Segment Information

6 Months Ended

Jun. 30, 2016

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 six months ended June 30, 2016 and 2015:

	For the Three Months Ended June 30, 2016
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	115,127	$	160,614	$	201,480	$	(354	)	$	476,867
Operating expenses:
Direct operating costs	56,372		121,049		104,692		(354		)	281,759
Salaries and benefits	13,241		12,605		39,374		8,618			73,838
Selling, general and administrative	8,214		8,191		24,192		1,848			42,445
Depreciation and amortization	9,412		2,698		7,353		52			19,515
Total operating expenses	87,239		144,543		175,611		10,164			417,557
Operating income (expense)	$	27,888	$	16,071	$	25,869	$	(10,518	)	$	59,310

	For the Three Months Ended June 30, 2015
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	93,075	$	166,824	$	165,651	$	(402	)	$	425,148
Operating expenses:
Direct operating costs	45,075		126,519		86,860		(375		)	258,079
Salaries and benefits	11,598		12,382		33,301		7,479			64,760
Selling, general and administrative	6,610		9,015		21,772		1,219			38,616
Depreciation and amortization	7,754		2,728		5,964		67			16,513
Total operating expenses	71,037		150,644		147,897		8,390			377,968
Operating income (expense)	$	22,038	$	16,180	$	17,754	$	(8,792	)	$	47,180

	For the Six Months Ended June 30, 2016
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	201,696	$	330,719	$	383,053	$	(707	)	$	914,761
Operating expenses:
Direct operating costs	103,119		251,211		199,762		(707		)	553,385
Salaries and benefits	24,647		24,700		76,217		15,511			141,075
Selling, general and administrative	14,512		17,158		45,006		3,623			80,299
Depreciation and amortization	18,260		5,764		14,673		106			38,803
Total operating expenses	160,538		298,833		335,658		18,533			813,562
Operating income (expense)	$	41,158	$	31,886	$	47,395	$	(19,240	)	$	101,199

	For the Six Months Ended June 30, 2015
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	167,755	$	342,749	$	310,457	$	(651	)	$	820,310
Operating expenses:
Direct operating costs	84,204		263,736		162,080		(584		)	509,436
Salaries and benefits	22,604		24,427		64,394		13,663			125,088
Selling, general and administrative	12,380		17,028		39,733		3,509			72,650
Depreciation and amortization	15,159		5,805		12,692		137			33,793
Total operating expenses	134,347		310,996		278,899		16,725			740,967
Operating income (expense)	$	33,408	$	31,753	$	31,558	$	(17,376	)	$	79,343

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)	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
EFT Processing	$	115,111	$	99,798	$	703,019	$	469,351
epay	23,708		24,834		572,561		646,000
Money Transfer	37,371		32,591		1,123,592		1,040,737
Corporate Services, Eliminations and Other	107		145		21,315		36,626
Total	$	176,297	$	157,368	$	2,420,487	$	2,192,714