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HomeNewsBusiness WireGlobal Payments Reports Fourth Quarter and Full Year 2022 Results

Global Payments Reports Fourth Quarter and Full Year 2022 Results

Establishes Growth Targets for 2023

Expects to Complete Acquisition of EVO Payments no later than March 31

Netspend Consumer Divestiture On Track to Close by end of First Quarter

Executes Agreement to Sell Gaming Solutions Business

ATLANTA–(BUSINESS WIRE)–#globalpayments–Global Payments Inc. (NYSE: GPN) today announced results for the fourth quarter and year ended December 31, 2022.


“We delivered strong results for the fourth quarter and full year 2022, highlighting consistent execution across market cycles,” said Jeff Sloan, Chief Executive Officer. “For the fourth quarter, our Merchant business delivered 9% adjusted net revenue growth (excluding dispositions) and our Issuer business delivered 5% adjusted net revenue growth, each on a foreign exchange neutral (FXN) basis relative to the prior year. Notably, our core Issuer business accelerated sequentially in the fourth quarter to produce its best performance since our merger with TSYS in 2019.

“For calendar 2022, our Merchant business delivered 13% adjusted net revenue growth (excluding dispositions) and our Issuer business delivered 5% adjusted net revenue growth, each on a FXN basis. For the year, we produced 10% adjusted net revenue growth (FXN and excluding dispositions), expanded adjusted margins by 190 basis points and delivered 17% adjusted earnings per share growth (on a FXN basis), consistent with our September 2021 cycle guidance despite the incremental challenges of the macroeconomic environment.”

Sloan continued, “We also made great progress on our strategy in 2022. First, we look forward to closing our acquisition of EVO Payments no later than the end of March as anticipated. The transaction will significantly increase our target addressable markets, enhance our leadership in integrated payments worldwide, expand our presence in new and provide further scale in existing faster growth geographies, and augment our business-to-business software and payment solutions.

“Second, we remain on track to close the divestiture of Netspend’s consumer business by the end of the first quarter. Third, we entered into a definitive agreement to sell our Gaming Solutions business to Parthenon Capital Partners for $415 million, which is consistent with our efforts to refine our portfolio to focus on our corporate clients and away from consumer centric businesses.

“Fourth and finally, we effectively balanced capital investment with return of capital to our shareholders. Through stock repurchases and dividends, we returned over $3 billion in 2022. And we welcomed Silver Lake, the global leader in technology investing, to our base of investors.”

Sloan concluded, “These transactions further our strategic objectives, simplify our businesses and provide us with enhanced confidence in our growth and margin targets over the cycle. Each of our primary businesses is growing at attractive rates with improved margin profiles.”

Fourth Quarter 2022 Summary

  • GAAP revenues were $2.25 billion, compared to $2.19 billion in the fourth quarter of 2021; diluted earnings per share were $0.94 compared to $0.72 in the prior year; and operating margin was 18.1% compared to 14.6% in the prior year.
  • Adjusted net revenues increased 2% (4% constant currency) to $2.02 billion, compared to $1.98 billion in the fourth quarter of 2021; excluding the impact of dispositions, adjusted net revenue increased 7% on a constant currency basis.
  • Adjusted earnings per share increased 14% (17% constant currency) to $2.42, compared to $2.13 in the fourth quarter of 2021.
  • Adjusted operating margin expanded 240 basis points to 44.4%.

Full Year 2022 Summary

  • GAAP revenues were $8.98 billion, compared to $8.52 billion in 2021; diluted earnings per share were $0.40 compared to $3.29 in the prior year; and operating margin was 7.1% compared to 15.9% in the prior year.
  • Adjusted net revenues increased 5% (7% constant currency) to $8.09 billion, compared to $7.74 billion in 2021; excluding the impact of dispositions, adjusted net revenue increased 10% on a constant currency basis.
  • Adjusted earnings per share increased 14% (17% constant currency) to $9.32, compared to $8.16 in 2021.
  • Adjusted operating margin expanded 190 basis points to 43.7%.

2023 Outlook

“We achieved strong financial performance in the fourth quarter and for the full year, which highlights the durability of our business model and consistent execution of our technology-enabled strategy,” said Josh Whipple, Senior Executive Vice President and Chief Financial Officer. “We remain well positioned from a financial and operating perspective as we enter 2023.

“Looking ahead, the company expects adjusted net revenue to be in a range of $8.575 billion to $8.675 billion, reflecting growth of 6% to 7% over 2022, and adjusted earnings per share to be in a range of $10.25 to $10.37, reflecting growth of 10% to 11% over 2022 (15% to 16% excluding dispositions). Annual adjusted operating margin for 2023 is expected to expand by up to 120 basis points.

“Our 2023 outlook reflects the closings of the acquisition of EVO Payments, the divestiture of Netspend’s consumer business and the sale of Gaming Solutions in each case by the end of the first quarter.”

Whipple concluded, “We presume a stable worldwide macroeconomic backdrop throughout calendar year 2023.”

Capital Allocation

Global Payments’ Board of Directors approved a dividend of $0.25 per share payable March 31, 2023 to shareholders of record as of March 17, 2023. Our Board of Directors has also reauthorized up to $1.5 billion of share repurchase capacity.

Conference Call

Global Payments’ management will host a live audio webcast today, February 10, 2023, at 8:00 a.m. EST 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.globalpayments.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. The constant currency growth measures adjust for the impact of exchange rates and are calculated using average exchange rates during the comparable period in the prior year.

Global Payments also has provided supplemental non-GAAP information to reflect the pending divestiture of the consumer portion of the Consumer Solutions segment. 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 25,000 team members worldwide, Global Payments is a Fortune 500® company and a member of the S&P 500 with worldwide reach spanning over 170 countries throughout North America, Europe, Asia Pacific and Latin America. For more information, visit www.globalpayments.com and follow Global Payments on Twitter (@globalpayinc), LinkedIn and Facebook.

Forward-Looking Statements

Investors are cautioned that some of the statements we use in this report contain forward-looking statements and are made pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which we operate, and beliefs of and assumptions made by our management, involve risks and uncertainties that could significantly affect the financial condition, results of operations, business plans and the future performance of 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 guidance and projected financial results for the year 2023; the effects of general economic conditions on our business, including those caused by the COVID-19 pandemic; statements about the strategic rationale and benefits of the proposed acquisition of EVO Payments, Inc. (“EVO”), including future financial and operating results, the combined company’s plans, objectives, expectations and intentions and the expected timing of completion of the proposed transaction; planned divestitures, including Netspend’s consumer business and our gaming solutions business, or strategic initiatives; our success and timing in developing and introducing new services and expanding our business; and other statements regarding our future financial performance. 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, including the effects and duration of, and actions taken in response to, the COVID-19 pandemic and Russia’s invasion of Ukraine; 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; the effect of a security breach or operational failure on our business; our ability to complete the proposed transaction with EVO on the proposed terms or on the proposed timeline, or at all, including risks and uncertainties related to securing the necessary regulatory approvals and the satisfaction of other closing conditions; the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive merger agreement relating to the transaction with EVO; failure to realize the expected benefits of the proposed transaction with EVO; effects relating to the announcement of the proposed transaction with EVO, including on the market price of our common stock and our relationships with customers, employees and suppliers; the risk of potential shareholder litigation associated with the proposed transaction with EVO; 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” 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 December 31,

 

Years Ended December 31,

 

 

2022

 

 

 

2021

 

 

% Change

 

 

2022

 

 

 

2021

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

2,252,984

 

 

$

2,193,981

 

 

2.7

%

 

$

8,975,515

 

 

$

8,523,762

 

 

5.3

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Cost of service

 

927,911

 

 

 

967,997

 

 

(4.1

)%

 

 

3,778,617

 

 

 

3,773,725

 

 

0.1

%

Selling, general and administrative

 

919,495

 

 

 

905,008

 

 

1.6

%

 

 

3,524,578

 

 

 

3,391,161

 

 

3.9

%

Impairment of goodwill

 

 

 

 

 

 

%

 

 

833,075

 

 

 

 

 

nm

Loss on business dispositions

 

(2,051

)

 

 

 

 

nm

 

 

199,094

 

 

 

 

 

nm

 

 

1,845,355

 

 

 

1,873,005

 

 

(1.5

)%

 

 

8,335,364

 

 

 

7,164,886

 

 

16.3

%

Operating income

 

407,630

 

 

 

320,976

 

 

27.0

%

 

 

640,151

 

 

 

1,358,876

 

 

(52.9

)%

Interest and other income

 

8,544

 

 

 

3,311

 

 

158.0

%

 

 

33,604

 

 

 

19,320

 

 

73.9

%

Interest and other expense

 

(121,778

)

 

 

(87,767

)

 

38.8

%

 

 

(449,433

)

 

 

(333,651

)

 

34.7

%

 

 

(113,234

)

 

 

(84,456

)

 

34.1

%

 

 

(415,829

)

 

 

(314,331

)

 

32.3

%

Income before income taxes and equity in income of equity method investments

 

294,396

 

 

 

236,520

 

 

24.5

%

 

 

224,322

 

 

 

1,044,545

 

 

(78.5

)%

Income tax expense

 

47,444

 

 

 

37,434

 

 

26.7

%

 

 

166,694

 

 

 

169,034

 

 

(1.4

)%

Income before equity in income of equity method investments

 

246,952

 

 

 

199,086

 

 

24.0

%

 

 

57,628

 

 

 

875,511

 

 

(93.4

)%

Equity in income of equity method investments, net of tax

 

11,611

 

 

 

18,092

 

 

(35.8

)%

 

 

85,685

 

 

 

112,353

 

 

(23.7

)%

Net income

 

258,563

 

 

 

217,178

 

 

19.1

%

 

 

143,313

 

 

 

987,864

 

 

(85.5

)%

Net income attributable to noncontrolling interests, net of income tax

 

(9,257

)

 

 

(8,725

)

 

6.1

%

 

 

(31,820

)

 

 

(22,404

)

 

42.0

%

Net income attributable to Global Payments

$

249,306

 

 

$

208,453

 

 

19.6

%

 

$

111,493

 

 

$

965,460

 

 

(88.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Global Payments:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.93

 

 

$

0.72

 

 

29.2

%

 

$

0.41

 

 

$

3.30

 

 

(87.6

)%

Diluted

$

0.94

 

 

$

0.72

 

 

30.6

%

 

$

0.40

 

 

$

3.29

 

 

(87.8

)%

Weighted-average number of shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

265,637

 

 

 

287,887

 

 

 

 

 

275,191

 

 

 

292,655

 

 

 

Diluted

 

265,963

 

 

 

288,466

 

 

 

 

 

275,576

 

 

 

293,669

 

 

 

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

 

Years Ended

 

December 31,

 

December 31,

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net revenue

$

2,022,309

 

$

1,984,878

 

1.9

%

 

$

8,091,650

 

$

7,737,960

 

4.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

$

898,201

 

$

833,472

 

7.8

%

 

$

3,533,644

 

$

3,234,347

 

9.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income attributable to Global Payments

$

643,082

 

$

614,726

 

4.6

%

 

$

2,569,331

 

$

2,396,422

 

7.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted diluted earnings per share attributable to Global Payments

$

2.42

 

$

2.13

 

13.5

%

 

$

9.32

 

$

8.16

 

14.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Non-GAAP ⁽¹⁾

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net revenue⁽¹⁾

$

1,898,631

 

$

1,825,070

 

4.0

%

 

$

7,527,748

 

$

7,008,777

 

7.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income⁽¹⁾

$

839,787

 

$

798,863

 

5.1

%

 

$

3,345,706

 

$

3,033,786

 

10.3

%

__________________________

(1)

 

The supplemental non-GAAP information reflects the pending divestiture of our consumer business.

 

 

 

See Schedules 6 and 7 for a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure, Schedules 8 and 9 for a reconciliation of adjusted net revenue and adjusted operating income by segment and supplemental non-GAAP information to the most comparable GAAP measure, and Schedule 10 for a discussion of non-GAAP financial measures.

SCHEDULE 3

SEGMENT INFORMATION (UNAUDITED)

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)

 

 

 

Three months ended

 

 

 

 

 

 

December 31, 2022

 

December 31, 2021

 

% Change

 

 

GAAP

 

Non-GAAP

 

GAAP

 

Non-GAAP

 

GAAP

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Merchant Solutions

 

$

1,553,856

 

 

$

1,409,564

 

 

$

1,475,032

 

 

$

1,339,975

 

 

5.3

%

 

5.2

%

Issuer Solutions

 

 

582,616

 

 

 

501,326

 

 

 

569,644

 

 

 

494,898

 

 

2.3

%

 

1.3

%

Consumer Solutions

 

 

142,401

 

 

 

136,491

 

 

 

174,980

 

 

 

174,980

 

 

(18.6

)%

 

(22.0

)%

Intersegment Elimination

 

 

(25,889

)

 

 

(25,072

)

 

 

(25,675

)

 

 

(24,975

)

 

(0.8

)%

 

(0.4

)%

 

 

$

2,252,984

 

 

$

2,022,309

 

 

$

2,193,981

 

 

$

1,984,878

 

 

2.7

%

 

1.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Merchant Solutions

 

$

509,682

 

 

$

681,718

 

 

$

460,304

 

 

$

646,204

 

 

10.7

%

 

5.5

%

Issuer Solutions

 

 

112,025

 

 

 

241,919

 

 

 

87,767

 

 

 

211,248

 

 

27.6

%

 

14.5

%

Consumer Solutions

 

 

(14,141

)

 

 

58,414

 

 

 

20,737

 

 

 

34,609

 

 

(168.2

)%

 

68.8

%

Corporate

 

 

(201,987

)

 

 

(83,850

)

 

 

(247,832

)

 

 

(58,589

)

 

18.5

%

 

(43.1

)%

Loss on business dispositions

 

 

2,051

 

 

 

 

 

 

 

 

 

 

 

nm

 

nm

 

 

$

407,630

 

 

$

898,201

 

 

$

320,976

 

 

$

833,472

 

 

27.0

%

 

7.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

 

 

 

December 31, 2022

 

December 31, 2021

 

% Change

 

 

GAAP

 

Non-GAAP

 

GAAP

 

Non-GAAP

 

GAAP

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Merchant Solutions

 

$

6,204,917

 

 

$

5,630,713

 

 

$

5,665,557

 

 

$

5,136,121

 

 

9.5

%

 

9.6

%

Issuer Solutions

 

 

2,245,623

 

 

 

1,943,087

 

 

 

2,165,747

 

 

 

1,906,242

 

 

3.7

%

 

1.9

%

Consumer Solutions

 

 

620,482

 

 

 

609,833

 

 

 

783,625

 

 

 

783,579

 

 

(20.8

)%

 

(22.2

)%

Intersegment Elimination

 

 

(95,507

)

 

 

(91,983

)

 

 

(91,167

)

 

 

(87,982

)

 

(4.8

)%

 

(4.5

)%

 

 

$

8,975,515

 

 

$

8,091,650

 

 

$

8,523,762

 

 

$

7,737,960

 

 

5.3

%

 

4.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Merchant Solutions

 

$

2,040,255

 

 

$

2,758,004

 

 

$

1,725,990

 

 

$

2,472,460

 

 

18.2

%

 

11.5

%

Issuer Solutions

 

 

356,215

 

 

 

881,980

 

 

 

333,355

 

 

 

824,676

 

 

6.9

%

 

6.9

%

Consumer Solutions

 

 

53,594

 

 

 

187,936

 

 

 

135,541

 

 

 

200,560

 

 

(60.5

)%

 

(6.3

)%

Corporate

 

 

(777,744

)

 

 

(294,278

)

 

 

(836,010

)

 

 

(263,348

)

 

7.0

%

 

(11.7

)%

Impairment of goodwill

 

 

(833,075

)

 

 

 

 

 

 

 

 

 

 

nm

 

nm

Loss on business dispositions

 

 

(199,094

)

 

 

 

 

 

 

 

 

 

 

nm

 

nm

 

 

$

640,151

 

 

$

3,533,644

 

 

$

1,358,876

 

 

$

3,234,347

 

 

(52.9

)%

 

9.3

%

 

_________________________

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)

 
 

 

December 31,

 

 

2022

 

 

 

2021

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,997,566

 

 

$

1,979,308

 

Accounts receivable, net

 

998,332

 

 

 

946,247

 

Settlement processing assets

 

2,519,114

 

 

 

1,143,539

 

Current assets held for sale

 

138,815

 

 

 

4,779

 

Prepaid expenses and other current assets

 

660,321

 

 

 

637,112

 

Total current assets

 

6,314,148

 

 

 

4,710,985

 

Goodwill

 

23,320,736

 

 

 

24,813,274

 

Other intangible assets, net

 

9,658,374

 

 

 

11,633,709

 

Property and equipment, net

 

1,838,809

 

 

 

1,687,586

 

Deferred income taxes

 

37,907

 

 

 

12,117

 

Noncurrent assets held for sale

 

1,295,799

 

 

 

 

Other noncurrent assets

 

2,343,241

 

 

 

2,422,042

 

Total assets

$

44,809,014

 

 

$

45,279,713

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Current liabilities:

 

 

 

Settlement lines of credit

$

747,111

 

 

$

484,202

 

Current portion of long-term debt

 

1,169,330

 

 

 

78,505

 

Accounts payable and accrued liabilities

 

2,442,560

 

 

 

2,542,256

 

Settlement processing obligations

 

2,413,799

 

 

 

1,358,051

 

Current liabilities held for sale

 

125,891

 

 

 

 

Total current liabilities

 

6,898,691

 

 

 

4,463,014

 

Long-term debt

 

12,289,248

 

 

 

11,414,809

 

Deferred income taxes

 

2,428,412

 

 

 

2,793,427

 

Noncurrent liabilities held for sale

 

4,478

 

 

 

 

Other noncurrent liabilities

 

647,975

 

 

 

739,046

 

Total liabilities

 

22,268,804

 

 

 

19,410,296

 

Commitments and contingencies

 

 

 

Equity:

 

 

 

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

 

 

 

 

 

Common stock, no par value; 400,000,000 shares authorized at December 31, 2022 and 2021; 263,081,872 shares issued and outstanding at December 31, 2022 and 284,750,452 shares issued and outstanding at December 31, 2021

 

 

 

 

 

Paid-in capital

 

19,978,095

 

 

 

22,880,261

 

Retained earnings

 

2,731,380

 

 

 

2,982,122

 

Accumulated other comprehensive loss

 

(405,969

)

 

 

(234,182

)

Total Global Payments shareholders’ equity

 

22,303,506

 

 

 

25,628,201

 

Noncontrolling interests

 

236,704

 

 

 

241,216

 

Total equity

 

22,540,210

 

 

 

25,869,417

 

Total liabilities and equity

$

44,809,014

 

 

$

45,279,713

 

SCHEDULE 5

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)

 
 

 

Years Ended December 31,

 

 

2022

 

 

 

2021

 

Cash flows from operating activities:

 

 

 

Net income

$

143,313

 

 

$

987,864

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization of property and equipment

 

399,486

 

 

 

396,342

 

Amortization of acquired intangibles

 

1,262,969

 

 

 

1,295,042

 

Amortization of capitalized contract costs

 

109,701

 

 

 

93,328

 

Share-based compensation expense

 

163,261

 

 

 

180,779

 

Provision for operating losses and bad debts

 

116,879

 

 

 

90,208

 

Noncash lease expense

 

78,935

 

 

 

107,775

 

Deferred income taxes

 

(315,495

)

 

 

(189,050

)

Equity in income of equity method investments, net of tax

 

(85,685

)

 

 

(112,353

)

Facilities exit charges

 

30,437

 

 

 

51,349

 

Distributions received on investments

 

45,521

 

 

 

36,914

 

Impairment of goodwill

 

833,075

 

 

 

 

Loss on business dispositions

 

199,094

 

 

 

 

Other, net

 

993

 

 

 

10,810

 

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

 

 

 

Accounts receivable

 

(111,974

)

 

 

(165,543

)

Settlement processing assets and obligations, net

 

(313,333

)

 

 

128,584

 

Prepaid expenses and other assets

 

(295,980

)

 

 

(264,009

)

Accounts payable and other liabilities

 

(17,157

)

 

 

132,785

 

Net cash provided by operating activities

 

2,244,040

 

 

 

2,780,825

 

Cash flows from investing activities:

 

 

 

Business combinations and other acquisitions, net of cash acquired

 

(65,672

)

 

 

(1,811,432

)

Capital expenditures

 

(615,652

)

 

 

(493,216

)

Effect on cash from sale of business

 

(29,755

)

 

 

 

Proceeds from sale of investments

 

33,046

 

 

 

 

Other, net

 

2,496

 

 

 

10,822

 

Net cash used in investing activities

 

(675,537

)

 

 

(2,293,826

)

Cash flows from financing activities:

 

 

 

Net borrowings from settlement lines of credit

 

285,644

 

 

 

149,528

 

Proceeds from long-term debt

 

9,812,289

 

 

 

7,057,668

 

Repayments of long-term debt

 

(7,895,131

)

 

 

(4,826,769

)

Payments of debt issuance costs

 

(48,635

)

 

 

(21,320

)

Repurchases of common stock

 

(2,921,307

)

 

 

(2,533,629

)

Proceeds from stock issued under share-based compensation plans

 

44,127

 

 

 

49,545

 

Common stock repurchased – share-based compensation plans

 

(38,601

)

 

 

(90,649

)

Distributions to noncontrolling interests

 

(23,031

)

 

 

 

Contributions from noncontrolling interests

 

 

 

 

69,987

 

Payment of contingent consideration in business combination

 

(15,726

)

 

 

 

Purchase of capped calls related to issuance of convertible notes

 

(302,375

)

 

 

 

Dividends paid

 

(273,955

)

 

 

(259,726

)

Net cash used in financing activities

 

(1,376,701

)

 

 

(405,365

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(99,219

)

 

 

(48,382

)

Increase in cash, cash equivalents and restricted cash

 

92,583

 

 

 

33,252

 

Cash, cash equivalents and restricted cash, beginning of the period

 

2,123,023

 

 

 

2,089,771

 

Cash, cash equivalents and restricted cash, end of the period

$

2,215,606

 

 

$

2,123,023

 

Contacts

Investor contact:

[email protected]
Winnie Smith

770-829-8478

Media contact:

[email protected]
Emily Edmonds

770-829-8755

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