Global Payments Reports Third Quarter Earnings

Apr 02, 2012, 06:30 ET from Global Payments Inc.

ATLANTA, April 2, 2012 /PRNewswire/ -- Global Payments Inc. (NYSE: GPN) today announced results for its fiscal third quarter ended February 29, 2012.  For the third quarter, revenues grew 17% to $533.5 million compared to $456.4 million in the prior fiscal year.  Cash earnings per share grew 17% to $0.83 compared to $0.71 in the prior year (See Schedule 2 for Cash Earnings).  On a GAAP basis, the company reported fiscal 2012 third quarter diluted earnings per share growth of 24% to $0.73 compared to $0.59 in the prior year (See Schedule 1 for GAAP Consolidated Statements of Income).

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

Chairman and CEO Paul R. Garcia stated, "We delivered solid third quarter results driven by continued steady performances in our US and International businesses."

David E. Mangum, Senior Executive Vice President and CFO, stated, "We continue to expect our annual revenue for fiscal 2012 to be $2,150 million to $2,200 million, or 16% to 18% growth over fiscal 2011 and fiscal 2012 diluted earnings per share on a cash basis to be a range of $3.50 to $3.58, reflecting 14% to 16% growth over fiscal 2011.  We now expect GAAP diluted earnings per share of $3.10 to $3.18 representing 19% to 22% growth over the prior year and reflecting some planned cost saving initiatives for our fourth quarter."  (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 discuss financial results and business highlights on today's scheduled call, April 2, 2012 at 8:00 a.m. EDT.  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 April 18, 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: the results of the investigation of the unauthorized access of a portion of our processing system announced on March 30, 2012, and the impact on our results of operations; 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

Nine Months Ended  

February 29,

2012

February 28,

2011

% Change

February 29,

2012

February 28,

2011

% Change

Revenues

$             533,539

$             456,382

17%

$          1,606,815

$          1,340,047

20%

Operating expenses:

    Cost of service

194,218

168,332

15%

571,685

473,578

21%

    Sales, general and administrative

246,973

209,851

18%

737,593

623,019

18%

441,191

378,183

17%

1,309,278

1,096,597

19%

Operating income

92,348

78,199

18%

297,537

243,450

22%

Other income (expense):

    Interest and other income

2,368

1,631

45%

7,128

7,239

(2%)

    Interest and other expense

(3,698)

(4,315)

(14%)

(12,663)

(13,455)

(6%)

(1,330)

(2,684)

(50%)

(5,535)

(6,216)

(11%)

Income from continuing operations before income taxes

91,018

75,515

21%

292,002

237,234

23%

Provision for income taxes

(25,328)

(20,962)

21%

(86,082)

(70,489)

22%

Income from continuing operations

65,690

54,553

20%

205,920

166,745

23%

Loss  from discontinued operations, net of tax

-

(430)

NM

-

(946)

NM

Net income including noncontrolling interests

65,690

54,123

21%

205,920

165,799

24%

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

(7,770)

(6,334)

23%

(22,845)

(15,138)

51%

         Net income attributable to Global Payments

$               57,920

$               47,789

21%

$             183,075

$             150,661

22%

Amounts attributable to Global Payments:

   Income from continuing operations

$               57,920

$               48,219

20%

$             183,075

$             151,607

21%

   Loss  from discontinued operations, net of tax

-

(430)

NM

-

(946)

NM

         Net income attributable to Global Payments

$               57,920

$               47,789

21%

$             183,075

$             150,661

22%

Basic earnings per share attributable to Global Payments:

   Income from continuing operations

$                   0.74

$                   0.60

23%

$                   2.32

$                   1.90

22%

   Loss  from discontinued operations, net of tax

-

-

NM

-

(0.01)

NM

         Net income attributable to Global Payments

$                   0.74

$                   0.60

23%

$                   2.32

$                   1.89

23%

Diluted earnings per share attributable to Global Payments:

   Income from continuing operations

$                   0.73

$                   0.60

22%

$                   2.30

$                   1.89

22%

   Loss  from discontinued operations, net of tax

-

(0.01)

NM

-

(0.02)

NM

         Net income attributable to Global Payments

$                   0.73

$                   0.59

24%

$                   2.30

$                   1.87

23%

Weighted average shares outstanding:

         Basic

78,421

79,897

78,937

79,711

         Diluted

79,065

80,733

79,511

80,413

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

Nine Months Ended

February 29,

2012

February 28,

2011

% Change

February 29,

2012

February 28,

2011

% Change

Revenues

$             533,539

$             456,382

17%

$          1,606,815

$          1,340,047

20%

Operating expenses:

    Cost of service

181,338

156,082

16%

534,009

444,031

20%

    Sales, general and administrative

246,973

206,694

19%

737,593

614,340

20%

428,311

362,776

18%

1,271,602

1,058,371

20%

Operating income

105,228

93,606

12%

335,213

281,676

19%

Other income (expense):

    Interest and other income

2,368

1,631

45%

7,128

7,239

(2%)

    Interest and other expense

(3,698)

(4,315)

(14%)

(12,663)

(13,455)

(6%)

(1,330)

(2,684)

(50%)

(5,535)

(6,216)

(11%)

Income from continuing operations before income taxes

103,898

90,922

14%

329,678

275,460

20%

Provision for income taxes

(28,912)

(25,214)

15%

(97,163)

(80,027)

21%

Income from continuing operations including noncontrolling interests

74,986

65,708

14%

232,515

195,433

19%

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

(9,671)

(8,121)

19%

(28,756)

(17,561)

64%

Net income from continuing operations attributable to Global Payments

$               65,315

$               57,587

13%

$             203,759

$             177,872

15%

Basic earnings per share

$                   0.83

$                   0.72

15%

$                   2.58

$                   2.23

16%

Diluted earnings per share

$                   0.83

$                   0.71

17%

$                   2.56

$                   2.21

16%

Weighted average shares outstanding:

         Basic

78,421

79,897

78,937

79,711

         Diluted

79,065

80,733

79,511

80,413

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

February 29, 2012

February 28, 2011

% Change

GAAP

Cash

Earnings

GAAP

Cash

Earnings

GAAP

Cash

Earnings

Revenues:

United States

$    302,105

$        302,105

$    249,194

$        249,194

21%

21%

Canada

76,677

76,677

81,066

81,066

(5%)

(5%)

North America merchant services

378,782

378,782

330,260

330,260

15%

15%

Europe

116,196

116,196

90,531

90,531

28%

28%

Asia-Pacific

38,561

38,561

35,591

35,591

8%

8%

International merchant services

154,757

154,757

126,122

126,122

23%

23%

Total revenues

$    533,539

$        533,539

$    456,382

$        456,382

17%

17%

Operating income:

North America merchant services

$      62,462

$          65,697

$      62,916

$          66,122

(1%)

(1%)

International merchant services

47,911

57,556

35,537

44,171

35%

30%

Corporate

(18,025)

(18,025)

(20,254)

(16,687)

11%

(8%)

Operating income

$      92,348

$        105,228

$      78,199

$          93,606

18%

12%

Nine Months Ended

February 29, 2012

February 28, 2011

% Change

GAAP

Cash

Earnings

GAAP

Cash

Earnings

GAAP

Cash

Earnings

Revenues:

United States

$    882,946

$        882,946

$    750,495

$        750,495

18%

18%

Canada

253,419

253,419

243,733

243,733

4%

4%

North America merchant services

1,136,365

1,136,365

994,228

994,228

14%

14%

Europe

360,779

360,779

244,208

244,208

48%

48%

Asia-Pacific

109,671

109,671

101,611

101,611

8%

8%

International merchant services

470,450

470,450

345,819

345,819

36%

36%

Total revenues

$ 1,606,815

$     1,606,815

$ 1,340,047

$     1,340,047

20%

20%

Operating income:

North America merchant services

$    204,893

$        213,808

$    198,415

$        207,793

3%

3%

International merchant services

148,063

176,824

102,279

120,387

45%

47%

Corporate

(55,419)

(55,419)

(57,244)

(46,504)

3%

(19%)

Operating income

$    297,537

$        335,213

$    243,450

$        281,676

22%

19%

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

SCHEDULE 4

CONSOLIDATED BALANCE SHEETS

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)

February 29,

May 31,

2012

2011

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$    735,733

$ 1,354,285

Accounts receivable, net of allowances for doubtful accounts of $424 and $472, respectively

156,038

166,540

Claims receivable, net of allowance for losses of $4,417 and $3,870, respectively

1,153

914

Settlement processing assets

179,515

280,359

Inventory

12,380

7,640

Deferred income taxes

3,943

2,946

Prepaid expenses and other current assets

37,737

35,291

Total current assets

1,126,499

1,847,975

Goodwill

760,972

779,637

Other intangible assets, net of accumulated amortization of $230,173 and $197,066, respectively

318,843

341,500

Property and equipment, net of accumulated depreciation of $176,696 and $147,670, respectively

288,428

256,301

Deferred income taxes

98,585

104,140

Other

23,644

20,978

Total assets

$ 2,616,971

$ 3,350,531

LIABILITIES AND EQUITY

Current liabilities:

Lines of credit

$    215,716

$    270,745

Current portion of long-term debt

82,505

85,802

Accounts payable and accrued liabilities

213,613

241,578

Settlement processing obligations

221,247

838,565

Income taxes payable

19,289

7,674

 Total current liabilities

752,370

1,444,364

Long-term debt

177,846

268,217

Deferred income taxes

120,748

116,432

Other long-term liabilities

56,803

49,843

Total liabilities

1,107,767

1,878,856

Commitments and contingencies

Redeemable noncontrolling interest

141,897

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; 78,545,273 issued

and outstanding at February 29, 2012 and 80,334,781 issued and

outstanding at May 31, 2011

-

-

Paid-in capital

354,191

419,591

Retained earnings

842,487

685,624

Accumulated other comprehensive income

33,299

79,320

     Total Global Payments shareholders' equity

1,229,977

1,184,535

Noncontrolling interest

137,330

153,282

Total equity

1,367,307

1,337,817

Total liabilities and equity

$ 2,616,971

$ 3,350,531

SCHEDULE 5

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)

Nine Months Ended

February 29, 2012

February 28, 2011

Cash flows from operating activities:

Net income including noncontrolling interests

$             205,920

$             165,799

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

Depreciation and amortization of property and equipment

35,821

29,033

Amortization of acquired intangibles

37,676

27,486

Provision for operating losses and bad debts

18,833

15,301

Share-based compensation expense

12,796

11,748

Deferred income taxes

5,858

3,639

Loss on disposal of discontinued operations

-

602

Other, net

(949)

(3,362)

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

Accounts receivable

10,502

(5,836)

Claims receivable

(11,744)

(11,534)

Settlement processing assets and obligations, net

(523,802)

444,174

Inventory

(4,773)

(69)

Prepaid expenses and other assets

(2,388)

(7,997)

Accounts payable and other accrued liabilities

(22,211)

45,182

Income taxes payable

11,615

19,125

Net cash (used in) provided by operating activities

(226,846)

733,291

Cash flows from investing activities:

Business, intangible and other asset acquisitions, net of cash acquired

(44,245)

(167,775)

Capital expenditures

(71,084)

(77,095)

Preliminary settlement of working capital adjustments from disposition of business

-

(1,921)

Net decrease in financing receivables

1,862

1,514

Net cash used in investing activities

(113,467)

(245,277)

Cash flows from financing activities:

Net (payments) borrowings on lines of credit

(55,029)

109,774

Proceeds from issuance of long-term debt

71,374

202,155

Principal payments under long-term debt

(162,482)

(248,996)

Proceeds from stock issued under employee stock plans

9,630

12,072

Common stock repurchased - share-based compensation plans

(4,847)

-

Repurchase of common stock

(99,604)

(14,900)

Tax benefit from employee share-based compensation

2,036

1,335

Distribution to noncontrolling interests

(24,334)

(6,650)

Dividends paid

(4,740)

(4,782)

Net cash (used in) provided by financing activities

(267,996)

50,008

Effect of exchange rate changes on cash

(10,243)

21,097

Decrease in cash and cash equivalents

(618,552)

559,119

Cash and cash equivalents, beginning of period

1,354,285

769,946

Cash and cash equivalents, end of period

$             735,733

$          1,329,065

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 February 29, 2012

GAAP

Cash Earnings

Adjustments(1)

Cash Earnings

Revenues

$ 533,539

$                -

$       533,539

Operating expenses:

  Cost of service

194,218

(12,880)

181,338

  Sales, general and administrative

246,973

-

246,973

441,191

(12,880)

428,311

Operating income

92,348

12,880

105,228

Other income (expense):

  Interest and other income

2,368

-

2,368

  Interest and other expense

(3,698)

-

(3,698)

(1,330)

-

(1,330)

Income from continuing operations before income taxes

91,018

12,880

103,898

Provision for income taxes

(25,328)

(3,584)

(28,912)

Income from continuing operations

65,690

9,296

74,986

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

(7,770)

(1,901)

(9,671)

Net income from continuing operations attributable to Global Payments

$   57,920

$           7,395

$         65,315

Diluted shares

79,065

79,065

Diluted earnings per share

$       0.73

$             0.10

$             0.83

Three Months Ended February 28, 2011

GAAP

Employee

Termination and

Other(2)

Foreign Tax Rate

Cash Earnings

Adjustments(1)

Cash Earnings

Revenues

$ 456,382

$                            -

$                    -

$                -

$       456,382

Operating expenses:

  Cost of service

168,332

(410)

-

(11,840)

156,082

  Sales, general and administrative

209,851

(3,157)

-

-

206,694

378,183

(3,567)

-

(11,840)

362,776

Operating income

78,199

3,567

-

11,840

93,606

Other income (expense):

  Interest and other income

1,631

-

-

-

1,631

  Interest and other expense

(4,315)

-

-

-

(4,315)

(2,684)

-

-

-

(2,684)

Income from continuing operations before income taxes

75,515

3,567

-

11,840

90,922

Provision for income taxes

(20,962)

(765)

(3,487)

(25,214)

Income from continuing operations

54,553

2,802

-

8,353

65,708

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

(6,334)

-

-

(1,787)

(8,121)

Net income from continuing operations attributable to Global Payments

$   48,219

$                      2,802

$                    -

$           6,566

$         57,587

Diluted shares

80,733

80,733

Diluted earnings per share

$       0.60

$                        0.03

$                    -

$             0.08

$             0.71

(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 February 29, 2012 and February 28, 2011 on a "cash earnings" basis in this earnings release as a measure to help evaluate performance. We calculated February 29, 2012 income from continuing operations and earnings per share on a cash basis by excluding acquisition intangible amortization from our results.  We calculated February 28, 2011 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)

Nine Months Ended February 29, 2012

GAAP

Cash Earnings

Adjustments(1)

Cash Earnings

Revenues

$ 1,606,815

$                -

$    1,606,815

Operating expenses:

  Cost of service

571,685

(37,676)

534,009

  Sales, general and administrative

737,593

-

737,593

1,309,278

(37,676)

1,271,602

Operating income

297,537

37,676

335,213

Other income (expense):

  Interest and other income

7,128

-

7,128

  Interest and other expense

(12,663)

-

(12,663)

(5,535)

-

(5,535)

Income from continuing operations before income taxes

292,002

37,676

329,678

Provision for income taxes

(86,082)

(11,081)

(97,163)

Income from continuing operations

205,920

26,595

232,515

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

(22,845)

(5,911)

(28,756)

Net income from continuing operations attributable to Global Payments

$    183,075

$         20,684

$       203,759

Diluted shares

79,511

79,511

Diluted earnings per share

$          2.30

$             0.26

$             2.56

Nine Months Ended February 28, 2011

GAAP

Employee

Termination and

Other(2)

Foreign Tax

Rate(3)

Cash Earnings

Adjustments(1)

Cash Earnings

Revenues

$ 1,340,047

$                            -

$                      -

$                -

$    1,340,047

Operating expenses:

  Cost of service

473,578

(2,061)

-

(27,486)

444,031

  Sales, general and administrative

623,019

(8,679)

-

-

614,340

1,096,597

(10,740)

-

(27,486)

1,058,371

Operating income

243,450

10,740

-

27,486

281,676

Other income (expense):

  Interest and other income

7,239

-

-

-

7,239

  Interest and other expense

(13,455)

-

-

-

(13,455)

(6,216)

-

-

-

(6,216)

Income from continuing operations before income taxes

237,234

10,740

-

27,486

275,460

Provision for income taxes

(70,489)

(3,384)

2,479

(8,633)

(80,027)

Income from continuing operations

166,745

7,356

2,479

18,853

195,433

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

(15,138)

-

-

(2,423)

(17,561)

Net income from continuing operations attributable to Global Payments

$    151,607

$                      7,356

$                2,479

$         16,430

$       177,872

Diluted shares

80,413

80,413

Diluted earnings per share

$          1.89

$                        0.09

$                  0.03

$             0.20

$             2.21

(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 nine months ended February 29, 2012 and February 28, 2011 on a "cash earnings" basis in this earnings release as a measure to help evaluate performance. We calculated February 29, 2012 income from continuing operations and earnings per share on a cash basis by excluding acquisition intangible amortization from our results.  We calculated February 28, 2011 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 February 29, 2012

Three Months Ended February 28, 2011

GAAP

Cash Earnings

Adjustments(1)

Cash Earnings

GAAP

Employee

Termination

and Other(2)

Cash Earnings

Adjustments(1)

Cash Earnings

Revenues:

United States

$                   302,105

$                          -

$                  302,105

$                   249,194

$                           -

$                     -

$                  249,194

Canada

76,677

-

76,677

81,066

-

-

81,066

North America merchant services

378,782

-

378,782

330,260

-

-

330,260

Europe

116,196

-

116,196

90,531

-

-

90,531

Asia-Pacific

38,561

-

38,561

35,591

-

-

35,591

International merchant services

154,757

-

154,757

126,122

-

-

126,122

Total revenues

$                   533,539

$                           -

$                  533,539

$                   456,382

$                           -

$                     -

$                  456,382

Operating income:

North America merchant services

$                     62,462

$                   3,235

$                    65,697

$                     62,916

$                           -

$             3,206

$                    66,122

International merchant services

47,911

9,645

57,556

35,537

-

8,634

44,171

Corporate

(18,025)

-

(18,025)

(20,254)

3,567

-

(16,687)

Operating income

$                     92,348

$                 12,880

$                  105,228

$                     78,199

$                      3,567

$          11,840

$                    93,606

Nine Months Ended February 29, 2012

Nine Months Ended February 28, 2011

GAAP

Cash Earnings

Adjustments(1)

Cash Earnings

GAAP

Employee

Termination

and Other(2)

Cash Earnings

Adjustments(1)

Cash Earnings

Revenues:

United States

$                   882,946

$                         -

$                  882,946

$                   750,495

$                           -

$                  -

$                  750,495

Canada

253,419

-

253,419

243,733

-

-

243,733

North America merchant services

1,136,365

-

1,136,365

994,228

-

-

994,228

Europe

360,779

-

360,779

244,208

-

-

244,208

Asia-Pacific

109,671

-

109,671

101,611

-

-

101,611

International merchant services

470,450

-

470,450

345,819

-

-

345,819

Total revenues

$                1,606,815

$                          -

$               1,606,815

$                1,340,047

$                           -

$                 -

$               1,340,047

Operating income:

North America merchant services

$                   204,893

$                  8,915

$                  213,808

$                   198,415

$                           -

$         9,378

$                  207,793

International merchant services

148,063

28,761

176,824

102,279

-

18,108

120,387

Corporate

(55,419)

-

(55,419)

(57,244)

10,740

-

(46,504)

Operating income

$                   297,537

$                37,676

$                  335,213

$                   243,450

$                    10,740

$       27,486

$                  281,676

(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

$3.10 to $3.18

19% to 22%

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

0.47

$0.40

---

Cash EPS

$                   3.08

$3.50 to $3.58

14% to 16%

(1)  Fiscal 2012 reflects $0.36 of acquisition-related intangibles and $0.04 of 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