SPS REPORTS STRONG FINISH TO STRONG YEAR!
RIVERWOODS, Ill., Jan. 27 /PRNewswire/ -- SPS Transaction Services, Inc. (NYSE: PAY) today reported consolidated net operating revenues for the three months ended Dec. 31, 1992, of $45.8 million, up 33 percent from $34.4 million in the fourth quarter of 1991. Net income for the quarter reached $6.4 million, a 135 percent increase over $2.7 million for the same period last year. Earnings per share for the three month period were 48 cents compared with 27 cents in the prior year's fourth quarter. Net operating revenues for the year ended Dec. 31 were $165.6 million, up 29 percent from $128.4 million for the same period last year. Net income for the year was up 128 percent to $19.7 million in 1992 from $8.6 million in 1991. Year-to-date earnings for 1992 were impacted by a one-time $1.0 million non-cash after-tax charge to adopt previously announced new accounting standards covering post-retirement health and other post-employment benefits. Earnings per share prior to the cumulative effect of the accounting changes were $1.61 compared with 86 cents for the same period in 1991. Earnings per share after the accounting charges were $1.53 per share. Robert L. Wieseneck, president and chief executive officer, commented, "Results for the fourth quarter reflect a strong finish to a tremendous year." Point of sale credit card transactions processed increased 47 percent over the same period last year reflecting strong seasonal volume. Total annual transactions were 246.7 million, up 39 percent from 177.5 million last year. Wieseneck also noted the continued improvement of operational efficiencies in the private label credit card programs administered by the company. Total active accounts at year end were 2.9 million compared with 2.8 million at the end of 1991. Credit card loan receivables, including securitized loans, increased from $521.9 million at Dec. 31, 1991 to $623.1 million at Dec. 31, 1992. SPS Transaction Services, Inc., headquartered in Riverwoods, Ill., is a full-service provider of electronic transaction processing services and private label credit card programs for retailers. The company, which had been a wholly-owned subsidiary of Dean Witter, Discover & Co., Inc., completed an initial public offering of 25.7 percent of its shares in March 1992. SPS TRANSACTION SERVICES, INC. Financial Highlights (Unaudited, In millions except share data) Periods ended Dec. 31 Three Months 1992 1991 Percent Change Net operating revenues $ 45.8 $ 34.4 33 Income before income taxes $ 10.5 $ 4.5 135 Net income $ 6.4 $ 2.7 135 Net income per common share $ .48 $ .27 78 Weighted average common shares outstanding 13,450,000 10,000,000 -- Periods ended Dec. 31 Twelve Months 1992 1991 Percent Change Net operating revenues $165.6 $128.4 29 Income before income taxes and cumulative effect of accounting changes $ 34.1 $ 14.0 143 Cumulative effect of accounting changes $ 1.0 $ -- -- Net income $ 19.7 $ 8.6 128 Net income per common share: Income before cumulative effect of accounting changes $ 1.61 $ .86 87 Cumulative effect of accounting changes $ ( .08) $ -- -- Net Income $ 1.53 $ .86 78 Weighted average common shares outstanding 12,866,000 10,000,000 -- SPS TRANSACTION SERVICES NAMES TWO NEW DIRECTORS SPS Transaction Services, Inc., a rapidly growing third party credit transaction processor, today announced the appointment of two new directors. Joining the board are Dennie M. Welsh, chairman and chief executive officer of Integrated Systems Solutions Corp. (ISSC), a wholly owned subsidiary of IBM Corporation, and Tom Campbell, a former California congressman. The vision and leadership of Dennie Welsh and Tom Campbell will prove invaluable to our company,'' said Philip J. Purcell, SPS board chairman. We are extremely pleased that they have joined our board.'' Welsh, a 27 year veteran with IBM, has headed ISSC since the company was formed in May 1991 to provide information technology services tailored to the needs of corporations in a broad range of industries. He previously served as vice president of IBM Systems Integration Division, where he was responsible for IBM's development, manufacturing and system integration business with all federal agencies as well as select commercial customers. Campbell served two terms in Congress beginning in 1989. His committee assignments included Banking, Finance and Urban Affairs; Judiciary; and Science, Space and Technology. He has a Ph.D. from the University of Chicago and graduated magna cum laude from Harvard Law School, where he was editor of the law review. Prior to being elected to Congress, Campbell was director of the Federal Trade Commission's Bureau of Competition and taught law and economics at Stanford University. After leaving Congress, Campbell returned to Stanford University as a professor of law. SPS Transaction Services (NYSE: PAY) is a full-service provider of electronic transaction processing services and private label credit card programs for retailers. The company, which had been a wholly-owned subsidiary of Dean Witter, Discover & Co., Inc. completed an initial public offering of 25.7 percent of its shares in March 1992. -0- 1/27/93 /CONTACT: Jean Fargo, investor relations of SPS Transaction Services, 708-405-3400/ (PAY)
CO: SPS Transaction Services, Inc. ST: Illinois IN: SU: ERN PER
TM -- NY124 -- 9951 01/27/93 17:53 EST
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|Date:||Jan 27, 1993|
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