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Global Payments Reports Second Quarter Earnings

Thursday 23 December 2004 15:08 CET | News

Global Payments Inc. today announced results for the second quarter ended November 30, 2004. For the second quarter, revenue grew 27 percent to $188.5 million compared to $148.4 million in the prior year.

This includes $31.2 million in revenue recorded in the current quarter from the companys DolEx and MUZO acquisitions, which were completed during fiscal 2004. The company had previously recorded $3.8 million in revenue in the prior year quarter from the DolEx acquisition, which annualized on November 12, 2004. Net income grew 59 percent to $23.6 million compared to $14.9 million in the prior year quarter, and diluted earnings per share grew 55 percent to $0.59 compared to $0.38 in the prior year quarter. Excluding a prior year restructuring charge of $3.1 million, net income grew 40 percent from $16.8 million last year, and diluted earnings per share grew 37 percent from $0.43 last year. For the six months ending November 30, 2004, revenue grew 34 percent to $381.1 million compared to $284.9 million in the prior year period. Net income grew 56 percent to $47.8 million from $30.7 million in the prior period, and diluted earnings per share grew 51 percent to $1.21 from $0.80 in the prior year period. Excluding prior year restructuring charges of $4.7 million, net income grew 42 percent from $33.6 million last year, and diluted earnings per share grew 39 percent from $0.87 last year. Comments and Outlook Chairman, President and CEO, Paul R. Garcia, stated, We are pleased to report another quarter of strong financial results driven by the impact of our DolEx and MUZO acquisitions and continued momentum in our core domestic direct channel. We also continue to gain operating leverage through greater economies of scale and the benefit from last years consolidation of certain operating functions. Further, we are delighted to add Europhil to the Global Payments family and look forward to expanding the presence of our consumer- to-consumer money transfer offering into Europe. Based on our financial results and the expected impact of our Europhil acquisition, we are raising our fiscal 2005 annual revenue guidance to a range of $758 million to $768 million versus $629 million in fiscal 2004, a growth of 21 percent to 22 percent. Also based on our financial results and our higher than expected operating margins, we are raising our fiscal 2005 annual diluted earnings per share guidance to a range of $2.24 to $2.30 for growth of 28 percent to 31 percent versus diluted earnings per share of $1.75 in fiscal 2004, excluding restructuring and other items ($1.60 in fiscal 2004 on a GAAP basis). (1) Conference Call Global Payments will hold a conference call on December 23, 2004 at 10:30 a.m. EST to discuss financial results, business highlights, and the Europhil transaction. The conference call may be accessed by calling 1-888-790-1641 (U.S.) or 1-210-234-8000 (internationally) and using a pass code of GPN for both numbers, or via Web cast at globalpaymentsinc.com. A replay of the call will be available on the Global Payments Web site through January 12, 2005. Global Payments Inc. is a leading provider of electronic transaction processing services for consumers, merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi- national corporations located throughout the United States, Canada, Latin America and Europe. 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, check verification and recovery, terminal management and money transfer services.


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Categories: Payments & Commerce | Payments General
Countries: World
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