First USA reports 47 percent increase in earnings.DALLAS--(BUSINESS WIRE)--Oct. 18, 1995--First USA, Inc. (NYSE NYSE See: New York Stock Exchange :FUS FUS feline urological syndrome. ) Wednesday Wednesday: see week. reported record net income of $54.9 million, or $0.83 per share, for the first quarter of fiscal year 1996, compared with net income of $37.3 million, or $0.57 per share, for the quarter ended Sept. 30, 1994. "First USA began fiscal year 1996 with a very successful first quarter," said John C. Tolleson Tolleson can refer to: People
"We were pleased with our improvement in operating efficiencies. Also during the quarter, we expanded our management team and acquired Litle & Company and DMGT DMGT Daily Mail & General Trust Corp., the two premier credit card processors of the direct marketing industry. In addition, First USA 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. received FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). approval and has begun to actively market commercial cards." 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 Sept. 30, 1995 and 1994. For fiscal years ended 1995 and 1994, the non-cash charge was approximately $52 million each year. This intangible will be fully amortized in August 1997. Key Operating 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 3.25 percent and 29.64 percent, respectively, for the quarter ended Sept. 30, 1995. For First USA Bank, return on assets and return on stockholder's equity Stockholder's equity The residual claims that stockholders have against a firm's assets, calculated by subtracting all current liabilities and debt liabilities from total assets. were 3.76 percent and 40.59 percent, respectively, for the same period. Managed credit card loans at Sept. 30, 1995, were $15.0 billion, an increase of $6.2 billion, or 69.5 percent, over Sept. 30, 1994, and an increase of $1.7 billion, or 13.2 percent, over June June: see month. 30, 1995. During the quarter ended Sept. 30, 1995, First USA opened 986,000 new credit card accounts, an increase of 29.8 percent over the 760,000 new credit card accounts opened during the same period of fiscal year 1995. Credit card charge volume on a managed basis was $4.1 billion during the September 1995 quarter, an increase of 50.9 percent over the prior-year period. The managed net credit loss rate was 2.88 percent for the quarter ended Sept. 30, 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 3.29 percent at Sept. 30, 1995. Merchant processing volume was $6.0 billion during the quarter ended Sept. 30, 1995, an increase of 28.1 percent over the prior-year quarter, and items processed increased 32.0 percent, from 83.6 million during the prior-year quarter to 110.4 million in the quarter ended Sept. 30, 1995. First USA, Inc. is a financial services 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 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. First USA Bank provides Visa and MasterCard services nationwide and had more than 11.9 million credit cards issued with $15.0 billion in managed loans outstanding at Sept. 30, 1995. First USA Merchant Services, Inc. processed $20.1 billion in credit card sales and 359 million items during fiscal 1995. -0-
FIRST USA, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
FIRST QUARTER FISCAL 1996 AND FISCAL 1995
September 30,
--------------------------- %
1995 1994 Change
------------ ------------ -------
(a)
For the Quarter
---------------
Earnings
Income before income taxes $ 86,935 $ 58,836 47.8
Net income $ 54,895 $ 37,263 47.3
Net income per share $ 0.83 $ 0.57 45.6
Financial ratios
First USA, Inc.
Net interest margin
(managed) 5.51% 5.64%
Return on assets 3.25% 2.66%
Return on stockholders'
equity 29.64% 26.40%
Operating expenses/average
managed loans 3.62% 4.51%
First USA Bank
Net interest margin
(managed) 5.51% 5.65%
Return on assets 3.76% 3.23%
Return on stockholders'
equity 40.59% 39.13%
Credit card statistics
Average loans (managed) $ 14,099,158 $ 8,159,544 72.8
Charge volume (managed) $ 4,083,351 $ 2,705,457 50.9
New accounts 985,940 759,851 29.8
Net credit loss rate
(managed) 2.88% 2.00%
Merchant statistics
Sales volume $ 6,041,554 $ 4,716,865 28.1
Items processed 110,352,000 83,586,000 32.0
At Quarter End -------------- Credit card loans (managed) $ 15,034,832 $ 8,872,022 69.5 Securitized loans $ 11,730,908 $ 5,513,017 112.8 Credit card loans $ 3,303,924 $ 3,359,005 (1.6) Total assets $ 6,828,804 $ 5,654,937 20.8 Delinquency rate (managed) 3.29% 2.36% Allowance for possible credit losses $ 68,000 $ 66,000 3.0 Stock Data ---------- Weighted average common and common equivalent shares 66,374,643 60,796,351 9.2
Common Stock
Closing price per share $ 54.25 $ 35.125 54.4
Dividends declared $ 0.06 $ 0.03 100.0
Mandatory Convertible
Preferred Stock
Closing price per share $ 47.25 $ 35.500 33.1
Dividends declared $ 0.498 $ 0.498
(a) On Sept. 12, 1995, the company exchanged common stock for all of
the outstanding common stock of Litle & Company. This transaction
has been accounted for as a pooling of interests and, accordingly,
the company's consolidated financial statements have been restated
for all prior periods.
FIRST USA, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
FIRST QUARTER FISCAL 1996 AND FOURTH QUARTER FISCAL 1995
Sept. 30, June 30, %
1995 1995 Change
------------ ------------ -------
(a)
For the Quarter
---------------
Earnings
Income before income taxes $ 86,935 $ 79,976 8.7
Net income $ 54,895 $ 50,710 8.3
Net income per share $ 0.83 $ 0.77 7.8
Financial ratios
First USA, Inc.
Net interest margin
(managed) 5.51% 5.31%
Return on assets 3.25% 3.30%
Return on stockholders'
equity 29.64% 29.33%
Operating expenses/average
managed loans 3.62% 3.68%
First USA Bank
Net interest margin
(managed) 5.51% 5.30%
Return on assets 3.76% 3.81%
Return on stockholders'
equity 40.59% 40.35%
Credit card statistics
Average loans (managed) $ 14,099,158 $ 12,403,741 13.7
Charge volume (managed) $ 4,083,351 $ 3,495,364 16.8
New accounts 985,940 963,346 2.3
Net credit loss rate
(managed) 2.88% 2.53%
Merchant statistics
Sales volume $ 6,041,554 $ 5,244,072 15.2
Items processed 110,352,000 97,047,000 13.7
At Quarter End -------------- Credit card loans (managed) $ 15,034,832 $ 13,287,452 13.2 Securitized loans $ 11,730,908 $ 10,099,884 16.1 Credit card loans $ 3,303,924 $ 3,187,568 3.7 Total assets $ 6,828,804 $ 6,306,116 8.3 Delinquency rate (managed) 3.29% 2.96% Allowance for possible credit losses $ 68,000 $ 66,000 3.0 Stock Data ---------- Weighted average common and common equivalent shares 66,374,643 66,124,926 0.4
Common Stock
Closing price per share $ 54.25 $ 44.375 22.3
Dividends declared $ 0.06 $ 0.03 100.0
Mandatory Convertible
Preferred Stock
Closing price per share $ 47.25 $ 40.50 16.7
Dividends declared $ 0.498 $ 0.498
(a) On Sept. 12, 1995, the company exchanged common stock for all of
the outstanding common stock of Litle & Company. This transaction
has been accounted for as a pooling of interests and, accordingly,
the company's consolidated financial statements have been restated
for all prior periods.
CONTACT: First USA, Inc., Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. 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, 214/746-8547 |
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