ATLANTA, April 2 /PRNewswire-FirstCall/ -- Global Payments Inc. (NYSE: GPN) today announced results for its fiscal third quarter ended February 28, 2009. For the third quarter, revenues grew 26% to $392.7 million compared to $310.6 million in the prior year. Normalized diluted earnings per share grew 2% to $0.45 compared to $0.44 in the prior year quarter.
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These results include the unfavorable impact of foreign currency exchange rates during the quarter, and as such, the company included Schedule 9 to provide revenue and diluted earnings per share growth on a constant currency basis for both the quarter and the outlook for fiscal 2009. On a constant currency basis, revenues grew 38% and normalized diluted earnings per share grew 25% over the prior year quarter.
On a GAAP basis we reported revenue of $392.7 million and a loss per share of ($1.34). These results include a non-cash, pretax impairment charge relating to our money transfer business of $147.7 million which was recorded as a result of the company's annual FAS 142 Goodwill and Other Intangible Assets review. The fair value of the money transfer business has significantly declined due to ongoing challenging macroeconomic and immigrant labor trends.
Comments and Outlook
Chairman and CEO, Paul R. Garcia, stated, 'We achieved solid third quarter financial performance, in spite of continuing macroeconomic headwinds and unfavorable foreign currency trends. Our normalized results for the quarter were driven by the impact of our June 30, 2008 U.K. acquisition and strong results in our North America segment. North America continues to benefit from successful pricing initiatives in Canada and solid 15% transaction growth in the U.S.'
'We are maintaining our 2009 annual revenue guidance of $1,550 million to $1,580 million, or 22% to 24% growth over fiscal 2008. In addition, our constant currency expectations for revenue growth of 29% to 31% remain unchanged from last quarter. We are also reaffirming fiscal 2009 normalized diluted EPS guidance of $2.14 to $2.21, reflecting 8% to 12% growth over fiscal 2008 (see Schedule 6 for details). Our constant currency outlook for normalized diluted earnings per share growth of 21% to 25% for fiscal 2009 also remains unchanged, in spite of a challenging economic environment,' said Garcia.
Conference Call
Global Payments will hold a conference call today, April 2, 2009 at 5:00 p.m. EDT to discuss financial results and business highlights. Callers may access the conference call via the company's Web site at www.globalpaymentsinc.com by clicking the 'Webcast' button; or callers may dial 1-888-740-6140 and callers outside U.S. and Canada may dial 1-913-312-1269. The pass code is 'GPN.' A replay of the call may be accessed through the Global Payments' Web site through April 16, 2009.
Global Payments Inc. (NYSE: GPN) is a leading provider of electronic transaction processing services for consumers, merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout the United States, Canada, Latin America, Europe, and the Asia-Pacific region. Global Payments 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. The company also provides consumer money transfer services from the United States and Europe to destinations in Latin America, Morocco, and the Philippines. For more information about the company and its services, visit www.globalpaymentsinc.com.
This announcement and comments made by Global Payments' management during the conference call may contain certain forward-looking statements within the meaning of the 'safe-harbor' provisions of the Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including revenue and earnings estimates and management's expectations regarding future events and developments, are forward looking statements and are subject to significant risks and uncertainties. Important factors that may cause actual events or results to differ materially from those anticipated by such forward-looking statements include the following: foreign currency risks which become increasingly relevant as we expand internationally, the effect of current U.S. economic conditions, including a decline in the value of the U.S. dollar, the continued erosion of the value of our money transfer business 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 CONSOLIDATED STATEMENTS OF INCOME
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands, except per share data)
-------------------------------------------------------------------------
Three Months Ended February 28/29,
---------------------------------
2009 2008
---- ----
Revenues $392,663 $310,641
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Operating expenses:
Cost of service 146,760 117,661
Sales, general and administrative 180,117 133,069
Impairment 147,664 -
------- -------
474,541 250,730
------- -------
Operating (loss) income (81,878) 59,911
-------------------------------------------------------------------------
Other income (expense):
Interest and other income 1,200 4,767
Interest and other expense (2,222) (2,198)
------ ------
(1,022) 2,569
------ -----
(Loss) income before income taxes
and minority interest (82,900) 62,480
Provision for income taxes (15,818) (19,265)
Minority interest, net of tax provision
(benefit) of $1,703 and ($506),
respectively (8,058) (3,160)
-------------------------------------------------------------------------
Net (loss) income $(106,776) $40,055
--------- -------
(Loss) earnings per share:
Basic $(1.34) $0.51
------ -----
Diluted $(1.34) $0.50
------ -----
Weighted average shares outstanding:
Basic 79,835 79,219
Diluted 79,835 80,650
SCHEDULE 2
SEGMENT INFORMATION
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)
-------------------------------------------------------------------------
Three Months
Ended February 28/29,
---------------------
2009 2008
---- ----
Revenues:
---------
United States $206,237 $182,038
Canada 68,202 61,256
------ ------
North America Merchant Services 274,439 243,294
Europe 62,109 14,455
Asia-Pacific 22,980 18,977
------ ------
International Merchant Services 85,089 33,432
United States 26,605 28,007
Europe 6,530 5,908
----- -----
Money Transfer 33,135 33,915
-------- --------
Total Revenues $392,663 $310,641
======== ========
Operating Income:
-----------------
North America Merchant Services(1) $57,909 $67,792
International Merchant Services 20,771 4,326
Money Transfer 3,403 1,156
Corporate (16,297) (13,363)
Impairment (147,664) -
-------- --------
Operating (Loss) Income $(81,878) $59,911
======== =======
(1) Includes the favorable impact of a non-recurring, non-cash operating
tax item of $7.0 million in the three months ended February 29, 2008.
SCHEDULE 3
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
GLOBAL PAYMENTS INC.
