Concord EFS Reports Diluted EPS Up 39% for 1st Quarter 2001, Excluding Charges.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)--April 26, 2001 Concord Concord, cities, United States Concord (kŏng`kərd, kŏn`kôrd'). 1 city (1990 pop. 111,348), Contra Costa co., W central Calif.; settled c.1852, inc. 1906. 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, today announced continued strong financial results in the first quarter of 2001. Net income and 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 were up 43% and 39%, respectively, in the first quarter of 2001 as compared to the first quarter of 2000, excluding 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. incurred in both periods. Diluted earnings per share of $0.24 in the first quarter of 2001, excluding charges, represents the combined earnings of Concord and Star Systems, Inc. (STAR(SM)), which Concord acquired on February 1, 2001. Historical financial results have been restated to reflect the STAR acquisition, which was 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. transaction. Financial Highlights -- Revenue for the first quarter of 2001 was $375.6 million, an increase of 24% compared to $302.9 million in the first quarter of 2000. -- Excluding charges, net income for the first quarter of 2001 was $60.4 million, or $0.24 diluted earnings per share, compared to $42.2 million, or $0.17 diluted earnings per share in the first quarter of 2000. -- A one-time charge of $86.4 million, net of taxes, was incurred in the first quarter of 2001 in association with a company-wide consolidation plan to expedite the integration of recent acquisitions. The consolidation plan charge includes costs to be incurred in combining operating platforms and facilities, communications conversion costs, asset-write-offs, and acquisition costs. In the first quarter of 2000 an acquisition-related charge of $0.7 million, net of taxes, was incurred in the acquisition of Card Payment Systems. -- Including the one-time charges, there was a net loss of $26.0 million for the first quarter of 2001, or $0.11 diluted loss per share, compared to net income of $41.5 million, or $0.17 diluted earnings per share, in the first quarter of 2000. "Our first quarter 2001 results were excellent, with improvements in both gross margin and operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , as expected, coupled with a continued decline in selling, general and administrative expenses as a percent of revenue," 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. . "In our Network Services segment, we completed the STAR acquisition and moved quickly to integrate the sales and marketing functions. This focus will help drive revenue growth in 2001 as we expand the STAR network and cross-sell processing services and new products to network members. In our Payment Services segment, we saw strong sales from our independent sales organization This article or section deals primarily with the English-speaking world and does not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. channel, plus continued transaction growth in our existing markets. With the company-wide consolidation plan that was announced in March, we're taking steps to eliminate redundancies and capture operating synergies as we integrate our recent acquisitions. We believe that these elements will combine to position Concord for continued profitable growth in 2001 and beyond." Selected Consolidated Financial Data The following table presents selected consolidated financial data (in thousands, except earnings per share) for the first quarter of 2001 and 2000.
Excluding Charges
-------------------------
Quarter Quarter Quarter Quarter
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,
2001 2000 2001 2000
---------- ---------- ---------- ----------
Revenue $375,638 $302,917 $375,638 $302,917
Cost of Operations 270,268 222,515 270,268 222,515
Selling, General and
Administrative
Expenses 23,812 21,837 23,812 21,837
Acquisition Expenses
and Restructuring
Charges 125,362 776 --- ---
Operating Income
(Loss) (43,804) 57,789 81,558 58,565
Interest Income 15,482 9,893 15,482 9,893
Interest Expense (3,123) (2,416) (3,123) (2,416)
Income Taxes (Benefit) (5,626) 23,608 33,356 23,685
Minority Interest in
Subsidiary 173 146 173 146
Net Income (Loss) (25,992) 41,512 60,388 42,211
Basic Earnings (Loss)
Per Share $(0.11) $0.17 $0.25 $0.18
Diluted Earnings
(Loss) Per Share $(0.11) $0.17 $0.24 $0.17
Shares Used For:
Basic Earnings
Per Share 241,664 238,636 241,664 238,636
Diluted Earnings
Per Share 241,664 244,748 252,066 244,748
Conference Call Information A conference call to discuss Concord's first quarter 2001 results will be held at 10:00 a.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. (11:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy ) on Thursday, April 26, 2001. Senior management will host the conference call with simultaneous access to a brief slide presentation via the Internet at www.ceft.com. The listen-only conference call number for Domestic USA is 800/684-5368, ID code 1016853. The International call-in number is 303/267-1000, ID code 1016853. Digital replay numbers for the conference call are Domestic USA 800/625-5288, ID code 1016853, and International 303/804-1855, ID code 1016853. The replay will run through Monday, April 30, 2001. The slide presentation will be available for viewing at www.concordefs.com through May 10, 2001. About Concord EFS, Inc. Concord is a vertically-integrated electronic transaction processor, providing transaction authorization, data capture, settlement and funds transfer services to financial institutions, supermarkets, petroleum retailers, convenience stores The following is a list of convenience stores organized by geographical location. Stores are grouped by the lowest heading that contains all locales in which the brands have significant presence. , and other independent retailers. Concord's primary activities include Payment Services, providing credit, debit, check authorization, and electronic benefits transfer (EBT EBT See: Earnings Before Taxes ) processing services to selected retail segments; and Network Services, providing gateway processing, ATM driving, online and signature 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 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 under the Cash Station(R), MAC(R), and STAR(SM) brands. Concord also provides electronic payment and payroll services to trucking companies, truck stops and other businesses. Concord news releases, links to SEC filings, and other information are available on its corporate web site at www.concordefs.com. Note to Investors 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. . Concord 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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