EXHIBIT 99
PRESS RELEASE Certegy Inc.
11720 Amber Park Drive
Suite 600
Alpharetta, Georgia 30004
Phone 678-867-8000
Date: October 22, 2002 Fax 678-867-8100
Contact: Mary K. Waggoner
Vice President - Investor and
Public Relations
678-867-8004
mary.waggoner@certegy.com
FOR IMMEDIATE RELEASE
CERTEGY REPORTS THIRD QUARTER EARNINGS
ALPHARETTA, GA, OCTOBER 22, 2002 - Certegy Inc. (NYSE:CEY) today reported third
quarter 2002 diluted earnings per share of $0.35 on revenue of $254.5 million,
operating income of $41.3 million and net income of $24.4 million. These results
include a $5.4 million, or $0.05 per diluted share, asset impairment and
severance charge. Excluding this charge, diluted earnings per share was $0.40,
operating income was $46.7 million and net income was $27.9 million.
THIRD QUARTER FINANCIAL HIGHLIGHTS
Highlights of the 2002 third quarter financial results, excluding the $5.4
million charge, as compared to pro forma 2001, are as follows:
- Revenue grew 6.9 percent to $254.5 million.
- Operating income of $46.7 million increased 3.7 percent.
- Interest expense declined to $1.6 million, driven by low
interest rates and debt reductions.
- Net income increased by 7.5 percent to $27.9 million.
- Diluted earnings per share of $0.40, increased by 8.1 percent.
- Total debt outstanding was $166.7 million at September 30,
2002.
- 1,978,000 shares of common stock were repurchased at a cost of
$41.3 million between September 25 and October 8, increasing
total debt outstanding to $195.0 million at October 15, 2002.
"Our core business dynamics remain strong," said Lee Kennedy, Chairman,
President and Chief Executive Officer. "We are focused on growing revenue, while
at the same time taking steps to ensure we have the appropriate cost structure
in place."
(CERTEGY LOGO)
Statement of Financial Accounting Standards ("SFAS") No. 142 modifies accounting
for business combinations, goodwill and identifiable intangible assets. As of
January 1, 2002, all goodwill amortization ceased. In the third quarter of 2001,
Certegy's operating income included $2.3 million of goodwill amortization, or
approximately $0.027 per diluted share. For comparative purposes, the pro forma
financial results for the third quarter of 2001 include adjustments to reflect
this accounting change, as if it had been effective January 1, 2001. Attachment
Page 2 of 7 provides detail pro forma financial results for third quarter of
2001.
SEGMENT RESULTS
Card Services generated revenue of $167.6 million in the third quarter of 2002,
an increase of $4.8 million, or 2.9 percent, over the prior year quarter.
Excluding nonrecurring revenue of $6.3 million in the company's e-banking
operations during the third quarter of 2001, Card Services' revenue increased by
7.1 percent (8.2 percent in local currency), driven by a 12.7 percent increase
in merchant processing revenue and a 5.0 percent increase in North American card
issuing revenue. International card revenue declined by 2.3 percent (an increase
of 3.8 percent in local currency) due to unfavorable currency rates and volatile
economic conditions in Brazil. Excluding Latin America, international card
revenue increased by 27.3 percent (18.4 percent in local currency). Card
Services' operating income of $38.9 million increased $2.0 million, or 5.4
percent, over the prior year quarter.
Check Services generated revenue of $86.9 million in the third quarter of 2002,
an increase of $11.7 million, or 15.6 percent (14.4 percent in local currency),
over the third quarter of 2001. Check volumes increased 11.7 percent over the
prior year quarter. The growth in volume and revenue are primarily attributable
to new contract signings. Check Services' operating income grew to $12.1
million, or 4.1 percent over third quarter 2001. Operating income growth in the
quarter was impacted by check volume mix and investment in the check cashing
business.
Corporate expense increased $0.8 million to $4.3 million. The corporate office
was established during the prior year quarter; thus, corporate expense was lower
in that initial period.
The $5.4 million charge includes a $5.2 million asset impairment charge and a
$0.2 million severance charge. Additional severance and related costs will be
incurred in the fourth quarter of 2002.
BUSINESS HIGHLIGHTS
Certegy added 2.2 million cards globally during the quarter, increasing its
North American card base to 22.2 million and its international card base to 24.0
million.
The Company continues to gain market share in its traditional check
authorization business. Significant customer signings in the third quarter
included Price Chopper, Polo Ralph Lauren, Sunglass Hut, Hollywood Entertainment
and several leading regional and mid-tier accounts.
(CERTEGY LOGO)
OUTLOOK
On September 20, 2002 the Company revised earlier revenue and earnings guidance
for 2002 and 2003. In 2002, revenue is expected to increase 8 to 9 percent and
diluted earnings per share is expected to be $1.39 to $1.40, before asset
impairment and severance charges of approximately $0.08 to $0.09 per diluted
share. The Company anticipates a fourth quarter 2002 charge of approximately
$3.0 million to $4.0 million, or $0.03 to $0.04 per diluted share, to cover
severance and related costs. In 2003, revenue is expected to increase 6 to 8
percent and diluted earnings per share are expected to be $1.52 to $1.55.
TELECONFERENCE
Management will host a teleconference to discuss third quarter earnings on
Tuesday, October 22, 2002 at 9:00 a.m. Eastern Time. The live audio Webcast and
replay of the speakers' presentations will be available at www.certegy.com.
Please be advised that Microsoft's Windows Media Player(TM) must be downloaded
prior to accessing the presentation. It can be downloaded from
www.microsoft.com/windows/mediaplayer.
###
The statements in this release include forward-looking statements that are based
on current expectations, assumptions, estimates, and projections about Certegy
and our industry. They are not guarantees of future performance and are subject
to risks and uncertainties, many of which are outside of Certegy's control, that
may cause actual results to differ significantly from what is expressed in those
statements. The factors that could, either individually or in the aggregate,
affect our performance include the following, which are described in greater
detail in the section entitled "Certain Factors Affecting Forward-Looking
Statements" in our 2001 Annual Report on Form 10-K filed with the SEC: Our
ability to maintain or improve our competitive positions against current and
potential competitors; the level of economic growth or other factors affecting
demand for our products and services; loss of key customer contracts or
strategic relationships; changes in regulation or industry standards applicable
to our businesses or those of our customers; risks associated with investments
and operations in foreign countries, including exchange rate fluctuations and
local political, social, and economic factors, and those other risks listed in
the above-referenced section of our Form 10-K.
###
Certegy (NYSE:CEY) provides credit and debit card processing, check risk
management and check cashing services, and merchant processing to over 6,000
financial institutions, 117,000 retailers and 100 million consumers worldwide.
Headquartered in Alpharetta, Georgia, Certegy maintains a strong global presence
with operations in the United States, Canada, United Kingdom, Ireland, France,
Chile, Brazil, Australia and New Zealand. As a leading payment services
provider, Certegy offers a comprehensive range of transaction processing
services, check risk management solutions and integrated customer support
programs that facilitate the exchange of business and consumer payments. Certegy
generated $936 million in revenue in 2001. For more information on Certegy,
please visit www.certegy.com.
(CERTEGY LOGO)
CERTEGY INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001 (PRO FORMA)
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended September 30,
---------------------------------
Pro Forma
2002 2001(1)
--------- ---------
Revenues .................................... $ 254,506 $ 237,982
--------- ---------
Operating expenses:
Costs of services ....................... 179,132 168,375
Selling, general and administrative ..... 28,718 24,611
Asset impairment and severance charge ... 5,390 --
--------- ---------
213,240 192,986
--------- ---------
Operating income ............................ 41,266 44,996
Other income, net ........................... 151 383
Interest expense ............................ (1,619) (3,664)
--------- ---------
Income before income taxes .................. 39,798 41,715
Provision for income taxes .................. (15,360) (15,759)
--------- ---------
Net income .................................. $ 24,438 $ 25,956
========= =========
Basic earnings per share .................... $ 0.35 $ 0.38
========= =========
Average shares outstanding .................. 68,850 68,618
========= =========
Diluted earnings per share .................. $ 0.35 $ 0.37
========= =========
Average shares outstanding .................. 69,451 69,368
========= =========
Revenues and operating income of the Company's reportable segments for the three
months ended September 30, 2002 and 2001 (pro forma) are as follows:
Three Months Ended September 30,
-------------------------------
Pro Forma
2002 2001(1)
--------- ---------
Revenues:
Card Services ............................ $ 167,609 $ 162,814
Check Services ........................... 86,897 75,168
--------- ---------
$ 254,506 $ 237,982
========= =========
Operating income:
Card Services ............................ $ 38,876 $ 36,892
Check Services ........................... 12,085 11,606
--------- ---------
50,961 48,498
General corporate expense ................ (4,305) (3,502)
Asset impairment and severance charge .... (5,390) --
--------- ---------
$ 41,266 $ 44,996
========= =========
(1) See Attachment Page 2 of 7 for pro forma adjustments to historical amounts.
ATTACHMENT PAGE 1 OF 7
CERTEGY INC.
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001
(In thousands, except per share amounts)
(Unaudited)
SFAS 142
Historical Adjustment(1) Pro Forma
---------- ------------- ---------
Revenues .................................... $ 237,982 $ -- $ 237,982
--------- --------- ---------
Operating expenses:
Costs of services ...................... 170,650 (2,275) 168,375
Selling, general and administrative .... 24,611 -- 24,611
--------- --------- ---------
195,261 (2,275) 192,986
--------- --------- ---------
Operating income ............................ 42,721 2,275 44,996
Other income, net ........................... 383 -- 383
Interest expense ............................ (3,664) -- (3,664)
--------- --------- ---------
Income before income taxes .................. 39,440 2,275 41,715
Provision for income taxes .................. (15,381) (378) (15,759)
--------- --------- ---------
Net income .................................. $ 24,059 $ 1,897 $ 25,956
========= ========= =========
Basic earnings per share .................... $ 0.35 $ 0.38
========= =========
Average shares outstanding .................. 68,618 68,618
========= =========
Diluted earnings per share .................. $ 0.35 $ 0.37
========= =========
Average shares outstanding .................. 69,368 69,368
========= =========
Operating income of the Company's reportable segments for the three months ended
September 30, 2001 on a pro forma basis is as follows:
SFAS 142
Historical Adjustment(1) Pro Forma
---------- ------------- ---------
Operating income:
Card Services .................. $ 34,837 $ 2,055 $ 36,892
Check Services ................. 11,386 220 11,606
-------- ------- --------
46,223 2,275 48,498
General Corporate Expense ...... (3,502) -- (3,502)
-------- ------- --------
$ 42,721 $ 2,275 $ 44,996
======== ======= ========
(1) Pro forma adjustment to exclude goodwill amortization expense in accordance
with SFAS 142, "Goodwill and Other Intangible Assets," as if the standard
had been effective January 1, 2001.
ATTACHMENT PAGE 2 OF 7
CERTEGY INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001 (PRO FORMA)
(In thousands, except per share amounts)
(Unaudited)
Nine Months Ended September 30,
---------------------------------
Pro Forma
2002 2001(1)
--------- ---------
Revenues ........................................... $ 744,717 $ 681,361
--------- ---------
Operating expenses:
Costs of services .............................. 547,176 497,522
Selling, general and administrative ............ 84,786 75,640
Asset impairment and severance charge .......... 5,390 --
--------- ---------
637,352 573,162
--------- ---------
Operating income ................................... 107,365 108,199
Other income (expense), net ........................ 922 (123)
Interest expense ................................... (5,345) (12,512)
--------- ---------
Income before income taxes and
minority interests ............................. 102,942 95,564
Provision for income taxes ......................... (39,513) (35,751)
Minority interests in earnings, net of tax ......... -- (945)
--------- ---------
Net income ......................................... $ 63,429 $ 58,868
========= =========
Basic earnings per share ........................... $ 0.92 $ 0.86
========= =========
Average shares outstanding ......................... 68,913 68,231
========= =========
Diluted earnings per share ......................... $ 0.91 $ 0.85
========= =========
Average shares outstanding ......................... 69,830 68,949
========= =========
Revenues and operating income of the Company's reportable segments for the nine
months ended September 30, 2002 and 2001 (pro forma) are as follows:
Nine Months Ended September 30,
---------------------------------
Pro Forma
2002 2001(1)
--------- ---------
Revenues:
Card Services ................................... $ 497,340 $ 469,052
Check Services .................................. 247,377 212,309
--------- ---------
$ 744,717 $ 681,361
========= =========
Operating income:
Card Services ................................... $ 94,666 $ 90,720
Check Services .................................. 30,647 28,658
--------- ---------
125,313 119,378
General corporate expense ....................... (12,558) (11,179)
Asset impairment and severance charge ........... (5,390) --
--------- ---------
$ 107,365 $ 108,199
========= =========
(1) See Attachment Page 4 of 7 for pro forma adjustments to historical amounts.
ATTACHMENT PAGE 3 OF 7
CERTEGY INC.
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001
(In thousands, except per share amounts)
(Unaudited)
Pro Forma Adjustments
--------------------------
Historical Spin(1) SFAS 142(2) Pro Forma
---------- -------- ---------- ---------
Revenues .................................... $ 681,361 $ -- $ -- $ 681,361
--------- -------- --------- ---------
Operating expenses:
Costs of services ....................... 501,560 2,350 (6,388) 497,522
Selling, general and administrative ..... 74,740 900 -- 75,640
--------- -------- --------- ---------
576,300 3,250 (6,388) 573,162
--------- -------- --------- ---------
Operating income ............................ 105,061 (3,250) 6,388 108,199
Other expense, net .......................... (123) -- -- (123)
Interest expense ............................ (4,099) (8,413) -- (12,512)
--------- -------- --------- ---------
Income before income taxes and
minority interests ...................... 100,839 (11,663) 6,388 95,564
Provision for income taxes .................. (39,327) 4,549 (973) (35,751)
Minority interests in earnings, net of tax .. (945) -- -- (945)
--------- -------- --------- ---------
Net income .................................. $ 60,567 $ (7,114) $ 5,415 $ 58,868
========= ======== ========= =========
Basic earnings per share .................... $ 0.89 $ 0.86
========= =========
Average shares outstanding .................. 68,231 68,231
========= =========
Diluted earnings per share .................. $ 0.88 $ 0.85
========= =========
Average shares outstanding .................. 68,949 68,949
========= =========
Operating income of the Company's reportable segments for the nine months ended
September 30, 2001 on a pro forma basis is as follows:
Pro Forma Adjustments
--------------------------
Historical Spin(1) SFAS 142(2) Pro Forma
---------- -------- ---------- ---------
Operating income:
Card Services ............................ $ 85,017 $ -- $ 5,703 $ 90,720
Check Services ........................... 27,973 -- 685 28,658
--------- -------- --------- ---------
112,990 -- 6,388 119,378
General Corporate Expense ................ (7,929) (3,250) -- (11,179)
--------- -------- --------- ---------
$ 105,061 $ (3,250) $ 6,388 $ 108,199
========= ======== ========= =========
(1) Pro forma adjustments include a) additional operating expenses of $3.3
million, which specifically relate to incremental pension expense,
insurance costs, corporate headquarters rent, and stand-alone public
company costs for audit, director, and stock exchange fees; b) interest
expense on the $275 million of debt used to fund a cash payment to
Equifax in conjunction with the spin-off, at an annual rate of LIBOR
plus 100 basis points (5.76% for the six months ended June 30, 2001),
plus amortization of financing costs over the three-year term of the
debt; and c) the income tax benefit resulting from the pro forma
adjustments using the Company's effective tax rate for the period.
(2) Pro forma adjustment to exclude goodwill amortization expense in
accordance with SFAS 142, "Goodwill and Other Intangible Assets," as if
the standard had been effective January 1, 2001.
ATTACHMENT PAGE 4 OF 7
CERTEGY INC.
SUPPLEMENTAL INFORMATION
(Unaudited)
1. ADOPTION OF EMERGING ISSUES TASK FORCE ISSUE NO. 01-14 ("EITF 01-14"):
In January 2002, the Company adopted Emerging Issues Task Force Issue No.
01-14 ("EITF 01-14"), "Income Statement Characterization of Reimbursements
Received for 'Out-of-Pocket' Expenses Incurred," which requires that
reimbursements received for out-of-pocket expenses be reclassified as
revenues. Historically, the Company has netted such reimbursements against
its costs in the consolidated statements of income. As a result of this
required adoption and certain similar reclassifications, revenues reported
for the third quarters of 2002 and 2001 have increased by $22.0 million and
$20.0 million, respectively, for reimbursed out-of-pocket expenses that
include postage, delivery, telecommunication, and other costs. These
reclassifications, which have no impact on operating income or net income,
increased segment revenues and costs of services as follows (in millions):
2001 2002
---------------------------------------------------------- ---------------------------------
1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR 1ST QTR 2ND QTR 3RD QTR
------- ------- ------- ------- ------ ------- ------- -------
Card Services $ 17.7 $ 18.6 $ 16.2 $ 16.4 $ 68.9 $ 16.9 $ 20.1 $ 17.2
Check Services 3.0 3.7 3.8 5.4 15.9 4.0 4.3 4.8
------ ------ ------ ------ ------ ------ ------ ------
$ 20.7 $ 22.3 $ 20.0 $ 21.8 $ 84.8 $ 20.9 $ 24.4 $ 22.0
====== ====== ====== ====== ====== ====== ====== ======
2. REVENUES BY PRODUCT AND SERVICE OFFERING ARE AS FOLLOWS (IN MILLIONS):
2001 2002
---------------------------------------------------------- ---------------------------------
1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR 1ST QTR 2ND QTR 3RD QTR
------- ------- ------- ------- ------ ------- ------- -------
Card Issuer Services $102.5 $106.1 $113.6 $111.9 $434.1 $107.7 $116.1 $110.6
Check Services 66.7 70.5 75.2 92.0 304.4 77.6 82.9 86.9
Merchant Processing Services 44.6 46.8 48.0 48.2 187.6 48.5 54.3 54.1
Software and Support 1.9 4.3 1.2 2.4 9.8 1.0 2.1 2.9
------ ------ ------ ------ ------ ------ ------ ------
$215.7 $227.7 $238.0 $254.5 $935.9 $234.8 $255.4 $254.5
====== ====== ====== ====== ====== ====== ====== ======
Reclassifications required by EITF 01-14 increased revenues by product and
service offering as follows:
2001 2002
---------------------------------------------------------- ---------------------------------
1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR 1ST QTR 2ND QTR 3RD QTR
------- ------- ------- ------- ------ ------- ------- -------
Card Issuer Services $ 16.5 $ 17.3 $ 15.0 $ 15.3 $ 64.1 $ 15.8 $ 19.0 $ 16.0
Check Services 3.0 3.7 3.8 5.4 15.9 4.0 4.3 4.8
Merchant Processing Services 1.1 1.3 1.2 1.1 4.7 1.0 1.0 1.1
Software and Support 0.1 -- -- -- 0.1 0.1 0.1 0.1
------ ------ ------ ------ ------ ------ ------ ------
$ 20.7 $ 22.3 $ 20.0 $ 21.8 $ 84.8 $ 20.9 $ 24.4 $ 22.0
====== ====== ====== ====== ====== ====== ====== ======
3. REVENUES BY GEOGRAPHIC AREA (BASED ON LOCATION OF CUSTOMER) ARE AS FOLLOWS
(IN MILLIONS):
2001 2002
---------------------------------------------------------- ---------------------------------
1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR 1ST QTR 2ND QTR 3RD QTR
------- ------- ------- ------- ------ ------- ------- -------
Domestic $176.0 $186.9 $196.9 $207.2 $767.0 $190.0 $208.7 $210.0
International 39.7 40.8 41.1 47.3 168.9 44.8 46.7 44.5
------ ------ ------ ------ ------ ------ ------ ------
$215.7 $227.7 $238.0 $254.5 $935.9 $234.8 $255.4 $254.5
====== ====== ====== ====== ====== ====== ====== ======
Reclassifications required by EITF 01-14 increased revenues by geographic
area as follows:
2001 2002
---------------------------------------------------------- ---------------------------------
1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR 1ST QTR 2ND QTR 3RD QTR
------- ------- ------- ------- ------ ------- ------- -------
Domestic $ 19.2 $ 20.8 $ 18.3 $ 19.6 $ 77.9 $ 18.6 $ 22.6 $ 20.7
International 1.5 1.5 1.7 2.2 6.9 2.3 1.8 1.3
------ ------ ------ ------ ------ ------ ------ ------
$ 20.7 $ 22.3 $ 20.0 $ 21.8 $ 84.8 $ 20.9 $ 24.4 $ 22.0
====== ====== ====== ====== ====== ====== ====== ======
ATTACHMENT PAGE 5 OF 7
CERTEGY INC.
SUPPLEMENTAL INFORMATION, CONTINUED
(Unaudited)
4. INTERCHANGE FEES INCLUDED IN MERCHANT PROCESSING SERVICES REVENUES AND COSTS
OF SERVICES ARE AS FOLLOWS (IN MILLIONS):
The Company's Card Services segment includes merchant processing contracts
directly with merchants and with merchants' financial institutions. When the
Company has a direct relationship with the merchant, revenues collected are
primarily based on a discount rate, which considers the cost of interchange
fees (processing fees paid to credit card associations). When the merchant
relationship is with the financial institution, the Company collects
transaction fees plus the interchange fees. In both instances, the Company
is responsible for collecting the interchange fees from the merchant after
settling with the credit card associations. Interchange fees are recorded as
a component of revenues and costs of services. Interchange fees included in
revenues and costs of services are as follows:
2001 2002
---------------------------------------------------------- ---------------------------------
1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR 1ST QTR 2ND QTR 3RD QTR
------- ------- ------- ------- ------ ------- ------- -------
Interchange Fees $ 34.7 $ 36.4 $ 37.2 $ 37.8 $146.1 $ 39.5 $ 43.9 $ 43.8
====== ====== ====== ====== ====== ====== ====== ======
5. CHECK VOLUMES IN DOLLARS ARE AS FOLLOWS (IN BILLIONS):
2001 2002
---------------------------------------------------------- ---------------------------------
1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR 1ST QTR 2ND QTR 3RD QTR
------- ------- ------- ------- ------ ------- ------- -------
Domestic $ 6.1 $ 6.8 $ 7.0 $ 9.1 $ 29.0 $ 7.1 $ 7.7 $ 7.7
International 0.8 0.8 0.7 0.8 3.1 0.8 0.8 0.9
------ ------ ------ ------ ------ ------ ------ ------
$ 6.9 $ 7.6 $ 7.7 $ 9.9 $ 32.1 $ 7.9 $ 8.5 $ 8.6
====== ====== ====== ====== ====== ====== ====== ======
Guarantee $ 5.0 $ 5.4 $ 5.6 $ 7.3 $ 23.3 $ 6.0 $ 6.4 $ 6.6
Verification 1.9 2.2 2.1 2.6 8.8 1.9 2.1 2.0
------ ------ ------ ------ ------ ------ ------ ------
$ 6.9 $ 7.6 $ 7.7 $ 9.9 $ 32.1 $ 7.9 $ 8.5 $ 8.6
====== ====== ====== ====== ====== ====== ====== ======
6. NUMBER OF CARDS AND ACCOUNTS PROCESSED (END OF PERIOD) ARE AS FOLLOWS
(IN MILLIONS):
2001 2002
------------------------------------------------ -----------------------------------
1ST QTR 2ND QTR 3RD QTR 4TH QTR 1ST QTR 2ND QTR 3RD QTR
------- ------- ------- ------- ------- ------- -------
Cards:
Domestic 20.9 21.4 21.7 21.5 21.9 22.0 22.2
International 14.0 16.0 19.3 20.2 21.3 22.0 24.0
---- ---- ---- ---- ---- ---- ----
34.9 37.4 41.0 41.7 43.2 44.0 46.2
==== ==== ==== ==== ==== ==== ====
Accounts:
Domestic 16.0 16.4 16.6 16.5 16.7 16.9 17.1
International 12.5 14.3 17.1 17.9 18.9 19.3 20.5
---- ---- ---- ---- ---- ---- ----
28.5 30.7 33.7 34.4 35.6 36.2 37.6
==== ==== ==== ==== ==== ==== ====
7. MERCHANT VOLUMES IN DOLLARS AND NUMBER OF TRANSACTIONS ARE AS FOLLOWS:
2001 2002
---------------------------------------------------------- ---------------------------------
1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR 1ST QTR 2ND QTR 3RD QTR
------- ------- ------- ------- ------ ------- ------- -------
Dollars (in billions) $ 1.9 $ 2.1 $ 2.1 $ 2.1 $ 8.2 $ 2.2 $ 2.4 $ 2.4
====== ====== ====== ====== ====== ====== ====== ======
Number of Transactions
(in millions) 25.0 27.4 28.1 28.7 109.2 30.9 33.7 33.6
====== ====== ====== ====== ====== ====== ====== ======
ATTACHMENT PAGE 6 OF 7
CERTEGY INC.
SUPPLEMENTAL INFORMATION, CONTINUED
(Unaudited)
8. CURRENCY TRANSLATION INCREASED (DECREASED) REVENUES AND OPERATING INCOME IN
2002 AS FOLLOWS (IN MILLIONS):
REVENUES
----------------------------------------------
1ST QTR 2ND QTR 3RD QTR YTD
------- ------- ------- ------
Card Services $(2.9) $(0.7) $(1.7) $(5.3)
Check Services (0.3) 0.3 0.9 0.9
----- ----- ----- -----
$(3.2) $(0.4) $(0.8) $(4.4)
===== ===== ===== =====
OPERATING INCOME
----------------------------------------------
1ST QTR 2ND QTR 3RD QTR YTD
------- ------- ------- ------
Card Services $(0.2) $ -- $(0.4) $(0.6)
Check Services -- 0.1 0.2 0.3
----- ----- ----- -----
$(0.2) $ 0.1 $(0.2) $(0.3)
===== ===== ===== =====
9. DEPRECIATION AND AMORTIZATION BY SEGMENT IS AS FOLLOWS (IN MILLIONS):
2001 (HISTORICAL) 2002
---------------------------------------------------------- ---------------------------------
1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR 1ST QTR 2ND QTR 3RD QTR
------- ------- ------- ------- ------ ------- ------- -------
Card Services $ 8.9 $ 9.5 $ 10.1 $ 10.3 $ 38.8 $ 8.1 $ 7.9 $ 8.0
Check Services 1.5 1.5 1.7 2.1 6.8 1.8 1.6 1.7
Corporate -- -- -- 0.1 0.1 0.1 0.1 0.1
------ ------ ------ ------ ------ ------ ------ ------
$ 10.4 $ 11.0 $ 11.8 $ 12.5 $ 45.7 $ 10.0 $ 9.6 $ 9.8
====== ====== ====== ====== ====== ====== ====== ======
In accordance with SFAS 142, "Goodwill and Other Intangible Assets,"
amortization of goodwill ceased effective January 1, 2002. The pro forma
2001 depreciation and amortization amounts presented below exclude goodwill
amortization expense as if the standard had been effective January 1, 2001.
2001 (PRO FORMA)
------------------------------------------------------
1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR
------- ------- ------- ------- -----
Card Services $ 7.1 $ 7.6 $ 8.0 $ 8.2 $30.9
Check Services 1.3 1.3 1.5 1.9 6.0
Corporate -- -- -- 0.1 0.1
----- ----- ----- ----- -----
$ 8.4 $ 8.9 $ 9.5 $10.2 $37.0
===== ===== ===== ===== =====
10. CAPITAL EXPENDITURES AND ACQUISITIONS ARE AS FOLLOWS (IN MILLIONS):
2001 2002
---------------------------------------------------------- ---------------------------------
1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR 1ST QTR 2ND QTR 3RD QTR
------- ------- ------- ------- ------ ------- ------- -------
Capital expenditures $ 12.3 $ 14.4 $ 14.0 $ 8.6 $ 49.3 $ 12.1 $ 14.7 $ 12.8
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Acquisitions, net of
cash acquired $ -- $ 55.5 $ 23.5 $ -- $ 79.0 $ -- $ -- $ --
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ATTACHMENT PAGE 7 OF 7