Global Payments Reports Third Quarter 2022 Results
Global Payments Inc. (GPN) reported a strong third quarter for 2022, achieving record revenues of $2.29 billion, up from $2.20 billion year-over-year. Adjusted net revenues rose by 3%, reaching $2.06 billion, while adjusted earnings per share increased by 14% to $2.48. The company obtained HSR clearance for its acquisition of EVO Payments and the divestiture of Netspend's consumer business. They expect adjusted net revenue growth of 10% to 11% for 2022, confirming a positive outlook despite global economic challenges.
- Record revenues of $2.29 billion, a YoY increase.
- Adjusted earnings per share rose 14% to $2.48.
- Continued growth in Merchant business with 11% revenue growth.
- Acquisition of EVO Payments expected to close in Q1 2023.
- Increased adjusted operating margin to 45.2%.
- Operating margin decreased to 16.9% from 18.2% YoY.
- Exiting Russia and divesting Netspend impacts reported revenues.
Delivers Record Results for Third Quarter
Reaffirms Constant Currency Outlook (Excluding Dispositions)
Receives HSR Clearance for EVO Payments Acquisition and Netspend Consumer Divestiture
"We delivered record results in the third quarter consistent with our raised cycle guidance (on a constant currency basis and excluding dispositions), highlighting the resiliency of our business model and our ongoing track record of execution across market cycles,” said
“We achieved these results while making substantial progress on our strategic and financing initiatives during the period. We received Hart-Scott-Rodino clearance in
Sloan continued, “We took steps to finance the EVO transaction with a
Sloan concluded, “These transactions will serve to accelerate our strategy and provide us with enhanced confidence in our growth and margin targets over the cycle. Upon closing, Merchant Solutions will represent approximately
Third Quarter 2022 Summary
-
GAAP revenues were
$2.29 billion $2.20 billion $1.05 $1.01 16.9% compared to18.2% in the prior year. -
Adjusted net revenues increased
3% (6% constant currency) to$2.06 billion $2.00 billion Russia and the Netspend consumer assets, classified as held for sale, adjusted net revenue increased9% on a constant currency basis. -
Adjusted earnings per share increased
14% (18% constant currency) to$2.48 $2.18 -
Adjusted operating margin expanded 240 basis points to
45.2% .
2022 Outlook
“We are pleased with our strong financial performance in the third quarter, which was consistent with our expectations despite ongoing macro headwinds,” said
“For 2022, we continue to expect constant currency adjusted net revenue growth of
“Our 2022 outlook presumes continuing recovery from the pandemic worldwide and a stable global macroeconomic environment throughout the remainder of this calendar year."
Whipple concluded, “We continue to expect the acquisition of EVO and the disposition of Netspend’s consumer business to close in the first quarter of 2023, subject to receipt of regulatory approvals and satisfaction of customary closing conditions."
Capital Allocation
Global Payments’ Board of Directors approved a dividend of
Conference Call
Global Payments’ management will host a live audio webcast today,
Non-GAAP Financial Measures
Reconciliations of each of the non-GAAP financial measures to the most directly comparable GAAP measure are included in the schedules to this release.
About
Headquartered in
Forward-Looking Statements
Investors are cautioned that some of the statements we use in this report 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
In addition to factors previously disclosed in Global Payments’ reports filed with the
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)
(In thousands, except per share data) |
|||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
$ |
2,285,371 |
|
|
$ |
2,202,337 |
|
|
3.8 |
% |
|
$ |
6,722,531 |
|
|
$ |
6,329,781 |
|
|
6.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of service |
|
931,249 |
|
|
|
944,172 |
|
|
(1.4 |
)% |
|
|
2,850,706 |
|
|
|
2,805,728 |
|
|
1.6 |
% |
Selling, general and administrative |
|
918,757 |
|
|
|
858,082 |
|
|
7.1 |
% |
|
|
2,605,085 |
|
|
|
2,486,153 |
|
|
4.8 |
% |
Impairment of goodwill |
|
— |
|
|
|
— |
|
|
— |
|
|
|
833,075 |
|
|
|
— |
|
|
nm |
|
Loss on business dispositions |
|
48,933 |
|
|
|
— |
|
|
nm |
|
|
|
201,144 |
|
|
|
— |
|
|
nm |
|
|
|
1,898,939 |
|
|
|
1,802,254 |
|
|
|
|
|
6,490,010 |
|
|
|
5,291,881 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income |
|
386,432 |
|
|
|
400,083 |
|
|
(3.4 |
)% |
|
|
232,521 |
|
|
|
1,037,900 |
|
|
(77.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and other income |
|
20,393 |
|
|
|
6,320 |
|
|
222.7 |
% |
|
|
25,060 |
|
|
|
16,009 |
|
|
56.5 |
% |
Interest and other expense |
|
(135,184 |
) |
|
|
(82,187 |
) |
|
64.5 |
% |
|
|
(327,655 |
) |
|
|
(245,884 |
) |
|
33.3 |
% |
|
|
(114,791 |
) |
|
|
(75,867 |
) |
|
|
|
|
(302,595 |
) |
|
|
(229,875 |
) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before income taxes and equity in income of equity method investments |
|
271,641 |
|
|
|
324,216 |
|
|
(16.2 |
)% |
|
|
(70,074 |
) |
|
|
808,025 |
|
|
(108.7 |
)% |
Income tax expense |
|
14,255 |
|
|
|
50,117 |
|
|
(71.6 |
)% |
|
|
119,250 |
|
|
|
131,600 |
|
|
(9.4 |
)% |
Income (loss) before equity in income of equity method investments |
|
257,386 |
|
|
|
274,099 |
|
|
(6.1 |
)% |
|
|
(189,324 |
) |
|
|
676,425 |
|
|
(128.0 |
)% |
Equity in income of equity method investments, net of tax |
|
42,780 |
|
|
|
31,364 |
|
|
36.4 |
% |
|
|
74,074 |
|
|
|
94,261 |
|
|
(21.4 |
)% |
Net income (loss) |
|
300,166 |
|
|
|
305,463 |
|
|
(1.7 |
)% |
|
|
(115,250 |
) |
|
|
770,686 |
|
|
(115.0 |
)% |
Net income attributable to noncontrolling interests, net of tax |
|
(9,712 |
) |
|
|
(8,727 |
) |
|
11.3 |
% |
|
|
(22,563 |
) |
|
|
(13,679 |
) |
|
64.9 |
% |
Net income (loss) attributable to |
$ |
290,454 |
|
|
$ |
296,736 |
|
|
(2.1 |
)% |
|
$ |
(137,813 |
) |
|
$ |
757,007 |
|
|
(118.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) per share attributable to |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings (loss) per share |
$ |
1.06 |
|
|
$ |
1.02 |
|
|
3.9 |
% |
|
$ |
(0.49 |
) |
|
$ |
2.57 |
|
|
(119.1 |
)% |
Diluted earnings (loss) per share |
$ |
1.05 |
|
|
$ |
1.01 |
|
|
4.0 |
% |
|
$ |
(0.49 |
) |
|
$ |
2.56 |
|
|
(119.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average number of shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
275,030 |
|
|
|
291,502 |
|
|
|
|
|
278,411 |
|
|
|
294,262 |
|
|
|
||
Diluted |
|
275,435 |
|
|
|
292,507 |
|
|
|
|
|
278,411 |
|
|
|
295,421 |
|
|
|
||
Note: nm = not meaningful. |
|||||||||||||||||||||
SCHEDULE 2 NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(In thousands, except per share data) |
|||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||
|
|
|
|
||||||||||||||
|
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted net revenue |
$ |
2,058,237 |
|
$ |
2,000,327 |
|
2.9 |
% |
|
$ |
6,069,342 |
|
$ |
5,753,082 |
|
5.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted operating income |
|
930,619 |
|
|
855,573 |
|
8.8 |
% |
|
|
2,635,442 |
|
|
2,400,876 |
|
9.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted net income attributable to |
|
683,632 |
|
|
637,328 |
|
7.3 |
% |
|
|
1,926,248 |
|
|
1,781,696 |
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted diluted earnings per share attributable to |
$ |
2.48 |
|
$ |
2.18 |
|
13.9 |
% |
|
$ |
6.91 |
|
$ |
6.03 |
|
14.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Supplemental Non-GAAP ⁽¹⁾ |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted net revenue⁽¹⁾ |
$ |
1,927,215 |
|
$ |
1,829,579 |
|
5.3 |
% |
|
$ |
5,629,117 |
|
$ |
5,183,707 |
|
8.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted operating income⁽¹⁾ |
$ |
876,625 |
|
$ |
812,112 |
|
7.9 |
% |
|
$ |
2,505,920 |
|
$ |
2,234,923 |
|
5.3 |
% |
| _______________ | |
(1) |
The supplemental non-GAAP information reflects the pending divestiture of our consumer business. |
|
|
|
See Schedules 6 and 7 for a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure, Schedules 8 and 9 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 10 for a discussion of non-GAAP financial measures. |
SCHEDULE 3 SEGMENT INFORMATION (UNAUDITED)
(In thousands) |
||||||||||||||||||||||
|
|
Three Months Ended |
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
% Change |
||||||||||||||||
|
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchant Solutions |
|
$ |
1,596,326 |
|
|
$ |
1,450,023 |
|
|
$ |
1,495,898 |
|
|
$ |
1,357,617 |
|
|
6.7 |
% |
|
6.8 |
% |
Issuer Solutions |
|
|
566,039 |
|
|
|
489,149 |
|
|
|
545,486 |
|
|
|
481,075 |
|
|
3.8 |
% |
|
1.7 |
% |
Consumer Solutions |
|
|
147,337 |
|
|
|
142,599 |
|
|
|
183,591 |
|
|
|
183,593 |
|
|
(19.7 |
)% |
|
(22.3 |
)% |
Intersegment Elimination |
|
|
(24,331 |
) |
|
|
(23,534 |
) |
|
|
(22,638 |
) |
|
|
(21,958 |
) |
|
(7.5 |
)% |
|
(7.2 |
)% |
|
|
$ |
2,285,371 |
|
|
$ |
2,058,237 |
|
|
$ |
2,202,337 |
|
|
|
2,000,327 |
|
|
3.8 |
% |
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchant Solutions |
|
$ |
550,684 |
|
|
$ |
724,392 |
|
|
$ |
488,407 |
|
|
$ |
669,462 |
|
|
12.8 |
% |
|
8.2 |
% |
Issuer Solutions |
|
|
97,548 |
|
|
|
226,842 |
|
|
|
85,717 |
|
|
|
208,094 |
|
|
13.8 |
% |
|
9.0 |
% |
Consumer Solutions |
|
|
23,175 |
|
|
|
53,994 |
|
|
|
27,208 |
|
|
|
43,461 |
|
|
(14.8 |
)% |
|
24.2 |
% |
Corporate |
|
|
(236,042 |
) |
|
|
(74,609 |
) |
|
|
(201,249 |
) |
|
|
(65,443 |
) |
|
(17.3 |
)% |
|
(14.0 |
)% |
Loss on business dispositions |
|
|
(48,933 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
nm |
|
|
nm |
|
|
|
$ |
386,432 |
|
|
$ |
930,619 |
|
|
$ |
400,083 |
|
|
$ |
855,573 |
|
|
(3.4 |
)% |
|
8.8 |
% |
|
|
Nine Months Ended |
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
% Change |
||||||||||||||||
|
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchant Solutions |
|
$ |
4,651,061 |
|
|
$ |
4,221,149 |
|
|
$ |
4,190,524 |
|
|
$ |
3,796,146 |
|
|
11.0 |
% |
|
11.2 |
% |
Issuer Solutions |
|
|
1,663,008 |
|
|
|
1,441,763 |
|
|
|
1,596,104 |
|
|
|
1,411,345 |
|
|
4.2 |
% |
|
2.2 |
% |
Consumer Solutions |
|
|
478,082 |
|
|
|
473,344 |
|
|
|
608,645 |
|
|
|
608,599 |
|
|
(21.5 |
)% |
|
(22.2 |
)% |
Intersegment Elimination |
|
|
(69,620 |
) |
|
|
(66,913 |
) |
|
|
(65,492 |
) |
|
|
(63,006 |
) |
|
(6.3 |
)% |
|
(6.2 |
)% |
|
|
$ |
6,722,531 |
|
|
$ |
6,069,342 |
|
|
$ |
6,329,781 |
|
|
$ |
5,753,082 |
|
|
6.2 |
% |
|
5.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchant Solutions |
|
$ |
1,530,573 |
|
|
$ |
2,076,288 |
|
|
$ |
1,265,689 |
|
|
$ |
1,826,260 |
|
|
20.9 |
% |
|
13.7 |
% |
Issuer Solutions |
|
|
244,190 |
|
|
|
640,061 |
|
|
|
245,588 |
|
|
|
613,428 |
|
|
(0.6 |
)% |
|
4.3 |
% |
Consumer Solutions |
|
|
67,735 |
|
|
|
129,522 |
|
|
|
114,804 |
|
|
|
165,952 |
|
|
(41.0 |
)% |
|
(22.0 |
)% |
Corporate |
|
|
(575,758 |
) |
|
|
(210,428 |
) |
|
|
(588,181 |
) |
|
|
(204,764 |
) |
|
2.1 |
% |
|
(2.8 |
)% |
Impairment of goodwill |
|
|
(833,075 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
nm |
|
|
nm |
|
Loss on business dispositions |
|
|
(201,144 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
nm |
|
|
nm |
|
|
|
$ |
232,521 |
|
|
$ |
2,635,442 |
|
|
$ |
1,037,900 |
|
|
$ |
2,400,876 |
|
|
(77.6 |
)% |
|
9.8 |
% |
| _______________ |
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. |
|
During the third quarter of 2022, as a result of the pending divestiture of our consumer business and changes in how the business is now managed, we have realigned the businesses previously comprising our Business and Consumer Solutions segment to include the business-to-business portion within our Issuer Solutions segment and the consumer portion within our Consumer Solutions segment. Our three reportable segments now are: Merchant Solutions, Issuer Solutions and Consumer Solutions. The presentation of segment information for the three and nine months ended |
|
Note: Amounts may not sum due to rounding. |
|
Note: nm = not meaningful. |
SCHEDULE 4 CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except share data) |
|||||||
|
|
|
|
||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,993,840 |
|
|
$ |
1,979,308 |
|
Accounts receivable, net |
|
998,231 |
|
|
|
946,247 |
|
Settlement processing assets |
|
1,740,844 |
|
|
|
1,143,539 |
|
Current assets held for sale |
|
93,740 |
|
|
|
4,779 |
|
Prepaid expenses and other current assets |
|
626,697 |
|
|
|
637,112 |
|
Total current assets |
|
5,453,352 |
|
|
|
4,710,985 |
|
|
|
23,421,031 |
|
|
|
24,813,274 |
|
Other intangible assets, net |
|
9,907,884 |
|
|
|
11,633,709 |
|
Property and equipment, net |
|
1,759,235 |
|
|
|
1,687,586 |
|
Deferred income taxes |
|
25,657 |
|
|
|
12,117 |
|
Noncurrent assets held for sale |
|
1,038,806 |
|
|
|
— |
|
Other noncurrent assets |
|
2,332,784 |
|
|
|
2,422,042 |
|
Total assets |
$ |
43,938,749 |
|
|
$ |
45,279,713 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Settlement lines of credit |
$ |
440,950 |
|
|
$ |
484,202 |
|
Current portion of long-term debt |
|
1,157,811 |
|
|
|
78,505 |
|
Accounts payable and accrued liabilities |
|
2,207,551 |
|
|
|
2,542,256 |
|
Settlement processing obligations |
|
1,795,140 |
|
|
|
1,358,051 |
|
Current liabilities held for sale |
|
75,233 |
|
|
|
— |
|
Total current liabilities |
|
5,676,685 |
|
|
|
4,463,014 |
|
Long-term debt |
|
12,289,826 |
|
|
|
11,414,809 |
|
Deferred income taxes |
|
2,439,657 |
|
|
|
2,793,427 |
|
Noncurrent liabilities held for sale |
|
4,494 |
|
|
|
— |
|
Other noncurrent liabilities |
|
655,132 |
|
|
|
739,046 |
|
Total liabilities |
|
21,065,794 |
|
|
|
19,410,296 |
|
Commitments and contingencies |
|
|
|
||||
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 |
|
— |
|
|
|
— |
|
Paid-in capital |
|
20,717,133 |
|
|
|
22,880,261 |
|
Retained earnings |
|
2,547,947 |
|
|
|
2,982,122 |
|
Accumulated other comprehensive loss |
|
(604,501 |
) |
|
|
(234,182 |
) |
Total |
|
22,660,579 |
|
|
|
25,628,201 |
|
Noncontrolling interests |
|
212,376 |
|
|
|
241,216 |
|
Total equity |
|
22,872,955 |
|
|
|
25,869,417 |
|
Total liabilities and equity |
$ |
43,938,749 |
|
|
$ |
45,279,713 |
|
SCHEDULE 5 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands) |
|||||||
|
Nine Months Ended |
||||||
|
|
|
|
||||
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net (loss) income |
$ |
(115,250 |
) |
|
$ |
770,686 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization of property and equipment |
|
299,348 |
|
|
|
292,230 |
|
Amortization of acquired intangibles |
|
962,413 |
|
|
|
973,948 |
|
Amortization of capitalized contract costs |
|
81,052 |
|
|
|
68,112 |
|
Share-based compensation expense |
|
122,465 |
|
|
|
146,097 |
|
Provision for operating losses and credit losses |
|
87,071 |
|
|
|
73,286 |
|
Noncash lease expense |
|
63,211 |
|
|
|
80,371 |
|
Deferred income taxes |
|
(281,376 |
) |
|
|
(136,004 |
) |
Equity in income of equity method investments, net of tax |
|
(74,074 |
) |
|
|
(94,261 |
) |
Facilities exit charges |
|
27,662 |
|
|
|
— |
|
Distribution received on investments |
|
8,212 |
|
|
|
26,757 |
|
Impairment of goodwill |
|
833,075 |
|
|
|
— |
|
Loss on business dispositions |
|
201,144 |
|
|
|
— |
|
Other, net |
|
(3,273 |
) |
|
|
(6,790 |
) |
Changes in operating assets and liabilities, net of the effects of business combinations: |
|
|
|
||||
Accounts receivable |
|
(107,908 |
) |
|
|
(123,370 |
) |
Settlement processing assets and obligations, net |
|
(117,989 |
) |
|
|
28,242 |
|
Prepaid expenses and other assets |
|
(224,529 |
) |
|
|
(185,973 |
) |
Accounts payable and other liabilities |
|
(226,746 |
) |
|
|
114,279 |
|
Net cash provided by operating activities |
|
1,534,508 |
|
|
|
2,027,610 |
|
Cash flows from investing activities: |
|
|
|
||||
Business combinations and other acquisitions, net of cash acquired |
|
(24,969 |
) |
|
|
(946,377 |
) |
Capital expenditures |
|
(463,357 |
) |
|
|
(350,745 |
) |
Effect on cash from sale of business |
|
(29,755 |
) |
|
|
— |
|
Proceeds from sale of investments |
|
31,046 |
|
|
|
— |
|
Other, net |
|
101 |
|
|
|
1,248 |
|
Net cash used in investing activities |
|
(486,934 |
) |
|
|
(1,295,874 |
) |
Cash flows from financing activities: |
|
|
|
||||
Net (repayments of) borrowings from settlement lines of credit |
|
(2,770 |
) |
|
|
244,858 |
|
Proceeds from long-term debt |
|
9,124,449 |
|
|
|
3,909,988 |
|
Repayments of long-term debt |
|
(7,193,661 |
) |
|
|
(2,434,805 |
) |
Payments of debt issuance costs |
|
(44,360 |
) |
|
|
(8,569 |
) |
Repurchases of common stock |
|
(2,139,731 |
) |
|
|
(1,833,689 |
) |
Proceeds from stock issued under share-based compensation plans |
|
33,776 |
|
|
|
38,570 |
|
Common stock repurchased - share-based compensation plans |
|
(38,366 |
) |
|
|
(84,659 |
) |
Distributions to noncontrolling interests |
|
(17,729 |
) |
|
|
— |
|
Contribution from a noncontrolling interest |
|
— |
|
|
|
46,320 |
|
Payment of contingent consideration in business combination |
|
(15,726 |
) |
|
|
— |
|
Purchase of capped calls related to issuance of convertible notes |
|
(302,375 |
) |
|
|
— |
|
Dividends paid |
|
(208,082 |
) |
|
|
(188,203 |
) |
Net cash used in financing activities |
|
(804,575 |
) |
|
|
(310,189 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(208,529 |
) |
|
|
(42,704 |
) |
Increase in cash, cash equivalents and restricted cash |
|
34,470 |
|
|
|
378,843 |
|
Cash, cash equivalents and restricted cash, beginning of the period |
|
2,123,023 |
|
|
|
2,089,771 |
|
Cash, cash equivalents and restricted cash, end of the period |
$ |
2,157,493 |
|
|
$ |
2,468,614 |
|
SCHEDULE 6 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES (UNAUDITED)
(In thousands, except per share data) |
|||||||||||||||||
|
|
Three Months Ended |
|||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Income
|
|
Non-GAAP |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenues |
|
$ |
2,285,371 |
|
$ |
(227,134 |
) |
|
$ |
— |
|
$ |
— |
|
|
$ |
2,058,237 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating income |
|
$ |
386,432 |
|
$ |
(3,868 |
) |
|
$ |
548,055 |
|
$ |
— |
|
|
$ |
930,619 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income attributable to |
|
$ |
290,454 |
|
$ |
(3,868 |
) |
|
$ |
537,591 |
|
$ |
(140,545 |
) |
|
$ |
683,632 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Diluted earnings per share attributable to |
|
$ |
1.05 |
|
|
|
|
|
|
|
$ |
2.48 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||
Diluted weighted average shares outstanding |
|
|
275,435 |
|
|
|
|
|
|
|
|
275,435 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Three Months Ended |
|||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Income
|
|
Non-GAAP |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenues |
|
$ |
2,202,337 |
|
$ |
(202,010 |
) |
|
$ |
— |
|
$ |
— |
|
|
$ |
2,000,327 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating income |
|
$ |
400,083 |
|
$ |
966 |
|
|
$ |
454,524 |
|
$ |
— |
|
|
$ |
855,573 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income attributable to |
|
$ |
296,736 |
|
$ |
966 |
|
|
$ |
439,616 |
|
$ |
(99,990 |
) |
|
$ |
637,328 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Diluted earnings per share attributable to |
|
$ |
1.01 |
|
|
|
|
|
|
|
$ |
2.18 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||
Diluted weighted average shares outstanding |
|
|
292,507 |
|
|
|
|
|
|
|
|
292,507 |
|||||
| _______________ | |
(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 |
|
|
(2) |
For the three months ended |
|
|
|
Acquisition, integration and separation expenses for the three months ended |
|
|
For the three months ended |
|
|
|
|
For the three months ended |
|
|
(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. |
|
|
|
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)
(In thousands, except per share data) |
||||||||||||||||||
|
|
Nine Months Ended |
||||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Income
|
|
Non-GAAP |
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues |
|
$ |
6,722,531 |
|
|
$ |
(653,189 |
) |
|
$ |
— |
|
$ |
— |
|
|
$ |
6,069,342 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
$ |
232,521 |
|
|
$ |
1,520 |
|
|
$ |
2,401,402 |
|
$ |
— |
|
|
$ |
2,635,442 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to |
|
$ |
(137,813 |
) |
|
$ |
1,520 |
|
|
$ |
2,393,227 |
|
$ |
(330,686 |
) |
|
$ |
1,926,248 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per share attributable to |
|
$ |
(0.49 |
) |
|
|
|
|
|
|
|
$ |
6.91 |
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted average shares outstanding (4) |
|
|
278,411 |
|
|
|
|
|
|
|
|
|
278,816 |
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Nine Months Ended |
||||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Income
|
|
Non-GAAP |
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues |
|
$ |
6,329,781 |
|
|
$ |
(576,699 |
) |
|
$ |
— |
|
$ |
— |
|
|
$ |
5,753,082 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
$ |
1,037,900 |
|
|
$ |
3,992 |
|
|
$ |
1,358,983 |
|
$ |
— |
|
|
$ |
2,400,876 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to |
|
$ |
757,007 |
|
|
$ |
3,992 |
|
|
$ |
1,312,326 |
|
$ |
(291,629 |
) |
|
$ |
1,781,696 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share attributable to |
|
$ |
2.56 |
|
|
|
|
|
|
|
|
$ |
6.03 |
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted average shares outstanding |
|
|
295,421 |
|
|
|
|
|
|
|
|
|
295,421 |
|||||
| _______________ | |
(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 nine months ended |
|
|
(2) |
For the nine months ended |
|
|
|
Acquisition, integration and separation expenses for the nine months ended |
|
|
|
For the nine months ended |
|
|
|
For the nine months ended |
|
|
(3) |
Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment. |
|
|
(4) |
Includes 404,593 dilutive shares for non-GAAP. All awards are antidilutive for GAAP due to reporting a net loss. |
|
|
|
See "Non-GAAP Financial Measures" discussion on Schedule 10. |
|
|
|
Note: Amounts may not sum due to rounding. |
SCHEDULE 8 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES (UNAUDITED)
(In thousands) |
|||||||||||||||||||||||
|
|
Three Months Ended |
|||||||||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Non-GAAP |
|
Consumer
|
|
Supplemental
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Merchant Solutions |
|
$ |
1,596,326 |
|
|
$ |
(146,303 |
) |
|
$ |
— |
|
$ |
1,450,023 |
|
|
$ |
— |
|
|
$ |
1,450,023 |
|
Issuer Solutions |
|
|
566,039 |
|
|
|
(76,890 |
) |
|
|
— |
|
|
489,149 |
|
|
|
— |
|
|
|
489,149 |
|
Consumer Solutions |
|
|
147,337 |
|
|
|
(4,738 |
) |
|
|
— |
|
|
142,599 |
|
|
|
(142,599 |
) |
|
|
— |
|
Intersegment Eliminations |
|
|
(24,331 |
) |
|
|
797 |
|
|
|
— |
|
|
(23,534 |
) |
|
|
11,577 |
|
|
|
(11,957 |
) |
|
|
$ |
2,285,371 |
|
|
$ |
(227,134 |
) |
|
$ |
— |
|
$ |
2,058,237 |
|
|
$ |
(131,022 |
) |
|
$ |
1,927,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Merchant Solutions |
|
$ |
550,684 |
|
|
$ |
(67 |
) |
|
$ |
173,775 |
|
$ |
724,392 |
|
|
$ |
— |
|
|
$ |
724,392 |
|
Issuer Solutions |
|
|
97,548 |
|
|
|
937 |
|
|
|
128,357 |
|
|
226,842 |
|
|
|
— |
|
|
|
226,842 |
|
Consumer Solutions |
|
|
23,175 |
|
|
|
(4,738 |
) |
|
|
35,558 |
|
|
53,994 |
|
|
|
(53,994 |
) |
|
|
— |
|
Corporate |
|
|
(236,042 |
) |
|
|
— |
|
|
|
161,433 |
|
|
(74,609 |
) |
|
|
— |
|
|
|
(74,609 |
) |
Loss on business dispositions |
|
|
(48,933 |
) |
|
|
— |
|
|
|
48,933 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
$ |
386,432 |
|
|
$ |
(3,868 |
) |
|
$ |
548,055 |
|
$ |
930,619 |
|
|
$ |
(53,994 |
) |
|
$ |
876,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Three Months Ended |
|||||||||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Non-GAAP |
|
Consumer
|
|
Supplemental
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Merchant Solutions |
|
$ |
1,495,898 |
|
|
$ |
(138,281 |
) |
|
$ |
— |
|
$ |
1,357,617 |
|
|
$ |
— |
|
|
$ |
1,357,617 |
|
Issuer Solutions |
|
|
545,486 |
|
|
|
(64,411 |
) |
|
|
— |
|
|
481,075 |
|
|
|
— |
|
|
|
481,075 |
|
Consumer Solutions |
|
|
183,591 |
|
|
|
2 |
|
|
|
— |
|
|
183,593 |
|
|
|
(183,593 |
) |
|
|
— |
|
Intersegment Eliminations |
|
|
(22,638 |
) |
|
|
681 |
|
|
|
— |
|
|
(21,958 |
) |
|
|
12,844 |
|
|
|
(9,114 |
) |
|
|
$ |
2,202,337 |
|
|
$ |
(202,010 |
) |
|
$ |
— |
|
$ |
2,000,327 |
|
|
$ |
(170,749 |
) |
|
$ |
1,829,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Merchant Solutions |
|
$ |
488,407 |
|
|
$ |
103 |
|
|
$ |
180,952 |
|
$ |
669,462 |
|
|
$ |
— |
|
|
$ |
669,462 |
|
Issuer Solutions |
|
|
85,717 |
|
|
|
862 |
|
|
|
121,514 |
|
|
208,094 |
|
|
|
— |
|
|
|
208,094 |
|
Consumer Solutions |
|
|
27,208 |
|
|
|
— |
|
|
|
16,253 |
|
|
43,461 |
|
|
|
(43,461 |
) |
|
|
— |
|
Corporate |
|
|
(201,249 |
) |
|
|
— |
|
|
|
135,805 |
|
|
(65,443 |
) |
|
|
— |
|
|
|
(65,443 |
) |
|
|
$ |
400,083 |
|
|
$ |
966 |
|
|
$ |
454,524 |
|
$ |
855,573 |
|
|
$ |
(43,461 |
) |
|
$ |
812,112 |
|
| _______________ | |
(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 |
|
|
(2) |
For the three months ended |
|
|
|
Acquisition, integration and separation expenses for the three months ended |
|
|
|
For the three months ended |
|
|
|
For the three months ended |
|
|
(3) |
The supplemental non-GAAP information reflects the pending divestiture of our consumer business. |
|
|
|
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)
(In thousands) |
|||||||||||||||||||||||
|
|
Nine Months Ended |
|||||||||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Non-GAAP |
|
Consumer
|
|
Supplemental
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Merchant Solutions |
|
$ |
4,651,061 |
|
|
$ |
(429,912 |
) |
|
$ |
— |
|
$ |
4,221,149 |
|
|
$ |
— |
|
|
$ |
4,221,149 |
|
Issuer Solutions |
|
|
1,663,008 |
|
|
|
(221,245 |
) |
|
|
— |
|
|
1,441,763 |
|
|
|
— |
|
|
|
1,441,763 |
|
Consumer Solutions |
|
|
478,082 |
|
|
|
(4,738 |
) |
|
|
— |
|
|
473,344 |
|
|
|
(473,344 |
) |
|
|
— |
|
Intersegment Eliminations |
|
|
(69,620 |
) |
|
|
2,707 |
|
|
|
— |
|
|
(66,913 |
) |
|
|
33,118 |
|
|
|
(33,791 |
) |
|
|
$ |
6,722,531 |
|
|
$ |
(653,189 |
) |
|
$ |
— |
|
$ |
6,069,342 |
|
|
$ |
(440,225 |
) |
|
$ |
5,629,117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Merchant Solutions |
|
$ |
1,530,573 |
|
|
$ |
152 |
|
|
$ |
545,563 |
|
$ |
2,076,288 |
|
|
$ |
— |
|
|
$ |
2,076,288 |
|
Issuer Solutions |
|
|
244,190 |
|
|
|
6,106 |
|
|
|
389,765 |
|
|
640,061 |
|
|
|
— |
|
|
|
640,061 |
|
Consumer Solutions |
|
|
67,735 |
|
|
|
(4,738 |
) |
|
|
66,525 |
|
|
129,522 |
|
|
|
(129,522 |
) |
|
|
— |
|
Corporate |
|
|
(575,758 |
) |
|
|
— |
|
|
|
365,330 |
|
|
(210,428 |
) |
|
|
— |
|
|
|
(210,428 |
) |
Impairment of goodwill |
|
|
(833,075 |
) |
|
|
— |
|
|
|
833,075 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss on business dispositions |
|
|
(201,144 |
) |
|
|
— |
|
|
|
201,144 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
$ |
232,521 |
|
|
$ |
1,520 |
|
|
$ |
2,401,402 |
|
$ |
2,635,442 |
|
|
$ |
(129,522 |
) |
|
$ |
2,505,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Nine Months Ended |
|||||||||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Non-GAAP |
|
Consumer
|
|
Supplemental
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Merchant Solutions |
|
$ |
4,190,524 |
|
|
$ |
(394,379 |
) |
|
$ |
— |
|
$ |
3,796,146 |
|
|
$ |
— |
|
|
$ |
3,796,146 |
|
Issuer Solutions |
|
|
1,596,104 |
|
|
|
(184,807 |
) |
|
|
— |
|
|
1,411,345 |
|
|
|
— |
|
|
|
1,411,345 |
|
Consumer Solutions |
|
|
608,645 |
|
|
|
2 |
|
|
|
— |
|
|
608,599 |
|
|
|
(608,599 |
) |
|
|
— |
|
Intersegment Eliminations |
|
|
(65,492 |
) |
|
|
2,485 |
|
|
|
— |
|
|
(63,006 |
) |
|
|
39,222 |
|
|
|
(23,784 |
) |
|
|
$ |
6,329,781 |
|
|
$ |
(576,699 |
) |
|
$ |
— |
|
$ |
5,753,082 |
|
|
$ |
(569,376 |
) |
|
$ |
5,183,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Merchant Solutions |
|
$ |
1,265,689 |
|
|
$ |
530 |
|
|
$ |
560,041 |
|
$ |
1,826,260 |
|
|
$ |
— |
|
|
$ |
1,826,261 |
|
Issuer Solutions |
|
|
245,588 |
|
|
|
3,463 |
|
|
|
364,378 |
|
|
613,428 |
|
|
|
— |
|
|
|
613,428 |
|
Consumer Solutions |
|
|
114,804 |
|
|
|
— |
|
|
|
51,147 |
|
|
165,952 |
|
|
|
(165,952 |
) |
|
|
— |
|
Corporate |
|
|
(588,181 |
) |
|
|
— |
|
|
|
383,416 |
|
|
(204,764 |
) |
|
|
— |
|
|
|
(204,764 |
) |
|
|
$ |
1,037,900 |
|
|
$ |
3,992 |
|
|
$ |
1,358,983 |
|
$ |
2,400,876 |
|
|
$ |
(165,952 |
) |
|
$ |
2,234,923 |
|
| _______________ | |
(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 nine months ended |
|
|
(2) |
For the nine months ended |
|
|
|
Acquisition, integration and separation expenses for the nine months ended |
|
|
|
For the nine months ended |
|
|
|
For the nine months ended |
|
|
(3) |
The supplemental non-GAAP information reflects the pending divestiture of our consumer business. |
|
|
|
See "Non-GAAP Financial Measures" discussion on Schedule 10. |
|
|
|
Note: Amounts may not sum due to rounding. |
SCHEDULE 10 OUTLOOK SUMMARY (UNAUDITED)
(In millions, except per share data) |
|||||||||||||||
|
|
|
2021 |
|
|
2022 Outlook |
|
Growth |
|||||||
Revenues: |
|
|
|
|
|
|
|||||||||
GAAP revenues |
|
$ |
8,524 |
|
|
$ |
9,025 |
|
to |
$ |
9,085 |
|
|
|
|
Adjustments(1) |
|
|
(786 |
) |
|
|
(840 |
) |
|
|
(840 |
) |
|
|
|
FX Impact |
|
|
|
|
245 |
|
|
|
255 |
|
|
|
|||
Constant currency (CC) adjusted net revenue before dispositions |
|
|
7,738 |
|
|
|
8,430 |
|
to |
|
8,500 |
|
|
|
|
Less: Sale of Merchant Russia business |
|
|
(27 |
) |
|
|
(30 |
) |
|
|
(30 |
) |
|
|
|
CC adjusted net revenue after sale of Merchant Russia business |
|
|
7,711 |
|
|
|
8,400 |
|
to |
|
8,470 |
|
|
|
|
Less: Consumer business |
|
|
(331 |
) |
|
|
(315 |
) |
|
|
(315 |
) |
|
|
|
CC adjusted net revenue after sale of Merchant Russia and consumer businesses |
|
$ |
7,380 |
|
|
$ |
8,085 |
|
to |
$ |
8,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings Per Share: |
|
|
|
|
|
|
|
|
|||||||
GAAP diluted EPS |
|
$ |
3.29 |
|
|
$ |
0.33 |
|
to |
$ |
0.53 |
|
|
nm |
|
Adjustments(2) |
|
|
4.87 |
|
|
|
8.91 |
|
|
|
8.91 |
|
|
|
|
FX Impact |
|
|
|
|
0.29 |
|
|
|
0.31 |
|
|
|
|||
Constant currency adjusted EPS |
|
$ |
8.16 |
|
|
$ |
9.53 |
|
to |
$ |
9.75 |
|
|
|
|
_______________ |
|
(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 is classified as assets held for sale on our balance sheet. |
|
|
(2) |
Adjustments to 2021 GAAP diluted EPS included the removal of 1) software-related contract liability adjustments described above of |
|
|
Note: nm = not meaningful. |
|
NON-GAAP FINANCIAL MEASURES
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, goodwill impairment charges and 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 to 9. Adjusted operating margin is derived by dividing adjusted operating income by adjusted net revenue. The constant currency growth measures adjust for the impact of exchange rates and are calculated using average exchange rates during the comparable period in 2021. 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 reflects the pending divestiture of our consumer business. 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/20221031005242/en/
Investor contact:
investor.relations@globalpay.com
770-829-8478
Media contact:
media.relations@globalpay.com
770-829-8755
Source:
FAQ
What were Global Payments' Q3 2022 revenue results?
What are the adjusted earnings per share for GPN in Q3 2022?
When does Global Payments expect to close the EVO Payments acquisition?
What is Global Payments' outlook for adjusted net revenue growth in 2022?
How has Global Payments' operating margin changed in Q3 2022?
