Exhibit 99.1
Global Payments Reports Fourth Quarter and Fiscal 2006 Earnings
ATLANTA, July 28 /PRNewswire-FirstCall/ -- Global Payments Inc. (NYSE: GPN) today announced results for its fourth quarter and fiscal year ended May 31, 2006. The company’s prior period earnings per share results and share amounts reflect the retroactive effect of its two-for-one stock split, which was completed through a stock dividend that was distributed on October 28, 2005.
For the fourth quarter, revenue grew 15 percent to $238.8 million compared to $207.7 million in the prior year. Excluding restructuring charges, net income grew 32 percent to $34.1 million compared to $25.9 million in the prior year quarter, and diluted earnings per share grew 28 percent to $0.41 compared to $0.32 in the prior year quarter.
For the 2006 fiscal year, revenue grew 16 percent to $908.1 million compared to $784.3 million in the prior year period. Excluding restructuring charges, net income grew 33 percent to $126.8 million compared to $95.3 million in the prior year, and diluted earnings per share grew 29 percent to $1.54 compared to $1.19 in the prior year.
In accordance with GAAP, current and prior period net income and diluted earnings per share include certain restructuring charges (see attached reconciliation schedules) relating to an operating center consolidation, which was announced in July 2005. These charges consisted of employee termination benefits and facility-related closing costs. Fourth quarter GAAP net income and diluted earnings per share were $34.1 million and $0.41, respectively, compared to $23.5 million and $0.29, respectively, in the prior year quarter. For fiscal 2006, GAAP net income and diluted earnings per share were $125.5 million and $1.53, respectively, compared to $92.9 million and $1.16, respectively, in the prior year.
During the fourth quarter, the company began assessing its operating performance using a new segment structure (see attached segment schedule). In addition, on June 1, 2006, the company adopted SFAS 123(R), which requires the recognition of compensation expense resulting from employee stock options. The company expects the adoption of SFAS 123(R) and the resulting stock option expense will lower fiscal 2007 diluted earnings per share by approximately $0.10.
For fiscal 2006, the company’s tax planning initiatives and strong international growth resulted in a lower than expected effective income tax rate of approximately 33.5 percent. The company defines its effective tax rate as the provision for income taxes divided by income before income tax and minority interest. In comparison to its expected effective income tax rate of 34.1 percent, this change added $0.01 in diluted earnings per share for the fourth quarter.
Lastly, as of July 26, 2006, the company had not experienced any operating losses in connection with the merchant contingency situation (as described in the company’s fiscal 2006 third quarter 10-Q) as a result of the cash reserves held for this merchant’s activities. Further, the company does not believe it will incur a loss in connection with this former customer in the future.
Comments and Outlook
Chairman, President and CEO, Paul R. Garcia, stated, “We are delighted with our fiscal 2006 financial results and accomplishments. We are also very excited about our HSBC joint venture and look forward to a successful partnership that we expect will provide long-term growth opportunities in the Asia-Pacific marketplace. Our fiscal 2006 solid results were driven primarily by continued strength in our North American direct merchant channels and our DolEx-branded consumer money transfer channel. For our fiscal 2007, we are providing annual revenue guidance of $1,048 million to $1,084 million, or 15 percent to 19 percent growth versus $908 million in fiscal 2006. In addition, we are providing annual fiscal 2007 diluted earnings per share guidance of $1.69 to $1.77, excluding the impact of stock option expenses, for growth of 10 percent to 15 percent versus $1.54 in fiscal 2006.”(1) Including the impact of stock option expenses, our annual fiscal 2007 diluted earnings per share guidance is $1.59 to $1.67. This guidance includes the impact of the HSBC joint venture.
Conference Call
Global Payments will hold a conference call today, July 28, 2006 at 10:30 a.m. ET to discuss financial results and business highlights. The conference call may be accessed by calling 1-888-791-2132 (U.S.) or 1-517-623-4000 (internationally) and using a pass code of “GPN” for both numbers, or via Web cast at www.globalpaymentsinc.com. A replay of the call will be available on the Global Payments Web site through August 11, 2006.
Global Payments Inc. (NYSE: GPN) 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, Europe and the Asia-Pacific. 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, verification and recovery including electronic check services, as well as terminal management. The company also provides consumer money transfer services from the U.S. and Europe to destinations in Latin America, Morocco and the Philippines. For more information about the company and its services, visit www.globalpaymentsinc.com.
(1) Fiscal 2006 diluted earnings per share was $1.53 on a GAAP basis, which includes restructuring charges equivalent to $0.01 in diluted earnings per share.
This announcement and comments made by Global Payments’ management during the conference call may contain forward-looking statements pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements involve risks and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, development difficulties, foreign currency risks, costs of capital, continued certification by credit card associations, the ability to consummate and integrate 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.
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Contact: |
Jane M. Elliott (formerly Forbes) |
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770-829-8234 Voice |
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770-829-8267 Fax |
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investor.relations@globalpay.com |
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands, except per share data)
|
|
|
Three Months Ended May 31, |
|
||||
|
|
|
|
|
||||
|
|
|
2006 |
|
2005 |
|
||
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
238,768 |
|
$ |
207,665 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Cost of service |
|
|
89,062 |
|
|
90,104 |
|
|
Sales, general and administrative |
|
|
97,305 |
|
|
74,345 |
|
|
Restructuring and other |
|
|
— |
|
|
3,726 |
|
|
|
|
|
186,367 |
|
|
168,175 |
|
|
Operating income |
|
|
52,401 |
|
|
39,490 |
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest and other income |
|
|
2,970 |
|
|
685 |
|
|
Interest and other expense |
|
|
(2,127 |
) |
|
(1,932 |
) |
|
|
|
|
843 |
|
|
(1,247 |
) |
|
Income before income taxes and minority interest |
|
|
53,244 |
|
|
38,243 |
|
|
Provision for income taxes |
|
|
(16,960 |
) |
|
(12,539 |
) |
|
Minority interest, net of tax |
|
|
(2,222 |
) |
|
(2,207 |
) |
|
Net income |
|
$ |
34,062 |
|
$ |
23,497 |
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.43 |
|
$ |
0.30 (1 |
) |
|
Diluted |
|
$ |
0.41 |
|
$ |
0.29 (1 |
) |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
79,511 |
|
|
77,772 (1 |
) |
|
Diluted |
|
|
82,912 |
|
|
80,612 (1 |
) |
|
|
|
|
(1) |
All share and per share amounts reflect the retroactive effect of the company’s two-for-one stock split. |
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands, except per share data)
|
|
|
Year Ended May 31, |
|
||||
|
|
|
|
|
||||
|
|
|
2006 |
|
2005 |
|
||
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
908,056 |
|
$ |
784,331 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Cost of service |
|
|
358,020 |
|
|
337,272 |
|
|
Sales, general and administrative |
|
|
347,070 |
|
|
283,232 |
|
|
Restructuring and other |
|
|
1,878 |
|
|
3,726 |
|
|
|
|
|
706,968 |
|
|
624,230 |
|
|
Operating income |
|
|
201,088 |
|
|
160,101 |
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest and other income |
|
|
7,576 |
|
|
2,194 |
|
|
Interest and other expense |
|
|
(7,144 |
) |
|
(8,378 |
) |
|
|
|
|
432 |
|
|
(6,184 |
) |
|
Income before income taxes and minority interest |
|
|
201,520 |
|
|
153,917 |
|
|
Provision for income taxes |
|
|
(67,522 |
) |
|
(53,351 |
) |
|
Minority interest, net of tax |
|
|
(8,474 |
) |
|
(7,670 |
) |
|
Net income |
|
$ |
125,524 |
|
$ |
92,896 |
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.59 |
|
$ |
1.20 (1 |
) |
|
Diluted |
|
$ |
1.53 |
|
$ |
1.16 (1 |
) |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
78,874 |
|
|
77,116 (1 |
) |
|
Diluted |
|
|
82,149 |
|
|
79,760 (1 |
) |
|
|
|
|
(1) |
All share and per share amounts reflect the retroactive effect of the company’s two-for-one stock split. |
CONSOLIDATED CONDENSED BALANCE SHEETS
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)
|
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May 31, |
|
May 31, |
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||
|
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|
|
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|
|
|
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|
|
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(Unaudited) |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
218,475 |
|
$ |
48,979 |
|
|
Accounts receivable, net |
|
|
67,476 |
|
|
54,932 |
|
|
Claims receivable, net |
|
|
903 |
|
|
937 |
|
|
Settlement processing assets |
|
|
39,671 |
|
|
63,435 |
|
|
Other current assets |
|
|
21,881 |
|
|
21,707 |
|
|
Current assets |
|
|
348,406 |
|
|
189,990 |
|
|
Property and equipment, net |
|
|
107,977 |
|
|
104,173 |
|
|
Goodwill |
|
|
387,280 |
|
|
372,744 |
|
|
Other intangible assets, net |
|
|
167,182 |
|
|
175,006 |
|
|
Other assets |
|
|
7,833 |
|
|
11,592 |
|
|
Total assets |
|
$ |
1,018,678 |
|
$ |
853,505 |
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
Line of credit |
|
$ |
— |
|
$ |
50,000 |
|
|
Line of credit with CIBC |
|
|
— |
|
|
8,606 |
|
|
Settlement processing obligations |
|
|
37,942 |
|
|
27,394 |
|
|
Payable to money transfer beneficiaries |
|
|
6,361 |
|
|
5,694 |
|
|
Accounts payable and other accrued liabilities |
|
|
104,606 |
|
|
88,067 |
|
|
Notes payable |
|
|
— |
|
|
1,347 |
|
|
Obligations under capital leases-current portion |
|
|
746 |
|
|
1,695 |
|
|
Current liabilities |
|
|
149,655 |
|
|
182,803 |
|
|
Obligations under capital leases |
|
|
— |
|
|
746 |
|
|
Other accrued liabilities |
|
|
85,804 |
|
|
75,266 |
|
|
Total liabilities |
|
|
235,459 |
|
|
258,815 |
|
|
Minority interest in equity of subsidiaries |
|
|
12,996 |
|
|
16,340 |
|
|
Shareholders’ equity |
|
|
770,223 |
|
|
578,350 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
1,018,678 |
|
$ |
853,505 |
|
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)
|
|
|
Year Ended May 31, |
|
||||
|
|
|
|
|
||||
|
|
|
2006 |
|
2005 |
|
||
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
125,524 |
|
$ |
92,896 |
|
|
Non-cash items |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
40,489 |
|
|
45,306 |
|
|
Minority interest in earnings |
|
|
8,474 |
|
|
7,739 |
|
|
Other, net |
|
|
29,425 |
|
|
36,329 |
|
|
Changes in working capital, which provided (used) cash Settlement processing |
|
|
31,198 |
|
|
58,550 |
|
|
Other, net |
|
|
(337 |
) |
|
(11,261 |
) |
|
Net cash provided by operating activities |
|
|
234,773 |
|
|
229,559 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(25,038 |
) |
|
(34,305 |
) |
|
Business acquisitions, net of cash acquired |
|
|
(4,917 |
) |
|
(30,773 |
) |
|
Net cash used in investing activities |
|
|
(29,955 |
) |
|
(65,078 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Net payments on line of credit |
|
|
(50,000 |
) |
|
(72,000 |
) |
|
Net payments on line of credit with CIBC |
|
|
(8,606 |
) |
|
(74,503 |
) |
|
Principal payments under capital leases and other notes |
|
|
(3,042 |
) |
|
(11,208 |
) |
|
Net stock issued to employees under stock plans and dividends |
|
|
17,586 |
|
|
15,020 |
|
|
Distributions to minority interests |
|
|
(10,212 |
) |
|
(9,662 |
) |
|
Net cash used in financing activities |
|
|
(54,274 |
) |
|
(152,353 |
) |
|
Effect of exchange rate changes on cash |
|
|
18,952 |
|
|
2,379 |
|
|
Increase in cash and cash equivalents |
|
|
169,496 |
|
|
14,507 |
|
|
Cash and cash equivalents, beginning of year |
|
|
48,979 |
|
|
34,472 |
|
|
Cash and cash equivalents, end of year |
|
$ |
218,475 |
|
$ |
48,979 |
|
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
Reconciliation to Exclude Restructuring and Other Expenses from Normalized Results
(In thousands, except per share data)
Three Months Ended May 31,
|
|
|
2006 |
|
Normalized |
|
2005 |
|
GAAP |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
238,768 |
|
$ |
207,665 |
|
$ |
— |
|
$ |
207,665 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of service |
|
|
89,062 |
|
|
90,104 |
|
|
— |
|
|
90,104 |
|
|
Sales, general and administrative |
|
|
97,305 |
|
|
74,345 |
|
|
— |
|
|
74,345 |
|
|
Restructuring and other |
|
|
— |
|
|
— |
|
|
3,726 |
|
|
3,726 |
|
|
|
|
|
186,367 |
|
|
164,449 |
|
|
3,726 |
|
|
168,175 |
|
|
Operating income |
|
|
52,401 |
|
|
43,216 |
|
|
(3,726 |
) |
|
39,490 |
|
|
Other income/(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income |
|
|
2,970 |
|
|
685 |
|
|
— |
|
|
685 |
|
|
Interest and other expense |
|
|
(2,127 |
) |
|
(1,932 |
) |
|
— |
|
|
(1,932 |
) |
|
|
|
|
843 |
|
|
(1,247 |
) |
|
— |
|
|
(1,247 |
) |
|
Income before income taxes |
|
|
53,244 |
|
|
41,969 |
|
|
(3,726 |
) |
|
38,243 |
|
|
Provision for income taxes |
|
|
(16,960 |
) |
|
(13,897 |
) |
|
1,358 |
|
|
(12,539 |
) |
|
Minority interest, net of tax |
|
|
(2,222 |
) |
|
(2,207 |
) |
|
— |
|
|
(2,207 |
) |
|
Net income |
|
$ |
34,062 |
|
$ |
25,865 |
|
$ |
(2,368 |
) |
$ |
23,497 |
|
|
Basic shares |
|
|
79,511 |
|
|
77,772 |
|
|
— |
|
|
77,772 |
|
|
Basic earnings per share |
|
$ |
0.43 |
|
$ |
0.33 |
|
$ |
(0.03 |
) |
$ |
0.30 |
|
|
Diluted shares |
|
|
82,912 |
|
|
80,612 |
|
|
— |
|
|
80,612 |
|
|
Diluted earnings per share |
|
$ |
0.41 |
|
$ |
0.32 |
|
$ |
(0.03 |
) |
$ |
0.29 |
|
|
|
|
|
(1) |
Primarily relates to severance and facilities due to redundant activities and facility closures, as well as the related income tax benefit using the company’s effective tax rate. |
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
Reconciliation to Exclude Restructuring and Other Expenses from Normalized Results
(In thousands, except per share data)
Year Ended May 31,
|
|
|
Normalized |
|
2006 |
|
GAAP |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
908,056 |
|
$ |
— |
|
$ |
908,056 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Cost of service |
|
|
358,020 |
|
|
— |
|
|
358,020 |
|
|
Sales, general and administrative |
|
|
347,070 |
|
|
— |
|
|
347,070 |
|
|
Restructuring and other |
|
|
— |
|
|
1,878 |
|
|
1,878 |
|
|
|
|
|
705,090 |
|
|
1,878 |
|
|
706,968 |
|
|
Operating income |
|
|
202,966 |
|
|
(1,878 |
) |
|
201,088 |
|
|
Other income/(expense) |
|
|
|
|
|
|
|
|
|
|
|
Interest and other income |
|
|
7,576 |
|
|
— |
|
|
7,576 |
|
|
Interest and other expense |
|
|
(7,144 |
) |
|
— |
|
|
(7,144 |
) |
|
|
|
|
432 |
|
|
— |
|
|
432 |
|
|
Income before income taxes |
|
|
203,398 |
|
|
(1,878 |
) |
|
201,520 |
|
|
Provision for income taxes |
|
|
(68,151 |
) |
|
629 |
|
|
(67,522 |
) |
|
Minority interest, net of tax |
|
|
(8,474 |
) |
|
— |
|
|
(8,474 |
) |
|
Net income |
|
$ |
126,773 |
|
$ |
(1,249 |
) |
$ |
125,524 |
|
|
Basic shares |
|
|
78,874 |
|
|
— |
|
|
78,874 |
|
|
Basic earnings per share |
|
$ |
1.61 |
|
$ |
(0.02 |
) |
$ |
1.59 |
|
|
Diluted shares |
|
|
82,149 |
|
|
— |
|
|
82,149 |
|
|
Diluted earnings per share |
|
$ |
1.54 |
|
$ |
(0.01 |
) |
$ |
1.53 |
|
|
|
|
Normalized |
|
2005 |
|
GAAP |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
784,331 |
|
$ |
— |
|
$ |
784,331 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Cost of service |
|
|
337,272 |
|
|
— |
|
|
337,272 |
|
|
Sales, general and administrative |
|
|
283,232 |
|
|
— |
|
|
283,232 |
|
|
Restructuring and other |
|
|
— |
|
|
3,726 |
|
|
3,726 |
|
|
|
|
|
620,504 |
|
|
3,726 |
|
|
624,230 |
|
|
Operating income |
|
|
163,827 |
|
|
(3,726 |
) |
|
160,101 |
|
|
Other income/(expense) |
|
|
|
|
|
|
|
|
|
|
|
Interest and other income |
|
|
2,194 |
|
|
— |
|
|
2,194 |
|
|
Interest and other expense |
|
|
(8,378 |
) |
|
— |
|
|
(8,378 |
) |
|
|
|
|
(6,184 |
) |
|
— |
|
|
(6,184 |
) |
|
Income before income taxes |
|
|
157,643 |
|
|
(3,726 |
) |
|
153,917 |
|
|
Provision for income taxes |
|
|
(54,709 |
) |
|
1,358 |
|
|
(53,351 |
) |
|
Minority interest, net of tax |
|
|
(7,670 |
) |
|
— |
|
|
(7,670 |
) |
|
Net income |
|
$ |
95,264 |
|
$ |
(2,368 |
) |
$ |
92,896 |
|
|
Basic shares |
|
|
77,116 |
|
|
— |
|
|
77,116 |
|
|
Basic earnings per share |
|
$ |
1.24 |
|
$ |
(0.04 |
) |
$ |
1.20 |
|
|
Diluted shares |
|
|
79,760 |
|
|
— |
|
|
79,760 |
|
|
Diluted earnings per share |
|
$ |
1.19 |
|
$ |
(0.03 |
) |
$ |
1.16 |
|
|
|
|
|
(1) |
Primarily relates to severance and facilities due to redundant activities and facility closures, as well as the related income tax benefit using the company’s effective tax rate. |
SEGMENT INFORMATION
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)
|
|
|
Fiscal |
|
Fiscal |
|
||
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
Domestic Direct |
|
$ |
346,974 |
|
$ |
410,047 |
|
|
Canada |
|
|
155,468 |
|
|
175,190 |
|
|
Central and Eastern Europe |
|
|
10,216 |
|
|
40,598 |
|
|
Domestic Indirect and Other(1) |
|
|
74,159 |
|
|
62,033 |
|
|
Merchant Services(1) |
|
|
586,817 |
|
|
687,868 |
|
|
Domestic |
|
|
42,503 |
|
|
91,448 |
|
|
Europe |
|
|
— |
|
|
5,015 |
|
|
Money Transfer(1) |
|
|
42,503 |
|
|
96,463 |
|
|
Total Revenue |
|
$ |
629,320 |
|
$ |
784,331 |
|
|
Operating Income |
|
|
|
|
|
|
|
|
Merchant Services |
|
$ |
150,772 |
|
$ |
183,970 |
|
|
Money Transfer |
|
|
3,741 |
|
|
16,604 |
|
|
Corporate |
|
|
(31,964 |
) |
|
(36,747 |
) |
|
Restructuring and Other |
|
|
(9,648 |
) |
|
(3,726 |
) |
|
Operating Income |
|
$ |
112,901 |
|
$ |
160,101 |
|
|
Operating Margin |
|
|
|
|
|
|
|
|
Merchant Services |
|
|
26 |
% |
|
27 |
% |
|
Money Transfer |
|
|
9 |
% |
|
17 |
% |
|
|
|
|
(1) |
Prior to fiscal 2006, the company’s legacy funds transfer revenue was historically reported in “Money Transfer”. Beginning in the fourth quarter of fiscal 2006, such revenues were reclassified to “Merchant Services” under the “Domestic Indirect and Other” category. All prior period amounts were reclassified for this change. With this change, the company’s “Money Transfer” segment only includes its consumer money transfer service offerings. |
SEGMENT INFORMATION
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)
|
|
|
Fiscal 2006 |
|
|||||||||||||
|
|
|
|
|
|||||||||||||
|
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Total |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Direct |
|
$ |
115,265 |
|
$ |
114,455 |
|
$ |
120,935 |
|
$ |
130,618 |
|
$ |
481,273 |
|
|
Canada |
|
|
54,278 |
|
|
51,624 |
|
|
50,627 |
|
|
51,597 |
|
|
208,126 |
|
|
Central and Eastern Europe |
|
|
12,727 |
|
|
11,415 |
|
|
12,162 |
|
|
10,810 |
|
|
47,114 |
|
|
Domestic Indirect and Other(1) |
|
|
14,168 |
|
|
13,220 |
|
|
12,386 |
|
|
12,213 |
|
|
51,987 |
|
|
Merchant Services(1) |
|
|
196,438 |
|
|
190,714 |
|
|
196,110 |
|
|
205,238 |
|
|
788,500 |
|
|
Domestic |
|
|
25,701 |
|
|
26,500 |
|
|
26,505 |
|
|
30,361 |
|
|
109,067 |
|
|
Europe |
|
|
2,317 |
|
|
2,459 |
|
|
2,544 |
|
|
3,169 |
|
|
10,489 |
|
|
Money Transfer(1) |
|
|
28,018 |
|
|
28,959 |
|
|
29,049 |
|
|
33,530 |
|
|
119,556 |
|
|
Total Revenue |
|
$ |
224,456 |
|
$ |
219,673 |
|
$ |
225,159 |
|
$ |
238,768 |
|
$ |
908,056 |
|
|
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchant Services |
|
$ |
56,248 |
|
$ |
56,270 |
|
$ |
55,063 |
|
$ |
56,640 |
|
$ |
224,221 |
|
|
Money Transfer |
|
|
4,579 |
|
|
4,224 |
|
|
3,336 |
|
|
6,602 |
|
|
18,741 |
|
|
Corporate |
|
|
(9,430 |
) |
|
(9,461 |
) |
|
(10,264 |
) |
|
(10,841 |
) |
|
(39,996 |
) |
|
Restructuring and Other |
|
|
(873 |
) |
|
(1,005 |
) |
|
— |
|
|
— |
|
|
(1,878 |
) |
|
Operating Income |
|
$ |
50,524 |
|
$ |
50,028 |
|
$ |
48,135 |
|
$ |
52,401 |
|
$ |
201,088 |
|
|
Operating Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchant Services |
|
|
29 |
% |
|
30 |
% |
|
28 |
% |
|
28 |
% |
|
28 |
% |
|
Money Transfer |
|
|
16 |
% |
|
15 |
% |
|
11 |
% |
|
20 |
% |
|
16 |
% |
|
|
|
|
(1) |
Prior to fiscal 2006, the company’s legacy funds transfer revenue was historically reported in “Money Transfer”. Beginning in the fourth quarter of fiscal 2006, such revenues were reclassified to “Merchant Services” under the “Domestic Indirect and Other” category. All prior period amounts were reclassified for this change. With this change, the company’s “Money Transfer” segment only includes its consumer money transfer service offerings. |
SEGMENT INFORMATION
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)
|
|
|
% Change |
|
||||
|
|
|
|
|
||||
|
|
|
FY 05 |
|
FY 06 |
|
||
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
Domestic Direct |
|
|
18 |
% |
|
17 |
% |
|
Canada |
|
|
13 |
% |
|
19 |
% |
|
Central and Eastern Europe |
|
|
297 |
% |
|
16 |
% |
|
Domestic Indirect and Other(1) |
|
|
(16 |
)% |
|
(16 |
)% |
|
Merchant Services(1) |
|
|
17 |
% |
|
15 |
% |
|
Domestic |
|
|
115 |
% |
|
19 |
% |
|
Europe |
|
|
— |
|
|
109 |
% |
|
Money Transfer(1) |
|
|
127 |
% |
|
24 |
% |
|
Total Revenue |
|
|
25 |
% |
|
16 |
% |
|
Operating Income |
|
|
|
|
|
|
|
|
Merchant Services |
|
|
22 |
% |
|
22 |
% |
|
Money Transfer |
|
|
344 |
% |
|
13 |
% |
|
Corporate |
|
|
15 |
% |
|
9 |
% |
|
Restructuring and Other |
|
|
(61 |
)% |
|
(50 |
)% |
|
Operating Income |
|
|
42 |
% |
|
26 |
% |
|
Operating Margin |
|
|
|
|
|
|
|
|
Merchant Services |
|
|
|
|
|
|
|
|
Money Transfer |
|
|
|
|
|
|
|
|
|
|
|
(1) |
Prior to fiscal 2006, the company’s legacy funds transfer revenue was historically reported in “Money Transfer”. Beginning in the fourth quarter of fiscal 2006, such revenues were reclassified to “Merchant Services” under the “Domestic Indirect and Other” category. All prior period amounts were reclassified for this change. With this change, the company’s “Money Transfer” segment only includes its consumer money transfer service offerings. |
SOURCE Global Payments Inc.
-0- 07/28/2006
/CONTACT: Jane M. Elliott (formerly Forbes) of Global Payments Inc., +1-770-829-8234, or fax, +1-770-829-8267, or investor.relations@globalpay.com/
/Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20010221/ATW031LOGO
AP Archive:
http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com/
/Web site: http://www.globalpaymentsinc.com/
(GPN)