Global Payments Reports Fourth Quarter and Fiscal 2004 Earnings

This includes $30.6 million in revenue recorded in the current quarter as a result of the companys DolEx and MUZO acquisitions, which were announced earlier during the 2004 fiscal year. Excluding restructuring charges and a gain on the sale of an investment, net income grew 30 percent to $18.0 million compared to $13.8 million in the prior year quarter and diluted earnings per share grew 28 percent to $0.46 compared to $0.36 in the prior year quarter. For the fiscal year, revenue grew 22 percent to $629.3 million compared to $516.1 million in the prior year period. Excluding restructuring charges and a gain on the sale of an investment, net income grew 26 percent to $68.1 million from $54.1 million in the prior year period and diluted earnings per share grew 22 percent to $1.75 from $1.43 in the prior year period. The above results exclude restructuring and other items to more clearly eflect comparative operating performance. In accordance with GAAP, current and prior period net income and diluted earnings per share include these items. Fourth quarter GAAP net income and diluted earnings per share were $15.2 million and $0.39, respectively, compared to $13.0 million and $0.34, respectively in the prior year. For the 2004 fiscal year, GAAP net income and diluted earnings per share were $62.4 million and $1.60, respectively, compared to $53.3 million and $1.41, respectively in the prior year. During the 2004 fiscal fourth quarter, the company recognized a $4.9 million ($3.1 million, net of tax) restructuring charge. This includes a $3.1 million non-cash charge relating to employee termination benefits. The remainder of this charge relates to Globals consolidation efforts of three operating facilities and other functions into other existing locations, which was announced in the 2003 fiscal fourth quarter. As of May 31, 2004, these consolidation efforts were substantially complete. In total, the company spent $8.8 million on this plan, consistent with previous estimates. In addition during the quarter, the company recorded a gain on sale of investment in the Interest and other income line for $0.6 million, or $0.01 per share.