Concord EFS Record Earnings Continue as 2nd Quarter Diluted EPS Grows 40%.Business Editors MEMPHIS Memphis, city, ancient Egypt Memphis (mĕm`fĭs), ancient city of Egypt, capital of the Old Kingdom (c.3100–c.2258 B.C.), at the apex of the Nile delta and 12 mi (18 km) from Cairo. , Tenn.--(BUSINESS WIRE)--July 26, 2000 Concord EFS EFS Encrypted File System (Microsoft Windows 2000) EFS Event Free Survival (survival rates in clinical trials) EFS Evangeliska Fosterlandsstiftelsen (Sweden) , Inc. (Nasdaq:CEFT CEFT Czech Educational Foundation of Texas CEFT Competitive Evaluation Field Test CEFT Certified Electronic Funds Transfer ), a leading electronic commerce provider, continued its strong financial performance with today's announcement of record second quarter results. Second quarter 2000 revenue was $290.1 million, up 43% over the second quarter of 1999. Net income for the second quarter 2000 was $46.0 million, or $0.21 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , up 49% and 40%, respectively, over the second quarter 1999. For the six months ended June 30, 2000, revenue, net income and diluted earnings per share were $547.9 million, $84.3 million and $0.39, respectively, representing increases of 44%, 49% and 44%, respectively, over the same period of the prior year. The results of each six month period exclude pretax acquisition-related charges of $0.8 million incurred during the first quarter of 2000 in the acquisition of Card Payment Systems, Inc. (CPS (1) (Characters Per Second) The measurement of the speed of a serial printer or the speed of a data transfer between hardware devices or over a communications channel. CPS is equivalent to bytes per second. ) and pretax acquisition and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $34.8 million incurred during the first quarter of 1999 in the acquisition of Electronic Payment Services Electronic Payment Services (Chinese: 易辦事), commonly known as EPS, is the largest electronic payment system in Hong Kong, Macau and Shenzhen starting from 1985. The service is provided by EPS Company (Hong Kong) Limited. , Inc. Including the charges, diluted earnings per share was $0.38 and $0.14 for the six months ended June 30, 2000 and 1999, respectively. "Strong growth during the first half of the year is a reflection of executing the directives of the Company's business plan," said Dan Palmer, Concord Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Revenue growth during the second quarter was fueled by strong sales through our expanded ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. channel, continued cross-sell and conversion of settlement contracts, and above-market transaction growth within our market segments. The Company has high visibility for growth in the future due to the growing revenue streams, integrated business model, and continued focus in the market segments we serve." Selected Consolidated Financial Data The following table presents selected consolidated financial data (in thousands, except earnings per share) for the first quarter of 2000 and 1999. The historical results have been restated to include the results of CPS, which was acquired by Concord on January 31, 2000 and accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. .
Quarter Quarter Six Months Six Months
Ended Ended Ended Ended
June June June June
30, 2000 30, 1999 30, 2000 30, 1999
-------- -------- -------- --------
Revenue $290,123 $203,556 $547,891 $381,602
Cost of Operations 214,337 144,850 407,600 271,385
Selling General and
Administrative Expenses 12,261 13,102 24,785 25,907
Acquisition Expenses and
Restructuring Charges -- -- 776 34,810
Operating Income 63,525 45,604 114,730 49,500
Interest Income 10,182 5,481 19,327 10,746
Interest Expense 2,236 3,611 4,300 7,144
Income Taxes 25,484 16,632 46,181 23,601
Net Income 45,987 30,842 83,576 29,501
Basic Earnings Per Share $ 0.22 $ 0.15 $ 0.39 $ 0.15
Diluted Earnings Per Share $ 0.21 $ 0.15 $ 0.38 $ 0.14
Shares Used For:
Basic Earnings Per Share 212,311 199,839 212,238 199,043
Diluted Earnings Per Share 219,070 207,323 218,284 206,604
A conference call to discuss the results will be held at 10:00 a.m. Central Standard Time on July 26, 2000. Senior management will host the conference call with simultaneous access via the Internet at www.concordefs.com. The listen-only conference call number for Domestic USA is 877/817-7188. International call-in number is 703/871-3097. Digital Replay numbers for the conference call are Domestic USA 888/266-2081 and International Replay number is 703/925-2533. The pass code for the replay is 4432904. The replay will run July 26, 2000 until midnight. About Concord: Concord is a vertically integrated electronic transaction processor, providing transaction authorization, data capture, settlement and funds transfer services to selected markets. Concord's primary activities include providing credit, debit, check authorization, and electronic benefits transfer (EBT EBT See: Earnings Before Taxes ) processing services to supermarket, petroleum, convenience store and other retailers; and providing gateway processing, ATM driving, debit card 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. processing and MAC(R) network access to the 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. industry. Concord also provides electronic payment and payroll services to trucking companies, truck stops, and other segments of the market. Concord news releases, links to SEC filings and other financial information are available on its corporate web site at www.concordefs.com. This release may contain or incorporate by reference statements which may constitute "forward-looking" information, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Any such statements are not guarantees for future performance and involve risks and uncertainties, and actual results may differ materially from those contemplated by such 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. . The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future results over time. See the cautionary statements included as Exhibit 99 to our Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 1999 for a more detailed discussion of certain of the factors that could cause actual results to differ materially from those included in the forward-looking statements. |
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