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National Processing Reports Third Quarter Financial Results

Friday 17 October 2003 13:45 CET | News

National Processing, has reported financial results for the third quarter and nine months ended September 30, 2003. Revenue for the third quarter of 2003 was $125.0 million, up 9% from 2002 third quarter revenue of $114.5 million.

Net income for the third quarter of 2003 was $14.3 million, or $0.27 per diluted share, up 13% and 12%, respectively, from comparable 2002 net income of $12.7 million, or $0.24 per diluted share. For the nine months ended September 30, 2003, revenue was $344.6 million, up 2% from $337.1 million in 2002. Net income for the nine months ended September 30, 2003 was $33.9 million, or $0.65 per diluted share, both down 8%, from comparable 2002 net income of $36.9 million, or $0.70 per diluted share. Net income for the nine months ended September 30, 2003 included after-tax restructuring charges of $0.8 million related to severance for technology personnel and a loss on the sale of 14 regional sales offices. Net income for the nine months ended September 30, 2002 included an after-tax restructuring charge of $2.4 million related to the closure of the Companys Mexican operations. Net income for the quarter and nine months ended September 30, 2002 also included after-tax expenses of $2.0 million related to a separation agreement with the former CEO. Merchant Card Services transaction and dollar volume increased to record levels for the third quarter and year-to-date periods. Merchant Card Services transactions processed were 1.1 billion for the quarter and 3.1 billion year-to-date, representing increases of 11% and 9%, respectively, over comparable 2002 volume. Merchant Card Services dollar volume processed was $43.9 billion for the quarter and $125.6 billion year-to-date, representing increases of 5% and 1%, respectively, over comparable 2002 volumes. The dollar volume processed has trailed transaction growth primarily as a result of the Companys initiative to exit merchant processing for airlines, which have a large average ticket per transaction. The Companys balance sheet remained strong. As of September 30, 2003, the Company had $254 million of cash and cash equivalents with no debt and total shareholders equity of $495 million. Operating cash flow was $39.5 million and $103.1 million, respectively, for the quarter and nine months ended September 30, 2003. Capital expenditures were $1.6 million and $5.0 million for the quarter and nine months ended September 30, 2003, respectively.


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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce