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GLOB PMTS : Global Payments Reports Fourth Quarter and Year End Earnings

07/27/2010 | 05:10pm US/Eastern

ATLANTA, July 27, 2010 /PRNewswire-FirstCall/ -- Global Payments Inc. (NYSE: GPN) today announced results for its fiscal fourth quarter and year ended May 31, 2010. For the full year, revenues grew 12% to $1,642.5 million compared to $1,462.3 million in the prior fiscal year. Normalized diluted earnings per share from continuing operations grew 21% to $2.54 compared to $2.10 in the prior year.

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For the fourth quarter, revenues grew 16% to $425.1 million compared to $367.9 million in the prior year. Normalized diluted earnings per share from continuing operations grew 35% to $0.58 compared to $0.43 in the prior year quarter.

These results include the favorable impact of foreign currency exchange rates during the quarter and year. On a constant currency basis (See Schedule 7), revenue and normalized diluted earnings per share from continuing operations grew 12% and 21%, respectively for the quarter and 11% and 16%, respectively for the full year.

On a GAAP basis, the company reported full year diluted earnings per share from continuing operations of $2.52 compared to $2.10 in the prior year, and for the fourth quarter GAAP basis, diluted earnings per share from continuing operations of $0.56 compared to $0.43 in the prior year quarter. The fourth quarter and full year results include a one-time, pretax termination benefit of $2.6 million (See Schedule 4 for reconciliation details).

Chairman and CEO, Paul R. Garcia, stated, "Despite a challenging macroeconomic environment, I am pleased with our strong execution in all of our regions this past year. We delivered solid results for the quarter which demonstrates steady growth in our U.S. businesses and continued successful execution in our international businesses.

"Based on our current outlook, we are providing fiscal 2011 annual revenue expectations of $1,735 million to $1,770 million, or 6% to 8% growth over fiscal 2010, and fiscal 2011 annual diluted EPS expectations of $2.68 to $2.77, reflecting 6% to 9% growth over fiscal 2010 normalized EPS from continuing operations. On a constant currency basis, we expect fiscal 2011 annual revenue growth of 7% to 9% and annual diluted earnings per share growth of 7% to 10% growth over fiscal 2010," said Garcia.

Fiscal 2011 diluted earnings per share expectations exclude an estimated $14 million or $0.12 of start-up expenses relating to a new Global Service Center in Manila, Philippines which will support customer and operational functions.

Conference Call

Global Payments will hold a conference call today, July 27, 2010 at 4:30 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 1-800-289-0544 and callers outside North America may dial 1-913-312-0710. The pass code is "GPN." A replay of the call may be accessed through the Global Payments' Web site through August 17, 2010.

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 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.

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, 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.

    SCHEDULE 1
    UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES

    (In thousands, except per share data)
    -------------------------------------

                                          Three Months Ended
                                               May 31,
                                           ------------------
                                                                         %
                                            2010           2009       Change
                                            ----           ----      -------

    Revenues                            $425,050       $367,934           16%
    --------                            --------       --------          ---

    Operating expenses:
         Cost of service                 152,322        130,224           17%
         Sales, general and
          administrative                 201,243        174,048           16%
                                         -------        -------
                                         353,565        304,272           16%
                                         -------        -------

    Operating income                      71,485         63,662           12%
    ----------------                      ------         ------          ---

    Other income (expense):
         Interest and other
          income                           1,930            651          196%
         Interest and other
          expense                         (4,814)          (925)         420%
                                          ------           ----
                                          (2,884)          (274)         953%
                                          ------           ----

    Income from continuing
     operations before
     income taxes                         68,601         63,388            8%
    Provision for income
     taxes                               (17,890)       (19,223)         (7%)
                                         -------        -------
    Income from continuing
     operations                           50,711         44,165           15%
    (Loss) income from
     discontinued
     operations, net of tax              (11,679)         2,637           NM
                                         -------
    Net income including
     noncontrolling
     interests                            39,032         46,802         (17%)
    Less: Net income
     attributable to
     noncontrolling
     interests, net of tax                (4,842)        (9,243)        (48%)
                                          ------         ------
              Net income attributable
               to Global Payments        $34,190        $37,559          (9%)
                                         =======        =======

    Amounts attributable to
     Global Payments:
        Income from continuing
         operations                      $45,869        $34,922           31%
        (Loss) income from
         discontinued
         operations, net of tax          (11,679)         2,637           NM
                                         -------          -----
              Net income attributable
               to Global Payments        $34,190        $37,559           NM
                                         =======        =======


    Basic earnings per share
     attributable to Global
     Payments:
        Income from continuing
         operations                        $0.56          $0.43           30%
        (Loss) income from
         discontinued
         operations, net of tax            (0.14)          0.04           NM
                                           -----           ----
              Net income                   $0.42          $0.47         (11%)
                                           =====          =====

    Diluted earnings per
     share attributable to
     Global Payments:
        Income from continuing
         operations                        $0.56          $0.43           30%
        (Loss) income from
         discontinued
         operations, net of tax            (0.14)          0.03           NM
                                           -----           ----
              Net income                   $0.42          $0.46          (9%)
                                           =====          =====

    Weighted average shares
     outstanding(1):
              Basic                       81,203         80,399
              Diluted                     82,142         80,920




                                         Year Ended May 31,
                                         ------------------
                                                                       %
                                            2010             2009   Change
                                            ----             ----  -------

    Revenues                          $1,642,468       $1,462,306       12%
    --------                          ----------       ----------      ---

    Operating expenses:
         Cost of service                 584,609          504,855       16%
         Sales, general and
          administrative                 734,580          664,905       10%
                                         -------          -------
                                       1,319,189        1,169,760       13%
                                       ---------        ---------

    Operating income                     323,279          292,546       11%
    ----------------                     -------          -------      ---

    Other income (expense):
         Interest and other
          income                           4,629            7,005     (34%)
         Interest and other
          expense                        (17,519)          (7,282)     141%
                                         -------           ------
                                         (12,890)            (277)      NM
                                         -------             ----

    Income from continuing
     operations before
     income taxes                        310,389          292,269        6%
    Provision for income
     taxes                               (87,379)         (85,252)       2%
                                         -------          -------
    Income from continuing
     operations                          223,010          207,017        8%
    (Loss) income from
     discontinued
     operations, net of tax               (3,901)        (132,839)      NM
                                          ------         --------
    Net income including
     noncontrolling
     interests                           219,109           74,178      195%
    Less: Net income
     attributable to
     noncontrolling
     interests, net of tax               (15,792)         (36,961)    (57%)
                                         -------          -------
              Net income attributable
               to Global Payments       $203,317          $37,217      446%
                                        ========          =======

    Amounts attributable to
     Global Payments:
        Income from continuing
         operations                     $207,218         $170,056       22%
        (Loss) income from
         discontinued
         operations, net of tax           (3,901)        (132,839)    (97%)
                                          ------         --------
              Net income attributable
               to Global Payments       $203,317          $37,217      446%
                                        ========          =======


    Basic earnings per share
     attributable to Global
     Payments:
        Income from continuing
         operations                        $2.56            $2.12       21%
        (Loss) income from
         discontinued
         operations, net of tax            (0.05)           (1.66)    (97%)
                                           -----            -----
              Net income                   $2.51            $0.46      446%
                                           =====            =====

    Diluted earnings per
     share attributable to
     Global Payments:
        Income from continuing
         operations                        $2.52            $2.10       20%
        (Loss) income from
         discontinued
         operations, net of tax            (0.04)           (1.64)    (98%)
                                           -----            -----
              Net income                   $2.48            $0.46      439%
                                           =====            =====

    Weighted average shares
     outstanding(1):
              Basic                       81,075           80,160
              Diluted                     82,120           81,049


    (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
    54, respectively for the three months ended May 31, 2009, and 442
    and 57, respectively for the year ended May 31, 2009.

    NM - Not Meaningful

    SCHEDULE 2
    INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO GLOBAL PAYMENTS
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES

    (In thousands, except per share data)

                                                 Three Months Ended
                                                      May 31,
                                                 ------------------
                                                                         %
                                                 2010          2009   Change
                                                 ----          ----  -------

    Revenues                                 $425,050      $367,934       16%
    --------                                 --------      --------      ---

    Operating expenses:
         Cost of service                      152,322       130,224       17%
         Sales, general and administrative    201,243       174,048       16%
                                              353,565       304,272       16%
                                              -------       -------

    Operating income                           71,485        63,662       12%
    ----------------                           ------        ------      ---

    Other income (expense):
         Interest and other income              1,930           651      196%
         Interest and other expense            (4,814)         (925)     420%
                                               ------          ----
                                               (2,884)         (274)     953%
                                               ------          ----

    Income from continuing operations before
     income taxes                              68,601        63,388        8%
    Provision for income taxes               (17,890)      (19,223)      (7%)
                                              -------       -------
    Income from continuing operations
     including noncontrolling interests        50,711        44,165       15%
    Less: Net income attributable to
     noncontrolling interests, net of tax      (4,842)       (9,243)    (48%)
                                               ------        ------
    Net income from continuing operations
     attributable to Global Payments          $45,869       $34,922       31%
                                              =======       =======

    Basic earnings per share                    $0.56         $0.43       30%
                                                =====         =====

    Diluted earnings per share                  $0.56         $0.43       30%
                                                =====         =====

    Weighted average shares outstanding:
              Basic                            81,203        80,399
              Diluted                          82,142        80,920

    NM - Not Meaningful



                                       Year Ended May 31,
                                       ------------------
                                                                     %
                                          2010             2009   Change
                                          ----             ----  -------

    Revenues                        $1,642,468       $1,462,306       12%
    --------                        ----------       ----------      ---

    Operating expenses:
         Cost of service               584,609          504,855       16%
         Sales, general and
          administrative               734,580          664,905       10%
                                     1,319,189        1,169,760       13%
                                     ---------        ---------

    Operating income                   323,279          292,546       11%
    ----------------                   -------          -------      ---

    Other income (expense):
         Interest and other income       4,629            7,005     (34%)
         Interest and other expense    (17,519)          (7,282)     141%
                                       -------           ------
                                       (12,890)            (277)      NM
                                       -------             ----

    Income from continuing
     operations before income taxes    310,389          292,269        6%
    Provision for income taxes         (87,379)         (85,252)       2%
                                       -------          -------
    Income from continuing
     operations including
     noncontrolling interests          223,010          207,017        8%
    Less: Net income attributable
     to noncontrolling interests,
     net of tax                        (15,792)         (36,961)    (57%)
                                       -------          -------
    Net income from continuing
     operations attributable to
     Global Payments                  $207,218         $170,056       22%
                                      ========         ========

    Basic earnings per share             $2.56            $2.12       21%
                                         =====            =====

    Diluted earnings per share           $2.52            $2.10       20%
                                         =====            =====

    Weighted average shares
     outstanding:
              Basic                     81,075           80,160
              Diluted                   82,120           81,049

    NM - Not Meaningful

    SCHEDULE 3
    SEGMENT INFORMATION CONTINUING OPERATIONS
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES

    (In thousands)
    --------------

                                           Three Months Ended
                                                 May 31,
                                           ------------------
                                           2010          2009 % Change
                                            ---           --- --------

     Revenues:
     ---------
     United States                     $242,975      $206,475       18%
     Canada                              80,720        68,515       18%
                                         ------        ------
       North America Merchant Services  323,695       274,990       18%

     Europe                              72,238        70,240        3%
     Asia-Pacific                        29,117        22,704       28%
                                         ------        ------
       International Merchant Services  101,355        92,944        9%

                                       $425,050      $367,934       16%
                                       ========      ========

     Operating Income:
     -----------------
     North America Merchant Services    $64,966       $59,563        9%
     International Merchant Services     25,346        20,627       23%
     Corporate                         (18,827)      (16,528)     (14%)
                                        -------       -------
       Operating Income                 $71,485       $63,662       12%
                                        =======       =======



                                           Year Ended May 31,
                                          ------------------
                                             2010             2009  % Change
                                              ---              ---  --------

     Revenues:
     ---------
     United States                       $902,844         $805,557        12%
     Canada                               317,272          301,294         5%
                                          -------          -------
       North America Merchant Services  1,220,116        1,106,851        10%

     Europe                               315,023          265,121        19%
     Asia-Pacific                         107,329           90,334        19%
                                          -------           ------
       International Merchant Services    422,352          355,455        19%

                                       $1,642,468       $1,462,306        12%
                                       ==========       ==========

     Operating Income:
     -----------------
     North America Merchant Services     $275,386         $272,972         1%
     International Merchant Services      113,699           82,763        37%
     Corporate                            (65,806)         (63,189)      (4%)
                                          -------          -------
       Operating Income                  $323,279         $292,546        11%
                                         ========         ========

    SCHEDULE 4
    INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO GLOBAL PAYMENTS
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES

    Reconciliation to Exclude Termination Benefits from Normalized Results

    (In thousands, except per share data)
    -------------------------------------

                                      Three Months Ended May 31,
                                      --------------------------
                                                            2010      2009
                                                            ----      ----
                                         Termination
                            Normalized   Benefits(1)      GAAP      GAAP
                            ----------   ------------     ----      ----

    Revenues                  $425,050             $-   $425,050  $367,934
    --------                  --------            ---   --------  --------

    Operating expenses:
       Cost of service         152,322              -    152,322   130,224
       Sales, general and
        administrative         198,660          2,583    201,243   174,048
                               350,982          2,583    353,565   304,272
                               -------          -----    -------   -------

    Operating income            74,068         (2,583)    71,485    63,662
    ----------------            ------         ------     ------    ------

    Other income (expense):
       Interest and other
        income                   1,930              -      1,930       651
       Interest and other
        expense                 (4,814)             -     (4,814)     (925)
                                                  ---     ------
                                (2,884)             -     (2,884)     (274)
                                ------            ---     ------      ----

    Income from continuing
     operations before
     income taxes               71,184         (2,583)    68,601    63,388
    Provision for income
     taxes                     (18,836)           946    (17,890)  (19,223)
                               -------            ---    -------   -------
    Income from continuing
     operations                 52,348         (1,637)    50,711    44,165
    Less: Net income
     attributable to
     noncontrolling
     interests, net of tax      (4,842)             -     (4,842)   (9,243)
                                ------            ---     ------    ------
    Net income from
     continuing operations
     attributable to Global
     Payments                  $47,506        $(1,637)   $45,869   $34,922
                               =======        =======    =======   =======

    Diluted shares              82,142              -     82,142    80,920
    Diluted earnings (loss)
     per share                   $0.58         $(0.02)     $0.56     $0.43
                                 =====         ======      =====     =====




                                           Year Ended May 31,
                                           ------------------
                                                         2010
                                                         ----
                                                                Termination
                                                Normalized      Benefits(1)
                                                ----------      ------------

    Revenues                                       $1,642,468             $-
    --------                                       ----------            ---

    Operating expenses:
       Cost of service                                584,609              -
       Sales, general and administrative              731,997          2,583
                                                    1,316,606          2,583
                                                    ---------          -----

    Operating income                                  325,862         (2,583)
    ----------------                                  -------         ------

    Other income (expense):
       Interest and other income                        4,629              -
       Interest and other expense                     (17,519)             -
                                                                         ---
                                                      (12,890)             -
                                                      -------            ---

    Income from continuing operations
     before income taxes                              312,972         (2,583)
    Provision for income taxes                        (88,325)           946
                                                      -------            ---
    Income from continuing operations                 224,647         (1,637)
    Less: Net income attributable to
     noncontrolling interests, net of tax             (15,792)             -
                                                      -------            ---
    Net income from continuing operations
     attributable to Global Payments                 $208,855        $(1,637)
                                                     ========        =======

    Diluted shares                                     82,120              -
    Diluted earnings (loss) per share                   $2.54         $(0.02)
                                                        =====         ======




                                           Year Ended May 31,
                                           ------------------
                                                     2010           2009
                                                     ----           ----
                                          GAAP                   GAAP
                                          ----                   ----

    Revenues                                   $1,642,468     $1,462,306
    --------                                   ----------     ----------

    Operating expenses:
       Cost of service                            584,609        504,855
       Sales, general and administrative          734,580        664,905
                                                1,319,189      1,169,760
                                                ---------      ---------

    Operating income                              323,279        292,546
    ----------------                              -------        -------

    Other income (expense):
       Interest and other income                    4,629          7,005
       Interest and other expense                 (17,519)        (7,282)
                                                  -------
                                                  (12,890)          (277)
                                                  -------           ----

    Income from continuing operations
     before income taxes                          310,389        292,269
    Provision for income taxes                    (87,379)       (85,252)
                                                  -------        -------
    Income from continuing operations             223,010        207,017
    Less: Net income attributable to
     noncontrolling interests, net of tax         (15,792)       (36,961)
                                                  -------        -------
    Net income from continuing operations
     attributable to Global Payments             $207,218       $170,056
                                                 ========       ========

    Diluted shares                                 82,120         81,049
    Diluted earnings (loss) per share               $2.52          $2.10
                                                    =====          =====



    We supplemented our reporting of income from continuing operations
    and earnings per share information determined in accordance with
    GAAP by reporting income from continuing operations and earnings per
    share for fiscal 2010 on a "normalized" basis in this earnings
    release as a measure to help evaluate performance.  We calculated
    income from continuing operations and earnings per share on a
    normalized basis by excluding non-recurring charges related to
    termination benefits.  We exclude the impact of non-recurring
    charges in order to more clearly focus on the factors we believe are
    pertinent to the daily management of our operations.  Our income
    from continuing operations and earnings per share reported on a
    normalized basis should be considered in addition to, and not as a
    substitute for, income from continuing operations and earnings per
    share determined in accordance with GAAP. Our measures of income
    from continuing operations and earnings per share on a normalized
    basis reflect management's judgment of particular items, and may not
    be comparable to similarly titled measures reported by other
    companies.

    (1) Termination benefits represent amounts due to our former
    President and Chief Operating Officer pursuant to his termination
    agreement dated April 21, 2010.  Also reflects the related income
    tax benefit.

    SCHEDULE 5
    CONSOLIDATED BALANCE SHEETS
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES
    (In thousands)
    --------------

                                                      May 31,     May 31,
                                                           2010        2009
                                                           ----        ----

    ASSETS
    Current assets:
      Cash and cash equivalents                        $769,946    $426,935
      Accounts receivable, net of allowances for
       doubtful accounts of $269 and $553,
       respectively                                     131,817     122,831
      Claims receivable, net of allowance for
       losses of $4,208 and $4,026, respectively            664         607
      Settlement processing assets                       13,741       6,675
      Inventory, net of obsolescence reserves of
       $908 and $653, respectively                        9,740       5,914
      Deferred income taxes                               2,752       3,789
      Prepaid expenses and other current assets          39,604      28,437
          Total current assets                          968,264     595,188
                                                        -------     -------

    Property and equipment, net of accumulated
     depreciation of $119,402 and $121,189,
     respectively                                       183,938     176,226
    Goodwill                                            569,090     625,120
    Other intangible assets, net of accumulated
     amortization of $145,076 and $189,560,
     respectively                                       205,110     258,094
    Deferred income taxes                                90,470           -
    Other                                                22,454      22,193
                                                         ------      ------

    Total assets                                     $2,039,326  $1,676,821
                                                     ==========  ==========

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
      Lines of credit                                   $79,187     $10,174
      Notes payable - current portion                   148,169      29,393
      Payables to money transfer beneficiaries                -      12,343
      Accounts payable and accrued liabilities          173,575     167,700
      Settlement processing obligations                 265,110     106,934
      Income taxes payable                                6,430       9,633
          Total current liabilities                     672,471     336,177
                                                        -------     -------

    Notes payable                                       272,965     167,610
    Deferred income taxes                                88,265      76,405
    Other long-term liabilities                          31,436      19,009
          Total liabilities                           1,065,137     599,201
                                                      ---------     -------

    Commitments and contingencies

    Redeemable noncontrolling interest                  102,672     399,377

    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; 82,028,945 issued
          and 79,646,055 outstanding at May 31, 2010
           and 80,445,009 issued and
         outstanding at May 31, 2009                          -           -
      Paid-in capital                                   460,747     405,241
      Retained earnings                                 544,772     273,090
      Treasury stock; 2,383,890 shares at May 31,
       2010                                            (100,000)          -
      Accumulated other comprehensive loss              (44,255)    (10,901)
          Total Global Payments Inc. shareholders'
           equity                                       861,264     667,430
                                                        -------     -------
      Noncontrolling interest                            10,253      10,813
          Total equity                                  871,517     678,243
                                                        -------     -------

    Total liabilities and equity                     $2,039,326  $1,676,821
                                                     ==========  ==========


    Presentation of prior year amounts have been adjusted to
    retrospectively conform with FASB guidance on noncontrolling
    interests.

    SCHEDULE 6
    UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES


    (In thousands)
    --------------

                                                  Year Ended May 31,
                                                  ------------------
                                                    2010             2009
                                                    ----             ----

    Cash flows from operating activities:
      Net income including noncontrolling
       interests                                $219,109          $74,178
      Adjustments to reconcile net income to
       net cash provided by operating
       activities:
        Depreciation and amortization of
         property and equipment                   35,864           35,434
        Amortization of acquired intangibles      32,803           30,854
        Share-based compensation expense          18,072           14,570
        Provision for operating losses and bad
         debts                                    25,025           25,595
        Deferred income taxes                      2,722            5,457
        Loss on disposal of discontinued
         operations                               24,310                -
        Impairment of goodwill and identified
         intangible assets                             -          147,664
        Other, net                                 2,443            4,036
      Changes in operating assets and
       liabilities, net of the effects of
       acquisitions:
        Accounts receivable                      (11,689)         (25,077)
        Claims receivable                        (14,936)         (17,201)
        Settlement processing assets and
         obligations, net                        140,962           60,700
        Inventory                                 (4,727)          (1,653)
        Prepaid expenses and other assets        (13,710)           4,438
        Payables to money transfer
         beneficiaries                            (6,107)           3,067
        Accounts payable and accrued
         liabilities                              18,803           23,251
        Income taxes payable                      (3,183)          (2,342)
                                                  ------           ------
          Net cash provided by operating
           activities                            465,761          382,971
                                                 -------          -------

    Cash flows from investing activities:
      Business and intangible asset
       acquisitions                              (29,513)        (525,205)
      Net proceeds from disposition of
       business                                   60,231                -
      Capital expenditures                       (56,054)         (40,940)
      Net increase in financing receivables         (179)               -
      Proceeds from sale of investment and
       contractual rights                            311            6,888
                                                     ---            -----
          Net cash used in investing activities  (25,204)        (559,257)
                                                 -------         --------

    Cash flows from financing activities:
      Net borrowings on lines of credit           69,013            8,647
      Proceeds from issuance of notes
       payable                                   305,744          200,000
      Principal payments under notes payable     (75,205)         (16,734)
      Acquisition of redeemable
       noncontrolling interests                 (307,675)               -
      Proceeds from stock issued under
       share-based compensation plans             30,248            9,050
      Tax benefit from share-based
       compensation plans                          7,186              880
      Repurchase of common stock                 (98,080)
      Dividends paid                              (6,497)          (6,417)
      Contribution from noncontrolling
       interest holder                                 -              358
      Distribution to noncontrolling
       interests                                 (20,484)         (34,299)
                                                 -------          -------
          Net cash (used in) provided by
           financing activities                  (95,750)         161,485
                                                 -------          -------

    Effect of exchange rate changes on
     cash                                         (1,796)         (14,324)
                                                  ------          -------

    Increase (decrease) in cash and cash
     equivalents                                 343,011          (29,125)
    Cash and cash equivalents, beginning
     of period                                   426,935          456,060
    Cash and cash equivalents, end of
     period                                     $769,946         $426,935
                                                --------         --------


    Presentation of prior year amounts have been adjusted to
    retrospectively conform with FASB guidance on noncontrolling
    interests.

    SCHEDULE 7
    CONSTANT CURRENCY SUMMARY
    GLOBAL PAYMENTS INC. AND SUBSIDIARIES

    (In millions, except per share data)
    ------------------------------------

                                            Q4 FY10   % change  YTD FY10
                                           Actual    Q4 FY09    Actual
                                           ------    -------    ------

     Revenues
     --------
     Constant currency(1)                      $411         12%   $1,625
     Foreign currency impact(2)                  14          4%       17
                                                ---        ---       ---
       Revenues from continuing operations     $425         16%   $1,642
                                               ====        ===    ======


     Diluted Earnings Per Share
     --------------------------
     Constant currency(1)                     $0.52         21%    $2.44
     Foreign currency impact(2)                0.06         14%     0.10
                                               ----        ---      ----
     Normalized diluted EPS from
      continuing operations                    0.58         35%     2.54
     Termination benefits(3)                  (0.02)       (5%)    (0.02)
                                              -----       ----     -----
       Diluted EPS from continuing
        operations                            $0.56         30%    $2.52
                                              =====        ===     =====






                                                                          %
                                            % change    Fiscal 2011    Change
                                           YTD FY09       Outlook       FY10
                                           --------       -------       ----

     Revenues
     --------
                                                                        7% to
     Constant currency(1)                         11% $1,740 to $1,775      9%
     Foreign currency impact(2)                    1%              ---    ---
                                                 ---               ---    ---
                                                                        6% to
       Revenues from continuing operations        12% $1,735 to $1,770      8%
                                                 ===  ================ ======


     Diluted Earnings Per Share
     --------------------------
                                                                        7% to
     Constant currency(1)                         16%   $2.71 to $2.79     10%
     Foreign currency impact(2)                    5%              ---    ---
                                                 ---               ---    ---
     Normalized diluted EPS from                                        6% to
      continuing operations                       21%   $2.68 to $2.77      9%
     Termination benefits(3)                     (1%)              ---    ---
                                                ----               ---    ---
       Diluted EPS from continuing                                      6% to
        operations                                20%   $2.68 to $2.77     10%
                                                 ===    ============== ======




    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.

    (1) Reflects current period results on a pro forma basis as if
    foreign currency rates did not change from the comparable prior year
    period.

    (2) Reflects the impact of changes in foreign currency rates from the
    comparable prior year period.

    (3) Termination benefits represent amounts due to our former
    President and Chief Operating Officer pursuant to his termination
    agreement dated April 21, 2010.  Also reflects the related income
    tax benefit.


    Contact:    Jane M. Elliott
                770-829-8234 Voice
                770-829-8267 Fax
                investor.relations@globalpay.com

SOURCE Global Payments Inc.

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