ATLANTA (Map) - ATLANTA, March 27 /PRNewswire-FirstCall/ -- Global Payments Inc. (NYSE: GPN) today announced results for its third quarter ended February 29, 2008. For the third quarter, revenue grew 19 percent to $310.6 million compared to $260.4 million in the prior year. Excluding the favorable impact of a non-recurring, non-cash operating tax item (included in sales, general and administrative expenses), diluted earnings per share grew 5 percent to $0.44 compared to $0.42 in the prior year quarter.

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For the nine months ended February 29, 2008, revenue grew 19 percent to $930.4 million compared to $781.4 million in the prior year period. Excluding the impact of current period restructuring charges and the operating tax item described above, diluted earnings per share grew 9 percent to $1.46 from $1.34 in the prior year period.

In accordance with GAAP, the current quarter and year-to-date periods include restructuring charges and the operating tax item described above (see attached reconciliation schedule). These items are reflected in our GAAP diluted earnings per share amounts. For the three and nine months ended February 29, 2008, GAAP diluted earnings per share were $0.50 and $1.51, respectively, compared to $0.42 and $1.34, respectively, in the prior year comparable periods.

Comments and Outlook

Chairman, President and CEO, Paul R. Garcia, stated, "We delivered solid financial results for our fiscal third quarter, largely driven by our merchant services segment. Our domestic ISO channel continues to favorably impact our financial results through organic expansion. Our growth also continues to benefit from favorable currency exchange rates in both Canada and the Czech Republic. I am also very pleased with the strong revenue growth from our Asia-Pacific joint venture with HSBC."

"Based on these results and trends, we are providing annual fiscal 2008 revenue guidance of $1,250 million to $1,260 million. This revenue guidance reflects an expected 18 percent to 19 percent growth versus $1,061.5 million in fiscal 2007. In addition, we are providing annual fiscal 2008 diluted earnings per share guidance of $1.95 to $1.97, or 10 percent to 11 percent growth versus $1.77 in fiscal 2007.(1) This includes the impact of stock option expenses as a result of our June 1, 2006 adoption of FAS 123R. Our guidance excludes the impact of future significant acquisitions, and these earnings per share ranges exclude the impact of the operating tax item described above, in addition to restructuring and other charges," said Garcia.

Conference Call

Global Payments will hold a conference call today, March 27, 2008 at 5:00 p.m. ET to discuss financial results and business highlights. The conference call may be accessed by calling 1-888-599-4884 (U.S. and Canada) or 1-913-312-0961 (outside U.S. and Canada) and using a pass code of "GPN" for both numbers, or via Web cast at www.globalpaymentsinc.com. A replay of the call will be available on the Global Payments Web site through April 10, 2008.

(1) Fiscal 2007 diluted earnings per share was $1.75 on a GAAP basis, which includes restructuring and other charges equivalent to $0.02 in diluted earnings per share.

Global Payments Inc. (NYSE: GPN) is a leading provider of electronic transaction processing services for consumers, merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi- national corporations located throughout the United States, Canada, Latin America, Europe and the Asia-Pacific region. Global Payments offers a comprehensive line of processing solutions for credit and debit cards, business-to-business purchasing cards, gift cards, electronic check conversion and check guarantee, verification and recovery including electronic check services, as well as terminal management. The company also provides consumer money transfer services from the U.S. and Europe to destinations in Latin America, Morocco and the Philippines. For more information about the company and its services, visit www.globalpaymentsinc.com.

This announcement and comments made by Global Payments' management during the conference call 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: continued certification by credit card associations, foreign currency risks, competition and pricing, product demand, market and customer acceptance, development difficulties, the effect of economic conditions and consumer spending, security breaches or system failures, costs of capital, changes in immigration patterns, changes in state, federal or foreign laws and regulations affecting the electronic money transfer industry, increases in credit card association fees, utility or system interruptions, the ability to consummate and integrate 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.

Contact: Jane M. Elliott 770-829-8234 Voice 770-829-8267 Fax investor.relations@globalpay.com UNAUDITED CONSOLIDATED STATEMENTS OF INCOME GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands, except per share data) Three Months Ended February 29/28, 2008 2007 Revenues $310,641 $260,418 Operating expenses: Cost of service 117,661 103,555 Sales, general and administrative 133,069 105,670 250,730 209,225 Operating income 59,911 51,193 Other income (expense): Interest and other income 4,767 4,728 Interest and other expense (2,198) (2,399) 2,569 2,329 Income before income taxes and minority interest 62,480 53,522 Provision for income taxes (19,265) (17,148) Minority interest, net of tax (3,160) (2,078) Net income $40,055 $34,296 Earnings per share: Basic $0.51 $0.43 Diluted $0.50 $0.42 Weighted average shares outstanding: Basic 79,219 80,421 Diluted 80,650 81,972 UNAUDITED CONSOLIDATED STATEMENTS OF INCOME GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands, except per share data) Nine Months Ended February 29/28, 2008 2007 Revenues $930,397 $781,423 Operating expenses: Cost of service 350,483 307,511 Sales, general and administrative 394,023 306,889 Restructuring 1,317 - 745,823 614,400 Operating income 184,574 167,023 Other income (expense): Interest and other income 14,643 12,052 Interest and other expense (5,339) (6,298) 9,304 5,754 Income before income taxes and minority interest 193,878 172,777 Provision for income taxes (64,071) (55,749) Minority interest, net of tax (7,864) (7,221) Net income $121,943 $109,807 Earnings per share: Basic $1.53 $1.37 Diluted $1.51 $1.34 Weighted average shares outstanding: Basic 79,584 80,098 Diluted 81,023 81,756 CONSOLIDATED CONDENSED BALANCE SHEETS GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) February 29, May 31, 2008 2007 (Unaudited) Assets Cash and cash equivalents $388,467 $308,872 Accounts receivable, net 83,209 76,168 Claims receivable, net 2,296 2,187 Settlement processing assets 15,647 32,853 Other current assets 39,153 24,349 Current assets 528,772 444,429 Property and equipment, net 134,695 118,495 Goodwill 472,543 451,244 Other intangible assets, net 176,555 175,620 Other assets 13,204 10,841 Total assets $1,325,769 $1,200,629 Liabilities and Shareholders' Equity Lines of credit $1,126 $- Settlement processing obligations 33,643 20,617 Payable to money transfer beneficiaries 7,594 6,589 Accounts payable and other accrued liabilities 126,695 115,671 Current liabilities 169,058 142,877 Other long-term liabilities 82,431 85,043 Total liabilities 251,489 227,920 Minority interest in equity of subsidiaries 16,129 14,933 Shareholders' equity 1,058,151 957,776 Total liabilities and shareholders' equity $1,325,769 $1,200,629 UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) Nine Months Ended February 29/28, 2008 2007 Cash flows from operating activities: Net income $121,943 $109,807 Non-cash items Depreciation and amortization 32,220 30,344 Minority interest in earnings 7,794 7,664 Other, net 22,217 18,586 Changes in working capital, which provided (used) cash Settlement processing assets and obligations, net 26,297 21,608 Other, net (26,561) (24,081) Net cash provided by operating activities 183,910 163,928 Cash flows from investing activities: Capital expenditures (31,926) (23,234) Business and intangible asset acquisitions (12,051) (80,230) Net cash used in investing activities (43,977) (103,464) Cash flows from financing activities: Net borrowings on lines of credit 1,126 - Principal payments under capital leases - (746) Repurchase of common stock (87,020) - Net proceeds under share-based compensation plans and dividends 17,829 17,263 Distributions to minority interests, net (7,085) (6,751) Net cash (used in) provided by financing activities (75,150) 9,766 Effect of exchange rate changes on cash 14,812 3,354 Increase in cash and cash equivalents 79,595 73,584 Cash and cash equivalents, beginning of period 308,872 218,475 Cash and cash equivalents, end of period $388,467 $292,059 UNAUDITED CONSOLIDATED STATEMENTS OF INCOME GLOBAL PAYMENTS INC. AND SUBSIDIARIES Reconciliation to Exclude an Operating Tax Item from Normalized Results (In thousands, except per share data) Three Months Ended February 29/28, 2008 2007 Opera- ting Tax Normalized Item(1) GAAP GAAP Revenues $310,641 $- $310,641 $260,418 Operating expenses: Cost of service 117,661 - 117,661 103,555 Sales, general and administrative 140,117 (7,048) 133,069 105,670 257,778 (7,048) 250,730 209,225 Operating income 52,863 7,048 59,911 51,193 Other income/(expense): Interest and other income 4,767 - 4,767 4,728 Interest and other expense (2,198) - (2,198) (2,399) 2,569 - 2,569 2,329 Income before income taxes 55,432 7,048 62,480 53,522 Provision for income taxes (16,936) (2,329) (19,265) (17,148) Minority interest, net of tax (3,160) - (3,160) (2,078) Net income $35,336 $4,719 $40,055 $34,296 Diluted shares 80,650 - 80,650 81,972 Diluted earnings per share $0.44 $0.06 $0.50 $0.42 (1) Relates to the favorable impact of a non-recurring, non-cash operating tax item included in sales, general and administrative expenses. We define operating taxes as those that are unrelated to income taxes, such as sales and property taxes. During the three months ended February 29, 2008, we determined that a contingent liability relating to an operating tax item was no longer deemed probable. As such, we released the related liability. Also reflects the related income tax benefit using the company's effective tax rate, which is defined as the provision for income taxes divided by income before income taxes and minority interest. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME GLOBAL PAYMENTS INC. AND SUBSIDIARIES Reconciliation to Exclude Restructuring Charges and an Operating Tax Item from Normalized Results (In thousands, except per share data) Nine Months Ended February 29/28, 2008 2007 Opera- ting Restruc- Tax Normalized turing(1) Item(2) GAAP GAAP Revenues $930,397 $- $- $930,397 $781,423 Operating expenses: Cost of service 350,483 - - 350,483 307,511 Sales, general and administrative 401,071 - (7,048) 394,023 306,889 Restructuring - 1,317 - 1,317 - 751,554 1,317 (7,048) 745,823 614,400 Operating income 178,843 (1,317) 7,048 184,574 167,023 Other income/(expense): Interest and other income 14,643 - - 14,643 12,052 Interest and other expense (5,339) - - (5,339) (6,298) 9,304 - - 9,304 5,754 Income before income taxes 188,147 (1,317) 7,048 193,878 172,777 Provision for income taxes (62,191) 449 (2,329) (64,071) (55,749) Minority interest, net of tax (7,864) - - (7,864) (7,221) Net income $118,092 $(868) $4,719 $121,943 $109,807 Diluted shares 81,023 - - 81,023 81,756 Diluted earnings per share $1.46 $(0.01) $0.06 $1.51 $1.34 (1) Restructuring charges consist of employee termination benefits relating to a facility closure. Also reflects the related income tax benefit using the company's effective tax rate, which is defined as the provision for income taxes divided by income before income taxes and minority interest. (2) Relates to the favorable impact of a non-recurring, non-cash operating tax item included in sales, general and administrative expenses. We define operating taxes as those that are unrelated to income taxes, such as sales and property taxes. During the nine months ended February 29, 2008, we determined that a contingent liability relating to an operating tax item was no longer deemed probable. As such, we released the related liability. Also reflects the related income tax benefit using the company's effective tax rate, which is defined as the provision for income taxes divided by income before income taxes and minority interest. SEGMENT INFORMATION GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) Three Months Ended February 29/28, 2008 2007 Revenues Domestic direct $171,372 $135,896 Canada 61,256 54,630 Asia-Pacific 18,977 14,737 Central and Eastern Europe 14,455 12,244 Domestic indirect and other 10,666 11,564 Merchant services 276,726 229,071 Domestic 28,007 26,903 Europe 5,908 4,444 Money transfer 33,915 31,347 Total revenues $310,641 $260,418 Operating income Merchant services(1) $72,118 $62,033 Money transfer 1,156 2,249 Corporate (13,363) (13,089) Operating income $59,911 $51,193 (1) Includes the favorable impact of a non-recurring, non-cash operating tax item of $7.0 million in the three months ended February 29, 2008. SEGMENT INFORMATION GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) Nine Months Ended February 29/28, 2008 2007 Revenues Domestic direct $504,709 $403,860 Canada 193,705 170,314 Asia-Pacific 53,467 35,072 Central and Eastern Europe 42,365 38,767 Domestic indirect and other 32,894 35,178 Merchant services 827,140 683,191 Domestic 86,003 86,093 Europe 17,254 12,139 Money transfer 103,257 98,232 Total revenues $930,397 $781,423 Operating income Merchant services(1) $219,316 $196,275 Money transfer 6,117 10,995 Corporate (39,542) (40,247) Restructuring (1,317) - Operating income $184,574 $167,023 (1) Includes the favorable impact of a non-recurring, non-cash operating tax item of $7.0 million in the nine months ended February 29, 2008.