Global Payments Earnings Call Insights: Revenue Contribution and Drivers Analysis
Georgios Mihalos – Credit Suisse: Thanks for taking my question and Paul, all the best. It was great working with you.
Paul R. Garcia – Chairman: Thanks George.
Georgios Mihalos – Credit Suisse: Congratulations, Jeff. So, may be just to start off nice to see the margins trending in the right direction. Within the North American business or within the U.S. business can you breakout the revenue contribution that is non-ISO direct in the growth trends that you’ve seen there?
David Mangum – SEVP and CFO: Yeah, George this is David I’d be happy to do that. They are really quite consistent what we expected when the year started. So, we have an ISO channel, that as you heard in our prepared comments, growth slowing a little bit really due to the law of large numbers and the timing and sequencing of when ISOs choose to feed their customers. So, that channel continues to grow the transactions in double-digits and with revenue growth below that depending again on timing on fees and just again the law of large numbers. So, to view the rest of the channels the APT business is really carrying a lot of the water for us this year just as we expected. Remember last year, we didn’t own APT until October. So we’re getting the benefit of that in this quarter and that will begin to annualize, but even when it annualizes we’ll be looking at very nice mid-teens kind of revenue growth from APT. Everything we expected from that business with the opportunity to actually add growth to it on a global basis over the years. Then if we go through the rest of the channels, the check in gaming, the gaming business you remember historically have been covered up for some time, still chugs along at very nice levels, high-single digit kind of growth levels. Our direct business, very solid business that’s the combination of our joint venture with Comercia, as well as our core direct base, sort of the legacy direct base of Global Payments that moves along in a nice mid-single digit pace as well. Our greater giving business, low-double may be high-single and then the indirect which is kind of the final reconciling piece of really legacy portfolios buried in us as well buried in other processors they have a different trajectory, but small enough that it doesn’t really affect the overall. The end result of which is what you see today we’re reporting really may be more importantly what we continue to expect for the full-year which is mid to high-single digit revenue growth on annual basis.
Georgios Mihalos – Credit Suisse: Then Jeff just going back to your comments on the acquisition pipeline. Can you talk a little bit more maybe geographically in particular with some of the new markets that you mentioned you could be looking to get into?
Jeffrey S. Sloan – President and CEO: Yeah, sure, George I’m happy to do that. So, we continue to have a full pipeline and we balance that pipeline against what we think to be appropriate return of capital to our shareholders which touches on the accelerated buyback that Paul and David mentioned. I would say a big part of what we do in terms of pipeline, George, depends on where the opportunities are as we’re really looking globally for targets. Right now, we’re spending a fair amount of time in Asia. I think Paul touched on that previously. We’re also spending a fair amount of time in Latin America and in North America and a little bit of time in Western Europe. So it really depends on where the deals are. We have a fairly full pipeline, but we thought the right thing to do at this point balancing that versus return of capital was to move ahead with the $100 million on the buyback relative to the $250 million.
Jason Kupferberg – Jefferies & Company: I wanted to just start with a question on the U.S. I mean, obviously, overall North American operating margins were great to see here this quarter, but we continue to see that gap in the U.S. specifically with transaction growth eclipsing revenue growth by a bit; saw the same thing in Q4. Just remind us of the drivers of that dynamic. Should we expect that to continue at a similar spread during the rest of fiscal ’14?
David Mangum – SEVP and CFO: Jason, it’s David. You’re probably not going to love this answer, but it could move around a little bit as it has historically. You’re correct; it’s fairly consistent Q4 to Q1. Let’s recall the drivers of that. It’s transactions across the market. But the real driver is the timing of what’s going on with the ISOs. So, while logically the relation between transaction growth and revenue growth should be consistent unless something were to happen to pricing trends, something along those lines, I can tell you, from a metrics perspective, there’s almost nothing happening with average tickets and almost nothing happening with spreads in our U.S. business. So, in fact, you point right back to the ISOs when you’re comparing these quarters to each other and say, okay, when did they charge which fee, and depending on that timing and then the overall pace of growth they’re seeing as their growth slows a bit, you sort of kind of have that relationship, which is again, quite logically, you asked a great question, but it sort of vary from what you might expect to be the norm. So, I think the reality is you should not be surprised if you see more quarters like this, but also the occasional quarter where that revenue growth and transaction growth are very consistent with each other because some fees were build during that period…
Jason Kupferberg – Jefferies & Company: Paul, you’ve always been great to opine on industry trends and implications of changes in the space. So, as we think about the possibility of a Durbin 2.0 becoming reality, if we do see another significant cut in U.S. debit interchange as well as a potential requirement for dual signature networks, should we assume that your industry in general and Global Payments specifically would benefit materially, albeit perhaps on a temporary basis from these regulatory changes as was the case after Durbin 1.0?
Paul R. Garcia – Chairman: Jason, it’s hard to argue with just how articulately you put that. I think you captured all of it. I think some will benefit more materially than others. I think we’re all going to be balanced. But we’ve always said, and as you well know, moving interchanges are good things; interchanges going down are very good things. And it is temporal. I mean, you don’t get the habit for ever and ever, but it’s a nice inflection point; and you’re right, that’s a very positive development for us and everybody in our space.
A Closer Look: Global Payments Earnings Cheat Sheet>>