Global Payments Reports Second Quarter Earnings

05 Jan, 2012, 16:01 ET from Global Payments Inc.

ATLANTA, Jan. 5, 2012 /PRNewswire/ -- Global Payments Inc. (NYSE: GPN) today announced results for its fiscal second quarter ended November 30, 2011.  For the second quarter, revenues grew 20% to $530.5 million compared to $443.5 million in the prior fiscal year.  Cash earnings per share grew 13% to $0.86 compared to $0.76 in the prior year (See Schedule 2 for Cash Earnings).  On a GAAP basis, the company reported fiscal 2012 second quarter diluted earnings per share of $0.78 compared to $0.67 in the prior year (See Schedule 1 for GAAP Consolidated Statements of Income).

(Logo: http://photos.prnewswire.com/prnh/20010221/ATW031LOGO )

GAAP and cash earnings per share results include approximately $15 million of revenue and nearly $0.02 of earnings per share related to debit interchange legislation with corresponding unfavorable impact on operating margin.

Chairman and CEO Paul R. Garcia stated, "We delivered solid second quarter results driven by continued steady performances in all of our businesses and the December 2010 addition of Spain.  I am also pleased to announce three targeted merchant portfolio acquisitions which will expand our international footprint and U.S. ecommerce presence.  First, we increased our distribution in Russia by acquiring a merchant business with more than 6,000 merchants from Alfa-Bank.  Secondly, we have agreed to acquire HSBC's merchant business in Malta consisting of nearly 4,000 merchants, which is pending regulatory approval, and thirdly we have signed an agreement to acquire CyberSource's U.S. merchant acquiring portfolio from Visa.  

"I am pleased to note that we continue to expect overall total company cash margin expansion of as much as 50 basis points in fiscal 2012 excluding the effect of recent debit legislation and the acquisitions," continued Mr. Garcia.  

David E. Mangum, Senior Executive Vice President and CFO, stated, "Including the effect of the debit legislation as well as the three recent acquisitions, we are increasing our annual revenue expectations for fiscal 2012 to $2,150 million to $2,200 million, or 16% to 18% growth over fiscal 2011.  We are also increasing fiscal 2012 diluted earnings per share expectations on a cash basis to a range of $3.50 to $3.58, reflecting 14% to 16% growth over fiscal 2011 and annual fiscal 2012 GAAP diluted earnings per share to $3.14 to $3.22, reflecting 20% to 23% growth over the prior year."  (See Schedule 9 for Outlook Summary.)

Cash earnings exclude normalized adjustments and acquisition intangible amortization expense from continuing operations.  (See Schedule 6 and 7 for Reconciliations of Cash Earnings to GAAP, Schedule 2 for Cash Earnings and Schedule 3 for Segment Information on GAAP and Cash Earnings).

Conference Call

Global Payments will hold a conference call today, January 5, 2012 at 5:00 p.m. EST to discuss financial results and business highlights.  Callers may access the conference call via the investor relations page of the Company's Web site at www.globalpaymentsinc.com by clicking the "Webcast" button; or callers in North America may dial 1-888-895-3550 and callers outside North America may dial 1-706-758-8809.  The pass code is "GPN."  A replay of the call may be accessed through the Global Payments Web site through January 19, 2012.  

Global Payments Inc. (NYSE: GPN) is a leading provider of electronic transaction processing services for merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout the United States, Canada, Europe and the Asia-Pacific region.  Global Payments, a Fortune 1000 company, offers a comprehensive line of processing solutions for credit and debit cards, business-to-business purchasing cards, gift cards, electronic check conversion and check guarantee, verification and recovery including electronic check services, as well as terminal management.  Visit www.globalpaymentsinc.com for more information about the company and its services.

This announcement and comments made by Global Payments' management during the conference call may contain certain forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.  Statements that are not historical facts, including revenue and earnings estimates and management's expectations regarding future events and developments, are forward-looking statements and are subject to significant risks and uncertainties.  Important factors that may cause actual events or results to differ materially from those anticipated by such forward-looking statements include the following: foreign currency risks which become increasingly relevant as we expand internationally, the effect of current worldwide economic conditions, including sovereign insolvency situations and a decline in the value of the U.S. dollar, developments in the implementation of debit interchange legislation, and future performance and integration of recent acquisitions, and other risks detailed in the company's SEC filings, including the most recently filed Form 10-Q or Form 10-K, as applicable.  The company undertakes no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.

Contact:

Jane M. Elliott

770-829-8234 Voice

770-829-8267 Fax

investor.relations@globalpay.com

SCHEDULE 1

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF INCOME

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands, except per share data)

Three Months Ended November 30,

Six Months Ended November 30,

2011

2010

% Change

2011

2010

% Change

Revenues

$ 530,505

$ 443,526

20%

$ 1,073,276

$ 883,665

21%

Operating expenses:

    Cost of service

185,931

154,205

21%

377,467

305,246

24%

    Sales, general and administrative

247,994

206,178

20%

490,619

413,168

19%

433,925

360,383

20%

868,086

718,414

21%

Operating income

96,580

83,143

16%

205,190

165,251

24%

Other income (expense):

    Interest and other income

2,259

4,072

(45%)

4,760

5,608

(15%)

    Interest and other expense

(4,878)

(4,299)

13%

(8,965)

(9,140)

(2%)

(2,619)

(227)

1054%

(4,205)

(3,532)

19%

Income from continuing operations before income taxes

93,961

82,916

13%

200,985

161,719

24%

Provision for income taxes

(25,812)

(24,546)

5%

(60,755)

(49,527)

23%

Income from continuing operations

68,149

58,370

17%

140,230

112,192

25%

Loss  from discontinued operations, net of tax

-

(487)

NM

-

(515)

NM

Net income including noncontrolling interests

68,149

57,883

18%

140,230

111,677

26%

Less: Net income attributable to noncontrolling interests, net of tax

(6,968)

(4,378)

59%

(15,075)

(8,804)

71%

         Net income attributable to Global Payments

$   61,181

$   53,505

14%

$    125,155

$ 102,873

22%

Amounts attributable to Global Payments:

   Income from continuing operations

$   61,181

$   53,992

13%

$    125,155

$ 103,388

21%

   Loss  from discontinued operations, net of tax

-

(487)

NM

-

(515)

NM

         Net income attributable to Global Payments

$   61,181

$   53,505

14%

$    125,155

$ 102,873

22%

Basic earnings per share attributable to Global Payments:

   Income from continuing operations

$       0.78

$       0.68

15%

$          1.58

$       1.30

22%

   Loss  from discontinued operations, net of tax

-

(0.01)

NM

-

(0.01)

NM

         Net income attributable to Global Payments

$       0.78

$       0.67

16%

$          1.58

$       1.29

22%

Diluted earnings per share attributable to Global Payments:

   Income from continuing operations

$       0.78

$       0.67

16%

$          1.57

$       1.29

22%

   Loss  from discontinued operations, net of tax

-

-

NM

-

(0.01)

NM

         Net income attributable to Global Payments

$       0.78

$       0.67

16%

$          1.57

$       1.28

23%

Weighted average shares outstanding:

         Basic

78,348

79,701

79,207

79,642

         Diluted

78,876

80,344

79,831

80,310

NM - Not Meaningful

SCHEDULE 2 

CASH EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands, except per share data)

Three Months Ended November 30,

Six Months Ended November 30,

2011

2010

% Change

2011

2010

% Change

Revenues

$ 530,505

$ 443,526

20%

$ 1,073,276

$ 883,665

21%

Operating expenses:

    Cost of service

173,778

145,003

20%

352,671

287,774

23%

    Sales, general and administrative

247,994

203,425

22%

490,619

407,821

20%

421,772

348,428

21%

843,290

695,595

21%

Operating income

108,733

95,098

14%

229,986

188,070

22%

Other income (expense):

    Interest and other income

2,259

4,072

(45%)

4,760

5,608

(15%)

    Interest and other expense

(4,878)

(4,299)

13%

(8,965)

(9,140)

(2%)

(2,619)

(227)

1054%

(4,205)

(3,532)

19%

Income from continuing operations before income taxes

106,114

94,871

12%

225,781

184,538

22%

Provision for income taxes

(29,569)

(28,843)

3%

(68,251)

(54,793)

25%

Income from continuing operations including noncontrolling interests

76,545

66,028

16%

157,530

129,745

21%

Less: Net income attributable to noncontrolling interests, net of tax

(8,913)

(4,701)

90%

(19,085)

(9,440)

102%

Net income from continuing operations attributable to Global Payments

$   67,632

$   61,327

10%

$    138,445

$ 120,305

15%

Basic earnings per share

$       0.86

$       0.77

12%

$          1.75

$       1.51

16%

Diluted earnings per share

$       0.86

$       0.76

13%

$          1.73

$       1.50

15%

Weighted average shares outstanding:

         Basic

78,348

79,701

79,207

79,642

         Diluted

78,876

80,344

79,831

80,310

NM - Not Meaningful

See Schedules 6 and 7 for a reconciliation of cash earnings from continuing operations to GAAP.

SCHEDULE 3

SEGMENT INFORMATION

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)

Three Months Ended November 30,

2011

2010

% Change

GAAP

Cash Earnings

GAAP

Cash Earnings

GAAP

Cash Earnings

Revenues:

United States

$    293,416

$        293,416

$ 245,671

$        245,671

19%

19%

Canada

85,521

85,521

81,453

81,453

5%

5%

North America merchant services

378,937

378,937

327,124

327,124

16%

16%

Europe

115,169

115,169

79,881

79,881

44%

44%

Asia-Pacific

36,399

36,399

36,521

36,521

(0%)

(0%)

International merchant services

151,568

151,568

116,402

116,402

30%

30%

Total revenues

$    530,505

$        530,505

$ 443,526

$        443,526

20%

20%

Operating income:

North America merchant services

$      70,673

$          73,495

$   67,131

$          70,287

5%

5%

International merchant services

44,494

53,825

35,349

40,165

26%

34%

Corporate

(18,587)

(18,587)

(19,337)

(15,354)

4%

(21%)

Operating income

$      96,580

$        108,733

$   83,143

$          95,098

16%

14%

Six Months Ended November 30,

2011

2010

% Change

GAAP

Cash Earnings

GAAP

Cash Earnings

GAAP

Cash Earnings

Revenues:

United States

$    580,841

$        580,841

$ 501,302

$        501,302

16%

16%

Canada

176,742

176,742

162,666

162,666

9%

9%

North America merchant services

757,583

757,583

663,968

663,968

14%

14%

Europe

244,583

244,583

153,677

153,677

59%

59%

Asia-Pacific

71,110

71,110

66,020

66,020

8%

8%

International merchant services

315,693

315,693

219,697

219,697

44%

44%

Total revenues

$ 1,073,276

$     1,073,276

$ 883,665

$        883,665

21%

21%

Operating income:

North America merchant services

$    142,431

$        148,111

$ 135,499

$        141,672

5%

5%

International merchant services

100,152

119,268

66,742

76,215

50%

56%

Corporate

(37,393)

(37,393)

(36,990)

(29,817)

(1%)

(25%)

Operating income

$    205,190

$        229,986

$ 165,251

$        188,070

24%

22%

See Schedule 8 for reconciliation of cash earnings segment information to GAAP.

SCHEDULE 4

CONSOLIDATED BALANCE SHEETS

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)

November 30,

May 31,

2011

2011

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$      770,860

$ 1,354,285

Accounts receivable, net of allowances for doubtful accounts of $548 and $472, respectively

162,643

166,540

Claims receivable, net of allowance for losses of $4,169 and $3,870, respectively

1,024

914

Settlement processing assets

206,642

280,359

Inventory

11,790

7,640

Deferred income taxes

2,893

2,946

Prepaid expenses and other current assets

34,558

35,291

Total current assets

1,190,410

1,847,975

Goodwill

741,081

779,637

Other intangible assets, net of accumulated amortization of $214,435 and $197,066, respectively

299,680

341,500

Property and equipment, net of accumulated depreciation of $161,672 and $147,670, respectively

258,041

256,301

Deferred income taxes

96,508

104,140

Other

28,619

20,978

Total assets

$   2,614,339

$ 3,350,531

LIABILITIES AND EQUITY

Current liabilities:

Lines of credit

$      225,676

$    270,745

Current portion of long-term debt

87,962

85,802

Accounts payable and accrued liabilities

206,420

241,578

Settlement processing obligations

270,290

838,565

Income taxes payable

17,076

7,674

 Total current liabilities

807,424

1,444,364

Long-term debt

203,222

268,217

Deferred income taxes

115,157

116,432

Other long-term liabilities

54,788

49,843

Total liabilities

1,180,591

1,878,856

Commitments and contingencies

Redeemable noncontrolling interest

139,934

133,858

Equity:

Preferred stock, no par value; 5,000,000 shares authorized and none issued

-

-

Common stock, no par value; 200,000,000 shares authorized; 78,355,001 issued

and outstanding at November 30, 2011 and 80,334,781 issued and

outstanding at May 31, 2011

-

-

Paid-in capital

342,914

419,591

Retained earnings

790,532

685,624

Accumulated other comprehensive income

12,909

79,320

     Total Global Payments shareholders' equity

1,146,355

1,184,535

Noncontrolling interest

147,459

153,282

Total equity

1,293,814

1,337,817

Total liabilities and equity

$   2,614,339

$ 3,350,531

SCHEDULE 5

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)

Six Months Ended November 30,

2011

2010

Cash flows from operating activities:

Net income including noncontrolling interests

$  140,230

$ 111,677

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization of property and equipment

23,444

19,082

Amortization of acquired intangibles

24,796

15,646

Provision for operating losses and bad debts

13,061

10,146

Share-based compensation expense

8,425

7,690

Deferred income taxes

5,915

3,287

Other, net

(100)

(3,556)

Changes in operating assets and liabilities, net of the effects of acquisitions:

Accounts receivable

3,897

(17,549)

Claims receivable

(7,880)

(8,095)

Settlement processing assets and obligations, net

(499,849)

(239,970)

Inventory

(4,212)

1,954

Prepaid expenses and other assets

62

(4,600)

Accounts payable and other accrued liabilities

(31,257)

18,990

Income taxes payable

9,402

24,382

Net cash used in operating activities

(314,066)

(60,916)

Cash flows from investing activities:

Business and intangible asset acquisitions, net of cash acquired

(7,000)

(3,488)

Capital expenditures

(35,146)

(51,709)

Preliminary settlement of working capital adjustments from disposition of business

-

(1,921)

Net decrease in financing receivables

1,203

991

Net cash used in investing activities

(40,943)

(56,127)

Cash flows from financing activities:

Net (payments) borrowings on lines of credit

(45,069)

101,694

Proceeds from issuance of long-term debt

71,374

4,410

Principal payments under long-term debt

(131,345)

(83,331)

Proceeds from stock issued under employee stock plans, net of repurchases

(768)

1,962

Repurchase of common stock

(99,604)

(14,900)

Tax benefit from employee share-based compensation

1,436

118

Distribution to noncontrolling interests

(4,660)

(4,385)

Dividends paid

(3,169)

(3,180)

Net cash (used in) provided by financing activities

(211,805)

2,388

Effect of exchange rate changes on cash

(16,611)

8,369

Decrease in cash and cash equivalents

(583,425)

(106,286)

Cash and cash equivalents, beginning of period

1,354,285

769,946

Cash and cash equivalents, end of period

$  770,860

$ 663,660

SCHEDULE 6 

RECONCILIATION OF QUARTERLY CASH EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS TO GAAP

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands, except per share data)

Three Months Ended November 30, 2011

GAAP

Cash Earnings

Adjustments(1)

Cash Earnings

Revenues

$ 530,505

$                -

$       530,505

Operating expenses:

  Cost of service

185,931

(12,153)

173,778

  Sales, general and administrative

247,994

-

247,994

433,925

(12,153)

421,772

Operating income

96,580

12,153

108,733

Other income (expense):

  Interest and other income

2,259

-

2,259

  Interest and other expense

(4,878)

-

(4,878)

(2,619)

-

(2,619)

Income from continuing operations before income taxes

93,961

12,153

106,114

Provision for income taxes

(25,812)

(3,757)

(29,569)

Income from continuing operations

68,149

8,396

76,545

Less: Net income attributable to noncontrolling interests, net of tax

(6,968)

(1,945)

(8,913)

Net income from continuing operations attributable to Global Payments

$   61,181

$           6,451

$         67,632

Diluted shares

78,876

78,876

Diluted earnings per share

$       0.78

$             0.08

$             0.86

Three Months Ended November 30, 2010

GAAP

Employee

Termination and

Other(2)

Foreign Tax Rate

Cash Earnings

Adjustments(1)

Cash Earnings

Revenues

$ 443,526

$                  -

$                 -

$              -

$       443,526

Operating expenses:

  Cost of service

154,205

(1,230)

-

(7,972)

145,003

  Sales, general and administrative

206,178

(2,753)

-

-

203,425

360,383

(3,983)

-

(7,972)

348,428

Operating income

83,143

3,983

-

7,972

95,098

Other income (expense):

  Interest and other income

4,072

-

-

-

4,072

  Interest and other expense

(4,299)

-

-

-

(4,299)

(227)

-

-

-

(227)

Income from continuing operations before income taxes

82,916

3,983

-

7,972

94,871

Provision for income taxes

(24,546)

(1,436)

(2,861)

(28,843)

Income from continuing operations

58,370

2,547

-

5,111

66,028

Less: Net income attributable to noncontrolling interests, net of tax

(4,378)

-

-

(323)

(4,701)

Net income from continuing operations attributable to Global Payments

$   53,992

$            2,547

$                 -

$         4,788

$         61,327

Diluted shares

80,344

80,344

Diluted earnings per share

$       0.67

$              0.03

$                 -

$           0.06

$             0.76

(1) Represents adjustments to cost of service to exclude acquisition intangible amortization expense from continuing operations and the related income tax benefit.

(2) Reflects expenses of start-up costs related to our new Global Service Center in Manila, Philippines and employee termination and relocation benefits and the related income tax benefits.

We supplemented our reporting of income from continuing operations and the related earnings per share information determined in accordance with GAAP by reporting income from continuing operations and the related earnings per share for the three months ended November 30, 2011 and 2010 on a "cash earnings" basis in this earnings release as a measure to help evaluate performance. We calculated November 30, 2011 income from continuing operations and earnings per share on a cash basis by excluding acquisition intangible amortization from our results.  We calculated November 30, 2010 income from continuing operations and earnings per share on a cash basis by excluding charges related to employee termination and relocation benefits, certain one-time costs related to our Global Service Center, and acquisition intangible amortization from our results. We exclude these charges in order to more clearly focus on the factors we believe are pertinent to the daily management of our operations. Our income from continuing operations and earnings per share reported on a cash earnings basis should be considered in addition to, and not as a substitute for, income from continuing operations and earnings per share determined in accordance with GAAP. Our measures of income from continuing operations and earnings per share on a cash earnings basis reflect management’s judgment of particular items, and may not be comparable to similarly titled measures reported by other companies.

SCHEDULE 7

RECONCILIATION OF YEAR TO DATE CASH EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS TO GAAP

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands, except per share data)

Six Months Ended November 30, 2011

GAAP

Cash Earnings

Adjustments(1)

Cash Earnings

Revenues

$ 1,073,276

$                -

$    1,073,276

Operating expenses:

  Cost of service

377,467

(24,796)

352,671

  Sales, general and administrative

490,619

-

490,619

868,086

(24,796)

843,290

Operating income

205,190

24,796

229,986

Other income (expense):

  Interest and other income

4,760

-

4,760

  Interest and other expense

(8,965)

-

(8,965)

(4,205)

-

(4,205)

Income from continuing operations before income taxes

200,985

24,796

225,781

Provision for income taxes

(60,755)

(7,496)

(68,251)

Income from continuing operations

140,230

17,300

157,530

Less: Net income attributable to noncontrolling interests, net of tax

(15,075)

(4,010)

(19,085)

Net income from continuing operations attributable to Global Payments

$    125,155

$         13,290

$       138,445

Diluted shares

79,831

79,831

Diluted earnings per share

$          1.57

$             0.18

$             1.73

Six Months Ended November 30, 2010

GAAP

Employee

Termination and

Other(2)

Foreign Tax

Rate(3)

Cash Earnings

Adjustments(1)

Cash Earnings

Revenues

$    883,665

$                            -

$                      -

$                -

$       883,665

Operating expenses:

  Cost of service

305,246

(1,826)

-

(15,646)

287,774

  Sales, general and administrative

413,168

(5,347)

-

-

407,821

718,414

(7,173)

-

(15,646)

695,595

Operating income

165,251

7,173

-

15,646

188,070

Other income (expense):

  Interest and other income

5,608

-

-

-

5,608

  Interest and other expense

(9,140)

-

-

-

(9,140)

(3,532)

-

-

-

(3,532)

Income from continuing operations before income taxes

161,719

7,173

-

15,646

184,538

Provision for income taxes

(49,527)

(2,598)

2,479

(5,147)

(54,793)

Income from continuing operations

112,192

4,575

2,479

10,499

129,745

Less: Net income attributable to noncontrolling interests, net of tax

(8,804)

-

-

(636)

(9,440)

Net income from continuing operations attributable to Global Payments

$    103,388

$                      4,575

$                2,479

$           9,863

$       120,305

Diluted shares

80,310

80,310

Diluted earnings per share

$          1.29

$                        0.06

$                  0.03

$             0.12

$             1.50

(1) Represents adjustments to cost of service to exclude acquisition intangible amortization expense from continuing operations and the related income tax benefit.

(2) Reflects expenses of start-up costs related to our new Global Service Center in Manila, Philippines and employee termination and relocation benefits and the related income tax benefits.

(3) Represents a one-time, non-cash write-down of a deferred tax asset we established in July 2009 when we purchased the remaining 49% of our UK business.  The write-down resulted from a legislated reduction to the tax rate of 1%.  

We supplemented our reporting of income from continuing operations and the related earnings per share information determined in accordance with GAAP by reporting income from continuing operations and the related earnings per share for the six months ended November 30, 2011 and 2010 on a "cash earnings" basis in this earnings release as a measure to help evaluate performance. We calculated November 30, 2011 income from continuing operations and earnings per share on a cash basis by excluding acquisition intangible amortization from our results.  We calculated November 30, 2010 income from continuing operations and earnings per share on a cash basis by excluding charges related to employee termination and relocation benefits, certain one-time costs related to our Global Service Center, the legislated tax rate reduction and acquisition intangible amortization from our results. We exclude these charges in order to more clearly focus on the factors we believe are pertinent to the daily management of our operations. Our income from continuing operations and earnings per share reported on a cash earnings basis should be considered in addition to, and not as a substitute for, income from continuing operations and earnings per share determined in accordance with GAAP. Our measures of income from continuing operations and earnings per share on a cash earnings basis reflect management’s judgment of particular items, and may not be comparable to similarly titled measures reported by other companies.

SCHEDULE 8 

RECONCILIATION OF CASH EARNINGS SEGMENT INFORMATION TO GAAP

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)

Three Months Ended November 30,

2011

2010

GAAP

Cash Earnings

Adjustments(1)

Cash Earnings

GAAP

Employee

Termination

and Other(2)

Cash Earnings

Adjustments(1)

Cash Earnings

Revenues:

United States

$    293,416

$                -

$        293,416

$ 245,671

$                  -

$                -

$        245,671

Canada

85,521

-

85,521

81,453

-

-

81,453

North America merchant services

378,937

-

378,937

327,124

-

-

327,124

Europe

115,169

-

115,169

79,881

-

-

79,881

Asia-Pacific

36,399

-

36,399

36,521

-

-

36,521

International merchant services

151,568

-

151,568

116,402

-

-

116,402

Total revenues

$    530,505

$                -

$        530,505

$ 443,526

$                  -

$                -

$        443,526

Operating income:

North America merchant services

$      70,673

$           2,822

$          73,495

$   67,131

$                  -

$           3,156

$          70,287

International merchant services

44,494

9,331

53,825

35,349

-

4,816

40,165

Corporate

(18,587)

-

(18,587)

(19,337)

3,983

-

(15,354)

Operating income

$      96,580

$         12,153

$        108,733

$   83,143

$             3,983

$           7,972

$          95,098

Six Months Ended November 30,

2011

2010

GAAP

Cash Earnings

Adjustments(1)

Cash Earnings

GAAP

Employee

Termination and

Other(2)

Cash Earnings

Adjustments(1)

Cash Earnings

Revenues:

United States

$    580,841

$                -  

$        580,841

$ 501,302

$                  -  

$                -  

$        501,302

Canada

      176,742

                  -  

          176,742

   162,666

                    -  

                  -  

          162,666

North America merchant services

      757,583

                  -  

          757,583

   663,968

                    -  

                  -  

          663,968

Europe

      244,583

                  -  

          244,583

   153,677

                    -  

                  -  

          153,677

Asia-Pacific

        71,110

                  -  

            71,110

     66,020

                    -  

                  -  

            66,020

International merchant services

      315,693

                  -  

          315,693

   219,697

                    -  

                  -  

          219,697

Total revenues

$ 1,073,276

$                -  

$     1,073,276

$ 883,665

$                  -  

$                -  

$        883,665

Operating income:

North America merchant services

$    142,431

$           5,680

$        148,111

$ 135,499

$                  -  

$           6,173

$        141,672

International merchant services

      100,152

           19,116

          119,268

     66,742

                    -  

             9,473

            76,215

Corporate

      (37,393)

                  -  

          (37,393)

   (36,990)

               7,173

                  -  

          (29,817)

Operating income

$    205,190

$         24,796

$        229,986

$ 165,251

$             7,173

$         15,646

$        188,070

(1) Represents acquisition intangible amortization expense.

(2) Represents start-up costs related to our Global Service Center in Manila, Philippines and expenses related to employee termination and relocation benefits.

SCHEDULE 9

OUTLOOK SUMMARY

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In millions, except per share data)

Fiscal 2011

Actual

Fiscal 2012

Outlook

% Change

FY11

Revenue Outlook

Revenues

$                 1,860

$2,150 to $2,200

16% to 18%

EPS Outlook

GAAP diluted EPS

$                   2.61

$3.14 to $3.22

20% to 23%

Acquisition-related intangibles and non-recurring items (1)

0.47

$0.36

---

Cash EPS

$                   3.08

$3.50 to $3.58

14% to 16%

(1) Fiscal 2012 reflects $0.36 in acquisition-related intangibles and currently no non-recurring items.  Acquisition-related intangibles accounted for $0.31 in fiscal 2011 and non-recurring items $0.16.  

SOURCE Global Payments Inc.



RELATED LINKS

http://www.globalpaymentsinc.com