GLOBAL PAYMENTS INC - FORM 8-K - EX-99.1

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8-K - 8-K - GLOBAL PAYMENTS INC	d277508d8k.htm

Exhibit 99.1

LOGO

Contact: Jane M. Elliott

770-829-8234 Voice

770-829-8267 Fax

investor.relations@globalpay.com

Global Payments Reports Second Quarter Earnings

ATLANTA, January 5, 2012 -- Global Payments Inc. (NYSE: GPN) today announced results for its fiscal second quarter ended November 30, 2011. For the second quarter, revenues grew 20% to $530.5 million compared to $443.5 million in the prior fiscal year. Cash earnings per share grew 13% to $0.86 compared to $0.76 in the prior year (See Schedule 2 for Cash Earnings). On a GAAP basis, the company reported fiscal 2012 second quarter diluted earnings per share of $0.78 compared to $0.67 in the prior year (See Schedule 1 for GAAP Consolidated Statements of Income).

GAAP and cash earnings per share results include approximately $15 million of revenue and nearly $0.02 of earnings per share related to debit interchange legislation with corresponding unfavorable impact on operating margin.

Chairman and CEO Paul R. Garcia stated, “We delivered solid second quarter results driven by continued steady performances in all of our businesses and the December 2010 addition of Spain. I am also pleased to announce three targeted merchant portfolio acquisitions which will expand our international footprint and U.S. ecommerce presence. First, we increased our distribution in Russia by acquiring a merchant business with more than 6,000 merchants from Alfa-Bank. Secondly, we have agreed to acquire HSBC’s merchant business in Malta consisting of nearly 4,000 merchants, which is pending regulatory approval, and thirdly we have signed an agreement to acquire CyberSource’s U.S. merchant acquiring portfolio from Visa.

“I am pleased to note that we continue to expect overall total company cash margin expansion of as much as 50 basis points in fiscal 2012 excluding the effect of recent debit legislation and the acquisitions,” continued Mr. Garcia.

--More--

GPN Reports Second Quarter Earnings

January 5, 2012

Page 2

David E. Mangum, Senior Executive Vice President and CFO, stated, “Including the effect of the debit legislation as well as the three recent acquisitions, we are increasing our annual revenue expectations for fiscal 2012 to $2,150 million to $2,200 million, or 16% to 18% growth over fiscal 2011. We are also increasing fiscal 2012 diluted earnings per share expectations on a cash basis to a range of $3.50 to $3.58, reflecting 14% to 16% growth over fiscal 2011 and annual fiscal 2012 GAAP diluted earnings per share to $3.14 to $3.22, reflecting 20% to 23% growth over the prior year.” (See Schedule 9 for Outlook Summary.)

Cash earnings exclude normalized adjustments and acquisition intangible amortization expense from continuing operations. (See Schedule 6 and 7 for Reconciliations of Cash Earnings to GAAP, Schedule 2 for Cash Earnings and Schedule 3 for Segment Information on GAAP and Cash Earnings).

Conference Call

Global Payments will hold a conference call today, January 5, 2012 at 5:00 p.m. EST to discuss financial results and business highlights. Callers may access the conference call via the investor relations page of 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 19, 2012.

--More--

GPN Reports Second Quarter Earnings

January 5, 2012

Page 3

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.

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 sovereign insolvency situations and a decline in the value of the U.S. dollar, developments in the implementation of debit interchange legislation, 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 GAAP CONSOLIDATED STATEMENTS OF INCOME

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands, except per share data)


	Three Months Ended November 30,								Six Months Ended November 30,
	2011			2010			% Change		2011			2010			% Change

Revenues	$	530,505		$	443,526			20%	$	1,073,276		$	883,665			21%


Operating expenses:
Cost of service		185,931			154,205			21%		377,467			305,246			24%
Sales, general and administrative		247,994			206,178			20%		490,619			413,168			19%

		433,925			360,383			20%		868,086			718,414			21%


Operating income		96,580			83,143			16%		205,190			165,251			24%


Other income (expense):
Interest and other income		2,259			4,072			(45%)		4,760			5,608			(15%)
Interest and other expense		(4,878	)		(4,299	)		13%		(8,965	)		(9,140	)		(2%)

		(2,619	)		(227	)		1054%		(4,205	)		(3,532	)		19%

Income from continuing operations before income taxes		93,961			82,916			13%		200,985			161,719			24%
Provision for income taxes		(25,812	)		(24,546	)		5%		(60,755	)		(49,527	)		23%

Income from continuing operations		68,149			58,370			17%		140,230			112,192			25%
Loss from discontinued operations, net of tax		-			(487	)		NM		-			(515	)		NM

Net income including noncontrolling interests		68,149			57,883			18%		140,230			111,677			26%
Less: Net income attributable to noncontrolling interests, net of tax		(6,968	)		(4,378	)		59%		(15,075	)		(8,804	)		71%

Net income attributable to Global Payments	$	61,181		$	53,505			14%	$	125,155		$	102,873			22%


Amounts attributable to Global Payments:
Income from continuing operations	$	61,181		$	53,992			13%	$	125,155		$	103,388			21%
Loss from discontinued operations, net of tax		-			(487	)		NM		-			(515	)		NM

Net income attributable to Global Payments	$	61,181		$	53,505			14%	$	125,155		$	102,873			22%


Basic earnings per share attributable to Global Payments:
Income from continuing operations	$	0.78		$	0.68			15%	$	1.58		$	1.30			22%
Loss from discontinued operations, net of tax		-			(0.01	)		NM		-			(0.01	)		NM

Net income attributable to Global Payments	$	0.78		$	0.67			16%	$	1.58		$	1.29			22%


Diluted earnings per share attributable to Global Payments:
Income from continuing operations	$	0.78		$	0.67			16%	$	1.57		$	1.29			22%
Loss from discontinued operations, net of tax		-			-			NM		-			(0.01	)		NM

Net income attributable to Global Payments	$	0.78		$	0.67			16%	$	1.57		$	1.28			23%


Weighted average shares outstanding:
Basic		78,348			79,701					79,207			79,642
Diluted		78,876			80,344					79,831			80,310

NM - Not Meaningful

SCHEDULE 2

CASH EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands, except per share data)


	Three Months Ended November 30,								Six Months Ended November 30,
	2011			2010			% Change		2011			2010			% Change

Revenues	$	530,505		$	443,526			20%	$	1,073,276		$	883,665			21%


Operating expenses:
Cost of service		173,778			145,003			20%		352,671			287,774			23%
Sales, general and administrative		247,994			203,425			22%		490,619			407,821			20%

		421,772			348,428			21%		843,290			695,595			21%


Operating income		108,733			95,098			14%		229,986			188,070			22%


Other income (expense):
Interest and other income		2,259			4,072			(45%)		4,760			5,608			(15%)
Interest and other expense		(4,878	)		(4,299	)		13%		(8,965	)		(9,140	)		(2%)

		(2,619	)		(227	)		1054%		(4,205	)		(3,532	)		19%


Income from continuing operations before income taxes		106,114			94,871			12%		225,781			184,538			22%
Provision for income taxes		(29,569	)		(28,843	)		3%		(68,251	)		(54,793	)		25%

Income from continuing operations including noncontrolling interests		76,545			66,028			16%		157,530			129,745			21%
Less: Net income attributable to noncontrolling interests, net of tax		(8,913	)		(4,701	)		90%		(19,085	)		(9,440	)		102%

Net income from continuing operations attributable to Global Payments	$	67,632		$	61,327			10%	$	138,445		$	120,305			15%


Basic earnings per share	$	0.86		$	0.77			12%	$	1.75		$	1.51			16%


Diluted earnings per share	$	0.86		$	0.76			13%	$	1.73		$	1.50			15%


Weighted average shares outstanding:
Basic		78,348			79,701					79,207			79,642
Diluted		78,876			80,344					79,831			80,310

NM - Not Meaningful

See Schedules 6 and 7 for a reconciliation of cash earnings from continuing operations to GAAP.

SCHEDULE 3

SEGMENT INFORMATION

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)


	Three Months Ended November 30,
	2011						2010						% Change
	GAAP			Cash Earnings			GAAP			Cash Earnings			GAAP		Cash Earnings

Revenues:
United States	$	293,416		$	293,416		$	245,671		$	245,671			19%		19%
Canada		85,521			85,521			81,453			81,453			5%		5%

North America merchant services		378,937			378,937			327,124			327,124			16%		16%

Europe		115,169			115,169			79,881			79,881			44%		44%
Asia-Pacific		36,399			36,399			36,521			36,521			(0%)		(0%)

International merchant services		151,568			151,568			116,402			116,402			30%		30%


Total revenues	$	530,505		$	530,505		$	443,526		$	443,526			20%		20%


Operating income:
North America merchant services	$	70,673		$	73,495		$	67,131		$	70,287			5%		5%
International merchant services		44,494			53,825			35,349			40,165			26%		34%
Corporate		(18,587	)		(18,587	)		(19,337	)		(15,354	)		4%		(21%)

Operating income	$	96,580		$	108,733		$	83,143		$	95,098			16%		14%


	Six Months Ended November 30,
	2011						2010						% Change
	GAAP			Cash Earnings			GAAP			Cash Earnings			GAAP		Cash Earnings

Revenues:
United States	$	580,841		$	580,841		$	501,302		$	501,302			16%		16%
Canada		176,742			176,742			162,666			162,666			9%		9%

North America merchant services		757,583			757,583			663,968			663,968			14%		14%

Europe		244,583			244,583			153,677			153,677			59%		59%
Asia-Pacific		71,110			71,110			66,020			66,020			8%		8%

International merchant services		315,693			315,693			219,697			219,697			44%		44%


Total revenues	$	1,073,276		$	1,073,276		$	883,665		$	883,665			21%		21%


Operating income:
North America merchant services	$	142,431		$	148,111		$	135,499		$	141,672			5%		5%
International merchant services		100,152			119,268			66,742			76,215			50%		56%
Corporate		(37,393	)		(37,393	)		(36,990	)		(29,817	)		(1%)		(25%)

Operating income	$	205,190		$	229,986		$	165,251		$	188,070			24%		22%

See Schedule 8 for reconciliation of cash earnings segment information to GAAP.

SCHEDULE 4

CONSOLIDATED BALANCE SHEETS

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)


	November 30,		May 31,
	2011		2011
	(unaudited)

ASSETS
Current assets:
Cash and cash equivalents	$	770,860	$	1,354,285
Accounts receivable, net of allowances for doubtful accounts of $548 and $472, respectively		162,643		166,540
Claims receivable, net of allowance for losses of $4,169 and $3,870, respectively		1,024		914
Settlement processing assets		206,642		280,359
Inventory		11,790		7,640
Deferred income taxes		2,893		2,946
Prepaid expenses and other current assets		34,558		35,291

Total current assets		1,190,410		1,847,975

Goodwill		741,081		779,637
Other intangible assets, net of accumulated amortization of $214,435 and $197,066, respectively		299,680		341,500
Property and equipment, net of accumulated depreciation of $161,672 and $147,670, respectively		258,041		256,301
Deferred income taxes		96,508		104,140
Other		28,619		20,978


Total assets	$	2,614,339	$	3,350,531


LIABILITIES AND EQUITY
Current liabilities:
Lines of credit	$	225,676	$	270,745
Current portion of long-term debt		87,962		85,802
Accounts payable and accrued liabilities		206,420		241,578
Settlement processing obligations		270,290		838,565
Income taxes payable		17,076		7,674

Total current liabilities		807,424		1,444,364


Long-term debt		203,222		268,217
Deferred income taxes		115,157		116,432
Other long-term liabilities		54,788		49,843

Total liabilities		1,180,591		1,878,856


Commitments and contingencies

Redeemable noncontrolling interest		139,934		133,858

Equity:
Preferred stock, no par value; 5,000,000 shares authorized and none issued		-		-
Common stock, no par value; 200,000,000 shares authorized; 78,355,001 issued and outstanding at November 30, 2011 and 80,334,781 issued and outstanding at May 31, 2011		-		-
Paid-in capital		342,914		419,591
Retained earnings		790,532		685,624
Accumulated other comprehensive income		12,909		79,320

Total Global Payments shareholders’ equity		1,146,355		1,184,535

Noncontrolling interest		147,459		153,282

Total equity		1,293,814		1,337,817


Total liabilities and equity	$	2,614,339	$	3,350,531

SCHEDULE 5

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)


	Six Months Ended November 30,
	2011			2010

Cash flows from operating activities:
Net income including noncontrolling interests	$	140,230		$	111,677
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization of property and equipment		23,444			19,082
Amortization of acquired intangibles		24,796			15,646
Provision for operating losses and bad debts		13,061			10,146
Share-based compensation expense		8,425			7,690
Deferred income taxes		5,915			3,287
Other, net		(100	)		(3,556	)
Changes in operating assets and liabilities, net of the effects of acquisitions:
Accounts receivable		3,897			(17,549	)
Claims receivable		(7,880	)		(8,095	)
Settlement processing assets and obligations, net		(499,849	)		(239,970	)
Inventory		(4,212	)		1,954
Prepaid expenses and other assets		62			(4,600	)
Accounts payable and other accrued liabilities		(31,257	)		18,990
Income taxes payable		9,402			24,382

Net cash used in operating activities		(314,066	)		(60,916	)


Cash flows from investing activities:
Business and intangible asset acquisitions, net of cash acquired		(7,000	)		(3,488	)
Capital expenditures		(35,146	)		(51,709	)
Preliminary settlement of working capital adjustments from disposition of business		-			(1,921	)
Net decrease in financing receivables		1,203			991

Net cash used in investing activities		(40,943	)		(56,127	)


Cash flows from financing activities:
Net (payments) borrowings on lines of credit		(45,069	)		101,694
Proceeds from issuance of long-term debt		71,374			4,410
Principal payments under long-term debt		(131,345	)		(83,331	)
Proceeds from stock issued under employee stock plans, net of repurchases		(768	)		1,962
Repurchase of common stock		(99,604	)		(14,900	)
Tax benefit from employee share-based compensation		1,436			118
Distribution to noncontrolling interests		(4,660	)		(4,385	)
Dividends paid		(3,169	)		(3,180	)

Net cash (used in) provided by financing activities		(211,805	)		2,388


Effect of exchange rate changes on cash		(16,611	)		8,369


Decrease in cash and cash equivalents		(583,425	)		(106,286	)
Cash and cash equivalents, beginning of period		1,354,285			769,946

Cash and cash equivalents, end of period	$	770,860		$	663,660

SCHEDULE 6

RECONCILIATION OF QUARTERLY CASH EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS TO GAAP

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands, except per share data)


	Three Months Ended November 30, 2011
	GAAP								Cash Earnings Adjustments¹			Cash Earnings


Revenues	$	530,505							$	-		$	530,505


Operating expenses:
Cost of service		185,931								(12,153	)		173,778
Sales, general and administrative		247,994								-			247,994

		433,925								(12,153	)		421,772


Operating income		96,580								12,153			108,733


Other income (expense):
Interest and other income		2,259								-			2,259
Interest and other expense		(4,878	)							-			(4,878	)

		(2,619	)							-			(2,619	)


Income from continuing operations before income taxes		93,961								12,153			106,114
Provision for income taxes		(25,812	)							(3,757	)		(29,569	)

Income from continuing operations		68,149								8,396			76,545
Less: Net income attributable to noncontrolling interests, net of tax		(6,968	)							(1,945	)		(8,913	)

Net income from continuing operations attributable to Global Payments	$	61,181							$	6,451		$	67,632


Diluted shares		78,876											78,876
Diluted earnings per share	$	0.78							$	0.08		$	0.86


	Three Months Ended November 30, 2010
	GAAP			Employee Termination and Other²			Foreign Tax Rate		Cash Earnings Adjustments¹			Cash Earnings


Revenues	$	443,526		$	-		$	-	$	-		$	443,526


Operating expenses:
Cost of service		154,205			(1,230	)		-		(7,972	)		145,003
Sales, general and administrative		206,178			(2,753	)		-		-			203,425

		360,383			(3,983	)		-		(7,972	)		348,428


Operating income		83,143			3,983			-		7,972			95,098


Other income (expense):
Interest and other income		4,072			-			-		-			4,072
Interest and other expense		(4,299	)		-			-		-			(4,299	)

		(227	)		-			-		-			(227	)


Income from continuing operations before income taxes		82,916			3,983			-		7,972			94,871
Provision for income taxes		(24,546	)		(1,436	)				(2,861	)		(28,843	)

Income from continuing operations		58,370			2,547			-		5,111			66,028
Less: Net income attributable to noncontrolling interests, net of tax		(4,378	)		-			-		(323	)		(4,701	)

Net income from continuing operations attributable to Global Payments	$	53,992		$	2,547		$	-	$	4,788		$	61,327


Diluted shares		80,344											80,344
Diluted earnings per share	$	0.67		$	0.03		$	-	$	0.06		$	0.76

¹ Represents adjustments to cost of service to exclude acquisition intangible amortization expense from continuing operations and the related income tax benefit.

²Reflects expenses of start-up costs related to our new Global Service Center in Manila, Philippines and employee termination and relocation benefits and the related income tax benefits.

We supplemented our reporting of income from continuing operations and the related earnings per share information determined in accordance with GAAP by reporting income from continuing operations and the related earnings per share for the three months ended November 30, 2011 and 2010 on a “cash earnings” basis in this earnings release as a measure to help evaluate performance. We calculated November 30, 2011 income from continuing operations and earnings per share on a cash basis by excluding acquisition intangible amortization from our results. We calculated November 30, 2010 income from continuing operations and earnings per share on a cash basis by excluding charges related to employee termination and relocation benefits, certain one-time costs related to our Global Service Center, and acquisition intangible amortization from our results. We exclude these 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 cash earnings 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 cash earnings basis reflect management’s judgment of particular items, and may not be comparable to similarly titled measures reported by other companies.

SCHEDULE 7

RECONCILIATION OF YEAR TO DATE CASH EARNINGS ATTRIBUTABLE TO GLOBAL PAYMENTS TO GAAP

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands, except per share data)


	Six Months Ended November 30, 2011
	GAAP								Cash Earnings Adjustments¹			Cash Earnings


Revenues	$	1,073,276							$	-		$	1,073,276


Operating expenses:
Cost of service		377,467								(24,796	)		352,671
Sales, general and administrative		490,619								-			490,619

		868,086								(24,796	)		843,290


Operating income		205,190								24,796			229,986


Other income (expense):
Interest and other income		4,760								-			4,760
Interest and other expense		(8,965	)							-			(8,965	)

		(4,205	)							-			(4,205	)


Income from continuing operations before income taxes		200,985								24,796			225,781
Provision for income taxes		(60,755	)							(7,496	)		(68,251	)

Income from continuing operations		140,230								17,300			157,530
Less: Net income attributable to noncontrolling interests, net of tax		(15,075	)							(4,010	)		(19,085	)

Net income from continuing operations attributable to Global Payments	$	125,155							$	13,290		$	138,445


Diluted shares		79,831											79,831
Diluted earnings per share	$	1.57							$	0.18		$	1.73


	Six Months Ended November 30, 2010
	GAAP			Employee Termination and Other²			Foreign Tax Rate³		Cash Earnings Adjustments¹			Cash Earnings


Revenues	$	883,665		$	-		$	-	$	-		$	883,665


Operating expenses:
Cost of service		305,246			(1,826	)		-		(15,646	)		287,774
Sales, general and administrative		413,168			(5,347	)		-		-			407,821

		718,414			(7,173	)		-		(15,646	)		695,595


Operating income		165,251			7,173			-		15,646			188,070


Other income (expense):
Interest and other income		5,608			-			-		-			5,608
Interest and other expense		(9,140	)		-			-		-			(9,140	)

		(3,532	)		-			-		-			(3,532	)


Income from continuing operations before income taxes		161,719			7,173			-		15,646			184,538
Provision for income taxes		(49,527	)		(2,598	)		2,479		(5,147	)		(54,793	)

Income from continuing operations		112,192			4,575			2,479		10,499			129,745
Less: Net income attributable to noncontrolling interests, net of tax		(8,804	)		-			-		(636	)		(9,440	)

Net income from continuing operations attributable to Global Payments	$	103,388		$	4,575		$	2,479	$	9,863		$	120,305


Diluted shares		80,310											80,310
Diluted earnings per share	$	1.29		$	0.06		$	0.03	$	0.12		$	1.50

¹ Represents adjustments to cost of service to exclude acquisition intangible amortization expense from continuing operations and the related income tax benefit.

²Reflects expenses of start-up costs related to our new Global Service Center in Manila, Philippines and employee termination and relocation benefits and the related income tax benefits.

³ Represents a one-time, non-cash write-down of a deferred tax asset we established in July 2009 when we purchased the remaining 49% of our UK business. The write-down resulted from a legislated reduction to the tax rate of 1%.

We supplemented our reporting of income from continuing operations and the related earnings per share information determined in accordance with GAAP by reporting income from continuing operations and the related earnings per share for the six months ended November 30, 2011 and 2010 on a “cash earnings” basis in this earnings release as a measure to help evaluate performance. We calculated November 30, 2011 income from continuing operations and earnings per share on a cash basis by excluding acquisition intangible amortization from our results. We calculated November 30, 2010 income from continuing operations and earnings per share on a cash basis by excluding charges related to employee termination and relocation benefits, certain one-time costs related to our Global Service Center, the legislated tax rate reduction and acquisition intangible amortization from our results. We exclude these 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 cash earnings 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 cash earnings basis reflect management’s judgment of particular items, and may not be comparable to similarly titled measures reported by other companies.

SCHEDULE 8

RECONCILIATION OF CASH EARNINGS SEGMENT INFORMATION TO GAAP

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)


	Three Months Ended November 30,
	2011								2010
	GAAP			Cash Earnings Adjustments¹		Cash Earnings			GAAP			Employee Termination and Other²		Cash Earnings Adjustments¹		Cash Earnings


Revenues:
United States	$	293,416		$	-	$	293,416		$	245,671		$	-	$	-	$	245,671
Canada		85,521			-		85,521			81,453			-		-		81,453

North America merchant services		378,937			-		378,937			327,124			-		-		327,124

Europe		115,169			-		115,169			79,881			-		-		79,881
Asia-Pacific		36,399			-		36,399			36,521			-		-		36,521

International merchant services		151,568			-		151,568			116,402			-		-		116,402


Total revenues	$	530,505		$	-	$	530,505		$	443,526		$	-	$	-	$	443,526


Operating income:
North America merchant services	$	70,673		$	2,822	$	73,495		$	67,131		$	-	$	3,156	$	70,287
International merchant services		44,494			9,331		53,825			35,349			-		4,816		40,165
Corporate		(18,587	)		-		(18,587	)		(19,337	)		3,983		-		(15,354	)

Operating income	$	96,580		$	12,153	$	108,733		$	83,143		$	3,983	$	7,972	$	95,098


	Six Months Ended November 30,
	2011								2010
	GAAP			Cash Earnings Adjustments¹		Cash Earnings			GAAP			Employee Termination and Other²		Cash Earnings Adjustments¹		Cash Earnings


Revenues:
United States	$	580,841		$	-	$	580,841		$	501,302		$	-	$	-	$	501,302
Canada		176,742			-		176,742			162,666			-		-		162,666

North America merchant services		757,583			-		757,583			663,968			-		-		663,968

Europe		244,583			-		244,583			153,677			-		-		153,677
Asia-Pacific		71,110			-		71,110			66,020			-		-		66,020

International merchant services		315,693			-		315,693			219,697			-		-		219,697


Total revenues	$	1,073,276		$	-	$	1,073,276		$	883,665		$	-	$	-	$	883,665


Operating income:
North America merchant services	$	142,431		$	5,680	$	148,111		$	135,499		$	-	$	6,173	$	141,672
International merchant services		100,152			19,116		119,268			66,742			-		9,473		76,215
Corporate		(37,393	)		-		(37,393	)		(36,990	)		7,173		-		(29,817	)

Operating income	$	205,190		$	24,796	$	229,986		$	165,251		$	7,173	$	15,646	$	188,070

¹Represents acquisition intangible amortization expense.

²Represents start-up costs related to our Global Service Center in Manila, Philippines and expenses related to employee termination and relocation benefits.

SCHEDULE 9

OUTLOOK SUMMARY

GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In millions, except per share data)


	Fiscal 2011 Actual		Fiscal 2012 Outlook	% Change FY11

Revenue Outlook
Revenues	$	1,860	$2,150 to $2,200	16% to 18%

EPS Outlook
GAAP diluted EPS	$	2.61	$3.14 to $3.22	20% to 23%
Acquisition-related intangibles and non-recurring items ¹		0.47	$0.36	-

Cash EPS	$	3.08	$3.50 to $3.58	14% to 16%

¹ Fiscal 2012 reflects $0.36 in acquisition-related intangibles and currently no non-recurring items. Acquistion-related intangibles accounted for $0.31 in fiscal 2011 and non-recurring items $0.16.

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