Affiliated Computer Services announces second-quarter earnings up 18 percent; strategic acquisitions, internal growth and ATM expansion fuel increase.DALLAS--(BUSINESS WIRE)--Jan. 17, 1996--Affiliated Computer Services Data processing (timesharing, batch processing), software development and consulting services. See service bureau, SaaS and ASP. Inc. (NASDAQNM: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 earnings for the second quarter of fiscal 1996 ended Dec. 31, 1995. Net income for the second quarter was $5.1 million, resulting in earnings per share of 37 cents, compared with $4.3 million of net income in the second quarter of fiscal 1995, or 32 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. . Revenues for the second quarter were $91.4 million, up 26 percent compared with $72.3 million recorded for the corresponding quarter a year ago. Earnings for the six months ended Dec. 31, 1995, increased 33 percent over the previous year to $10.7 million, or 78 cents per share, as compared with net income of $8.1 million, or 65 cents per share, during the prior period. Revenues for the six months ended Dec. 31, 1995, increased 26 percent to $180.6 million, compared with $142.9 million for the first six months of fiscal 1995. "Several key factors contributed to our eighth consecutive quarter of increased earnings," said Jeff Rich Jeff Rich (born 8 June 1953, Hackney, London) is an English rock drummer, who is best known as a former drummer for the English rock band, Status Quo. He helped out Def Leppard in August 1986, and played alongside Rick Allen who had recently lost his left arm in a car , ACS (Asynchronous Communications Server) See network access server. 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. . "Revenues rose 26 percent mainly due to strong new business signings in our outsourcing unit, the continued expansion of our 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. (EFT) network, and the effect of acquisitions. We have increased the number of automated teller machines 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. (ATMs) in our network by more than 50 percent in the last six months, and we now have more than 4,600 ATMs installed throughout the country. In addition, the company continues to see positive effects from the acquisitions made over the past 12 months, particularly in the professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. area." Mark King, ACS executive vice president and chief financial officer, added that the company's performance during the second quarter was especially pleasing given that it was the first quarter without any revenue from the expired Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. -- Texas contract. "Despite Bank of America's absence from our bottom line, ACS' earnings rose an impressive 18 percent during the second quarter," King said. "To ensure continued earnings growth, ACS cut costs and also developed new sources of revenues, enabling the company to absorb the loss of Bank of America while still increasing year-over-year earnings." Highlights from the second quarter include a strategic acquisition, the signing of several of outsourcing contracts and the establishment of a new $90 million unsecured revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility with Bank One, Texas and First Interstate Bank of Texas as co-agents to refinance an existing facility of equal value. Outsourcing ----------- During the quarter, ACS' outsourcing technology group signed an agreement with the American Medical Association American Medical Association (AMA), professional physicians' organization (founded 1847). Its goals are to protect the interests of American physicians, advance public health, and support the growth of medical science. , the world's largest medical publisher and largest U.S. physician membership organization with 3,000 members nationally. Under the agreement, ACS will migrate AMA's mainframe-based processing operations to ACS' computing center in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. . Additionally, ACS will support AMA's internal software development for financial, human resource, database management and other business applications. Also in the medical arena, ACS completed a three-year outsourcing contract with ScrippsHealth, one of the larger healthcare providers in San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. . Under the agreement, ACS will transfer selected components of ScrippsHealth's mainframe processing to the ACS data center in Santa Clara Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif. As part of the agreement, ACS will acquire the related data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a assets of the outsourced systems. ACS also finalized an outsourcing contract with Hexcel Corp., an international developer and manufacturer of honeycomb honeycomb a mosaic of closely packed units with depressed centers giving a honeycomb appearance. honeycomb ringworm see favus. honeycomb stomach reticulum. , advanced composites and reinforcement fabrics used in commercial aerospace, space, defense, recreation and general industrial markets. Terms of the agreement call for ACS to transfer Hexcel's mainframe processing from the company's Pleasanton, Calif., headquarters to the ACS data center in Santa Clara, Calif., and to design and implement a state-of-the-art frame relay A high-speed packet switching protocol used in wide area networks (WANs). Providing a granular service of up to DS3 speed (45 Mbps), it has become popular for LAN to LAN connections across remote distances, and services are offered by most major carriers. wide area network (WAN). During the quarter, ACS signed a transitional outsourcing contract with GATX GATX General American Transportation Corporation Capital Corp. to support the company's transition from legacy systems to SAP's R/3 client/server environment A networking environment that is made up of clients and servers running applications designed for client/server architecture. See client/server. . The agreement calls for ACS immediately to assume management of GATX Capital's Tandem mainframe system and to transfer operation of the system from GATX Capital's San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden headquarters to the ACS data center in Santa Clara, Calif. Simultaneously, ACS will convert GATX Capital to the SAP R/3 client/server system. ACS will provide the destination client/server platform, which will operate out of ACS' Santa Clara data center. In addition, ACS will furnish ongoing operational, communications and programming assistance as well as help-desk and system support through its Dallas-based Technical Assistance Center. Headquartered in San Francisco, GATX Capital is an equipment-oriented, financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company with net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. of $1.4 billion. Professional Services --------------------- Strengthening its local area network (LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. ) capabilities, ACS announced the acquisition of a majority stake in The LAN Company. Based in the greater Philadelphia area, The LAN Company is a leading provider of network design and installation services and document management systems to law firms This list of the world's largest law firms by revenue is taken from The Lawyer and The American Lawyer and is ordered by 2006 revenue:[1]
Electronic Funds Transfer ------------------------- ACS' financial services division announced an agreement in principle with South Carolina-based Affinity Technology Group to remarket Affinity's automated loan machines (ALMs) to current and future customers of ACS' MoneyMaker ATM network. With 4,628 ATMs, ACS is the nation's second- largest non-bank deployer of ATMs. Additionally, ACS launched a pilot program to dispense self-adhesive, 32-cent postage stamps from ATMs located at 10 Albertson's grocery stores in the Dallas/Fort Worth area. Based on the results of the pilot program, ACS plans to offer stamps as well as prepaid calling cards, gift certificates, coupons, travelers checks and bill payment services through a significant portion of the ATMs in its MoneyMaker network. Image Management ---------------- During the quarter, Dataplex Corporation, ACS' image management subsidiary, signed a $2.5 million systems integration contract with The Psychological Corp. (TPC (Transaction Processing Performance Council, San Francisco, CA, www.tpc.org) An organization devoted to benchmarking transaction processing systems. In order to derive the number of transactions that can be processed in a given time frame, TPC benchmarks measure the total performance of ). A subsidiary of Harcourt Brace & Co., TPC provides a broad range of assessment expertise and services, including test research and development, printing, production and design, marketing, distribution, administration, scoring and information services See Information Systems. . Under the agreement, Dataplex will develop an image-enabled workflow system to automate TPC's student test scoring process. Financing --------- Finally, ACS announced a new $90 million unsecured revolving credit facility with Bank One, Texas and First Interstate Bank of Texas as co-agents on the facility. The proceeds of the five-year credit facility will be used to refinance an existing credit facility as well as for acquisitions, capital expenditures and general corporate purposes. Additionally, ACS secured an $11 million revolving cash loan with Bank One, Texas, which will be used to provide cash for ACS' ATMs outside of Texas. With more than 3,400 employees nationwide, ACS provides information technology services, including outsourcing, professional services, electronic funds transfer (EFT) and image management. Headquartered in Dallas, Texas, the Class A Common Stock of ACS 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 Operations
(Unaudited)
(in thousands except per share amounts)
Three Months Ended Six Months Ended
December 31, December 31,
------------------- -------------------
1995 1994 1995 1994
-------- -------- -------- --------
Revenues $ 91,352 $ 72,338 $180,646 $142,938
-------- -------- -------- --------
Expenses:
Wages and benefits 35,986 23,367 68,727 47,304
Services and supplies 24,611 18,563 46,636 35,409
Rent, lease and
maintenance 18,371 19,112 37,369 38,443
Depreciation and
amortization 3,036 2,575 7,311 4,692
Other operating expenses 956 857 2,278 1,831
-------- -------- -------- --------
Total operating
expenses 82,960 64,468 162,321 127,679
-------- -------- -------- --------
Operating income 8,392 7,870 18,325 15,259
Interest and other
expenses (income), net (111) 590 244 1,582
-------- -------- -------- --------
Pretax profit 8,503 7,280 18,081 13,677
Income tax expense 3,431 2,985 7,348 5,608
-------- -------- -------- --------
Net income $ 5,072 $ 4,295 $ 10,733 $ 8,069
======== ======== ======== ========
Earnings per common
share $ .37 $ .32 $ .78 $ .65
======== ======== ======== ========
Weighted average
shares outstanding 13,828 13,234 13,786 12,334
======== ======== ======== ========
AFFILIATED COMPUTER SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
(Unaudited)
(in thousands)
December 31, June 30,
1995 1995
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 14,399 $ 41,476
ATM cash 9,900 8,250
Accounts receivable, net 57,742 42,325
Inventory 6,529 6,294
Prepaid expenses and other 9,167 7,389
Deferred taxes 9,219 8,645
-------- --------
Total current assets 106,956 114,379
Property, equipment and software, net 46,846 26,682
Goodwill and other intangible assets, net 88,275 75,371
Deferred taxes 6,790 4,183
Long-term investments and other 5,100 5,116
-------- --------
Total assets $253,967 $225,731
======== ========
LIABILITIES
Current liabilities:
Current portion of long-term debt $ 11,196 $ 5,763
Current portion of unearned revenue 7,528 10,440
Other current liabilities 50,854 46,574
-------- --------
Total current liabilities 69,578 62,777
Long-term debt 47,602 37,940
Other long-term liabilities 17,124 17,290
-------- --------
Total liabilities 134,304 118,007
Cumulative redeemable preferred stock 1,100 1,100
-------- --------
STOCKHOLDERS' EQUITY
Total stockholders' equity 118,563 106,624
-------- --------
Total liabilities and
stockholders' equity $253,967 $225,731
======== ========
CONTACT: (Media) Corporate Communications, 214/841-8011, or (Analysts) Mark A. King, CFO See Chief Financial Officer. , 214/841-8007, both of 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. |
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