MEMPHIS, Tenn. -- Concord EFS, Inc. (Nasdaq:CEFT) reported strong increases in revenue, net income and diluted earnings per share in the third quarter of 2000.
Revenue was $318.7 million, up 38 percent compared to $231.3 million in the third quarter of 1999. For the nine months ended Sept. 30, revenue was $876.1 million compared to $621.8 million for the same period in 1999, a 41 percent increase.
In line with analysts' expectations, net income for the third quarter of 2000 was $51.6 million, or 23 cents diluted earnings per share, up 37 percent and 35 percent, respectively, over the third quarter of 1999, excluding after-tax acquisition and restructuring charges. These charges totaled $7.5 million and were incurred during the third quarter of 2000 in conjunction with the acquisition of Cash Station, Inc. Including charges, net income for the third quarter of 2000 was $44.1 million, or 20 cents diluted earnings per share.
Excluding charges, for the nine months ended Sept. 30 net income was $136.7 million and diluted earnings per share was 62 cents, representing increases of 45 percent and 41 percent, respectively, over the same period in 1999. Including charges, diluted earnings per share was 58 cents and 32 cents for the nine months ended Sept. 30, 2000 and 1999, respectively.
The charges include after-tax acquisition-related charges of $700,000 incurred during the first quarter of 2000 in the acquisition of Card Payment Systems, Inc. (CPS); the charges incurred in the Cash Station acquisition noted above; and after-tax acquisition and restructuring charges of $26.9 million incurred during the first quarter of 1999 in the acquisition of Electronic Payment Services, Inc.
The historical results have been restated to include the results of CPS, which was acquired by Concord on Jan. 31, 2000, and Cash Station, acquired on Aug. 21, 2000. Both acquisitions were accounted for as pooling of interests transactions. A table of three-year unaudited restated results of operations will be available in conjunction with Concord's 10Q filing for the third quarter at Concord's Web site
Earlier this month, Concord announced the acquisition of Star Systems, Inc.
