SAN JOSE, Calif.--(BUSINESS WIRE)--VeriFone Systems, Inc. (NYSE: PAY), the global leader in secure electronic payment solutions, today announced financial results for the three months (“Q4 FY12”) and fiscal year ended October 31, 2012.
Non-GAAP net income per diluted share for Q4 FY12 was $0.76, compared to $0.75 in the prior quarter and $0.53 for the three months ended October 31, 2011 (“Q4 FY11”), a 43% year-over-year increase. Non-GAAP net income per diluted share for the full year ended October 31, 2012 (“FY12”) was $2.74, a 43% year-over-year increase over the $1.92 figure for the full year ended October 31, 2011 (“FY11”). GAAP net income per diluted share for the latest quarter was $0.24, compared to $0.34 in the prior quarter and $1.84 in Q4 FY11. GAAP net income per diluted share was $0.59 for FY12 and $2.92 for FY11.
Non-GAAP net revenues for Q4 FY12 were $489 million, compared to $493 million in the previous quarter and $416 million for Q4 FY11, an 18% year-over-year increase. Non-GAAP net revenues for FY12 were $1.886 billion, a 44% increase over the $1.310 billion result for FY11. GAAP net revenues were $485 million for the latest quarter, $489 million for the prior quarter and $411 million for Q4 FY11. For FY12, GAAP net revenues totaled $1.866 billion, a 43% increase over the $1.304 billion total for FY11.
In Q4 FY12, Organic non-GAAP net revenues, which exclude net revenues from businesses acquired in the past 12 months, increased 4% from the year-ago quarter and 8% at constant currency, which assumes currency exchange rates remained the same from a year ago. North America Organic non-GAAP net revenues grew 22% both unadjusted and at constant currency, while international Organic non-GAAP net revenues declined 3% from the year-ago quarter but increased 2% at constant currency. Organic non-GAAP net revenues increased 11% in FY12 compared to FY11 and 14% at constant currency. For FY12, North America Organic non-GAAP net revenues grew 4% from FY11 both unadjusted and at constant currency, while international Organic non-GAAP net revenues grew 15% from FY11 and 20% at constant currency.
Non-GAAP gross margins were 44% for Q4 FY12, compared to 45% in the prior quarter and 40% in Q4 FY11. Non-GAAP gross margins were 44% for FY12 and 42% for FY11. GAAP gross margins were 41% for the latest quarter, 42% for the prior quarter and 31% for Q4 FY11. GAAP gross margins were 41% for FY12, compared to 38% for FY11.
Net cash provided by operating activities was $73 million in Q4 FY12 as the total cash balance grew by $44 million in the quarter.
“We are very pleased with our earnings leverage in 2012, with non-GAAP earnings per share growing over 40% for the third consecutive year,” said Douglas G. Bergeron, Chief Executive Officer. “Our investments in the next generation of payment services and systems are paying off in North America, which grew organically by 22% in Q4. Our plans for 2013 are to replicate these investments in our international markets in order to enjoy accelerated international growth later in 2013 and into 2014.”
Highlights Since Last Earnings Release
VeriFone has announced several significant in-store mobility wins in recent months. On November 7, VeriFone announced that it has entered a partnership agreement to offer retailers sophisticated mobile retailing solutions powered by VeriFone GlobalBay and integrated with the Fujitsu GlobalSTORE® solution, or as a standalone mobile point of sale. The co-branded solutions provide Fujitsu retail customers with a sophisticated mobile POS, enabling them to serve consumers from anywhere in the store and include acceptance of digital wallets and alternative payments. On September 25, VeriFone announced that The Finish Line, Inc., is enhancing the consumer buying experience with the deployment of VeriFone’s latest mobile checkout and multimedia-driven countertop payment solutions. Following a successful trial, the premium retailer of athletic shoes, apparel and accessories is in the process of deploying VeriFone systems – including 1,600 countertop multimedia MX 915 systems and 3,200 PAYware Mobile Enterprise secure mobile card acceptance devices for the iPod touch® – chain-wide with the goal of equipping all 638 locations for the holiday buying season. On September 19, VeriFone announced that Oracle’s Retail Mobile Point-of-Service was developed using the PAYware Mobile Enterprise solution and software development kit. PAYware Mobile Enterprise provided Oracle with support for the most forms of payment acceptance – including regular magnetic stripe credit and debit cards, chip-and-PIN (EMV) and contactless/NFC-enabled cards and phones – and also includes a barcode scanner for product-scanning, couponing and inventory.
VeriFone is also moving forward with its gas station media business. VeriFone’s media-enabled payment systems and services provide a state-of-the-art solution for secure payments, targeted advertising, coupons and special offers, and delivering real-time, relevant information such as weather and safety warnings. PAYMEDIA content is managed by VeriFone Media and broadcast via the VeriFone Digital Network (VNET). On October 8, VeriFone announced an agreement with Valero Retail Holdings, Inc. to implement PAYMEDIA for Secure PumpPAY in an initial pilot at corporate-operated sites in the Austin, Texas area. Secure PumpPAY solutions enable gasoline retailers and distributors to retrofit gasoline dispensers with EMV-capable, PCI-compliant payment systems that meet the latest payment security standards. The VeriFone modules incorporate full-color digital display and audio that improves the fueling experience. On October 1, VNET unveiled the next evolution of media at gas stations, providing advertisers and marketers with new promotional capabilities including on-demand coupons at the pump and transaction-specific promotions at the convenience store checkout counter. After a successful 12-month pilot, where coupon redemption rates in excess of 10% far exceeded industry norms for freestanding inserts, VeriFone is rolling out couponing to its PAYMEDIA customers.
Guidance for First Quarter 2013 and Fiscal Year 2013
For the first fiscal quarter ending January 31, 2013, VeriFone expects to report total non-GAAP net revenues in the range of $490 million to $500 million and non-GAAP net income per diluted share in the range of $0.70 to $0.73.
For the full year of fiscal 2013, the company continues to expect to report total non-GAAP net revenues in the range of $2.05 billion to $2.10 billion and non-GAAP net income per diluted share in the range of $3.25 to $3.30. Free cash flow, defined as cash flow from operations as presented under GAAP less capital expenditures, is expected in the range of $285 million to $315 million.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations or beliefs and on currently available competitive, financial and economic data and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the forward-looking statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, and other risks and uncertainties affecting the operation of the business of VeriFone Systems, Inc. These risks and uncertainties include, but are not limited to: our assumptions, judgments and estimates regarding the impact on our business of the continued uncertainty in the global economic environment and financial markets, our ability to identify and complete acquisitions and strategic investments and successfully integrate them into our business, whether the expected benefits of our business initiatives are achieved, our ability to protect against fraud, the status of our relationship with and condition of third parties such as our contract manufacturers, distributors and key suppliers upon whom we rely in the conduct of our business, our dependence on a limited number of customers, risks and uncertainties related to the conduct of our business and operations internationally, our ability to effectively hedge our exposure to foreign currency exchange rate fluctuations, our dependence on a limited number of key employees, short product cycles, rapidly changing technologies and maintaining competitive leadership position with respect to our payment solution offerings. The forward-looking statements in this press release do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof. For a further list and description of the risks and uncertainties affecting the operations of our business, see our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. VeriFone is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.
About VeriFone Systems, Inc. (www.verifone.com)
VeriFone Systems, Inc. (“VeriFone”) (NYSE: PAY) is the global leader in secure electronic payment solutions. VeriFone provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer-facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets. VeriFone solutions are designed to meet the needs of merchants, processors and acquirers in developed and emerging economies worldwide.
Additional Resources:
FINANCIAL MEASURES
This press release and its attachments include several non-GAAP financial measures, including non-GAAP net revenues; net revenues from businesses acquired in the past 12 months; organic non-GAAP net revenues; North America organic non-GAAP net revenues; international organic non-GAAP net revenues; organic non-GAAP net revenues at constant currency; non-GAAP cost of net revenues; non-GAAP gross margin; non-GAAP research and development expense; non-GAAP sales and marketing expense; non-GAAP general and administrative expense; non-GAAP operating expenses; non-GAAP operating income; non-GAAP interest expense; non-GAAP interest income; non-GAAP other income (expense); non-GAAP income before income taxes; non-GAAP provision for income taxes; non-GAAP income tax rate; non-GAAP consolidated net income; non-GAAP net income attributable to noncontrolling interests; non-GAAP net income attributable to VeriFone Systems, Inc. stockholders; non-GAAP diluted shares; non-GAAP net income per share; non-GAAP net income per diluted share, as well as some of these non-GAAP financial measures as a percentage of non-GAAP net revenues. In order to assist investors, this press release provides consolidated statement of operations information on a non-GAAP basis, reflecting the adjustments made in the non-GAAP measures listed above.
Reconciliations for the non-GAAP financial measures presented in this press release to the most directly comparable GAAP measures are provided at the end of this press release.
Management uses non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP. Management believes that these non-GAAP financial measures help it to evaluate VeriFone's performance and operations and to compare VeriFone's current results with those for prior periods as well as with the results of peer companies. VeriFone incurs, due to differences in debt, capital structure and investment history, certain income and expense items, such as stock based compensation, amortization of acquired intangibles and other non-cash expenses, that differ significantly from VeriFone's competitors. The non-GAAP financial measures reflect VeriFone's reported operating performance without such items. Management also uses these non-GAAP financial measures in VeriFone's budget and planning process. Management believes that the presentation of these non-GAAP financial measures is useful to investors in comparing VeriFone's operating performance in any period with its performance in other periods and with the performance of other companies that represent alternative investment opportunities. These non-GAAP financial measures contain limitations and should be considered as a supplement to, and not as a substitute for, or superior to, disclosures made in accordance with GAAP.
These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and may therefore differ from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures do not reflect all amounts and costs, such as acquisition related costs, employee stock-based compensation costs, cash that may be expended for future capital expenditures or contractual commitments, working capital needs, cash used to service interest or principal payments on VeriFone's debt, income taxes and the related cash requirements, and restructuring charges, associated with VeriFone's results of operations as determined in accordance with GAAP.
Furthermore, VeriFone expects to continue to incur income and expense items that are similar to those that are excluded by the non-GAAP adjustments described herein. Management compensates for these limitations by also relying on the comparable GAAP financial measures.
Note A: Non-GAAP net revenues. Non-GAAP net revenues exclude the fair value decrease (step-down) in deferred revenue at acquisition. Although the step-down of deferred revenue fair value at acquisition is reflected in our GAAP financial statements, it results in net revenues immediately post-acquisition that are lower than net revenues that would be recognized in accordance with GAAP on those same services if they were sold under contracts entered into post-acquisition. We adjust the step-down to achieve comparability to net revenues of the acquired entity earned pre-acquisition and to our GAAP net revenues to be earned on contracts sold in future periods. These non-GAAP net revenues and non-GAAP cost of net revenues amounts are not intended to be a substitute for our GAAP disclosures of net revenues and cost of net revenues, and should be read together with our GAAP disclosures.
Note B: Organic non-GAAP net revenues. "Organic non-GAAP net revenues" is a non-GAAP financial measure of net revenues excluding "net revenues from businesses acquired in the past 12 months" (as defined below). VeriFone determines organic non-GAAP net revenues by deducting net revenues from businesses acquired in the past 12 months from non-GAAP net revenues. Where Organic non-GAAP net revenues is presented for a period longer than one fiscal quarter, it is computed as the sum of the Organic non-GAAP net revenues for each quarter during that period. This non-GAAP measure is used to evaluate VeriFone net revenues without the impact of net revenues from acquired businesses, as VeriFone analyzes performance both with and without the impact of our recent acquisitions.
Net revenues from businesses acquired in the past 12 months consists of net revenues derived from the sales channels of acquired resellers and distributors, and net revenues from system solutions and services attributable to businesses acquired in the 12 months preceding the respective financial quarter(s). For acquisitions of small businesses that are integrated within a relatively short time after the close of the acquisition, we assume quarterly net revenues attributable to such acquired businesses during the 12 months following acquisition remain at the same level as in the first full quarter after the acquisition closed. During periods prior to our acquisition of Point (a former distributor of our products), net revenues from businesses acquired in the past 12 months consists of sales by VeriFone to Point for that period.
Note C: Organic non-GAAP net revenues at constant currency. VeriFone determines organic non-GAAP net revenues at constant currency by recomputing organic non-GAAP net revenues denominated in currencies other than U.S. Dollars in the current fiscal period using average exchange rates for that particular currency during the corresponding financial period of the prior year. VeriFone uses this non-GAAP measure to evaluate performance on a comparable basis excluding the impact of foreign currency fluctuations. Where Organic non-GAAP net revenues at a constant currency is presented for a period longer than one fiscal quarter, it is computed as the sum of the Organic non-GAAP net revenues at constant currency for each quarter during that period.
Note D: Acquisition, Divestiture and Restructuring Related. VeriFone adjusts certain revenues and expenses that are the result of acquisitions, divestitures and restructurings.
Acquisition related adjustments include the amortization of purchased intangible assets and fixed asset fair value adjustments, incremental costs associated with acquisitions (such as professional fees, legal fees related to litigation assumed as part of acquisitions, and one-time charges related to acquired balances), acquisition integration expenses (such as costs of personnel required to assist with integration transitions), loss on financial instruments entered into to fix the acquisition purchase price in U.S. dollars when it is payable in foreign currencies and fair value increase (step-up) of inventory on acquisition. These adjustments do not include the fair value adjustments relating to certain contracts acquired as part of an acquisition whereby third parties have yet to fulfill their contractual obligations. In addition, we adjust for changes in estimate or final resolution of contingencies that existed at the time of acquisition. Acquisition related expenses also result from events which arise from unforeseen circumstances which often occur outside the ordinary course of business.
In the fourth fiscal quarter of 2012 we entered into a non-binding letter of intent to divest certain assets and business operations related to one of our product offerings. The net revenues, cost of net revenues and operating expenses for the fiscal quarter ended October 31, 2012 that are attributable to the business to be divested have been excluded from non-GAAP net revenues, non-GAAP cost of net revenues and non-GAAP operating expenses, respectively, for the fiscal quarter and year ended October 31, 2012.
Restructure related adjustments include all restructure charges as defined in accordance with US GAAP.
VeriFone analyzes the performance of its operations without regard to these adjusted revenues and expenses. In determining whether any acquisition, divestiture or restructure related adjustment is appropriate, VeriFone takes into consideration, among other things, how such adjustments would or would not aid the understanding of the performance of its operations.
Note E: Stock-Based Compensation. Our non-GAAP financial measures eliminate the effect of expense for stock-based compensation because they are non-cash expenses that management believes are not reflective of ongoing operating results. In particular, because of varying available valuation methodologies, subjective assumptions and the variety of award types which affect the calculations of stock-based compensation, we believe that the exclusion of stock-based compensation allows for more accurate comparisons of our operating results to our peer companies. Stock-based compensation is very different from other forms of compensation. A cash salary or bonus has a fixed and unvarying cash cost. In contrast the expense associated with an award of an option or other stock based award is unrelated to the amount of compensation ultimately received by the employee; and the cost to the company is based on valuation methodology and underlying assumptions that may vary over time and does not reflect any cash expenditure by the company. Furthermore, the expense associated with granting an employee an option or other stock based award is spread over multiple years and may be reversed based on forfeitures which may differ from our original assumptions unlike cash compensation expense which is typically recorded contemporaneously with the time of award or payment.
Note F: Other Charges and Income. VeriFone excludes certain expenses and income that are the result of unique or unplanned events that are noted below. It is difficult to estimate the amount or timing of these items in advance. Although these events are reflected in our GAAP financial statements, we exclude them in our non-GAAP financial measures because we believe these expenses may limit the comparability of our ongoing operations with prior and future periods. Examples of adjustments for other charges and income are:
- Patent litigation loss contingency expense recorded upon a jury verdict related to periods prior to the jury verdict. These costs were not anticipated and were recorded when they became probable and estimable. They are excluded from non-GAAP operating expenses to enable comparability between periods.
- Gains or losses on financial transactions, such as the accelerated amortization of capitalized debt issuance costs due to the early repayment of debt. These accelerated costs are excluded from non-GAAP Other income (expense), net to enable comparability between periods.
- Certain personnel expenses that we have identified will continue to be incurred only for a fixed short period of time in connection with scheduled operational changes as we streamline and centralize some of our global operations, including international distribution and repair facilities. These expenses are referred to as "Costs of efficiency initiatives" and we excluded these expenses from non-GAAP operating expenses to enable comparability of our ongoing operations.
- Accrued loss related to litigation initiated by several former contractors of one of our Brazilian subsidiaries following termination of their services. These costs were not anticipated and relate to certain claims for which we have determined loss is probable and estimable primarily because of a partially unfavorable court ruling in one of the underlying proceedings. The costs are excluded from non-GAAP operating expenses to enable comparability between periods.
- Non-cash interest expense recorded relating to the adoption of ASC 470-20 Debt with conversion and other options. This expense is excluded from non-GAAP interest expense to promote comparability of our non-GAAP financial results with prior and future periods and best reflects our on-going operations.
- Income taxes are adjusted for the tax effect of excluding items related to our non-GAAP financial measures, in order to provide our management and users of the financial statements with better clarity regarding the on-going comparable performance and future liquidity of our business. Our non-GAAP tax rates were 14% for the period May 1, 2012 through October 31, 2012, 18% for the period December 31, 2011 through April 30, 2012, and 20% for the period November 1, 2010 through December 30, 2011.
Because of these factors, we assess our operating performance with these amounts included and excluded, and by providing this information we believe that users of our financial statements are better able to understand the financial results of what we consider to be our continuing operations.
Note G: Non-GAAP diluted shares. In connection with our 1.375% Senior Convertible Notes we had entered into certain note hedge transactions. We repaid these Notes in cash upon maturity on June 15, 2012, and the then outstanding note hedge transactions expired unused on June 15, 2012. Non-GAAP diluted shares reflect the offset of shares that would have been deliverable in the periods presented prior to the maturity of the Notes pursuant to note hedge transactions. Under GAAP, shares delivered in hedge transactions are not considered offsetting shares in the fully diluted share calculation until they are actually delivered.
| VERIFONE SYSTEMS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||||
| (IN THOUSANDS, EXCEPT PER SHARE DATA AND PERCENTAGES) | ||||||||||||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||||||||||||
| Three Months Ended October 31, | Years Ended October 31, | |||||||||||||||||||||||||||||
| 2012 | 2011 | % Change (1) | 2012 | 2011 | % Change (1) | |||||||||||||||||||||||||
| Net revenues: | ||||||||||||||||||||||||||||||
| System solutions | $ | 335,710 | $ | 319,211 | 5.2 | % | $ | 1,339,024 | $ | 1,033,911 | 29.5 | % | ||||||||||||||||||
| Services | 149,669 | 91,493 | 63.6 | % | 526,947 | 269,955 | 95.2 | % | ||||||||||||||||||||||
| Total net revenues | 485,379 | 410,704 | 18.2 | % | 1,865,971 | 1,303,866 | 43.1 | % | ||||||||||||||||||||||
| Cost of net revenues: | ||||||||||||||||||||||||||||||
| System solutions | 204,403 | 227,154 | (10.0 | )% | 811,641 | 655,511 | 23.8 | % | ||||||||||||||||||||||
| Services | 81,439 | 57,488 | 41.7 | % | 298,489 | 156,605 | 90.6 | % | ||||||||||||||||||||||
| Total cost of net revenues | 285,842 | 284,642 | 0.4 | % | 1,110,130 | 812,116 | 36.7 | % | ||||||||||||||||||||||
| Gross profit | 199,537 | 126,062 | 58.3 | % | 755,841 | 491,750 | 53.7 | % | ||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||
| Research and development | 40,416 | 34,654 | 16.6 | % | 152,001 | 109,155 | 39.3 | % | ||||||||||||||||||||||
| Sales and marketing | 47,385 | 46,052 | 2.9 | % | 179,694 | 138,267 | 30.0 | % | ||||||||||||||||||||||
| General and administrative | 37,026 | 44,073 | (16.0 | )% | 175,174 | 123,789 | 41.5 | % | ||||||||||||||||||||||
| Patent litigation loss contingency expense | — | — | nm | 17,632 | — | nm | ||||||||||||||||||||||||
| Amortization of purchased intangible assets | 23,246 | 8,871 | 162.0 | % | 83,795 | 14,829 | nm | |||||||||||||||||||||||
| Total operating expenses | 148,073 | 133,650 | 10.8 | % | 608,296 | 386,040 | 57.6 | % | ||||||||||||||||||||||
| Operating income | 51,464 | (7,588 | ) | nm | 147,545 | 105,710 | 39.6 | % | ||||||||||||||||||||||
| Interest expense | (13,186 | ) | (5,952 | ) | 121.5 | % | (62,830 | ) | (28,950 | ) | 117.0 | % | ||||||||||||||||||
| Interest income | 1,139 | 1,546 | (26.3 | )% | 4,399 | 2,595 | 69.5 | % | ||||||||||||||||||||||
| Other income (expense), net | 2,589 | 5,777 | (55.2 | )% | (20,761 | ) | 11,929 | nm | ||||||||||||||||||||||
| Income (loss) before income taxes | 42,006 | (6,217 | ) | nm | 68,353 | 91,284 | (25.1 | )% | ||||||||||||||||||||||
| Provision for (benefit from) income taxes | 14,117 | (205,114 | ) | (106.9 | )% | 2,050 | (191,412 | ) | (101.1 | )% | ||||||||||||||||||||
| Consolidated net income | 27,889 | 198,897 | (86.0 | )% | 66,303 | 282,696 | (76.5 | )% | ||||||||||||||||||||||
| Net income attributable to noncontrolling interests | (904 | ) | (71 | ) | nm | (1,270 | ) | (292 | ) | nm | ||||||||||||||||||||
| Net income attributable to VeriFone Systems, Inc. stockholders | $ | 26,985 | $ | 198,826 | (86.4 | )% | $ | 65,033 | $ | 282,404 | (77.0 | )% | ||||||||||||||||||
| Net income per share attributable to VeriFone Systems, Inc. stockholders: | ||||||||||||||||||||||||||||||
| Basic | $ | 0.25 | $ | 1.90 | $ | 0.61 | $ | 3.06 | ||||||||||||||||||||||
| Diluted | $ | 0.24 | $ | 1.84 | $ | 0.59 | $ | 2.92 | ||||||||||||||||||||||
|
Weighted average shares used in computing earnings per share: |
||||||||||||||||||||||||||||||
| Basic | 107,718 | 104,497 | 107,006 | 92,414 | ||||||||||||||||||||||||||
| Diluted | 110,342 | 108,339 | 110,315 | 96,616 | ||||||||||||||||||||||||||
| (1) | "nm" means not meaningful | |||||||||||||||||||||||||||||
| VERIFONE SYSTEMS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||
| NET REVENUE INFORMATION | |||||||||||||||||||||||||||||||||||||||
| (IN THOUSANDS, EXCEPT PERCENTAGES, UNAUDITED) | |||||||||||||||||||||||||||||||||||||||
| Three Months Ended | % Change (1) | Years Ended |
% YoY Change (1) |
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| Note |
October 31, 2012 |
July 31, 2012 |
October 31, 2011 |
% SEQ | % YoY |
October 31, 2012 |
October 31, 2011 |
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| GAAP net revenues: | |||||||||||||||||||||||||||||||||||||||
| International | |||||||||||||||||||||||||||||||||||||||
| EMEA | $ | 201,347 | $ | 199,992 | $ | 148,613 | 0.7 | % | 35.5 | % | $ | 755,187 | $ | 417,615 | 80.8 | % | |||||||||||||||||||||||
| LAC | 79,971 | 94,378 | 104,621 | (15.3 | )% | (23.6 | )% | 370,843 | 275,930 | 34.4 | % | ||||||||||||||||||||||||||||
| ASPAC | 58,802 | 56,518 | 41,815 | 4.0 | % | 40.6 | % | 207,983 | 123,821 | 68.0 | % | ||||||||||||||||||||||||||||
| Total International | 340,120 | 350,888 | 295,049 | (3.1 | )% | 15.3 | % | 1,334,013 | 817,366 | 63.2 | % | ||||||||||||||||||||||||||||
| North America | 145,259 | 138,162 | 115,655 | 5.1 | % | 25.6 | % | 531,958 | 486,500 | 9.3 | % | ||||||||||||||||||||||||||||
| Total | $ | 485,379 | $ | 489,050 | $ | 410,704 | (0.8 | )% | 18.2 | % | $ | 1,865,971 | $ | 1,303,866 | 43.1 | % | |||||||||||||||||||||||
| Non-GAAP net revenues: (Note A) (2) | |||||||||||||||||||||||||||||||||||||||
| International | |||||||||||||||||||||||||||||||||||||||
| EMEA | A | $ | 203,980 | $ | 203,413 | $ | 149,977 | 0.3 | % | 36.0 | % | $ | 771,469 | $ | 419,587 | 83.9 | % | ||||||||||||||||||||||
| LAC | A | 79,971 | 94,378 | 104,965 | (15.3 | )% | (23.8 | )% | 370,843 | 276,274 | 34.2 | % | |||||||||||||||||||||||||||
| ASPAC | A | 59,288 | 56,995 | 44,937 | 4.0 | % | 31.9 | % | 211,107 | 126,946 | 66.3 | % | |||||||||||||||||||||||||||
| Total International | 343,239 | 354,786 | 299,879 | (3.3 | )% | 14.5 | % | 1,353,419 | 822,807 | 64.5 | % | ||||||||||||||||||||||||||||
| North America | A | 145,318 | 138,433 | 115,761 | 5.0 | % | 25.5 | % | 532,921 | 486,703 | 9.5 | % | |||||||||||||||||||||||||||
| Total | $ | 488,557 | $ | 493,219 | $ | 415,640 | (0.9 | )% | 17.5 | % | $ | 1,886,340 | $ | 1,309,510 | 44.0 | % | |||||||||||||||||||||||
| GAAP net revenues: | $ | 485,379 | $ | 489,050 | $ | 410,704 | (0.8 | )% | 18.2 | % | $ | 1,865,971 | $ | 1,303,866 | 43.1 | % | |||||||||||||||||||||||
| Plus: Non-GAAP net revenues adjustments | A, D | $ | 3,178 | $ | 4,169 | $ | 4,936 | nm | nm | $ | 20,369 | $ | 5,644 | nm | |||||||||||||||||||||||||
| Non-GAAP net revenues: (Note A) | 488,557 | 493,219 | 415,640 | (0.9 | )% | 17.5 | % | 1,886,340 | 1,309,510 | 44.0 | % | ||||||||||||||||||||||||||||
| Less: net revenues from businesses acquired in the past 12 months | |||||||||||||||||||||||||||||||||||||||
| Hypercom | B | — | (68,510 | ) | — | nm | nm | (222,960 | ) | — | nm | ||||||||||||||||||||||||||||
| Point | B | (58,232 | ) | (55,893 | ) | (6,942 | ) | nm | nm | (189,527 | ) | (21,632 | ) | nm | |||||||||||||||||||||||||
| Other | B | (6,108 | ) | (9,343 | ) | — | nm | nm | (47,521 | ) | (1,425 | ) | nm | ||||||||||||||||||||||||||
| Total | (64,340 | ) | (133,746 | ) | (6,942 | ) | nm | nm | (460,008 | ) | (23,057 | ) | nm | ||||||||||||||||||||||||||
| Organic non-GAAP net revenues: (Note B) | 424,217 | 359,473 | 408,698 | nm | 3.8 | % | 1,426,332 | 1,286,453 | 10.9 | % | |||||||||||||||||||||||||||||
| (1) "nm" means not meaningful | |||||||||||||||||||||||||||||||||||||||
| (2) Reconciliations for the non-GAAP measures presented in this press release are provided at the end of this press release. | |||||||||||||||||||||||||||||||||||||||
|
For the three months ended October 31, 2012
compared to October 31, 2011 |
For the years ended October 31, 2012
compared to October 31, 2011 |
|||||||||||||||||||||||||||||||||||
|
Net revenues growth |
Impact due to acquired businesses (A) (B) |
Organic non-GAAP net revenues growth |
Impact due to foreign currency (C) |
Organic non-GAAP net revenues at constant currency growth |
Net revenues growth |
Impact due to acquired businesses (A) (B) |
Organic non-GAAP net revenues growth |
Impact due to foreign currency (C) |
Organic non-GAAP net revenues at constant currency growth |
|||||||||||||||||||||||||||
| International | ||||||||||||||||||||||||||||||||||||
| EMEA | 35.5 | % | 35.1pts | 0.4 | % | 5.2pts | 5.6 | % | 80.8 | % | 70.9pts | 9.9 | % | 5.0pts | 14.9 | % | ||||||||||||||||||||
| LAC | (23.6 | )% | 0.2pts | (23.8 | )% | 6.8pts | (17.0 | )% | 34.4 | % | 15.3pts | 19.1 | % | 6.4pts | 25.5 | % | ||||||||||||||||||||
| ASPAC | 40.6 | % | 8.7pts | 31.9 | % | 2.8pts | 34.7 | % | 68.0 | % | 47.1pts | 20.9 | % | 2.5pts | 23.4 | % | ||||||||||||||||||||
| Total International | 15.3 | % | 18.7pts | (3.4 | )% | 5.4pts | 2.0 | % | 63.2 | % | 48.3pts | 14.9 | % | 5.0pts | 19.9 | % | ||||||||||||||||||||
| North America | 25.6 | % | 3.5pts | 22.1 | % | 0.1pts | 22.2 | % | 9.3 | % | 5.0pts | 4.3 | % | 0.1pts | 4.4 | % | ||||||||||||||||||||
| Total | 18.2 | % | 14.4pts | 3.8 | % | 3.9pts | 7.7 | % | 43.1 | % | 32.2pts | 10.9 | % | 3.1pts | 14.0 | % | ||||||||||||||||||||
| VERIFONE SYSTEMS, INC. AND SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| (IN THOUSANDS) | |||||||||||
| October 31, 2012 | October 31, 2011 | ||||||||||
| (UNAUDITED) | |||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 454,072 | $ | 594,562 | |||||||
| Accounts receivable, net of allowances of $8,491 and $5,658 | 366,887 | 294,440 | |||||||||
| Inventories | 178,274 | 144,316 | |||||||||
| Prepaid expenses and other current assets | 136,210 | 127,130 | |||||||||
| Total current assets | 1,135,443 | 1,160,448 | |||||||||
| Fixed assets, net | 146,803 | 83,634 | |||||||||
| Purchased intangible assets, net | 734,808 | 263,767 | |||||||||
| Goodwill | 1,179,381 | 561,414 | |||||||||
| Deferred tax assets | 215,139 | 205,496 | |||||||||
| Other assets | 79,033 | 38,802 | |||||||||
| Total assets | $ | 3,490,607 | $ | 2,313,561 | |||||||
| Liabilities and Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 193,062 | $ | 144,278 | |||||||
| Accruals and other current liabilities | 230,867 | 218,123 | |||||||||
| Deferred revenue, net | 91,545 | 68,824 | |||||||||
| Senior convertible notes | — | 266,981 | |||||||||
| Short-term debt | 54,916 | 5,074 | |||||||||
| Total current liabilities | 570,390 | 703,280 | |||||||||
| Deferred revenue, net | 37,062 | 31,467 | |||||||||
| Long term debt | 1,252,701 | 211,756 | |||||||||
| Deferred tax liabilities | 214,537 | 92,594 | |||||||||
| Other long-term liabilities | 70,440 | 78,971 | |||||||||
| Total liabilities | 2,145,130 | 1,118,068 | |||||||||
| Redeemable noncontrolling interest in subsidiary | 861 | 855 | |||||||||
| Stockholders' equity: | |||||||||||
| Common stock | 1,081 | 1,058 | |||||||||
| Additional paid-in-capital | 1,543,127 | 1,468,862 | |||||||||
| Accumulated deficit | (204,023 | ) | (269,056 | ) | |||||||
| Accumulated other comprehensive loss | (32,390 | ) | (6,671 | ) | |||||||
| Total stockholders' equity | 1,307,795 | 1,194,193 | |||||||||
| Noncontrolling interest in subsidiaries | 36,821 | 445 | |||||||||
| Total liabilities and equity | $ | 3,490,607 | $ | 2,313,561 | |||||||
| VERIFONE SYSTEMS, INC. AND SUBSIDIARIES | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
| (IN THOUSANDS) | ||||||||||
| (UNAUDITED) | ||||||||||
| Years Ended October 31, | ||||||||||
| 2012 | 2011 | |||||||||
| Cash flows from operating activities | ||||||||||
| Consolidated net income | $ | 66,303 | $ | 282,696 | ||||||
| Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||||||||||
| Depreciation and amortization, net | 177,832 | 48,318 | ||||||||
| Stock-based compensation expense | 44,554 | 34,144 | ||||||||
| Non-cash interest expense | 10,290 | 15,695 | ||||||||
| Deferred income taxes | (22,030 | ) | (227,034 | ) | ||||||
| Write-off of debt issue costs upon debt extinguishment | 5,268 | — | ||||||||
| Other | (11,064 | ) | 4,869 | |||||||
| Net cash provided by operating activities before changes in operating assets and liabilities | 271,153 | 158,688 | ||||||||
| Changes in operating assets and liabilities, net of effects of business acquisitions: | ||||||||||
| Accounts receivable, net | (53,945 | ) | (72,386 | ) | ||||||
| Inventories, net | (19,274 | ) | 23,224 | |||||||
| Prepaid expenses and other assets | (19,854 | ) | (1,824 | ) | ||||||
| Accounts payable | 31,802 | 29,461 | ||||||||
| Deferred revenue, net | 27,316 | 14,801 | ||||||||
| Other current and long term liabilities | (19,235 | ) | 22,609 | |||||||
| Net change in operating assets and liabilities | (53,190 | ) | 15,885 | |||||||
| Net cash provided by operating activities | 217,963 | 174,573 | ||||||||
| Cash flows from investing activities | ||||||||||
| Capital expenditures | (63,181 | ) | (14,811 | ) | ||||||
| Acquisitions of businesses, net of cash and cash equivalents acquired | (1,069,412 | ) | (49,231 | ) | ||||||
| Collection of other notes receivable | 13,376 | — | ||||||||
| Other investing activities, net | 1,183 | 873 | ||||||||
| Net cash used in investing activities | (1,118,034 | ) | (63,169 | ) | ||||||
| Cash flows from financing activities | ||||||||||
| Proceeds from debt, net of issue costs | 1,660,577 | 73 | ||||||||
| Repayments of debt | (619,336 | ) | (10,233 | ) | ||||||
| Repayment of senior convertible notes, including interest | (279,159 | ) | — | |||||||
| Proceeds from issuance of common stock through employee equity incentive plans | 30,308 | 48,534 | ||||||||
| Payments of acquisition related contingent consideration | (24,605 | ) | — | |||||||
| Distribution to noncontrolling interest stockholders | (1,673 | ) | (418 | ) | ||||||
| Tax benefit from stock-based compensation | 2,034 | 718 | ||||||||
| Net cash provided by financing activities | 768,146 | 38,674 | ||||||||
| Effect of foreign currency exchange rate changes on cash and cash equivalents | (8,565 | ) | (653 | ) | ||||||
| Net increase (decrease) in cash and cash equivalents | (140,490 | ) | 149,425 | |||||||
| Cash and cash equivalents, beginning of period | 594,562 | 445,137 | ||||||||
| Cash and cash equivalents, end of period | $ | 454,072 | $ | 594,562 | ||||||
| VERIFONE SYSTEMS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||
| (UNAUDITED; IN THOUSANDS, EXCEPT PER SHARE DATA AND PERCENTAGES) | |||||||||||||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||||||||||||
| Note | October 31, 2012 | July 31, 2012 | October 31, 2011 | October 31, 2012 | October 31, 2011 | ||||||||||||||||||||||
| GAAP Net revenues - System solutions | $ | 335,710 | $ | 350,230 | $ | 319,211 | $ | 1,339,024 | $ | 1,033,911 | |||||||||||||||||
| Amortization of step-down in deferred revenue at acquisition | A | 514 | 729 | 2,780 | 6,581 | 2,780 | |||||||||||||||||||||
| Non-GAAP Net revenues - System solutions | $ | 336,224 | $ | 350,959 | $ | 321,991 | $ | 1,345,605 | $ | 1,036,691 | |||||||||||||||||
| GAAP Net revenues - Services | $ | 149,669 | $ | 138,820 | $ | 91,493 | $ | 526,947 | $ | 269,955 | |||||||||||||||||
| Amortization of step-down in deferred revenue at acquisition | A | 2,773 | 3,440 | 2,156 | 13,897 | 2,864 | |||||||||||||||||||||
| Divestiture related revenues | D | (109 | ) | — | — | (109 | ) | — | |||||||||||||||||||
| Non-GAAP Net revenues - Services | $ | 152,333 | $ | 142,260 | $ | 93,649 | $ | 540,735 | $ | 272,819 | |||||||||||||||||
| GAAP Net revenues | $ | 485,379 | $ | 489,050 | $ | 410,704 | $ | 1,865,971 | $ | 1,303,866 | |||||||||||||||||
| Amortization of step-down in deferred revenue at acquisition | A | 3,287 | 4,169 | 4,936 | 20,478 | 5,644 | |||||||||||||||||||||
| Divestiture related revenues | D | (109 | ) | — | — | (109 | ) | — | |||||||||||||||||||
| Non-GAAP Net revenues | $ | 488,557 | $ | 493,219 | $ | 415,640 | $ | 1,886,340 | $ | 1,309,510 | |||||||||||||||||
| GAAP Cost of net revenues - System solutions | $ | 204,403 | $ | 206,213 | $ | 227,154 | $ | 811,641 | $ | 655,511 | |||||||||||||||||
| Stock-based compensation | E | (325 | ) | (442 | ) | (457 | ) | (1,598 | ) | (1,539 | ) | ||||||||||||||||
| Acquisition, divestiture and restructuring related costs | D | (734 | ) | (1,403 | ) | (25,086 | ) | (14,225 | ) | (25,832 | ) | ||||||||||||||||
| Amortization of purchased intangible assets | D | (9,815 | ) | (9,630 | ) | (8,112 | ) | (37,045 | ) | (18,167 | ) | ||||||||||||||||
| Costs of efficiency initiatives | F | (10 | ) | — | — | (10 | ) | — | |||||||||||||||||||
| Non-GAAP Cost of net revenues - System solutions | $ | 193,519 | $ | 194,738 | $ | 193,499 | $ | 758,763 | $ | 609,973 | |||||||||||||||||
| GAAP Cost of net revenues - Services | $ | 81,439 | $ | 75,330 | $ | 57,488 | $ | 298,489 | $ | 156,605 | |||||||||||||||||
| Stock-based compensation | E | (276 | ) | (118 | ) | (44 | ) | (505 | ) | (185 | ) | ||||||||||||||||
| Acquisition, divestiture and restructuring related costs | D | (1,222 | ) | 220 | (881 | ) | (3,504 | ) | (976 | ) | |||||||||||||||||
| Amortization of purchased intangible assets | D | (870 | ) | (952 | ) | (334 | ) | (3,423 | ) | (991 | ) | ||||||||||||||||
| Costs of efficiency initiatives | F | (95 | ) | — | — | (95 | ) | — | |||||||||||||||||||
| Non-GAAP Cost of net revenues - Services | $ | 78,976 | $ | 74,480 | $ | 56,229 | $ | 290,962 | $ | 154,453 | |||||||||||||||||
| GAAP Gross margin - System solutions | $ | 131,307 | $ | 144,017 | $ | 92,057 | $ | 527,383 | $ | 378,400 | |||||||||||||||||
| Amortization of step-down in deferred revenue at acquisition | A | 514 | 729 | 2,780 | 6,581 | 2,780 | |||||||||||||||||||||
| Stock-based compensation | E | 325 | 442 | 457 | 1,598 | 1,539 | |||||||||||||||||||||
| Acquisition, divestiture and restructuring related costs | D | 734 | 1,403 | 25,086 | 14,225 | 25,832 | |||||||||||||||||||||
| Amortization of purchased intangible assets | D | 9,815 | 9,630 | 8,112 | 37,045 | 18,167 | |||||||||||||||||||||
| Costs of efficiency initiatives | F | 10 | — | — | 10 | — | |||||||||||||||||||||
| Non-GAAP Gross margin - System solutions | $ | 142,705 | $ | 156,221 | $ | 128,492 | $ | 586,842 | $ | 426,718 | |||||||||||||||||
| GAAP System solutions gross margin as a % of System solutions net revenues | 39.1 | % | 41.1 | % | 28.8 | % | 39.4 | % | 36.6 | % | |||||||||||||||||
| Amortization of step-down in deferred revenue at acquisition as a % of System solutions net revenues | 0.2 | % | 0.2 | % | 0.9 | % | 0.5 | % | 0.3 | % | |||||||||||||||||
| Stock-based compensation as a % of System solutions net revenues | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | |||||||||||||||||
| Acquisition, divestiture and restructure related costs as a % of System solutions net revenues | 0.2 | % | 0.4 | % | 7.9 | % | 1.1 | % | 2.5 | % | |||||||||||||||||
| Amortization of purchased intangible assets as a % of System solutions net revenues | 2.9 | % | 2.7 | % | 2.5 | % | 2.8 | % | 1.8 | % | |||||||||||||||||
| Costs of efficiency initiatives as a % of System solutions net revenues | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||||
| Non-GAAP System solutions gross margin as a % of System solutions non-GAAP net revenues | 42.4 | % | 44.5 | % | 39.9 | % | 43.6 | % | 41.2 | % | |||||||||||||||||
| VERIFONE SYSTEMS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||
| (UNAUDITED; IN THOUSANDS, EXCEPT PER SHARE DATA AND PERCENTAGES) | |||||||||||||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||||||||||||
| Note | October 31, 2012 | July 31, 2012 | October 31, 2011 | October 31, 2012 | October 31, 2011 | ||||||||||||||||||||||
| GAAP Gross margin - Services | $ | 68,230 | $ | 63,490 | $ | 34,005 | $ | 228,458 | $ | 113,350 | |||||||||||||||||
| Amortization of step-down in deferred revenue at acquisition | A | 2,773 | 3,440 | 2,156 | 13,897 | 2,864 | |||||||||||||||||||||
| Stock-based compensation | E | 276 | 118 | 44 | 505 | 185 | |||||||||||||||||||||
| Acquisition, divestiture and restructure related adjustments | D | 1,113 | (220 | ) | 881 | 3,395 | 976 | ||||||||||||||||||||
| Amortization of purchased intangible assets | D | 870 | 952 | 334 | 3,423 | 991 | |||||||||||||||||||||
| Costs of efficiency initiatives | F | 95 | — | — | 95 | — | |||||||||||||||||||||
| Non-GAAP Gross margin - Services | $ |
73,357 |
$ | 67,780 | $ | 37,420 | $ | 249,773 | $ | 118,366 | |||||||||||||||||
| GAAP Services gross margin as a % of Services net revenues | 45.6 | % | 45.7 | % | 37.2 | % | 43.4 | % | 42.0 | % | |||||||||||||||||
| Amortization of step-down in deferred revenue at acquisition as a % of Services net revenues | 1.9 | % | 2.5 | % | 2.4 | % | 2.6 | % | 1.1 | % | |||||||||||||||||
| Stock-based compensation as a % of Services net revenues | 0.2 | % | 0.1 | % | 0.0 | % | 0.1 | % | 0.1 | % | |||||||||||||||||
| Acquisition, divestiture and restructure related adjustments as a % of Services net revenues | 0.7 | % | (0.2 | )% | 1.0 | % | 0.6 | % | 0.4 | % | |||||||||||||||||
| Amortization of purchased intangible assets as a % of Services net revenues | 0.6 | % | 0.7 | % | 0.4 | % | 0.6 | % | 0.4 | % | |||||||||||||||||
| Costs of efficiency initiatives as a % of Services net revenues | 0.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||||
| Non-GAAP Services gross margin as a % of Services non-GAAP net revenues | 48.2 | % | 47.6 | % | 40.0 | % | 46.2 | % | 43.4 | % | |||||||||||||||||
| GAAP Gross margin | $ | 199,537 | $ | 207,507 | $ | 126,062 | $ | 755,841 | $ | 491,750 | |||||||||||||||||
| Amortization of step-down in deferred revenue at acquisition | A | 3,287 | 4,169 | 4,936 | 20,478 | 5,644 | |||||||||||||||||||||
| Stock-based compensation | E | 601 | 560 | 501 | 2,103 | 1,724 | |||||||||||||||||||||
| Acquisition, divestiture and restructure related adjustments | D | 1,847 | 1,183 | 25,967 | 17,620 | 26,808 | |||||||||||||||||||||
| Amortization of purchased intangible assets | D | 10,685 | 10,582 | 8,446 | 40,468 | 19,158 | |||||||||||||||||||||
| Costs of efficiency initiatives | F | 105 | — | — | 105 | — | |||||||||||||||||||||
| Non-GAAP Gross margin | $ | 216,062 | $ | 224,001 | $ | 165,912 | $ | 836,615 | $ | 545,084 | |||||||||||||||||
| GAAP Gross margin as a % of net revenues | 41.1 | % | 42.4 | % | 30.7 | % | 40.5 | % | 37.7 | % | |||||||||||||||||
| Amortization of step-down in deferred revenue at acquisition as a % of net revenues | 0.7 | % | 0.9 | % | 1.2 | % | 1.1 | % | 0.4 | % | |||||||||||||||||
| Stock-based compensation as a % of net revenues | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | |||||||||||||||||
| Acquisition, divestiture and restructure related adjustments as a % of net revenues | 0.4 | % | 0.2 | % | 6.3 | % | 0.9 | % | 2.1 | % | |||||||||||||||||
| Amortization of purchased intangible assets as a % of net revenues | 2.2 | % | 2.2 | % | 2.1 | % | 2.2 | % | 1.5 | % | |||||||||||||||||
| Costs of efficiency initiatives as a % of net revenues | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||||
| Non-GAAP Gross margin as a % of non-GAAP net revenues | 44.2 | % | 45.4 | % | 39.9 | % | 44.4 | % | 41.6 | % | |||||||||||||||||
| GAAP Research and development expense | $ | 40,416 | $ | 38,657 | $ | 34,654 | $ | 152,001 | $ | 109,155 | |||||||||||||||||
| Stock-based compensation | E | (2,189 | ) | (1,497 | ) | (1,199 | ) | (6,140 | ) | (4,015 | ) | ||||||||||||||||
| Acquisition, divestiture and restructure related costs | D | (2,018 | ) | (1,099 | ) | (959 | ) | (6,019 | ) | (982 | ) | ||||||||||||||||
| Costs of efficiency initiatives | F | $ | (701 | ) | $ | — | $ | — | $ | (701 | ) | $ | — | ||||||||||||||
| Non-GAAP Research and development expense | $ | 35,508 | $ | 36,061 | $ | 32,496 | $ | 139,141 | $ | 104,158 | |||||||||||||||||
| Non-GAAP Research and development expense as a % of non-GAAP net revenues | 7.3 | % | 7.3 | % | 7.8 | % | 7.4 | % | 8.0 | % | |||||||||||||||||
| VERIFONE SYSTEMS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||
| (UNAUDITED; IN THOUSANDS, EXCEPT PER SHARE DATA AND PERCENTAGES) | |||||||||||||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||||||||||||
| Note | October 31, 2012 | July 31, 2012 | October 31, 2011 | October 31, 2012 | October 31, 2011 | ||||||||||||||||||||||
| GAAP Sales and marketing expense | $ | 47,385 | $ | 46,182 | $ | 46,052 | $ | 179,694 | $ | 138,267 | |||||||||||||||||
| Stock-based compensation | E | (1,937 | ) | (5,177 | ) | (3,090 | ) | (15,781 | ) | (13,000 | ) | ||||||||||||||||
| Acquisition, divestiture and restructure related costs | D | (1,457 | ) | (707 | ) | (7,079 | ) | (3,262 | ) | (8,435 | ) | ||||||||||||||||
| Non-operating gains (losses) | F | (1,606 | ) | — | — | (1,606 | ) | — | |||||||||||||||||||
| Costs of efficiency initiatives | F | (639 | ) | — | — | (639 | ) | — | |||||||||||||||||||
| Non-GAAP Sales and marketing expense | $ | 41,746 | $ | 40,298 | $ | 35,883 | $ | 158,406 | $ | 116,832 | |||||||||||||||||
| Non-GAAP Sales and marketing expense as a % of non-GAAP net revenues | 8.5 | % | 8.2 | % | 8.6 | % | 8.4 | % | 8.9 | % | |||||||||||||||||
| GAAP General and administrative expense | $ | 37,026 | $ | 43,414 | $ | 44,073 | $ | 175,174 | $ | 123,789 | |||||||||||||||||
| Stock-based compensation | E | (5,655 | ) | (5,211 | ) | (4,246 | ) | (20,530 | ) | (15,405 | ) | ||||||||||||||||
| Acquisition, divestiture and restructure related costs | D | (3,392 | ) | (2,844 | ) | (16,457 | ) | (28,035 | ) | (28,277 | ) | ||||||||||||||||
| Costs of efficiency initiatives | F | (107 | ) | — | — | (107 | ) | — | |||||||||||||||||||
| Non-GAAP General and administrative expense | $ | 27,872 | $ | 35,359 | $ | 23,370 | $ | 126,502 | $ | 80,107 | |||||||||||||||||
| Non-GAAP General and administrative expense as a % of non-GAAP net revenues | 5.7 | % | 7.2 | % | 5.6 | % | 6.7 | % | 6.1 | % | |||||||||||||||||
| GAAP Patent litigation loss contingency expense | $ | — | $ | — | $ | — | $ | 17,632 | $ | — | |||||||||||||||||
| Patent litigation loss contingency expense | F | — | — | — | (17,632 | ) | — | ||||||||||||||||||||
| Non-GAAP Patent litigation loss contingency expense | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
| Non-GAAP Patent litigation loss contingency expense as a % of non-GAAP net revenues | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||||
| GAAP Amortization of purchased intangible assets | 23,246 | $ | 23,177 | $ | 8,871 | $ | 83,795 | $ | 14,829 | ||||||||||||||||||
| Amortization of purchased intangible assets | D | (23,246 | ) | (23,177 | ) | (8,871 | ) | (83,795 | ) | (14,829 | ) | ||||||||||||||||
| Non-GAAP Amortization of purchased intangible assets | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
| Non-GAAP Amortization of purchased intangible assets as a % of non-GAAP net revenues | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||||
| GAAP Operating expenses | $ | 148,073 | $ | 151,430 | $ | 133,650 | $ | 608,296 | $ | 386,040 | |||||||||||||||||
| Stock-based compensation | E | (9,781 | ) | (11,885 | ) | (8,535 | ) | (42,451 | ) | (32,420 | ) | ||||||||||||||||
| Acquisition, divestiture and restructure related costs | D | (6,867 | ) | (4,650 | ) | (24,495 | ) | (37,316 | ) | (37,694 | ) | ||||||||||||||||
| Amortization of purchased intangible assets | D | (23,246 | ) | (23,177 | ) | (8,871 | ) | (83,795 | ) | (14,829 | ) | ||||||||||||||||
| Non-operating gains (losses) | F | (1,606 | ) | — | — | (1,606 | ) | — | |||||||||||||||||||
| Costs of efficiency initiatives | F | (1,447 | ) | — | — | (1,447 | ) | — | |||||||||||||||||||
| Patent litigation loss contingency expense | F | — | — | — | (17,632 | ) | — | ||||||||||||||||||||
| Non-GAAP Operating expenses | $ | 105,126 | $ | 111,718 | $ | 91,749 | $ | 424,049 | $ | 301,097 | |||||||||||||||||
| Non-GAAP Operating expenses as a % of non-GAAP net revenues | 21.5 | % | 22.7 | % | 22.1 | % | 22.5 | % | 23.0 | % | |||||||||||||||||
| GAAP Operating income | $ | 51,464 | $ | 56,077 | $ | (7,588 | ) | $ | 147,545 | $ | 105,710 | ||||||||||||||||
| Amortization of step-down in deferred revenue at acquisition | A | 3,287 | 4,169 | 4,936 | 20,478 | 5,644 | |||||||||||||||||||||
| Stock-based compensation | E | 10,382 | 12,445 | 9,036 | 44,554 | 34,144 | |||||||||||||||||||||
| Acquisition, divestiture and restructure related adjustments | D | 8,714 | 5,833 | 50,462 | 54,936 | 64,502 | |||||||||||||||||||||
| Amortization of purchased intangible assets | D | 33,931 | 33,759 | 17,317 | 124,263 | 33,987 | |||||||||||||||||||||
| Costs of efficiency initiatives | F | 1,552 | — | — | 1,552 | — | |||||||||||||||||||||
| Non-operating gains (losses) | F | 1,606 | — | — | 1,606 | — | |||||||||||||||||||||
| Patent litigation loss contingency expense | F | — | — | — | 17,632 | — | |||||||||||||||||||||
| Non-GAAP Operating income | $ | 110,936 | $ | 112,283 | $ | 74,163 | $ | 412,566 | $ | 243,987 | |||||||||||||||||
| VERIFONE SYSTEMS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||
| (UNAUDITED; IN THOUSANDS, EXCEPT PER SHARE DATA AND PERCENTAGES) | |||||||||||||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||||||||||||
| Note | October 31, 2012 | July 31, 2012 | October 31, 2011 | October 31, 2012 | October 31, 2011 | ||||||||||||||||||||||
| GAAP Operating income as a % of net revenues | 10.6 | % | 11.5 | % | (1.8 | )% | 7.9 | % | 8.1 | % | |||||||||||||||||
| Amortization of step-down in deferred revenue at acquisition as a % of net revenues | 0.7 | % | 0.9 | % | 1.2 | % | 1.1 | % | 0.4 | % | |||||||||||||||||
| Stock-based compensation as a % of net revenues | 2.1 | % | 2.5 | % | 2.2 | % | 2.4 | % | 2.6 | % | |||||||||||||||||
| Acquisition, divestiture and restructure related adjustments as a % of net revenues | 1.8 | % | 1.2 | % | 12.3 | % | 2.9 | % | 4.9 | % | |||||||||||||||||
| Amortization of purchased intangible assets as a % of net revenues | 7.0 | % | 6.9 | % | 4.2 | % | 6.7 | % | 2.6 | % | |||||||||||||||||
| Costs of efficiency initiatives as a % of net revenues | 0.3 | % | 0.0 | % | 0.0 | % | 0.1 | % | 0.0 | % | |||||||||||||||||
| Non-operating gains (losses) as a % of net revenues | 0.3 | % | 0.0 | % | 0.0 | % | 0.1 | % | 0.0 | % | |||||||||||||||||
| Patent litigation loss contingency expense as a % of net revenues | 0.0 | % | 0.0 | % | 0.0 | % | 0.9 | % | 0.0 | % | |||||||||||||||||
| Non-GAAP Operating income as a % of non-GAAP net revenues | 22.7 | % | 22.8 | % | 17.8 | % | 21.9 | % | 18.6 | % | |||||||||||||||||
| GAAP Interest expense | $ | (13,186 | ) | $ | (16,374 | ) | $ | (5,952 | ) | $ | (62,830 | ) | $ | (28,950 | ) | ||||||||||||
| Acquisition, divestiture and restructure related costs | D | (2,627 | ) | 467 | (1,571 | ) | (1,255 | ) | 40 | ||||||||||||||||||
| Non-cash interest expense | F | 3,151 | 2,087 | 4,034 | 15,559 | 15,576 | |||||||||||||||||||||
| Non-GAAP Interest expense | $ | (12,662 | ) | $ | (13,820 | ) | $ | (3,489 | ) | $ | (48,526 | ) | $ | (13,334 | ) | ||||||||||||
| GAAP Interest income | $ | 1,139 | $ | 1,110 | $ | 1,546 | $ | 4,399 | $ | 2,595 | |||||||||||||||||
| Acquisition, divestiture and restructure related adjustments | D | 102 | 128 | — | 949 | — | |||||||||||||||||||||
| Non-GAAP Interest income | $ | 1,241 | $ | 1,238 | $ | 1,546 | $ | 5,348 | $ | 2,595 | |||||||||||||||||
| GAAP Other income (expense), net | $ | 2,589 | $ | (721 | ) | $ | 5,777 | $ | (20,761 | ) | $ | 11,929 | |||||||||||||||
| Acquisition, divestiture and restructure related costs | D | (5,452 | ) | (1,966 | ) | (6,735 | ) | 11,800 | (7,868 | ) | |||||||||||||||||
| Non-operating (gains) losses | F | 1,996 | 393 | — | 2,535 | (5,196 | ) | ||||||||||||||||||||
| Non-GAAP Other income (expense), net | $ | (867 | ) | $ | (2,294 | ) | $ | (958 | ) | $ | (6,426 | ) | $ | (1,135 | ) | ||||||||||||
| Non-GAAP Income before income taxes | $ | 98,648 | $ | 97,407 | $ | 71,262 | $ | 362,962 | $ | 232,113 | |||||||||||||||||
| GAAP Provision for (benefit from) income taxes | $ | 14,117 | $ | 2,313 | $ | (205,114 | ) | $ | 2,050 | $ | (191,412 | ) | |||||||||||||||
| Income tax effect of non-GAAP exclusions | F | (525 | ) | 11,233 | 219,352 | 55,458 | 237,776 | ||||||||||||||||||||
| Non-GAAP Provision for income taxes | $ | 13,592 | $ | 13,546 | $ | 14,238 | $ | 57,508 | $ | 46,364 | |||||||||||||||||
| Non-GAAP Income tax rate | 13.8 | % | 13.9 | % | 20.0 | % | 15.8 | % | 20.0 | % | |||||||||||||||||
| GAAP Net (income) loss attributable to noncontrolling interests | $ | (904 | ) | $ | (84 | ) | $ | (71 | ) | $ | (1,270 | ) | $ | (292 | ) | ||||||||||||
| Acquisition, divestiture and restructure related costs | D | (666 | ) | (563 | ) | — | (2,003 | ) | — | ||||||||||||||||||
| Non-GAAP Net income attributable to noncontrolling interests | $ | (1,570 | ) | $ | (647 | ) | $ | (71 | ) | $ | (3,273 | ) | $ | (292 | ) | ||||||||||||
| GAAP Net income attributable to VeriFone Systems, Inc. stockholders | $ | 26,985 | $ | 37,695 | $ | 198,826 | $ | 65,033 | $ | 282,404 | |||||||||||||||||
| Amortization of step-down in deferred revenue at acquisition | A | 3,287 | 4,169 | 4,936 | 20,478 | 5,644 | |||||||||||||||||||||
| Stock-based compensation | E | 10,382 | 12,445 | 9,036 | 44,554 | 34,144 | |||||||||||||||||||||
| Acquisition, divestiture and restructure related adjustments | D | 71 | 3,899 | 42,156 | 64,427 | 56,674 | |||||||||||||||||||||
| Amortization of purchased intangible assets | D | 33,931 | 33,759 | 17,317 | 124,263 | 33,987 | |||||||||||||||||||||
| Costs of efficiency initiatives | F | 1,552 | — | — | 1,552 | — | |||||||||||||||||||||
| Patent litigation loss contingency expense | F | — | — | — | 17,632 | — | |||||||||||||||||||||
| Non-cash interest expense | F | 3,151 | 2,087 | 4,034 | 15,559 | 15,576 | |||||||||||||||||||||
| Non-operating (gains) losses | F | 3,602 | 393 | — | 4,141 | (5,196 | ) | ||||||||||||||||||||
| Income tax effect of non-GAAP exclusions | F | 525 | (11,233 | ) | (219,352 | ) | (55,458 | ) | (237,776 | ) | |||||||||||||||||
| Non-GAAP Net income attributable to VeriFone Systems, Inc. stockholders | $ | 83,486 | $ | 83,214 | $ | 56,953 | $ | 302,181 | $ | 185,457 | |||||||||||||||||
| VERIFONE SYSTEMS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||
| (UNAUDITED; IN THOUSANDS, EXCEPT PER SHARE DATA AND PERCENTAGES) | |||||||||||||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||||||||||||
| Note | October 31, 2012 | July 31, 2012 | October 31, 2011 | October 31, 2012 | October 31, 2011 | ||||||||||||||||||||||
| Non-GAAP Net income per share attributable to VeriFone Systems, Inc. stockholders: | |||||||||||||||||||||||||||
| Basic | $ | 0.78 | $ | 0.77 | $ | 0.55 | $ | 2.82 | $ | 2.01 | |||||||||||||||||
| Diluted | G | $ | 0.76 | $ | 0.75 | $ | 0.53 | $ | 2.74 | $ | 1.92 | ||||||||||||||||
| Weighted average shares used in computing earnings per share: | |||||||||||||||||||||||||||
| GAAP Basic shares | 107,718 | 107,568 | 104,497 | 107,006 | 92,414 | ||||||||||||||||||||||
| GAAP Diluted shares | 110,342 | 110,384 | 108,339 | 110,315 | 96,616 | ||||||||||||||||||||||
| Additional shares dilutive for non-GAAP | G | — | — | — | (93 | ) | (104 | ) | |||||||||||||||||||
| Non-GAAP Diluted shares | G | 110,342 | 110,384 | 108,339 | 110,222 | 96,512 | |||||||||||||||||||||
| Net income attributable to VeriFone Systems, Inc. stockholders as a % of net revenues | 5.6 | % | 7.7 | % | 48.4 | % | 3.5 | % | 21.7 | % | |||||||||||||||||
| Amortization of step-down in deferred revenue at acquisition as a % of net revenues | 0.7 | % | 0.9 | % | 1.2 | % | 1.1 | % | 0.4 | % | |||||||||||||||||
| Stock-based compensation as a % of net revenues | 2.1 | % | 2.5 | % | 2.2 | % | 2.4 | % | 2.6 | % | |||||||||||||||||
| Acquisition, divestiture and restructure related adjustments as a % of net revenues | 0.0 | % | 0.8 | % | 10.3 | % | 3.5 | % | 4.3 | % | |||||||||||||||||
| Amortization of purchased intangible assets as a % of net revenues | 7.0 | % | 6.9 | % | 4.2 | % | 6.7 | % | 2.6 | % | |||||||||||||||||
| Costs of efficiency initiatives as a % of net revenues | 0.3 | % | 0.0 | % | 0.0 | % | 0.1 | % | 0.0 | % | |||||||||||||||||
| Patent litigation loss contingency expense as a % of net revenues | 0.0 | % | 0.0 | % | 0.0 | % | 0.9 | % | 0.0 | % | |||||||||||||||||
| Non-cash interest expense as a % of net revenues | 0.6 | % | 0.4 | % | 1.0 | % | 0.8 | % | 1.2 | % | |||||||||||||||||
| Non-operating (gains) losses as a % of net revenues | 0.7 | % | 0.1 | % | 0.0 | % | 0.2 | % | (0.4 | )% | |||||||||||||||||
| Income tax effect of non-GAAP exclusions as a % of net revenues | 0.1 | % | (2.3 | )% | (53.4 | )% | (3.0 | )% | (18.2 | )% | |||||||||||||||||
| Non-GAAP Net income attributable to VeriFone Systems, Inc. stockholders as a % of non-GAAP net revenues | 17.1 | % | 16.9 | % | 13.7 | % | 16.0 | % | 14.2 | % | |||||||||||||||||
| VERIFONE SYSTEMS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||||||
| (IN THOUSANDS) | ||||||||||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||||||||||||||||
| Note | October 31, 2012 | July 31, 2012 | October 31, 2011 | October 31, 2012 | October 31, 2011 | |||||||||||||||||||||||
| GAAP net revenues: | ||||||||||||||||||||||||||||
| International | ||||||||||||||||||||||||||||
| EMEA | $ | 201,347 | $ | 199,992 | $ | 148,613 | $ | 755,187 | $ | 417,615 | ||||||||||||||||||
| LAC | 79,971 | 94,378 | 104,621 | 370,843 | 275,930 | |||||||||||||||||||||||
| ASPAC | 58,802 | 56,518 | 41,815 | 207,983 | 123,821 | |||||||||||||||||||||||
| Total International | 340,120 | 350,888 | 295,049 | 1,334,013 | 817,366 | |||||||||||||||||||||||
| North America | 145,259 | 138,162 | 115,655 | 531,958 | 486,500 | |||||||||||||||||||||||
| Total | $ | 485,379 | $ | 489,050 | $ | 410,704 | $ | 1,865,971 | $ | 1,303,866 | ||||||||||||||||||
|
Plus: non-GAAP net revenues adjustments |
||||||||||||||||||||||||||||
| International | ||||||||||||||||||||||||||||
| EMEA | A | $ | 2,633 | $ | 3,421 | $ | 1,364 | $ | 16,282 | $ | 1,972 | |||||||||||||||||
| LAC | A | — | — | 344 | — | 344 | ||||||||||||||||||||||
| ASPAC | A | 486 | 477 | 3,122 | 3,124 | 3,125 | ||||||||||||||||||||||
| Total International | 3,119 | 3,898 | 4,830 | 19,406 | 5,441 | |||||||||||||||||||||||
| North America | A, D | 59 | 271 | 106 | 963 | 203 | ||||||||||||||||||||||
| Total | $ | 3,178 | $ | 4,169 | $ | 4,936 | $ | 20,369 | $ | 5,644 | ||||||||||||||||||
| Non-GAAP net revenues: | ||||||||||||||||||||||||||||
| International | ||||||||||||||||||||||||||||
| EMEA | A | $ | 203,980 | $ | 203,413 | $ | 149,977 | $ | 771,469 | $ | 419,587 | |||||||||||||||||
| LAC | A | 79,971 | 94,378 | 104,965 | 370,843 | 276,274 | ||||||||||||||||||||||
| ASPAC | A | 59,288 | 56,995 | 44,937 | 211,107 | 126,946 | ||||||||||||||||||||||
| Total International | 343,239 | 354,786 | 299,879 | 1,353,419 | 822,807 | |||||||||||||||||||||||
| North America | A | 145,318 | 138,433 | 115,761 | 532,921 | 486,703 | ||||||||||||||||||||||
| Total | $ | 488,557 | $ | 493,219 | $ | 415,640 | $ | 1,886,340 | $ | 1,309,510 | ||||||||||||||||||
|
Less: net revenues from businesses acquired in the past 12 months |
||||||||||||||||||||||||||||
| International | ||||||||||||||||||||||||||||
| EMEA | B | $ | (60,381 | ) | $ | (98,360 | ) | $ | (6,942 | ) | $ | (335,521 | ) | $ | (23,057 | ) | ||||||||||||
| LAC | B | — | (9,923 | ) | — | (41,761 | ) | — | ||||||||||||||||||||
| ASPAC | B | — | (19,476 | ) | — | (57,589 | ) | — | ||||||||||||||||||||
| Total International | (60,381 | ) | (127,759 | ) | (6,942 | ) | (434,871 | ) | (23,057 | ) | ||||||||||||||||||
| North America | B | (3,959 | ) | (5,987 | ) | — | (25,137 | ) | — | |||||||||||||||||||
| Total | $ | (64,340 | ) | $ | (133,746 | ) | $ | (6,942 | ) | $ | (460,008 | ) | $ | (23,057 | ) | |||||||||||||
| VERIFONE SYSTEMS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||
| (IN THOUSANDS) | |||||||||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||||||||||||
| Note | October 31, 2012 | July 31, 2012 | October 31, 2011 | October 31, 2012 | October 31, 2011 | ||||||||||||||||||||||
| Organic non-GAAP net revenues: | |||||||||||||||||||||||||||
| International | |||||||||||||||||||||||||||
| EMEA | B | $ | 143,599 | $ | 105,053 | $ | 143,035 | $ | 435,948 | $ | 396,530 | ||||||||||||||||
| LAC | B | 79,971 | 84,455 | 104,965 | 329,082 | 276,274 | |||||||||||||||||||||
| ASPAC | B | 59,288 | 37,519 | 44,937 | 153,518 | 126,946 | |||||||||||||||||||||
| Total International | 282,858 | 227,027 | 292,937 | 918,548 | 799,750 | ||||||||||||||||||||||
| North America | B | 141,359 | 132,446 | 115,761 | 507,784 | 486,703 | |||||||||||||||||||||
| Total | $ | 424,217 | $ | 359,473 | $ | 408,698 | $ | 1,426,332 | $ | 1,286,453 | |||||||||||||||||
| Plus: constant currency adjustment | |||||||||||||||||||||||||||
| International | |||||||||||||||||||||||||||
| EMEA | C | $ | 7,425 | $ | 6,893 | $ | 19,685 | ||||||||||||||||||||
| LAC | C | 7,119 | 6,433 | 17,666 | |||||||||||||||||||||||
| ASPAC | C | 1,254 | 906 | 3,155 | |||||||||||||||||||||||
| Total International | 15,798 | 14,232 | 40,506 | ||||||||||||||||||||||||
| North America | C | 74 | 195 | 298 | |||||||||||||||||||||||
| Total | $ | 15,872 | $ | 14,427 | $ | 40,804 | |||||||||||||||||||||
| Organic non-GAAP net revenues at constant currency: | |||||||||||||||||||||||||||
| International | |||||||||||||||||||||||||||
| EMEA | C | $ | 151,024 | $ | 111,946 | $ | 143,035 | $ | 455,633 | $ | 396,530 | ||||||||||||||||
| LAC | C | 87,090 | 90,888 | 104,965 | 346,748 | 276,274 | |||||||||||||||||||||
| ASPAC | C | 60,542 | 38,425 | 44,937 | 156,673 | 126,946 | |||||||||||||||||||||
| Total International | 298,656 | 241,259 | 292,937 | 959,054 | 799,750 | ||||||||||||||||||||||
| North America | C | 141,433 | 132,641 | 115,761 | 508,082 | 486,703 | |||||||||||||||||||||
| Total | $ | 440,089 | $ | 373,900 | $ | 408,698 | $ | 1,467,136 | $ | 1,286,453 | |||||||||||||||||