Global Payments (GPN)
Q3 2013 Earnings Call
April 02, 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
Roman Leal - Goldman Sachs Group Inc., Research Division
David J. Koning - Robert W. Baird & Co. Incorporated, Research Division
Steven Kwok - Keefe, Bruyette, & Woods, Inc., Research Division
Georgios Mihalos - Crédit Suisse AG, Research Division
Kartik Mehta - Northcoast Research
Bryan Keane - Deutsche Bank AG, Research Division
Tien-Tsin T. Huang - JP Morgan Chase & Co, Research Division
Gregory Smith - Sterne Agee & Leach Inc., Research Division
Craig J. Maurer - Credit Agricole Securities (USA) Inc., Research Division
Kevin D. McVeigh - Macquarie Research
Brett Huff - Stephens Inc., Research Division
Previous Statements by GPN
» Global Payments Inc. Presents at Goldman Sachs Technology & Internet Conference 2013, Feb-13-2013 02:00 PM
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» Global Payments Management Discusses Q2 2013 Results - Earnings Call Transcript
Jane M. Forbes
Good afternoon, and welcome to Global Payments' Fiscal 2013 Third Quarter Conference Call. Our call today is scheduled for 1 hour. 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, April 2, 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 thank you, everyone, for joining us this afternoon.
Our third quarter performance was consistent with our expectations, and we are pleased with the progress we have made in achieving our 2013 initiatives.
For the third quarter, revenue grew 8% to $579 million and cash earnings per share grew 5% to $0.87. I am pleased to note that we are on track to achieve our full year revenue and cash earnings expectations.
I'm gratified to report that during the quarter, we returned to the worldwide list of PCI-compliant companies. This was a significant milestone and I am proud of the accomplishments of our team. We are particularly grateful to our customers, partners and the card networks for their support.
Now that the remediation work is behind us, we can turn our full focus to driving the business forward. To that end, I want to highlight 3 specific growth areas. First, our partner of choice strategy. You heard a lot of about this at our Investor Day. We have been successfully partnering with financial institutions, value-added resellers and other payment service providers offering merchants high-quality payment services around the world. We anticipate driving further growth and expansion in new and existing distribution channels through the partner of choice strategy. A case in point: our partnership with Intuit in the U.K. is an example of a new distribution channel. The Intuit Pay mobile POS product was formally launched on March 14. And Intuit recently won the best SMB Innovation Award at PYMNTS.com Innovation Award ceremony.
In addition, and as we also discussed in January at our Investor Day, integrated payment solutions, such as those delivered by APT, will provide significant leverage to our direct sales efforts in North America in the coming fiscal year. Secondly, we are continuing to invest in technology infrastructure that will give us scalability for years to come, including new data center facilities and state-of-the-art security capabilities. Additionally, we are pleased to note that we have completed certification with Visa for contact and contactless EMV cards in the U.S. We are on track to complete certification with the other networks prior to the mandated dates later this month. Thirdly, in this ever-changing payments environment, we will continue to innovate in our core business and introduce new product offerings. For example, in the next 90 days, we will be ready to offer in-store PayPal acceptance to our U.S. merchants. Our proprietary mobile PayApp product, which recently piloted at Hong Kong, received an Innovation Award at Visa's annual Hong Kong event.
We have now expanded the PayApp pilot to include merchants in the United States. Further, we just launched a pilot in the U.S. with edo, a leader in personalized card-linked offers for a merchant loyalty program that provides instantly redeemable offers tailored to customer's individual shopping habits. Through edo, our merchants' customers can access a card-linked offer platform with 200 million cards on file across 200 banks, including importantly, 3 of the top 6 financial institutions in the United States. These innovations leverage our existing merchant relationships, enhance merchant retention, grow new business and will provide new revenue sources.