Printer Friendly

FIRST USA REPORTS RECORD EARNINGS FOR THE FIRST FISCAL QUARTER OF 1993

FIRST USA REPORTS RECORD EARNINGS FOR THE FIRST FISCAL QUARTER OF 1993
 DALLAS, Oct. 22 /PRNewswire/ -- First USA, Inc. (NYSE: FUS) today reported record net income of $7.1 million, or $0.27 per share, for the 1993 first fiscal quarter ended Sept. 30, 1992, compared with net income of $2.4 million, or $0.07 per share, for the first fiscal quarter of 1992.
 Net income for the September 1992 quarter of $0.27 per share was up 17.4 percent from $0.23 per share in the June quarter. Pre-tax income for the September 1992 quarter was up 46.8 percent over the June quarter due primarily to strong growth in credit card loans, improved interest margin, and lower net credit losses. This increase in pre-tax income more than offset an increase in the effective federal tax rate to 35.5 percent from 15.7 percent.
 "We are extremely pleased with the strength of our earnings and the growth in new accounts and merchant processing volume," said John C. Tolleson, chairman and chief executive officer. "We continue to be optimistic about our future growth in this highly competitive industry."
 Net income is after a non-cash charge related to the amortization of the customer base intangible resulting from the 1989 buy-out of First USA. The non-cash charge was $13.3 million for the quarter ended Sept. 30, 1992, $13.7 million for the prior-year quarter, and $13.4 million for the period ended June 30, 1992. The intangible will be fully amortized by August 1997.
 Key Operating Measures
 Managed credit card loans at Sept. 30, 1992, were $2.5 billion, up 20.6 percent from Sept. 30, 1991. Average managed credit card loans increased 17.6 percent from the period ended Sept. 30, 1991, and percent from the June 1992 quarter.
 During the quarter ended Sept. 30, 1992, First USA opened 166,670 new credit card accounts, an increase of 42.1 percent over the same period in fiscal 1992 and 7.3 percent over the June 1992 quarter.
 Credit card charge volume on a managed basis was $1.0 billion during the most recent quarter, up 38.3 percent from the quarter ended September 1991, and an increase of 12.5 percent from the prior quarter.
 The managed net interest margin increased 28.2 percent to 7.23 percent during the September 1992 quarter from 5.64 percent during the same quarter in fiscal 1992 and from 6.72 percent for the quarter ended June 30, 1992.
 The managed net credit loss rate declined to 3.71 percent for the quarter ended Sept. 30, 1992, from 3.85 percent for the quarter ended Sept. 30, 1991, and from 4.07 percent in the fourth quarter of fiscal 1992. The managed delinquency rate declined to 3.86 percent at Sept. 30, 1992, First USA's lowest delinquency rate in the past six years. This rate is down from 5.19 percent at Sept. 30, 1991, and from 3.88 percent at June 30, 1992.
 The company reported that merchant processing volume grew to $2.2 billion, an increase of 79.4 percent compared with the period ended Sept. 30, 1991, and 21.0 percent compared with the June 1992 quarter.
 Also during the quarter, First USA completed a $350 million securitization of credit card receivables with an average life of 3.5 years and an average coupon rate of 5.27 percent.
 First USA, Inc. is a financial services company specializing in the credit card business and is among the largest providers of Visa and MasterCard services in the nation. First USA, Inc.'s two principal operating units are First USA Bank and First USA Merchant Services, Inc. First USA Bank provides Visa and MasterCard services nationwide and had 3.3 million credit cards issued at Sept. 30, 1992. First USA Merchant Services, Inc. processes merchant credit card transactions for more than 150,000 merchant locations.
 FIRST USA, INC. AND SUBSIDIARIES
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands, except per share data)
 FIRST QUARTER FISCAL 1993 & 1992
 September 30 Percent
 1992 1991 Change
 For the Quarter
 Earnings
 Income before income
 taxes $ 11,894 $ 3,558 234.3
 Net income $ 7,081 $ 2,402 194.8
 Net income per share $ 0.27 $ 0.07 285.7
 Financial ratios
 First USA, Inc.
 Net interest margin
 (managed) 7.23% 5.64% 28.2
 Return on assets 1.11% 0.42% 164.3
 Return on
 stockholders' equity 18.76% 11.94% 57.1
 First USA Bank
 Net interest margin
 (managed) 8.02% 6.81% 17.8
 Return on assets 2.80% 2.27% 23.3
 Return on
 stockholder's equity 33.05% 24.02% 37.6
 Credit card statistics
 Average loans
 (managed) $2,382,780 $2,026,907 17.6
 Charge volume (managed) $1,031,361 $ 745,804 38.3
 New accounts 166,670 117,311 42.1
 Merchant statistics
 Sales volume $2,152,219 $1,199,853 79.4
 Items processed 41,455,000 26,371,000 57.2
 At Quarter End
 Credit card loans (managed) $2,471,480 $2,049,577 20.6
 Securitized loans $ 891,482 $ 550,000 62.1
 Credit card loans $1,579,998 $1,499,577 5.4
 Total assets $2,573,278 $2,293,333 12.2
 Delinquency rate (managed) 3.86 pct. 5.19 pct. (25.6)
 Common Stock
 Weighted average common
 and common equivalent
 shares 26,191,476 21,697,539
 Closing price per share at
 September 30, 1992 $ 13.00
 Dividends declared $ 0.025
 (A) Managed Loan Data includes loans sold in credit card securitization transactions and the company's on-balance sheet loan portfolio.
 -0- 10/22/92
 /CONTACT: George A. McCane of First USA, Inc., 214-746-8547/
 (FUS) CO: First USA, Inc. ST: Texas IN: FIN SU: ERN


PS -- NY035 -- 3397 10/22/92 10:03 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 22, 1992
Words:969
Previous Article:CHASE INFOSERV'S 'IMPACT' SYSTEM REVOLUTIONIZES CORPORATE DESKTOP INVESTING
Next Article:UST DECLARES REGULAR QUARTERLY DIVIDEND
Topics:


Related Articles
FIRST TEAM SPORTS ANNOUNCES RECORD EARNINGS
FIRST TEAM SPORTS, INC. ANNOUNCES RECORD EARNINGS
PARAMOUNT COMMUNICATIONS REPORTS FISCAL 1993 FIRST QUARTER RESULTS
PARAMOUNT COMMUNICATIONS REPORTS FISCAL 1993 FIRST QUARTER RESULTS
FIRST TEAM SPORTS, INC., ANNOUNCES FIRST QUARTER EARNINGS
CF BANCORP ANNOUNCES RECORD QUARTER PROFITS
FIRST TEAM SPORTS ANNOUNCES FISCAL 1994 THIRD QUARTER RESULTS
VIRGINIA FIRST FINANCIAL CORPORATION ANNOUNCES EARNINGS
FIRST USA, INC. REPORTS 154 PERCENT INCREASE IN EARNINGS
VIRGINIA FIRST FINANCIAL CORPORATION REPORTS RESULTS AND DECLARES QUARTERLY DIVIDEND

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters