Segment Information

9 Months Ended

Sep. 30, 2015

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, HiFX, IME and XE. Ria and IME provide global consumer-to-consumer money transfer services through a network of sending agents, Company-owned stores and Company-owned websites, 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. XE is a provider of foreign currency exchange information and offers money transfers on its currency data websites, which are executed by a third party. 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, 2015 and 2014:

	For the Three Months Ended September 30, 2015
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	118,895	$	174,547	$	188,232	$	(301	)	$	481,373
Operating expenses:
Direct operating costs	51,550		133,124		97,928		(289		)	282,313
Salaries and benefits	11,862		12,745		36,187		6,276			67,070
Selling, general and administrative	7,052		11,411		23,356		1,904			43,723
Depreciation and amortization	8,115		2,660		7,011		207			17,993
Total operating expenses	78,579		159,940		164,482		8,098			411,099
Operating income (expense)	$	40,316	$	14,607	$	23,750	$	(8,399	)	$	70,274

	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 Nine Months Ended September 30, 2015
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	286,650	$	517,296	$	498,689	$	(952	)	$	1,301,683
Operating expenses:
Direct operating costs	135,754		396,860		260,008		(873		)	791,749
Salaries and benefits	34,466		37,172		100,581		19,939			192,158
Selling, general and administrative	19,432		28,439		63,089		5,413			116,373
Depreciation and amortization	23,274		8,465		19,703		344			51,786
Total operating expenses	212,926		470,936		443,381		24,823			1,152,066
Operating income (expense)	$	73,724	$	46,360	$	55,308	$	(25,775	)	$	149,617

	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

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, 2015		December 31, 2014		September 30, 2015		December 31, 2014
EFT Processing	$	94,614	$	72,749	$	540,879	$	390,398
epay	23,310		24,859		565,516		754,448
Money Transfer	31,432		27,528		1,033,915		837,360
Corporate Services, Eliminations and Other	150		171		25,435		69,353
Total	$	149,506	$	125,307	$	2,165,745	$	2,051,559