Global Payments Reports Third Quarter Earnings

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

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