ATLANTA, July 23 /PRNewswire-FirstCall/ -- Global Payments Inc. (NYSE: GPN) today announced results for its fiscal fourth quarter and year ended May 31, 2009. For the full year, revenues grew 26% to $1,601.5 million compared to $1,274.2 million in the prior fiscal year. Normalized diluted earnings per share grew 13% to $2.23 compared to $1.98 in the prior year.
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For the fourth quarter, revenues grew 17% to $402.0 million compared to $343.8 million in the prior year. Normalized diluted earnings per share were $0.46 compared to $0.52 in the prior year quarter.
These results include the unfavorable impact of foreign currency exchange rates during the quarter and year. On a constant currency basis (See Schedule 9), revenue and normalized diluted earnings per share grew 27% and 4%, respectively for the quarter and 32% and 24%, respectively for the full year.
On a GAAP basis, the company reported quarterly diluted earnings per share of $0.46 compared to $0.50 in the prior year quarter, and on a full year GAAP basis, diluted earnings per share of $0.46 compared to $2.01 in the prior year. The full year results include a non-cash, pretax impairment charge relating to our money transfer business of $147.7 million which was recorded in the fiscal 2009 third quarter as a result of the company's annual FAS 142 Goodwill and Other Intangible Assets review (See Schedule 6 for reconciliation details).
Comments and Outlook
Chairman and CEO, Paul R. Garcia, stated, "Despite ongoing macroeconomic challenges and unfavorable foreign currency trends, we reported solid fourth quarter and full year results. Our normalized growth was driven by the impact of our June 30, 2008 U.K. acquisition and 16% transaction growth in the U.S., as well as successful pricing initiatives in Canada."
"Based on current macroeconomic environment, and reflecting our recent acquisitions, we are providing fiscal 2010 annual revenue guidance of $1,690 million to $1,740 million, or 6% to 9% growth over fiscal 2009. We are also providing fiscal 2010 diluted EPS guidance of $2.43 to $2.54, reflecting 9% to 14% growth over fiscal 2009," said Garcia.
Conference Call
Global Payments will hold a conference call today, July 23, 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 1-800-289-0436 and callers outside U.S. and Canada may dial 1-913-312-6687. The pass code is "GPN." A replay of the call may be accessed through the Global Payments' Web site through August 6, 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 impact of future performance and integration of recent acquisitions, 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 May 31,
--------------
2009 2008
---- ----
Revenues $402,041 $343,832
-------- -------- --------
Operating expenses:
Cost of service 153,537 125,129
Sales, general and administrative 181,059 151,918
------- -------
334,596 277,047
------- -------
Operating income 67,445 66,785
---------------- ------ ------
Other income (expense):
Interest and other income 690 3,567
Interest and other expense (623) (2,827)
---- ------
67 740
--- ---
Income before income taxes and minority interest 67,512 67,525
Provision for income taxes (20,710) (26,517)
Minority interest, net of tax provision of $594 and
$770, respectively (9,243) (197)
--------------------------------------------------- ------ ----
Net income $37,559 $40,811
------- -------
Earnings per share:
Basic $0.47 $0.51
----- -----
Diluted $0.46 $0.50
----- -----
Weighted average shares outstanding:
Basic 79,906 79,316
Diluted 80,866 80,846
SCHEDULE 2
SEGMENT INFORMATION
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)
--------------
Three Months
Ended May 31,
----------------
2009 2008
---- ----
Revenues:
---------
United States $206,475 $193,612
Canada 68,515 73,544
------ ------
North America Merchant Services 274,990 267,156
Europe 70,240 17,413
Asia-Pacific 22,704 18,900
------ ------
International Merchant Services 92,944 36,313
United States 27,833 33,016
Europe 6,274 7,347
----- -----
Money Transfer 34,107 40,363
-------- --------
Total Revenues $402,041 $343,832
======== ========
Operating Income:
-----------------
North America Merchant Services $59,563 $70,349
International Merchant Services 20,627 3,365
Money Transfer 3,783 7,518
Corporate (16,528) (14,447)
------- -------
Operating Income $67,445 $66,785
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SCHEDULE 3
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
GLOBAL PAYMENTS INC.
