PMT Services Reports Second Quarter Earnings of $0.14 Per Share
Before Nonrecurring Merger Expenses
Revenues and Net Income Before Nonrecurring Merger Expenses Increase to Record Levels
NASHVILLE, Tenn.--(BUSINESS WIRE)--March 17, 1998--Richardson M. Roberts, Chairman and Chief Executive
Officer of PMT Services, Inc. (Nasdaq/NM: PMTS - news), today announced record financial results for the second quarter
and first six months of fiscal 1998. Consolidated results have been restated for certain pooling of interests transactions as if the
acquired companies had always been a part of PMT.
Revenues for the second quarter, which ended January 31, 1998, increased 32.4% to $99,813,000 from $75,411,000 for the
second quarter of fiscal 1997. Fully taxed net income before nonrecurring expenses was $6,593,000, up 38.8% from
$4,751,000. Fully taxed earnings per diluted share before nonrecurring expenses increased 27.3% for the quarter to $0.14
from $0.11 for the second quarter of the prior fiscal year. These results exclude nonrecurring merger related expenses and
include a normalized tax rate of 38% to reflect fully taxed results of merged entities as if they had historically been C
Corporations instead of Sub-Chapter S Corporations.
Revenues for the first six months of fiscal 1998 increased 25.2% to $193,325,000 from $154,401,000 for the first half of
fiscal 1997. Fully taxed net income before nonrecurring expenses for the latest six month period rose 32.8% to $12,438,000,
or $0.26 per diluted share, from $9,369,000, or $0.21 per diluted share, for the first six months of fiscal 1997. These results
reflect the same adjustments discussed above.
''PMT's record results for the second quarter continued to demonstrate significant operating and earnings momentum,''
remarked Mr. Roberts. ''We attribute these results to the ongoing expansion of our merchant account portfolio through both
acquisitions and accelerating internal growth. In addition, the growth of the portfolio created further economies of scale, which,
combined with revenue enhancement programs and better vendor pricing, produced an increase in the operating profit margin
to 10.0% of revenues for the quarter from less than 9.0% for the second quarter of fiscal 1997.
''Through the first half of fiscal 1998, we completed three acquisitions, bringing more than $3 billion in annualized charge
volume to the Company. Subsequent to the end of the second quarter, we announced a fourth acquisition, with approximately
$200 million in annualized charge volume. In addition to expanding the merchant account portfolio, we entered all four of these
transactions with a specific goal of increasing our capability to generate internal growth by acquiring seasoned, quality field
sales forces. The success of this strategy can be measured by the increase over the past 21 months in the average number of
accounts being produced by our sales channels to approximately 3,500 per month currently from approximately 600 per
month previously.
''We remain confident of the Company's ability to produce further profitable growth through our dual strategies of acquisition
and internal growth. We continue to lead the consolidation of our markets and our internal merchant account production
continues to increase. As a leader in a growing and highly fragmented market, we are optimistic about the Company's
prospects.''
PMT Services, Inc. is an independent service organization which markets and services electronic credit card authorization and
payment systems to small retail and professional businesses located throughout the United States. PMT's account portfolio has
grown through the internal development of accounts using telemarketing and a field sales force as well as through the purchase
of account portfolios. PMT is one of the largest independent service organizations in the country.
Investors are cautioned that this release contains forward-looking statements, such as those relating to PMT's ability to
produce continued profitable growth and the continued consolidation of the electronic transaction processing industry, that are
based upon current expectations and involve a number of risks and uncertainties. Actual operations and results may differ
materially from those expressed in the forward-looking statements made by the Company. The factors that could cause actual
results to vary include PMT's ability to retain and expand its field sales force; the ongoing performance of the field sales and
telemarketing personnel; the actual production of new accounts by alliance partners; the Company's ability to integrate
acquisitions successfully with its processing systems and products and to account for acquisitions as poolings of interests; the
availability of attractive acquisition targets; the availability of capital, attrition of merchants from acquired portfolios; and other
trends or uncertainties as noted in PMT's periodic filings with the SEC. |
