Global Payments : Q3 2022 Trended Financial Highlights
October 31, 2022 at 06:43 pm IST
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Trended Financial Metrics
ADJUSTED EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS (NON-GAAP)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
CONSOLIDATED FINANCIAL HIGHLIGHTS:
Calendar Year 2021
Calendar Year 2022
(In millions rounded to nearest hundred thousand, except per share data)
Q1
Q2
Q3
Q4
CY
Q1
Q2
Q3
Mar 21
Jun 21
Sep 21
Dec 21
2021
Mar 22
Jun 22
Sep 22
ADJUSTED EARNINGS INCOME AND EXPENSE(1)
GAAP Revenues
$ 1,990.0
$ 2,137.4
$ 2,202.3
$ 2,194.0
$ 8,523.8
$ 2,156.3
$ 2,280.9
$ 2,285.4
Less: Adjustments
(177.8)
(196.9)
(202.0)
(209.1)
(785.8)
(203.6)
(222.5)
(227.1)
Adjusted net revenue
$ 1,812.2
$ 1,940.5
$ 2,000.3
$ 1,984.9
$ 7,738.0
$ 1,952.7
$ 2,058.5
$ 2,058.2
Adjusted operating expenses:
Cost of service
534.0
550.9
561.1
571.0
2,217.0
555.7
557.8
546.6
Selling, general and administrative
543.1
579.4
583.6
580.4
2,286.5
594.5
598.3
581.1
1,077.1
1,130.4
1,144.8
1,151.4
4,503.5
1,150.2
1,156.1
1,127.6
Adjusted operating income:
$ 735.1
$ 810.2
$ 855.6
$ 833.5
$ 3,234.3
$ 802.5
$ 902.4
$ 930.6
Adjusted interest and other income
4.2
5.5
6.6
3.3
19.6
1.7
3.0
20.5
Adjusted interest and other expense
(83.1)
(80.6)
(82.2)
(87.8)
(333.7)
(93.3)
(99.2)
(118.4)
(78.9)
(75.1)
(75.6)
(84.5)
(314.1)
(91.6)
(96.2)
(97.9)
Adjusted income before income taxes
656.2
735.1
780.0
749.0
2,920.3
710.9
806.1
832.8
Adjusted provision for income taxes
128.7
144.4
150.1
142.5
565.8
139.3
155.8
154.8
Adjusted net income
527.5
590.6
629.9
606.5
2,354.5
571.6
650.3
678.0
Plus: Equity Investment Income, net of tax
16.5
16.6
17.1
18.2
68.4
19.5
16.8
16.7
Net income attributable to noncontrolling interests, net of tax
(2.7)
(4.2)
(9.6)
(10.0)
(26.4)
(6.3)
(9.4)
(11.0)
Adjusted net income attributable to Global Payments
$ 541.4
$ 603.0
$ 637.3
$ 614.7
$ 2,396.4
$ 584.8
$ 657.8
$ 683.6
Diluted weighted average shares outstanding
297.7
296.1
292.5
288.5
293.7
282.6
278.5
275.4
Adjusted diluted earnings per share(2)
$ 1.82
$ 2.04
$ 2.18
$ 2.13
$ 8.16
$ 2.07
$ 2.36
$ 2.48
SELECTED BALANCE SHEET AND CASH FLOW HIGHLIGHTS
Available cash(3)
$ 1,112.6
$ 970.3
$ 1,108.6
$ 894.6
$ 894.6
$ 797.3
$ 700.8
$ 1,113.4
Debt(4)
$ 9,691.6
$ 10,269.6
$ 10,748.9
$ 11,493.3
$ 11,493.3
$ 11,844.0
$ 12,163.5
$ 13,447.6
Adjusted Free Cash Flow:(5)
Cash flow from operating activities
$ 599.4
$ 510.2
$ 918.0
$ 753.2
$ 2,780.8
$ 630.0
$ 568.1
$ 336.4
Changes in settlement/customer assets and obligations, net
34.2
(2.4)
(263.4)
(62.4)
(294.0)
(49.3)
(9.2)
338.4
Acquisition, integration, and separation expenses
91.7
78.2
69.3
98.7
337.9
51.2
62.3
107.8
Capital expenditures
(86.2)
(133.4)
(131.2)
(142.4)
(493.2)
(156.1)
(167.9)
(139.3)
Distributions to noncontrolling interests
-
-
-
-
-
(5.5)
(8.8)
(3.4)
$ 639.1
$ 452.6
$ 592.7
$ 647.1
$ 2,331.5
$ 470.4
$ 444.4
$ 639.9
(1) 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. Management believes adjusted net revenue more closely reflects the economic benefits to the company's core business and allows for better comparisons with industry peers. Management uses these non-GAAP financial measures, together with other metrics, to set goals for and measure the performance of the business and to determine incentive compensation. Adjusted net revenue, adjusted operating income, adjusted operating margin, adjusted net income and adjusted EPS should be considered in addition to, and not as substitutes for, revenues, operating income, net income and earnings per share determined in accordance with GAAP. The non-GAAP financial measures reflect management's judgment of particular items, and may not be comparable to similarly titled measures reported by other companies.
Adjusted net revenue excludes gross-up related payments associated with certain lines of business to reflect economic benefits to the company. On a GAAP basis, these payments are presented gross in both revenues and operating expenses. Adjusted operating income, adjusted net income and adjusted EPS exclude acquisition-related amortization expense, share-based compensation expense, acquisition, integration and separation expense, goodwill impairment charges and gain or losses on business divestitures, and certain other items specific to each reporting period. Adjusted operating margin is derived by dividing adjusted operating income by adjusted net revenue. Adjusted net revenue and adjusted EPS range on a constant currency basis excludes the estimated impact of foreign currency fluctuations and is 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.
(2) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding. For the nine months ended September 30, 2022, includes 404,593 dilutive shares for non-GAAP. For the three months ended June 30, 2022, Includes 341,681 dilutive shares for non-GAAP. All awards are antidilutive for GAAP due to reporting a net loss.
(3) Available cash is defined as cash and cash equivalents excluding settlement-related cash balances, funds held as collateral for merchant losses and funds held for customers.
(4) Debt excludes lines of credit that we use to fund settlement.
(5) Management believes adjusted free cash flow is a useful measure of the company's ability to service debt, return capital to shareholders, invest in the business and demonstrate value creation of our underlying operations. Adjusted free cash flow, a non-GAAP measure, is calculated as net operating cash flows, excluding the impact of settlement processing assets and obligations and customer/client deposits, plus acquisition, integration and separation expenses, less capital expenditures and distributions to non-controlling interests. Our measure of adjusted free cash flow reflects management's judgment of particular items and may not be comparable to similarly titled measures reported by other companies.
Note: Amounts may not sum due to rounding.
CY2022 Q3 Reconciliation
RECONCILIATION OF NON-GAAP INFORMATION TO GAAP (UNAUDITED)
THIRD QUARTER CY22
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
September 30, 2022
GAAP
Net Revenue Adjustment(1)
Earnings Adjustments(2)
Non-GAAP
Revenues
$ 2,285.4
$ (227.1)
$ -
$ 2,058.2
Operating expenses:
Cost of service
931.2
(77.7)
(307.0)
546.6
Selling, general and administrative
918.8
(145.6)
(192.1)
581.1
Impairment of goodwill
-
-
-
-
Loss on business dispositions
48.9
-
(48.9)
-
1,898.9
(223.3)
(548.1)
1,127.6
Operating income
$ 386.4
$ (3.9)
$ 548.1
$ 930.6
Interest and other income
20.4
-
0.1
20.5
Interest and other expense
(135.2)
-
16.8
(118.4)
(114.8)
-
16.9
(97.9)
Income before income taxes and equity in income of equity method investments
271.6
(3.9)
565.0
832.8
Income tax expense(3)
14.3
(0.9)
141.5
154.8
Income before equity in income of equity method investments
257.4
(3.0)
423.5
678.0
Equity in income of equity method investments, net of tax
42.8
-
(26.1)
16.7
Net income
$ 300.2
$ (3.0)
$ 397.4
$ 694.6
Net income attributable to noncontrolling interests, net of tax
(9.7)
-
(1.3)
(11.0)
Net income attributable to Global Payments
$ 290.5
$ (3.0)
$ 396.1
$ 683.6
Diluted shares(4)
275.4
275.4
Adjusted diluted earnings (loss) per share(4)
$ 1.05
$ 2.48
(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, 2022, net revenue adjustments also included $0.9 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses. Adjustments for the three months ended September 30, 2022 also included a $4.7 million adjustment 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, as noted in footnote 2 below.
(2) For the three months ended September 30, 2022, earnings adjustments to operating income included $307.0 million in cost of services (COS) and $192.1 million in selling, general and administrative expenses (SG&A). Adjustments to COS included amortization of acquired intangibles of $306.0 million and other items of $1.0 million. Adjustments to SG&A included share-based compensation expense of $37.1 million, acquisition, integration and separation expenses of $106.8 million, facilities exit charges of $31.7 million, and other items of $16.5 million.
Acquisition, integration and separation expenses for the three months ended September 30, 2022 included $34.1 million related to the pending divestiture of our consumer business, which is classified as assets held for sale on our balance sheet. These incremental expenses, which include card and marketing expenses, compensation and benefit expenses, and other expenses, were incurred as a result of contractual obligations with the purchasers of the consumer business and do not reflect the manner in which the Company would have operated the business and would not have otherwise been incurred absent the transaction.
For the three months ended September 30, 2022, earnings adjustments to operating income also included the $48.9 million loss on business dispositions.
(3) Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment.
(4) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding.
Note: Amounts may not sum due to rounding.
CY2022 Q2 Reconciliation
RECONCILIATION OF NON-GAAP INFORMATION TO GAAP (UNAUDITED)
SECOND QUARTER CY22
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
June 30, 2022
GAAP
Net Revenue Adjustment(1)
Earnings Adjustments(2)
Non-GAAP
Revenues
$ 2,280.9
$ (222.5)
$ -
$ 2,058.5
Operating expenses:
Cost of service
962.3
(76.7)
(327.8)
557.8
Selling, general and administrative
863.2
(147.6)
(117.3)
598.3
Impairment of goodwill
833.1
-
(833.1)
-
Loss on business dispositions
152.2
-
(152.2)
-
2,810.8
(224.2)
(1,430.4)
1,156.1
Operating (loss) income
$ (529.9)
$ 1.8
$ 1,430.4
$ 902.4
Interest and other income
3.0
-
-
3.0
Interest and other expense
(99.2)
-
-
(99.2)
(96.2)
-
-
(96.2)
(Loss) income before income taxes and equity in income of equity method investments
(626.1)
1.8
1,430.4
806.1
Income tax expense(3)
52.8
0.4
102.7
155.8
(Loss) income before equity in income of equity method investments
(678.9)
1.4
1,327.7
650.3
Equity in income of equity method investments, net of tax
13.8
-
3.0
16.8
Net (loss) income
$ (665.1)
$ 1.4
$ 1,330.7
$ 667.1
Net income attributable to noncontrolling interests, net of tax
(7.9)
-
(1.4)
(9.4)
Net (loss) income attributable to Global Payments
$ (673.0)
$ 1.4
$ 1,329.3
$ 657.8
Diluted shares(4)
278.2
278.5
Adjusted diluted earnings (loss) per share(4)
$ (2.42)
$ 2.36
(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, 2022, net revenue adjustments also included $1.8 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended June 30, 2022, earnings adjustments to operating income included $327.8 million in cost of services (COS) and $117.3 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $327.4 million and other items of $0.4 million. Adjustments to SG&A included share-based compensation expense of $47.0 million, acquisition and integration expenses of $61.8 million and other items of $8.5 million.
For the three months ended June 30, 2022, earnings adjustments to operating income also included the $833.1 million noncash goodwill impairment charge related to our former Business and Consumer Solutions segment, driven by the strategic review and pending divestiture of our consumer business, and the $152.2 million loss on business dispositions.
(3) Income taxes on adjustments, excluding loss on business disposals and impairment of goodwill, 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) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding. Includes 341,681 dilutive shares for non-GAAP. All awards are antidilutive for GAAP due to reporting a net loss.
Note: Amounts may not sum due to rounding.
CY2022 Q1 Reconciliation
RECONCILIATION OF NON-GAAP INFORMATION TO GAAP (UNAUDITED)
FIRST QUARTER CY22
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
March 31, 2022
GAAP
Net Revenue Adjustment(1)
Earnings Adjustments(2)
Non-GAAP
Revenues
$ 2,156.3
$ (203.6)
$ -
$ 1,952.7
Operating expenses:
Cost of service
957.2
(72.3)
(329.2)
555.7
Selling, general and administrative
823.1
(135.0)
(93.7)
594.5
1,780.3
(207.2)
(422.9)
1,150.2
Operating income
$ 375.9
$ 3.6
$ 422.9
$ 802.5
Interest and other income
1.7
-
-
1.7
Interest and other expense
(93.3)
-
-
(93.3)
(91.6)
-
-
(91.6)
Income before income taxes and equity in income of equity method investments
284.4
3.6
422.9
710.9
Income tax expense(3)
52.2
0.8
86.3
139.3
Income before equity in income of equity method investments
232.2
2.8
336.6
571.6
Equity in income of equity method investments, net of tax
17.5
-
2.0
19.5
Net income
$ 249.6
$ 2.8
$ 338.6
$ 591.1
Net income attributable to noncontrolling interests, net of income tax
(4.9)
-
(1.4)
(6.3)
Adjusted net income attributable to Global Payments
$ 244.7
$ 2.8
$ 337.3
$ 584.8
Diluted shares(4)
282.6
282.6
Adjusted diluted earnings per share(4)
$ 0.87
$ 2.07
(1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended March 31, 2022, net revenue adjustments also included $3.6 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended March 31, 2022, earnings adjustments to operating income included $329.2 million in cost of services (COS) and $93.7 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $329.0 million and other items of $0.2 million. Adjustments to SG&A include share-based compensation expense of $38.4 million, acquisition and integration expenses of $51.0 million and other items of $4.3 million.
(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) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding.
Note: Amounts may not sum due to rounding.
CY2021 Q4 Reconciliation
RECONCILIATION OF NON-GAAP INFORMATION TO GAAP (UNAUDITED)
FOURTH QUARTER CY21
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
December 31, 2021
GAAP
Net Revenue Adjustment(1)
Earnings Adjustments(2)
Non-GAAP
Revenues
$ 2,194.0
$ (209.1)
$ -
$ 1,984.9
Operating expenses:
Cost of service
968.0
(75.5)
(321.4)
571.0
Selling, general and administrative
905.0
(134.6)
(190.0)
580.4
1,873.0
(210.1)
(511.5)
1,151.4
Operating income
$ 321.0
$ 1.0
$ 511.5
$ 833.5
Interest and other income
3.3
-
-
3.3
Interest and other expense
(87.8)
-
-
(87.8)
(84.5)
-
-
(84.5)
Income before income taxes and equity in income of equity method investments
236.5
1.0
511.5
749.0
Income tax expense(3)
37.4
0.2
104.9
142.5
Income before equity in income of equity method investments
199.1
0.8
406.6
606.5
Equity in income of equity method investments, net of tax
18.1
-
0.1
18.2
Net income
$ 217.2
$ 0.8
$ 406.7
$ 624.7
Net income attributable to noncontrolling interests, net of income tax
(8.7)
-
(1.2)
(10.0)
Adjusted net income attributable to Global Payments
$ 208.5
$ 0.8
$ 405.5
$ 614.7
Diluted shares(4)
288.5
288.5
Adjusted diluted earnings per share(4)
$ 0.72
$ 2.13
(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 December 31, 2021, net revenue adjustments also included $1.0 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended December 31, 2021, earnings adjustments to operating income included $321.4 million in cost of services (COS) and $190.0 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $321.1 million and other items of $0.3 million. Adjustments to SG&A include share-based compensation expense of $34.7 million, acquisition and integration expenses of $98.6 million, facilities exit charges of $56.8 million and other items of $(0.1) million. Net income attributable to Global Payments also reflects the removal of $2.5 million of equity method investment earnings from our interest in a private equity investment fund.
(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) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding.
Note: Amounts may not sum due to rounding.
CY2021 Q3 Reconciliation
RECONCILIATION OF NON-GAAP INFORMATION TO GAAP (UNAUDITED)
THIRD QUARTER CY21
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
September 30, 2021
GAAP
Net Revenue Adjustment(1)
Earnings Adjustments(2)
Non-GAAP
Revenues
$ 2,202.3
$ (202.0)
$ -
$ 2,000.3
Operating expenses:
Cost of service
944.2
(65.3)
(317.8)
561.1
Selling, general and administrative
858.1
(137.7)
(136.7)
583.6
1,802.3
(203.0)
(454.5)
1,144.8
Operating income
$ 400.1
$ 1.0
$ 454.5
$ 855.6
Interest and other income
6.3
-
0.3
6.6
Interest and other expense
(82.2)
-
-
(82.2)
(75.9)
-
0.3
(75.6)
Income before income taxes and equity in income of equity method investments
324.2
1.0
454.8
780.0
Income tax expense(3)
50.1
0.2
99.8
150.1
Income before equity in income of equity method investments
274.1
0.8
355.0
629.9
Equity in income of equity method investments, net of tax
31.4
-
(14.3)
17.1
Net income
$ 305.5
$ 0.8
$ 340.7
$ 647.0
Net income attributable to noncontrolling interests, net of income tax
(8.7)
-
(0.9)
(9.6)
Adjusted net income attributable to Global Payments
$ 296.7
$ 0.8
$ 339.8
$ 637.3
Diluted shares(4)
292.5
292.5
Adjusted diluted earnings per share(4)
$ 1.01
$ 2.18
(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, 2021, net revenue adjustments also included $1.0 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended September 30, 2021, earnings adjustments to operating income included $317.8 million in cost of services (COS) and $136.7 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $319.9 million and other items of $(2.1) million. Adjustments to SG&A include share-based compensation expense of $65.6 million, acquisition and integration expenses of $71.6 million and other items of $(0.5) million. Net income attributable to Global Payments also reflects the removal of $14.5 million of equity method investment earnings from our interest in a private equity investment fund.
(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) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding.
Note: Amounts may not sum due to rounding.
CY2021 Q2 Reconciliation
RECONCILIATION OF NON-GAAP INFORMATION TO GAAP (UNAUDITED)
SECOND QUARTER CY21
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
June 30, 2021
GAAP
Net Revenue Adjustment(1)
Earnings Adjustments(2)
Non-GAAP
Revenues
$ 2,137.4
$ (196.9)
$ -
$ 1,940.5
Operating expenses:
Cost of service
936.3
(60.7)
(324.7)
550.9
Selling, general and administrative
838.6
(137.5)
(121.6)
579.4
1,774.9
(198.2)
(446.4)
1,130.4
Operating income
$ 362.6
$ 1.3
$ 446.4
$ 810.2
Interest and other income
5.5
-
-
5.5
Interest and other expense
(80.6)
-
-
(80.6)
(75.1)
-
-
(75.1)
Income before income taxes and equity in income of equity method investments
287.5
1.3
446.4
735.1
Income tax expense(3)
60.8
0.3
83.4
144.4
Income before equity in income of equity method investments
226.6
1.0
363.0
590.6
Equity in income of equity method investments, net of tax
40.2
-
(23.6)
16.6
Net income
$ 266.8
$ 1.0
$ 339.4
$ 607.1
Net income attributable to noncontrolling interests, net of income tax
(3.2)
-
(1.0)
(4.2)
Adjusted net income attributable to Global Payments
$ 263.6
$ 1.0
$ 338.4
$ 603.0
Diluted shares(4)
296.1
296.1
Adjusted diluted earnings per share(4)
$ 0.89
$ 2.04
(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, 2021, net revenue adjustments also included $1.3 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended June 30, 2021, earnings adjustments to operating income include $324.7 million in cost of services (COS) and $121.6 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $324.7 million. Adjustments to SG&A include share-based compensation expense of $43.3 million and acquisition and integration expenses of $78.3 million. Net income attributable to Global Payments also reflects the removal of $23.8 million of equity method investment earnings from our interest in a private equity investment fund.
(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) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding.
Note: Amounts may not sum due to rounding.
CY2021 Q1 Reconciliation
RECONCILIATION OF NON-GAAP INFORMATION TO GAAP (UNAUDITED)
FIRST QUARTER CY21
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
March 31, 2021
GAAP
Net Revenue Adjustment(1)
Earnings Adjustments(2)
Non-GAAP
Revenues
$ 1,990.0
$ (177.8)
$ -
$ 1,812.2
Operating expenses:
Cost of service
925.2
(62.0)
(329.2)
534.0
Selling, general and administrative
789.5
(117.5)
(128.9)
543.1
1,714.7
(179.5)
(458.1)
1,077.1
Operating income
$ 275.3
$ 1.7
$ 458.1
$ 735.1
Interest and other income
4.2
-
-
4.2
Interest and other expense
(83.1)
-
-
(83.1)
(78.9)
-
-
(78.9)
Income before income taxes and equity in income of equity method investments
196.4
1.7
458.1
656.2
Income tax expense(3)
20.7
0.3
107.7
128.7
Income before equity in income of equity method investments
175.7
1.4
350.4
527.5
Equity in income of equity method investments, net of tax
22.7
-
(6.2)
16.5
Net income
$ 198.4
$ 1.4
$ 344.2
$ 544.0
Net income attributable to noncontrolling interests, net of income tax
(1.7)
-
(1.0)
(2.7)
Adjusted net income attributable to Global Payments
$ 196.7
$ 1.4
$ 343.2
$ 541.4
Diluted shares(4)
297.7
297.7
Adjusted diluted earnings per share(4)
$ 0.66
$ 1.82
(1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended March 31, 2021, net revenue adjustments also included $1.7 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended March 31, 2021, earnings adjustments to operating income include $329.2 million in cost of services (COS) and $128.9 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $329.2 million. Adjustments to SG&A include share-based compensation expense of $37.2 million and acquisition and integration expenses of $91.7 million. Net income attributable to Global Payments also reflects the removal of $6.3 million of equity method investment earnings from our interest in a private equity investment fund.
(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) Adjusted EPS is calculated by dividing adjusted net income attributable to Global Payments by the diluted weighted-average number of shares outstanding.
Note: Amounts may not sum due to rounding.
Trended Segment
ADJUSTED EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS (NON-GAAP)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
Calendar Year 2021
Calendar Year 2022
(In millions rounded to nearest hundred thousand, except per share data)
Q1
Q2
Q3
Q4
CY
Q1
Q2
Q3
Mar 21
Jun 21
Sep 21
Dec 21
2021
Mar 22
Jun 22
Sep 22
Adjusted net revenue:(1)
Merchant Solutions
$ 1,149.8
$ 1,288.7
$ 1,357.6
$ 1,340.0
$ 5,136.1
$ 1,337.2
$ 1,433.9
$ 1,450.0
Issuer Solutions
461.9
468.4
481.1
494.9
1,906.2
468.4
484.2
489.1
Consumer Solutions
220.4
204.6
183.6
175.0
783.6
169.1
161.6
142.6
Intersegment Elimination
(19.9)
(21.2)
(22.0)
(25.0)
(88.0)
(22.0)
(21.4)
(23.5)
Total adjusted net revenue
$ 1,812.2
$ 1,940.5
$ 2,000.3
$ 1,984.9
$ 7,738.0
$ 1,952.7
$ 2,058.5
$ 2,058.2
Adjusted operating income:(1)
Merchant Solutions
$ 532.1
$ 624.7
$ 669.5
$ 646.2
$ 2,472.5
$ 632.1
$ 719.8
$ 724.4
Issuer Solutions
199.5
205.8
208.1
211.2
824.7
201.8
211.5
226.8
Consumer Solutions
71.2
51.3
43.5
34.6
200.6
38.1
37.4
54.0
Corporate
(67.7)
(71.6)
(65.4)
(58.6)
(263.4)
(69.5)
(66.3)
(74.6)
Total adjusted operating income
$ 735.1
$ 810.2
$ 855.6
$ 833.5
$ 3,234.3
$ 802.5
$ 902.4
$ 930.6
(1) Global Payments supplements revenues, income (loss), operating income (loss), operating margin and earnings (loss) per share determined in accordance with U.S. GAAP by providing these measures with certain adjustments (such measures being non-GAAP financial measures) in this document to assist with evaluating our performance. In addition to GAAP measures, management uses these non-GAAP financial measures to focus on the factors the company believes are pertinent to the daily management of our operations. Management believes adjusted net revenue more closely reflects the economic benefits to the company's core business and allows for better comparisons with industry peers. Management uses these non-GAAP financial measures, together with other metrics, to set goals for and measure the performance of the business and to determine incentive compensation. Adjusted net revenue, adjusted operating income, adjusted operating margin, adjusted net income and adjusted EPS should be considered in addition to, and not as substitutes for, revenues, operating income (loss), net income (loss) and earnings (loss) 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.
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 all prior periods has been recast to align with the new segment presentation.
Note: Amounts may not sum due to rounding.
CY2022 Q3 Segment Reconciliatio
RECONCILIATION OF NON-GAAP SEGMENT INFORMATION TO GAAP (UNAUDITED)
THIRD QUARTER CY22
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
September 30, 2022
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Non-GAAP
Consumer Business (3)
Supplemental Non-GAAP (3)
Revenues:
Merchant Solutions
$ 1,596.3
$ (146.3)
$ -
$ 1,450.0
$ -
$ 1,450.0
Issuer Solutions
566.0
(76.9)
-
489.1
-
489.1
Consumer Solutions
147.3
(4.7)
-
142.6
(142.6)
-
Intersegment Eliminations
(24.3)
0.8
-
(23.5)
11.6
(12.0)
Total
$ 2,285.4
$ (227.1)
$ -
$ 2,058.2
$ (131.0)
$ 1,927.2
Operating Income (loss):
Merchant Solutions
550.7
(0.1)
173.8
724.4
-
724.4
Issuer Solutions
97.5
0.9
128.4
226.8
-
226.8
Consumer Solutions
23.2
(4.7)
35.6
54.0
(54.0)
-
Corporate
(236.0)
-
161.4
(74.6)
-
(74.6)
Loss on sale of a business
(48.9)
-
48.9
-
-
-
Total
$ 386.4
$ (3.9)
$ 548.1
$ 930.6
$ (54.0)
$ 876.6
(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, 2022, net revenue adjustments also included $0.9 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses. Adjustments for the three months ended September 30, 2022 also included a $4.7 million adjustment 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, as noted in footnote 2 below.
(2) For the three months ended September 30, 2022, earnings adjustments to operating income included $307.0 million in cost of services (COS) and $192.1 million in selling, general and administrative expenses (SG&A). Adjustments to COS included amortization of acquired intangibles of $306.0 million and other items of $1.0 million. Adjustments to SG&A included share-based compensation expense of $37.1 million, acquisition, integration and separation expenses of $106.8 million, facilities exit charges of $31.7 million, and other items of $16.5 million.
Acquisition, integration and separation expenses for the three months ended September 30, 2022 included $34.1 million related to the pending divestiture of our consumer business, which is classified as assets held for sale on our balance sheet. These incremental expenses, which include card and marketing expenses, compensation and benefit expenses, and other expenses, were incurred as a result of contractual obligations with the purchasers of the consumer business and do not reflect the manner in which the Company would have operated the business and would not have otherwise been incurred absent the transaction.
For the three months ended September 30, 2022, earnings adjustments to operating income also included the $48.9 million loss on business dispositions.
(3) The supplemental non-GAAP information reflects the pending divestiture of our consumer business.
Note: Amounts may not sum due to rounding.
CY2022 Q2 Segment Reconciliatio
RECONCILIATION OF NON-GAAP SEGMENT INFORMATION TO GAAP (UNAUDITED)
SECOND QUARTER CY22
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
June 30, 2022
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Non-GAAP
Consumer Business (3)
Supplemental Non-GAAP (3)
Revenues:
Merchant Solutions
$ 1,581.7
$ (147.8)
$ -
$ 1,433.9
$ -
$ 1,433.9
Issuer Solutions
559.6
(75.4)
-
484.2
-
484.2
Consumer Solutions
161.6
-
-
161.6
(161.6)
-
Intersegment Eliminations
(22.1)
0.7
-
(21.4)
10.5
(10.8)
Total
$ 2,280.9
$ (222.5)
$ -
$ 2,058.5
$ (151.1)
$ 1,907.4
Operating Income (loss):
Merchant Solutions
535.4
0.1
184.3
719.8
-
719.8
Issuer Solutions
77.5
1.6
132.3
211.5
-
211.5
Consumer Solutions
21.9
-
15.5
37.4
(37.4)
-
Corporate
(179.4)
-
113.1
(66.3)
-
(66.3)
Impairment of goodwill
(833.1)
-
833.1
-
-
-
Loss on sale of a business
(152.2)
-
152.2
-
-
-
Total
$ (529.9)
$ 1.8
$ 1,430.4
$ 902.4
$ (37.4)
$ 864.9
(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, 2022, net revenue adjustments also included $1.8 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended June 30, 2022, earnings adjustments to operating income included $327.8 million in cost of services (COS) and $117.3 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $327.4 million and other items of $0.4 million. Adjustments to SG&A included share-based compensation expense of $47.0 million, acquisition and integration expenses of $61.8 million and other items of $8.5 million.
For the three months ended June 30, 2022, earnings adjustments to operating income also included the $833.1 million noncash goodwill impairment charge related to our former Business and Consumer Solutions segment, driven by the strategic review and pending divestiture of our consumer business, and the $152.2 million loss on business dispositions.
(3) The supplemental non-GAAP information reflects the pending divestiture of our consumer business.
Note: Amounts may not sum due to rounding.
CY2022 Q1 Segment Reconciliatio
RECONCILIATION OF NON-GAAP SEGMENT INFORMATION TO GAAP (UNAUDITED)
FIRST QUARTER CY22
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
March 31, 2022
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Non-GAAP
Consumer Business (3)
Supplemental Non-GAAP (3)
Revenues:
Merchant Solutions
$ 1,473.0
$ (135.8)
$ -
$ 1,337.2
$ -
$ 1,337.2
Issuer Solutions
537.3
(69.0)
-
468.4
-
468.4
Consumer Solutions
169.1
-
-
169.1
(169.1)
-
Intersegment Eliminations
(23.2)
1.2
-
(22.0)
11.0
(11.0)
Total
$ 2,156.3
$ (203.6)
$ -
$ 1,952.7
$ (158.1)
$ 1,794.5
Operating Income
Merchant Solutions
444.5
0.1
187.5
632.1
-
632.1
Issuer Solutions
69.1
3.5
129.1
201.8
-
201.8
Consumer Solutions
22.6
-
15.5
38.1
(38.1)
-
Corporate
(160.3)
-
90.8
(69.5)
-
(69.5)
Total
$ 375.9
$ 3.6
$ 422.9
$ 802.5
$ (38.1)
$ 764.4
(1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended March 31, 2022, net revenue adjustments also included $3.6 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended March 31, 2022, earnings adjustments to operating income included $329.2 million in cost of services (COS) and $93.7 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $329.0 million and other items of $0.2 million. Adjustments to SG&A include share-based compensation expense of $38.4 million, acquisition and integration expenses of $51.0 million and other items of $4.3 million.
(3) The supplemental non-GAAP information reflects the pending divestiture of our consumer business.
Note: Amounts may not sum due to rounding.
CY2021 Q4 Segment Reconciliatio
RECONCILIATION OF NON-GAAP SEGMENT INFORMATION TO GAAP (UNAUDITED)
FOURTH QUARTER CY21
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three months ended
December 31, 2021
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Non-GAAP
Consumer Business (3)
Supplemental Non-GAAP (3)
Revenues:
Merchant Solutions
$ 1,475.0
$ (135.1)
$ -
$ 1,340.0
$ -
$ 1,340.0
Issuer Solutions
569.6
(74.7)
-
494.9
-
494.9
Consumer Solutions
175.0
-
-
175.0
(175.0)
-
Intersegment Eliminations
(25.7)
0.7
-
(25.0)
15.2
(9.8)
Total
$ 2,194.0
$ (209.1)
$ -
$ 1,984.9
$ (159.8)
$ 1,825.1
Operating Income
Merchant Solutions
460.3
0.2
185.7
646.2
-
646.2
Issuer Solutions
87.8
0.8
122.6
211.2
-
211.2
Consumer Solutions
20.7
-
13.9
34.6
(34.6)
-
Corporate
(247.8)
-
189.2
(58.6)
-
(58.6)
Total
$ 321.0
$ 1.0
$ 511.5
$ 833.5
$ (34.6)
$ 798.9
(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 December 31, 2021, net revenue adjustments also included $1.0 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended December 31, 2021, earnings adjustments to operating income included $321.4 million in cost of services (COS) and $190.0 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $321.1 million and other items of $0.3 million. Adjustments to SG&A include share-based compensation expense of $34.7 million, acquisition and integration expenses of $98.6 million, facilities exit charges of $56.8 million and other items of $(0.1) million.
(3) The supplemental non-GAAP information reflects the pending divestiture of our consumer business.
Note: Amounts may not sum due to rounding.
CY2021 Q3 Segment Reconciliatio
RECONCILIATION OF NON-GAAP SEGMENT INFORMATION TO GAAP (UNAUDITED)
THIRD QUARTER CY21
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three months ended
September 30, 2021
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Non-GAAP
Consumer Business (3)
Supplemental Non-GAAP (3)
Revenues:
Merchant Solutions
$ 1,495.9
$ (138.3)
$ -
$ 1,357.6
$ -
$ 1,357.6
Issuer Solutions
545.5
(64.4)
-
481.1
-
481.1
Consumer Solutions
183.6
-
-
183.6
(183.6)
-
Intersegment Eliminations
(22.6)
0.7
-
(22.0)
12.8
(9.1)
Total
$ 2,202.3
$ (202.0)
$ -
$ 2,000.3
$ (170.7)
$ 1,829.6
Operating Income
Merchant Solutions
488.4
0.1
181.0
669.5
-
669.5
Issuer Solutions
85.7
0.9
121.5
208.1
-
208.1
Consumer Solutions
27.2
-
16.3
43.5
(43.5)
-
Corporate
(201.2)
-
135.8
(65.4)
-
(65.4)
Total
$ 400.1
$ 1.0
$ 454.5
$ 855.6
$ (43.5)
$ 812.1
(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, 2021, net revenue adjustments also included $1.0 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended September 30, 2021, earnings adjustments to operating income included $317.8 million in cost of services (COS) and $136.7 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $319.9 million and other items of $(2.1) million. Adjustments to SG&A include share-based compensation expense of $65.6 million, acquisition and integration expenses of $71.6 million and other items of $(0.5) million.
(3) The supplemental non-GAAP information reflects the pending divestiture of our consumer business.
Note: Amounts may not sum due to rounding.
CY2021 Q2 Segment Reconciliatio
RECONCILIATION OF NON-GAAP SEGMENT INFORMATION TO GAAP (UNAUDITED)
SECOND QUARTER CY21
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
June 30, 2021
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Non-GAAP
Consumer Business (3)
Supplemental Non-GAAP (3)
Revenues:
Merchant Solutions
$ 1,426.8
$ (138.0)
$ -
$ 1,288.7
$ -
$ 1,288.7
Issuer Solutions
527.9
(59.5)
-
468.4
-
468.4
Consumer Solutions
204.6
-
-
204.6
(204.6)
-
Intersegment Eliminations
(21.8)
0.7
-
(21.2)
13.3
(7.8)
Total
$ 2,137.4
$ (196.9)
$ -
$ 1,940.5
$ (191.3)
$ 1,749.2
Operating Income
Merchant Solutions
437.3
0.1
187.2
624.7
-
624.7
Issuer Solutions
83.2
1.1
121.5
205.8
-
205.8
Consumer Solutions
33.9
-
17.4
51.3
(51.3)
-
Corporate
(191.8)
-
120.2
(71.6)
-
(71.6)
Total
$ 362.6
$ 1.3
$ 446.4
$ 810.2
$ (51.3)
$ 758.9
(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, 2021, net revenue adjustments also included $1.3 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended June 30, 2021, earnings adjustments to operating income include $324.7 million in cost of services (COS) and $121.6 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $324.7 million. Adjustments to SG&A include share-based compensation expense of $43.3 million and acquisition and integration expenses of $78.3 million.
(3) The supplemental non-GAAP information reflects the pending divestiture of our consumer business.
Note: Amounts may not sum due to rounding.
CY2021 Q1 Segment Reconciliatio
RECONCILIATION OF NON-GAAP SEGMENT INFORMATION TO GAAP (UNAUDITED)
FIRST QUARTER CY21
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)
Three Months Ended
March 31, 2021
GAAP
Net Revenue Adjustments(1)
Earnings Adjustments(2)
Non-GAAP
Consumer Business (3)
Supplemental Non-GAAP (3)
Revenues:
Merchant Solutions
$ 1,267.9
$ (118.1)
$ -
$ 1,149.8
$ -
$ 1,149.8
Issuer Solutions
522.8
(60.9)
-
461.9
-
461.9
Consumer Solutions
220.4
-
-
220.4
(220.4)
-
Intersegment Eliminations
(21.0)
1.1
-
(19.9)
13.0
(6.8)
Total
$ 1,990.0
$ (177.8)
$ -
$ 1,812.2
$ (207.3)
$ 1,604.9
Operating Income
Merchant Solutions
340.0
0.3
191.9
532.1
-
532.1
Issuer Solutions
76.7
1.5
121.4
199.5
-
199.5
Consumer Solutions
53.7
-
17.4
71.2
(71.2)
-
Corporate
(195.1)
-
127.4
(67.7)
-
(67.7)
Total
$ 275.3
$ 1.7
$ 458.1
$ 735.1
$ (71.2)
$ 664.0
(1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended March 31, 2021, net revenue adjustments also included $1.7 million to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.
(2) For the three months ended March 31, 2021, earnings adjustments to operating income include $329.2 million in cost of services (COS) and $128.9 million in selling, general and administrative expenses (SG&A). Adjustments to COS represent amortization of acquired intangibles of $329.2 million. Adjustments to SG&A include share-based compensation expense of $37.2 million and acquisition and integration expenses of $91.7 million.
(3) The supplemental non-GAAP information reflects the pending divestiture of our consumer business.
Note: Amounts may not sum due to rounding.
Trended Segment Supplemental
SUPPLEMENTAL ADJUSTED EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS (NON-GAAP)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
Calendar Year 2021
Calendar Year 2022
(In millions rounded to nearest hundred thousand, except per share data)
Q1
Q2
Q3
Q4
CY
Q1
Q2
Q3
Mar 21
Jun 21
Sep 21
Dec 21
2021
Mar 22
Jun 22
Sep 22
Adjusted net revenue:(1)
Non-GAAP:(2)
Merchant Solutions
$ 1,149.8
$ 1,288.7
$ 1,357.6
$ 1,340.0
$ 5,136.1
$ 1,337.2
$ 1,433.9
$ 1,450.0
Issuer Solutions
461.9
468.4
481.1
494.9
1,906.2
468.4
484.2
489.1
Consumer Solutions
220.4
204.6
183.6
175.0
783.6
169.1
161.6
142.6
Intersegment Elimination
(19.9)
(21.2)
(22.0)
(25.0)
(88.0)
(22.0)
(21.4)
(23.5)
Total adjusted net revenue
$ 1,812.2
$ 1,940.5
$ 2,000.3
$ 1,984.9
$ 7,738.0
$ 1,952.7
$ 2,058.5
$ 2,058.2
Consumer Business:
Merchant Solutions
$ -
$ -
- %
$ -
$ -
$ -
$ -
$ -
$ -
Issuer Solutions
-
-
-
-
-
-
-
-
Consumer Solutions
(220.4)
(204.6)
(183.6)
(175.0)
(783.6)
(169.1)
(161.6)
(142.6)
Intersegment Elimination
13.0
13.3
12.8
15.2
54.4
11.0
10.5
11.6
Total Consumer Business adjusted net revenue
$ (207.3)
$ (191.3)
$ (170.7)
$ (159.8)
$ (729.2)
$ (158.1)
$ (151.1)
$ (131.0)
Supplemental non-GAAP:(3)
Merchant Solutions
$ 1,149.8
$ 1,288.7
$ 1,357.6
$ 1,340.0
$ 5,136.1
$ 1,337.2
$ 1,433.9
$ 1,450.0
Issuer Solutions
461.9
468.4
481.1
494.9
1,906.2
468.4
484.2
489.1
Consumer Solutions
-
-
-
-
-
-
-
-
Intersegment Elimination
(6.8)
(7.8)
(9.1)
(9.8)
(33.6)
(11.0)
(10.8)
(12.0)
Total supplemental non-GAAP adjusted net revenue
$ 1,604.9
$ 1,749.2
$ 1,829.6
$ 1,825.1
$ 7,008.8
$ 1,794.5
$ 1,907.4
$ 1,927.2
Adjusted operating income:(1)
Non-GAAP:(2)
Merchant Solutions
$ 532.1
$ 624.7
$ 669.5
$ 646.2
$ 2,472.5
$ 632.1
$ 719.8
$ 724.4
Issuer Solutions
199.5
205.8
208.1
211.2
824.7
201.8
211.5
226.8
Consumer Solutions
71.2
51.3
43.5
34.6
200.6
38.1
37.4
54.0
Corporate
(67.7)
(71.6)
(65.4)
(58.6)
(263.4)
(69.5)
(66.3)
(74.6)
Total adjusted operating income
$ 735.1
$ 810.2
$ 855.6
$ 833.5
$ 3,234.3
$ 802.5
$ 902.4
$ 930.6
Consumer Business:
Merchant Solutions
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Issuer Solutions
-
-
-
-
-
-
-
-
Consumer Solutions
(71.2)
(51.3)
(43.5)
(34.6)
(200.6)
(38.1)
(37.4)
(54.0)
Intersegment Elimination
-
-
-
-
-
-
-
-
Total Consumer Business adjusted operating income
$ (71.2)
$ (51.3)
$ (43.5)
$ (34.6)
$ (200.6)
$ (38.1)
$ (37.4)
$ (54.0)
Supplemental non-GAAP:(3)
Merchant Solutions
$ 532.1
$ 624.7
$ 669.5
$ 646.2
$ 2,472.5
$ 632.1
$ 719.8
$ 724.4
Issuer Solutions
199.5
205.8
208.1
211.2
824.7
201.8
211.5
226.8
Consumer Solutions
-
-
-
-
-
-
-
-
Intersegment Elimination
(67.7)
(71.6)
(65.4)
(58.6)
(263.4)
(69.5)
(66.3)
(74.6)
Total supplemental non-GAAP adjusted operating income
$ 664.0
$ 758.9
$ 812.1
$ 798.9
$ 3,033.8
$ 764.4
$ 864.9
$ 876.6
(1) Global Payments supplements revenues, income (loss), operating income (loss), operating margin and earnings (loss) per share determined in accordance with U.S. GAAP by providing these measures with certain adjustments (such measures being non-GAAP financial measures) in this document to assist with evaluating our performance. In addition to GAAP measures, management uses these non-GAAP financial measures to focus on the factors the company believes are pertinent to the daily management of our operations. Management believes adjusted net revenue more closely reflects the economic benefits to the company's core business and allows for better comparisons with industry peers. Management uses these non-GAAP financial measures, together with other metrics, to set goals for and measure the performance of the business and to determine incentive compensation. Adjusted net revenue, adjusted operating income, adjusted operating margin, adjusted net income and adjusted EPS should be considered in addition to, and not as substitutes for, revenues, operating income (loss), net income (loss) and earnings (loss) 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, the effect of any goodwill impairment charges and gain or losses on business dispositions, and certain other items specific to each reporting period. Adjusted operating margin is derived by dividing adjusted operating income by adjusted net revenue. Adjusted net revenue and adjusted EPS range on a constant currency basis excludes the estimated impact of foreign currency fluctuations and is 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.
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 all prior periods has been recast to align with the new segment presentation.
(2) Non-GAAP reflects numbers as reported for each quarter.
(3) The supplemental non-GAAP information reflects the pending divestiture of our consumer business.
Note: Amounts may not sum due to rounding.
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Global Payments Inc. published this content on 31 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2022 13:11:03 UTC.
Global Payments Inc. specializes in the design and development of payment solutions and services. The group serves merchants, e-commerce companies, financial institutions and gaming operators with integrated solutions for payment processing acceptance and payment cards transactions (credit cards, debit cards, online payment cards, prepaid cards, etc.) through all sales channels (Internet, mobile phone and retail outlets).
Net sales are distributed geographically as follows: Americas (81.4%), Europe (15.9%) and Asia/Pacific (2.7%).