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    Global Payments Reports Third Quarter 2024 Results

    10/30/24 6:55:00 AM ET
    $GPN
    Business Services
    Consumer Discretionary
    Get the next $GPN alert in real time by email
    • Third quarter 2024 GAAP diluted earnings per share (EPS) of $1.24, a decrease of (11)%, and adjusted EPS of $3.08, an increase of 12%
    • Third quarter 2024 GAAP revenue of $2.60 billion, an increase of 5%, and adjusted net revenue of $2.36 billion, an increase of 6%
    • Reaffirms outlook for 2024
    • Reaches a definitive agreement to sell AdvancedMD
    • Enters into $600 million accelerated share repurchase plan

    Global Payments Inc. (NYSE:GPN) today announced results for the third quarter ended September 30, 2024.

    This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20241030804195/en/

    "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 $2.60 billion, compared to $2.48 billion in 2023; diluted earnings per share were $1.24, compared to $1.39 in the prior year; and operating margin was 18.3%, compared to 22.5% in the prior year.
    • Adjusted net revenues increased 6% to $2.36 billion, compared to $2.23 billion in the third quarter of 2023.
    • Adjusted earnings per share increased 12% to $3.08, compared to $2.75 in the third quarter of 2023.
    • 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 $9.17 billion to $9.30 billion, reflecting growth of 6% to 7%, and adjusted earnings per share to be in a range of $11.54 to $11.70, reflecting growth of 11% to 12% over 2023. Annual adjusted operating margin for 2024 is still expected to expand by up to 50 basis points."

    Whipple concluded, "Our outlook 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 $0.25 per share payable on December 27, 2024 to shareholders of record as of December 13, 2024. The Board of Directors also approved an increase in the company's share repurchase authorization capacity to $2.5 billion.

    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 Georgia with approximately 27,000 team members worldwide, Global Payments is a Fortune 500® company and a member of the S&P 500 with worldwide reach spanning North America, Europe, Asia Pacific and Latin America. For more information, visit company.globalpayments.com and follow Global Payments on X, LinkedIn and Facebook.

    Forward-Looking Statements

    Investors are cautioned that some of the statements we use in this release contain forward-looking statements and are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which we operate, and beliefs of and assumptions made by our management, involve risks and uncertainties that could significantly affect the financial condition, results of operations, business plans and the future performance of Global Payments. Actual events or results might differ materially from those expressed or forecasted in these forward-looking statements. Accordingly, we cannot guarantee that our plans and expectations will be achieved. Examples of forward-looking statements include, but are not limited to, statements we make regarding 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)

     

     

    Three Months Ended

     

    Nine Months Ended

     

    September 30,

     

    September 30,

     

     

    2024

     

     

     

    2023

     

     

    % Change

     

     

    2024

     

     

     

    2023

     

     

    % Change

     

     

     

     

     

     

     

     

     

     

     

     

    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

    %

     

     

     

     

     

     

     

     

     

     

     

     

    Earnings per share attributable to Global Payments:

     

     

     

     

     

     

     

     

     

     

     

    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

    %

     

     

     

     

     

     

     

     

     

     

     

     

    Weighted-average number of shares outstanding:

     

     

     

     

     

     

     

     

     

     

     

    Basic

     

    254,402

     

     

     

    260,232

     

     

     

     

     

    255,355

     

     

     

    260,890

     

     

     

    Diluted

     

    254,897

     

     

     

    260,935

     

     

     

     

     

    255,880

     

     

     

    261,410

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Note: nm = not meaningful.

    SCHEDULE 2

    NON-GAAP FINANCIAL MEASURES (UNAUDITED)

    GLOBAL PAYMENTS INC. AND SUBSIDIARIES

    (In thousands, except per share data)

     

     

    Three Months Ended

     

    Nine Months Ended

     

    September 30,

     

    September 30,

     

     

    2024

     

     

    2023

     

    % Change

     

     

    2024

     

     

    2023

     

    % Change

     

     

     

     

     

     

     

     

     

     

     

     

    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

    %

     

     

     

     

     

     

     

     

     

     

     

     

    Supplemental Non-GAAP(1)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    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.

     

     

     

    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)

     

     

     

    Three Months Ended

     

     

     

     

     

     

    September 30, 2024

     

    September 30, 2023

     

    % Change

     

     

    GAAP

     

    Non-GAAP

     

    GAAP

     

    Non-GAAP

     

    GAAP

     

    Non-GAAP

     

     

     

     

     

     

     

     

     

     

     

     

     

    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 $1.0 million and $0.5 million, respectively, to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.

     

     

    (2)

    For the three months ended September 30, 2024, earnings adjustments to operating income included $347.1 million in cost of services (COS) and $262.9 million in selling, general and administrative expenses (SG&A). Adjustments to COS included amortization of acquired intangibles of $347.6 million and other items of $(0.5) million. Adjustments to SG&A included share-based compensation expense of $51.0 million, acquisition, integration and separation expenses of $45.8 million, employee termination benefits of $40.9 million, charges for business transformation activities of $59.2 million, charges of $55.8 million for technology assets that will no longer be utilized under a revised technology architecture development strategy, and other items of $10.2 million.

     

     

     

    For the three months ended September 30, 2023, earnings adjustments to operating income included $340.8 million in COS and $120.0 million in SG&A. Adjustments to COS included amortization of acquired intangibles of $340.4 million and other items of $0.4 million. Adjustments to SG&A included share-based compensation expense of $36.6 million, acquisition, integration and separation expenses of $75.1 million, facilities exit charges of $3.7 million, and other items of $4.6 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. 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

    Taxes on Adjustments(3)

     

    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

    Taxes on Adjustments(3)

     

    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 $1.9 million and $1.6 million, respectively, to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses. Adjustments for the nine months ended September 30, 2023 also included a $19.7 million adjustment to exclude revenues that were associated with certain excluded expenses of our consumer business, which was divested in April 2023.

     

     

    (2)

    For the nine months ended September 30, 2024, earnings adjustments to operating income included $1,036.3 million in COS and $547.9 million in SG&A. Adjustments to COS included amortization of acquired intangibles of $1,036.8 million and other items of $(0.5) million. Adjustments to SG&A included share-based compensation expense of $134.4 million, acquisition, integration and separation expenses of $180.4 million, employee termination benefits of $75.9 million, charges for business transformation activities of $59.2 million, charges of $55.8 million for technology assets that will no longer be utilized under a revised technology architecture development strategy, and other items of $42.2 million.

     

     

     

    For the nine months ended September 30, 2023, earnings adjustments to operating income included $988.7 million in COS and $561.6 million in SG&A. Adjustments to COS included amortization of acquired intangibles of $986.0 million and other items of $2.7 million. Adjustments to SG&A included share-based compensation expense of $173.3 million, acquisition, integration and separation expenses of $336.4 million, facilities exit charges of $15.0 million, employee termination benefits of $31.5 million, and other items of $5.4 million. Earnings adjustments to operating income also included the $139.1 million loss on business dispositions.

     

     

     

    Acquisition, integration and separation expenses for the nine months ended September 30, 2023 included $93.6 million related to our divested consumer business. These incremental expenses, which include card and marketing expenses, compensation and benefit expenses, and other expenses, were incurred as a result of contractual obligations with the purchasers of the consumer business and do not reflect the manner in which the company would have operated the business and would not have otherwise been incurred absent the transaction.

     

     

     

    For the nine months ended September 30, 2023, earnings adjustments to net income also included an allowance for current expected credit losses (CECL) of $18.2 million within interest and other expense related to the seller financing issued in connection with the business dispositions.

     

     

    (3)

    Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment. In addition, for the three months ended 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

    Adjustments (1)

     

    Earnings

    Adjustments(2)

     

    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

    Adjustments (1)

     

    Earnings

    Adjustments(2)

     

    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 $1.0 million and $0.5 million, respectively, to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.

     

     

    (2)

    For the three months ended September 30, 2024, earnings adjustments to operating income included $347.1 million in COS and $262.9 million in SG&A. Adjustments to COS included amortization of acquired intangibles of $347.6 million and other items of $(0.5) million. Adjustments to SG&A included share-based compensation expense of $51.0 million, acquisition, integration and separation expenses of $45.8 million, employee termination benefits of $40.9 million, charges for business transformation activities of $59.2 million, charges of $55.8 million for technology assets that will no longer be utilized under a revised technology architecture development strategy, and other items of $10.2 million.

     

     

     

    For the three months ended September 30, 2023, earnings adjustments to operating income included $340.8 million COS and $120.0 million in SG&A. Adjustments to COS included amortization of acquired intangibles of $340.4 million and other items of $0.4 million. Adjustments to SG&A included share-based compensation expense of $36.6 million, acquisition, integration and separation expenses of $75.1 million, facilities exit charges of $3.7 million, and other items of $4.6 million.

     

     

     

    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

    Adjustments (1)

     

    Earnings

    Adjustments(2)

     

    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

    Adjustments(1)

     

    Earnings

    Adjustments(2)

     

    Non-GAAP

     

    Consumer

    Business (3)

     

    Supplemental

    Non-GAAP (3)

     

     

     

     

     

     

     

     

     

     

     

     

     

    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 $1.9 million and $1.6 million, respectively, to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses. Adjustments for the nine months ended September 30, 2023 also included a $19.7 million adjustment to exclude revenues that were associated with certain excluded expenses of our consumer business, which was divested in April 2023.

     

     

    (2)

    For the nine months ended September 30, 2024, earnings adjustments to operating income included $1,036.3 million in COS and $547.9 million in SG&A. Adjustments to COS included amortization of acquired intangibles of $1,036.8 million and other items of $(0.5) million. Adjustments to SG&A included share-based compensation expense of $134.4 million, acquisition, integration and separation expenses of $180.4 million, employee termination benefits of $75.9 million, charges for business transformation activities of $59.2 million, charges of $55.8 million for technology assets that will no longer be utilized under a revised technology architecture development strategy, and other items of $42.2 million.

     

     

     

    For the nine months ended September 30, 2023, earnings adjustments to operating income included $988.7 million in COS and $561.6 million in SG&A. Adjustments to COS included amortization of acquired intangibles of $986.0 million and other items of $2.7 million. Adjustments to SG&A included share-based compensation expense of $173.3 million, acquisition, integration and separation expenses of $336.4 million, facilities exit charges of $15.0 million, employee termination benefits charges of $31.5 million, and other items of $5.4 million. Earnings adjustments to operating income also included the $139.1 million loss on business dispositions.

     

     

     

    Acquisition, integration and separation expenses for the nine months ended September 30, 2023 included $93.6 million related to our divested consumer business. These incremental expenses, which include card and marketing expenses, compensation and benefit expenses, and other expenses, were incurred as a result of contractual obligations with the purchasers of the consumer business and do not reflect the manner in which the company would have operated the business and would not have otherwise been incurred absent the transaction.

     

     

    (3)

    The supplemental non-GAAP information excludes the results of the consumer business that was divested in April 2023.

     

     

     

    See "Non-GAAP Financial Measures" discussion on Schedule 10.

     

     

     

    Note: Amounts may not sum due to rounding.

    SCHEDULE 10

    OUTLOOK SUMMARY (UNAUDITED)

    GLOBAL PAYMENTS INC. AND SUBSIDIARIES

    (In millions, except per share data)

     

     

     

     

    2023

     

     

    2024 Outlook

     

    Growth

    Revenues:

     

     

     

     

     

     

    GAAP revenues

     

    $

    9,654

     

     

    $10,130 to $10,260

     

     

    5% to 6%

    Adjustments(1)

     

     

    (983

    )

     

    (960

    )

     

     

    Adjusted net revenue

     

    $

    8,671

     

     

    $9,170 to $9,300

     

     

    6% to 7%

     

     

     

     

     

     

     

    Earnings Per Share:

     

     

     

     

     

     

    GAAP diluted EPS

     

    $

    3.77

     

     

    $5.41 to $5.57

     

     

    nm

    Adjustments(2)

     

     

    6.65

     

     

    6.13

     

     

     

    Adjusted EPS

     

    $

    10.42

     

     

    $11.54 to $11.70

     

     

    11% to 12%

    (1)

    Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefit to the company. Amounts also included adjustments to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses, as well as adjustments to exclude revenues that were associated with certain excluded expenses of our consumer business which was classified as assets held for sale on our balance sheet.

     

     

    (2)

    Adjustments to 2023 GAAP diluted EPS included the removal of 1) software-related contract liability adjustments described above of $0.01, 2) acquisition related amortization expense of $3.88, 3) share-based compensation expense of $0.62, 4) acquisition, integration, and separation expense of $1.22, 5) facilities exit charges of $0.05, 6) equity method investment earnings from our interest in a private equity investment fund of $0.02, 7) discrete tax items of $0.28, 8) gain/loss on business dispositions of $0.40, 9) other income and expense of $0.06, 10) other items of $0.11, and 11) the effect of noncontrolling interests and income taxes, as applicable.

     

     

     

    Note: nm = not meaningful.

    NON-GAAP FINANCIAL MEASURES

    Global Payments supplements revenues, operating income, operating margin and net income, and earnings per share (EPS) determined in accordance with U.S. GAAP by providing these measures with certain adjustments (such measures being non-GAAP financial measures) in this document to assist with evaluating our performance. In addition to GAAP measures, management uses these non-GAAP financial measures to focus on the factors the company believes are pertinent to the daily management of our operations. 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 EPS and adjusted free cash flow should be considered in addition to, and not as substitutes for, revenues, operating income, EPS and net operating cash flows 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. 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/

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      Addition of new payroll, HR and billing technology further enhances Acrisure's position as a global fintech leader Acrisure today announced the signing of a definitive agreement to acquire Global Payments' (NYSE:GPN) payroll business, Heartland Payroll Solutions ("Heartland Payroll"), one of the leading payroll and Human Capital Management (HCM) companies in the United States for $1.1 billion. Upon completion of the transaction, Heartland Payroll – which will be rebranded after closing – will significantly expand Acrisure's current payroll and HCM capabilities and advance its mission to become the preeminent fintech solutions provider for millions of small and medium-sized businesses do

      5/28/25 7:11:00 AM ET
      $GPN
      Business Services
      Consumer Discretionary

    $GPN
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    • Global Payments Reports First Quarter 2025 Results

      First quarter 2025 GAAP diluted earnings per share (EPS) of $1.24, an increase of 2%, and adjusted EPS including share-based compensation expense of $2.69, an increase of 11% constant currency. Adjusted EPS excluding share-based compensation expense of $2.82 First quarter 2025 GAAP revenue of $2.41 billion, approximately flat, and adjusted net revenue of $2.20 billion, an increase of 5% constant currency ex-dispositions Reaffirms outlook for 2025 Accelerates long-term growth strategy and unlocks shareholder value with previously announced agreements to acquire Worldpay and divest Issuer Solutions Global Payments Inc. (NYSE:GPN) today announced results for the first quarter ended Ma

      5/6/25 6:55:00 AM ET
      $GPN
      Business Services
      Consumer Discretionary
    • Global Payments to Report First Quarter Results on May 6, 2025

      Global Payments Inc. (NYSE:GPN), a leading worldwide provider of payment technology and software solutions, will release first quarter financial results before the market opens on Tuesday, May 6, 2025. Global Payments' management will host a live audio webcast to discuss these results at 7:30 a.m. EDT on Tuesday, May 6, 2025. All interested parties may access the audio webcast via the investor relations page of the company's website at investors.globalpayments.com. A replay of the audio webcast will be archived on the company's website following the live event. About Global Payments Global Payments Inc. (NYSE:GPN) is a leading payments technology company delivering innovative software an

      4/25/25 8:30:00 AM ET
      $GPN
      Business Services
      Consumer Discretionary
    • FIS Announces Sale of Worldpay Stake and Strategic Acquisition of Global Payments' Issuer Solutions Business

      Acquisition of Global Payments' Issuer Solutions business (Issuer Solutions) strengthens FIS' position as a scaled fintech leader with global reach and a best-of-breed product suite Issuer Solutions' credit processing offering will extend FIS' value proposition and drive long-term expected revenue synergies in excess of $125 million annually Acquisition is expected to be accretive to Adjusted EBITDA margins, Adjusted EPS and Adjusted Free Cash Flow in the first 12 months, and unlock net EBITDA synergies of more than $150 million by year three Transaction accelerates monetization of Worldpay stake with sale to Global Payments for $6.6 billion in pre-tax value Sale of Worldpay and ac

      4/17/25 6:30:00 AM ET
      $FIS
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      Business Services
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    • Acrisure Acquires Payroll Business from Global Payments for $1.1 Billion to Expand its Fintech Product Offering

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      5/28/25 7:11:00 AM ET
      $GPN
      Business Services
      Consumer Discretionary
    • Dye & Durham Announces Leadership Updates

      -  Appoints Sid Singh, an Experienced Technology Executive, as Interim CEO-  Appoints Arnaud Ajdler as Chair of the Board TORONTO, Feb. 21, 2025 /CNW/ - Dye & Durham Limited ("Dye & Durham" or the "Company") (TSX: DND), one of the world's largest providers of cloud-based legal practice management software, today announced the appointment of Sid Singh as Interim Chief Executive Officer, effective immediately. Mr. Singh will remain a director of the Company and succeeds Hans T. Gieskes, who will also continue his service on the Board of Directors (the "Board"). Additionally, Arnaud Ajdler has been appointed Chair of the Board. "Since joining the Board, Sid has become increasingly involved wit

      2/21/25 7:00:00 AM ET
      $EFX
      $GPN
      $PAYA
      Finance: Consumer Services
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      TSG (The Strawhecker Group), a globally recognized analytics, intelligence, and solutions-focused firm in the payments industry, announced today that Shelley Joyce has been appointed as its Chief Technology Officer (CTO). As CTO, Shelley will set and execute a vision that accelerates the growth of TSG's technology stack and supports its clients' technological needs. This includes overseeing, consulting, and delivering customized software products and solutions, payment technology design and builds, existing platform modernizations and stabilization initiatives, and point-of-sale (POS) development and technical consulting. "As payments acceptance continues to evolve and the reliance on m

      2/6/25 10:05:00 AM ET
      $GPN
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    • SEC Form SC 13G/A filed by Global Payments Inc. (Amendment)

      SC 13G/A - GLOBAL PAYMENTS INC (0001123360) (Subject)

      2/9/24 8:40:49 AM ET
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      Business Services
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    • SEC Form SC 13G/A filed by Global Payments Inc. (Amendment)

      SC 13G/A - GLOBAL PAYMENTS INC (0001123360) (Subject)

      2/14/23 12:38:00 PM ET
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      Business Services
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    • SEC Form SC 13G/A filed by Global Payments Inc. (Amendment)

      SC 13G/A - GLOBAL PAYMENTS INC (0001123360) (Subject)

      2/9/23 11:19:24 AM ET
      $GPN
      Business Services
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