Global Payments Inc. completed its spin off from National Data Corporation and began trading on the New York Stock Exchange on February 1, 2001. Today, Global announced its third fiscal quarter financial results. These results are stated on a normalized basis, which excludes the impact of divested businesses and other non-recurring items, and includes certain pro forma costs assuming the spin off occurred on June 1, 1999.
For the third fiscal quarter ended February 28, 2001, normalized revenue was $80.7 million, net income was $5.8 million, and basic earnings per share was $0.22. These results compare to prior year third fiscal quarter normalized revenue of $79.6 million, net income of $6.3 million, and basic earnings per share of $0.24.
For the nine months ended February 28, 2001, normalized revenue was $247.6 million, net income was $22.2 million, and basic earnings per share was $0.84. These results compare to prior year same period normalized revenue of $245.3 million, net income of $23.6 million, and basic earnings per share of $0.88.
The year-over-year results reflect growth of direct card transactions in the mid-teens offset by declines in the funds transfer and indirect businesses. Global continues to be a strong generator of cash, with EBITDA of $17.0 million for the quarter.
On March 20, 2001 Global closed its transaction with Canadian Imperial Bank of Commerce (CIBC) to acquire certain net assets of CIBC’s merchant acquiring business and to form a ten year marketing alliance to offer credit and debit card payment products and services to merchants in Canada. Global issued 9,764,623 shares of unregistered common stock to CIBC, valued at $133.6 million on the closing date, providing CIBC with a 26.25% ownership position in Global Payments. Global’s results for its fourth quarter ending May 31, 2001 will include a partial period of CIBC results.
In commenting on third quarter results, Paul R. Garcia, chief executive officer, said, “We are pleased with the progress we have made to date in our core business and are encouraged by these results. With the completion of the spin-off from NDC, we are now operating as a stand alone public company focused on providing electronic payment processing services. The acquisition of CIBC’s merchant acquiring business is an important element in the continued expansion of our business in North America.”
Global Payments Inc. is a leading provider of electronic transaction processing services to merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations. Global Payments offers a comprehensive line of payment solutions, including credit and debit cards, business-to-business purchasing cards, gift cards, check guarantee, check verification and recovery, terminal management and funds transfer services.
For more information on Global’s latest quarter visit CardData ([www.carddata.com]).