Global Payments Inc. (NYSE:GPN) Q4 2018 Earnings Conference Call Transcript

Feb 13, 2019 • 08:00 am ET

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Global Payments Inc. (NYSE:GPN) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to Global Payments' 2018 Fourth Quarter and Year-end Earnings Conference Call. (Operator Instructions) And as a reminder today's conference will be recorded. At this time, I would like to turn the conference over to your host, Vice President-Investor Relations, Winnie Smith. Please go ahead.

Executive
Winnie Smith

Good morning and welcome to Global Payments' Fourth Quarter and Fiscal Year 2018 Conference Call. Before we begin, I'd like to remind you that some of the comments made by management during today's conference call contain forward-looking statements which are subject to risks and uncertainties discussed in our SEC filings, including our most recent 10-K and any subsequent filings. These risks and uncertainties could cause actual results to differ materially. We caution you not to place undue reliance on these statements. Forward-looking statements during this call speak only as of the date of this call and we undertake no obligation to update them.

Some of the comments made refer to non-GAAP measures such as adjusted net revenue, adjusted net revenue plus network fees, adjusted operating margins and adjusted earnings per share, which we believe are more reflective of our ongoing performance. For a full reconciliation of these and other non-GAAP financial measures to the most comparable GAAP measure in accordance with SEC regulations, please see our press release furnished as an exhibit to our Form 8-K filed this morning and our trended financial highlights both of which are available in the Investor Relations area of our website at www.globalpaymentsinc.com.

Joining me on the call are Jeff Sloan, CEO; and Cameron Bready, Senior Executive Vice President and CFO. Now, I'll turn the call over to Jeff.

Executive
Jeffrey S. Sloan

Thanks Winnie. 2018 was an outstanding year for Global Payments strategically, operationally, and financially. We generated the highest adjusted net revenues plus network fees, adjusted operating margins, and adjusted earnings per share in our company's history. We also continued to execute on our technology-enabled software-driven payment strategy further widening our competitive moat.

In addition, we delivered double-digit organic constant-currency growth and strong margin expansion across all markets each quarter, while also producing the fastest rate of earnings per share growth for the year that we have yet achieved. These results exceeded the raised cycle targets we outlined at our investor conference last March as well as the initial 2018 guidance we provided at this time last year. Further, we are especially pleased that we were able to build upon the success of our 2017 results which had set a record for our performance at that time.

We have a consistent track record of delivering on our commitments and 2018 was no exception. Turning to the fourth quarter specifically, we maintained a strong top line momentum we experienced all year, again delivering double-digit constant-currency organic growth. Notably, we witnessed peak holiday transactional volume during the quarter led by our U.S. direct and e-commerce and omnichannel businesses. We also expanded adjusted operating margin by 80 basis points and produced adjusted earnings per share growth