Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

Note 12 – Segment Information

The Company operates in three business segments: Merchant Acquiring, Payment Processing and Business Solutions.

The Company’s business segments are organized based on the nature of products and services. The Chief Operating Decision Maker (“CODM”) reviews the individual segment financial information to assess performance and to allocate resources.

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 September 30, 2015
Revenues		20,784		34,298		44,492		(6,796	) (1)		92,778
Income from operations		8,517		12,777		10,308		(11,007	) (2)		20,595
Three months ended September 30, 2014
Revenues		19,227		32,492		43,805		(6,645	) (1)		88,879
Income from operations		8,518		14,707		12,696		(9,461	) (2)		26,460

⁽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
Nine months ended September 30, 2015
Revenues		62,041		101,101		134,672		(20,463	) (1)		277,351
Income from operations		27,411		40,828		37,841		(30,855	) (2)		75,225
Nine months ended September 30, 2014
Revenues		58,345		97,587		131,609		(19,896	) (1)		267,645
Income from operations		25,700		44,738		36,232		(29,892	) (2)		76,778

⁽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 reconciliation of income from operations to consolidated net income for the three and nine months ended September 30, 2015 and 2014 is as follows:

	Three months ended September 30,						Nine months ended September 30,
(Dollar amounts in thousands)	2015			2014			2015			2014
Segment income from operations
Merchant Acquiring, net	$	8,517		$	8,518		$	27,411		$	25,700
Payment Processing		12,777			14,707			40,828			44,738
Business Solutions		10,308			12,696			37,841			36,232
Total segment income from operations		31,602			35,921			106,080			106,670
Merger related depreciation and amortization and other unallocated expenses(1)		(11,007	)		(9,461	)		(30,855	)		(29,892	)
Income from operations		20,595			26,460			75,225			76,778
Interest expense, net		(5,863	)		(6,279	)		(18,043	)		(19,535	)
(Losses) earnings of equity method investment		(3	)		241			196			905
Other income (expenses)		381			(249	)		1,430			2,127
Income tax expense		(1,687	)		(1,082	)		(6,053	)		(5,205	)
Net income	$	13,423		$	19,091		$	52,755		$	55,070

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