Western Union Trends Improve; Concord Integration on Track
DENVER, April 22 /PRNewswire-FirstCall/ -- First Data Corp. (NYSE: FDC), a
global leader in electronic commerce and payment services, today reported
first quarter earnings per share (EPS) from continuing operations of $0.61, up
from $0.38 in the prior year first quarter. First quarter revenue increased
14% to $2.3 billion. Net income from continuing operations was $480 million
and cash flow generation remained strong.
First quarter EPS included $0.21 from the gain on the sale of Global Cash
Access (GCA), which was partially offset by $0.02 of restructuring charges
related to eONE Global and $0.01 related to other restructuring and impairment
charges. Concord integration expenses impacted EPS by $0.01.
Included in the operating results was a $0.02 per share non-cash charge
related to the adjustment of certain accounting entries that originated
primarily in 2002 and 2003 with respect to the TeleCheck business. Due to
these accounting entries and other issues at TeleCheck, the company is
undertaking a comprehensive review of TeleCheck, including its systems and its
strategic fit.
"We are off to a good start in 2004, especially with the trends at Western
Union," said Charlie Fote, chairman and chief executive officer, First Data.
"During the quarter, we closed the Concord acquisition, made measurable
progress against our integration plans and are enthusiastic about the progress
with bank renewals at STAR(R)."
Operating Highlights
* Payment Services grew revenue 14% and operating profits 17%.
* Merchant Services grew revenue 28% and operating profits 25%.
* Card Issuing Services grew revenue 4% and operating profits 31%.
* The gain from the sale of GCA was recorded in other income, and the
cash proceeds of $436 million further strengthened First Data's cash
position.
* Union Bank of California renewed its contract for STAR network access,
ATM processing and signature debit processing services.
* In April, First Data International finalized its acquisition of
Cashcard Australia Limited, a leading merchant ATM deployer in the
Australian marketplace.
* In the first quarter, the company repurchased 19.1 million shares of
stock for $808 million at an average price of $42.34 per share. The
remaining authorization for stock repurchases is $338 million.
Business Segment Highlights
Following the Concord acquisition, First Data modified its segments. The
changes are described below. Prior year segment data has been reclassified to
reflect the new segment presentation, which is detailed in the accompanying
schedules.
Concord's former "Network Services" businesses -- primarily STAR network
access and processing services -- have been split between the Merchant
Services segment (when revenues are driven by acquiring activities) and the
Card Issuing Services segment (when revenues are driven by issuer activities).
Concord's former "Payments Services" businesses -- primarily related to
merchant acquiring services -- have been moved into the Merchant Services
segment. Additionally, Concord's payments-related transportation services and
prepaid card business, which were formerly reported in Concord's Payment
Services segment, have been moved to First Data's Payment Services segment.
The eONE Global businesses, formerly reported as the Emerging Payments
segment, and royalty income which was formerly a part of Merchant Services,
are now included in "All Other and Corporate."
First Data Technologies (FDT), a division providing data processing
services to several clients that was previously reported in the Payment
Services segment, has been moved to Card Issuing Services as part of its
outsourcing business.
Concord's revenue for 35 days was $128 million. It added revenue of
$92 million to Merchant Services, $30 million to Card Issuing Services and
$6 million to Payment Services. In the quarter, the reclassification of
royalty income resulted in the movement of $2 million of revenue from Merchant
Services to "All Other and Corporate." The reclassification of FDT resulted
in a movement of $13 million of revenue from Payment Services to Card Issuing
Services.
Payment Services delivered first quarter revenue of $958 million, 14%
growth over prior year. Operating profits increased 17% to $329 million, and
margins remained strong at 34%.
Western Union, which represents more than 80% of Payment Services'
revenue, grew consumer-to-consumer money transfer transactions 20%, with
international transactions and revenue each growing 25%. Transactions to
Mexico increased 15%, while consumer-to-business and prepaid transactions grew
9% and 17%, respectively. Agent locations increased 18% from the same period
last year to more than 188,000.
Merchant Services grew first quarter revenue 28% from the same period last
year to $744 million, and operating profits increased 25% to $154 million.
Margins remained strong at 21%. Merchant transactions grew 45% for the
quarter.
Card Issuing Services posted first quarter revenue of $558 million, a 4%
year-over-year increase and operating profits of $98 million, a 31% increase.
During the quarter nearly 29 million accounts for seven customers were
converted on schedule. The pipeline of accounts to be converted is
approximately 41 million. All accounts are scheduled to be converted before
the end of the year. As of March 31, accounts on file were 398 million
including the 18 million debit card accounts from Concord.
Conference Call and Webcast
First Data will hold a conference call today at 8:00 a.m. EDT to discuss
the company's first quarter results. Charlie Fote, chairman and chief
executive officer; Kim Patmore, executive vice president and chief financial
officer; and David Banks, senior vice president of Investor Relations will
host the call. The call will be open to the public. The conference call can
be accessed by calling 888-831-9087 in the U.S. or 312-470-7381
internationally and passcode: FDC. This call also will be broadcast on the
company's Web site at http://www.firstdata.com. Interested parties are encouraged to
click on the webcast link 10-15 minutes prior to the start of the conference
call.
A replay of the conference call and the webcast will be available one hour
after the call concludes through 5:00 p.m. EDT April 29, 2004. The replay of
the call is available at 800-867-1933 in the U.S. or 402-280-1686
internationally (no passcode required), and a replay of the webcast is
available at http://www.firstdata.com.
Please note: All statements made by First Data officers on this call are
the property of First Data and subject to copyright protection. Recording of
the call is prohibited without the express written consent of First Data.
About First Data:
First Data Corp. (NYSE: FDC), with global headquarters in Denver, helps
power the global economy. As a leader in electronic commerce and payment
services, First Data serves approximately 3.5 million merchant locations,
1,400 card issuers and millions of consumers, making it easy, fast and secure
for people and businesses around the world to buy goods and services using
virtually any form of payment. With more than 30,000 employees worldwide, the
company provides credit, debit, private-label, smart and stored-value card
issuing and merchant transaction processing services; Internet commerce
solutions; money transfer services; money orders; and check guarantee and
verification services. The STAR(R) Network offers PIN-secured debit
acceptance at one million point-of-sale locations and 264,000 ATMs nationwide.
First Data also offers a variety of payment services to businesses around the
world including those in the United Kingdom, Australia, Canada, Japan, Mexico,
Spain, Panama, Brazil, China, the Netherlands, the Middle East and Germany.
Its Western Union and Orlandi Valuta money transfer networks include
approximately 188,000 agent locations in more than 195 countries and
territories. Visit http://www.firstdata.com for more information.
Notice to Investors, Prospective Investors and the Investment Community
Cautionary Information Regarding Forward-Looking Statements
Statements in this press release regarding First Data Corporation's business
which are not historical facts, including the revenue and earnings
projections, are "forward-looking statements." All forward-looking statements
are inherently uncertain as they are based on various expectations and
assumptions concerning future events and they are subject to numerous known
and unknown risks and uncertainties which could cause actual events or results
to differ materially from those projected. Important factors upon which the
Company's forward-looking statements are premised include: (a) no
unanticipated developments that delay or negatively impact the integration of
Concord EFS, Inc. according to the Company's integration plans, including its
plans to integrate IT systems, eliminate duplicative overhead and costs, and
retain customers and critical employees; (b) the divestiture of NYCE
Corporation within the time period allowed in the Company's agreement with the
Department of Justice on terms reasonable to the Company; (c) continued growth
at rates approximating recent levels for card-based payment transactions,
consumer money transfer transactions and other product markets; (d) successful
conversions under service contracts with major clients; (e) renewal of
material contracts in the Company's business units consistent with past
experience; (f) timely, successful and cost-effective implementation of
processing systems to provide new products, improved functionality and
increased efficiencies; (g) successful and timely integration of significant
businesses and technologies acquired by the Company and realization of
anticipated synergies; (h) continuing development and maintenance of
appropriate business continuity plans for the Company's processing systems
based on the needs and risks relative to each such system; (i) absence of
consolidation among client financial institutions or other client groups which
has a significant impact on FDC client relationships and no material loss of
business from significant customers of the Company; (j) achieving planned
revenue growth throughout the Company, including in the merchant alliance
program which involves several joint ventures not under the sole control of
the Company and each of which acts independently of the others, and successful
management of pricing pressures through cost efficiencies and other cost
management initiatives; (k) successfully managing the credit and fraud risks
in the Company's business units and the merchant alliances, particularly in
the context of the developing e-commerce markets; (l) anticipation of and
response to technological changes, particularly with respect to e-commerce;
(m) attracting and retaining qualified key employees; (n) no unanticipated
changes in laws, regulations, credit card association rules or other industry
standards affecting FDC's businesses which require significant product
redevelopment efforts, reduce the market for or value of its products or
render products obsolete; (o) continuation of the existing interest rate
environment so as to avoid increases in agent fees related to Payment
Services' products and increases in interest on the Company's borrowings; (p)
absence of significant changes in foreign exchange spreads on retail money
transfer transactions, particularly in high-volume corridors, without a
corresponding increase in volume or consumer fees; (q) continued political
stability in countries in which Western Union has material operations; (r)
implementation of Western Union agent agreements with governmental entities
according to schedule and no interruption of relations with countries in which
Western Union has or is implementing material agent agreements; (s) no
unanticipated developments relating to previously disclosed lawsuits,
investigations or similar matters; (t) no catastrophic events that could
impact the Company's or its major customer's operating facilities,
communication systems and technology or that has a material negative impact on
current economic conditions or levels of consumer spending; (u) no material
breach of security of any of our systems; and (v) successfully managing the
potential both for patent protection and patent liability in the context of
rapidly developing legal framework for expansive software patent protection.
FIRST DATA CORPORATION
SUMMARY FINANCIAL HIGHLIGHTS
(Unaudited)
(In millions, except per share amounts)
Three Months Ended March 31,
2004 2003 Change
Total revenues $2,258.4 $1,974.4 14%
Income before income taxes, minority
interest, equity earnings in affliates
and discontinued operations $696.0 $394.2 77%
Net income
Income from continuing operations $479.9 $290.8 65%
Discontinued operations (a) 3.6 1.8 100%
$483.5 $292.6 65%
Earnings per common share - diluted
Continuing operations $0.61 $0.38 61%
Discontinued operations 0.00 0.01
$0.61 $0.39 56%
Weighted average shares outstanding -
diluted 792.7 760.0 4%
Net income margins
Continuing operations 21.2% 14.7% 6.5 pts
Discontinued operations 0.2% 0.1%
21.4% 14.8% 6.6 pts
(See accompanying notes)
FIRST DATA CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In millions, except per share amounts)
Three Months Ended March 31,
2004 2003 Change
Revenues:
Transaction and processing service fees:
Payment Services $853.1 $749.4 14%
Merchant Services 574.9 453.6 27%
Check Verification and Guarantee
Services 97.8 92.4 6%
Card Issuing Services 379.0 343.8 10%
All other 39.2 36.5 7%
Investment income, net 49.9 29.9 67%
Professional services 22.6 26.3 -14%
Software licensing and maintenance 15.7 11.2 40%
Product sales and other 76.2 68.8 11%
Reimbursable postage and other 150.0 162.5 -8%
2,258.4 1,974.4 14%
Expenses:
Cost of services 1,183.4 1,018.0 16%
Cost of products sold 46.9 44.4 6%
Selling, general and administrative 356.8 331.6 8%
Reimbursable postage and other 150.0 162.5 -8%
Other operating expenses:
Restructuring, net 32.2 -- NM
Impairments 5.7 -- NM
Other 25.0 -- NM
1,800.0 1,556.5 16%
Operating profit 458.4 417.9 10%
Other income (expense):
Interest income 5.4 1.3 315%
Interest expense (31.1) (24.9) 25%
Investment gains and (losses) (1.8) (0.1) NM
Divestitures, net 265.1 -- NM
237.6 (23.7) NM
Income before income taxes, minority
interest, equity earnings in affiliates
and discontinued operations 696.0 394.2 77%
Income taxes 218.6 109.0 101%
Minority interest (28.3) (23.4) 21%
Equity earnings in affiliates 30.8 29.0 6%
Income from continuing operations 479.9 290.8 65%
Discontinued operations: (a)
Income from discontinued operations,
net of taxes of $2.7 and $2.0,
respectively 3.6 1.8 100%
Net income $483.5 $292.6 65%
Earnings per share from continuing
operations:
Basic $0.61 $0.39 56%
Diluted $0.61 $0.38 61%
Earnings per share:
Basic $0.62 $0.39 59%
Diluted $0.61 $0.39 56%
Weighted average shares outstanding:
Basic 780.8 750.2 4%
Diluted 792.7 760.0 4%
Shares outstanding at end of period 872.5 747.9 17%
(See accompanying notes)
FIRST DATA CORPORATION
SUMMARY SEGMENT DATA
(Unaudited)
(In millions)
Three Months Ended March 31,
2004 2003 Change
Revenues: (i)
Payment Services $958.2 $839.7 14%
Merchant Services 744.1 580.8 28%
Card Issuing Services 558.0 534.4 4%
Subtotal segment revenues 2,260.3 1,954.9 16%
All Other and Corporate 64.6 77.0 -16%
2,324.9 2,031.9 14%
Adjustments for items included in
segment and All Other
and Corporate revenue: (b)
Equity earnings in affiliates (c) (38.7) (36.7) 5%
Interest income (5.4) (1.3) 315%
Divested operations (d) 58.1 63.8 -9%
Eliminations (e) (80.5) (83.3) -3%
Consolidated revenue $2,258.4 $1,974.4 14%
Operating profit: (f) (i)
Payment Services $328.6 $281.0 17%
Merchant Services 153.8 122.9 25%
Card Issuing Services 97.9 75.0 31%
Subtotal segment operating
profit 580.3 478.9 21%
All Other and Corporate (18.1) (5.3) -242%
562.2 473.6 19%
Adjustments for items included in
segment and All Other and
Corporate operating profit: (b)
Equity earnings in affiliates (c) (30.8) (29.0) 6%
Divested operations (d) 11.2 6.9 62%
Minority interest from segment
operations (g) 34.4 23.4 47%
Eliminations (e) (50.3) (55.7) -10%
Interest expense (31.1) (24.9) 25%
Items excluded from segment
operations (h) 200.4 (0.1) NM
Income before income taxes,
minority interest, equity earnings
in affiliates and discontinued
operations $696.0 $394.2 77%
Depreciation & Amortization:
Payment Services $24.8 $25.2 -2%
Merchant Services 70.2 54.5 29%
Card Issuing Services 57.8 49.4 17%
All Other and Corporate 7.1 7.2 -1%
Divested operations 2.7 3.5 -23%
Consolidated depreciation &
amortization $162.6 $139.8 16%
(See accompanying notes)
FIRST DATA CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
(a) Discontinued operations consist of NYCE.
(b) Reconciles the total segment and All Other and Corporate revenue to
consolidated revenue or total segment and All Other and
Corporate operating profit to income before income taxes, minority
interest, equity earnings in affiliates and discontinued
operations as reported on the Consolidated Statements of Income.
(c) Excludes equity losses that were recorded in expense of $0.4 million
and $0.9 million for the three months ended March 31, 2004 and 2003,
respectively, and the amortization related to the excess of the
investment balance over the Company's proportionate share of the
investee's net book value for 2004 and 2003.
(d) The Company sold its 67% owned subsidiary, Global Cash Access,
("GCA") in March 2004. Revenue and operating profit associated with
GCA is excluded from segment results. The Merchant Services segment
revenue and operating profit were reclassified for 2003 to exclude
results from GCA.
(e) Represents elimination of adjustment to record Payment Services
segment revenues and operating profit on a pretax equivalent basis
and elimination of intersegment revenue.
(f) Segment and All Other and Corporate operating profit includes
interest income, minority interest from segment operations and
equity earnings in affiliates net of related amortization expense
and the allocation of corporate overhead. Segment and All Other and
Corporate operating profit excludes items discussed in note (h)
below and interest expense.
(g) Minority interest from segment operations excludes minority interest
attributable to items excluded from segment operations
discussed in note (h) below.
(h) Items, other than interest expense, excluded from segment operations
consist of the following:
Three months
ended March 31,
2004 (in millions) 2004
Restructuring, net $(32.2) Restructuring charges of $32.3 million
were recorded in the three months,
offset with reversals of excess
restructuring accruals of $0.1
million.
Impairments (5.7) Impairment charges were recorded for
the three months related to software
and goodwill as a result of the eONE
Global business restructuring.
Investment losses, net (1.8) Net investment losses of $1.8 million
were recorded in the three months
related to e-commerce businesses and
strategic investments.
Divestitures, net 265.1 Divestitures related to the gain on
the sale of GCA and the release of
$1.3 million of divestiture accruals
related to the expiration of certain
contingencies.
Other (25.0) Other related to adjustments for
Telecheck accounting entries that
originated primarily during 2002 and
2003.
200.4
Minority interest 6.1 Minority interest expense related to
the above charges associated with eONE
Global.
$206.5
Three months
ended March 31,
2003 (in millions) 2003
Investment loss $(0.1) Investment loss of $0.1 million
related to e-commerce businesses.
(0.1)
Minority interest --
$(0.1)
(i) See accompanying Summary Segment Data reclassified for segment
realignment and GCA divested operations.
NM = Not meaningful.
FIRST DATA CORPORATION
FINANCIAL TRANSACTION PROCESSING
KEY INDICATORS
(Unaudited)
At March 31, 2004 2003 Change
Card accounts on file (millions)
Domestic cards (a) 365.4 297.0 23%
International cards 32.9 27.2 21%
Total 398.3 324.2 23%
For the Three-Months Ended March 31:
Payment services transactions
(millions):
Consumer-to-consumer money
transfer (b) 21.6 18.0 20%
Branded consumer-to-business (c) 36.5 33.4 9%
North America merchant transactions
(millions) (d) 3,825.8 2,646.7 45%
North America issuer transactions
(millions) (e) 1,164.3 582.5 100%
(a) Domestic card accounts on file at March 31, 2004 include 17.6 million
accounts processed by Concord.
(b) Consumer-to-consumer money transfer transactions include North America
and international consumer money transfer services.
(c) Branded consumer-to-business transactions include Quick Collect,
EasyPay, PhonePay, Paymap's Just-in-Time and Equity Accelerator
services, and E Commerce Group's Speedpay transactions directly
processed by E Commerce Group.
(d) North America merchant transactions include acquired VISA and
MasterCard credit and signature debit, PIN-debit, electronic benefits
transactions ("EBT"), and processed-only or gateway customer
transactions at the point of sale ("POS"). North America merchant
transactions also include acquired ATM transactions, gateway
transactions at ATMs, and STAR PIN-debit POS transactions received
from other acquirers. 2004 amounts include 648.0 million transactions
processed by Concord since the acquisition date of February 26, 2004.
Prior year historical FDC amounts have been restated to conform to the
current year presentation to include EBT.
(e) North America issuer transactions include VISA and MasterCard
signature debit, STAR ATM, STAR PIN-debit POS, and ATM and PIN-debit
POS gateway transactions. 2004 amounts include 476.2 million
transactions processed by Concord since the acquisition date of
February 26, 2004.
FIRST DATA CORPORATION
FINANCIAL TRANSACTION PROCESSING
North America issuer transactions (millions)
(Unaudited)
Three Three Three Three Twelve
Months Ended Months Ended Months Ended Months Ended Months Ended
3/31/2003(a) 6/30/2003(a) 9/30/2003(a) 12/31/2003(a) 12/31/2003(a)
582.5 648.7 670.3 704.4 2,605.9
(a) North America issuer transactions include VISA and MasterCard
signature debit and ATM. Amounts presented above are based on First
Data historical transactions and do not include historical Concord
transactions.
FIRST DATA CORPORATION
SUMMARY SEGMENT DATA
(reclassified for segment realignment & GCA divested operations)
(Unaudited)
(in millions)
Twelve Three Three Three Three
Months Months Months Months Months
Ended Ended Ended Ended Ended
12/31/2001(a) 03/31/2002 06/30/2002 09/30/2002 12/31/2002
Revenues:
Payment
Services (b) $2,659.1 $706.9 $767.3 $808.4 $849.6
Merchant
Services
(c)(d) 1,923.5 512.8 596.9 593.3 627.8
Card Issuing
Services (b) 2,006.4 462.6 472.5 495.3 536.5
Subtotal
segment
revenues 6,589.0 1,682.3 1,836.7 1,897.0 2,013.9
All Other and
Corporate
(d)(e) 233.0 68.1 67.2 70.3 75.7
6,822.0 1,750.4 1,903.9 1,967.3 2,089.6
Adjustments for
items included
in segment and
All Other and
Corporate
revenue: (f)
Equity earnings
in affiliates (225.8) (30.4) (34.0) (40.0) (39.0)
Interest income (26.4) (1.6) (1.2) (1.1) (1.1)
Divested
operations (c) 275.2 64.2 65.2 66.4 63.3
Eliminations (242.8) (71.9) (78.1) (79.8) (89.5)
Consolidated
revenue $6,602.2 $1,710.7 $1,855.8 $1,912.8 $2,023.3
Operating profit:
Payment
Services (b) $860.2 $230.8 $245.7 $285.2 $286.4
Merchant
Services (c)(d) 583.7 113.8 176.9 169.2 179.1
Card Issuing
Services (b) 366.6 83.9 90.4 96.6 101.1
Subtotal segment
operating
profit 1,810.5 428.5 513.0 551.0 566.6
All Other and
Corporate (d)(e) (17.8) (10.9) (11.9) (19.4) (4.9)
1,792.7 417.6 501.1 531.6 561.7
Adjustments for
items included
in segment and
All Other and
Corporate
operating profit: (g)
Equity earnings
in affiliates (208.6) (24.1) (28.0) (33.6) (32.9)
Divested
operations (c) 27.4 8.7 8.6 9.7 7.6
Minority interest
from segment
operations 37.2 21.5 28.1 24.3 27.7
Eliminations (175.9) (51.0) (53.9) (54.2) (58.2)
Interest expense (117.1) (29.2) (26.9) (27.0) (27.7)
Items excluded
from segment
operations (h) (191.5) (14.6) (31.4) -- (23.0)
Income before
income taxes,
minority interest,
equity earnings in
affiliates,
discontinued
operations, and
cumulative effect
of a change in
accounting
principle $1,164.2 $328.9 $397.6 $450.8 $455.2
Twelve Three Three Three Three Twelve
Months Months Months Months Months Months
Ended Ended Ended Ended Ended Ended
12/31 03/31 06/30 09/30 12/31 12/31
2002 2003 2003 2003 2003 2003
Revenues:
Payment
Services (b) $3,132.2 $839.7 $883.1 $921.8 $958.9 $3,603.5
Merchant
Services
(c)(d) 2,330.8 580.8 680.5 667.6 748.6 2,677.5
Card Issuing
Services (b) 1,966.9 534.4 520.1 503.4 531.7 2,089.6
Subtotal
segment
revenues 7,429.9 1,954.9 2,083.7 2,092.8 2,239.2 8,370.6
All Other
and
Corporate
(d)(e) 281.3 77.0 60.7 70.4 68.8 276.9
7,711.2 2,031.9 2,144.4 2,163.2 2,308.0 8,647.5
Adjustments
for items
included in
segment and
All Other and
Corporate
revenue: (f)
Equity
earnings in
affiliates (143.4) (36.7) (45.9) (44.0) (44.0) (170.6)
Interest
income (5.0) (1.3) (1.4) (2.1) (2.7) (7.5)
Divested
operations(c) 259.1 63.8 66.6 71.0 68.3 269.7
Eliminations (319.3) (83.3) (84.7) (85.0) (85.9) (338.9)
Consolidated
revenue $7,502.6 $1,974.4 $2,079.0 $2,103.1 $2,243.7 $8,400.2
Operating profit:
Payment
Services (b) $1,048.1 $281.0 $304.3 $321.2 $321.6 $1,228.1
Merchant
Services
(c)(d) 639.0 122.9 194.1 180.9 225.3 723.2
Card Issuing
Services(b) 372.0 75.0 74.1 74.8 86.0 309.9
Subtotal
segment
operating
profit 2,059.1 478.9 572.5 576.9 632.9 2,261.2
All Other and
Corporate
(d)(e) (47.1) (5.3) (25.1) (22.2) (24.7) (77.3)
2,012.0 473.6 547.4 554.7 608.2 2,183.9
Adjustments for
items included
in segment
and All Other
and Corporate
operating
profit: (g)
Equity
earnings in
affiliates (118.6) (29.0) (38.8) (35.9) (35.0) (138.7)
Divested
operations(c) 34.6 6.9 11.7 11.4 10.5 40.5
Minority
interest
from segment
operations 101.6 23.4 29.7 31.0 37.9 122.0
Eliminations (217.3) (55.7) (57.1) (55.5) (54.5) (222.8)
Interest
expense (110.8) (24.9) (24.1) (27.7) (30.4) (107.1)
Items excluded
from segment
operations(h) (69.0) (0.1) (0.1) (33.0) (5.8) (39.0)
Income before
income taxes,
minority interest,
equity earnings
in affiliates,
discontinued
operations,
and cumulative
effect of a
change in
accounting
principle $1,632.5 $394.2 $468.7 $445.0 $530.9 $1,838.8
(a) The 2001 results are on a pro forma basis as if SFAS 142 was
effective for 2001 and goodwill amortization was ceased.
(b) Payment Services and Card Issuing Services were reclassified to
reflect the results of data center services provided to outside
customers as part of Card Issuing Services. The associated revenue
for the first quarter of 2004 was $13.1 million.
(c) Merchant Services was reclassified to reflect Global Cash Access as a
divested operation.
(d) Merchant Services and All Other and Corporate were reclassified to
reflect the results of royalty income as part of All Other and
Corporate. The associated revenue for the first quarter of 2004 was
$2.3 million.
(e) All Other and Corporate was reclassified to reflect the results of
including the operations previously included in the Emerging Payments
segment as part of All Other and Corporate. The associated revenue
for the first quarter of 2004 was $38.9 million.
(f) Adjustments for items included in segment and All Other and Corporate
revenue that are not reflected in consolidated revenue include equity
earnings from affiliates, divested operations, interest income and
eliminations.
(g) Adjustments for items included in segment and All Other and Corporate
operating profit that are not reflected in income before income taxes,
minority interest, equity earnings in affiliates, discontinued
operations and cumulative effect of a change in accounting principle.
(h) Items excluded from segment operations consist of restructuring, net,
impairments, other, investment gains and (losses), net, and
divestitures, net.
FDC-1
SOURCE First Data Corp.
 back to top
Related links:
http://www.firstdata.com
CONTACT:
Investor Relations, David Banks,
+1-303-967-8057, david.banks@firstdata.com, or Media Relations,
Staci Busby, +1-303-967-7188, staci.busby@firstdata.com, both of
First Data Corp.
|
