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Global Payments Reports Earnings |
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Global Payments Inc. today announced results for its fourth quarter and
fiscal year ended May 31, 2007. For the fourth quarter, revenue grew
17 percent to $280.1 million compared to $238.8 million in the prior
year. Excluding the impact of current period restructuring and other
charges and stock option expense, diluted earnings per share grew 10
percent to $0.45 compared to $0.41 in the prior year quarter.
For the 2007 fiscal year, revenue grew 17 percent to $1,061.5 million
compared to $908.1 million in the prior year period. Excluding the
impact of stock option expense in the current period and restructuring
and other charges in both periods, diluted earnings per share grew 21
percent to $1.87 from $1.54 in the prior year period.
In accordance with GAAP, the current quarter and year-to-date periods, as well as the prior year-to-date period, include certain restructuring and other charges (see
attached reconciliation schedule) primarily relating to operating center consolidations announced in March 2007 and July 2005, respectively. These
charges are reflected in our GAAP diluted earnings per share amounts. Additionally, both the current quarter and year-to-date periods include the recognition of stock option expenses as a result of the company’s June 1, 2006 adoption of Statement of Financial Accounting Standards No. 123(R) using the modified prospective method. For the three and twelve months ended May 31, 2007, GAAP diluted earnings per share were $0.40 and $1.75, respectively, compared to $0.41 and $1.53, respectively, in the prior year comparable periods.
Comments and Outlook
Chairman, President and CEO, Paul R. Garcia, stated, “Our solid fiscal 2007 results and accomplishments demonstrate continued success in our merchant services segment. This revenue growth was primarily driven by expansion in our domestic ISO channel, as well as the favorable impact from our July 2006 addition of our Asia-Pacific joint venture with HSBC. In addition, our Canadian merchant services channel benefited from a favorable Canadian currency exchange rate, as well as from certain card association incentives. Our merchant services segment growth also benefited from cost reductions and operating efficiencies achieved during the prior year. Lastly, our money transfer segment met our near-term expectations for the year, which reflect the continued unfavorable impact of a competitive domestic pricing environment and the year-over-year impact of strong results in our prior year.”
For our fiscal 2007 fourth quarter, our merchant services segment delivered solid results, with revenue growth improvements in both the United States and Europe.
Our money transfer segment performed as expected for the fourth quarter due to a continuation of the trends discussed above. We expect our money transfer
segment growth to rebound during the second half of fiscal 2008, as we annualize the impact of these trends.”
Based on these results and trends, we are providing annual fiscal 2008 revenue guidance of $1,168 million to $1,220 million. This revenue guidance reflects an expected 10 percent to 15 percent growth versus $1,061.5 million in fiscal 2007. In addition, we are providing annual fiscal 2008 diluted earnings per share
guidance of $1.85 to $1.94, or 5 percent to 10 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 potential restructuring and other charges,” said Garcia.
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