les revenus GAAP de l'entreprise ont augmenté de 5 % pour atteindre 2,57 milliards de dollars, tandis que les revenus nets ajustés ont crû de 6 % à 2,32 milliards de dollars. Global Payments a réaffirmé ses prévisions pour 2024, s'attendant à une croissance des revenus nets ajustés de 6 % à 7 % et à une croissance de l'EPS ajusté de 11 % à 12 %.
Parmi les faits marquants, on note un nouveau partenariat avec Diamond Baseball Holdings et le renouvellement de la relation avec NatWest. L'entreprise a également élargi sa présence dans le football britannique en signant des accords avec plusieurs clubs. Global Payments continue de se concentrer sur la simplification de ses activités et l'optimisation de ses opérations pour favoriser une croissance durable.
Global Payments Inc. (NYSE: GPN) meldete für das zweite Quartal 2024 starke Ergebnisse, mit GAAP verwässertem EPS, das um 40% auf $1.47 gestiegen ist, und korrigiertem EPS, das um 12% auf $2.93 zugenommen hat. Der GAAP-Umsatz des Unternehmens wuchs um 5% auf $2.57 Milliarden, während der angepasste Nettoumsatz um 6% auf $2.32 Milliarden anstieg. Global Payments bestätigte die Prognose für 2024 und erwartet ein Wachstum des angepassten Nettoumsatzes von 6% bis 7% und ein Wachstum des angepassten EPS von 11% bis 12%.
Zu den wichtigsten Punkten gehört eine neue Partnerschaft mit Diamond Baseball Holdings sowie eine erneute Zusammenarbeit mit NatWest. Das Unternehmen hat auch seine Präsenz im britischen Fußball ausgeweitet, indem es Vereinbarungen mit mehreren Klubs unterzeichnet hat. Global Payments konzentriert sich weiterhin darauf, sein Geschäft zu vereinfachen und die Abläufe zu optimieren, um nachhaltiges Wachstum zu fördern.
- GAAP diluted EPS increased 40% to $1.47
- Adjusted EPS grew 12% to $2.93
- GAAP revenue up 5% to $2.57 billion
- Adjusted net revenue increased 6% to $2.32 billion
- Adjusted operating margin expanded 40 basis points to 45.2%
- New partnership with Diamond Baseball Holdings
- Renewed long-standing issuer relationship with NatWest
- Signed new stadium partnerships with multiple UK football clubs
- GAAP operating margin decreased to 22.3% from 24.6% in the prior year
- Potential for a slightly more tempered economic environment in the second half of 2024
Insights
Global Payments' Q2 2024 results show solid performance with adjusted net revenue up 6% to
Key positives include new partnerships with Diamond Baseball Holdings and UK football clubs, demonstrating market expansion. However, management's mention of a "slightly more tempered economic environment" in H2 2024 suggests caution.
The reaffirmed 2024 outlook, projecting 6-7% revenue growth and 11-12% EPS growth, along with potential margin expansion, indicates confidence in sustained performance despite economic uncertainties. The
Global Payments' results reflect resilience in the payments industry amid economic headwinds. The company's focus on being the "worldwide partner of choice for commerce solutions" aligns with the growing demand for integrated payment technologies.
The new partnerships in sports and entertainment venues highlight a strategic move into high-volume transaction environments. This diversification could provide a buffer against potential slowdowns in other sectors.
The ongoing business review and emphasis on "simplifying business and streamlining operations" suggests potential cost-saving measures ahead. This proactive approach could enhance competitiveness in a challenging market, but investors should watch for any restructuring costs in upcoming quarters.
Global Payments' emphasis on point-of-sale solutions and product-led, customer-centric approaches indicates a strong focus on technological innovation. The partnership with Diamond Baseball Holdings for Minor League franchises presents an opportunity to showcase advanced commerce technologies in a high-visibility setting.
The company's strategy to use service as a key differentiator suggests investments in AI and machine learning for enhanced customer experiences. This could be important in maintaining a competitive edge in the rapidly evolving fintech landscape.
However, the mention of simplifying business operations raises questions about potential impacts on R&D spending. Investors should monitor how this balances with the need for continuous innovation in the payments tech sector.
-
Second quarter 2024 GAAP diluted earnings per share (EPS) of
$1.47 40% , and adjusted EPS of$2.93 12% -
Second quarter 2024 GAAP revenue of
$2.57 billion 5% , and adjusted net revenue of$2.32 billion 6% - Reaffirms outlook for 2024
- Announces official commerce technology partnership with Diamond Baseball Holdings
- Renews long-standing issuer relationship with NatWest
"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
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 $2.45 billion $1.47 $1.05 22.3% , compared to24.6% in the prior year. -
Adjusted net revenues increased
6% to$2.32 billion $2.20 billion -
Adjusted earnings per share increased
12% to$2.93 $2.62 -
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
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
Investor Conference
Global Payments will host its 2024 Investor Conference on Tuesday, September 24, 2024 in
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
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) |
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Three Months Ended |
|
Six Months Ended |
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|
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) |
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|
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) |
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|
|
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
|
|
Earnings
|
|
Income
|
|
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
|
|
Earnings
|
|
Income
|
|
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 |
|
|
(2) |
For the three months ended June 30, 2024, earnings adjustments to operating income included |
|
|
|
For the three months ended June 30, 2023, earnings adjustments to operating income included |
|
|
|
Acquisition, integration and separation expenses for the three months ended June 30, 2023 included |
|
|
|
For the three months ended June 30, 2023, earnings adjustments to net income also included an allowance for current expected credit losses (CECL) of |
|
|
(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
|
|
Earnings
|
|
Income
|
|
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
|
|
Earnings
|
|
Income
|
|
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 |
|
|
(2) |
For the six months ended June 30, 2024, earnings adjustments to operating income included |
|
|
|
For the six months ended June 30, 2023, earnings adjustments to operating income included |
|
|
|
Acquisition, integration and separation expenses for the six months ended June 30, 2023 included |
|
|
|
For the six months ended June 30, 2023, earnings adjustments to net income also included an allowance for current expected credit losses (CECL) of |
|
|
(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
|
|
Earnings
|
|
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
|
|
Earnings
|
|
Non-GAAP |
|
Consumer
|
|
Supplemental
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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 |
|
|
(2) |
For the three months ended June 30, 2024, earnings adjustments to operating income included |
|
|
|
For the three months ended June 30, 2023, earnings adjustments to operating income included |
|
|
|
Acquisition, integration and separation expenses for the three months ended June 30, 2023 included |
|
|
(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
|
|
Earnings
|
|
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
|
|
Earnings
|
|
Non-GAAP |
|
Consumer
|
|
Supplemental
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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 |
|
|
(2) |
For the six months ended June 30, 2024, earnings adjustments to operating income included |
|
|
|
For the six months ended June 30, 2023, earnings adjustments to operating income included |
|
|
|
Acquisition, integration and separation expenses for the six months ended June 30, 2023 included |
|
|
(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 |
|
|
|
|
|
|
% |
Adjustments(1) |
|
|
(983 |
) |
|
(960 |
) |
|
|
|
Adjusted net revenue |
|
$ |
8,671 |
|
|
|
|
|
|
% |
|
|
|
|
|
|
|
||||
Earnings Per Share: |
|
|
|
|
|
|
||||
GAAP diluted EPS |
|
$ |
3.77 |
|
|
|
|
|
nm |
|
Adjustments(2) |
|
|
6.65 |
|
|
5.97 |
|
|
|
|
Adjusted EPS |
|
$ |
10.42 |
|
|
|
|
|
|
% |
(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 |
|
|
| 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
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
Source: Global Payments Inc.
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