-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, OuQ/GTA9fB/OBc5KQrTgh+iUqNafjfLeDQ2efQyOdAfy8sOATanmX+uxmtdVJfuw XR5jrx37dnuovcKbh+8C5w== 0000740112-95-000005.txt : 19950530 0000740112-95-000005.hdr.sgml : 19950530 ACCESSION NUMBER: 0000740112-95-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950511 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONCORD EFS INC CENTRAL INDEX KEY: 0000740112 STANDARD INDUSTRIAL CLASSIFICATION: 6099 IRS NUMBER: 042462252 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-13848 FILM NUMBER: 95536927 BUSINESS ADDRESS: STREET 1: 2525 HORIZON LAKE DR STE 120 CITY: MEMPHIS STATE: TN ZIP: 38133 BUSINESS PHONE: 9013718000 MAIL ADDRESS: STREET 1: 2525 HORIZON LAKE DRIVE STREET 2: SUITE 120 CITY: MEMPHIS STATE: TN ZIP: 38133 FORMER COMPANY: FORMER CONFORMED NAME: CONCORD COMPUTING CORP DATE OF NAME CHANGE: 19920515 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended Commission file number 0-13848 March 31, 1995 ___________________________ CONCORD EFS, INC. (Exact name of registrant as specified in its charter) Delaware 04-2462252 _______________________________ _____________________ (State or other jurisdiction of (I.R.S. Employer Incorporation of Organization) Identification Number) 2525 Horizon Lake Drive, Suite 120, Memphis, Tennessee 38133 (Address of Principal Executive Offices) (901) 371-8000 (Registrant's telephone number, including area code) _________________ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes[X] No[ ] Shares of Common Stock, $.33 1/3 par value, were 16,208,234 as of March 31, 1995. CONCORD EFS, INC. AND SUBSIDIARIES INDEX Page No. --------- PART 1- Financial Information Item 1. Financial Statements (Unaudited) Condensed Consolidated Balance Sheets March 31, 1995 and December 31, 1994 1 Condensed Consolidated Statements of Income Three Months ended March 31, 1995 and March 31, 1994 2 Condensed Consolidated Statements of Cash Flows Three Months ended March 31, 1995 and March 31, 1994 3 Notes to Condensed Consolidated Financial Statements 4 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 5 PART II - Other Information Item 6. Exhibits and Reports on Form 8-K 6 Signatures 7 Exhibit 11 - Computation of Earnings Per Share CONCORD EFS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS March 31 December 31 1995 1994 (UNAUDITED) ASSETS ----------- ----------- Current Assets Cash and cash equivalents $26,128,345 $23,030,329 Securities available-for-sale 12,629,946 12,113,593 Accounts receivable, net 23,208,865 33,763,804 Inventories 2,818,676 2,907,661 Prepaid expenses and other 3,816,555 3,810,968 ----------- ----------- Total Current Assets 68,602,387 75,626,355 Securities held-to-maturity 4,008,044 4,196,454 Property and equipment 51,829,737 49,789,902 Less accumulated depreciation and amortization 31,896,465 30,150,571 ----------- ----------- 19,933,272 19,639,331 ----------- ----------- $92,543,703 $99,462,140 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $18,389,343 $30,508,847 Accrued liabilities 4,107,465 3,228,829 Current maturities of long-term debt 374,052 368,198 ----------- ----------- Total Current Liabilities 22,870,860 34,105,874 Long term debt, less current maturities 1,274,767 1,370,504 Deferred income taxes 1,536,000 1,244,000 Minority interest in subsidiary 791,135 806,891 Stockholders' Equity: Common Stock-par value $.33 1/3 per share; authorized 25,000,000 shares, issued 16,208,234 shares at March 31, 1995 and 16,105,434 shares at December 31, 1994 5,402,745 5,368,478 Other stockholders' equity 60,668,196 56,566,393 ----------- ----------- 66,070,941 61,934,871 ----------- ----------- $92,543,703 $99,462,140 =========== =========== See Notes to Condensed Consolidated Financial Statements - Unaudited. -1- CONCORD EFS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended March 31 ---------------------------- 1995 1994 ----------- ----------- Revenues $25,927,964 $19,638,539 Cost of operations 18,679,795 14,421,538 Selling, general and administrative expenses 2,328,408 1,775,413 ----------- ----------- Operating income 4,919,761 3,441,588 Other income (expense): Interest income 491,847 304,463 Interest expense (27,347) (10,543) ----------- ----------- Income before income taxes and minority interest 5,384,261 3,735,508 Income taxes 1,941,000 1,323,000 ----------- ----------- Income before minority interest 3,443,261 2,412,508 Minority interest 15,756 22,814 ----------- ----------- Net income $ 3,459,017 $ 2,435,322 =========== =========== Per share data: Weighted average common and common equivalent shares outstanding 16,842,466 16,477,097 ========== ========== Earnings per share $0.21 $0.15 ========== ========== See Notes to Condensed Consolidated Financial Statements - Unaudited -2- CONCORD EFS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended March 31 ---------------------------- 1995 1994 ----------- ----------- Net cash provided by operating activities $ 4,749,968 $ 2,229,649 Investing activities: Acquisition of property and equipment (2,039,835) (2,359,623) Purchases of securities available-for-sale (6,887,613) Sales of securities available-for-sale 4,102,672 Maturities of securities held-to-maturity 189,781 324,687 ----------- ----------- Net cash used in investing activities (1,850,054) (4,819,877) Financing activities: Proceeds from sale of common stock 287,985 146,842 Proceeds on issuance of note payable 2,000,000 Payments on notes payable (89,883) ----------- ----------- Net cash provided by financing activities 198,102 2,146,842 Increase (decrease) in cash and cash equivalents 3,098,016 (443,386) Cash and cash equivalents at beginning of period 23,030,329 12,465,815 ----------- ----------- Cash and cash equivalents at end of period $26,128,345 $12,022,429 =========== =========== For purposes of these statements, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. See Notes to Condensed Consolidated Financial Statements - Unaudited. -3- CONCORD EFS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED MARCH 31, 1995 Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulations S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 1995 are not necessarily indicative of the results that may be expected for the year ended December 31, 1995. For further information, refer to the consolidated financial statements and footnotes thereto included in the Registrant's annual report on Form 10-K for the year ended December 31, 1994. The balance sheet at December 31, 1994 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Securities Net unrealized loss on securities available-for-sale: March 31 December 31 1995 1994 ---------- ----------- Decrease in securities available-for-sale $1,367,519 $1,882,243 Increase in deferred tax assets 465,000 640,000 Decrease in equity 902,519 1,242,243 -4- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Revenue for the first quarter ended March 31, 1995 increased 32% over the same period last year. Net income for the first three months increased 42% over the same period of the prior year. The increase in revenue was attributable to additional volume from existing customers and the addition of new customers in Bank Card Services and Trucking Services. Continuing telemarketing efforts were responsible for the new customers. Net income as a percentage of revenue increased from 13.3% to 12.4% for the first three months, compared to the prior year. The increase was primarily due to the Bank Card Services growth coupled with slower operational cost increases. LIQUIDITY AND CAPITAL RESOURCES Capital additions for the quarter were $2,039,835. These additions were primarily for new computer equipment financed by working capital. With little debt, adequate available credit and strong cash generation, the Company is in sound financial condition and expects to fund continued growth from currently available resources. -5- PART II OTHER INFORMATION Item 6: Exhibits and Reports on Form 8-K. (a) Exhibits 11 - Computation of Earnings Per Share. (b) Reports on Form 8-K There were no reports on Form 8-K filed during the first quarter. -6- Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CONCORD EFS, INC. Date: May 10, 1995 By: Dan M. Palmer Dan M. Palmer Chief Executive Officer Date: May 10, 1995 By: Thomas R. Renfro Thomas R. Renfro Chief Financial Officer -7- EXHIBIT 11 CONCORD EFS, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE Three Months Ended March 31 -------------------------- 1995 1994 ------------ ----------- For primary earnings per share: Net income $ 3,459,017 $ 2,435,322 =========== =========== Weighted average of common shares outstanding net of treasury shares 16,114,256 16,052,153 Weighted average common stock equivalent for stock options by treasury stock method 728,210 424,944 ----------- ----------- Weighted average common and common equivalent shares 16,842,466 16,477,097 =========== =========== Per share amount $0.21 $0.15 =========== =========== For fully diluted earnings per share: Net income $ 3,459,017 $ 2,435,322 =========== =========== Weighted average common and common equivalent shares for primary earnings per share 16,842,466 16,477,097 Add shares representing additional shares for stock options based on period-end market price 73,836 -0- ----------- ----------- Weighted average common and common equivalent shares-fully diluted basis 16,916,302 16,477,097 =========== =========== Per share amount $0.20 $0.15 =========== =========== EX-27 2
5 1,000 3-MOS DEC-31-1995 MAR-31-1995 26128 16638 24023 815 2819 68602 51830 31896 92544 22871 0 5403 0 0 60668 92544 25928 25928 18680 21008 0 135 27 5384 1941 3459 0 0 0 3459 .21 .20
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