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
[email protected]
</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: Jane M. Elliott, +1-770-829-8234 Voice, +1-770-829-8267 Fax, [email protected] Web Site: http://www.globalpaymentsinc.com
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