Global Payments Reports Third Quarter Earnings


    


    
</pre>
<p><span class="xn-location">ATLANTA</span>, <span class="xn-chron">March 31, 2010</span> /CNW/ -- Global Payments Inc. (NYSE:   GPN) today announced results for its fiscal third quarter ended <span class="xn-chron">February 28, 2010</span>.  For the third quarter, revenues grew 11% to <span class="xn-money">$398.5 million</span> compared to <span class="xn-money">$359.5 million</span> in the prior year.  Diluted earnings per share from continuing operations grew 35% to <span class="xn-money">$0.58</span> compared to <span class="xn-money">$0.43</span> in the prior year (See Schedule 2 for financial results from continuing operations).</p>
<p/>
<p>Chairman and CEO, Paul R. Garcia, stated, "I am pleased with our results for the quarter which include a lift from foreign currency translation.  On a constant currency basis, we delivered solid revenue and diluted earnings per share growth of 6% and 18%, respectively(1).  This demonstrates strong financial performance despite a challenging, albeit improving, macroeconomic environment.  These results were driven by steady growth in our U.S. ISO channel, continued successful execution in our international businesses and a better than expected effective tax rate.</p>
<p/>
<p>"Based on our current outlook for continuing operations, we are increasing our fiscal 2010 annual revenue expectations to <span class="xn-money">$1,615 million to $1,625 million</span>, or 10% to 11% growth over fiscal 2009, and we are increasing our fiscal 2010 diluted EPS expectations to <span class="xn-money">$2.49 to $2.54</span>, reflecting 19% to 21% growth over fiscal 2009 EPS," said Garcia.</p>
<pre>
    

    Conference Call
    
</pre>
<p>Global Payments will hold a conference call today, <span class="xn-chron">March 31, 2010</span> at <span class="xn-chron">4:30 p.m. ET</span> 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 <span class="xn-location">North America</span> may dial 1-888-609-5666 and callers outside <span class="xn-location">North America</span> may dial 1-913-312-6664. The pass code is "GPN."  A replay of the call may be accessed through the Global Payments' Web site through <span class="xn-chron">April 21, 2010</span>.</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 <span class="xn-location">United States</span>, <span class="xn-location">Canada</span>, <span class="xn-location">Europe</span>, 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.  Visit <a href="http://www.globalpaymentsinc.com">www.globalpaymentsinc.com</a> for more information about the company and its services.</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 worldwide 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>
<pre>
    

    (1) Please see Schedule 6.

    
</pre>
<p> </p>
<p> </p>
<pre>
    
    Contact: Jane M. Elliott
    770-829-8234 Voice
    770-829-8267 Fax
    investor.relations@globalpay.com



    
</pre>
<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>
<p> </p>
<pre>
    
                                           Three Months Ended
                                              February 28,
                                           ------------------
                                          2010             2009  % Change
                                          ----             ----  --------
    
</pre>
<p> </p>
<pre>
    
    Revenues                          $398,535         $359,528        11%
    --------                          --------         --------       ---
    
</pre>
<p> </p>
<pre>
    
    Operating expenses:
         Cost of service               146,202          124,001        18%
         Sales, general and
          administrative               178,484          173,144         3%
                                       324,686          297,145         9%
                                       -------          -------
    
</pre>
<p> </p>
<pre>
    
    Operating income                    73,849           62,383        18%
    ----------------                    ------           ------       ---
    
</pre>
<p> </p>
<pre>
    
    Other income (expense):
         Interest and other
          income                         1,319            1,135        16%
         Interest and other
          expense                       (4,141)          (2,287)       81%
                                        ------           ------
                                        (2,822)          (1,152)      145%
                                        ------           ------
    
</pre>
<p> </p>
<pre>
    
    Income from continuing
     operations before
     income taxes                       71,027           61,231        16%
    Provision for income
     taxes                             (20,298)         (18,531)       10%
                                       -------          -------
    Income from continuing
     operations                         50,729           42,700        19%
    Income (loss) from
     discontinued
     operations, net of tax                722         (141,418)       NM
                                           ---
    Net income (loss)
     including
     noncontrolling
     interests                          51,451          (98,718)       NM
    Less: Net income
     attributable to
     noncontrolling
     interests, net of tax              (2,990)          (8,058)     (63%)
                                        ------           ------
              Net income (loss)
               attributable to Global
               Payments                $48,461        $(106,776)       NM
                                       -------        ---------
    
</pre>
<p> </p>
<pre>
    
    Amounts attributable to
     Global Payments:
        Income from continuing
         operations                    $47,739          $34,642        38%
        Income (loss) from
         discontinued
         operations, net of tax            722         (141,418)       NM
                                           ---         --------
              Net income (loss)
               attributable to Global
               Payments                $48,461        $(106,776)       NM
                                       -------        ---------
    
</pre>
<p> </p>
<p> </p>
<pre>
    
    Basic earnings per
     share attributable to
     Global Payments:
        Income from continuing
         operations                      $0.59            $0.43        37%
        Income (loss) from
         discontinued
         operations, net of tax           0.01            (1.76)       NM
                                          ----            -----
              Net income (loss)          $0.60           $(1.33)       NM
                                         -----           ------
    
</pre>
<p> </p>
<pre>
    
    Diluted earnings per
     share attributable to
     Global Payments:
        Income from continuing
         operations                      $0.58            $0.43        35%
        Income (loss) from
         discontinued
         operations, net of tax           0.01            (1.75)       NM
                                          ----            -----
              Net income (loss)          $0.59           $(1.32)       NM
                                         -----           ------
    
</pre>
<p> </p>
<pre>
    
    Weighted average shares
     outstanding(1):
              Basic                     81,539           80,333
              Diluted                   82,636           80,948



    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                                      Nine Months Ended
                                        February 28,
                                       -----------------
                                      2010            2009  % Change
                                      ----            ----  --------
    
</pre>
<p> </p>
<pre>
    
    Revenues                    $1,217,418      $1,094,372        11%
    --------                    ----------      ----------       ---
    
</pre>
<p> </p>
<pre>
    
    Operating expenses:
         Cost of service           432,287         374,631        15%
         Sales, general and
          administrative           533,337         490,857         9%
                                   965,624         865,488        12%
                                   -------         -------
    
</pre>
<p> </p>
<pre>
    
    Operating income               251,794         228,884        10%
    ----------------               -------         -------       ---
    
</pre>
<p> </p>
<pre>
    
    Other income
     (expense):
         Interest and other
          income                     2,699           6,354       -58%
         Interest and other
          expense                  (12,704)         (6,357)      100%
                                   -------          ------
                                   (10,005)             (3)       NM
                                   -------             ---
    
</pre>
<p> </p>
<pre>
    
    Income from continuing
     operations before
     income taxes                  241,789         228,881         6%
    Provision for income
     taxes                         (69,489)        (66,029)        5%
                                   -------         -------
    Income from continuing
     operations                    172,300         162,852         6%
    Income (loss) from
     discontinued
     operations, net of
     tax                             7,778        (135,476)       NM
                                     -----        --------
    Net income (loss)
     including
     noncontrolling
     interests                     180,078          27,376       558%
    Less: Net income
     attributable to
     noncontrolling
     interests, net of tax         (10,951)        (27,718)     (60%)
                                   -------         -------
              Net income (loss)
               attributable to
               Global Payments    $169,127           $(342)       NM
                                  --------           -----
    
</pre>
<p> </p>
<pre>
    
    Amounts attributable
     to Global Payments:
        Income from continuing
         operations               $161,349        $135,134        19%
        Income (loss) from
         discontinued
         operations, net of
         tax                         7,778        (135,476)       NM
                                     -----        --------
              Net income (loss)
               attributable to
               Global Payments    $169,127           $(342)       NM
                                  --------           -----
    
</pre>
<p> </p>
<p> </p>
<pre>
    
    Basic earnings per
     share attributable to
     Global Payments:
        Income from continuing
         operations                  $1.99           $1.69        18%
        Income (loss) from
         discontinued
         operations, net of
         tax                          0.10           (1.69)       NM
                                      ----           -----
              Net income (loss)      $2.09              $-        NM
                                     -----             ---
    
</pre>
<p> </p>
<pre>
    
    Diluted earnings per
     share attributable to
     Global Payments:
        Income from continuing
         operations                  $1.96           $1.67        17%
        Income (loss) from
         discontinued
         operations, net of
         tax                          0.10           (1.67)       NM
                                      ----           -----
              Net income (loss)      $2.06              $-        NM
                                     -----             ---
    
</pre>
<p> </p>
<pre>
    
    Weighted average
     shares
     outstanding(1):
              Basic                 81,102          80,129
              Diluted               82,181          81,077
    
</pre>
<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 498 and
    17, respectively for the three months ended February 28, 2009, and
    453 and 22, respectively for the nine months ended February 28,
    2009.
    
</pre>
<p> </p>
<pre>
    
    NM - Not Meaningful



    
</pre>
<p> </p>
<pre>
    
    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>
<p> </p>
<pre>
    
                                               Three Months Ended
                                                  February 28,
                                               ------------------
                                               2010            2009  % Change
                                               ----            ----  --------
    
</pre>
<p> </p>
<pre>
    
    Revenues                               $398,535        $359,528        11%
    --------                               --------        --------       ---
    
</pre>
<p> </p>
<pre>
    
    Operating expenses:
         Cost of service                    146,202         124,001        18%
         Sales, general and administrative  178,484         173,144         3%
                                            324,686         297,145         9%
                                            -------         -------
    
</pre>
<p> </p>
<pre>
    
    Operating income                         73,849          62,383        18%
    ----------------                         ------          ------       ---
    
</pre>
<p> </p>
<pre>
    
    Other income (expense):
         Interest and other income            1,319           1,135        16%
         Interest and other expense          (4,141)         (2,287)       81%
                                             ------          ------
                                             (2,822)         (1,152)      145%
                                             ------          ------
    
</pre>
<p> </p>
<pre>
    
    Income from continuing operations
     before income taxes                     71,027          61,231        16%
    Provision for income taxes              (20,298)        (18,531)       10%
                                            -------         -------
    Income from continuing operations
     including noncontrolling
     interests                               50,729          42,700        19%
    Less: Net income attributable to
     noncontrolling interests, net of
     tax                                     (2,990)         (8,058)     (63%)
                                             ------          ------
    Net income from continuing
     operations attributable to
     Global Payments                        $47,739         $34,642        38%
                                            =======         =======
    
</pre>
<p> </p>
<pre>
    
    Basic earnings per share                  $0.59           $0.43        37%
                                              =====           =====
    
</pre>
<p> </p>
<pre>
    
    Diluted earnings per share                $0.58           $0.43        35%
                                              =====           =====
    
</pre>
<p> </p>
<pre>
    
    Weighted average shares
     outstanding:
              Basic                          81,539          80,333
              Diluted                        82,636          80,948



    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                                          Nine Months Ended
                                            February 28,
                                           -----------------
                                          2010            2009  % Change
                                          ----            ----  --------
    
</pre>
<p> </p>
<pre>
    
    Revenues                        $1,217,418      $1,094,372        11%
    --------                        ----------      ----------       ---
    
</pre>
<p> </p>
<pre>
    
    Operating expenses:
         Cost of service               432,287         374,631        15%
         Sales, general and
          administrative               533,337         490,857         9%
                                       965,624         865,488        12%
                                       -------         -------
    
</pre>
<p> </p>
<pre>
    
    Operating income                   251,794         228,884        10%
    ----------------                   -------         -------       ---
    
</pre>
<p> </p>
<pre>
    
    Other income (expense):
         Interest and other income       2,699           6,354      (58%)
         Interest and other expense    (12,704)         (6,357)      100%
                                       -------          ------
                                       (10,005)             (3)       NM
                                       -------             ---
    
</pre>
<p> </p>
<pre>
    
    Income from continuing
     operations before income taxes    241,789         228,881         6%
    Provision for income taxes         (69,489)        (66,029)        5%
                                       -------         -------
    Income from continuing
     operations including
     noncontrolling interests          172,300         162,852         6%
    Less: Net income attributable
     to noncontrolling interests,
     net of tax                        (10,951)        (27,718)     (60%)
                                       -------         -------
    Net income from continuing
     operations attributable to
     Global Payments                  $161,349        $135,134        19%
                                      ========        ========
    
</pre>
<p> </p>
<pre>
    
    Basic earnings per share             $1.99           $1.69        18%
                                         =====           =====
    
</pre>
<p> </p>
<pre>
    
    Diluted earnings per share           $1.96           $1.67        17%
                                         =====           =====
    
</pre>
<p> </p>
<pre>
    
    Weighted average shares
     outstanding:
              Basic                     81,102          80,129
              Diluted                   82,181          81,077
    
</pre>
<p> </p>
<pre>
    
    NM - Not Meaningful



    
</pre>
<p> </p>
<pre>
    
    SCHEDULE 3
    SEGMENT INFORMATION CONTINUING OPERATIONS
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES
    
</pre>
<p> </p>
<p>(In thousands)</p>
<p> </p>
<p> </p>
<pre>
    
                                    Three Months Ended
                                       February 28,
                                    ------------------
                                   2010             2009       % Change
                                    ---              ---       --------
    
</pre>
<p> </p>
<pre>
    
    Revenues:
    ---------
    United States              $216,168         $206,237              5%
    Canada                       77,092           68,201             13%
                                 ------           ------
      North America Merchant
       Services                 293,260          274,438              7%
    
</pre>
<p> </p>
<pre>
    
    Europe                       78,174           62,110             26%
    Asia-Pacific                 27,101           22,980             18%
                                 ------           ------
      International Merchant
       Services                 105,275           85,090             24%
    
</pre>
<p> </p>
<pre>
    
        Total Revenues         $398,535         $359,528             11%
                               ========         ========
    
</pre>
<p> </p>
<pre>
    
    Operating Income:
    -----------------
    North America Merchant
     Services                   $60,855          $57,909              5%
    International Merchant
     Services                    28,853           20,771             39%
    Corporate                   (15,859)         (16,297)             3%
                                -------          -------
      Operating Income          $73,849          $62,383             18%
                                =======          =======



    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                                    Nine Months Ended
                                       February 28,
                                     -----------------
                                    2010            2009     % Change
                                     ---             ---     --------
    
</pre>
<p> </p>
<pre>
    
    Revenues:
    ---------
    United States               $659,868        $599,082            10%
    Canada                       236,552         232,779             2%
                                 -------         -------
      North America Merchant
       Services                  896,420         831,861             8%
    
</pre>
<p> </p>
<pre>
    
    Europe                       242,785         194,881            25%
    Asia-Pacific                  78,213          67,630            16%
                                  ------          ------
      International Merchant
       Services                  320,998         262,511            22%
    
</pre>
<p> </p>
<pre>
    
        Total Revenues        $1,217,418      $1,094,372            11%
                              ==========      ==========
    
</pre>
<p> </p>
<pre>
    
    Operating Income:
    -----------------
    North America Merchant
     Services                   $210,419        $213,409           (1%)
    International Merchant
     Services                     88,353          62,136            42%
    Corporate                    (46,978)        (46,661)          (1%)
                                 -------         -------
      Operating Income          $251,794        $228,884            10%
                                ========        ========




    
</pre>
<p> </p>
<pre>
    
    SCHEDULE 4
    CONSOLIDATED BALANCE SHEETS
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES
    (In thousands)
    
</pre>
<p> </p>
<p> </p>
<pre>
    
                                                   February 28,   May 31,
                                                           2010        2009
                                                           ----        ----
    
</pre>
<p> </p>
<pre>
    
    ASSETS
    Current assets:
      Cash and cash equivalents                        $589,620    $426,935
      Accounts receivable, net of allowances
       for doubtful accounts of $378 and $553,
       respectively                                     121,839     122,831
      Claims receivable, net of allowance for
       losses of $4,070 and $4,026,
       respectively                                         809         607
      Settlement processing assets                       11,202       6,675
      Inventory, net of obsolescence reserves
       of $795 and $653, respectively                    12,146       5,914
      Deferred income taxes                               2,607       3,789
      Assets of discontinued operations                 141,298           -
      Prepaid expenses and other current
       assets                                            21,732      28,437
          Total current assets                          901,253     595,188
                                                        -------     -------
    
</pre>
<p> </p>
<pre>
    
    Property and equipment, net of
     accumulated depreciation of $111,385
     and $121,189, respectively                         178,549     176,226
    Goodwill                                            577,218     625,120
    Other intangible assets, net of
     accumulated amortization of $138,472
     and $189,560, respectively                         210,309     258,094
    Deferred income taxes                                89,850           -
    Other                                                22,489      22,193
                                                         ------      ------
    
</pre>
<p> </p>
<pre>
    
    Total assets                                     $1,979,668  $1,676,821
                                                     ==========  ==========
    
</pre>
<p> </p>
<pre>
    
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
      Lines of credit                                   $10,513     $10,174
      Notes payable - current portion                   139,976      29,393
      Payables to money transfer beneficiaries                -      12,343
      Accounts payable and accrued liabilities          176,423     167,700
      Settlement processing obligations                 170,737     106,934
      Liabilities of discontinued operations             32,738           -
      Income taxes payable                               12,291       9,633
          Total current liabilities                     542,678     336,177
                                                        -------     -------
    
</pre>
<p> </p>
<pre>
    
    Notes payable                                       307,298     167,610
    Deferred income taxes                                59,133      76,405
    Other long-term liabilities                          26,326      19,009
          Total liabilities                             935,435     599,201
                                                        -------     -------
    
</pre>
<p> </p>
<p>Commitments and contingencies</p>
<p> </p>
<p>Redeemable noncontrolling interest                   99,038     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; 81,597,227
       and 80,445,009 shares issued and
        outstanding at February 28, 2010 and
        May 31, 2009, respectively                            -           -
      Paid-in capital                                   442,362     405,241
      Retained earnings                                 513,068     273,090
      Accumulated other comprehensive loss              (20,438)    (10,901)
          Total Global Payments Inc. shareholders'
           equity                                       934,992     667,430
                                                        -------     -------
      Noncontrolling interest                            10,203      10,813
          Total equity                                  945,195     678,243
                                                        -------     -------
    
</pre>
<p> </p>
<pre>
    
    Total liabilities and equity                     $1,979,668  $1,676,821
                                                     ==========  ==========
    
</pre>
<p> </p>
<pre>
    
    Presentation of prior year amounts have been adjusted to
    retrospectively conform with FASB guidance on noncontrolling
    interests.



    
</pre>
<p> </p>
<pre>
    
    SCHEDULE 5
    UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES
    
</pre>
<p> </p>
<p>(In thousands)</p>
<p> </p>
<p> </p>
<pre>
    
                                                    Nine Months Ended
                                                      February 28,
                                                      -----------------
                                                    2010             2009
                                                    ----             ----
    
</pre>
<p> </p>
<pre>
    
    Cash flows from operating activities:
      Net income including noncontrolling
       interests                                $180,078          $27,376
      Adjustments to reconcile net income
       to net cash provided by operating
       activities:
        Depreciation and amortization of
         property and equipment                   25,798           27,175
        Amortization of acquired intangibles      24,627           23,222
        Share-based compensation expense          11,843           10,954
        Provision for operating losses and
         bad debts                                18,713           20,256
        Deferred income taxes                    (21,023)          (3,419)
        Estimated loss on disposal of
         discontinued operations                  15,770                -
        Impairment of identified intangible
         assets                                        -          147,664
        Other, net                                   947              (87)
      Changes in operating assets and
       liabilities, net of the effects of
       acquisitions:
        Accounts receivable                        1,942           (8,856)
        Claims receivable                        (11,552)         (13,879)
        Settlement processing assets and
         obligations, net                         51,930           28,818
        Inventory                                 (6,785)          (2,314)
        Prepaid expenses and other assets         (2,474)           6,832
        Payables to money transfer
         beneficiaries                              (532)            (446)
        Accounts payable and accrued
         liabilities                              25,607            2,692
        Income taxes payable                       3,308            2,789
                                                   -----            -----
          Net cash provided by operating
           activities                            318,197          268,777
                                                 -------          -------
    
</pre>
<p> </p>
<pre>
    
    Cash flows from investing activities:
      Business and intangible asset
       acquisitions                              (17,059)        (454,279)
      Capital expenditures                       (36,520)         (25,458)
      Net increase in financing receivables         (649)               -
      Proceeds from sale of investment and
       contractual rights                            297            6,796
                                                     ---            -----
          Net cash used in investing activities  (53,931)        (472,941)
                                                 -------         --------
    
</pre>
<p> </p>
<pre>
    
    Cash flows from financing activities:
      Net borrowings on lines of credit              339            2,583
      Proceeds from issuance of notes
       payable                                   304,964          200,000
      Principal payments under notes
       payable                                   (50,958)         (10,000)
      Acquisition of redeemable
       noncontrolling interests                 (307,675)               -
      Proceeds from stock issued under
       share-based compensation plans             20,699            7,961
      Tax benefit from share-based
       compensation plans                          4,579            2,421
      Dividends paid                              (4,877)          (4,808)
      Contribution from noncontrolling
       interest holder                                 -              358
      Distribution to noncontrolling
       interests                                 (18,461)         (23,258)
                                                 -------          -------
          Net cash (used in) provided by
           financing activities                  (51,390)         175,257
                                                 -------          -------
    
</pre>
<p> </p>
<pre>
    
    Effect of exchange rate changes on
     cash                                          1,965          (39,560)
                                                   -----          -------
    
</pre>
<p> </p>
<pre>
    
    Increase (decrease) in cash and cash
     equivalents                                 214,841          (68,467)
    Cash and cash equivalents, beginning
     of period                                   426,935          456,060
    Cash and cash equivalents of
     discontinued operations                     (52,156)               -
    Cash and cash equivalents, end of
     period                                     $589,620         $387,593
                                                --------         --------
    
</pre>
<p> </p>
<pre>
    
    Presentation of prior year amounts have been adjusted to
    retrospectively conform with FASB guidance on noncontrolling
    interests.


    
</pre>
<p> </p>
<pre>
    
    SCHEDULE 6
    CONSTANT CURRENCY SUMMARY
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES
    
</pre>
<p> </p>
<p>(In millions, except per share data)</p>
<p> </p>
<p> </p>
<pre>
    
                                   Q3 FY10 % change  YTD FY10  % change
                                   Actual  Q3 FY09    Actual   YTD FY09
                                   ------  -------    ------   --------
    
</pre>
<p> </p>
<pre>
    
     Fiscal 2010 Revenues
     --------------------
     Constant currency(1)             $381        6%    $1,215        11%
     Foreign currency impact(2)         18        5%         2         0%
                                       ---      ---        ---       ---
       Revenues from continuing
        operations                    $399       11%    $1,217        11%
                                      ====      ===     ======       ===
    
</pre>
<p> </p>
<p> </p>
<pre>
    
     Fiscal 2010 Diluted Earnings
      Per Share
     ----------------------------
     Constant currency(1)            $0.51       18%     $1.92        16%
     Foreign currency impact(2)       0.07       17%      0.04         2%
                                      ----      ---       ----       ---
       Diluted EPS from continuing
        operations                   $0.58       35%     $1.96        17%
                                     =====      ===      =====       ===
    
</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>
<pre>
    
    SCHEDULE 7
    RECONCILIATION OF CONTINUING OPERATIONS TO FISCAL YEAR 2009
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES
    
</pre>
<p> </p>
<p> </p>
<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     --           --    --         --
    Money Transfer -
     discontinued
     operations                      139     --           --    --         --
    
</pre>
<p> </p>
<p> </p>
<pre>
    
      Adjusted Revenues           $1,463 $1,615       $1,625    10%        11%
                                  ====== ======       ======   ===        ===
    
</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     --           --    --         --
    Normalized
     earnings from
     Money Transfer -
     discontinued
     operations                     0.13  --        --      -- --
    
</pre>
<p> </p>
<p> </p>
<pre>
    
      Diluted earnings
       from continuing
       operations per
       share                       $2.10  $2.49        $2.54    19%        21%
                                   =====  =====        =====   ===        ===
    
</pre>
<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, +1-770-829-8234 Voice, +1-770-829-8267 Fax, investor.relations@globalpay.com Web Site: http://www.globalpaymentsinc.com

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