Global Payments Reports Third Quarter Earnings

ATLANTA - Global Payments Inc. (NYSE: GPN) today announced results for its fiscal third quarter ended February 28, 2009. For the third quarter, revenues grew 26% to US$392.7 million compared to US$310.6 million in the prior year. Normalized diluted earnings per share grew 2% to US$0.45 compared to US$0.44 in the prior year quarter.

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These results include the unfavorable impact of foreign currency exchange rates during the quarter, and as such, the company included Schedule 9 to provide revenue and diluted earnings per share growth on a constant currency basis for both the quarter and the outlook for fiscal 2009. On a constant currency basis, revenues grew 38% and normalized diluted earnings per share grew 25% over the prior year quarter.

On a GAAP basis we reported revenue of US$392.7 million and a loss per share of (US$1.34). These results include a non-cash, pretax impairment charge relating to our money transfer business of US$147.7 million which was recorded as a result of the company’s annual FAS 142 Goodwill and Other Intangible Assets review. The fair value of the money transfer business has significantly declined due to ongoing challenging macroeconomic and immigrant labor trends.

Comments and Outlook

Chairman and CEO, Paul R. Garcia, stated, “We achieved solid third quarter financial performance, in spite of continuing macroeconomic headwinds and unfavorable foreign currency trends. Our normalized results for the quarter were driven by the impact of our June 30, 2008 U.K. acquisition and strong results in our North America segment. North America continues to benefit from successful pricing initiatives in Canada and solid 15% transaction growth in the U.S.”

“We are maintaining our 2009 annual revenue guidance of US$1,550 million to US$1,580 million, or 22% to 24% growth over fiscal 2008. In addition, our constant currency expectations for revenue growth of 29% to 31% remain unchanged from last quarter. We are also reaffirming fiscal 2009 normalized diluted EPS guidance of US$2.14 to US$2.21, reflecting 8% to 12% growth over fiscal 2008 (see Schedule 6 for details). Our constant currency outlook for normalized diluted earnings per share growth of 21% to 25% for fiscal 2009 also remains unchanged, in spite of a challenging economic environment,” said Garcia.

Conference Call

Global Payments will hold a conference call today, April 2, 2009 at 5:00 p.m. EDT to discuss financial results and business highlights. Callers may access the conference call via the company’s Web site at www.globalpaymentsinc.com by clicking the “Webcast” button; or callers may dial +1-888-740-6140 and callers outside U.S. and Canada may dial +1-913-312-1269. The pass code is “GPN.” A replay of the call may be accessed through the Global Payments’ Web site through April 16, 2009.

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 region. 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 United States and Europe to destinations in Latin America, Morocco, and the Philippines. For more information about the company and its services, visit www.globalpaymentsinc.com.

This announcement and comments made by Global Payments’ management during the conference call may contain certain forward-looking statements within the meaning of the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including revenue and earnings estimates and management’s expectations regarding future events and developments, are forward looking statements and are subject to significant risks and uncertainties. Important factors that may cause actual events or results to differ materially from those anticipated by such forward-looking statements include the following: foreign currency risks which become increasingly relevant as we expand internationally, the effect of current U.S. economic conditions, including a decline in the value of the U.S. dollar, the continued erosion of the value of our money transfer business 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.

Contact: Jane M. Elliott +1-770-829-8234 Voice +1-770-829-8267 Fax investor.relations@globalpay.com

(All currency in US Dollars unless otherwise noted) SCHEDULE 1 UNAUDITED CONSOLIDATED STATEMENTS OF INCOME GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands, except per share data) ————————————————————————- Three Months Ended February 28/29, ——————————— 2009 2008 —- —- Revenues $392,663 $310,641 ————————————————————————- Operating expenses: Cost of service 146,760 117,661 Sales, general and administrative 180,117 133,069 Impairment 147,664 - ——- ——- 474,541 250,730 ——- ——- Operating (loss) income (81,878) 59,911 ————————————————————————- Other income (expense): Interest and other income 1,200 4,767 Interest and other expense (2,222) (2,198) —— —— (1,022) 2,569 —— —– (Loss) income before income taxes and minority interest (82,900) 62,480 Provision for income taxes (15,818) (19,265) Minority interest, net of tax provision (benefit) of $1,703 and ($506), respectively (8,058) (3,160) ————————————————————————- Net (loss) income $(106,776) $40,055 ——— ——- (Loss) earnings per share: Basic $(1.34) $0.51 —— —– Diluted $(1.34) $0.50 —— —– Weighted average shares outstanding: Basic 79,835 79,219 Diluted 79,835 80,650 SCHEDULE 2 SEGMENT INFORMATION GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) ————————————————————————- Three Months Ended February 28/29, ——————— 2009 2008 —- —- Revenues: ——— United States $206,237 $182,038 Canada 68,202 61,256 —— —— North America Merchant Services 274,439 243,294 Europe 62,109 14,455 Asia-Pacific 22,980 18,977 —— —— International Merchant Services 85,089 33,432 United States 26,605 28,007 Europe 6,530 5,908 —– —– Money Transfer 33,135 33,915 ——– ——– Total Revenues $392,663 $310,641 ======== ======== Operating Income: —————– North America Merchant Services(1) $57,909 $67,792 International Merchant Services 20,771 4,326 Money Transfer 3,403 1,156 Corporate (16,297) (13,363) Impairment (147,664) - ——– ——– Operating (Loss) Income $(81,878) $59,911 ======== ======= (1) Includes the favorable impact of a non-recurring, non-cash operating tax item of $7.0 million in the three months ended February 29, 2008.

SCHEDULE 3 UNAUDITED CONSOLIDATED STATEMENTS OF INCOME GLOBAL PAYMENTS INC. AND SUBSIDIARIES Reconciliations to Exclude Impairment Charges and an Operating Tax Item from Normalized Results (In thousands, except per share data) ————————————————————————- Three Months Ended February 28/29, 2009 2008 ——————————- ———————– Operating Tax Normalized Impairment(1) GAAP Normalized Item(2) GAAP ———- ———— —- ———- —— —- Revenues $392,663 $- $392,663 $310,641 $- $310,641 ————————————————————————- Operating expenses: Cost of service 146,760 - 146,760 117,661 - 117,661 Sales, General and administrative 180,117 - 180,117 140,117 (7,048) 133,069 Impairment - 147,664 147,664 - - - — ——- ——- — — — 326,877 147,664 474,541 257,778 (7,048) 250,730 ——- ——- ——- ——- —— ——- Operating income (loss) 65,786 (147,664) (81,878) 52,863 7,048 59,911 ————————————————————————- Other income (expense): Interest and other income 1,200 - 1,200 4,767 - 4,767 Interest and other expense (2,222) - (2,222) (2,198) - (2,198) —— — —— —— — —— (1,022) - (1,022) 2,569 - 2,569 —— — —— —– — —– Income before income taxes and minority interest 64,764 (147,664) (82,900) 55,432 7,048 62,480 Provision for income taxes (19,906) 4,088 (15,818) (16,936)(2,329) (19,265) Minority interest, net of tax provision (benefit) of $1,703 and ($506), respectively (8,058) - (8,058) (3,160) - (3,160) ————————————————————————- Net income (loss) $36,800 $(143,576) $(106,776) $35,336 $4,719 $40,055 ——- ——— ——— ——- —— ——- Diluted shares 80,931 (1,096) 79,835 80,650 - 80,650 Diluted earnings (loss) per share $0.45 $(1.79) $(1.34) $0.44 $0.06 $0.50 —– —— —— —– —– —– Effective tax rate 33.1% (15.2%) 33.0% 33.0% (1) Impairment charges consist of goodwill and other intangible asset impairments in the Money Transfer segment. Also reflects the related income tax benefit and share dilution. (2) Relates to the favorable impact of a non-recurring, non-cash operating tax item included in sales, general and administrative expenses. Also reflects the related income tax benefit. SCHEDULE 4 UNAUDITED CONSOLIDATED STATEMENTS OF INCOME GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands, except per share data) ————————————————————————- Nine Months Ended February 28/29, ——————————– 2009 2008 —- —- Revenues $1,199,483 $930,397 ————————————————————————- Operating expenses: Cost of service 445,248 350,483 Sales, general and administrative 512,587 394,023 Impairment and restructuring 147,664 1,317 ——- —– 1,105,499 745,823 ——— ——- Operating income 93,984 184,574 ————————————————————————- Other income (expense): Interest and other income 6,573 14,643 Interest and other expense (6,642) (5,339) —— —— (69) 9,304 — —– Income before income taxes and minority interest 93,915 193,878 Provision for income taxes (66,539) (64,071) Minority interest, net of tax provision (benefit) of $1,028 and ($70), respectively (27,718) (7,864) ————————————————————————- Net (loss) income $(342) $121,943 —– ——– (Loss) Earnings per share: Basic $- $1.53 — —– Diluted $- $1.51 — —– Weighted average shares outstanding: Basic 79,676 79,584 Diluted 79,676 81,023

SCHEDULE 5 SEGMENT INFORMATION GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) ————————————————————————- Nine Months Ended February 28/29, ——————————– 2009 2008 —- —- Revenues: ——— United States $599,082 $537,603 Canada 232,779 193,705 ——- ——- North America Merchant Services 831,861 731,308 Europe 194,881 42,365 Asia-Pacific 67,630 53,467 —— —— International Merchant Services 262,511 95,832 United States 84,596 86,003 Europe 20,515 17,254 —— —— Money Transfer 105,111 103,257 ———- ——– Total Revenues $1,199,483 $930,397 ========== ======== Operating Income: —————– North America Merchant Services(1) $213,409 $205,007 International Merchant Services 62,136 14,309 Money Transfer 12,764 6,117 Corporate (46,661) (39,542) Impairment and Restructuring (147,664) (1,317) ——– —— Operating Income $93,984 $184,574 ======= ======== (1) Includes the favorable impact of a non-recurring, non-cash operating tax item of $7.0 million in the nine months ended February 29, 2008. SCHEDULE 6 UNAUDITED CONSOLIDATED STATEMENTS OF INCOME GLOBAL PAYMENTS INC. AND SUBSIDIARIES Reconciliations to Exclude Impairment and Restructuring Charges and an Operating Tax Item from Normalized Results (In thousands, except per share data) ————————————————————————- Nine Months Ended February 28/29, 2009 2008 ——————————- ————————— Restructuring and Operating Tax Normalized Impairment(1) GAAP Normalized Item(2) GAAP ———- ———— —- ———- —— —- Revenues $1,199,483 $- $1,199,483 $930,397 $- $930,397 ————————————————————————- Operating expenses: Cost of service 445,248 - 445,248 350,483 - 350,483 Sales, general and administrative 512,587 - 512,587 401,071 (7,048 )394,023 Impairment and restructuring - 147,664 147,664 - 1,317 1,317 — ——- ——- — —– —– 957,835 147,664 1,105,499 751,554 (5,731) 745,823 ——- ——- ——— ——- —— ——- Operating income 241,648 (147,664) 93,984 178,843 5,731 184,574 ————————————————————————- Other income (expense): Interest and other income 6,573 - 6,573 14,643 - 14,643 Interest and other expense (6,642) - (6,642) (5,339) - (5,339) —— — —— —— — —— (69) - (69) 9,304 - 9,304 — — — —– — —– Income before income taxes and minority interest 241,579 (147,664) 93,915 188,147 5,731 193,878 Provision for income taxes (70,627) 4,088 (66,539) (62,191) (1,880) (64,071) Minority interest, net of tax provision (benefit)of $1,028 and ($70), respectively (27,718) - (27,718) (7,864) - (7,864) ————————————————————————- Net income (loss) $143,234 $(143,576) $(342)$118,092 $3,851 $121,943 ——– ——— —– ——– —— ——– Diluted shares 81,055 (1,379) 79,676 81,023 - 81,023 Diluted earnings (loss) per share $1.77 $(1.77) $- $1.46 $0.05 $1.51 —– —— — —– —– —– Effective tax rate 32.7% 100.5% 34.5% 34.5% (1) Impairment charges consist of goodwill and other intangible asset impairments in the Money Transfer segment. Also reflects the related income tax benefit and share dilution. (2) Relates to the favorable impact of a non-recurring, non-cash operating tax item included in sales, general and administrative expenses. Restructuring charges consist of employee termination benefits relating to a facility closure. Also reflects the related income tax benefit. ————————————————————————- Year Ended May 31, 2008 —- Normalized diluted earnings per share $1.98 Restructuring and other (3) 0.03 —- GAAP diluted earnings per share $2.01 —– (3) Full year fiscal 2008 diluted earnings per share was $2.01 on a GAAP basis, which includes restructuring and other charges, a favorable operating tax item, and an unfavorable foreign currency item. For more information, please see our fiscal 2008 earnings press releases, which were included as exhibits to our respective Form 8-Ks furnished to the SEC.

SCHEDULE 7 CONSOLIDATED BALANCE SHEETS GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) ————————————————————————- February 28, May 31, 2009 2008 —- —- (Unaudited) Assets —— Cash and cash equivalents $387,593 $456,060 Accounts receivable, net 105,242 100,179 Claims receivable, net 554 1,354 Settlement processing assets 3,234 24,280 Inventory, net 6,370 3,821 Deferred income taxes 4,287 4,119 Prepaid expenses and other current assets 23,132 27,597 —— —— Current assets 530,412 617,410 Property and equipment, net 141,412 141,415 Goodwill 535,988 497,136 Other intangible assets, net 225,224 175,636 Other assets 11,560 14,310 —— —— Total assets $1,444,596 $1,445,907 ———- ———- Liabilities and Shareholders’ Equity ———————————— Lines of credit $4,110 $1,527 Current portion of term loan 25,000 - Payables to money transfer beneficiaries 8,830 9,276 Accounts payable and accrued liabilities 143,011 138,243 Settlement processing obligations 70,020 56,731 Income taxes payable 13,736 11,975 —— —— Current liabilities 264,707 217,752 Term loan 165,000 - Deferred income taxes 54,793 75,001 Other long-term liabilities 11,600 11,612 —— —— Total liabilities 496,100 304,365 ——- ——- Commitments and contingencies Minority interest in equity of subsidiaries 33,430 14,724 Preferred stock - - Common stock - - Paid-in capital 402,077 380,741 Retained earnings 616,725 621,875 Accumulated other comprehensive (loss) income (103,736) 124,202 ——– ——- Total shareholders’ equity 915,066 1,126,818 ——- ——— Total liabilities and shareholders’ equity $1,444,596 $1,445,907 ———- ———- SCHEDULE 8 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) ————————————————————————- Nine Months Ended February 28/29, ——————————– 2009 2008 —- —- Cash flows from operating activities: Net (loss) income $(342) $121,943 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization of property and equipment 27,175 21,258 Amortization of acquired intangibles 23,222 10,962 Share-based compensation expense 10,954 9,853 Provision for operating losses and bad debts 20,256 21,884 Minority interest in earnings 28,746 7,794 Deferred income taxes (3,419) (3,757) Impairment of goodwill and identified intangible assets 147,664 - Other, net (87) (5,763) Changes in operating assets and liabilities, net of the effects of acquisitions: Accounts receivable (8,856) (6,976) Claims receivable (13,879) (18,123) Settlement processing assets and obligations, net 28,818 26,297 Inventory (2,314) (1,964) Prepaid expenses and other assets 6,832 (7,961) Payables to money transfer beneficiaries (446) 1,005 Accounts payable and accrued liabilities 2,692 (3,276) Income taxes payable 1,761 10,734 —– —— Net cash provided by operating activities 268,777 183,910 ——- ——- Cash flows from investing activities: Business and intangible asset acquisitions (454,279) (12,051) Capital expenditures (25,458) (31,926) Proceeds from sale of investment and contractual rights 6,796 - —– — Net cash used in investing activities (472,941) (43,977) ——– ——- Cash flows from financing activities: Net borrowings on lines of credit 2,583 1,126 Proceeds from term loan 200,000 - Principal payments under term loan (10,000) - Proceeds from stock issued under share-based compensation plans 7,961 15,229 Tax benefit from share-based compensation plans 2,421 7,384 Repurchase of common stock - (87,020) Dividends paid (4,808) (4,784) Contribution from minority interest holder 358 - Distributions to minority interests (23,258) (7,085) ——- —— Net cash provided by (used in) financing activities 175,257 (75,150) ——- ——- Effect of exchange rate changes on cash (39,560) 14,812 ——- —— (Decrease) increase in cash and cash equivalents (68,467) 79,595 Cash and cash equivalents, beginning of period 456,060 308,872 ——- ——- Cash and cash equivalents, end of period $387,593 $388,467 ——– ——–

SCHEDULE 9 CONSTANT CURRENCY OUTLOOK GLOBAL PAYMENTS INC. AND SUBSIDIARIES (in millions, except for per share data) Q1 FY09 % change Q2 FY09 % change Actual Q1 FY08 Actual Q2 FY08 —— ——- —— ——- Fiscal 2009 Revenue ——————- Constant Currency(1) $397 28% $424 37% Foreign currency impact(2) 9 3% (23) (7%) - - — — Total Revenues $406 31% $401 30% ==== == ==== == Fiscal 2009 Diluted Earnings Per Share ————————————– Constant Currency(1) $0.68 27% $0.67 39% Foreign currency impact(2) 0.03 5% (0.07) (14%) —- - —– — Normalized $0.71 32% $0.60 25% Impairment and Restructuring(3) - 2% - - — - — — GAAP $0.71 34% $0.60 25% ===== == ===== == (in millions, except for per share data) Q3 FY09 % change Fiscal 2009 % change Actual Q3 FY08 Outlook FY08 —— ——- ——- —- Fiscal 2009 Revenue ——————- Constant Currency(1) $428 38% $1,641 to $1,671 29% to 31% Foreign currency impact(2) (35) (11%) (91) (7%) — — — — Total Revenues $393 26% $1,550 to $1,580 22% to 24% ==== == ================ ========= Fiscal 2009 Diluted Earnings Per Share ————————————– Constant Currency(1) $0.55 25% $2.40 to $2.47 21% to 25% Foreign currency impact(2) (0.10) (23%) (0.26) (13%) —– — —– — Normalized $0.45 2% $2.14 to $2.21 8% to 12% Impairment and Restructuring(3) (1.79) - (1.79) (91%) —– — —– — GAAP $(1.34) - $0.35 to $0.42 (83%) to (79%) ====== === ============== ============ (1) Reflects current period results excluding impairment charges on a pro forma basis as if foreign currency rates did not change from the comparable prior year period (2) Reflects the impact of actual and forecasted changes in foreign currency rates from the comparable prior year period. (3) For more information, please see Schedule 6 and our earnings press releases for each of these periods, which were included as exhibits to our respective Form 8-Ks furnished to the SEC.

Source: Global Payments Inc.

Jane M. Elliott, +1-770-829-8234 Voice, or +1-770-829-8267 Fax, investor.relations at globalpay.com, of Global Payments Inc.; Photo: https://www.newscom.com/cgi-bin/prnh/20010221/ATW031LOGO