Global Payments (NYSE: GPN) today announced results for its fiscal first quarter ended August 31, 2008.
For the first quarter, revenues grew 30 percent to $405.8 million compared to $311.0 million in the prior year. Excluding a prior period restructuring charge relating to a facility closure, diluted earnings per share grew 31 percent to $0.71 compared to $0.54 in the prior year quarter.
In accordance with GAAP, the prior year quarter included a restructuring charge (see attached reconciliation schedule). For the three months ended August 31, 2007, GAAP diluted earnings per share was $0.53.
During the first quarter, the company began assessing its operating performance using a new segment structure. The segments are now defined as North America Merchant Services, International Merchant Services, and Money Transfer (see attached segment schedule for historical financial results). The company made this change as a result of its June 30, 2008 completion of a joint venture with HSBC in the United Kingdom, in addition to anticipated future international expansion.
Comments and Outlook
Chairman, President and CEO, Paul R. Garcia, stated, "We are delighted with our strong first quarter financial performance. Our North America segment reported strong revenue and earnings growth primarily driven by successful pricing initiatives in Canada and a favorable foreign currency exchange benefit. International merchant services results were primarily driven by the favorable impact of our June 30, 2008 U.K. acquisition, in addition to a continued benefit from our sales initiatives in our Asia-Pacific region and a favorable foreign currency benefit in the Czech Republic."
"Based on these results, we are raising our annual revenue guidance to a range of $1,640 million to $1,680 million. This revenue guidance reflects an expected 29 percent to 32 percent growth versus $1,274.2 million in fiscal 2008. In addition, we are raising our annual diluted earnings per share guidance to a range of $2.37 to $2.45, or 20 percent to 24 percent growth versus $1.98 in fiscal 2008(1). Our fiscal 2009 guidance excludes the impact of restructuring and other charges, as well as the impact of future acquisitions, such as our recently announced agreement to acquire ZAO United Card Service in the Russian Federation," said Garcia.
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