First USA, Inc. reports record earnings of $59 million; Managed loans increased $6.5 billion.DALLAS--(BUSINESS WIRE)-- Jan. 17, 1996--First USA, Inc. (NYSE NYSE See: New York Stock Exchange : FUS FUS feline urological syndrome. ) today reported record earnings for the second quarter of fiscal year 1996. Net income increased 39 percent to $58.9 million, or $0.88 per share, for the second quarter ended Dec. 31, 1995, compared with net income of $42.4 million, or $0.65 per share, for the same quarter of the prior year. For the six months ended Dec. 31, 1995, net income was $113.8 million, or $1.71 per share, compared with net income of $79.7 million, or $1.22 per share, for the first six months of fiscal year 1995. "First USA reported another quarter of strong earnings performance," said John C. Tolleson Tolleson can refer to: People
n. A card issued by a bank authorizing the holder to receive bank services and often functioning as a debit card. issuer and merchant processor 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. ." Net income is after a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. related to the amortization of the customer base intangible resulting from the 1989 buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. of First USA. The non-cash charge was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $13 million in each of the quarters ended Dec. 31, 1995 and 1994. This intangible will be fully amortized in August 1997. Key Performance Measures Return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). and return on stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. were 3.00 percent and 29.75 percent, respectively, for the quarter ended Dec. 31, 1995. For First USA Bank, return on assets and return on stockholders' equity were 3.39 percent and 39.45 percent, respectively, for the same period. Managed credit card loans at Dec. 31, 1995, were $17.5 billion, an increase of $6.5 billion, or 58.6 percent, over Dec. 31, 1994, and an increase of $2.4 billion, or 16.1 percent, over Sept. 30, 1995. During the quarter ended Dec. 31, 1995, First USA opened 1.1 million new credit card accounts, an increase of 21.9 percent over the 875,000 new accounts opened during the same period of fiscal year 1995. Credit card charge volume on a managed basis was $4.9 billion during the December 1995 quarter, an increase of 41.1 percent over the prior-year period. The managed net credit loss rate was 3.10 percent for the quarter ended Dec. 31, 1995, and the managed delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. rate was 3.57 percent at Dec. 31, 1995. Merchant processing volume was $8.5 billion during the quarter ended Dec. 31, 1995, an increase of 61 percent over the prior-year quarter, and items processed increased 65.2 percent, from 92.1 million during the prior-year quarter to 152.1 million in the quarter ended Dec. 31, 1995. First USA, Inc. is a 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 specializing in the credit card business and is among the largest providers of Visa and MasterCard MasterCard Worldwide (NYSE: MA) is a mutinational corporation based in Purchase, NY in the United States. Throughout the world, its principal business is to process payments between the banks of merchants and the banks of purchasers that use its "Mastercard" branded debit- and services in the nation. First USA, Inc.'s two principal operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon are First USA Bank and First USA Paymentech. First USA Bank provides Visa and MasterCard services nationwide and had more than 12.9 million credit cards issued with $17.5 billion in managed loans outstanding at Dec. 31, 1995. First USA Paymentech processed $24.6 billion in credit card sales and 446 million items during calendar year 1995. -0-
FIRST USA, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
SECOND QUARTER FISCAL 1996 AND FISCAL 1995
December 31,
--------------------------- %
1995 1994 Change
------------ ------------ -------
For the Quarter (a)
---------------
Earnings
Income before income taxes $ 93,435 $ 67,300 38.8
Net income $ 58,929 $ 42,436 38.9
Net income per share $ 0.88 $ 0.65 35.4
Financial statistics First USA, Inc. Net interest margin (managed) 5.61% 5.16% Return on assets 3.00% 2.93% Return on stockholders' equity 29.75% 28.29% Operating expenses/average managed loans 3.83% 4.32%
First USA Bank
Net interest margin
(managed) 5.61% 5.16%
Return on assets 3.39% 3.49%
Return on stockholders'
equity 39.45% 40.71%
Credit card statistics (b) Average loans (managed) $ 16,069,091 $ 9,810,469 63.8 Charge volume (managed) $ 4,921,210 $ 3,486,514 41.1 New accounts 1,066,873 875,344 21.9 Net credit loss rate (managed) 3.10% 2.05% Merchant statistics Sales volume processed $ 8,503,860 $ 5,281,556 61.0 Items processed 152,126,000 92,090,000 65.2 At Quarter End (b) ------------------ Credit card loans (managed) $ 17,454,639 $ 11,004,323 58.6 Securitized loans $ 13,862,075 $ 7,157,703 93.7 Credit card loans $ 3,592,564 $ 3,846,620 (6.6) Total assets $ 7,323,906 $ 6,207,728 18.0 Delinquency rate (managed) 3.57% 2.50% Allowance for possible credit losses $ 70,015 $ 66,000 6.1 Stock Data ---------- Weighted average common and common equivalent shares 66,647,495 60,877,884 9.5 Common Stock Closing price per share $ 44.375 $ 32.875 Dividends declared $ 0.06 $ 0.03 100.0 Mandatory Convertible Preferred Stock Closing price per share $ 39.50 $ 32.625 Dividends declared $ 0.498 $ 0.498
(a) On Sept. 12, 1995 the company exchanged its common stock for
all of the outstanding common stock of Litle & Company, Inc. This
transaction has been accounted for as a pooling of interest and,
accordingly, the company's consolidated financial statements have
been restated for all prior periods.
(b) Includes the results of First USA Financial Services, Inc.
FIRST USA, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
SIX MONTHS ENDED DECEMBER 31, 1995 AND 1994
December 31,
--------------------------- %
1995 1994 Change
------------ ------------ -------
For the Six Months (a)
------------------
Earnings
Income before income taxes $ 180,370 $ 126,136 43.0
Net income $ 113,824 $ 79,699 42.8
Net income per share $ 1.71 $ 1.22 40.2
Financial statistics First USA, Inc. Net interest margin (managed) 5.57% 5.38% Return on assets 3.11% 2.79% Return on stockholders' equity 29.69% 27.37% Operating expenses/average managed loans 3.73% 4.40% First USA Bank Net interest margin (managed) 5.56% 5.39% Return on assets 3.56% 3.36% Return on stockholders' equity 40.00% 39.95% Credit card statistics (b) Average loans (managed) $ 15,084,124 $ 8,985,006 67.9 Charge volume (managed) $ 9,004,561 $ 6,191,971 45.4 New accounts 2,052,813 1,635,195 25.5 Net credit loss rate (managed) 2.99% 2.03% Merchant statistics Sales volume processed $ 14,545,414 $ 9,998,421 45.5 Items processed 262,478,000 175,676,000 49.4 At Period End (b) ----------------- Credit card loans (managed) $ 17,454,639 $ 11,004,323 58.6 Securitized loans $ 13,862,075 $ 7,157,703 93.7 Credit card loans $ 3,592,564 $ 3,846,620 (6.6) Total assets $ 7,323,906 $ 6,207,728 18.0 Delinquency rate (managed) 3.57% 2.50% Allowance for possible credit losses $ 70,015 $ 66,000 6.1 Stock Data ---------- Weighted average common and common equivalent shares 66,515,372 60,837,118 9.3 Common Stock Closing price per share $ 44.375 $ 32.875 Dividends declared $ 0.12 $ 0.06 100.0 Mandatory Convertible Preferred Stock Closing price per share $ 39.50 $ 32.625 Dividends declared $ 0.996 $ 0.996
(a) On Sept. 12, 1995 the company exchanged its common stock for
all of the outstanding common stock of Litle & Company, Inc. This
transaction has been accounted for as a pooling of interest and,
accordingly, the company's consolidated financial statements have
been restated for all prior periods.
(b) Includes the results of First USA Financial Services, Inc.
FIRST USA, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
SECOND QUARTER FISCAL 1996 AND FIRST QUARTER FISCAL 1996
December 31, September 30, %
1995 1995 Change
------------ ------------ -------
For the Quarter
---------------
Earnings
Income before income taxes $ 93,435 $ 86,935 7.5
Net income $ 58,929 $ 54,895 7.3
Net income per share $ 0.88 $ 0.83 6.0
Financial statistics
First USA, Inc.
Net interest margin
(managed) 5.61% 5.51%
Return on assets 3.00% 3.25%
Return on stockholders'
equity 29.75% 29.64%
Operating expenses/average
managed loans 3.83% 3.62%
First USA Bank
Net interest margin
(managed) 5.61% 5.51%
Return on assets 3.39% 3.76%
Return on stockholders'
equity 39.45% 40.59%
Credit card statistics (a) Average loans (managed) $ 16,069,091 $ 14,099,158 14.0 Charge volume (managed) $ 4,921,210 $ 4,083,351 20.5 New accounts 1,066,873 985,940 8.2 Net credit loss rate (managed) 3.10% 2.88% Merchant statistics Sales volume processed $ 8,503,860 $ 6,041,554 40.8 Items processed 152,126,000 110,352,000 37.9 At Quarter End (a) ------------------ Credit card loans (managed) $ 17,454,639 $ 15,034,832 16.1 Securitized loans $ 13,862,075 $ 11,730,908 18.2 Credit card loans $ 3,592,564 $ 3,303,924 8.7 Total assets $ 7,323,906 $ 6,828,804 7.3 Delinquency rate (managed) 3.57% 3.29% Allowance for possible credit losses $ 70,015 $ 68,000 3.0 Stock Data ---------- Weighted average common and common equivalent shares 66,647,495 66,374,643 0.4
Common Stock
Closing price per share $ 44.375 $ 54.25
Dividends declared $ 0.06 $ 0.06
Mandatory Convertible
Preferred Stock
Closing price per share $ 39.50 $ 47.25
Dividends declared $ 0.498 $ 0.498
(a) Includes the results of First USA Financial Services, Inc.
CONTACT: First USA Inc. George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). A. McCane, 214/849-3737 |
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