Affiliated Computer Services Announces Record Third-Quarter Earnings; ACS Growth Fueled by New Outsourcing Contracts and Strategic Acquisitions.DALLAS--(BUSINESS WIRE)--April 16, 1996--Affiliated Computer Services Data processing (timesharing, batch processing), software development and consulting services. See service bureau, SaaS and ASP. , Inc. (NASDAQ/MM: ACSA ACSA Association of Collegiate Schools of Architecture ACSA Association of California School Administrators ACSA Airports Company South Africa ACSA Apple Certified System Administrator ACSA Australian Curriculum Studies Association ), a leading information technology services company, today announced record earnings for the fiscal 1996 third quarter ended March 31, 1996. Earnings per share for the third quarter were 41 cents, a growth of 21 percent over the third quarter of fiscal 1995 earnings of 34 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . Net income for the third quarter of fiscal 1996 was $5.7 million compared to $4.5 million of net income in the third quarter of fiscal 1995. Revenues also increased during the period by 23 percent, from $80.7 million in the third quarter of fiscal 1995 to a record $99.1 million in this quarter. Earnings per share for the nine months ended March 31, 1996, increased 20 percent over the previous year to $1.19 per share on net income of $16.5 million, as compared with net income of $12.5 million, or $0.99 per share, during the comparable prior year period. Revenues for the nine months ended March 31, 1996, increased 25 percent to $279.7 million, compared with $223.6 million for the first nine months of fiscal 1995. "The number of new commercial outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. contracts, the acquisition of Unibase Technologies, Inc. and the Caremark contract extension resulted in an exceptional third quarter for ACS (Asynchronous Communications Server) See network access server. ," said Jeffrey A. Rich, ACS president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "Revenue and earnings growth were outstanding, and we significantly improved our balance sheet with the proceeds of the secondary stock offering," Rich said. Mark King, ACS executive vice president and chief financial officer, added, "This quarter marked our ninth consecutive quarter of earnings growth. Our recently completed secondary stock offering, which netted over $78 million in proceeds, enabled ACS to substantially reduce outstanding debt and positioned the Company to pursue additional growth opportunities." With more than 4,600 full-time full-time adj. Employed for or involving a standard number of hours of working time: a full-time administrative assistant. full employees, Affiliated Computer Services Affiliated Computer Services (ACS) (NYSE: ACS) is a Fortune 500 company that provides information technology outsourcing as well as business process outsourcing solutions to businesses, government agencies, and non-profit organizations. , Inc. is a leading nationwide provider of information technology services, including data-processing outsourcing, image management and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. , and electronic funds transfer See EFT. (application, communications) electronic funds transfer - (EFT, EFTS, - system) Transfer of money initiated through electronic terminal, automated teller machine, computer, telephone, or magnetic tape. transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. . Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. , Texas-based ACS operates the nation's second-largest, non-bank automated teller machine automated teller machine (ATM), device used by bank customers to process account transactions. Typically, a user inserts into the ATM a special plastic card that is encoded with information on a magnetic strip. (ATM) network -- MoneyMaker(SM) -- with 5,017 ATMs. The company's Class A common stock is traded on the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on National Market System under the symbol "ACSA." -0-
AFFILIATED COMPUTER SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(in thousands except per share amounts)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------- -------------------
1996 1995 1996 1995
-------- -------- -------- --------
Revenues $ 99,062 $ 80,700 $279,708 $223,638
-------- -------- -------- --------
Expenses:
Wages and benefits 42,045 29,257 110,772 76,561
Services and supplies 24,677 19,851 71,313 55,260
Rent, lease and
maintenance 17,893 20,512 55,262 58,955
Depreciation and
amortization 3,434 3,377 10,745 8,069
Other operating expenses 1,065 560 3,343 2,391
-------- -------- -------- --------
Total operating expenses 89,114 73,557 251,435 201,236
-------- -------- -------- --------
Operating income 9,948 7,143 28,273 22,402
Interest and other
expenses (income), net 370 (396) 614 1,186
-------- -------- -------- --------
Pretax profit 9,578 7,539 27,659 21,216
Income tax expense 3,843 3,080 11,191 8,688
-------- -------- -------- --------
Net income $ 5,735 $ 4,459 $ 16,468 $ 12,528
======== ======== ======== ========
Earnings per common share $ .41 $ .34 $ 1.19 $ .99
======== ======== ======== ========
Weighted average
shares outstanding 14,000 13,296 13,849 12,598
======== ======== ======== ========
AFFILIATED COMPUTER SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
March 31, June 30,
1996 1995
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 35,401 $ 41,476
ATM cash 8,950 8,250
Accounts receivable, net 58,370 42,325
Inventory 10,892 6,294
Prepaid expenses and other 10,167 7,389
Deferred taxes 8,162 8,645
-------- --------
Total current assets 131,942 114,379
Property, equipment and software, net 61,886 26,682
Goodwill and other intangible assets, net 96,378 75,371
Deferred taxes 8,522 4,183
Long-term investments and other 6,932 5,116
-------- --------
Total assets $305,660 $225,731
======== ========
LIABILITIES
Current liabilities:
Current portion of notes payable $ 14,520 $ 5,763
Current portion of unearned revenue 11,034 10,440
Other current liabilities 61,714 46,574
-------- --------
Total current liabilities 87,268 62,777
Long-term debt 7,315 37,940
Other long-term liabilities 15,979 17,290
-------- --------
Total liabilities 110,562 118,007
Cumulative redeemable preferred stock 1,100 1,100
-------- --------
STOCKHOLDERS' EQUITY
Total stockholders' equity 193,998 106,624
-------- --------
Total liabilities and stockholders' equity $305,660 $225,731
CONTACT: Affiliated Computer Services Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. , 214/841-8011, (Media) Mark A. King, 214/841-8007 (Analysts) |
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