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SPS REPORTS STRONG INCREASE IN SECOND QUARTER NET INCOME

 SPS REPORTS STRONG INCREASE IN SECOND QUARTER NET INCOME
 RIVERWOODS, Ill., July 22 /PRNewswire/ -- SPS Transaction Services,


Inc. (NYSE: PAY) today reported consolidated net operating revenues for the three months ended June 30, 1992, of $39.6 million, up 31 percent from $30.2 million in the second quarter of 1991. Net income for the quarter reached $4.2 million, a 190 percent increase over $1.5 million for the same period last year. Net income per share for the three-month period was 31 cents compared to 15 cents in the prior year's second quarter.
 Net operating revenues for the six months ended June 30 were $77.2 million, up 29 percent from $59.8 million for the same period last year. Net income for the six-month period was up 172 percent to $8.7 million in 1992 from $3.2 million in 1991. Earnings per share were 71 cents compared to 32 cents for the same period in 1991.
 Robert L. Wieseneck, president and chief executive officer, attributed the company's second quarter performance to greater volume in its electronic transaction processing business, with the number of point-of-sale transactions processed increasing 35 percent, and continued growth in the private label credit card programs administered by the company.
 Wieseneck also cited improved collection results, operational cost control and increased revenues from sales and servicing of point-of- sale terminals as factors affecting second quarter performance.
 Wieseneck also announced the execution of a long-term agreement with Discover Card Services, Inc. effective Aug. 1, 1992, to provide access to certain applications of the SPS point-of-sale transaction processing system which will assist Discover Card in its marketing of third party transaction processing services. The Discover Card agreement will result in revenues to SPS of at least $3.1 million during the first year of the agreement, with increasing guaranteed minimum annual revenues for each of the next four years of the agreement's eight-year term.
 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 Financial Services Group, Inc., completed an initial public offering of approximately 26 percent of its shares in March 1992.
 SPS TRANSACTION SERVICES
 Consolidated Statements Of Income
 (in thousands, except per share data, unaudited)
 Period ended June 30 Three months Six months
 1992 1991 1992 1991
 Processing and
 service revenues $32,840 $25,855 $64,096 $50,867
 Merchant discount
 revenues 3,208 3,023 5,792 5,389
 Total 36,048 28,878 69,888 56,256
 Interest income 10,042 6,782 18,724 13,135
 Interest expense 3,621 2,848 7,407 5,531
 Net interest income 6,421 3,934 11,317 7,604
 Provision for
 loan losses 2,883 2,563 4,048 4,019
 Net credit income 3,538 1,371 7,269 3,585
 Net operating revenues 39,586 30,249 77,157 59,841
 Salaries and employee
 benefits 10,931 9,471 21,895 18,480
 Processing and service
 expenses 11,897 11,014 23,246 21,750
 Other expenses 9,785 7,327 17,547 14,359
 Total operating
 expenses 32,613 27,812 62,688 54,589
 Income before
 income taxes 6,973 2,437 14,469 5,252
 Income tax expense 2,747 982 5,732 2,037
 Net income $ 4,226 $ 1,455 $ 8,737 $ 3,215
 Earnings per
 common share $0.31 $0.15 $0.71 $0.32
 Weighted average common
 shares outstanding 13,450 10,000 12,275 10,000
 -0- 7/22/92
 /CONTACT: Larry Myatt, 708-405-3400, for SPS Transaction Services/
 (PAY) CO: SPS Transaction Services, Inc. ST: Illinois IN: SU: ERN


LR -- NY083 -- 1990 07/22/92 13:56 EDT
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Publication:PR Newswire
Date:Jul 22, 1992
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