-----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, Mbh7QjFd1yzMe7Nmypb8TZAg3t5cNDOim4JMgPJrczSNx+PSB8BlhKvOl59rauLw 3UqlozNWAnEigP1xUo91TA== 0000740112-95-000007.txt : 19950814 0000740112-95-000007.hdr.sgml : 19950814 ACCESSION NUMBER: 0000740112-95-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950811 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONCORD EFS INC CENTRAL INDEX KEY: 0000740112 STANDARD INDUSTRIAL CLASSIFICATION: FUNCTIONS RELATED TO DEPOSITORY BANKING, NEC [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: 95561233 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 June 30, 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 24,675,984 as of June 30, 1995. CONCORD EFS, INC. AND SUBSIDIARIES INDEX Page No. -------- PART 1- Financial Information Item 1. Financial Statements (Unaudited) Condensed Consolidated Balance Sheets June 30, 1995 and December 31, 1994 1 Condensed Consolidated Statements of Income Three Months and Six Months ended June 30, 1995 and June 30, 1994 2 Condensed Consolidated Statements of Cash Flows Six Months ended June 30, 1995 and June 30, 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 June 30 1995 December 31 (UNAUDITED) 1994 ASSETS ------------ ----------- Assets Cash and cash equivalents $ 25,059,153 $23,030,329 Securities available-for-sale 17,502,216 12,113,593 Accounts receivable, net 27,935,858 33,763,804 Inventories 2,208,291 2,907,661 Prepaid expenses and other 5,616,316 3,810,968 ------------ ----------- Total Current Assets 78,321,834 75,626,355 Securities held-to-maturity 3,788,807 4,196,454 Property and equipment 53,673,580 49,789,902 Less accumulated depreciation and amortization 33,630,281 30,150,571 ------------ ----------- 20,043,299 19,639,331 ------------ ----------- $102,153,940 $99,462,140 ============ =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 21,232,597 $30,508,847 Accrued liabilities 3,142,451 3,228,829 Current maturities of long-term debt 379,999 368,198 ------------ ----------- Total Current Liabilities 24,755,047 34,105,874 Long term debt, less current maturities 1,177,508 1,370,504 Deferred income taxes 1,708,000 1,244,000 Minority interest in subsidiary 762,877 806,891 Stockholders' Equity: Common Stock-par value $.33 1/3 per share; authorized 25,000,000 shares, issued 24,675,984 shares at June 30, 1995 and 16,105,434 shares at December 31, 1994 8,225,328 5,368,478 Other stockholders' equity 65,525,180 56,566,393 ------------ ----------- 73,750,508 61,934,871 ------------ ----------- $102,153,940 $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 Six Months Ended ------------------------ ------------------------ 1995 1994 1995 1994 ----------- ----------- ----------- ----------- Revenues $29,897,035 $22,126,018 $55,824,999 $41,764,558 Cost of operations 21,334,718 15,972,355 40,014,482 30,393,290 Selling, general and administrative expenses 2,743,166 2,172,376 5,071,605 3,948,393 ----------- ----------- ----------- ----------- Operating income 5,819,151 3,981,287 10,738,912 7,422,875 Other income (expense): Interest income 509,474 410,465 1,001,321 714,933 Interest expense (25,949) (30,931) (53,296) (41,479) ----------- ----------- ----------- ----------- Income before income taxes and minority interest 6,302,676 4,360,821 11,686,967 8,096,329 Income taxes 2,250,000 1,540,000 4,191,000 2,863,000 ----------- ----------- ----------- ----------- Income before minority interest 4,052,676 2,820,821 7,495,967 5,233,329 Minority interest 28,258 11,760 44,014 34,574 ----------- ----------- ----------- ----------- Net income $ 4,080,934 $ 2,832,581 $ 7,539,951 $ 5,267,903 =========== =========== =========== =========== Per share data: Weighted average common and common equivalent shares outstanding 25,547,765 24,707,268 25,405,796 24,711,456 ========== ========== ========== ========== Earnings per share $0.16 $0.11 $0.30 $0.21 ===== ===== ===== ===== See Notes to Condensed Consolidated Financial Statements - Unaudited -2- CONCORD EFS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30 ---------------------------- 1995 1994 ----------- ----------- Net cash provided by operating activities $ 8,043,436 $ 9,050,660 ----------- ----------- Investing activities: Acquisition of property and equipment (3,883,678) (5,063,180) Purchases of securities available-for-sale (4,366,734) (6,887,613) Sales of securities available-for-sale 247,500 4,102,672 Maturities of securities held-to-maturity 404,490 570,216 ----------- ----------- Net cash used in investing activities (7,598,422) (7,277,905) ----------- ----------- Financing activities: Proceeds from sale of common stock 1,765,005 150,042 Proceeds on issuance of note payable 2,000,000 Payments on notes payable (181,195) (85,729) ----------- ----------- Net cash provided by financing activities 1,583,810 2,064,313 ----------- ----------- Increase in cash and cash equivalents 2,028,824 3,837,068 Cash and cash equivalents at beginning of period 23,030,329 12,465,815 ----------- ----------- Cash and cash equivalents at end of period $25,059,153 $16,302,883 =========== =========== For purposes of these statements, the Company considers all highly liquid investments with a maturity of six 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 JUNE 30, 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 six month period ended June 30, 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: June 30 December 31 1995 1994 --------- ----------- Decrease in securities available-for-sale $616,011 $1,882,243 Increase in deferred tax assets 209,000 640,000 Decrease in equity 407,011 1,242,243 Stockholders' Matters and Earnings Per Share The Board of Directors approved three for two stock splits on August 18, 1994 and April 27, 1995. Prior periods earnings per share and related per share data have been restated to reflect the stock splits. -4- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Revenue and net income for the second quarter ended June 30 1995 increased 35% and 44% respectively, compared to the same period last year. Revenue and net income for the first six months ended June 30, 1995 increased 34% and 43% respectively, compared to 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 12.8% to 13.7% for the second quarter, 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 $1,843,843. 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 second 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: August 11, 1995 By:/s/Dan M. Palmer ----------------------- Dan M. Palmer Chief Executive Officer Date: August 11, 1995 By:/s/Thomas R. Renfro ----------------------- Thomas R. Renfro Chief Financial Officer -7- CONCORD EFS, INC. AND SUBSIDIARIES EXHIBIT 11 COMPUTATION OF EARNINGS PER SHARE Three Months Six Months Ended June 30 Ended June 30 ---------------------- ---------------------- 1995 1994 1995 1994 ---------- ---------- ---------- ---------- Primary earnings per share: Net income $4,080,934 $2,832,581 $7,539,951 $5,267,903 ========== ========== ========== ========== Weighted average of common shares outstanding 24,603,466 24,149,972 24,387,425 24,114,100 Weighted average common stock equivalent for stock options by treasury stock method 944,299 557,296 1,018,371 597,356 ---------- ---------- ---------- ---------- Weighted average common and common equivalent shares 25,547,765 24,707,268 25,405,796 24,711,456 ========== ========== ========== ========== Per share amount $0.16 $0.11 $0.30 $0.21 ========== ========== ========== ========== Fully diluted earnings per share: Net income $4,080,934 $2,832,581 $7,539,951 $5,267,903 ========== ========== ========== ========== Weighted average common and common equivalent shares for common earnings per shares 25,547,765 24,707,268 25,405,796 24,711,456 Add shares representing additional shares for stock options based on period-end market price 261,951 26,417 186,668 9,719 ---------- ---------- ---------- ---------- Weighted average common and common equivalent shares-fully diluted basis 25,809,716 24,733,685 25,592,464 24,721,175 ========== ========== ========== ========== Per share amount $0.16 $0.11 $0.29 $0.21 ========== ========== ========== ========== EX-27 2
5 1,000 3-MOS 6-MOS DEC-31-1994 DEC-31-1994 JUN-30-1995 JUN-30-1995 25059 25059 21291 21291 28923 28923 987 987 2209 2209 78322 78322 53673 53673 33630 33630 102154 102154 24755 24755 0 0 8225 8225 0 0 0 0 65525 65525 102154 102154 29897 55825 29897 55825 21335 40014 24078 45086 0 0 165 300 26 53 6303 11687 2250 4191 4081 7540 0 0 0 0 0 0 4081 7540 .16 .30 .16 .30
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