Segment Information

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

During the periods presented, the Company operated its business in the segments described below. As a result of the acquisition of PayGroup discussed in Note 14, the Chief Operating Decision Maker (“CODM”) is evaluating the current structure of the Company and the information that he regularly reviews for purposes of allocating resources and assessing performance. The Company’s reportable segments will be re-evaluated for any changes that occur as a result of the acquisition.

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 CODM reviews their individual 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 June 30, 2017
Revenues	$	23,506	$	39,476	$	49,312	$	(8,783	)	(1)	$	103,511
Income from operations	7,192		16,566		13,521		(7,285		)	(2)	29,994
Three months ended June 30, 2016
Revenues	$	23,277	$	36,289	$	46,238	$	(8,132	)	(1)	$	97,672
Income from operations	8,786		14,276		15,126		(9,996		)	(2)	28,192

(Dollar amounts in thousands)	Merchant Acquiring, net		Payment Processing		Business Solutions		Other				Total
Six months ended June 30, 2017
Revenues	$	45,991	$	78,209	$	97,991	$	(17,400	)	(1)	$	204,791
Income from operations	14,100		33,799		27,172		(14,485		)	(2)	60,586
Six months ended June 30, 2016
Revenues	$	46,167	$	70,828	$	91,852	$	(15,696	)	(1)	$	193,151
Income from operations	17,212		26,690		28,369		(17,513		)	(2)	54,758

(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 six months ended June 30, 2017 and 2016 is as follows:

	Three months ended June 30,						Six months ended June 30,
(Dollar amounts in thousands)	2017			2016			2017			2016
Segment income from operations
Merchant Acquiring	$	7,192		$	8,786		$	14,100		$	17,212
Payment Processing	16,566			14,276			33,799			26,690
Business Solutions	13,521			15,126			27,172			28,369
Total segment income from operations	37,279			38,188			75,071			72,271
Merger related depreciation and amortization and other unallocated expenses (1)	(7,285		)	(9,996		)	(14,485		)	(17,513		)
Income from operations	29,994			28,192			60,586			54,758
Interest expense, net	(7,190		)	(6,046		)	(14,041		)	(11,837		)
Earnings (losses) of equity method investment	115			29			258			(101		)
Other income	1,363			860			2,637			1,258
Income tax expense	(4,068		)	(2,801		)	(6,088		)	(4,677		)
Net income	$	20,214		$	20,234		$	43,352		$	39,401

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