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Global Payments (GPN)
Q2 2013 Earnings Call
January 08, 2013 5:00 pm ET
Jane M. Forbes - Vice President of Investor Relations
Paul R. Garcia - Chairman and Chief Executive Officer
David E. Mangum - Chief Financial officer and Senior Executive Vice President
Jeffrey S. Sloan - President
Tien-Tsin T. Huang - JP Morgan Chase & Co, Research Division
Roman Leal - Goldman Sachs Group Inc., Research Division
Kevin D. McVeigh - Macquarie Research
Bryan Keane - Deutsche Bank AG, Research Division
Craig J. Maurer - Credit Agricole Securities (USA) Inc., Research Division
Jason Kupferberg - Jefferies & Company, Inc., Research Division
Gregory Smith - Sterne Agee & Leach Inc., Research Division
Brett Huff - Stephens Inc., Research Division
Georgios Mihalos - Crédit Suisse AG, Research Division
Timothy Wojs - Robert W. Baird & Co. Incorporated, Research Division
Daniel R. Perlin - RBC Capital Markets, LLC, Research Division
Steven Kwok - Keefe, Bruyette, & Woods, Inc., Research Division
Previous Statements by GPN
» Global Payments' Management Presents at Citi Financial Technology Conference (Transcript)
» Global Payments Management Discusses Q1 2013 Results - Earnings Call Transcript
» Global Payments Management Discusses Q4 2012 Results - Earnings Call Transcript
Jane M. Forbes
Thank you, Tien Tsin. Good afternoon, and welcome to Global Payments' Fiscal 2013 Second Quarter Conference Call. Our call today is scheduled for 1 hour. And joining me on the call are Paul Garcia, Chairman and CEO; Jeff Sloan, President; and David Mangum, Senior Executive Vice President and CFO.
Before we begin, I'd like to remind you that some of the comments made by management during the conference call contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to vary, which are discussed in our public releases, including our most recent 10-K. We caution you not to put undue reliance on forward-looking statements. Forward-looking statements made during this call speak only as of the date of this call.
In addition, some of the comments made on this call may refer to certain measures such as cash earnings, which are not in accordance with GAAP. Management believes these results more clearly reflect comparative operating performance.
For a full reconciliation of cash earnings to GAAP results in accordance with Regulation G, please see our press release furnished as an exhibit to our Form 8-K dated today, January 8, 2013, which may be located under the Investor Relations area on our website at www.globalpaymentsinc.com.
Now I'd like to introduce Paul Garcia. Paul?
Paul R. Garcia
Thank you, Jane, and thanks, everyone, for joining us this afternoon. I am pleased with our solid performance in the second quarter of fiscal 2013. Revenue grew 11% in the second quarter to $589 million, and cash earnings per share grew 8% to $0.93. We have increased our full year EPS expectations, which David will detail later in the call.
I'm also pleased to note that the acquisition of U.S.-based Accelerated Payment Technologies, or APT, and the purchase of HSBC's remaining 44% ownership interest in our Asia-Pacific joint venture are both complete. APT will allow us to leverage industry-leading technology by adding new merchants through existing value-added reseller partners and through establishing new VAR relationships. I am delighted to tell you that APT has hit the ground running and is performing well. The Asia-Pacific transaction will, of course, now allow us to more fully leverage our presence in this strategic region. To that end, we are encouraged by our prospects and the receptivity of those with whom we have already met.
Next, I'm happy to provide an update on our PCI recertification process. We are 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. This was truly a collaborative effort. And first and foremost, we owe a debt of gratitude to our customers and partners for their unwavering support. I also wish to thank the card networks for their expertise and professionalism throughout this process. Their job, and they do it well, is to protect the cardholder and ensure the integrity of the payment system. Through it all, we continue to sign new customers, securely process record transaction volumes and grow our business around the world. I'm truly thankful for my colleagues' daily efforts that made all of this possible.
Speaking of around the world, we have received approval from Visa and MasterCard for license to process in Brazil, and we anticipate certification of our platforms by the end of the fiscal year.
We also signed a new agreement with Intuit, the makers of QuickBooks, to be the payment services provider for Intuit Pay, a new integrated mobile payment solution that targets U.K. SME business segment. This is in keeping with our strategy to power mobile-related payments globally for companies that wish to offer value-added payment services for their customers.
We continue to benefit from our partnership with la Caixa as the bank leverages its financial strength by expanding through acquisitions. In addition to increasing the joint venture's footprint, some of these financial institutions have merchant acquiring businesses. To that end, our joint venture, Comercia, closed on a merchant acquiring business from Bank Civica [ph] valued at approximately USD 23 million in December.
We also announced that our board has doubled our share repurchase authorization to a total of $300 million. This increase underscores our confidence in the long-term prospects of Global Payments.