Global Payments Reports Third Quarter Earnings for Fiscal 2013, Reaffirms Fiscal 2013 Annual Revenue and Cash Earnings Expectations

ATLANTA, April 2, 2013 /PRNewswire/ -- Global Payments Inc. (NYSE: GPN), a leading, worldwide provider of electronic transaction processing solutions, today announced results for its fiscal third quarter ended February 28, 2013. 

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

Third Quarter 2013 Summary

  • Revenue grew 8% to $578.7 million compared to $533.5 million in the third quarter of 2012.
  • Cash diluted earnings per share1 grew 5% to $0.87 compared to $0.83 in the third quarter of 2012.
  • GAAP diluted earnings per share were $0.75, compared to $0.73 in the third quarter of 2012.

Chairman and CEO Paul R. Garcia said, "We are pleased with the progress we have made on our strategic initiatives, and we are on track to achieve our full-year earnings expectations in 2013. These initiatives include focusing on expanding distribution channels through our partner of choice strategy, leveraging our technology infrastructure and driving innovation. We recently launched a number of innovative mobility and loyalty products to our worldwide merchants, and we are fully focused on expanding our unparalleled global footprint."

Data Remediation Expense Update
During the third quarter, the company was returned to the list of PCI DSS compliant service providers and received reports on compliance covering all of the systems that process, store, transmit or otherwise utilize card data.  The company expects that net full-year 2013 expenses for the data intrusion will total approximately $20 million. Based on the assumption that the company will receive an additional  $10 million of insurance proceeds in fiscal 2014, the company estimates that the total cost for the processing system intrusion since inception will be approximately $95 million.

David Mangum, Senior Executive Vice President and CFO, stated,  "Now that the remediation work is behind us, we can turn our undivided attention to driving the business forward. We are grateful to our customers, partners and the card networks for their support as well as the significant efforts of our team."

2013 Outlook
For the full-year of fiscal 2013, the company continues to expect annual revenue of $2,360 million to $2,400 million, or 7% to 9% growth over fiscal 2012 and expected diluted earnings per share on a cash basis continue to be in a range of $3.64 to $3.71, or growth of 3% to 5% over fiscal 2012.

Annual fiscal 2013 GAAP diluted earnings per share have been revised to include the estimated impact of net intrusion remediation costs of $0.17 per share and are now expected to be in a range of $2.87 to $2.94

For reconciliation of expected full-year fiscal 2013 Cash Earnings to GAAP and constant currency, see schedule 9.

Conference Call
Global Payments will hold a conference call today, April 2, 2013 at 5:00 p.m. EDT to discuss financial results and business highlights.  Callers may access the conference call via the investor relations page of the company's website 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 website through April 16, 2013.  

About Global Payments
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 effect on our results of operations of continued security enhancements to our processing system; foreign currency risks which become increasingly relevant as we expand internationally; the effect of current domestic and worldwide economic conditions, including sovereign insolvency situations and a decline in the value of the U.S. dollar, and future performance and integration of acquisitions, and other risks detailed in our SEC filings, including the most recently filed Form 10-K.  We undertake no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.

 


Investor contact:

investor.relations@globalpay.com

Media contact:

media.relations@globalpay.com

Jane Elliott

Kay Sharpton


Amy Corn

770-829-8234

770-829-8870


770-829-8755

 

1 See Schedule 2 for Cash Earnings and Schedules 6 and 7 for Reconciliations of Cash Earnings to GAAP.

 

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 28, 2013


February 29, 2012


% Change


February 28, 2013


February 29, 2012


% Change













Revenues

578,746



533,539



8

%


1,757,571



1,606,815



9

%













Operating expenses:












Cost of service

217,465



194,218



12

%


632,124



571,685



11

%

Sales, general and administrative

271,696



246,973



10

%


829,292



737,593



12

%

Processing system intrusion

(1,189)





NM



8,311





NM



487,972



441,191



11

%


1,469,727



1,309,278



12

%













Operating income

90,774



92,348



(2)

%


287,844



297,537



(3)

%













Other income (expense):












Interest and other income

2,536



2,368



7

%


6,706



7,128



(6)

%

Interest and other expense

(7,063)



(3,698)



91

%


(25,217)



(12,663)



99

%


(4,527)



(1,330)



240

%


(18,511)



(5,535)



234

%













Income before income taxes

86,247



91,018



(5)

%


269,333



292,002



(8)

%

Provision for income taxes

(23,433)



(25,328)



(7)

%


(76,986)



(86,082)



(11)

%

Net income

62,814



65,690



(4)

%


192,347



205,920



(7)

%

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

(4,352)



(7,770)



(44)

%


(17,027)



(22,845)



(25)

%

Net income attributable to Global Payments

58,462



57,920



1

%


175,320



183,075



(4)

%













Earnings per share attributable to Global Payments:












Basic

$

0.75



$

0.74



1

%


$

2.24



$

2.32



(3)

%

Diluted

$

0.75



$

0.73



3

%


$

2.23



$

2.30



(3)

%













Weighted average shares outstanding:












Basic

77,756



78,421





78,364



78,937




Diluted

78,324



79,065





78,747



79,511




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 28, 2013


February 29, 2012


% Change


February 28, 2013


February 29, 2012


% Change













Revenues

$

578,746



$

533,539



8

%


$

1,757,571



$

1,606,815



9

%













Operating expenses:












Cost of service

200,935



181,338



11

%


589,872



534,009



10

%

Sales, general and administrative

271,696



246,973



10

%


828,492



737,593



12

%


472,631



428,311



10

%


1,418,364



1,271,602



12

%













Operating income

106,115



105,228



1

%


339,207



335,213



1

%













Other income (expense):












Interest and other income

2,536



2,368



7

%


6,706



7,128



(6)

%

Interest and other expense

(7,063)



(3,698)



91

%


(16,834)



(12,663)



33

%


(4,527)



(1,330)



240

%


(10,128)



(5,535)



83

%













Income before income taxes

101,588



103,898



(2)

%


329,079



329,678




Provision for income taxes

(27,662)



(28,912)



(4)

%


(93,601)



(97,163)



(4)

%

Net income

73,926



74,986



(1)

%


235,478



232,515



1

%

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

(5,993)



(9,671)



(38)

%


(25,164)



(28,756)



(12)

%

Net income attributable to Global Payments

$

67,933



$

65,315



4

%


$

210,314



$

203,759



3

%

























Basic earnings per share

$

0.87



$

0.83



5

%


$

2.68



$

2.58



4

%













Diluted earnings per share

$

0.87



$

0.83



5

%


$

2.67



$

2.56



4

%













Weighted average shares outstanding:












Basic

77,756



78,421





78,364



78,937




Diluted

78,324



79,065





78,747



79,511




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

 

SCHEDULE 3
SEGMENT INFORMATION
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)



Three Months Ended







February 28, 2013


February 29, 2012


% Change




GAAP


Cash
Earnings


GAAP


Cash
Earnings


GAAP


Cash Earnings














Revenues:













United States


$

336,354



$

336,354



$

302,105



$

302,105



11

%


11

%

Canada


72,218



72,218



76,677



76,677



(6)

%


(6)

%

North America merchant services


408,572



408,572



378,782



378,782



8

%


8

%














Europe


130,750



130,750



116,196



116,196



13

%


13

%

Asia-Pacific


39,424



39,424



38,561



38,561



2

%


2

%

International merchant services


170,174



170,174



154,757



154,757



10

%


10

%














Total revenues


$

578,746



$

578,746



$

533,539



$

533,539



8

%


8

%














Operating income:













North America merchant services


$

55,478



$

63,210



$

62,462



$

65,697



(11)

%


(4)

%

International merchant services


51,820



60,618



47,911



57,556



8

%


5

%

Corporate1


(16,524)



(17,713)



(18,025)



(18,025)



8

%


2

%

Operating income


$

90,774



$

106,115



$

92,348



$

105,228



(2)

%


1

%





























Nine Months Ended







February 28, 2013


February 29, 2012


% Change




GAAP


Cash
Earnings


GAAP


Cash
Earnings


GAAP


Cash Earnings














Revenues:













United States


$

1,022,250



$

1,022,250



$

882,946



$

882,946



16

%


16

%

Canada


233,885



233,885



253,419



253,419



(8)

%


(8)

%

North America merchant services


1,256,135



1,256,135



1,136,365



1,136,365



11

%


11

%














Europe


390,376



390,376



360,779



360,779



8

%


8

%

Asia-Pacific


111,060



111,060



109,671



109,671



1

%


1

%

International merchant services


501,436



501,436



470,450



470,450



7

%


7

%














Total revenues


$

1,757,571



$

1,757,571



$

1,606,815



$

1,606,815



9

%


9

%














Operating income:













North America merchant services


$

189,809



$

207,933



$

204,893



$

213,808



(7)

%


(3)

%

International merchant services


162,947



187,819



148,063



176,824



10

%


6

%

Corporate1


(64,912)



(56,545)



(55,419)



(55,419)



(17)

%


(2)

%

Operating income


$

287,844



$

339,207



297,537



$

335,213



(3)

%


1

%

1 Fiscal 2013 GAAP amounts include a processing intrusion credit of $1.2 million for the three months ended February 28, 2013 and processing intrusion costs of $8.3 million for the nine months ended February 28, 2013.

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 28, 2013


May 31, 2012


(Unaudited)



ASSETS




Current assets:




Cash and cash equivalents

$

682,960



$

781,275


Accounts receivable, net of allowances for doubtful accounts of $478 and $532, respectively

166,271



182,962


Claims receivable, net of allowances for losses of $3,438 and $3,435, respectively

897



1,029


Settlement processing assets

208,471



217,994


Inventory

11,349



9,864


Deferred income taxes

6,350



21,969


Prepaid expenses and other current assets

70,564



33,646


Total current assets

1,146,862



1,248,739


Goodwill

1,051,614



724,687


Other intangible assets, net

412,995



290,188


Property and equipment, net of accumulated depreciation of $185,722 and $161,911, respectively

341,573



305,848


Deferred income taxes

93,626



97,235


Other

29,554



21,446


Total assets

$

3,076,224



$

2,688,143






LIABILITIES AND EQUITY




Current liabilities:




Lines of credit

$

167,152



$

215,391


Current portion of long-term debt

72,332



76,420


Accounts payable and accrued liabilities

227,367



316,313


Settlement processing obligations

201,190



216,878


Income taxes payable

5,787



12,283


Total current liabilities

673,828



837,285


Long-term debt

883,462



236,565


Deferred income taxes

162,389



106,644


Other long-term liabilities

71,307



62,306


Total liabilities

1,790,986



1,242,800


Commitments and contingencies




Redeemable noncontrolling interest



144,422


Equity:




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




Common stock, no par value; 200,000,000 shares authorized; 76,749,164 and 78,551,297 issued and
outstanding at February 28, 2013 and May 31, 2012, respectively




Paid-in capital

207,666



358,728


Retained earnings

946,195



843,456


Accumulated other comprehensive income (loss)

(6,774)



(30,000)


Total Global Payments shareholders' equity

1,147,087



1,172,184


Noncontrolling interest

138,151



128,737


Total equity

1,285,238



1,300,921


Total liabilities and equity

$

3,076,224



$

2,688,143


 

SCHEDULE 5
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)


Nine Months Ended


February 28, 2013


February 29, 2012

Cash flows from operating activities:




Net income

$

192,347



$

205,920


Adjustments to reconcile net income to net cash provided by (used in) operating activities:




Depreciation and amortization of property and equipment

40,856



35,821


Amortization of acquired intangibles

42,091



37,676


Share-based compensation expense

14,063



12,796


Provision for operating losses and bad debts

16,681



18,833


Deferred income taxes

27,282



5,858


Other, net

(3,692)



(949)


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




Accounts receivable

17,706



10,502


Claims receivable

(9,235)



(11,744)


Settlement processing assets and obligations, net

(12,028)



(523,802)


Inventory

(1,535)



(4,773)


Prepaid expenses and other assets

(34,898)



(2,388)


Accounts payable and other accrued liabilities

(78,375)



(22,211)


Income taxes payable

(6,496)



11,615


Net cash provided by (used in) operating activities

204,767



(226,846)


Cash flows from investing activities:




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

(433,427)



(44,245)


Capital expenditures

(75,016)



(71,084)


Net decrease in financing receivables

2,158



1,862


Net cash used in investing activities

(506,285)



(113,467)


Cash flows from financing activities:




Net payments on short-term lines of credit

(48,239)



(55,029)


Proceeds from issuance of long-term debt

1,085,327



71,374


Principal payments under long-term debt

(439,789)



(162,482)


Payment of debt issuance cost

(3,987)




Acquisition of redeemable noncontrolling interests

(242,000)




Proceeds from stock issued under share-based compensation plans

9,257



9,630


Common stock repurchased - share-based compensation plans

(10,215)



(4,847)


Repurchase of common stock

(137,653)



(99,604)


Tax benefit from employee share-based compensation

1,791



2,036


Distributions to noncontrolling interest

(13,656)



(24,334)


Dividends paid

(4,688)



(4,740)


Net cash provided by (used in) financing activities

196,148



(267,996)


Effect of exchange rate changes on cash

7,055



(10,243)


Decrease in cash and cash equivalents

(98,315)



(618,552)


Cash and cash equivalents, beginning of the period

781,275



1,354,285


Cash and cash equivalents, end of the period

$

682,960



$

735,733


 

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 28, 2013



GAAP

Processing System
Intrusion

Cash Earnings
Adjustments1

Cash Earnings

Revenues


$

578,746




$

578,746


Operating expenses:






Cost of service


217,465



(16,530)


200,935


Sales, general and administrative


271,696




271,696


Processing system intrusion


(1,189)


1,189






487,972


1,189


(16,530)


472,631


Operating income


90,774


(1,189)


16,530


106,115


Other income (expense):






Interest and other income


2,536




2,536


Interest and other expense


(7,063)




(7,063)




(4,527)




(4,527)


Income before income taxes


86,247


(1,189)


16,530


101,588


Provision for income taxes


(23,433)


232


(4,461)


(27,662)


Net income


62,814


(957)


12,069


73,926


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


(4,352)



(1,641)


(5,993)


Net income attributable to Global Payments


$

58,462


$

(957)


$

10,428


$

67,933


Diluted shares


78,324




78,324


Diluted earnings per share


$

0.75


$

(0.01)


$

0.13


$

0.87










Three Months Ended February 29, 2012



GAAP


Cash Earnings
Adjustments1

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 before income taxes


91,018



12,880


103,898


Provision for income taxes


(25,328)



(3,584)


(28,912)


Net income


65,690



9,296


74,986


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


(7,770)



(1,901)


(9,671)


Net income 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


1 Represents adjustments to cost of service to exclude acquisition intangible amortization expense and the related income tax benefit.

We supplemented our reporting of net income and the related earnings per share information determined in accordance with GAAP by reporting net income and the related earnings per share for the three months ended February 28, 2013 and February 29, 2012 on a "cash earnings" basis in this earnings release as a measure to help evaluate performance. We calculated February 28, 2013 net income and earnings per share on a cash basis by excluding credits related to the processing system intrusion and acquisition intangible amortization.  We calculated February 29, 2012 net income and earnings per share on a cash basis by excluding acquisition intangible amortization from our results. We exclude these items in order to more clearly focus on the factors we believe are pertinent to the daily management of our operations. Our net income and earnings per share reported on a cash earnings basis should be considered in addition to, and not as a substitute for, net income and earnings per share determined in accordance with GAAP. Our measures of net income 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 28, 2013



GAAP

Processing System Intrusion

Other2

Cash Earnings Adjustments1

Cash Earnings

Revenues


$

1,757,571





$

1,757,571


Operating expenses:







Cost of service


632,124



(161)


(42,091)


589,872


Sales, general and administrative


829,292



(800)



828,492


Processing system intrusion


8,311


(8,311)







1,469,727


(8,311)


(961)


(42,091)


1,418,364


Operating income


287,844


8,311


961


42,091


339,207


Other income (expense):







Interest and other income


6,706





6,706


Interest and other expense


(25,217)



8,383



(16,834)




(18,511)



8,383



(10,128)


Income before income taxes


269,333


8,311


9,344


42,091


329,079


Provision for income taxes


(76,986)


(3,048)


(1,533)


(12,034)


(93,601)


Net income


192,347


5,263


7,811


30,057


235,478


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


(17,027)



(3,594)


(4,543)


(25,164)


Net income attributable to Global Payments


$

175,320


$

5,263


$

4,217


$

25,514


$

210,314


Diluted shares


78,747





78,747


Diluted earnings per share


$

2.23


$

0.07


$

0.05


$

0.32


$

2.67











Nine Months Ended February 29, 2012



GAAP



Cash Earnings Adjustments1

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 before income taxes


292,002




37,676


329,678


Provision for income taxes


(86,082)




(11,081)


(97,163)


Net income


205,920




26,595


232,515


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


(22,845)




(5,911)


(28,756)


Net income 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


1 Represents adjustments to cost of service to exclude acquisition intangible amortization expense and the related income tax benefit.

2 Represents HSBC's share of GPAP dividends declared and one-time charges primarily related to employee termination benefits.

We supplemented our reporting of net income and the related earnings per share information determined in accordance with GAAP by reporting net income and the related earnings per share for the nine months ended February 28, 2013 and February 29, 2012 on a "cash earnings" basis in this earnings release as a measure to help evaluate performance. We calculated February 28, 2013 net income and earnings per share on a cash basis by excluding costs related to the processing system intrusion, acquisition intangible amortization, the dividend paid to HSBC that was classified as interest expense, and one-time charges related to employee termination benefits. We also adjusted the net income attributable to noncontrolling interests to include HSBC's share of August 2012 through November 2012 GPAP net income. We calculated February 29, 2012 net income and earnings per share on a cash basis by excluding 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 net income and earnings per share reported on a cash earnings basis should be considered in addition to, and not as a substitute for, net income and earnings per share determined in accordance with GAAP. Our measures of net income 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, except per share data)


Three Months Ended February 28, 2013


Three Months Ended February 29, 2012


GAAP

Processing System
Intrusion

Other

Cash Earnings Adjustments1

Cash Earnings


GAAP

Cash Earnings Adjustments1

Cash Earnings











Revenues:










United States

$

336,354


$


$


$


$

336,354



$

302,105


$


$

302,105


Canada

72,218





72,218



76,677



76,677


North America merchant services

408,572





408,572



378,782



378,782












Europe

130,750





130,750



116,196



116,196


Asia-Pacific

39,424





39,424



38,561



38,561


International merchant services

170,174





170,174



154,757



154,757












Total revenues

$

578,746


$


$


$


$

578,746



$

533,539


$


$

533,539












Operating income:










North America merchant services

$

55,478


$


$


$

7,732


$

63,210



62,462


$

3,235


$

65,697


International merchant services

51,820




8,798


60,618



47,911


9,645


57,556


Corporate

(16,524)


(1,189)




(17,713)



(18,025)



(18,025)


Operating income

$

90,774


$

(1,189)


$


$

16,530


$

106,115



92,348


$

12,880


$

105,228













Nine Months Ended February 28, 2013


Nine Months Ended February 29, 2012


GAAP

Processing System
Intrusion

Other2

Cash Earnings Adjustments1

Cash Earnings


GAAP

Cash Earnings Adjustments1

Cash Earnings











Revenues:










United States

$

1,022,250


$


$


$


$

1,022,250



$

882,946


$


$

882,946


Canada

233,885





233,885



253,419



253,419


North America merchant services

1,256,135





1,256,135



1,136,365



1,136,365












Europe

390,376





390,376



360,779



360,779


Asia-Pacific

111,060





111,060



109,671



109,671


International merchant services

501,436





501,436



470,450



470,450












Total revenues

$

1,757,571


$


$


$


$

1,757,571



$

1,606,815


$


$

1,606,815












Operating income:










North America merchant services

$

189,809


$


$

905


$

17,219


$

207,933



$

204,893


$

8,915


$

213,808


International merchant services

162,947




24,872


187,819



148,063


28,761


176,824


Corporate

(64,912)


8,311


56



(56,545)



(55,419)



(55,419)


Operating income

$

287,844


$

8,311


$

961


$

42,091


$

339,207



$

297,537


$

37,676


$

335,213


1 Represents acquisition intangible amortization expense.

2 Represents one-time charges primarily related to employee termination benefits.

 

SCHEDULE 9
OUTLOOK SUMMARY
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)



Fiscal 2012 Actual


Fiscal 2013 Outlook


% Change FY12








Revenue Outlook







Constant currency1


$

2,204



$2,385 to $2,425


8% to 10%

Foreign currency impact2


NA


$(25)



Total Revenues


$

2,204



$2,360 to $2,400


7% to 9%








EPS Outlook







Constant currency1


$

3.53



$3.70 to $3.77


5% to 7%

Foreign currency impact2


NA


$(0.06)



Cash EPS


$

3.53



$3.64 to $3.71


3% to 5%

Acquisition-related intangible assets, non-recurring items and processing system intrusion3


(1.16)



$(0.77)


(34)%

GAAP Diluted EPS


$

2.37



$2.87 to $2.94


21% to 24%

We supplement our fiscal 2013 outlook of total revenues and earnings per share information determined in accordance with GAAP by reporting revenues and earnings per share on a "constant currency" basis in this earnings release as a measure to help evaluate performance.  We calculated revenues and earnings per share on a constant currency basis by converting our fiscal 2013 expected revenues and expenses at fiscal 2012 exchange rates.  We exclude the impact of exchange rate fluctuations in order to more clearly focus on the factors we believe are pertinent to the daily management of our operations, and our management uses constant currency measures to evaluate the impact of operational business decisions.  Our revenues and earnings per share reported on a constant currency basis should be considered in addition to, and not as a substitute for, revenues and earnings per share determined in accordance with GAAP. Our measures of revenues and earnings per share on a constant currency basis reflect management's judgment of particular items, and may not be comparable to similarly titled measures reported by other companies.

1 Reflects current period and forecasted results on a pro forma basis as if foreign currency rates did not change from the comparable prior year period.

2 Reflects the impact of actual and forecasted changes in foreign currency rates from the comparable prior year period.

3 Fiscal 2013 reflects $0.60 of acquisition-related intangibles and non-recurring items and $0.17 of processing system intrusion costs.  Acquisition-related intangibles accounted and non-recurring items accounted for $0.48 in fiscal 2012 and processing intrusion costs $0.68

NA=Not Applicable

 

SOURCE Global Payments Inc.



RELATED LINKS
http://www.globalpaymentsinc.com

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