BA Merchant Services, Inc. Announces 1998 First Quarter Earnings.SAN FRANCISCO--(BUSINESS WIRE)--May 5, 1998--BA Merchant Services Merchant services is the name given in the United States to a broad category of financial services intended for use by businesses. In its most specific use, it usually refers to the service that enables a business to accept a transaction payment by use of the customer's credit or , Inc. (NYSE NYSE See: New York Stock Exchange :BPI (Bits Per Inch) The measurement of the number of bits stored in one linear inch of a track (storage channel) on a disk or tape. Bit density on magnetic disks has reached 800,000 bpi (800 Kbpi). See tpi, areal density and magnetic disk. BPI - bits per inch ) reported first quarter net income of $8.7 million, compared to net income of $7.7 million for the first quarter of 1997. Earnings per share of $.18 for the first quarter of 1998 increased 13 percent over pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share of $.16 per share for the comparable quarter in 1997. The operating results for the first quarter of 1997 include the historical results of operations for the Thailand Thailand (tī`lănd, –lənd), Thai Prathet Thai [land of the free], officially Kingdom of Thailand, constitutional monarchy (2005 est. pop. 65,444,000), 198,455 sq mi (514,000 sq km), Southeast Asia. , Philippines Philippines officially Republic of the Philippines Island country, western Pacific Ocean, on an archipelago off the southeast coast of Asia. Area: 122,121 sq mi (316,294 sq km). Population (2005 est.): 84,191,000. and Taiwan Taiwan (tī`wän`), Portuguese Formosa, officially Republic of China, island nation (2005 est. pop. 22,894,000), 13,885 sq mi (35,961 sq km), in the Pacific Ocean, separated from the mainland of S China by the 100-mi-wide (161-km) Taiwan merchant processing businesses acquired from BankAmerica Corporation in the second and third quarters of 1997. Net revenue of $41.8 million on sales volume processed of $9.1 billion for the first three months of 1998 increased 16 percent and 27 percent, respectively, over net revenue of $36.0 million on sales volume processed of $7.2 billion for the same period in 1997. "We have generated strong growth in sales volume and transactions processed over the past year principally by expanding our direct sales efforts," said Sharif sha·rif n. Variant of sherif. Bayyari, president and chief executive officer of BAMS BAMS, n.pr See Bachelor of Ayurvedic Medicine and Surgery. . "We look forward to continuing this strategy in cooperation with the new BankAmerica Corporation." The company's net income from domestic operations in the first quarter of 1998 increased 18 percent over the comparable quarter in 1997. Domestically, net revenue in the first quarter of 1998 increased 21 percent over the comparable period in 1997 on an increase in sales volume processed of 28 percent. First quarter 1998 net income from the company's Asian operations decreased 66 percent from first quarter 1997, reflecting both increased competition and the area's economic turmoil. Total operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. for the first quarter of 1998 increased $4.8 million or 19 percent over the first quarter of 1997. The increase was primarily attributable to: (1) a 21 percent increase in 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 and communications expense principally due to increased third party data processing services related to growth in transaction volume; (2) a 17 percent increase in salaries and employee benefits mostly due to sales staff growth and; (3) a 56 percent increase in depreciation expense due to the acquisition of merchant processing terminals required for the company's expanded merchant base and the impact of the HostLINK(TM) transaction processing system A Transaction Processing System (TPS) is a type of information system. TPSs collect, store, modify, and retrieve the transactions of an organization. A transaction is an event that generates or modifies data that is eventually stored in an information system. installed during the second quarter of 1997. BAMS provides an array of payment processing and related information products and services to merchants who accept credit, charge, and debit cards debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. as payment for goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. . BAMS is the exclusive provider of merchant processing services for 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. . According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. industry sources, BAMS is the fourth largest processor of merchant credit transactions and one of the largest processors of debit card transactions in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . -0- This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. conveying management's expectations as to the future. These statements are subject to uncertainties, including those discussed in "Forward-Looking Statements" in BAMS' most recent report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , that may cause actual results to differ materially. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. -0-
BA MERCHANT SERVICES, INC.
FINANCIAL HIGHLIGHTS
Table 1
Quarterly Summary of Results and Statistical Data
Three Months Ended
March 31,
1998 1997(1)
($ in 000's, except per share data)
1. Net revenue $ 41,834 $ 35,969
2. Income from operations $ 12,724 $ 11,609
3. Net income $ 8,699 $ 7,705
4. Operating margin(2) 30.4% 32.3%
5. Diluted earnings per share(3) $ .18 N/A
6. Pro forma diluted earnings per share(1,3) N/A $ .16
7. Total transactions processed
(amounts in 000's) 154,987 107,016
8. Total sales volume processed
($ in millions) $ 9,116 $ 7,205
N/A Not applicable
1 Results for the quarter ended March 31, 1997 include the
historical results of operations for the Thailand, Philippines
and Taiwan merchant processing businesses acquired from
BankAmerica Corporation. The acquisition of these entities has
been accounted for as a reorganization of entities under common
control.
2 Pre-tax income from operations as a percent of net revenue.
Three Months Ended
March 31,
3 (amounts in 000's) 1998 1997 Pro forma
Weighted average number of common
shares outstanding 48,660 46,636
Weighted average number of common shares
and common stock equivalents outstanding 48,802 48,700
Basic earnings per share amounts are the same as reported diluted
earnings per share amounts.
BA MERCHANT SERVICES, INC.
Table 2
Statement of Operations
Three Months Ended
March 31, Increase/(Decrease)
1998 1997 Amount Percent
($ in 000's)
1. Net revenue $41,834 $35,969 $ 5,865 16%
Operating expense:
2. Data processing and
communications 9,249 7,668 1,581 21%
3. Salaries and
employee benefits 9,451 8,059 1,392 17%
4. General and administrative 5,667 5,492 175 3%
5. Depreciation 3,549 2,281 1,268 56%
6. Occupancy 750 747 3 0%
7. Amortization of intangibles 444 113 331 293%
8. Total operating expense 29,110 24,360 4,750 19%
9. Income from operations 12,724 11,609 1,115 10%
10. Net interest income 2,020 1,524 496 33%
11. Income before income
taxes 14,744 13,133 1,611 12%
12.Provision for income taxes 6,045 5,428 617 11%
13. Net income $ 8,699 $ 7,705 $ 994 13%
BA MERCHANT SERVICES, INC.
Table 3
Balance Sheet
March 31, December 31,
($ in 000's) 1998 1997
ASSETS
Current assets:
1. Cash and cash equivalents $ 68,874 $ 29,426
2. Short-term investments 53,785 64,018
3. Drafts in transit 107,604 110,445
4. Accounts receivable 58,061 63,461
5. Other current assets 7,754 11,533
6. Total current assets 296,078 278,883
7. Property and equipment, net 28,250 27,762
8. Other assets 19,556 25,422
9. Total assets $343,884 $332,067
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
10. Accounts payable $ 277 $ 32
11. Merchants payable 8,757 8,058
12. Accrued liabilities 6,969 6,050
13. Accrued credit card association and
interchange fees 8,823 9,192
14. Income taxes payable 7,434 3,459
15. Other current liabilities 10,786 13,207
16. Total current liabilities 43,046 39,998
17. Other liabilities 858 816
18. Total liabilities 43,904 40,814
Stockholders' equity:
19. Common stock 486 486
20. Additional paid-in capital 252,576 252,479
21. Retained earnings 46,979 38,280
22. Accumulated foreign
currency translation adjustments (61) 8
23. Total stockholders' equity 299,980 291,253
24. Total liabilities &
stockholders' equity $343,884 $332,067
CONTACT: BA Merchant Services BA Merchant Services, LLC is a wholly owned subsidiary of Bank of America specializing in handling credit, debit, stored value, and electronic benefits transfer (EBT) card transactions. , Inc. Betty Bet´ty n. 1. A short bar used by thieves to wrench doors open. The powerful betty, or the artful picklock. - Arbuthnot. 2. Riess, 415/622-6397 (Media Contact) Vince Barella, 415/241-7732 (Investor Contact) |
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