MEMPHIS, Tenn., April 26 /PRNewswire/ -- Concord EFS, Inc. (Nasdaq: CEFT)
today reported first quarter 1999 net income of $24.0 million or $0.18 diluted
earnings per share excluding one-time acquisition and restructuring charges of
$26.9 million, net of tax. Net income for the first quarter of 1998 was
$17.3 million or $0.13 diluted earnings per share. Excluding the charges, net
income increased 39% in the first quarter of 1999 when compared to the same
period of the prior year. Additionally, first quarter 1999 revenue was
$170.2 million, compared to $134.7 million in first quarter 1998, an increase
of 26%. The one-time acquisition and restructuring charges were incurred in
association with the merger of Concord EFS, Inc. and Electronic Payment
Services, Inc. Historical results include the results of Electronic Payment
Services, Inc. which was acquired by Concord EFS, Inc. on February 26, 1999
and accounted for as a pooling of interests.
Concord is a vertically-integrated electronic transaction processor,
providing transaction authorization, data capture, settlement and funds
transfer services to selected markets. Concord's primary activities include
providing credit, debit, check authorization and electronic benefits transfer
(EBT) processing services to supermarket, petroleum, convenience store and
other retailers; and providing gateway processing, ATM driving and MAC(R)
network access to the financial services industry. Concord also provides
electronic payment and payroll services to trucking companies, truck stops and
other niches of the market.
The following table presents selected consolidated financial data (in
thousands, except earnings per share) for the first quarter of 1999 and 1998.
First Quarter
1999
First Quarter First Quarter Excluding
1999 1998 Charges
Revenue $170,234 $134,666 $170,234
Cost of Operations 120,850 95,029 120,850
Selling General and
Administrative Expenses 12,368 13,100 12,368
Acquisition Expenses and
Restructuring Charges 34,810 -- --
Operating Income 2,207 26,537 37,016
Interest Income, Net 1,732 749 1,732
Income Taxes 6,807 9,937 14,715
Net Income (Loss) (2,868) 17,349 24,033
Basic Earnings (Loss)
Per Share ($0.02) $0.14 $0.19
Diluted Earnings (Loss)
Per Share ($0.02) $0.13 $0.18
This release may contain statements which may constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933,
as amended and Section 21E of the Securities Exchange Act of 1934, as amended.
Investors are cautioned that any such statements are not guarantees for future
performance and involve risks and uncertainties, and that actual results may
differ materially from those contemplated by such forward-looking statements.
Important factors currently known to management that could cause actual
results to differ materially from those in forward-looking statements include
significant fluctuations in interest rates, inflation, economic recession,
significant changes in the federal and state legal and regulatory environment,
successful implementation of the Company's Year 2000 compliance project, the
impact of the Company's recent acquisition of Electronic Payment Services,
Inc. on its business and the market for the Company's stock and competition in
the Company's markets. The Company undertakes no obligation to update or
revise forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future results over time.
SOURCE Concord EFS, Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/576550.html or fax,
800-758-5804, ext. 576550
CONTACT:
Edward A. Labry III of Concord EFS, Memphis,
901-371-8000
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