Global Payments Reports Second Quarter Earnings for Fiscal 2013

Increases EPS Outlook for Full-Year 2013

Doubles Share Repurchase Authorization to $300 Million

Jan 08, 2013, 16:01 ET from Global Payments Inc.

ATLANTA, Jan. 8, 2013 /PRNewswire/ -- Global Payments Inc. (NYSE: GPN), a leading, worldwide provider of electronic transaction processing solutions, today announced results for its fiscal second quarter ended November 30, 2012. 

(Logo:  http://photos.prnewswire.com/prnh/20010221/ATW031LOGO)

Second Quarter 2013 Summary

  • Revenue grew 11% to $588.5 million compared to $530.5 million in the second quarter of 2012.
  • Cash diluted earnings per share[1] grew 8% to $0.93 compared to $0.86 in the second quarter of 2012.
  • GAAP diluted earnings per share were $0.89, compared to $0.78 in the second quarter of 2012.

Chairman and CEO Paul R. Garcia said, "We are pleased with our solid performance in the quarter and the recent completion of the two previously announced acquisitions, Accelerated Payment Technologies in October, and the remaining 44% ownership interest in the Asia-Pacific joint venture from HSBC in December. We have also increased our full-year cash EPS expectation to a range of $3.61 to $3.68.

"Additionally, I am delighted to announce that we have essentially completed our remediation work as anticipated and the required documentation is in the process of being provided to the Qualified Security Assessor for verification. This verification allows the Networks to evaluate the results and return us to the list of PCI compliant service providers," concluded Garcia.

Share Repurchase Authorization

The Board of Directors approved an additional $150 million share repurchase authorization of Global Payments' stock which increased the current $150 million share repurchase authorization to a total of $300 million.  As of January 8, 2013, $287 million remains available.  Under this program, Global Payments may repurchase shares in the open market or as otherwise may be determined by the company, subject to market conditions, business opportunities and other factors.  Repurchased shares will be retired but will be available for future issuance.

David Mangum, Senior Executive Vice President and CFO, stated,  "We are pleased with the increase in the share repurchase authorization and we expect to execute on our buyback plans. With the recently increased financing capacity we completed in the second quarter of 2013, we have significant capital flexibility to drive organic growth, acquisitions and on-going share repurchases."

Acquisition Closings and Funding

Global Payments closed the Accelerated Payment Technologies (APT) acquisition for $413 million on October 1, 2012.  APT is an innovative provider of fully-integrated payment technology solutions for small to medium sized merchants.  The company also closed on a new five-year senior unsecured term loan facility of $700 million and increased its existing senior unsecured revolving credit facility by $150 million.  In addition, effective December 1, 2012, the company completed its previously announced acquisition of the remaining 44% ownership interest in the Asia-Pacific joint venture for $242 million. Global Payments will continue to be HSBC's preferred strategic partner for card acquiring services in Asia-Pacific, covering 11 markets.

2013 Outlook

For the full-year of fiscal 2013, the company continues to expect annual revenue of $2,360 million to $2,400 million, or 7% to 9% growth over fiscal 2012. 

Annual expectations for fiscal 2013 diluted earnings per share on a cash basis are now increased to a range of $3.61 to $3.68, or growth of 2% to 4% over fiscal 2012.  On a constant currency basis, the company continues to expect revenue to grow 8% to 10% and diluted earnings per share on a cash basis to grow 5% to 7%. 

Annual fiscal 2013 GAAP diluted earnings per share, excluding the impact of all intrusion remediation costs, are expected to be in a range of $3.01 to $3.08.

Both cash and GAAP diluted earnings per share expectations exclude the impact of any potential future share repurchases.

For reconciliation of Cash Earnings to GAAP and constant currency, see schedule 9.

Conference Call

Global Payments will hold a conference call today, January 8, 2013 at 5:00 p.m. EST to discuss financial results and business highlights.  Callers may access the conference call via the investor relations page of the company's website at www.globalpaymentsinc.com by clicking the "Webcast" button; or callers in North America may dial 1-888-895-3550 and callers outside North America may dial 1-706-758-8809.  The pass code is "GPN."  A replay of the call may be accessed through the Global Payments website through January 21, 2013.   

About Global Payments

Global Payments Inc. (NYSE: GPN) is a leading provider of electronic transaction processing services for merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout the United States, Canada, Europe and the Asia-Pacific region.  Global Payments, a Fortune 1000 company, offers a comprehensive line of processing solutions for credit and debit cards, business-to-business purchasing cards, gift cards, electronic check conversion and check guarantee, verification and recovery including electronic check services, as well as terminal management.  Visit www.globalpaymentsinc.com for more information about the company and its services.

This announcement and comments made by Global Payments' management during the conference call may contain certain forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.  Statements that are not historical facts, including revenue and earnings estimates and management's expectations regarding future events and developments, are forward-looking statements and are subject to significant risks and uncertainties.  Important factors that may cause actual events or results to differ materially from those anticipated by such forward-looking statements include the following: the effect on our results of operations of the remediation efforts resulting from the unauthorized access to our processing system announced in March 2012; foreign currency risks which become increasingly relevant as we expand internationally; the effect of current domestic and worldwide economic conditions, including sovereign insolvency situations and a decline in the value of the U.S. dollar, and future performance and integration of acquisitions including APT, and other risks detailed in the company's SEC filings, including the most recently filed Form Form 10-K, as applicable.  The company undertakes no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.

[1] See Schedule 2 for Cash Earnings and Schedules 6 and 7 for Reconciliations of Cash Earnings to GAAP.

Investor contact:  investor.relations@globalpay.com

Media contact:  media.relations@globalpay.com

Jane Elliott                 

Kay Sharpton                                     

Amy Corn

770-829-8234             

770-829-8870                                     

770-829-8755

 

SCHEDULE 1

GAAP CONSOLIDATED STATEMENTS OF INCOME 

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands, except per share data)

Three Months Ended November 30,

Six Months Ended November 30,

2012

2011

% Change

2012

2011

% Change

(unaudited)

Revenues

$        588,538

$         530,505

11%

$      1,178,825

$    1,073,276

10%

Operating expenses:

     Cost of service

210,268

185,931

13%

414,659

377,467

10%

     Sales, general and administrative

276,177

247,994

11%

557,596

490,619

14%

     Processing system intrusion

(14,489)

-

NM

9,500

-

NM

471,956

433,925

9%

981,755

868,086

13%

Operating income

116,582

96,580

21%

197,070

205,190

(4%)

Other income (expense):

     Interest and other income

2,187

2,259

(3%)

4,170

4,760

(12%)

     Interest and other expense

(14,609)

(4,878)

199%

(18,154)

(8,965)

102%

(12,422)

(2,619)

374%

(13,984)

(4,205)

233%

Income before income taxes 

104,160

93,961

11%

183,086

200,985

(9%)

Provision for income taxes

(28,789)

(25,812)

12%

(53,553)

(60,755)

(12%)

Net income

75,371

68,149

11%

129,533

140,230

(8%)

Less: Net income attributable to noncontrolling interests, net of tax

(5,188)

(6,968)

(26%)

(12,675)

(15,075)

(16%)

          Net income attributable to Global Payments

$          70,183

$           61,181

15%

$         116,858

$       125,155

(7%)

Earnings per share attributable to Global Payments:

          Basic

$              0.89

$               0.78

14%

$               1.49

$             1.58

(6%)

          Diluted

$              0.89

$               0.78

14%

$               1.48

$             1.57

(6%)

Weighted average shares outstanding:

          Basic

78,751

78,348

78,669

79,207

          Diluted

79,144

78,876

79,062

79,831

NM - Not Meaningful

 

SCHEDULE 2

CASH EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands, except per share data)

Three Months Ended November 30,

Six Months Ended November 30,

2012

2011

% Change

2012

2011

% Change

Revenues

$         588,538

$       530,505

11%

$      1,178,825

$    1,073,276

10%

Operating expenses:

     Cost of service

195,932

173,778

13%

388,937

352,671

10%

     Sales, general and administrative

276,177

247,994

11%

556,796

490,619

13%

472,109

421,772

12%

945,733

843,290

12%

Operating income

116,429

108,733

7%

233,092

229,986

1%

Other income (expense):

     Interest and other income

2,187

2,259

(3%)

4,170

4,760

(12%)

     Interest and other expense

(6,226)

(4,878)

28%

(9,771)

(8,965)

9%

(4,039)

(2,619)

54%

(5,601)

(4,205)

33%

Income before income taxes 

112,390

106,114

6%

227,491

225,781

1%

Provision for income taxes

(29,385)

(29,569)

(1%)

(65,938)

(68,251)

(3%)

Net income  

83,005

76,545

8%

161,553

157,530

3%

Less: Net income attributable to noncontrolling interests, net of tax

(9,419)

(8,913)

6%

(19,171)

(19,085)

0%

Net income attributable to Global Payments

$           73,586

$         67,632

9%

$         142,382

$       138,445

3%

Basic earnings per share

$               0.93

$             0.86

8%

$               1.81

$             1.75

3%

Diluted earnings per share

$               0.93

$             0.86

8%

$               1.80

$             1.73

4%

Weighted average shares outstanding:

          Basic

78,751

78,348

78,669

79,207

          Diluted

79,144

78,876

79,062

79,831

NM - Not Meaningful

See Schedules 6 and 7 for a reconciliation of cash earnings to GAAP.

 

SCHEDULE 3

SEGMENT INFORMATION 

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)

 Three Months Ended November 30, 

2012

2011

 % Change 

 GAAP 

 Cash

Earnings 

 GAAP 

 Cash

Earnings 

 GAAP 

 Cash

Earnings

Revenues:

United States

$    339,998

$    339,998

$    293,416

$    293,416

16%

16%

Canada

80,770

80,770

85,521

85,521

(6%)

(6%)

North America merchant services

420,768

420,768

378,937

378,937

11%

11%

Europe

131,161

131,161

115,169

115,169

14%

14%

Asia-Pacific

36,609

36,609

36,399

36,399

1%

1%

International merchant services

167,770

167,770

151,568

151,568

11%

11%

Total revenues

$    588,538

$    588,538

$    530,505

$    530,505

11%

11%

Operating income:

North America merchant services

$      67,114

$      73,280

$      70,673

$      73,495

(5%)

(0%)

International merchant services

53,987

62,157

44,494

53,825

21%

15%

Corporate1

(4,519)

(19,008)

(18,587)

(18,587)

76%

(2%)

Operating income

$    116,582

$    116,429

$      96,580

$    108,733

21%

7%

 Six Months Ended November 30, 

2012

2011

 % Change 

 GAAP 

 Cash Earnings 

 GAAP 

 Cash Earnings 

 GAAP 

 Cash Earnings 

Revenues:

United States

$    685,896

$    685,896

$    580,841

$    580,841

18%

18%

Canada

161,667

161,667

176,742

176,742

(9%)

(9%)

North America merchant services

847,563

847,563

757,583

757,583

12%

12%

Europe

259,626

259,626

244,583

244,583

6%

6%

Asia-Pacific

71,636

71,636

71,110

71,110

1%

1%

International merchant services

331,262

331,262

315,693

315,693

5%

5%

Total revenues

$ 1,178,825

$ 1,178,825

$ 1,073,276

$ 1,073,276

10%

10%

Operating income:

North America merchant services

$    134,331

$    144,723

$    142,431

$    148,111

(6%)

(2%)

International merchant services

111,127

127,201

100,152

119,268

11%

7%

Corporate1

(48,388)

(38,832)

(37,393)

(37,393)

(29%)

(4%)

Operating income

$    197,070

$    233,092

$    205,190

$    229,986

(4%)

1%

1Fiscal 2013 GAAP amounts include a processing intrusion credit of $14.5 million for the three months ended November 30, 2012 and processing system intrusion costs of $9.5 million for the six months ended November 30, 2012.

See Schedule 8 for reconciliation of cash earnings segment information to GAAP. 

 

SCHEDULE 4

CONSOLIDATED BALANCE SHEETS

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)

November 30,

May 31,

2012

2012

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$         998,261

$       781,275

Accounts receivable, net of allowances for doubtful accounts of $833 and $532, respectively

183,256

182,962

Claims receivable, net of allowance for losses of $3,786 and $3,435, respectively

968

1,029

Settlement processing assets

237,640

217,994

Inventory

14,147

9,864

Deferred income taxes

6,464

21,969

Prepaid expenses and other current assets

49,184

33,646

Total current assets

1,489,920

1,248,739

Goodwill

1,059,520

724,687

Other intangible assets, net of accumulated amortization of $267,956 and $235,296, respectively

416,170

290,188

Property and equipment, net of accumulated depreciation of $179,846 and $161,911, respectively

338,195

305,848

Deferred income taxes

97,966

97,235

Other

26,950

21,446

Total assets

$      3,428,721

$    2,688,143

LIABILITIES AND EQUITY

Current liabilities:

Lines of credit

$         212,399

$       215,391

Current portion of long-term debt

102,425

76,420

Commitment to purchase redeemable noncontrolling interest

242,000

-

Accounts payable and accrued liabilities

244,499

316,313

Settlement processing obligations

228,711

216,878

Income taxes payable

7,436

12,283

  Total current liabilities

1,037,470

837,285

Long-term debt

777,988

236,565

Deferred income taxes

167,365

106,644

Other long-term liabilities

71,097

62,306

Total liabilities

2,053,920

1,242,800

Commitments and contingencies

Redeemable noncontrolling interest

-

144,422

Equity:

Preferred stock, no par value; 5,000,000 shares authorized and none issued

-

-

Common stock, no par value; 200,000,000 shares authorized; 78,724,622 and

78,551,297 issued and outstanding at November 30, 2012 and May 31, 2012, respectively.

-

-

Paid-in capital

257,554

358,728

Retained earnings

957,978

843,456

Accumulated other comprehensive income (loss) 

18,432

(30,000)

      Total Global Payments shareholders' equity

1,233,964

1,172,184

Noncontrolling interest

140,837

128,737

Total equity

1,374,801

1,300,921

Total liabilities and equity

$      3,428,721

$    2,688,143

 

SCHEDULE 5

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)

Six Months Ended November 30,

2012

2011

Cash flows from operating activities:

Net income

$   129,533

$    140,230

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization of property and equipment

26,494

23,444

Amortization of acquired intangibles

25,561

24,796

Share-based compensation expense

9,178

8,425

Provision for operating losses and bad debts

11,970

13,061

Deferred income taxes

30,055

5,915

Other, net

(2,231)

(100)

Changes in operating assets and liabilities, net of the effects of acquisitions:  

Accounts receivable

721

3,897

Claims receivable

(6,600)

(7,880)

Settlement processing assets and obligations, net

(11,671)

(499,849)

Inventory

(4,297)

(4,212)

Prepaid expenses and other assets

(11,204)

62

Accounts payable and other accrued liabilities

(67,869)

(31,257)

Income taxes payable

(4,847)

9,402

Net cash provided by (used in) operating activities

124,793

(314,066)

Cash flows from investing activities:

Business, intangible and other asset acquisitions, net of cash acquired

(409,731)

(7,000)

Capital expenditures

(54,393)

(35,146)

Net decrease in financing receivables

1,485

1,203

Net cash used in investing activities

(462,639)

(40,943)

Cash flows from financing activities:

Net payments on short-term lines of credit

(2,992)

(45,069)

Proceeds from issuance of long-term debt

910,327

71,374

Principal payments under long-term debt

(343,133)

(131,345)

Payment of debt issuance costs

(3,987)

-

Proceeds from stock issued under employee stock plans

7,080

(768)

Common stock repurchased - share-based compensation plans

(10,224)

-

Repurchase of common stock

(12,653)

(99,604)

Tax benefit from employee share-based compensation 

1,791

1,436

Distribution to noncontrolling interests

(5,740)

(4,660)

Dividends paid

(3,153)

(3,169)

Net cash provided by (used in) financing activities

537,316

(211,805)

Effect of exchange rate changes on cash

17,516

(16,611)

Increase (decrease) in cash and cash equivalents

216,986

(583,425)

Cash and cash equivalents, beginning of period

781,275

1,354,285

Cash and cash equivalents, end of period

$   998,261

$    770,860

 

SCHEDULE 6

RECONCILIATION OF QUARTERLY CASH EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS TO GAAP

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands, except per share data)

Three Months Ended November 30, 2012

GAAP

Processing

System

Intrusion

Other2

Cash

Earnings

Adjustments1

Cash Earnings

Revenues

$           588,538

$                -

$                  -

$                   -

$          588,538

Operating expenses:

   Cost of service

210,268

-

-

(14,336)

195,932

   Sales, general and administrative

276,177

-

-

-

276,177

   Processing system intrusion

(14,489)

14,489

-

-

-

471,956

14,489

-

(14,336)

472,109

Operating income

116,582

(14,489)

-

14,336

116,429

Other income (expense):

   Interest and other income

2,187

-

-

-

2,187

   Interest and other expense

(14,609)

-

8,383

-

(6,226)

(12,422)

-

8,383

-

(4,039)

Income before income taxes 

104,160

(14,489)

8,383

14,336

112,390

Provision for income taxes

(28,789)

5,000

(1,383)

(4,213)

(29,385)

Net income  

75,371

(9,489)

7,000

10,123

83,005

Less: Net income attributable to noncontrolling interests, net of tax

(5,188)

-

(2,853)

(1,378)

(9,419)

Net income attributable to Global Payments

$             70,183

$         (9,489)

$             4,147

$             8,745

$            73,586

Diluted shares

79,144

79,144

Diluted earnings per share

$                 0.89

$           (0.12)

$               0.05

$               0.11

$                0.93

Three Months Ended November 30, 2011

GAAP

Cash Earnings

Adjustments1

Cash Earnings

Revenues

$           530,505

$                   -

$          530,505

Operating expenses:

   Cost of service

185,931

(12,153)

173,778

   Sales, general and administrative

247,994

-

247,994

433,925

(12,153)

421,772

Operating income

96,580

12,153

108,733

Other income (expense):

   Interest and other income

2,259

-

2,259

   Interest and other expense

(4,878)

-

(4,878)

(2,619)

-

(2,619)

Income before income taxes 

93,961

12,153

106,114

Provision for income taxes

(25,812)

(3,757)

(29,569)

Net income  

68,149

8,396

76,545

Less: Net income attributable to noncontrolling interests, net of tax

(6,968)

(1,945)

(8,913)

Net income attributable to Global Payments

$             61,181

$             6,451

$            67,632

Diluted shares

78,876

78,876

Diluted earnings per share

$                 0.78

$               0.08

$                0.86

1Represents adjustments to cost of service to exclude acquisition intangible amortization expense and the related income tax benefit.

2Represents HSBC's share of GPAP dividends declared.

We supplemented our reporting of net income and the related earnings per share information determined in accordance with GAAP by reporting net income and the related earnings per share for the three months ended November 30, 2012 and 2011 on a "cash earnings" basis in this earnings release as a measure to help evaluate performance. We calculated November 30,2012 net income and earnings per share on a cash basis by excluding credits related to the processing system intrusion and acquisition intangible amortization. We also adjusted the net income attributable to noncontrolling interests to include HSBC's share of second quarter 2013 GPAP net income. We calculated November 30, 2011 net income and earnings per share on a cash basis by excluding acquisition intangible amortization from our results. We exclude these items in order to more clearly focus on the factors we believe are pertinent to the daily management of our operations. Our net income and earnings per share reported on a cash earnings basis should be considered in addition to, and not as a substitute for, net income and earnings per share determined in accordance with GAAP. Our measures of net income and earnings per share on a cash earnings basis reflect management's judgment of particular items, and may not be comparable to similarly titled measures reported by other companies.

 

SCHEDULE 7

RECONCILIATION OF YEAR TO DATE CASH EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS TO GAAP

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands, except per share data)

Six Months Ended November 30, 2012

GAAP

Processing

System

Intrusion

Other2

Cash Earnings

Adjustments1

Cash Earnings

Revenues

$        1,178,825

$                  -

$                  -

$                   -

$       1,178,825

Operating expenses:

   Cost of service

414,659

-

(161)

(25,561)

388,937

   Sales, general and administrative

557,596

-

(800)

-

556,796

   Processing system intrusion

9,500

(9,500)

-

-

-

981,755

(9,500)

(961)

(25,561)

945,733

Operating income

197,070

9,500

961

25,561

233,092

Other income (expense):

   Interest and other income

4,170

-

-

-

4,170

   Interest and other expense

(18,154)

-

8,383

-

(9,771)

(13,984)

-

8,383

-

(5,601)

Income before income taxes 

183,086

9,500

9,344

25,561

227,491

Provision for income taxes

(53,553)

(3,279)

(1,533)

(7,573)

(65,938)

Net income  

129,533

6,221

7,811

17,988

161,553

Less: Net income attributable to noncontrolling interests, net of tax

(12,675)

-

(3,594)

(2,902)

(19,171)

Net income attributable to Global Payments

$           116,858

$            6,221

$             4,217

$           15,086

$          142,382

Diluted shares

79,062

79,062

Diluted earnings per share

$                 1.48

$              0.08

$               0.05

$               0.19

$                1.80

Six Months Ended November 30, 2011

GAAP

Cash Earnings Adjustments1

Cash Earnings

Revenues

$        1,073,276

$                   -

$       1,073,276

Operating expenses:

   Cost of service

377,467

(24,796)

352,671

   Sales, general and administrative

490,619

-

490,619

868,086

(24,796)

843,290

Operating income

205,190

24,796

229,986

Other income (expense):

   Interest and other income

4,760

-

4,760

   Interest and other expense

(8,965)

-

(8,965)

(4,205)

-

(4,205)

Income before income taxes 

200,985

24,796

225,781

Provision for income taxes

(60,755)

(7,496)

(68,251)

Net income  

140,230

17,300

157,530

Less: Net income attributable to noncontrolling interests, net of tax

(15,075)

(4,010)

(19,085)

Net income attributable to Global Payments

$           125,155

$           13,290

$          138,445

Diluted shares

79,831

79,831

Diluted earnings per share

$                 1.57

$                  -

$                  -

$               0.18

$                1.73

1Represents adjustments to cost of service to exclude acquisition intangible amortization expense and the related income tax benefit.

2Represents HSBC's share of GPAP dividends declared and one-time charges primarily related to employee termination benefits.

We supplemented our reporting of net income and the related earnings per share information determined in accordance with GAAP by reporting net income and the related earnings per share for the six months ended November 30, 2012 and 2011 on a "cash earnings" basis in this earnings release as a measure to help evaluate performance. We calculated November 30,2012 net income and earnings per share on a cash basis by excluding costs related to the processing system intrusion, acquisition intangible amortization and one-time charges related to employee termination benefits. We also adjusted the net income attributable to noncontrolling interests to include HSBC's share of August 2012 through November 2012 GPAP net income. We calculated November 30, 2011 net income and earnings per share on a cash basis by excluding acquisition intangible amortization from our results. We exclude these charges in order to more clearly focus on the factors we believe are pertinent to the daily management of our operations. Our net income and earnings per share reported on a cash earnings basis should be considered in addition to, and not as a substitute for, net income and earnings per share determined in accordance with GAAP. Our measures of net income and earnings per share on a cash earnings basis reflect management's judgment of particular items, and may not be comparable to similarly titled measures reported by other companies.

 

SCHEDULE 8

RECONCILIATION OF CASH EARNINGS SEGMENT INFORMATION TO GAAP

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)

 Three Months Ended November 30, 

2012

2011

 GAAP 

Processing

System

Intrusion

Other

Cash

Earnings

Adjustments1

 Cash Earnings 

 GAAP 

Cash

Earnings

Adjustments1

 Cash Earnings 

Revenues:

United States

$      339,998

$                -

$                -

$                       -

$      339,998

$      293,416

$                       -

$      293,416

Canada

80,770

-

-

-

80,770

85,521

-

85,521

North America merchant services

420,768

-

-

-

420,768

378,937

-

378,937

Europe

131,161

-

-

-

131,161

115,169