Global Payments Reports Second Quarter Earnings

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

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