Divestiture of Taxi Business / Share Repurchase
On December 11, 2017, Verifone sold its Taxi business for $30 million in cash consideration. In connection with the transaction, Verifone also retained a minority equity interest in the divested business.
Verifone expects to use the net proceeds from the Taxi divestiture, plus available cash, to complete the remaining $50 million authorized under its previously-announced $200 million stock buyback program. Furthermore, the Company’s Board of Directors has authorized an additional $100 million stock repurchase program, which Verifone intends to execute over the coming 12 to 18 months, subject to market conditions and other factors, delivering to shareholders a meaningful percentage of free cash flow generated by the Company during this period.
Fiscal 2018 and First Quarter 2018 Outlook
“For fiscal 2018, the Company expects non-GAAP net revenues of $1.775 billion to $1.8 billion, which reflects low single digit growth on an adjusted basis excluding the divested China and Taxi businesses from the prior year. This outlook also demonstrates a return to growth in our core North America Retail and Small and Medium Business verticals, and more than offsets approximately $70 million in prior year headwinds within our North American Petro and India businesses. The Company also expects fiscal 2018 non-GAAP net income per diluted share of $1.47 to $1.50, reflecting core revenue growth, higher gross margins based on a greater mix of next generation products, and accretion from share repurchases, offset partially by additional investments in next generation solutions, and changes in our non-GAAP effective tax rate,” said Marc Rothman, Executive Vice President and Chief Financial Officer.
Verifone’s outlook for fiscal year 2018 and first quarter is presented as follows:
Guidance for full fiscal year 2018:
- GAAP net revenues of approximately $1.788 to $1.813 billion
- Non-GAAP net revenues of approximately $1.775 to $1.800 billion, adjusted to exclude divested businesses
- GAAP net income per diluted share of approximately $0.66 to $0.69
- Non-GAAP net income per diluted share of $1.47 to $1.50
Guidance for first fiscal quarter of 2018:
- GAAP net revenues of approximately $431 to $433 million
- Non-GAAP net revenues of approximately $418 to $420 million, adjusted to exclude divested businesses
- GAAP net income per diluted share of approximately $0.02
- Non-GAAP net income per diluted share of $0.22
A reconciliation of adjusted revenues for historical comparative periods is provided in the attached financial tables.
Verifone will hold its earnings conference call today, December 12, 2017, at 1:30 p.m. (PT) / 4:30 p.m. (ET). To listen to the call and view the slides, visit Verifone’s website http://ir.verifone.com. The recorded audio webcast will be available on Verifone's website until January 12, 2018.
Verifone is transforming every day transactions into new and engaging opportunities for merchants and consumers at the last inch of payments and commerce. Powered by a growing footprint of more than 30 million devices in more than 150 countries, our people are trusted experts working with the world’s best-known retail brands, financial institutions, and payment providers. Verifone is connecting more products to an integrated solutions platform to better meet the evolving needs of our clients and partners. Built on a 35-year history of uncompromised security, we are committed to consistently solving the most complex payment challenges.
Verifone.com | (NYSE: PAY) | @verifone.
Additional Resources: http://ir.verifone.com