Segment Information (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2013

Dec. 31, 2012

Information about Operations by Business Segments

The following tables set forth information about the Company’s operations by its three business segments for the periods indicated:


(Dollar amounts in thousands)	Merchant acquiring, net		Payment processing		Business solutions		Other			Total
Three months ended June 30, 2013
Revenues		18,165		30,603		46,725		(6,318	)⁽¹⁾		89,175
Income from operations		8,161		11,719		8,784		(11,726	)⁽²⁾		16,938
Three months ended June 30, 2012
Revenues		17,028		29,019		43,541		(5,216	)⁽¹⁾		84,372
Income from operations		7,970		12,756		8,870		(11,362	)⁽²⁾		18,234

(1)	Represents the elimination of intersegment revenues for services provided by the payment processing segment to the merchant acquiring segment, and other miscellaneous intersegment revenues.

(2)	Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.


(Dollar amounts in thousands)	Merchant acquiring, net		Payment processing		Business solutions		Other			Total
Six months ended June 30, 2013
Revenues		35,624		59,826		92,493		(11,429	)⁽¹⁾		176,514
Income from operations		17,395		25,270		19,318		(24,646	)⁽²⁾		37,337
Six months ended June 30, 2012
Revenues		34,689		57,248		85,469		(10,546	)⁽¹⁾		166,860
Income from operations		16,511		25,065		17,950		(23,454	)⁽²⁾		36,072

(1)	Represents the elimination of intersegment revenues for services provided by the payment processing segment to the merchant acquiring segment, and other miscellaneous intersegment revenues.

(2)	Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.

The following tables set forth information about the Company’s operations by its three business segments for the periods indicated:


(Dollar amounts in thousands)	Merchant acquiring, net		Payment processing		Business solutions		Other			Total
Year ended December 31, 2012
Revenues	$	69,591	$	116,019	$	177,292	$	(21,218	)⁽¹⁾	$	341,684
Income from operations		33,836		53,682		39,845		(47,717	)⁽²⁾		79,646
Year ended December 31, 2011
Revenues		61,997		105,184		173,434		(19,493	)⁽¹⁾		321,122
Income from operations		30,258		45,031		36,690		(49,464	)⁽²⁾		62,515

(1)	Represents the elimination of intersegment revenues for services provided by the payment processing segment to the merchant acquiring segment, and other miscellaneous intersegment revenues.

(2)	Represents certain incremental depreciation and amortization expenses generated as a result of the Merger non-recurring compensation and benefits expenses and professional fees.

Reconciliation of Income from Operations to Consolidated and Combined Net Income

The reconciliation of income from operations to consolidated net income for the three and six months ended June 30, 2013 and 2012 is as follows:


	Three months ended June 30,						Six months ended June 30,
(Dollar amounts in thousands)	2013			2012			2013			2012
Segment income from operations
Merchant acquiring	$	8,161		$	7,970		$	17,395		$	16,511
Payment processing		11,719			12,756			25,270			25,065
Business solutions		8,784			8,870			19,318			17,950

Total segment income from operations		28,664			29,596			61,983			59,526
Merger related depreciation and amortization and other unallocated expenses⁽¹⁾		(11,726	)		(11,362	)		(24,646	)		(23,454	)

Income from operations	$	16,938		$	18,234		$	37,337		$	36,072

Interest expense, net		(9,698	)		(13,177	)		(24,918	)		(24,231	)
Earnings of equity method investment		348			509			625			575
Other expenses		(77,535	)		(8,397	)		(77,468	)		(10,657	)
Income tax benefit (expense)		5,012			798			4,961			(258	)

Net (loss) income	$	(64,935	)	$	(2,033	)	$	(59,463	)	$	1,501

(1)	Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.

The reconciliation of income from operations to consolidated net income is as follows:


	Years ended December 31,
(Dollar amounts in thousands)	2012			2011
Segment income from operations
Merchant acquiring	$	33,836		$	30,258
Payment processing		53,682			45,031
Business solutions		39,845			36,690

Total segment income from operations		127,363			111,979
Merger related depreciation and amortization and other unallocated expenses⁽¹⁾		(47,717	)		(49,464	)

Income from operations	$	79,646		$	62,515

Interest expense, net		(54,011	)		(50,160	)
Earnings of equity method investment		564			833
Other expenses		(8,491	)		(18,201	)
Income tax benefit		59,658			29,227

Net income	$	77,366		$	24,214

(1)	Represents certain incremental depreciation and amortization expenses generated as a result of the Merger non-recurring compensation and benefits expenses and professional fees.

Geographic Segment Information Based on Geographic Location of Subsidiaries

The geographic segment information below is classified based on the geographic location of the Company’s subsidiaries:


	Years ended December 31,
(Dollar amounts in thousands)	2012		2011
Revenues⁽¹⁾
Puerto Rico	$	294,479	$	281,392
Caribbean		16,280		13,051
Latin America		30,925		26,679

Total revenues	$	341,684	$	321,122

(1)	Revenues are based on subsidiaries’ country of domicile.

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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