First Usa Paymentech Reports 80% Increase In Fiscal 1996 Earnings

Business Wire,  July 16, 1996  

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DALLAS--(BUSINESS WIRE)--July 16, 1996--First USA Paymentech, Inc. (NYSE:PTI), the nation's third largest payment processor, today reported record fiscal year net income of $14.3 million, or $0.54 per share, up 80 percent from $7.9 million, or $0.32 per share, in fiscal 1995 net income. For the same period, net revenue increased 40 percent to $121.2 million, compared with $86.6 million for the fiscal year ended June 30, 1995.

Net income for the fourth quarter of the fiscal year ended June 30, 1996, was $5.4 million, an increase of 176 percent over net income of $2.0 million for the fourth quarter of fiscal year 1995. On a per share basis, net income was $0.17 for the quarter ended June 30, 1996, compared with $0.08 for the year-earlier period. Net revenue increased 49 percent to $33.9 million compared with $22.7 million for the prior-year period.

For the fiscal year ended June 30, 1996, Paymentech increased sales volume by 54 percent to $30.9 billion from $20.1 billion the previous fiscal year and increased transactions to 574 million from 359 million the previous fiscal year. During the June 1996 quarter, Paymentech processed approximately $8.4 billion in sales volume and approximately 163 million transactions, representing increases of 61 percent and 68 percent, respectively, compared with the same quarter last year.

Pamela H. Patsley, president and chief executive officer, said, "Fiscal year 1996 was an outstanding year for First USA Paymentech, punctuated by our successful initial public offering.

"Our 54 percent increase in sales volume for fiscal 1996 further strengthened our position as a leading payment processor. Paymentech is committed to growing its business through both internal sales efforts as well as an active acquisition program. Fiscal year 1996 included several significant acquisitions, including two companies that specialize in payment processing for the growing direct marketing industry.

Immediately following the close of the fiscal year, we acquired a $700 million processing portfolio from a leading Midwest bank and entered into an agreement whereby the bank will continue to refer its merchant processing business to us. We also announced an agreement with another bank to provide all back-office processing and settlement services for the bank's merchants and independent sales organizations.

"Our commercial card business also made significant strides during fiscal 1996. We concentrated on establishing our presence in the marketplace through partnerships with several prominent financial institutions, national travel agencies and universities. We are continuing to build our organization, both with management additions and technology, to become a major competitor in this arena."

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 $30.9 billion in sales volume and approximately 574 million transactions during fiscal year 1996. -0-

                FIRST USA PAYMENTECH, INC. AND SUBSIDIARIES
                           FINANCIAL HIGHLIGHTS
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