Asia PR News

ATLANTA, GA., Sept. 27 /PRNewswire-AsiaNet/ –

Global Payments Inc. (NYSE: GPN) today announced results for its first
quarter ended August 31, 2007. For the first quarter, revenue grew 19 percent
to $311.0 million compared to $260.3 million in the prior year. Excluding the
impact of current period restructuring charges, diluted earnings per share grew
6 percent to $0.54 compared to $0.51 in the prior year quarter.

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In accordance with GAAP, the current quarter includes restructuring charges
(see attached reconciliation schedule) relating to an operating center
consolidation announced in March 2007. These charges are reflected in our GAAP
diluted earnings per share amounts. For the three months ended August 31, 2007,
GAAP diluted earnings per share was $0.53 compared to $0.51 in the prior year
period.

During the current quarter, Global Payments completed $67.9 million in open
market repurchases of 1.8 million shares at an average price of $37.27 per
share, including commissions paid. As of August 31, 2007, the company had $32.1
million remaining under its current share repurchase authorization.

Comments and Outlook
Chairman, President and CEO, Paul R. Garcia, stated, "We are pleased with
our fiscal 2008 first quarter results, which were driven by growth in our
merchant services segment. Our revenue growth was primarily driven by continued
organic expansion in our domestic ISO channel, as well as the favorable impact
from our July 2006 addition of our Asia-Pacific joint venture with HSBC. In
addition, our Canadian merchant services channel benefited from a favorable
Canadian currency exchange rate. Lastly, our money transfer segment met our
expectations for the quarter, and our corporate expenses declined compared to
the prior year due to lower equity compensation costs."

Comments and Outlook
"Based on these results and trends, we are providing annual fiscal 2008
revenue guidance of $1,195 million to $1,247 million. This revenue guidance
reflects an expected 13 percent to 17 percent growth versus $1,061.5 million in
fiscal 2007. In addition, we are providing annual fiscal 2008 diluted earnings
per share guidance of $1.87 to $1.96, or 6 percent to 11 percent growth versus
$1.77 in fiscal 2007.(1) This includes the impact of stock option expenses as
a result of our June 1, 2006 adoption of FAS 123R. Our guidance excludes the
impact of future significant acquisitions, and these earnings per share ranges
exclude the impact of potential restructuring and other charges," said Garcia.

Conference Call
Global Payments will hold a conference call today, September 27, 2007 at
5:00 p.m. ET to discuss financial results and business highlights. The
conference call may be accessed by calling 1-877-546-1566 (U.S.) or
1-312-470-7270 (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 October 11, 2007.

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 2007 diluted earnings per share was $1.75 on a GAAP basis,
which includes restructuring and other charges equivalent to $0.02
in diluted earnings per share.

This announcement and comments made by Global Payments’ management during
the conference call 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. Among the important factors that may cause actual
events or results to differ materially from those anticipated by such
forward-looking statements include the following: continued certification by
credit card associations, foreign currency risks, competition and pricing,
product demand, market and customer acceptance, development difficulties, the
effect of economic conditions and consumer spending, security breaches or
system failures, costs of capital, changes in immigration patterns, changes in
state, federal or foreign laws and regulations affecting the electronic money
transfer industry, increases in credit card association fees, utility or system
interruptions, 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.

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

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands, except per share data)
Three Months Ended August 31,
2007 2006

Revenues $310,980 $260,308

Operating expenses:
Cost of service 116,309 98,190
Sales, general and administrative 127,436 98,591
Restructuring 1,003 -
244,748 196,781

Operating income 66,232 63,527

Other income (expense):
Interest and other income 5,137 3,596
Interest and other expense (1,873) (2,162)
3,264 1,434

Income before income taxes and minority
interest 69,496 64,961
Provision for income taxes (23,783) (20,909)
Minority interest, net of tax (2,138) (2,543)
Net income $43,575 $41,509

Earnings per share:
Basic $0.54 $0.52
Diluted $0.53 $0.51

Weighted average shares outstanding:
Basic 80,501 79,734
Diluted 81,907 81,576

CONSOLIDATED CONDENSED BALANCE SHEETS
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)
August 31, May 31,
2007 2007
(Unaudited)
Assets
Cash and cash equivalents $270,544 $308,872
Accounts receivable, net 88,336 76,168
Claims receivable, net 3,341 2,187
Settlement processing assets 26,510 32,853
Other current assets 35,366 24,349
Current assets 424,097 444,429

Property and equipment, net 122,588 118,495
Goodwill 454,459 451,244
Other intangible assets, net 173,213 175,620
Other assets 11,021 10,841
Total assets $1,185,378 $1,200,629

Liabilities and Shareholders’ Equity
Lines of credit $133 $-
Settlement processing obligations 14,572 20,617
Payable to money transfer beneficiaries 7,944 6,589
Accounts payable and other accrued
liabilities 119,421 115,671
Current liabilities 142,070 142,877

Other long-term liabilities 85,079 85,043
Total liabilities 227,149 227,920

Minority interest in equity of subsidiaries 14,612 14,933
Shareholders’ equity 943,617 957,776
Total liabilities and
shareholders’ equity $1,185,378 $1,200,629

UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
GLOBAL PAYMENTS INC. AND SUBSIDIARIES

(In thousands)
Three Months Ended August 31,
2007 2006

Cash flows from operating activities:
Net income $43,575 $41,509
Non-cash items
Depreciation and amortization 10,229 9,805
Minority interest in earnings 2,050 2,651
Other, net 7,964 9,554
Changes in working capital, which
used cash
Settlement processing assets and
obligations, net (569) (7,572)
Other, net (25,110) (33,587)
Net cash provided by operating
activities 38,139 22,360

Cash flows from investing activities:
Capital expenditures (9,605) (6,929)
Business acquisitions (2,625) (67,195)
Net cash used in investing activities (12,230) (74,124)

Cash flows from financing activities:
Net borrowings on lines of credit 133 49
Principal payments under capital leases - (349)
Repurchase of common stock (67,873) -
Net proceeds under share-based
compensation plans and dividends 3,530 5,585
Distributions to minority interests (2,372) (2,530)
Net cash (used in) provided by
financing activities (66,582) 2,755

Effect of exchange rate changes on cash 2,345 (888)

Decrease in cash and cash equivalents (38,328) (49,897)
Cash and cash equivalents, beginning
of period 308,872 218,475
Cash and cash equivalents, end of period $270,544 $168,578

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
GLOBAL PAYMENTS INC. AND SUBSIDIARIES

Reconciliation to Exclude Restructuring Charges from Normalized Results

(In thousands, except per share data)

Three Months Ended August 31,
2007 2006
Normal- Restructu- GAAP GAAP
ized ring(1)

Revenues $310,980 $- $310,980 $260,308

Operating expenses:
Cost of service 116,309 - 116,309 98,190
Sales, general and administrative 127,436 - 127,436 98,591
Restructuring - 1,003 1,003 -
243,745 1,003 244,748 196,781

Operating income 67,235 (1,003) 66,232 63,527

Other income/(expense):
Interest and other income 5,137 - 5,137 3,596
Interest and other expense (1,873) - (1,873) (2,162)
3,264 - 3,264 1,434

Income before income taxes 70,499 (1,003) 69,496 64,961
Provision for income taxes (24,126) 343 (23,783) (20,909)
Minority interest, net of tax (2,138) - (2,138) (2,543)
Net income $44,235 $(660) $43,575 $41,509

Diluted shares 81,907 - 81,907 81,576
Diluted earnings per share $0.54 $(0.01) $0.53 $0.51

(1) Restructuring charges consist of employee termination benefits
relating to a facility closure. Also reflects the related income
tax benefit using the company’s effective tax rate, which is defined
as the provision for income taxes divided by income before income
taxes and minority interest.

SEGMENT INFORMATION
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)
Three Months Ended August 31,
2007 2006

Revenues
Domestic direct $167,868 $135,442
Canada 66,677 60,918
Asia-Pacific 16,064 5,486
Central and Eastern Europe 13,775 13,275
Domestic indirect and other 11,582 12,195
Merchant services 275,966 227,316

Domestic 29,581 29,302
Europe 5,433 3,690
Money transfer 35,014 32,992
Total revenues $310,980 $260,308

Operating income
Merchant services $76,106 $72,961
Money transfer 3,722 4,679
Corporate (12,593) (14,113)
Restructuring (1,003) -
Operating income $66,232 $63,527

SOURCE: Global Payments Inc.

CONTACT: Jane M. Elliott of Global Payments Inc.,
+1-770-829-8234, or
fax, +1-770-829-8267,
investor.relations@globalpay.com

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