Global Payments Reports Second Quarter Earnings


    


    
</pre>
<p><location>ATLANTA</location>, <chron>Jan. 7</chron> /CNW/ --  Global Payments Inc. (NYSE:   GPN) today announced results for its fiscal second quarter ended <chron>November 30, 2009</chron>.  For the second quarter, revenues grew 12% to <money>$409.0 million</money> compared to <money>$365.9 million</money> in the prior year.  Diluted earnings per share from continuing operations grew 25% to <money>$0.71</money> compared to <money>$0.57</money> in the prior year (See Schedule 2 for financial results from continuing operations).</p>
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    (Logo: http://www.newscom.com/cgi-bin/prnh/20010221/ATW031LOGO )

    
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<p>Chairman and CEO, Paul R. Garcia, stated, "Despite challenging macroeconomic conditions, we reported solid financial performance this quarter, driven by strong growth in our U.S. ISO channel and continued successful execution in our International businesses.</p>
<p/>
<p>"Based on our current outlook for continuing operations, we expect fiscal 2010 annual revenue of <money>$1,580 million to $1,615 million</money>, or 8% to 10% growth over fiscal 2009, and we are increasing our fiscal 2010 diluted EPS expectations to <money>$2.35 to $2.46</money>, reflecting 12% to 17% growth over fiscal 2009 EPS," said Garcia.</p>
<p/>
<p>As a result of the company's recently announced divestiture of its Money Transfer business, the company has classified and reported Money Transfer as discontinued operations in its financial statements.</p>
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    Conference Call
    
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<p>Global Payments will hold a conference call today, <chron>January 7, 2010</chron> at <chron>4:30 p.m. EST</chron> to discuss financial results and business highlights.  Callers may access the conference call via the company's Web site at <a href="http://www.globalpaymentsinc.com">www.globalpaymentsinc.com</a> by clicking the "Webcast" button; or callers in <location>North America</location> may dial 1-888-204-4317 and callers outside <location>North America</location> may dial 1-913-312-0963.  The pass code is "GPN."  A replay of the call may be accessed through the Global Payments' Web site through <chron>January 21, 2010</chron>.</p>
<p/>
<p>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 <location>United States</location>, <location>Canada</location>, Latin America, <location>Europe</location>, 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.  For more information about the company and its services, visit <a href="http://www.globalpaymentsinc.com">www.globalpaymentsinc.com</a>.</p>
<p/>
<p>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 the divestiture of the Money Transfer business 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.</p>
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<p> </p>
<p> </p>
<pre>
    
    Contact: Jane M. Elliott
    770-829-8234 Voice
    770-829-8267 Fax
    investor.relations@globalpay.com










    
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<p> </p>
<p> </p>
<pre>
    
    SCHEDULE 1
    UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES
    
</pre>
<p> </p>
<p> (In thousands, except per share data)</p>
<p> </p>
<pre>
    
                        Three Months Ended            Six Months Ended
                           November 30,                 November 30,
                        ------------------           -----------------
                         2009      2008   % Change    2009      2008  % Change
                         ----      ----   --------    ----      ----  --------
    
</pre>
<p> </p>
<pre>
    
    Revenues           $408,951  $365,884    12%    $818,882  $734,844    11%
    --------           --------  --------    ---    --------  --------    ---
    Operating expenses:
       Cost of service  144,881   131,144    10%     286,084   250,630    14%
       Sales, general
        and
        administrative  175,368   156,858    12%     354,853   317,713    12%
                        -------   -------            -------   -------
                        320,249   288,002    11%     640,937   568,343    13%
                        -------   -------            -------   -------
    
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<p> </p>
<pre>
    
    Operating income     88,702    77,882    14%     177,945   166,501     7%
    ----------------     ------    ------    ---     -------   -------     --
    
</pre>
<p> </p>
<pre>
    
    Other income
     (expense):
       Interest and other
        income              690     1,936   (64)%      1,380     5,219   (74)%
       Interest and other
        expense          (4,423)   (1,799)  146%      (8,564)   (4,070)  110%
                         ------    ------             ------    ------
                         (3,733)      137    NM       (7,184)    1,149    NM
                         ------       ---             ------     -----
    
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<p> </p>
<pre>
    
    Income from continuing
     operations before
     income taxes        84,969    78,019     9%     170,761   167,650     2%
    Provision for income
     taxes              (23,655)  (20,813)   14%     (49,191)  (47,498)    4%
                        -------   -------            -------   -------
    Income from
     continuing
     operations          61,314    57,206     7%     121,570   120,152     1%
    Income from
     discontinued
     operations,
     net of tax           4,868     3,040    60%       7,056     5,942    19%
                          -----     -----              -----     -----
    Net income including
     noncontrolling
     interests           66,182    60,246    10%     128,626   126,094     2%
    Less: Net income
           attributable
           to
           noncontrolling
           interests,
           net of tax    (3,347)  (11,339)  (70)%     (7,960)  (19,660)  (60)%
                         ------   -------             ------   -------
          Net income
           attributable
           to Global
           Payments     $62,835   $48,907    28%    $120,666  $106,434    13%
                        -------   -------           --------  --------
    
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<p> </p>
<pre>
    
    Amounts attributable
     to Global Payments:
       Income from
        continuing
        operations      $57,967   $45,867    26%    $113,610  $100,492    13%
       Income from
        discontinued
        operations,
        net of tax        4,868     3,040    60%       7,056     5,942    19%
                          -----     -----              -----     -----
          Net income
           attributable
           to Global
           Payments     $62,835   $48,907    28%    $120,666  $106,434    13%
                        -------   -------           --------  --------
    
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<p> </p>
<p> </p>
<pre>
    
    Basic earnings per
     share attributable
     to Global Payments:
       Income from
        continuing
        operations        $0.71     $0.57    25%       $1.40     $1.26    12%
       Income from
        discontinued
        operations,
        net of tax         0.06      0.04    58%        0.09      0.07    17%
                           ----      ----               ----      ----
          Net income      $0.77     $0.61    27%       $1.49     $1.33    12%
                          -----     -----              -----     -----
    
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<p> </p>
<pre>
    
    Diluted earnings per
     share attributable
     to Global Payments:
       Income from
        continuing
        operations        $0.71     $0.57    25%       $1.39     $1.24    12%
       Income from
        discontinued
        operations,
        net of tax         0.05      0.03    67%        0.09      0.07    23%
                           ----      ----               ----      ----
          Net income      $0.76     $0.60    27%       $1.48     $1.31    12%
                          -----     -----              -----     -----
    
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<p> </p>
<pre>
    
    Weighted average shares
     outstanding(1):
       Basic             81,236    80,228             80,890    80,037
       Diluted           82,188    81,157             81,786    81,147
    
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<p> </p>
<pre>
    
    (1) Pursuant to the retrospective adoption of FASB guidance on
        participating securities (ASC 260-10-45-40), basic and diluted
        weighted average shares outstanding have been increased by 493 and
        25, respectively for the three months ended November 30, 2008, and
        439 and 29, respectively for the six months ended November 30, 2008.
    
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<p> </p>
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    NM - Not Meaningful


    
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<p> </p>
<p> </p>
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    SCHEDULE 2
    INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO GLOBAL PAYMENTS
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES
    
</pre>
<p> </p>
<p>(In thousands, except per share data)</p>
<p> </p>
<pre>
    
                        Three Months Ended            Six Months Ended
                           November 30,                 November 30,
                        ------------------           -----------------
                         2009      2008   % Change    2009      2008  % Change
                         ----      ----   --------    ----      ----  --------
    
</pre>
<p> </p>
<pre>
    
    Revenues           $408,951  $365,884    12%    $818,882  $734,844    11%
    --------           --------  --------    ---    --------  --------    ---
    
</pre>
<p> </p>
<pre>
    
    Operating expenses:
       Cost of service  144,881   131,144    10%     286,084   250,630    14%
       Sales, general
        and
        administrative  175,368   156,858    12%     354,853   317,713    12%
                        -------   -------            -------   -------
                        320,249   288,002    11%     640,937   568,343    13%
                        -------   -------            -------   -------
    
</pre>
<p> </p>
<pre>
    
    Operating income     88,702    77,882    14%     177,945   166,501     7%
    ----------------     ------    ------    ---     -------   -------    ---
    
</pre>
<p> </p>
<pre>
    
    Other income (expense):
       Interest and other
        income              690     1,936   (64)%      1,380     5,219   (74)%
       Interest and other
        expense          (4,423)   (1,799)  146%      (8,564)   (4,070)  110%
                         ------    ------             ------    ------
                         (3,733)      137    NM       (7,184)    1,149    NM
                         ------       ---             ------     -----
    
</pre>
<p> </p>
<pre>
    
    Income from continuing
     operations before
     income taxes        84,969    78,019     9%     170,761   167,650     2%
    Provision for
     income taxes       (23,655)  (20,813)   14%     (49,191)  (47,498)    4%
                        -------   -------            -------   -------
    Income from continuing
     operations including
     noncontrolling
     interests           61,314    57,206     7%     121,570   120,152     1%
    Less: Net income
     attributable to
     noncontrolling
     interests,
     net of tax          (3,347)  (11,339)  (70)%     (7,960)  (19,660)  (60)%
                         ------   -------             ------   -------
    Net income from
     continuing operations
     attributable to
     Global Payments    $57,967   $45,867    26%    $113,610  $100,492    13%
                        =======   =======           ========  ========
    
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<p> </p>
<pre>
    
    Basic earnings
     per share            $0.71     $0.57    25%       $1.40     $1.26    12%
                          =====     =====              =====     =====
    
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<p> </p>
<pre>
    
    Diluted earnings
     per share            $0.71     $0.57    25%       $1.39     $1.24    12%
                          =====     =====              =====     =====
    
</pre>
<p> </p>
<pre>
    
    Weighted average
     shares outstanding:
       Basic             81,236    80,228             80,890    80,037
       Diluted           82,188    81,157             81,786    81,147
    
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<p> </p>
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    NM - Not Meaningful




    
</pre>
<p> </p>
<p> </p>
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    SCHEDULE 3
    SEGMENT INFORMATION CONTINUING OPERATIONS
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES
    
</pre>
<p> </p>
<p>(In thousands)</p>
<p> </p>
<pre>
    
                        Three Months Ended            Six Months Ended
                           November 30,                 November 30,
                        ------------------           -----------------
                         2009      2008   % Change    2009      2008  % Change
                         ----      ----   --------    ----      ----  --------
    
</pre>
<p> </p>
<pre>
    
    Revenues:
    ---------
      United States    $220,934  $192,149    15%    $443,699  $392,845    13%
      Canada             78,236    78,633    (1)%    159,461   164,577    (3)%
                         ------    ------            -------   -------
        North America
         Merchant
         Services       299,170   270,782    10%     603,160   557,422     8%
    
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<p> </p>
<pre>
    
      Europe             84,143    71,170    18%     164,610   132,772    24%
      Asia-Pacific       25,638    23,932     7%      51,112    44,650    14%
                         ------    ------             ------    ------
        International
         Merchant
         Services       109,781    95,102    15%     215,722   177,422    22%
    
</pre>
<p> </p>
<p> </p>
<pre>
    
          Total
           Revenues    $408,951  $365,884    12%    $818,882  $734,844    11%
                       ========  ========           ========  ========
    
</pre>
<p> </p>
<pre>
    
    Operating Income:
    -----------------
    North America
     Merchant Services  $73,643   $72,431     2%    $149,564  $155,500    (4)%
    International
     Merchant Services   30,750    20,963    47%      59,499    41,365    44%
    Corporate           (15,691)  (15,512)    1%     (31,118)  (30,364)    2%
                        -------   -------            -------   -------
       Operating Income $88,702   $77,882    14%    $177,945  $166,501     7%
                        =======   =======           ========  ========



    
</pre>
<p> </p>
<p> </p>
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    SCHEDULE 4
    CONSOLIDATED BALANCE SHEETS
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES
    (In thousands)
    
</pre>
<p> </p>
<pre>
    
                                                   November 30,    May 31,
                                                      2009          2009
                                                      ----          ----
    ASSETS
    Current assets:
       Cash and cash equivalents                   $1,090,847     $426,935
       Accounts receivable, net of allowances
        for doubtful accounts of $337 and $553,
        respectively                                  131,690      122,831
       Claims receivable, net of allowance for
        losses of $4,150 and $4,026, respectively         833          607
       Settlement processing assets                     8,657        6,675
       Inventory, net of obsolescence reserves of
        $761 and $653, respectively                    12,858        5,914
       Deferred income taxes                            2,591        3,789
       Assets of discontinued operations              123,351            -
       Prepaid expenses and other current assets       20,267       28,437
                                                       ------       ------
          Total current assets                      1,391,094      595,188
                                                    ---------      -------
    
</pre>
<p> </p>
<pre>
    
    Property and equipment, net of accumulated
     depreciation of $118,170 and $121,189,
     respectively                                     174,692      176,226
    Goodwill                                          599,872      625,120
    Other intangible assets, net of accumulated
     amortization of $132,442 and $189,560,
     respectively                                     225,211      258,094
    Deferred income taxes                              95,733            -
    Other                                              23,246       22,193
                                                       ------       ------
    
</pre>
<p> </p>
<pre>
    
    Total assets                                   $2,509,848   $1,676,821
                                                   ==========   ==========
    
</pre>
<p> </p>
<pre>
    
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
       Lines of credit                                 $9,823      $10,174
       Notes payable - current portion                109,138       29,393
       Payables to money transfer beneficiaries             -       12,343
       Accounts payable and accrued liabilities       169,417      167,700
       Settlement processing obligations              732,023      106,934
       Liabilities of discontinued operations          23,437            -
       Income taxes payable                             8,171        9,633
                                                        -----        -----
          Total current liabilities                 1,052,009      336,177
                                                    ---------      -------
    
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<p> </p>
<pre>
    
    Notes payable                                     341,978      167,610
    Deferred income taxes                              62,112       76,405
    Other long-term liabilities                        25,125       19,009
                                                       ------       ------
          Total liabilities                         1,481,224      599,201
                                                    ---------      -------
    
</pre>
<p> </p>
<p>Commitments and contingencies</p>
<p> </p>
<p>Redeemable noncontrolling interest                 96,613      399,377</p>
<p> </p>
<pre>
    
    Shareholders' equity:
       Preferred stock, no par value; 5,000,000
        shares authorized and none issued                   -            -
       Common stock, no par value; 200,000,000
        shares authorized; 81,473,144 and
        80,445,009 shares issued and outstanding at
        November 30, 2009 and May 31, 2009,
        respectively                                        -            -
    
</pre>
<p> </p>
<pre>
    
       Paid-in capital                                434,728      405,241
       Retained earnings                              467,476      273,090
       Accumulated other comprehensive income          19,203      (10,901)
                                                       ------      -------
          Total Global Payments Inc. shareholders'
           equity                                     921,407      667,430
                                                      -------      -------
       Noncontrolling interest                         10,604       10,813
                                                       ------       ------
          Total equity                                932,011      678,243
                                                      -------      -------
    
</pre>
<p> </p>
<pre>
    
    Total liabilities and equity                   $2,509,848   $1,676,821
                                                   ==========   ==========
    
</pre>
<p> </p>
<p> </p>
<pre>
    
    Presentation of prior year amounts have been adjusted to retrospectively
    conform with FASB guidance on noncontrolling interests.





    
</pre>
<p> </p>
<p> </p>
<pre>
    
    SCHEDULE 5
    UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES
     (In thousands)
    
</pre>
<p> </p>
<pre>
    
                                              Six Months Ended November 30,
                                             -----------------------------
                                                    2009          2008
                                                    ----          ----
    
</pre>
<p> </p>
<pre>
    
    Cash flows from operating activities:
       Net income including noncontrolling
        interests                                 $128,626      $126,094
       Adjustments to reconcile net income
        to net cash provided by operating
        activities:
          Depreciation and amortization of
           property and equipment                   17,441        19,446
          Amortization of acquired intangibles      16,264        15,654
          Share-based compensation expense           7,433         7,154
          Provision for operating losses and
           bad debts                                13,152        11,814
          Deferred income taxes                    (18,091)          467
          Estimated loss on disposal of
           discontinued operations                  15,850             -
          Other, net                                  (151)          349
       Changes in operating assets and liabilities,
        net of the effects of acquisitions:
          Accounts receivable                       (7,869)      (13,210)
          Claims receivable                         (8,052)       (9,872)
          Settlement processing assets and
           obligations, net                        617,802        36,994
          Inventory                                 (7,274)       (1,184)
          Prepaid expenses and other assets          2,299         4,263
          Payables to money transfer beneficiaries  (5,082)        2,968
          Accounts payable and accrued liabilities  13,642        (1,461)
          Income taxes payable                        (768)        1,021
                                                      ----         -----
    
</pre>
<p> </p>
<pre>
    
             Net cash provided by operating
              activities                           785,222       200,497
                                                   -------       -------
    
</pre>
<p> </p>
<pre>
    
    Cash flows from investing activities:
       Business and intangible asset
        acquisitions                               (17,059)     (454,265)
       Capital expenditures                        (20,677)      (17,396)
       Net increase in financing receivables          (501)            -
       Proceeds from sale of investment and
        contractual rights                             253         6,956
                                                       ---         -----
    
</pre>
<p> </p>
<pre>
    
             Net cash used in investing activities (37,984)     (464,705)
                                                   -------      --------
    
</pre>
<p> </p>
<pre>
    
    Cash flows from financing activities:
       Net (repayments) borrowings on lines of
        credit                                        (351)        5,047
       Proceeds from issuance of notes payable     302,487       200,000
       Acquisition of redeemable noncontrolling
        interests                                 (307,675)            -
       Principal payments under notes payable      (49,509)       (5,000)
       Proceeds from stock issued under
        share-based compensation plans              18,017         6,420
       Tax benefit from share-based compensation
        plans                                        4,037         1,749
       Dividends paid                               (3,245)       (3,210)
       Contribution from noncontrolling interest
        holder                                           -           358
       Distribution to noncontrolling interests    (16,258)      (11,718)
                                                   -------       -------
    
</pre>
<p> </p>
<pre>
    
             Net cash (used in) provided by
              financing activities                 (52,497)      193,646
                                                   -------       -------
    
</pre>
<p> </p>
<pre>
    
    Effect of exchange rate changes on cash          6,522       (29,264)
                                                     -----       -------
    
</pre>
<p> </p>
<pre>
    
    Increase (decrease) in cash and cash
     equivalents                                   701,263       (99,826)
    Cash and cash equivalents, beginning of
     period                                        426,935       456,060
    Cash and cash equivalents of discontinued
     operations                                    (37,351)            -
                                                   -------           ---
    Cash and cash equivalents, end of period     $1,090,847     $356,234
                                                 ----------     --------
    
</pre>
<p> </p>
<pre>
    
    Presentation of prior year amounts have been adjusted to retrospectively
    conform with FASB guidance on noncontrolling interests.



    
</pre>
<p> </p>
<p> </p>
<pre>
    
    SCHEDULE 6
    CONSTANT CURRENCY SUMMARY
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES
     (In millions, except per share data)
    
</pre>
<p> </p>
<pre>
    
                                     Q2 FY10  % change  YTDFY10  % change
                                      Actual   Q2 FY09   Actual   YTD FY09
                                      ------   -------  ------   --------
    
</pre>
<p> </p>
<pre>
    
    Fiscal 2010 Revenues
    --------------------
    Constant currency(1)               $404      11%      $835       14%
    Foreign currency impact(2)            5       1%       (16)      (3%)
                                        ---      ---       ---      ----
       Revenues from continuing
        operations                     $409      12%      $819       11%
                                       ====      ===      ====       ===
    
</pre>
<p> </p>
<p> </p>
<pre>
    
    Fiscal 2010 Diluted Earnings
     Per Share
    ----------------------------
    Constant currency(1)              $0.68      20%     $1.43       15%
    Foreign currency impact(2)         0.03       5%     (0.04)      (3%)
                                       ----      ---     -----      ----
       Diluted EPS from continuing
        operations                    $0.71      25%     $1.39       12%
                                      =====      ===     =====       ===
    
</pre>
<p> </p>
<pre>
    
    We supplemented our reporting of total revenues and earnings per share
    information determined in accordance with GAAP by reporting revenues and
    earnings per share for fiscal 2010 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 2010 actual revenues and expenses at fiscal 2009
    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.
    
</pre>
<p> </p>
<pre>
    
    (1)  Reflects current period results on a pro forma basis as if foreign
         currency rates did not change from the comparable prior year period.
    
</pre>
<p> </p>
<pre>
    
    (2)  Reflects the impact of changes in foreign currency rates from the
         comparable prior year period.




    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
    SCHEDULE 7
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES
    
</pre>
<p> </p>
<pre>
    
       For Year Ended May 31,     2009             2010               2010
    (in millions, except per
     share data)                 Actual        Expectations       Growth Rates
                                 ------        ------------       ------------
                              (Unaudited)
    Revenues                     $1,602      $1,705   $1,740        6%      9%
    Money Transfer -
     discontinued operations        139         125      125     (10)%   (10)%
    
</pre>
<p> </p>
<p> </p>
<pre>
    
         Adjusted Revenues       $1,463      $1,580   $1,615        8%     10%
                                 ======      ======   ======       ===     ===
    
</pre>
<p> </p>
<p> </p>
<pre>
    
    Diluted earnings per share
     as previously reported       $0.46          --       --        --      --
    Diluted loss per share as
     a result of impairment
     -discontinued ops(1)         $1.77          --       --        --      --
                                  -----
       Normalized diluted
        earnings per share        $2.23       $2.47    $2.58       11%     16%
    Normalized earnings from
     Money Transfer
     -discontinued operations      0.13        0.12     0.12      (8)%    (8)%
    
</pre>
<p> </p>
<p> </p>
<pre>
    
     Diluted earnings from continuing
       operations per share       $2.10       $2.35    $2.46       12%     17%
                                  =====       =====    =====       ===     ===
    
</pre>
<p> </p>
<p> </p>
<pre>
    
    As a result of the agreement to sell the money transfer businesses, ASC
    205-20, Discontinued Operations requires classification of the money
    transfer businesses as held for sale and the results of operations as
    discontinued.  Previously reported results will be reclassified in future
    financial statements.  The earnings per share calculation above reflects
    this reclassification.
    
</pre>
<p> </p>
<pre>
    
    (1) Impairment charges consist of goodwill and other intangible asset
    impairments in the Money Transfer segment.  Also reflects the related
    income tax benefit and share dilution.  This impairment will be included
    in discontinued operations along with the earnings from Money Transfer for
    a GAAP diluted loss from discontinued operations per share of $1.64.




    

For further information: For further information: Jane M. Elliott, Global Payments Inc., +1-770-829-8234 Voice, +1-770-829-8267 Fax, investor.relations@globalpay.com Web Site: http://www.globalpaymentsinc.com

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Global Payments Inc.

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