Contact: Phyllis McNeill
For Immediate Release
Atlanta, Thursday, September 20, 2001 – Global Payments Inc. (NYSE: GPN) today announced results for the first quarter of fiscal 2002 ended August 31, 2001. Revenue grew by 30% to $111.0 million compared to $85.2 million in the prior year. Net income of $12.9 million and diluted earnings per share of $0.34 compare to $8.3 million and $0.31 last year. Global continues to be a strong generator of cash earnings, with EBITDA of $29.7 million for the quarter compared to $21.3 million last year.
The fiscal 2001 results are stated on a normalized basis, which excludes the impact of divested businesses and other non-recurring items, and includes certain pro forma costs assuming its spin off from National Data Corporation occurred on June 1, 1999. On a GAAP reported basis, for the first quarter of fiscal 2001, revenues were $87.2 million with net income of $8.7 million and diluted earnings per share of $0.33.
The fiscal 2002 results include a complete quarter from the CIBC Canadian merchant portfolio acquired during the fourth fiscal quarter of 2001. Also during the first quarter, the company adopted SFAS 142 that requires the elimination of amortization expense related to certain intangibles. The impact in the first quarter of the accounting change was an increase in earnings per share of $0.02. For the full fiscal year, SFAS 142 is expected to increase diluted earnings per share by approximately $0.10.
In June, 2001, Global announced an agreement to acquire National Bank of Canada`s Merchant Services business and form a ten-year alliance for marketing merchant payment-related products and services to National Bank`s customers. This agreement is expected to close during the second fiscal quarter of 2002 and will make Global the largest publicly-traded, independent MasterCard and Visa acquirer in Canada.
Commenting on the results, President and CEO, Paul R. Garcia said, “We are very pleased with our strong revenue growth in both the United States and Canada. We have a well-diversified merchant portfolio, with no industry sector representing a significant portion of our total transaction volume. We have previously announced our plan for full year revenue of $455 to $462 million and diluted earnings per share of $1.19 to $1.24 for fiscal 2002. Based on our first quarter results, we believe we are on track to achieve our outlook.”
Global Payments Inc. is a leading provider of electronic transaction processing services to merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout the United States, Canada and the United Kingdom. Global Payments offers a comprehensive line of payment solutions, including credit and debit cards, business-to-business purchasing cards, gift cards, check guarantee, check verification and recovery, terminal management and funds transfer services.
This document may contain forward-looking statements concerning the Company`s operations, current and future performance and financial condition. These items involve risks and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, development difficulties, the ability to consummate and integrate acquisitions, and other risks detailed in the Company`s SEC filings, including the most recent Form 10-K. In particular, the Company is currently unable to assess the impact, if any, on its financial performance that may result from the economic effects of the terrorist attack on the United States. Notes that reconcile the presentation of the normalized results included herein to GAAP results are filed with the SEC in the Company`s most recent Form 10-K. The Company undertakes no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.