Segment Information

9 Months Ended

Sep. 30, 2014

Segment Information [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company’s reportable operating segments have been determined in accordance with ASC Topic 280, Segment Reporting. The Company currently operates in the following three reportable operating segments:

1) Through the EFT Processing Segment, the Company processes transactions for a network of ATMs and POS terminals across Europe, the Middle East and Asia Pacific. The Company provides comprehensive electronic payment solutions consisting of ATM cash withdrawal services, ATM network participation, outsourced ATM and POS management solutions, credit and debit card outsourcing, dynamic currency conversion and other value added services. Through this segment, the Company also offers a suite of integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems.

2) Through the epay Segment, the Company provides distribution, processing and collection services for prepaid mobile airtime and other electronic payment products in Europe, the Middle East, Asia Pacific, the United States and South America.

3) Through the Money Transfer Segment, the Company provides global money transfer services under the brand names Ria and HiFX. Ria provides global consumer-to-consumer money transfer services through a network of sending agents, Company-owned stores and a Company-owned website, disbursing money transfers through a worldwide correspondent network. HiFX offers account-to-account international payment services to high-income individuals and small-to-medium sized businesses. The Company also offers customers bill payment services, payment alternatives such as money orders and prepaid debit cards, comprehensive check cashing services, foreign currency exchange services and mobile top-up. The Company provides cash management solutions and foreign currency risk management services to small-to-medium sized businesses under the brand name HiFM.

In addition, the Company accounts for non-operating activity, most share-based compensation expense, certain intersegment eliminations and the costs of providing corporate and other administrative services in its administrative division, “Corporate Services, Eliminations and Other.” These services are not directly identifiable with the Company’s reportable operating segments.

The following tables present the Company’s reportable segment results for the three and nine months ended September 30, 2014 and 2013:

	For the Three Months Ended September 30, 2014
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	107,503	$	195,086	$	151,250	$	(417	)	$	453,422
Operating expenses:
Direct operating costs	46,612		153,121		75,455		(374		)	274,814
Salaries and benefits	12,155		14,356		32,219		5,857			64,587
Selling, general and administrative	6,516		11,160		23,747		2,545			43,968
Depreciation and amortization	8,010		3,998		7,246		67			19,321
Total operating expenses	73,293		182,635		138,667		8,095			402,690
Operating income (expense)	$	34,210	$	12,451	$	12,583	$	(8,512	)	$	50,732

	For the Three Months Ended September 30, 2013
(in thousands)	EFT Processing			epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	83,594		$	182,629	$	95,276	$	(919	)	$	360,580
Operating expenses:
Direct operating costs	36,576			142,284		45,588		(897		)	223,551
Salaries and benefits	10,195			13,494		23,120		6,010			52,819
Selling, general and administrative	5,249			10,687		14,521		2,797			33,254
Acquisition-related contingent consideration gain	(19,319		)	—		—		—			(19,319		)
Depreciation and amortization	6,273			4,036		4,530		91			14,930
Total operating expenses	38,974			170,501		87,759		8,001			305,235
Operating income (expense)	$	44,620		$	12,128	$	7,517	$	(8,920	)	$	55,345

	For the Nine Months Ended September 30, 2014
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	271,580	$	562,129	$	369,568	$	(1,078	)	$	1,202,199
Operating expenses:
Direct operating costs	125,773		434,984		183,985		(953		)	743,789
Salaries and benefits	35,127		41,856		83,472		18,074			178,529
Selling, general and administrative	19,167		31,433		57,438		9,782			117,820
Depreciation and amortization	22,951		12,323		17,337		208			52,819
Total operating expenses	203,018		520,596		342,232		27,111			1,092,957
Operating income (expense)	$	68,562	$	41,533	$	27,336	$	(28,189	)	$	109,242

	For the Nine Months Ended September 30, 2013
(in thousands)	EFT Processing			epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	219,149		$	548,867	$	271,536	$	(1,785	)	$	1,037,767
Operating expenses:
Direct operating costs	104,103			424,343		130,221		(1,734		)	656,933
Salaries and benefits	29,409			41,976		64,601		17,312			153,298
Selling, general and administrative	16,530			30,689		40,621		7,874			95,714
Acquisition-related contingent consideration gain	(19,319		)	—		—		—			(19,319		)
Depreciation and amortization	22,242			12,569		13,751		276			48,838
Total operating expenses	152,965			509,577		249,194		23,728			935,464
Operating income (expense)	$	66,184		$	39,290	$	22,342	$	(25,513	)	$	102,303

The following table presents the Company’s property and equipment and total assets by reportable segment:

	Property and Equipment, net as of				Total Assets as of
(in thousands)	September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013
EFT Processing	$	71,714	$	64,972	$	452,212	$	347,073
epay	25,230		27,176		615,769		757,942
Money Transfer	26,202		23,768		872,515		472,390
Corporate Services, Eliminations and Other	213		314		25,537		20,710
Total	$	123,359	$	116,230	$	1,966,033	$	1,598,115