Image via CrunchBaseATLANTA, Jan. 6, 2011 /PRNewswire/ -- Global Payments Inc. (NYSE: GPN) today announced results for its fiscal second quarter ended November 30, 2010. For the second quarter, revenues grew 8% to $443.5 million compared to $409.0 million in the prior fiscal year. Normalized diluted earnings per share from continuing operations for the quarter were $0.70 compared to $0.71 in the prior year (See Schedule 2 Normalized Income Statements). On a GAAP basis, the company reported fiscal 2011 second quarter diluted earnings per share from continuing operations for the quarter of $0.67compared to $0.71 in the prior year (See Schedule 1 for GAAP Income Statements).
Normalized second quarter results exclude pretax expenses consisting of certain start-up and duplicative costs related to the company's Global Service Center in Manila, Philippines and employee termination benefits related to Canada. (See Schedule 7 for Reconciliation of Normalized and Cash Earnings to GAAP).
Chairman and CEO Paul R. Garcia stated, "Our performance demonstrates continued execution of our growth strategies in all of our regions. In aggregate, the businesses performed as we expected during the quarter, with especially strong performance in Asia. Given our solid performance to date and some benefit from favorable currency exchange rates, we are pleased to increase our organic revenue and earnings expectations for the year.
I am also delighted that we have closed our 'la Caixa' acquisition which will of course generate additional revenues and cash earnings. Just as importantly, 'la Caixa' provides us a leading market position in Spain from which to drive long term growth."
David E. Mangum, EVP and CFO, stated, "In an effort to assist investors in reviewing the company's underlying performance, and with the acquisition of 'la Caixa', we are supplementing our financial reporting with earnings per share on a cash basis, which excludes the impact of acquisition-related amortization, special or non-recurring charges, and their related tax effects. On a cash basis, the company reported fiscal 2011 second quarter diluted earnings per share from continuing operations comparable to the prior year quarter of $0.76." (See Schedule 3 Cash Earnings income statements).
The company expects the "la Caixa" joint venture to add revenue of $25 million to $30 million and to be dilutive to our GAAP and normalized earnings per share by $0.02 to $0.04 for fiscal 2011 and accretive by $0.02 to $0.04 to cash earnings per share.
For the full year of fiscal 2011, including the addition of the "la Caixa" joint venture, the company now expects revenue of $1,780 million to $1,820 million, or 8% to 11% growth over fiscal 2010, and diluted earnings per share from continuing operations on a cash basis of $2.95 to $3.06, reflecting 5% to 9% growth over fiscal 2010, normalized earnings per share from continuing operations of $2.66 to $2.77, reflecting growth of 5% to 9% and GAAP diluted earnings per share from continuing operations of$2.54 to $2.65 (See Schedule 9 for full details on guidance with and without the impact of "la Caixa").
Conference Call
Global Payments will hold a conference call today, January 6, 2011 at 5:00 p.m. ET to discuss financial results and business highlights. Callers may access the conference call via the company's Web site at www.globalpaymentsinc.com by clicking the "Webcast" button; or callers in North America may dial 1-888-895-3550 and callers outside North America may dial 1-706-758-8809. The pass code is "GPN." A replay of the call may be accessed through the Global Payments' Web site through January 18, 2011.
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 United States, Canada, Europe, and the Asia-Pacific region. Global Payments, a Fortune 1000 company, 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 www.globalpaymentsinc.com for more information about the company and its services.
