Concord EFS Revenue Up 30%, Net Income Up 16% in 3rd Quarter.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)--Oct. 29, 2002 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 leader in electronic payments, today reported continued strong revenue growth of 30% in the third quarter of 2002 as compared to 2001, with growth in 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 of 16% and 15%, respectively. Excluding a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. one-time adjustment for litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement reserves that are no longer needed, net income and diluted earnings per share grew 7% and 6%, respectively, in the third quarter.
3rd Quarter Highlights Including Adjustment Excluding Adjustment
--------------------- ---------------------
Quarter Ended Quarter Ended
Sept. 30, Sept. 30,
2002 2001 % 2002 2001 %
--------------------- ---------------------
Revenues (in thousands) $568,296 $436,198 30% $568,296 $436,198 30%
Net Income (in thousands) $94,329 $81,456 16% $87,179 $81,456 7%
Diluted Earnings Per Share $0.18 $0.16 15% $0.17 $0.16 6%
"As we projected, revenue growth continued to accelerate in the third quarter as new and existing clients rolled out new locations and as transaction growth continued to be strong, especially in the early months of the quarter," said Dan M. 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. . "As expected, the addition of lower-margin revenue from large clients contributed to lower operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in the third quarter. However, growth in operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. excluding settlement continues to be excellent, with year to date growth of 36%. Going forward, we will continue to emphasize lower operating costs operating costs npl → gastos mpl operacionales to drive improvements in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. per transaction." "The big transaction story continues to be PIN-secured debit, which outpaced every other transaction category by growing in excess of 35% in the third quarter. In fact, year-to-date acquired debit transactions have already exceeded full year 2001 acquired debit volume," said Edward A. Labry III, Concord president. "While both the payment and network segments saw strong transaction growth, September volume was somewhat lower than expected. This was consistent with the overall slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. , and we will be closely monitoring the economy's impact on transaction volumes in the coming months." Revenue for the nine months ended September 30, 2002 was up 27% over the same period in 2001, with net income and earnings per share up 67% and 62%, respectively, during the same period. Excluding acquisition, restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and write-off charges and litigation settlement charges and excluding the favorable one-time adjustment to litigation charges in the third quarter, net income and earnings per share increased 26% and 21%, respectively, for the nine months ended September 30, 2002 as compared to the same period in 2001.
YTD Highlights Including Charges Excluding Charges
and Adjustment and Adjustment
------------------------- -------------------------
Nine Months Ended Nine Months Ended
Sept. 30, Sept. 30,
2002 2001 % 2002 2001 %
------------------------- -------------------------
Revenues
(in thousands) $1,568,616 $1,230,906 27% $1,568,616 $1,230,906 27%
Net Income
(in thousands) $211,756 $126,646 67% $267,592 $213,026 26%
Diluted Earnings
Per Share $0.40 $0.25 62% $0.50 $0.42 21%
Business Highlights Sales and Implementations: -- Concord's STAR(sm) network reached a milestone in its point of sale locations in the third quarter, reaching a total of 1,000,000 retail locations across the U.S. where consumers may pay for purchases with their STAR ATM/debit cards. -- Concord signed 122 new processing contracts with financial institutions for services such as ATM driving and debit card processing in the third quarter. Year to date, a total of 341 new processing contracts have been signed, including 293 contracts for services that were cross-sold to current clients. The STAR network added 67 new financial institution members in the third quarter, for a total of 208 new members year to date. -- Concord added approximately 22,200 new merchant locations to its payment processing service, including 1,182 new quick service restaurant locations, during the third quarter. Concord's third quarter implementations included 1,224 new locations for major retail clients Dillard's Inc., Harris Teeter, Inc., Crabtree & Evelyn Ltd., and Cigarettes Cheaper. As of the end of the third quarter, Concord processes for approximately 400,000 merchant locations, including over 13,300 quick service restaurant locations. Stock Repurchase Plan stock repurchase plan 1. See buyback. 2. See self-tender. : -- On August 5, 2002, Concord announced that its board of directors had approved the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of up to $250.0 million of Concord's common stock. Under the repurchase plan, Concord may buy back shares of its outstanding stock from time to time either on the open market or through privately negotiated transactions. During the third quarter a total of 4.5 million shares at an aggregate cost of $68.4 million were purchased and retired. Consolidation Activities: -- Concord completed the final phase of a previously announced plan to consolidate its network switch processing. All network switching for Concord's STAR network is now performed in-house. Other: -- On August 6, 2002, settlement was finalized See finalization. on a previously disclosed purported pur·port·ed adj. Assumed to be such; supposed: the purported author of the story. pur·port  ed·ly adv. class action lawsuit class action lawsuitA lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax in which EFS National Bank was named a defendant. During the second quarter 2002 Concord had recorded a one-time charge of $13.5 million, net of taxes, in connection with the anticipated settlement. During the third quarter Concord reduced the one-time charge by $7.2 million, net of taxes, to reflect lower-than-anticipated settlement costs. Selected Consolidated Financial Data The following table presents selected consolidated financial data (in thousands, except earnings per share) for the third quarter of 2002 and 2001.
Including Excluding
Adjustment Adjustment
------------------- -------------------
Quarter Ended: Quarter Ended:
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2002 2001 2002 2001
------------------- -------------------
Revenue $568,296 $436,198 $568,296 $436,198
Cost of Operations 421,086 304,414 421,086 304,414
Selling, General and
Administrative
Expenses 31,233 22,348 31,233 22,348
Acquisition, Restructuring and
Write-Off Charges -- -- -- --
Litigation Settlement
Adjustment (11,000) -- -- --
------------------- -------------------
Operating Income 126,977 109,436 115,977 109,436
Other Income 1,023 876 1,023 876
Investment Income 20,653 19,702 20,653 19,702
Interest Expense 3,054 3,510 3,054 3,510
Income Taxes 50,959 44,910 47,109 44,910
Minority Interest in Subsidiary 311 138 311 138
------------------- -------------------
Net Income $94,329 $81,456 $87,179 $81,456
------------------- -------------------
Basic Earnings Per Share $0.18 $0.16 $0.17 $0.16
Diluted Earnings Per Share $0.18 $0.16 $0.17 $0.16
Shares Used For:
Basic Earnings Per Share 512,546 503,193 512,546 503,193
Diluted Earnings Per Share 527,856 524,510 527,856 524,510
The following table presents selected consolidated financial data (in thousands, except earnings per share) for the nine months ended September 30, 2002 and 2001.
Including Charges and Excluding Charges and
Adjustment Adjustment
----------------------- -----------------------
Nine Months Ended: Nine Months Ended:
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2002 2001 2002 2001
----------------------- -----------------------
Revenue $1,568,616 $1,230,906 $1,568,616 $1,230,906
Cost of Operations 1,125,361 874,301 1,125,361 874,301
Selling, General and
Administrative
Expenses 88,372 69,450 88,372 69,450
Acquisition,
Restructuring and
Write-Off Charges 76,506 125,362 -- --
Litigation Settlement
Charges 9,761 -- -- --
----------------------- -----------------------
Operating Income 268,616 161,793 354,883 287,155
Other Income 7,937 3,068 7,937 3,068
Investment Income 59,723 50,424 59,723 50,424
Interest Expense 8,816 9,890 8,816 9,890
Income Taxes 115,033 78,438 145,464 117,420
Minority Interest in
Subsidiary 671 311 671 311
----------------------- -----------------------
Net Income $211,756 $126,646 $267,592 $213,026
----------------------- -----------------------
Basic Earnings Per
Share $0.41 $0.26 $0.52 $0.43
Diluted Earnings Per
Share $0.40 $0.25 $0.50 $0.42
Shares Used For:
Basic Earnings Per
Share 510,973 491,102 510,973 491,102
Diluted Earnings Per
Share 530,255 512,319 530,255 512,319
Conference Call Information A conference call to discuss these results will be held on Tuesday, October 29 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 ) with Dan M. Palmer, chairman and chief executive officer, Edward A. Labry III, president, and Edward T. Haslam, chief financial officer. To listen to the conference call, dial 800-446-1671 (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. ) or 847-413-3362 (international), and enter identification number 6308564. A replay of the call will be available beginning late afternoon on October 29 through November 5, 2002 by dialing 888-843-8996 (United States) or 630-652-3044 (international), and entering identification number 6308564. To access the slide presentation and listen to the call via the Internet, go to Concord's investor relations Investor relations The process by which the corporation communicates with its investors. homepage at www.ceft.com and click on the link "Webcast" up to 15 minutes in advance of the call. A replay of the Webcast will be available at the same location an hour after the call ends through November 12, 2002. Concord is a leading 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. , restaurants, and other independent retailers. Concord's primary activities include Network Services, providing ATM driving, PIN-secured 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, deposit risk management, and STAR(sm) 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; and Payment Services, providing credit, debit, check authorization, and electronic benefits transfer processing services to selected retail segments. Concord news releases, links to SEC filings, and other information are available at www.concordefs.com. This release may contain or incorporate by reference 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. made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any such statements are not guarantees of future performance and involve risks, uncertainties, and other factors which may cause our actual performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by those statements. Concord undertakes no obligation to publicly update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, or changes to future results over time. See the cautionary statements included as Exhibit 99.2 to our Annual 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. filed on February 26, 2002 for a more detailed discussion of certain of the factors that could cause our actual results to differ materially from those included in the forward-looking statements. |
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