InterCept, Inc.
Exhibit 99.1
Forward Looking Statements
Statements in this presentation relating to future
events, projections, plans and underlying
assumptions are “forward-looking statements” within
the meaning of securities laws.
Actual results may differ materially from these
forward-looking statements, which are subject to risks
and uncertainties.
For a discussion of the risks and factors that could
cause InterCept’s actual results to differ materially
from the forward-looking statements, see the
following two slides.
Forward Looking Statements
These risks and uncertainties include: whether InterCept
can convert Sovereign Bank to InterCept's item
processing and check imaging centers in the time frames
it expects; the effects of the recent MasterCard and Visa
settlement; how and when the SLM loan situation will
ultimately be resolved and the timing and amount of any
charges related to that loan; the possible inaccuracy of
InterCept's estimates of the costs to defend and pursue
litigation; and whether InterCept can meet its budget
goals; continue to sustain its current internal growth rate
or its total growth rate; successfully integrate acquisitions
of assets and businesses and other operations it may
acquire; continue to provide enhanced and new products
and services that appeal to its financial institution and
merchant customers; continue to have access to the debt
and equity capital it needs to sustain its growth; and
achieve its sales objectives.
Forward Looking Statements
Other risks include whether InterCept can make changes
to iBill's business without suffering a further decline in its
operating performance; the possibility that,
notwithstanding these changes, credit card companies
may fine InterCept again for excessive credit card charge-
backs or other issues arising out of the its merchant
services operations; and the possibility that the
termination of customers or other changes in the
merchant services business could affect its value and
result in the impairment of that asset or other intangible
assets, which would require InterCept to record an
impairment charge in its statement of operations. For
more information about some of these risks and
uncertainties, please see the section in our most recent
Quarterly Report on Form 10-Q entitled Management’s
Discussion and Analysis of Financial Condition and
Results of Operations – Disclosure Regarding Forward-
Looking Statements.
InterCept, Inc.
Agenda
Corporate Update
Sales Update
Operations Update
2003 Financials
Follow-up Q & A
Corporate Update
Lynn Boggs
President
Sales Update
Jeff Berns
Senior Vice President
Sales Update
Financial Institutions:
October sales
Strongest month year-to-date
Strong community financial institution
pipeline
Large financial institution pipeline
continues to grow
Sales seminars
Operations Update
Randy Fluitt
Executive Vice President
Sovereign Update
New England region
Image capture completed
Statement rendering begins 11/17/03
Mid-Atlantic region
Image capture began11/3/03 and continues into
December when all 273 banking offices should be
converted
Production centers include:
West Deptford, NJ
Carlstadt, NJ
Reading, PA
Mid-Atlantic region statement rendering begins 1/6/04
Center Consolidation Update
Combination of centers
Traditional check processing converting
to imaging
Conversion issues occurred resulting in
Cost overruns
Delay in operational efficiencies
Resolution
John Perry
Chief Executive Officer
Plan and Operational Update
Consolidation of operations continues
Technology upgrade in DE to support brick
and mortar merchants via IP
Redundancy initiatives set for 1Q04
All new sales converted to the iPay
platform in August
ACH upgrades scheduled for 4Q03
Highlights
Signed GMAC Bank Relationship
Awarded b2b and b2c payments business to IPS as
the preferred provider
Rolled out the iPay Suite of Products
Migrated more than 250 merchants off the iBill
platform to DE iPay Platform
Ongoing and productive dialogue with the card
associations; focusing on a proactive approach
Signed several new merchants including CNet,
Kona Coffee and PalTalk
2003 Financials
Scott Meyerhoff
Chief Financial Officer
Consolidated Income Statement
(numbers in thousands except per share data)
InterCept believes that EBITDA is an important measure of operating performance
and that EBITDA provides useful information to investors because it is a widely
accepted financial indicator used by certain investors and analysts to analyze and
compare one company in our industry with another on the basis of operating
performance.
5,659
EBITDA
0.00
Earnings Per Share (Diluted)
18
Net Income
587
Operating Income
30,860
Gross Margin
$ 64,088
Revenue
Q3 2003
Reconciliation of EBITDA
to Net Income
Q3 2003
$18
Add: Interest Expense
Taxes
Preferred Dividends
Depreciation & Amortization
5,659
Net Income
499
49
21
5,072
Financial Institutions
Income Statement
Q3 2003
Revenue
Operating Income
Q3 2002
Q2 2003
$49,488
1,512
$48,562
$45,872
3,743
6,118
Merchant Processing Income
Statement
Q3 2003
Revenue
Operating Income
$14,600
(924)
Q2 2003
Q3 2002
$15,508
$20,423
720
501
Balance Sheet Highlights
Cash and cash equivalents
Total debt
Shareholders’ equity
24,071
63,165
328,070
9/30/03
12/31/02
11,668
33,353
315,059
InterCept, Inc.
