Global Payments Reports First Quarter Earnings

Global Payments Reports First Quarter Earnings

September 28, 2007

    ATLANTA, Sept. 28 /Xinhua-PRNewswire-FirstCall/ --
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.

    (Logo:
http://www.newscom.com/cgi-bin/prnh/20010221/ATW031LOGO )

    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.



    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



     Contact: Jane M. Elliott 
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