National Processing Reports Fourth Quarter and Full Year 2003 Results
Thursday January 15, 7:31 am ET
biz.yahoo.com
LOUISVILLE, Ky., Jan. 15 /PRNewswire-FirstCall/ -- National Processing, Inc. (NYSE: NAP) today reported financial results for the fourth quarter and year ended December 31, 2003. Revenue for the fourth quarter of 2003 was $135.5 million, up 15% from 2002 fourth quarter revenue of $118.3 million. Net income for the fourth quarter of 2003 was $14.8 million, or $0.28 per diluted share, up 5% and 3%, respectively, from comparable 2002 net income of $14.1 million, or $0.27 per diluted share. For the year ended December 31, 2003 revenue was $480.1 million, up 5% from $455.4 million in 2002. Net income for the year ended December 31, 2003 was $48.8 million, or $0.93 per diluted share, both down 5%, from comparable 2002 net income of $51.1 million, or $0.97 per diluted share.
Net income for the year ended December 31, 2003 included after-tax restructuring charges of $0.8 million related to the consolidation of technology functions and a loss on the sale of 14 regional sales offices. Net income for the year ended December 31, 2002 included an after-tax restructuring charge of $2.4 million related to the closure of the Company's Mexican operations and 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 fourth quarter and year ended December 31, 2003. Merchant Card Services transactions processed were 1.2 billion for the quarter and 4.3 billion for the year ended December 31, 2003, representing increases of 16% and 11%, respectively, over comparable 2002 volume. Merchant Card Services dollar volume processed was $51.7 billion for the quarter and $177.2 billion for the year ended December 31, 2003, representing increases of 14% and 5%, respectively, over comparable 2002 volumes. The dollar volume processed has trailed transaction growth primarily as a result of the Company's initiative to exit merchant processing for airlines, which have a large average ticket per transaction.
Chairman and CEO Jon L. Gorney commented, "The fourth quarter and full year 2003 results were in line with our expectations. We are very pleased with the results achieved in our regional merchant base as we continue to experience strong sales momentum and operating results in this channel. As we have previously reported, our overall results for the quarter and year reflect the impact of national merchant contracts renewing at current market rates. This was somewhat offset in the latter part of the year by the favorable impact of rate changes from the credit card associations. Our results also reflect the exit of merchant processing for the airlines with two contracts expiring in the second quarter of 2003."
"We expect these trends to continue into 2004 with solid momentum in the regional channel offset by the portion of our national contracts that will renew at current pricing levels. Due primarily to the national pricing impact, we are holding our 2004 diluted EPS projections flat with our 2003 guidance. Our full year 2004 diluted EPS is projected to be $0.90 to $0.95, exclusive of acquisitions. Our current projections are for 2004 revenue to be in the range of $490 million to $520 million."
The Company's balance sheet remained strong. As of December 31, 2003, the Company had $247 million of cash and cash equivalents with no debt and total shareholders' equity of $522 million. Operating cash flow was $92 million for the year ended December 31, 2003. |
