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Affiliated Computer Services announces record third-quarter earnings.

DALLAS--(BUSINESS WIRE)--April 19, 1995--Affiliated Computer Services Inc. (NASDAQ: ACSA), a leading information technology services company, announced today record earnings for its fiscal third quarter ended March 31, 1995. Net income for the third quarter was $4.5 million, resulting in earnings per share of 34 cents, compared with $3.2 million of income from continuing operations in the third quarter of fiscal 1994, or 28 cents per share. Revenues for the third quarter were $80.7 million, up 17 percent compared with $69.0 million recorded for the corresponding quarter a year ago.

Earnings for the nine months ended March 31, 1995, increased 46.2 percent over the previous year to $12.5 million, or 99 cents per share, as compared with income from continuing operations of $8.6 million, or 75 cents per share, during the prior period. Revenues for the nine months ended March 31, 1995, increased 11.4 percent to $223.6 million, compared with $200.7 million for the first nine months of fiscal 1994.

"Our strategic acquisitions and new sales activities continue to fuel growth," said Darwin Deason, chairman and chief executive officer of ACS. "I am very pleased that our commitment to providing creative, cost- effective information technology solutions has led to a solid third- quarter performance."

The third quarter was highlighted by four strategic acquisitions and a bank processing agreement.

During the quarter, ACS acquired certain assets of Hancock Bank of Louisiana, a wholly-owned subsidiary of Hancock Holding Company, and completed a processing agreement with the bank. Under the agreement, ACS will provide a variety of information processing, image processing and back-office services for Hancock Bank and other financial institutions through the formation of the ACS Baton Rouge Data Center.

ACS also acquired TOTAL/1 Services Corporation of Houston, a privately- held credit union processing company serving more than 65 clients. With a full-service data processing product, TOTAL/1 has been serving credit unions throughout the Southwest for more than 15 years. By acquiring TOTAL/1, ACS gained a foothold in the credit union processing business.

In the third quarter, ACS announced the acquisition of 70 percent of the outstanding common stock of The Systems Group Inc. (TSG). Privately- held TSG provides programmers, systems analysts, and client/server experts to Fortune 500 companies on a project basis. With offices in Dallas and Atlanta, TSG reported revenues of more than $14 million in 1994.

Also in the third quarter, ACS acquired Microfilm Service Co. (MSC). With offices in Seattle, Wash., and Portland, Ore., MSC is an information management company that captures, stores, manages, and retrieves information using microfilm, microfiche, imaging, optical disk technology and paper. MSC reported revenues of $8 million in 1994.

ACS expanded its services in the Northeast through an agreement with the New York Acting Superintendent of Banks, in possession of Nationar. Under the agreement, ACS will provide item processing services to more than 310 banks, savings banks, thrifts and credit unions formerly serviced by Nationar. ACS will serve customers in 40 states, processing more than 20 million items a month.

With 2,600 employees nationwide, ACS provides information processing services, including data processing, outsourcing, electronic funds transfer (EFT), and information and image management. Headquartered in Dallas, Texas, the Class A Common Stock of ACS is traded on the NASDAQ National Market System under the symbol "ACSA." -0-
 AFFILIATED COMPUTER SERVICES INC. AND SUBSIDIARIES
 Financial Highlights
 (Unaudited)
 (dollars and shares in thousands except per share amounts)
 Three Months Ended Nine Months Ended
 March 31, March 31,
 1995 1994 1995 1994
 -------- -------- -------- --------
 Revenues $ 80,700 $ 68,970 $223,638 $200,689
 Income from continuing
 operations 4,459 3,228 12,528 8,571
 Income from discontinued
 operations, net of income
 taxes -- 233 -- 250
 -------- -------- -------- --------
 Net income $ 4,459 $ 3,461 $ 12,528 $ 8,821
 ======== ======== ======== ========
 Weighted average shares
 outstanding 13,296 11,408 12,598 11,412
 ======== ======== ======== ========
 Earnings per common share
 from continuing operations $ 0.34 $ 0.28 $ 0.99 $ 0.75
 ======== ======== ======== ========


AFFILIATED COMPUTER SERVICES INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(Unaudited)

(dollars and shares in thousands except per share amounts)

Three Months Ended Nine Months Ended

March 31, March 31,

1995 1994 1995 1994

-------- -------- -------- --------

Revenues from

continuing operations $ 80,700 $ 68,970 $223,638 $200,689

Expenses:

Wages and benefits 29,257 22,495 76,561 69,377

Services and supplies 19,851 19,288 55,260 55,278

Rent, lease and

maintenance 20,512 17,011 58,955 47,179

Depreciation and

amortization 3,377 1,975 8,069 6,517

Other operating expenses 560 1,747 2,391 3,552

-------- -------- -------- --------

Total operating

expenses 73,557 62,516 201,236 181,903

-------- -------- -------- --------

Operating income from

continuing operations 7,143 6,454 22,402 18,786

Interest and other

expenses, net (396) 1,093 1,186 4,002

-------- -------- -------- --------

Pretax profit from

continuing operations 7,539 5,361 21,216 14,784

Income tax expense 3,080 2,133 8,688 6,213

-------- -------- -------- --------

Income from continuing

operations 4,459 3,228 12,528 8,571

Income from discontinued

operations, net of

income taxes -- 233 -- 250

-------- -------- -------- --------

Net income $ 4,459 $ 3,461 $ 12,528 $ 8,821

======== ======== ======== ========

Earnings per

common share:

Continuing operations $ .34 $ .28 $ .99 $ .75

Discontinued operations -- .02 -- .02

-------- -------- -------- --------

Net income $ .34 $ .30 $ .99 $ .77

======== ======== ======== ========

Weighted average

shares outstanding 13,296 11,408 12,598 11,412

======== ======== ======== =======

 AFFILIATED COMPUTER SERVICES INC. AND SUBSIDIARIES
 Condensed Consolidated Balance Sheets
 (Unaudited)
 (dollars in thousands)


 March 31, June 30,
 1995 1994
 --------- --------
 ASSETS


 Current assets:
 Cash and cash equivalents $ 29,233 $ 20,409
 ATM cash 9,950 14,800
 Investment in marketable
 securities, net 2,664 14,223
 Accounts receivable, net 43,275 31,751
 Inventory 6,450 5,096
 Prepaid expenses and other 7,504 6,935
 Deferred taxes 11,429 5,956
 -------- --------
 Total current assets 110,505 99,170


 Property, equipment and software, net 23,156 17,875
 Goodwill and other intangible
 assets, net 74,482 66,283
 Long-term investments and other 4,761 6,727
 -------- --------
 Total assets $212,904 $190,055
 ======== ========




 LIABILITIES


 Current liabilities:
 Current portion of long-term debt $ 5,282 $ 4,436
 Current portion of unearned revenue 10,541 9,038
 Other current liabilities 53,403 35,043
 -------- --------
 Total current liabilities 69,226 48,517


 Long-term debt 38,226 80,001
 Other long-term liabilities 5,784 12,271
 -------- --------
 Total liabilities 113,236 140,789
 -------- --------
 Cumulative redeemable preferred stock 1,100 1,100
 -------- --------


 STOCKHOLDERS' EQUITY


 Total stockholders' equity 98,568 48,166
 -------- --------
 Total liabilities and
 stockholders' equity $212,904 $190,055
 ======== ========


CONTACT: Affiliated Computer Services Inc., Dallas

Pete J. McLaughlin, Director, Corporate Communications

214/841-6285

or

Mark A. King, Chief Financial Officer, 214/841-8007
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