EX-99.1 2 q22013exhibit991nr.htm EARNINGS RELEASE Q2 2013 Exhibit 99.1 NR


EXHIBIT 99.1
                    
Heartland Payment Systems 90 Nassau Street
Princeton, NJ 08542 888.798.3131
HeartlandPaymentSystems.com



HEARTLAND PAYMENT SYSTEMS REPORTS RECORD

QUARTERLY EARNINGS


SECOND QUARTER ADJUSTED EARNINGS PER SHARE INCREASE 22%

Princeton, NJ - July 31, 2013 - Heartland Payment Systems, Inc. (NYSE: HPY), one of the nation's largest payment processors and leading provider of merchant business solutions, today announced Adjusted Net Income and Adjusted Earnings per Share of $23.1 million and $0.62, respectively, for the quarter ended June 30, 2013, compared to Adjusted Net Income and Adjusted Earnings per Share of $20.5 million and $0.51, respectively, for the quarter ended June 30, 2012. GAAP net income from continuing operations for the quarter ended June 30, 2013 was $19.7 million, or $0.53 per share compared to $18.0 million, or $0.43 for the quarter ended June 30, 2012. Adjusted Net Income and Adjusted Earnings per Share are non-GAAP measures that are detailed later in this press release in the section “Reconciliation of Non-GAAP Financial Measures.”
 
Highlights for the second quarter of 2013 include:

Record Small and Mid-Sized Enterprise (SME) quarterly transaction processing volume of $19.3 billion, up 4.2% from the second quarter of 2012

Record Quarterly Net Revenue of $149.7 million, up 13.5% from the second quarter of 2012

Operating Margin on Net Revenue of 22.3%, compared to 22.0% for the same quarter in 2012; the operating margin for the first six months of this year also increased from the first six months of last year

Same store sales rose 1.9% and volume attrition was 12.9% in the second quarter

New margin installed of $17.6 million, up 16% from the second quarter of 2012 and the best quarterly new margin installed performance in over three years

Share-based compensation reduced earnings by $3.3 million pre-tax, or approximately $0.05 per share, compared to $4.0 million pre-tax, or $0.06 per share in the second quarter of 2012

Acquisition-related amortization was $2.3 million pre-tax, or $0.04 per share, in the second quarter, up from $1.1 million pre-tax, or $0.02 per share in the first quarter of 2012


Page 1



Robert Carr, Chairman and CEO, commented, “Record earnings in the second quarter clearly demonstrate that our strategy to productively grow our sales organization, selectively enhance our core transaction processing capability, and add complementary non-card products to our portfolio is generating double-digit growth in net revenue and operating income. New business continues to gain momentum, as new margin installed grew 16% in the quarter, with new card margin installed growing faster than overall new margin installed. Pricing on new card merchants installed remains attractive, with June being the best month of new card margin installed in nearly five years. Productivity in our sales organization also improved to record levels, and for the second consecutive quarter, we grew the sales organization, achieving net growth of 42 relationship managers. We also achieved improved margins while investing in a variety of growth initiatives. The investments we continue to make across the organization are not only strengthening our performance today, but are positioning us for continued growth over the long term.”

SME card processing volume for the three months ended June 30, 2013 increased 4.2% from the year-ago quarter to a record $19.3 billion, as new margin installed growth accelerated sequentially from the first quarter and same store sales and volume attrition remained within expectations. Net revenue in the quarter increased 13.5% over the prior year, with steady card processing revenue growth complemented by a 107% increase in payroll revenues, a 71% increase in Heartland School Solutions transaction processing revenue, strong revenue contribution by ECSI to our Campus Solutions business, and a 25% increase in total equipment-related revenue. Operating income in the quarter was up 15% from the year-ago quarter to a record $33.3 million, or 22.3% of net revenue. The operating margin remains ahead of last year despite a significant increase in investment spending on new growth initiatives and a substantial increase in acquisition-related amortization expense. General and administrative expenses were up 39% in the quarter, primarily due to increased costs associated with the December 2012 acquisitions. In the aggregate, share-based compensation and acquisition related amortization expense reduced earnings by $0.09 per share in the second quarter of 2013, compared to $0.08 per share in the second quarter of 2012.

Mr. Carr continued, “Heartland is ideally positioned to capitalize on the growth opportunities being created by the rapidly evolving payments market. To assure we can set the agenda for new payments technology and systems, we are developing new products, creating mutually beneficial partnerships, and making strategic investments. As a key differentiator, we are also strengthening our already dominant sales organization by adding new relationship managers, implementing new tools, such as our Atlas CRM application, and creating product specialists to both accelerate growth and increase sales productivity. Our non-card businesses are growing at even faster rates than our core card processing, while simultaneously increasing the number of multiple product merchants, which enhances the value of the overall Heartland relationship. With both the financial resources and management talent to undertake these broad growth initiatives, we are excited about our opportunity to create value for our shareholders by achieving our vision of shaping the future of electronic payments.”









Page 2




SIX MONTH RESULTS:
Adjusted net income from continuing operations and related earnings per share for the first half of fiscal 2013 were $42.5 million or $1.12 per share, respectively, compared to $36.5 million, or $0.90 per share, respectively, in the first half of fiscal 2012. Net revenue for the first half of 2013 was $297 million, up 15.1% compared to the first half of 2012. For the first six months of 2013, GAAP net income from continuing operations was $35.3 million or $0.93 per share, compared to $30.9 million, or $0.76 per share for the first half of 2012. Year-to-date 2013, share-based compensation and acquisition-related amortization expense have reduced net income by $7.2 million, or $0.19 per share, compared to $5.6 million, or $0.14 per share in the first half of 2012.

FULL YEAR 2013 GUIDANCE:
For full year 2013, we continue to expect Net Revenue to be between approximately $600 million and $610 million. Adjusted Earnings are expected to be between $2.29 and $2.33 per share, which is net of $0.37 per share of combined acquisition-related amortization and share-based compensation expense.

BOARD DECLARES QUARTERLY DIVIDEND; SHARE REPURCHASE PROGRAM UPDATE
The Company also announced that the Board of Directors declared a quarterly dividend of $0.07 per common share payable September 13, 2013 to shareholders of record on August 23, 2013. In the second quarter, the Company utilized almost $19 million in cash to repurchase approximately 601,000 shares at an average cost of $31.56 per share. At the end of the quarter, approximately $70.6 million remained outstanding on the Company's existing repurchase Authorization.

CONFERENCE CALL:
Heartland Payment Systems, Inc. will host a conference call on July 31, 2013 at 10:30 a.m. Eastern Time to discuss financial results and business highlights. Heartland Payment Systems invites all interested parties to listen to its conference call, broadcast through a webcast on the Company's website. To access the call, please visit the Investor Relations portion of the Company's website at: www.heartlandpaymentsystems.com. The conference call may be accessed by calling (888) 510-1765. Please provide the operator with PIN number 8632092. The webcast will be archived on the Company's website within two hours of the live call.

About Heartland Payment Systems
Heartland Payment Systems, Inc. (NYSE: HPY), the fifth largest payments processor in the United States, delivers credit/debit/prepaid card processing, mobile commerce, eCommerce, marketing solutions, security technology, payroll solutions, and related business solutions and services to more than 250,000 business and educational locations nationwide. A FORTUNE 1000 company, Heartland is the founding supporter of The Merchant Bill of Rights, a public advocacy initiative that educates merchants about fair credit and debit card processing practices.  Heartland also established The Sales Professional Bill of Rights to advocate for the rights of sales professionals everywhere. More detailed information can be found at HeartlandPaymentSystems.com, HeartlandPaymentSystems.com/Careers, Heartlandpaymentsystems.com/Blog or following the company on Twitter @HeartlandHPY and Facebook at facebook.com/HeartlandHPY.

Page 3





Forward-looking Statements

This press release contains statements of a forward-looking nature which represent our management's beliefs and assumptions concerning future events. Forward-looking statements involve risks, uncertainties and assumptions and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including risks and additional factors that are described in the Company's Securities and Exchange Commission filings, including but not limited to the Company's annual report on Form 10-K for the year ended December 31, 2012. We undertake no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.


Contact
Joe Hassett
Gregory FCA Communications
27 West Athens Ave.
Ardmore, PA 19003
Tel: 610-228-2110
Email: Heartland_ir@gregoryfca.com


TABLES FOLLOW








Page 4




Heartland Payment Systems, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(unaudited)
 
Three Months Ended
 June 30,
 
Six Months Ended
June 30,
 
2013
 
2012
 
2013
 
2012
Total revenues
$
546,624

 
$
515,218

 
$
1,047,863

 
$
982,794

Costs of services:
 
 
 
 
 
 
 
Interchange
345,233

 
330,742

 
652,305

 
628,690

Dues, assessments and fees
51,649

 
52,505

 
98,981

 
96,373

Processing and servicing
58,376

 
55,938

 
117,773

 
111,566

Customer acquisition costs
9,983

 
11,263

 
20,716

 
22,699

Depreciation and amortization
4,522

 
4,472

 
8,612

 
8,824

Total costs of services
469,763

 
454,920

 
898,387

 
868,152

General and administrative
43,531

 
31,309

 
89,371

 
62,858

Total expenses
513,294

 
486,229

 
987,758

 
931,010

Income from operations
33,330

 
28,989

 
60,105

 
51,784

Other income (expense):
 
 
 
 
 
 
 
Interest income
32

 
34

 
66

 
138

Interest expense
(1,269
)
 
(756
)
 
(2,503
)
 
(1,606
)
Provision for processing system intrusion costs
(33
)
 
(81
)
 
(239
)
 
(238
)
Other, net
(37
)
 
(4
)
 
79

 
(4
)
Total other expense
(1,307
)
 
(807
)
 
(2,597
)
 
(1,710
)
Income from continuing operations before income taxes
32,023

 
28,182

 
57,508

 
50,074

Provision for income taxes
12,342

 
10,782

 
22,182

 
19,148

Net income from continuing operations
19,681

 
17,400

 
35,326

 
30,926

Income from discontinued operations, net of income tax
of $—, $193, $2,135 and $326

 
562

 
3,970

 
888

Net income
19,681

 
17,962

 
39,296

 
31,814

Less: Net income attributable to noncontrolling interests

 
161

 
56

 
259

Net income attributable to Heartland
$
19,681

 
$
17,801

 
$
39,240

 
$
31,555

 
 
 
 
 
 
 
 
Amounts Attributable to Heartland:
 
 
 
 
 
 
 
Net income from continuing operations
$
19,681

 
$
17,400

 
$
35,326

 
$
30,926

Income from discontinued operations, net of income tax
and non-controlling interests

 
401

 
3,914

 
629

Net income attributable to Heartland
$
19,681

 
$
17,801

 
$
39,240

 
$
31,555

 
 
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
 
 
      Income from continuing operations
$
0.54

 
$
0.45

 
$
0.96

 
$
0.80

      Income from discontinued operations

 
0.01

 
0.11

 
0.01

      Basic earnings per share
$
0.54

 
$
0.46

 
$
1.07

 
$
0.81

 
 
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
 
      Income from continuing operations
$
0.53

 
$
0.43

 
$
0.93

 
$
0.76

      Income from discontinued operations

 
0.01

 
0.10

 
0.02

      Diluted earnings per share
$
0.53

 
$
0.44

 
$
1.03

 
$
0.78

 
 
 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
Basic
36,153

 
38,844

 
36,698

 
38,840

Diluted
37,439

 
40,448

 
38,108

 
40,504


Page 5




Heartland Payment Systems, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(In thousands)
(unaudited)


 
Three Months Ended
June 30,
 
Six Months Ended
June 30
 
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
Net income
$
19,681

 
$
17,962

 
$
39,296

 
$
31,814

Other comprehensive income (loss):
 
 
 
 
 
 
 
Unrealized gains on investments,
net of income tax of $—, $2, $4 and $10
1

 
4

 
4

 
15

Unrealized gains (losses) on derivative financial instruments,
net of tax of $53, ($1), $96 and ($8)
83

 
(3
)
 
163

 
(9
)
Foreign currency translation adjustment

 
(267
)
 
(54
)
 
(36
)
Comprehensive income
19,765

 
17,696

 
39,409

 
31,784

Less: Comprehensive income attributable to noncontrolling interests

 
81

 
40

 
248

Comprehensive income attributable to Heartland
$
19,765

 
$
17,615

 
$
39,369

 
$
31,536



Page 6




Heartland Payment Systems, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share data)
(unaudited)
 
June 30,
2013
 
December 31,
2012
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
48,750

 
$
48,440

Funds held for customers
110,316

 
131,405

Receivables, net
237,379

 
180,448

Investments
1,260

 
1,199

Inventory
9,907

 
9,694

Prepaid expenses
12,669

 
10,421

Current tax assets
9,563

 

Current deferred tax assets, net
11,509

 
10,475

Assets held for sale

 
17,044

Total current assets
441,353

 
409,126

Capitalized customer acquisition costs, net
56,148

 
56,425

Property and equipment, net
133,746

 
125,031

Goodwill
170,553

 
168,062

Intangible assets, net
46,656

 
53,594

Deposits and other assets, net
793

 
1,176

Total assets
$
849,249

 
$
813,414

 
 
 
 
Liabilities and Equity
 
 
 
Current liabilities:
 
 
 
Due to sponsor banks
$
681

 
$
37,586

Accounts payable
70,727

 
64,065

Customer fund deposits
110,316

 
131,405

Processing liabilities
178,794

 
95,273

Current portion of borrowings
111,000

 
102,001

Current portion of accrued buyout liability
12,427

 
10,478

Accrued expenses and other liabilities
36,845

 
47,817

Current tax liabilities

 
4,323

Liabilities related to assets held for sale

 
1,672

Total current liabilities
520,790

 
494,620

Deferred tax liabilities, net
37,063

 
29,632

Reserve for unrecognized tax benefits
3,818

 
3,069

Long-term portion of borrowings
40,000

 
50,000

Long-term portion of accrued buyout liability
20,892

 
24,932

Total liabilities
622,563

 
602,253

Commitments and contingencies

 

 
 
 
 
Equity
 
 
 
Common stock, $0.001 par value, 100,000,000 shares authorized, 36,910,213
and 37,571,708 shares issued at June 30, 2013 and December 31, 2012; 36,770,413
and 36,855,908 outstanding at June 30, 2013 and December 31, 2012
37

 
38

Additional paid-in capital
229,496

 
222,705

Accumulated other comprehensive loss
(187
)
 
(399
)
Retained earnings
1,744

 
7,629

Treasury stock, at cost (139,800 and 715,800 shares at June 30, 2013 and December 31, 2012)
(4,404
)
 
(20,187
)
Total stockholders’ equity
226,686

 
209,786

Noncontrolling interests

 
1,375

Total equity
226,686

 
211,161

Total liabilities and equity
$
849,249

 
$
813,414

        

Page 7





Heartland Payment Systems, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(unaudited) 
 
Six Months Ended June 30,
 
2013
 
2012
Cash flows from operating activities
 
 
 
Net income
$
39,296

 
$
31,814

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Amortization of capitalized customer acquisition costs
22,478

 
22,509

Other depreciation and amortization
16,268

 
14,714

Addition to loss reserves
1,282

 
1,195

(Recovery) provision for doubtful receivables
(187
)
 
390

Deferred taxes
5,447

 
4,522

Share-based compensation
7,138

 
6,901

Gain on sale of business
(3,786
)
 

Other
133

 
29

Changes in operating assets and liabilities:
 
 
 
Increase in receivables
(56,662
)
 
(2,324
)
(Increase) decrease in inventory
(272
)
 
383

Payment of signing bonuses, net
(12,080
)
 
(15,461
)
Increase in capitalized customer acquisition costs
(10,121
)
 
(8,257
)
(Increase) decrease in prepaid expenses
(2,085
)
 
886

Increase in current tax assets
(7,336
)
 
(945
)
Increase in deposits and other assets
(692
)
 
(53
)
Excess tax benefits on employee share-based compensation
(6,536
)
 
(4,556
)
Increase in reserve for unrecognized tax benefits
748

 
371

Decrease in due to sponsor banks
(36,904
)
 
(9,430
)
Increase in accounts payable
6,494

 
9,035

Decrease in accrued expenses and other liabilities
(14,026
)
 
(11,457
)
Increase in processing liabilities
82,188

 
5,263

Payouts of accrued buyout liability
(10,450
)
 
(6,655
)
Increase in accrued buyout liability
8,359

 
8,447

Net cash provided by operating activities
28,694

 
47,321

Cash flows from investing activities
 
 
 
Purchase of investments
(1,224
)
 
(1,865
)
Maturities of investments
816

 
676

Decrease (increase) in funds held for customers
21,096

 
(6,323
)
(Decrease) increase in customer fund deposits
(21,089
)
 
6,348

Proceeds from sale of business
19,343

 

Acquisitions of businesses, net of cash acquired

 
(23,682
)
Purchases of property and equipment
(23,445
)
 
(16,420
)
Net cash used in investing activities
(4,503
)
 
(41,266
)
Cash flows from financing activities
 
 
 
Proceeds from borrowings
9,000

 
26,000

Principal payments on borrowings
(10,000
)
 
(7,502
)
Proceeds from exercise of stock options
7,809

 
11,840

Excess tax benefits on employee share-based compensation
6,536

 
4,556

Repurchases of common stock
(34,217
)
 
(33,586
)
Dividends paid on common stock
(5,151
)
 
(4,680
)
Net cash used in financing activities
(26,023
)
 
(3,372
)
 
 
 
 
Net (decrease) increase in cash
(1,832
)
 
2,683

Effect of exchange rates on cash
1

 
(33
)
Cash at beginning of year
50,581

 
40,301

Cash at end of period
$
48,750

 
$
42,951


Page 8




Reconciliation of Non-GAAP Financial Measures And Regulation G Disclosure

To supplement its consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company provides additional measures of its operating results on a continuing operations basis, namely income from operations, operating margin, net income and earnings per share, which exclude acquisition-related amortization expense and share-based compensation expense. These measures meet the definition of a non-GAAP financial measure. The Company believes that application of these non-GAAP financial measures is appropriate to enhance understanding of its historical performance as well as prospects for its future performance.

Use and Economic Substance of the Non-GAAP Financial Measures - Management uses these non-GAAP measures to evaluate performance period over period, to analyze the underlying trends in the Company's business, to assess its ongoing operating performance relative to its competitors, and to establish operational goals and forecasts. Acquisition-related amortization expense and share-based compensation expense are excluded as non-cash expenses that the Company does not believe are reflective of ongoing operating results of existing and acquired businesses. Additionally, share-based compensation expense is an amount excluded from calculations of earnings per share used in measuring achievement of performance targets required for vesting certain performance-based share awards.

The following is an explanation of the adjustments that management excluded as part of its non-GAAP measures for the three and six months ended June 30, 2013 and 2012:

Acquisition-related Amortization Expense - This expense consists of the amortization of intangible assets such as customer relationships, software, non-compete agreements and merchant portfolios acquired through business combinations. The Company excludes acquisition-related amortization expense from its non-GAAP measures of income from operations, operating margin, net income and earnings per share primarily because:
Acquisition-related amortization expense is non-cash expense that the Company does not believe is reflective of its ongoing operating results, or contributions from its acquired businesses; and
The Company's acquisition activity has increased significantly in recent years, with the result that acquisition-related amortization expense will become more significant.
Share-based Compensation Expense - These expenses consist of costs related to the stock options, restricted stock units, and performance share units, which the Company has granted its employees. The Company excludes share-based compensation expense from its non-GAAP measures of income from operations, operating margin, net income and earnings per share primarily because:
Share-based compensation expense is non-cash expense that the Company does not believe is reflective of ongoing operating results;
Share-based compensation expense is excluded from calculations of earnings per share used in measuring its achievement of certain performance targets required for vesting performance-based awards; and
The Company's use of performance-based share awards has increased significantly in recent years, with the result that reported share-based compensation expense can vary significantly from year to year, or quarter to quarter, in ways that may not be related to the underlying operating performance of the Company.
Material Limitations Associated with the Use of Non-GAAP Financial Measures - Non-GAAP income from operations, operating margin, net income and earnings per share that exclude the impact of acquisition-related amortization expense and share-based compensation expense may have limitations as analytical tools, and these non-GAAP measures should not be considered in isolation from or as a replacement for GAAP financial measures, and should be considered only as supplemental to the Company's GAAP financial measures. Some of the limitations associated with the use of these non-GAAP financial measures are:
Acquisition-related amortization expense and share-based compensation expense that are excluded from non-GAAP income from operations, operating margin, net income and non-GAAP earnings per share can have a material impact on GAAP net income and GAAP earnings per share.
Other companies may calculate non-GAAP income from operations, operating margin, net income and non-GAAP earnings per share that exclude the impact of similar expenses differently than the Company does, limiting the usefulness of those measures for comparative purposes.
Usefulness of Non-GAAP Financial Measures to Investors - The Company believes that presenting non-GAAP income from operations, operating margin, net income and non-GAAP earnings per share that exclude the impact of acquisition-

Page 9



related amortization expense and, share-based compensation expense in addition to the related GAAP measures provides investors greater transparency to the information used by the Company's management for its financial and operational decision-making and allows investors to see the Company's results through the eyes of management. Additionally, the Company believes that the inclusion of these non-GAAP financial measures provides enhanced comparability in its financial reporting. The Company further believes that providing this information better enables its investors to understand the Company's operating performance and underlying business fundamentals, and to evaluate the methodology used by management to evaluate and measure such performance.

This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Pursuant to Regulation G, a reconciliation of these non-GAAP financial measures with the comparable financial measures calculated in accordance with GAAP for the three and six months ended June 30, 2013 and 2012 follows (in thousands except per share data):
Three Months Ended June 30, 2013
GAAP
 
Acquisition-
related
Amortization
 
Share-based
Compensation
 
Adjusted
Non-GAAP
Income from Operations
$
33,330

 
$
2,254

 
$
3,272

 
$
38,856

Operating Margin (a)
22.3
%
 
 
 
 
 
25.9
%
Net Income From Continuing Operations
$
19,681

 
$
1,385

 
$
2,011

 
$
23,077

Diluted Earnings Per Share From Continuing Operations
$
0.53

 
$
0.04

 
$
0.05

 
$
0.62

Diluted Shares Used in Computing Earnings Per Share
      From Continuing Operations
37,439

 
 
 
 
 
37,439

Three Months Ended June 30, 2012
GAAP
 
Acquisition-
related
Amortization
 
Share-based
Compensation
 
Adjusted
Non-GAAP
Income from Operations
$
28,989

 
$
1,088

 
$
3,967

 
$
34,044

Operating Margin (a)
22.0
%
 
 
 
 
 
25.8
%
Net Income From Continuing Operations
$
17,400

 
$
672

 
$
2,449

 
$
20,521

Diluted Earnings Per Share From Continuing Operations
$
0.43

 
$
0.02

 
$
0.06

 
$
0.51

Diluted Shares Used in Computing Earnings Per Share
      From Continuing Operations
40,448

 
 
 
 
 
40,448

Six Months Ended June 30, 2013
GAAP
 
Acquisition-
related
Amortization
 
Share-based
Compensation
 
Adjusted
Non-GAAP
Income from Operations
$
60,105

 
$
4,531

 
$
7,138

 
$
71,774

Operating Margin (a)
20.3
%
 
 
 
 
 
24.2
%
Net Income From Continuing Operations
$
35,326

 
$
2,783

 
$
4,384

 
$
42,493

Diluted Earnings Per Share From Continuing Operations
$
0.93

 
$
0.07

 
$
0.12

 
$
1.12

Diluted Shares Used in Computing Earnings Per Share
      From Continuing Operations
38,108

 
 
 
 
 
38,108

Six Months Ended June 30, 2012
GAAP
 
Acquisition-
related
Amortization
 
Share-based
Compensation
 
Adjusted
Non-GAAP
Income from Operations
$
51,784

 
$
2,185

 
$
6,901

 
$
60,870

Operating Margin (a)
20.1
%
 
 
 
 
 
23.6
%
Net Income From Continuing Operations
$
30,926

 
$
1,350

 
$
4,262

 
$
36,538

Diluted Earnings Per Share From Continuing Operations
$
0.76

 
$
0.03

 
$
0.11

 
$
0.90

Diluted Shares Used in Computing Earnings Per Share
      From Continuing Operations
40,504

 
 
 
 
 
40,504

 
 
 
 
 
 
 
 
(a) Operating Margin is measured as Income from Operations divided by Net Revenue. Net Revenue is defined as total revenues less
      interchange fees and dues, assessments and fees.


Page 10