Global Payments Inc. (NYSE: GPN) today announced results for its fourth quarter and fiscal year ended May 31, 2008.
For the fourth quarter, revenues grew 23 percent to US$343.8 million compared to US$280.1 million in the prior year. Excluding the unfavorable impact of a non-recurring, non-cash foreign currency item and prior period restructuring and other charges, diluted earnings per share grew 21 percent to US$0.52 compared to US$0.43 in the prior year quarter.
For the fiscal year ended May 31, 2008, revenues grew 20 percent to US$1,274.2 million compared to US$1,061.5 million in the prior year. Excluding the favorable impact of a non-recurring, non-cash operating tax item, the unfavorable impact of a non-recurring, non-cash foreign currency item, and prior period restructuring and other charges, diluted earnings per share grew 12 percent to US$1.98 from US$1.77 in the prior year.
In accordance with GAAP, the current and prior fiscal year periods include restructuring and other charges, and the current fiscal year period includes the operating tax item and foreign currency item described above. These items are reflected in our GAAP diluted earnings per share amounts (see attached reconciliation schedule). For the three months and year ended May 31, 2008, GAAP diluted earnings per share were US$0.50 and US$2.01, respectively, compared to US$0.40 and US$1.75, respectively, in the prior year comparable periods.
Comments and Outlook
Chairman, President and CEO, Paul R. Garcia, stated, "Our merchant services segment delivered solid financial results for the fourth quarter and fiscal year 2008. We continue to successfully pursue our ongoing strategy of expanding our existing sales channels, increasing our international presence, and investing in our technology and people. We are also delighted to be joining forces once more with HSBC Bank plc in a merchant services joint venture in the U.K. Lastly, our money transfer segment rebounded to strong growth in the fourth quarter, as expected."
"For our fiscal 2009, we are providing annual revenue guidance of US$1,620 million to US$1,675 million. This revenue guidance reflects an expected 27 percent to 31 percent growth versus US$1,274.2 million in fiscal 2008. In addition, we are providing annual diluted earnings per share guidance of US$2.20 to US$2.30, or 11 percent to 16 percent growth versus US$1.98 in fiscal 2008*. Our fiscal 2009 guidance excludes the impact of future significant acquisitions and restructuring and other charges," said Garcia.
* Fiscal 2008 diluted earnings per share was US$2.01 on a GAAP basis, which includes restructuring and other charges, a favorable operating tax item, and an unfavorable foreign currency item.
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