Atlanta-based Global Payments Inc. yesterday announced results for its fiscal fourth quarter and year ended May 31, 2012. The transaction processor reported taking an $84.4 million dollar pre-tax charge as a result of the massive data breach that came to light in late March.
Global Payments chairman and CEO Paul R. Garcia said he was pleased that in "a challenging year," the company had delivered strong results with revenues of $2.2 billion (18 percent growth year-over year), and cash earnings per share of $3.53 (15 percent growth year-over-year).
For the full year of fiscal 2013, the company expects annual revenue of $2.36 billion to $2.4 billion, or 7 percent to 9 percent growth over fiscal 2012. On a constant currency basis, the company expects revenue to grow 8 percent to 10 percent.
In a post-earnings call Q&A, a company executive said Global Payments would incur additional charges in 2013 as a result of the 2012 data breach. These could total $25 million to $35 million over and above insurance proceeds of about $28 million.
Costs from the data theft include charges from the card brands, the investigation and remediation expenses. A qualified security assessor is conducting an independent review required to return Global Payments to lists of PCI compliant service providers, the company said.
Garcia also talked during the earnings call about ongoing strategies to drive future growth for Global Payments. "I am pleased to announce that we have signed an agreement to acquire the remaining 44 percent interest in our merchant services joint venture in Asia-Pacific from HSBC. Lastly, our board of directors has authorized a $150 million share-repurchase program, which I believe demonstrates our confidence in the company," he said.
For more on this topic, visit the transaction processing research center.
User Comments