Global Payments Reports Third Quarter 2024 Results
Global Payments (NYSE: GPN) reported third quarter 2024 results with GAAP revenue of $2.60 billion, up 5%, and adjusted net revenue of $2.36 billion, up 6%. GAAP diluted EPS decreased 11% to $1.24, while adjusted EPS grew 12% to $3.08. The company announced the sale of AdvancedMD to Francisco Partners and initiated a $600 million accelerated share repurchase plan. Global Payments reaffirmed its 2024 outlook, expecting adjusted net revenue growth of 6-7% to $9.17-9.30 billion and adjusted EPS growth of 11-12% to $11.54-11.70. The company approved a dividend of $0.25 per share and increased share repurchase authorization to $2.5 billion.
Global Payments (NYSE: GPN) ha riportato i risultati per il terzo trimestre del 2024 con un fatturato GAAP di 2,60 miliardi di dollari, in aumento del 5%, e un fatturato netto rettificato di 2,36 miliardi di dollari, in aumento del 6%. L'EPS GAAP diluito è diminuito dell'11% a 1,24 dollari, mentre l'EPS rettificato è cresciuto del 12% a 3,08 dollari. L'azienda ha annunciato la vendita di AdvancedMD a Francisco Partners e ha avviato un piano di riacquisto accelerato di azioni da 600 milioni di dollari. Global Payments ha confermato l'aspettativa per il 2024, prevedendo una crescita del fatturato netto rettificato del 6-7% a 9,17-9,30 miliardi di dollari e una crescita dell'EPS rettificato dell'11-12% a 11,54-11,70 dollari. L'azienda ha approvato un dividendo di 0,25 dollari per azione e ha aumentato l'autorizzazione al riacquisto di azioni a 2,5 miliardi di dollari.
Global Payments (NYSE: GPN) reportó resultados del tercer trimestre de 2024 con ingresos GAAP de 2.60 mil millones de dólares, un aumento del 5%, y ingresos netos ajustados de 2.36 mil millones de dólares, un aumento del 6%. El EPS GAAP diluido disminuyó un 11% a 1.24 dólares, mientras que el EPS ajustado creció un 12% a 3.08 dólares. La compañía anunció la venta de AdvancedMD a Francisco Partners e inició un plan acelerado de recompra de acciones de 600 millones de dólares. Global Payments reafirmó su perspectiva para 2024, esperando un crecimiento en ingresos netos ajustados del 6-7% a 9.17-9.30 mil millones de dólares y un crecimiento en EPS ajustado del 11-12% a 11.54-11.70 dólares. La compañía aprobó un dividendo de 0.25 dólares por acción y aumentó la autorización de recompra de acciones a 2.5 mil millones de dólares.
글로벌 페이먼츠 (NYSE: GPN)는 2024년 3분기 결과를 발표했으며, GAAP 수익은 26억 달러로 5% 증가했고, 조정된 순수익은 23.6억 달러로 6% 증가했습니다. GAAP 희석 EPS는 11% 감소하여 1.24달러, 조정 EPS는 12% 증가하여 3.08달러에 달했습니다. 회사는 AdvancedMD를 Francisco Partners에 매각하는 발표와 함께 6억 달러의 가속화된 자사주 매입 계획을 시작했습니다. 글로벌 페이먼츠는 2024년 전망을 재확인하며, 조정된 순수익 성장률을 6-7%로 91.7억-93억 달러로, 조정 EPS 성장률을 11-12%로 11.54-11.70달러로 예상했습니다. 회사는 주당 0.25달러의 배당금을 승인하고 자사주 매입 승인 금액을 25억 달러로 늘렸습니다.
Global Payments (NYSE: GPN) a annoncé les résultats pour le troisième trimestre 2024, avec un chiffre d'affaires GAAP de 2,60 milliards de dollars, en hausse de 5 %, et un chiffre d'affaires net ajusté de 2,36 milliards de dollars, en hausse de 6 %. Le BPA dilué GAAP a diminué de 11 % pour atteindre 1,24 dollar, tandis que le BPA ajusté a augmenté de 12 % pour atteindre 3,08 dollars. L'entreprise a annoncé la vente d'AdvancedMD à Francisco Partners et a initié un plan de rachat d'actions accéléré de 600 millions de dollars. Global Payments a réaffirmé ses prévisions pour 2024, s'attendant à une croissance des revenus nets ajustés de 6 à 7 % pour atteindre 9,17 à 9,30 milliards de dollars et une croissance du BPA ajusté de 11 à 12 % pour atteindre 11,54 à 11,70 dollars. L'entreprise a approuvé un dividende de 0,25 dollar par action et a augmenté l'autorisation de rachat d'actions à 2,5 milliards de dollars.
Global Payments (NYSE: GPN) hat die Ergebnisse für das dritte Quartal 2024 verkündet, mit GAAP-Umsätzen von 2,60 Milliarden US-Dollar, was einem Anstieg von 5% entspricht, und bereinigtem Nettoeinkommen von 2,36 Milliarden US-Dollar, ein Anstieg von 6%. Der verwässerte GAAP EPS fiel um 11% auf 1,24 USD, während der bereinigte EPS um 12% auf 3,08 USD stieg. Das Unternehmen kündigte den Verkauf von AdvancedMD an Francisco Partners an und initiierte einen beschleunigten Aktienrückkaufplan in Höhe von 600 Millionen US-Dollar. Global Payments bestätigte seine Prognose für 2024 und erwartet ein Wachstum des bereinigten Nettoeinkommens von 6-7% auf 9,17-9,30 Milliarden US-Dollar und ein Wachstum des bereinigten EPS von 11-12% auf 11,54-11,70 US-Dollar. Das Unternehmen genehmigte eine Dividende von 0,25 USD pro Aktie und erhöhte die Genehmigung zum Aktienrückkauf auf 2,5 Milliarden US-Dollar.
- Adjusted EPS increased 12% to $3.08
- Adjusted net revenue grew 6% to $2.36 billion
- Adjusted operating margin expanded 40 basis points to 46.1%
- Net leverage position reduced by quarter-turn to 3.3x
- Increased share repurchase authorization to $2.5 billion
- GAAP diluted EPS decreased 11% to $1.24
- GAAP operating margin declined to 18.3% from 22.5%
- Divestiture of AdvancedMD business unit
Insights
The Q3 results showcase a mixed performance with notable highlights. The
The adjusted operating margin expansion of 40 basis points to
The increased share repurchase authorization to
-
Third quarter 2024 GAAP diluted earnings per share (EPS) of
, a decrease of (11)%, and adjusted EPS of$1.24 , an increase of$3.08 12% -
Third quarter 2024 GAAP revenue of
, an increase of$2.60 billion 5% , and adjusted net revenue of , an increase of$2.36 billion 6% - Reaffirms outlook for 2024
- Reaches a definitive agreement to sell AdvancedMD
-
Enters into
accelerated share repurchase plan$600 million
“We are pleased with our solid financial performance in the third quarter, which reflects strong execution despite ongoing macroeconomic uncertainty,” said Cameron Bready, chief executive officer. “These results highlight the resiliency and durability of our business as we move aggressively to position Global Payments for the next phase of its growth journey as a leader in payments.”
Bready continued, “We are making substantial progress on the broad transformation agenda we detailed at our Investor Conference in September. We have refocused our strategy and are unifying our organization across assets and go-to-market activities, allowing us to unleash our full potential and play to our competitive strengths. I remain confident that our efforts to streamline and simplify our business will unlock substantial value and support sustainable growth well into the future, as we relentlessly pursue our ambition to be the worldwide partner of choice for commerce solutions.”
Bready concluded, “Consistent with these efforts, we have reached a definitive agreement to sell AdvancedMD to Francisco Partners. In connection with this sale, we also established a long-term commercial partnership with AdvancedMD, whereby we will continue to work together to deliver leading payments and commerce enablement solutions to its customers. This transaction further highlights the high quality assets in our portfolio and allows us to enhance value creation for shareholders. We expect this sale to close in the fourth quarter.”
Third Quarter 2024 Summary
-
GAAP revenues were
, compared to$2.60 billion in 2023; diluted earnings per share were$2.48 billion , compared to$1.24 in the prior year; and operating margin was$1.39 18.3% , compared to22.5% in the prior year. -
Adjusted net revenues increased
6% to , compared to$2.36 billion in the third quarter of 2023.$2.23 billion -
Adjusted earnings per share increased
12% to , compared to$3.08 in the third quarter of 2023.$2.75 -
Adjusted operating margin expanded 40 basis points to
46.1% .
2024 Outlook
“We are pleased with our financial and operational performance in the third quarter and year-to-date period,” said Josh Whipple, chief financial officer. “Notably, we produced strong adjusted free cash flow in the third quarter and also reduced our net leverage position by nearly a quarter-turn sequentially to 3.3 times, positioning us well to achieve our target by year end.”
Whipple continued, “The company continues to expect adjusted net revenue to be in a range of
Whipple concluded, “Our outlook highlights the consistency of our model and the benefits of our sharpened focus as we execute on our strategic priorities.”
Capital Allocation
Global Payments’ Board of Directors approved a dividend of
Conference Call
Global Payments’ management will host a live audio webcast today, October 30, 2024, at 8:00 a.m. ET 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.global payments.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 future financial and operating results, including revenue, earnings estimates, liquidity, and deleveraging plans, management’s expectations regarding future plans, objectives and goals; market and growth opportunities; capital available for allocation; the effects of general economic conditions on our business; statements about the benefits of acquisitions or divestitures, such as the proposed sale of AdvancedMD, Inc., including future financial and operating results, and the successful integration of our acquisitions; statements about the completion of anticipated benefits and 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,” “will,” “would,” 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; Global Payments’ ability to complete the proposed sale of AdvancedMD, Inc. on the proposed terms or on the anticipated timeline, or at all; 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 |
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Nine Months Ended |
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|
September 30, |
|
September 30, |
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|
|
2024 |
|
|
|
2023 |
|
|
% Change |
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|
2024 |
|
|
|
2023 |
|
|
% Change |
||
|
|
|
|
|
|
|
|
|
|
|
|
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Revenues |
$ |
2,601,552 |
|
|
$ |
2,475,691 |
|
|
5.1 |
% |
|
$ |
7,590,508 |
|
|
$ |
7,220,607 |
|
|
5.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of service |
|
946,945 |
|
|
|
915,531 |
|
|
3.4 |
% |
|
|
2,807,819 |
|
|
|
2,805,237 |
|
|
0.1 |
% |
Selling, general and administrative |
|
1,179,026 |
|
|
|
1,001,964 |
|
|
17.7 |
% |
|
|
3,282,232 |
|
|
|
3,058,605 |
|
|
7.3 |
% |
Net loss on business dispositions |
|
— |
|
|
|
— |
|
|
nm |
|
|
— |
|
|
|
139,095 |
|
|
nm |
||
|
|
2,125,971 |
|
|
|
1,917,495 |
|
|
|
|
|
6,090,051 |
|
|
|
6,002,937 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income |
|
475,581 |
|
|
|
558,196 |
|
|
(14.8 |
)% |
|
|
1,500,457 |
|
|
|
1,217,670 |
|
|
23.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and other income |
|
55,338 |
|
|
|
35,732 |
|
|
54.9 |
% |
|
|
126,572 |
|
|
|
74,830 |
|
|
69.1 |
% |
Interest and other expense |
|
(155,905 |
) |
|
|
(176,094 |
) |
|
(11.5 |
)% |
|
|
(477,210 |
) |
|
|
(490,463 |
) |
|
(2.7 |
)% |
|
|
(100,567 |
) |
|
|
(140,362 |
) |
|
|
|
|
(350,638 |
) |
|
|
(415,633 |
) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income taxes and equity in income of equity method investments |
|
375,014 |
|
|
|
417,834 |
|
|
(10.2 |
)% |
|
|
1,149,819 |
|
|
|
802,037 |
|
|
43.4 |
% |
Income tax expense |
|
57,378 |
|
|
|
58,936 |
|
|
(2.6 |
)% |
|
|
154,593 |
|
|
|
199,748 |
|
|
(22.6 |
)% |
Income before equity in income of equity method investments |
|
317,636 |
|
|
|
358,898 |
|
|
(11.5 |
)% |
|
|
995,226 |
|
|
|
602,289 |
|
|
65.2 |
% |
Equity in income of equity method investments, net of tax |
|
15,897 |
|
|
|
17,707 |
|
|
(10.2 |
)% |
|
|
50,644 |
|
|
|
54,101 |
|
|
(6.4 |
)% |
Net income |
|
333,533 |
|
|
|
376,605 |
|
|
(11.4 |
)% |
|
|
1,045,870 |
|
|
|
656,390 |
|
|
59.3 |
% |
Net income attributable to noncontrolling interests |
|
(18,408 |
) |
|
|
(14,775 |
) |
|
24.6 |
% |
|
|
(42,678 |
) |
|
|
(31,454 |
) |
|
35.7 |
% |
Net income attributable to Global Payments |
$ |
315,125 |
|
|
$ |
361,830 |
|
|
(12.9 |
)% |
|
$ |
1,003,192 |
|
|
$ |
624,936 |
|
|
60.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
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Earnings per share attributable to Global Payments: |
|
|
|
|
|
|
|
|
|
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|
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Basic earnings per share |
$ |
1.24 |
|
|
$ |
1.39 |
|
|
(10.8 |
)% |
|
$ |
3.93 |
|
|
$ |
2.40 |
|
|
63.8 |
% |
Diluted earnings per share |
$ |
1.24 |
|
|
$ |
1.39 |
|
|
(10.8 |
)% |
|
$ |
3.92 |
|
|
$ |
2.39 |
|
|
64.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
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Weighted-average number of shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
254,402 |
|
|
|
260,232 |
|
|
|
|
|
255,355 |
|
|
|
260,890 |
|
|
|
||
Diluted |
|
254,897 |
|
|
|
260,935 |
|
|
|
|
|
255,880 |
|
|
|
261,410 |
|
|
|
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|
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|
|
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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 |
|
Nine Months Ended |
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|
September 30, |
|
September 30, |
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|
2024 |
|
|
2023 |
|
% Change |
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|
2024 |
|
|
2023 |
|
% Change |
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|
|
|
|
|
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|
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|
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Adjusted net revenue |
$ |
2,356,931 |
|
$ |
2,232,442 |
|
5.6 |
% |
|
$ |
6,864,992 |
|
$ |
6,484,725 |
|
5.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted operating income |
$ |
1,086,567 |
|
$ |
1,019,525 |
|
6.6 |
% |
|
$ |
3,086,519 |
|
$ |
2,889,017 |
|
6.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted net income attributable to Global Payments |
$ |
784,987 |
|
$ |
718,632 |
|
9.2 |
% |
|
$ |
2,200,270 |
|
$ |
2,035,200 |
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted diluted earnings per share attributable to Global Payments |
$ |
3.08 |
|
$ |
2.75 |
|
11.8 |
% |
|
$ |
8.60 |
|
$ |
7.79 |
|
10.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
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Supplemental Non-GAAP(1) |
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|
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted net revenue(1) |
$ |
2,356,931 |
|
$ |
2,232,442 |
|
5.6 |
% |
|
$ |
6,864,992 |
|
$ |
6,339,283 |
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted operating income(1) |
$ |
1,086,567 |
|
$ |
1,019,525 |
|
6.6 |
% |
|
$ |
3,086,519 |
|
$ |
2,815,788 |
|
9.6 |
% |
----------------------------------------------------------------------------------
(1) |
The supplemental non-GAAP information reflects the divestiture of our consumer business which closed in April 2023. |
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|
|
See Schedule 6 and 7 for a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure, Schedule 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) GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) |
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|
Three Months Ended |
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|
||||||||||||||||
|
|
September 30, 2024 |
|
September 30, 2023 |
|
% Change |
||||||||||||||||
|
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
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|
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Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchant Solutions |
|
$ |
1,997,660 |
|
|
$ |
1,844,321 |
|
|
$ |
1,884,006 |
|
|
$ |
1,727,951 |
|
|
6.0 |
% |
|
6.7 |
% |
Issuer Solutions |
|
|
621,130 |
|
|
|
529,041 |
|
|
|
607,848 |
|
|
|
519,736 |
|
|
2.2 |
% |
|
1.8 |
% |
Intersegment eliminations |
|
|
(17,238 |
) |
|
|
(16,431 |
) |
|
|
(16,163 |
) |
|
|
(15,245 |
) |
|
(6.7 |
)% |
|
(7.8 |
)% |
|
|
$ |
2,601,552 |
|
|
$ |
2,356,931 |
|
|
$ |
2,475,691 |
|
|
$ |
2,232,442 |
|
|
5.1 |
% |
|
5.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchant Solutions |
|
$ |
707,546 |
|
|
$ |
921,472 |
|
|
$ |
637,864 |
|
|
$ |
847,678 |
|
|
10.9 |
% |
|
8.7 |
% |
Issuer Solutions |
|
|
106,045 |
|
|
|
240,385 |
|
|
|
113,877 |
|
|
|
246,643 |
|
|
(6.9 |
)% |
|
(2.5 |
)% |
Corporate |
|
|
(338,010 |
) |
|
|
(75,289 |
) |
|
|
(193,545 |
) |
|
|
(74,797 |
) |
|
(74.6 |
)% |
|
(0.7 |
)% |
|
|
$ |
475,581 |
|
|
$ |
1,086,567 |
|
|
$ |
558,196 |
|
|
$ |
1,019,525 |
|
|
(14.8 |
)% |
|
6.6 |
% |
|
|
Nine Months Ended |
|
|
|
|
||||||||||||||||
|
|
September 30, 2024 |
|
September 30, 2023 |
|
% Change |
||||||||||||||||
|
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchant Solutions |
|
$ |
5,802,780 |
|
|
$ |
5,340,324 |
|
|
$ |
5,331,909 |
|
|
$ |
4,866,484 |
|
|
8.8 |
% |
|
9.7 |
% |
Issuer Solutions |
|
|
1,837,373 |
|
|
|
1,571,143 |
|
|
|
1,769,196 |
|
|
|
1,515,235 |
|
|
3.9 |
% |
|
3.7 |
% |
Consumer Solutions |
|
|
— |
|
|
|
— |
|
|
|
182,740 |
|
|
|
163,027 |
|
|
nm |
|
nm |
||
Intersegment Elimination |
|
|
(49,645 |
) |
|
|
(46,475 |
) |
|
|
(63,238 |
) |
|
|
(60,021 |
) |
|
21.5 |
% |
|
22.6 |
% |
|
|
$ |
7,590,508 |
|
|
$ |
6,864,992 |
|
|
$ |
7,220,607 |
|
|
$ |
6,484,725 |
|
|
5.1 |
% |
|
5.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchant Solutions |
|
$ |
1,960,509 |
|
|
$ |
2,596,658 |
|
|
$ |
1,748,622 |
|
|
$ |
2,351,195 |
|
|
12.1 |
% |
|
10.4 |
% |
Issuer Solutions |
|
|
322,517 |
|
|
|
728,408 |
|
|
|
292,388 |
|
|
|
697,796 |
|
|
10.3 |
% |
|
4.4 |
% |
Consumer Solutions |
|
|
— |
|
|
|
— |
|
|
|
(3,908 |
) |
|
|
73,230 |
|
|
nm |
|
nm |
||
Corporate |
|
|
(782,569 |
) |
|
|
(238,548 |
) |
|
|
(680,337 |
) |
|
|
(233,203 |
) |
|
(15.0 |
)% |
|
(2.3 |
)% |
Net loss on business dispositions |
|
|
— |
|
|
|
— |
|
|
|
(139,095 |
) |
|
|
— |
|
|
nm |
|
nm |
||
|
|
$ |
1,500,457 |
|
|
$ |
3,086,519 |
|
|
$ |
1,217,670 |
|
|
$ |
2,889,017 |
|
|
23.2 |
% |
|
6.8 |
% |
----------------------------------------------------------------------------------
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. |
|
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) |
|||||||
|
September 30, 2024 |
|
December 31, 2023 |
||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
2,941,940 |
|
|
$ |
2,088,887 |
|
Accounts receivable, net |
|
1,150,840 |
|
|
|
1,120,078 |
|
Settlement processing assets |
|
3,020,936 |
|
|
|
4,097,417 |
|
Prepaid expenses and other current assets |
|
787,366 |
|
|
|
767,377 |
|
Total current assets |
|
7,901,082 |
|
|
|
8,073,759 |
|
Goodwill |
|
26,959,567 |
|
|
|
26,743,523 |
|
Other intangible assets, net |
|
9,318,535 |
|
|
|
10,168,046 |
|
Property and equipment, net |
|
2,334,574 |
|
|
|
2,190,005 |
|
Deferred income taxes |
|
80,714 |
|
|
|
111,712 |
|
Notes receivable |
|
756,620 |
|
|
|
713,123 |
|
Other noncurrent assets |
|
2,634,753 |
|
|
|
2,570,018 |
|
Total assets |
$ |
49,985,845 |
|
|
$ |
50,570,186 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Settlement lines of credit |
$ |
788,052 |
|
|
$ |
981,244 |
|
Current portion of long-term debt |
|
1,552,863 |
|
|
|
620,585 |
|
Accounts payable and accrued liabilities |
|
2,730,189 |
|
|
|
2,824,979 |
|
Settlement processing obligations |
|
3,457,773 |
|
|
|
3,698,921 |
|
Total current liabilities |
|
8,528,877 |
|
|
|
8,125,729 |
|
Long-term debt |
|
15,215,847 |
|
|
|
15,692,297 |
|
Deferred income taxes |
|
1,948,610 |
|
|
|
2,242,105 |
|
Other noncurrent liabilities |
|
672,902 |
|
|
|
722,540 |
|
Total liabilities |
|
26,366,236 |
|
|
|
26,782,671 |
|
Commitments and contingencies |
|
|
|
||||
Redeemable noncontrolling interests |
|
156,630 |
|
|
|
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 September 30, 2024 and December 31, 2023; 254,401,583 issued and outstanding at September 30, 2024 and 260,382,746 issued and outstanding at December 31, 2023 |
|
— |
|
|
|
— |
|
Paid-in capital |
|
18,810,835 |
|
|
|
19,800,953 |
|
Retained earnings |
|
4,269,896 |
|
|
|
3,457,182 |
|
Accumulated other comprehensive loss |
|
(269,338 |
) |
|
|
(258,925 |
) |
Total Global Payments shareholders’ equity |
|
22,811,393 |
|
|
|
22,999,210 |
|
Nonredeemable noncontrolling interests |
|
651,586 |
|
|
|
280,340 |
|
Total equity |
|
23,462,979 |
|
|
|
23,279,550 |
|
Total liabilities, redeemable noncontrolling interests and equity |
$ |
49,985,845 |
|
|
$ |
50,570,186 |
|
SCHEDULE 5 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) |
|||||||
Nine Months Ended |
|||||||
|
September 30, 2024 |
|
September 30, 2023 |
||||
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
1,045,870 |
|
|
$ |
656,390 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization of property and equipment |
|
368,905 |
|
|
|
342,025 |
|
Amortization of acquired intangibles |
|
1,036,768 |
|
|
|
986,026 |
|
Amortization of capitalized contract costs |
|
102,926 |
|
|
|
90,463 |
|
Share-based compensation expense |
|
134,361 |
|
|
|
173,325 |
|
Provision for operating losses and credit losses |
|
60,677 |
|
|
|
84,154 |
|
Noncash lease expense |
|
44,205 |
|
|
|
49,805 |
|
Deferred income taxes |
|
(251,652 |
) |
|
|
(407,767 |
) |
Paid-in-kind interest capitalized to principal of notes receivable |
|
(54,743 |
) |
|
|
(29,113 |
) |
Equity in income of equity method investments, net of tax |
|
(50,644 |
) |
|
|
(54,101 |
) |
Technology asset charge |
|
55,808 |
|
|
|
— |
|
Net loss on business dispositions |
|
— |
|
|
|
139,095 |
|
Other, net |
|
22,869 |
|
|
|
36,715 |
|
Changes in operating assets and liabilities, net of the effects of business combinations: |
|
|
|
||||
Accounts receivable |
|
(39,204 |
) |
|
|
(51,490 |
) |
Settlement processing assets and obligations, net |
|
789,702 |
|
|
|
(29,857 |
) |
Prepaid expenses and other assets |
|
(167,511 |
) |
|
|
(266,923 |
) |
Accounts payable and other liabilities |
|
(219,081 |
) |
|
|
(127,456 |
) |
Net cash provided by operating activities |
|
2,879,256 |
|
|
|
1,591,291 |
|
Cash flows from investing activities: |
|
|
|
||||
Business combinations and other acquisitions, net of cash and restricted cash acquired |
|
(373,790 |
) |
|
|
(4,099,766 |
) |
Capital expenditures |
|
(490,913 |
) |
|
|
(500,795 |
) |
Issuance of notes receivable |
|
— |
|
|
|
(50,000 |
) |
Repayment of notes receivable |
|
— |
|
|
|
50,000 |
|
Net cash from sales of businesses |
|
— |
|
|
|
478,695 |
|
Proceeds from sale of investments |
|
18,076 |
|
|
|
— |
|
Other, net |
|
6 |
|
|
|
2,187 |
|
Net cash used in investing activities |
|
(846,621 |
) |
|
|
(4,119,679 |
) |
Cash flows from financing activities: |
|
|
|
||||
Net repayments of settlement lines of credit |
|
(184,454 |
) |
|
|
(33,328 |
) |
Net borrowings from (repayments of) commercial paper notes |
|
(1,367,859 |
) |
|
|
1,896,513 |
|
Proceeds from long-term debt |
|
7,637,904 |
|
|
|
8,861,129 |
|
Repayments of long-term debt |
|
(5,802,954 |
) |
|
|
(7,628,854 |
) |
Payments of debt issuance costs |
|
(33,056 |
) |
|
|
(12,735 |
) |
Repurchases of common stock |
|
(900,047 |
) |
|
|
(418,271 |
) |
Proceeds from stock issued under share-based compensation plans |
|
33,531 |
|
|
|
51,085 |
|
Common stock repurchased - share-based compensation plans |
|
(53,780 |
) |
|
|
(37,236 |
) |
Distributions to noncontrolling interests |
|
(29,356 |
) |
|
|
(24,315 |
) |
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 |
|
(190,478 |
) |
|
|
(195,611 |
) |
Net cash provided by (used in) financing activities |
|
(1,151,073 |
) |
|
|
2,458,377 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
1,078 |
|
|
|
(35,730 |
) |
Increase (decrease) in cash, cash equivalents and restricted cash |
|
882,640 |
|
|
|
(105,741 |
) |
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 |
$ |
3,139,515 |
|
|
$ |
2,109,865 |
|
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 September 30, 2024 |
||||||||||||||||||
|
|
GAAP |
|
Net Revenue Adjustments(1) |
|
Earnings Adjustments(2) |
|
Income Taxes on Adjustments(3) |
|
Non-GAAP |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
|
$ |
2,601,552 |
|
$ |
(244,621 |
) |
|
$ |
— |
|
$ |
— |
|
|
$ |
2,356,931 |
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income |
|
$ |
475,581 |
|
$ |
986 |
|
|
$ |
610,000 |
|
$ |
— |
|
|
$ |
1,086,567 |
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to Global Payments |
|
$ |
315,125 |
|
$ |
986 |
|
|
$ |
591,467 |
|
$ |
(122,591 |
) |
|
$ |
784,987 |
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share attributable to Global Payments |
|
$ |
1.24 |
|
|
|
|
|
|
|
$ |
3.08 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted weighted average shares outstanding |
|
|
254,897 |
|
|
|
|
|
|
|
|
254,897 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended September 30, 2023 |
||||||||||||||||||
|
|
GAAP |
|
Net Revenue Adjustments(1) |
|
Earnings Adjustments(2) |
|
Income Taxes on Adjustments(3) |
|
Non-GAAP |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
|
$ |
2,475,691 |
|
$ |
(243,249 |
) |
|
$ |
— |
|
$ |
— |
|
|
$ |
2,232,442 |
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income |
|
$ |
558,196 |
|
$ |
541 |
|
|
$ |
460,787 |
|
$ |
— |
|
|
$ |
1,019,525 |
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to Global Payments |
|
$ |
361,830 |
|
$ |
541 |
|
|
$ |
464,389 |
|
$ |
(108,128 |
) |
|
$ |
718,632 |
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share attributable to Global Payments |
|
$ |
1.39 |
|
|
|
|
|
|
|
$ |
2.75 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted weighted average shares outstanding |
|
|
260,935 |
|
|
|
|
|
|
|
|
260,935 |
----------------------------------------------------------------------------------
(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 September 30, 2024 and 2023, net revenue adjustments also included |
|
|
(2) |
For the three months ended September 30, 2024, earnings adjustments to operating income included |
|
|
|
For the three months ended September 30, 2023, earnings adjustments to operating income included |
|
|
(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 September 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) |
||||||||||||||||||||
|
|
Nine Months Ended September 30, 2024 |
||||||||||||||||||
|
|
GAAP |
|
Net Revenue Adjustments(1) |
|
Earnings Adjustments(2) |
|
Income
|
|
Non-GAAP |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
|
$ |
7,590,508 |
|
$ |
(725,516 |
) |
|
$ |
— |
|
$ |
— |
|
|
$ |
6,864,992 |
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income |
|
$ |
1,500,457 |
|
$ |
1,878 |
|
|
$ |
1,584,184 |
|
$ |
— |
|
|
$ |
3,086,519 |
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to Global Payments |
|
$ |
1,003,192 |
|
$ |
1,878 |
|
|
$ |
1,559,406 |
|
$ |
(364,206 |
) |
|
$ |
2,200,270 |
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share attributable to Global Payments |
|
$ |
3.92 |
|
|
|
|
|
|
|
$ |
8.60 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted weighted average shares outstanding |
|
|
255,880 |
|
|
|
|
|
|
|
|
255,880 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine Months Ended September 30, 2023 |
||||||||||||||||||
|
|
GAAP |
|
Net Revenue Adjustments(1) |
|
Earnings Adjustments(2) |
|
Income
|
|
Non-GAAP |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
|
$ |
7,220,607 |
|
$ |
(735,882 |
) |
|
$ |
— |
|
$ |
— |
|
|
$ |
6,484,725 |
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income |
|
$ |
1,217,670 |
|
$ |
(18,100 |
) |
|
$ |
1,689,447 |
|
$ |
— |
|
|
$ |
2,889,017 |
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to Global Payments |
|
$ |
624,936 |
|
$ |
(18,100 |
) |
|
$ |
1,707,746 |
|
$ |
(279,382 |
) |
|
$ |
2,035,200 |
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share attributable to Global Payments |
|
$ |
2.39 |
|
|
|
|
|
|
|
$ |
7.79 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted weighted average shares outstanding |
|
|
261,410 |
|
|
|
|
|
|
|
|
261,410 |
----------------------------------------------------------------------------------
(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 September 30, 2024 and 2023, net revenue adjustments also included |
|
|
(2) |
For the nine months ended September 30, 2024, earnings adjustments to operating income included |
|
|
|
For the nine months ended September 30, 2023, earnings adjustments to operating income included |
|
|
|
Acquisition, integration and separation expenses for the nine months ended September 30, 2023 included |
|
|
|
For the nine months ended September 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 September 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 September 30, 2024 |
||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Non-GAAP |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Merchant Solutions |
|
$ |
1,997,660 |
|
|
$ |
(153,339 |
) |
|
$ |
— |
|
$ |
1,844,321 |
|
|
Issuer Solutions |
|
|
621,130 |
|
|
|
(92,089 |
) |
|
|
— |
|
|
529,041 |
|
|
Intersegment eliminations |
|
|
(17,238 |
) |
|
|
807 |
|
|
|
— |
|
|
(16,431 |
) |
|
|
|
$ |
2,601,552 |
|
|
$ |
(244,621 |
) |
|
$ |
— |
|
$ |
2,356,931 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
||||||||
Merchant Solutions |
|
$ |
707,546 |
|
|
$ |
560 |
|
|
$ |
213,365 |
|
$ |
921,472 |
|
|
Issuer Solutions |
|
|
106,045 |
|
|
|
426 |
|
|
|
133,914 |
|
|
240,385 |
|
|
Corporate |
|
|
(338,010 |
) |
|
|
— |
|
|
|
262,721 |
|
|
(75,289 |
) |
|
|
|
$ |
475,581 |
|
|
$ |
986 |
|
|
$ |
610,000 |
|
$ |
1,086,567 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended September 30, 2023 |
||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Non-GAAP |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Merchant Solutions |
|
$ |
1,884,006 |
|
|
$ |
(156,055 |
) |
|
$ |
— |
|
$ |
1,727,951 |
|
|
Issuer Solutions |
|
|
607,848 |
|
|
|
(88,112 |
) |
|
|
— |
|
|
519,736 |
|
|
Intersegment eliminations |
|
|
(16,163 |
) |
|
|
918 |
|
|
|
— |
|
|
(15,245 |
) |
|
|
|
$ |
2,475,691 |
|
|
$ |
(243,249 |
) |
|
$ |
— |
|
$ |
2,232,442 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
||||||||
Merchant Solutions |
|
$ |
637,864 |
|
|
$ |
1 |
|
|
$ |
209,813 |
|
$ |
847,678 |
|
|
Issuer Solutions |
|
|
113,877 |
|
|
|
540 |
|
|
|
132,226 |
|
|
246,643 |
|
|
Corporate |
|
|
(193,545 |
) |
|
|
— |
|
|
|
118,748 |
|
|
(74,797 |
) |
|
|
|
$ |
558,196 |
|
|
$ |
541 |
|
|
$ |
460,787 |
|
$ |
1,019,525 |
|
------------------------------------------------------------------------------------------
(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 September 30, 2024 and 2023, net revenue adjustments also included |
|
|
(2) |
For the three months ended September 30, 2024, earnings adjustments to operating income included |
|
|
|
For the three months ended September 30, 2023, earnings adjustments to operating income included |
|
|
|
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) |
||||||||||||||||||||||||
|
|
Nine Months Ended September 30, 2024 |
|
|
|
|
||||||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Non-GAAP |
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Merchant Solutions |
|
$ |
5,802,780 |
|
|
$ |
(462,456 |
) |
|
$ |
— |
|
$ |
5,340,324 |
|
|
|
|
|
|||||
Issuer Solutions |
|
|
1,837,373 |
|
|
|
(266,230 |
) |
|
|
— |
|
|
1,571,143 |
|
|
|
|
|
|||||
Intersegment eliminations |
|
|
(49,645 |
) |
|
|
3,170 |
|
|
|
— |
|
|
(46,475 |
) |
|
|
|
|
|||||
|
|
$ |
7,590,508 |
|
|
$ |
(725,516 |
) |
|
$ |
— |
|
$ |
6,864,992 |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Merchant Solutions |
|
$ |
1,960,509 |
|
|
$ |
560 |
|
|
$ |
635,589 |
|
$ |
2,596,658 |
|
|
|
|
|
|||||
Issuer Solutions |
|
|
322,517 |
|
|
|
1,317 |
|
|
|
404,574 |
|
|
728,408 |
|
|
|
|
|
|||||
Corporate |
|
|
(782,569 |
) |
|
|
— |
|
|
|
544,021 |
|
|
(238,548 |
) |
|
|
|
|
|||||
|
|
$ |
1,500,457 |
|
|
$ |
1,878 |
|
|
$ |
1,584,184 |
|
$ |
3,086,519 |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Nine Months Ended September 30, 2023 |
||||||||||||||||||||||
|
|
GAAP |
|
Net Revenue
|
|
Earnings
|
|
Non-GAAP |
|
Consumer
|
|
Supplemental
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Merchant Solutions |
|
$ |
5,331,909 |
|
|
$ |
(465,425 |
) |
|
$ |
— |
|
$ |
4,866,484 |
|
|
$ |
— |
|
|
$ |
4,866,484 |
|
|
Issuer Solutions |
|
|
1,769,196 |
|
|
|
(253,961 |
) |
|
|
— |
|
|
1,515,235 |
|
|
|
— |
|
|
|
1,515,235 |
|
|
Consumer Solutions |
|
|
182,740 |
|
|
|
(19,713 |
) |
|
|
— |
|
|
163,027 |
|
|
|
(163,027 |
) |
|
|
— |
|
|
Intersegment eliminations |
|
|
(63,238 |
) |
|
|
3,217 |
|
|
|
— |
|
|
(60,021 |
) |
|
|
17,585 |
|
|
|
(42,436 |
) |
|
|
|
$ |
7,220,607 |
|
|
$ |
(735,882 |
) |
|
$ |
— |
|
$ |
6,484,725 |
|
|
$ |
(145,442 |
) |
|
$ |
6,339,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Merchant Solutions |
|
$ |
1,748,622 |
|
|
$ |
23 |
|
|
$ |
602,550 |
|
$ |
2,351,195 |
|
|
$ |
— |
|
|
$ |
2,351,195 |
|
|
Issuer Solutions |
|
|
292,388 |
|
|
|
1,590 |
|
|
|
403,818 |
|
|
697,796 |
|
|
|
— |
|
|
|
697,796 |
|
|
Consumer Solutions |
|
|
(3,908 |
) |
|
|
(19,713 |
) |
|
|
96,851 |
|
|
73,230 |
|
|
|
(73,230 |
) |
|
|
— |
|
|
Corporate |
|
|
(680,337 |
) |
|
|
— |
|
|
|
447,134 |
|
|
(233,203 |
) |
|
|
— |
|
|
|
(233,203 |
) |
|
Net loss on business dispositions |
|
|
(139,095 |
) |
|
|
— |
|
|
|
139,095 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
$ |
1,217,670 |
|
|
$ |
(18,100 |
) |
|
$ |
1,689,447 |
|
$ |
2,889,017 |
|
|
$ |
(73,230 |
) |
|
$ |
2,815,788 |
|
----------------------------------------------------------------------------------
(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 September 30, 2024 and 2023, net revenue adjustments also included |
|
|
(2) |
For the nine months ended September 30, 2024, earnings adjustments to operating income included |
|
|
|
For the nine months ended September 30, 2023, earnings adjustments to operating income included |
|
|
|
Acquisition, integration and separation expenses for the nine months ended September 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 |
|
|
6.13 |
|
|
|
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 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. 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.
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 in business divestitures, business transformation activities, and certain other items specific to each reporting period as more fully described in the accompanying reconciliations in Schedules 6 and 7. 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.
Adjusted operating margin is derived by dividing adjusted operating income by adjusted net revenue.
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/20241030804195/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.
FAQ
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