First USA Paymentech Reports Earnings Increased 75%

Business Wire,  April 16, 1996  

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DALLAS--(BUSINESS WIRE)--April 16, 1996--First USA Paymentech, Inc. (NYSE:PTI), the nation's third largest payment processor, today reported net income increased 75 percent to $3.9 million, or $0.16 per share, for the third quarter ended March 31, 1996, compared with net income of $2.2 million, or $0.09 per share, for the same quarter a year ago. Net revenue increased 46 percent to $31.6 million compared with $21.6 million for the prior year period.

For the nine months ended March 31, 1996, net income increased 48 percent to $8.8 million, or $0.36 per share, compared with net income of $5.9 million, or $0.24 per share, for the first nine months of fiscal 1995. For the same period, net revenue increased 37 percent to $87.4 million, compared with $63.9 million for the nine months ended March 31, 1995.

During the March 1996 quarter, Paymentech processed approximately $7.9 billion in sales volume and approximately 148 million transactions, representing increases of 64 percent and 72 percent, respectively, compared with the same quarter last year.

Pamela H. Patsley, president and chief executive officer, said, "Our successful initial public offering and listing on the New York Stock Exchange are milestones for Paymentech. The majority of the net proceeds from the offering will be used to continue our product and technology development and to compete for attractive acquisitions. During the quarter, we continued to expand our internal sales efforts and further penetrated the growth markets of direct marketing, travel, entertainment, and retail. We are also beginning to make inroads into university and hospital payment processing."

First USA Paymentech is a processor of merchant credit card transactions and an issuer of commercial cards to businesses and other entities. Paymentech, founded in 1985, is the third largest processor of credit card transactions for merchants in the United States, processing approximately $24.6 billion in sales volume and approximately 446 million transactions during calendar year 1995. -0-

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