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Exhibit 99.1
NPC
Consultants in Transaction Technology
FOR INFORMATION CONTACT:
Jim Cate Thomas A. Richlovsky
Press Release Executive Vice President Senior Vice President
Chief Financial Officer Investor Relations
(502)326-7050 (216)575-2126
For Immediate Release
NATIONAL PROCESSING REPORTS FIRST QUARTER RESULTS
LOUISVILLE, Kentucky-April 15, 1999-National Processing, Inc. (NYSE:NAP)
today reported a net loss of $68,185,000 or $1.35 per share for the three
months ended March 31, 1999. Included in first quarter results were pre-tax
restructuring charges of $2,234,000, for the closure and relocation of certain
processing facilities and an estimated impairment loss of $73,932,000 to provide
for the sale, liquidation or disposal of the Freight Payables, Payables
Outsourcing, Remittance, and Merchant Check Services business lines. Absent the
aforementioned charges, net income increased 16% for the first quarter and was
$5,674,000 or $.11 per share, compared to $4,908,000 or $.10 per share for the
corresponding period of 1998. Revenues were $124,463,000, up 10% from
$113,649,000 in 1998's first quarter.
The first quarter results reflect significant year-over-year gains in
revenues (up 15%) and net income (up 50%) for the Company's combined core units.
Those units include Merchant Card Services, Travel Services, and Outsourcing
Services. Revenues for these units for the first quarter of 1999 were
$83,882,000 and net income totaled $6,185,000.
The business lines being held for sale, liquidation, or disposal had
revenues and net income (loss) of $40,581,000 and ($511,000), respectively, in
the first quarter of 1999, compared to $41,105,000 and $780,000, respectively,
in the first quarter of 1998.
National Processing is a leading provider of transaction processing
services and customized processing solutions. Approximately 88 percent of the
company is owned by National City Corporation (NYSE:NCC).
(more)
One Oxmoor Place
101 Bullitt Lane, Suite 450 Telephone 502.326.7000
Louisville, KY 40222 Facsimile 502.326.7100
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NATIONAL PROCESSING, INC.
FINANCIAL SUMMARY
(In thousands, except per share amounts)
(Unaudited)
Percent
THREE MONTHS ENDED MARCH 31: 1999 1998 Change
---- ---- -------
Revenues $124,463 $113,649 10%
Operating expenses 60,497 52,432 15
Wages and other personnel expenses 31,096 32,023 (3)
General and administrative expenses 16,807 14,701 14
Restructuring charges 2,234 - -
Impairment loss and related expenses 73,932 - -
Depreciation and amortization 7,086 6,250 13
-------- --------
OPERATING (LOSS) PROFIT (67,189) 8,243 -
Net interest income 18 341 (95)
-------- --------
(Loss) income before income taxes (67,171) 8,584 -
Provision for income taxes 1,014 3,676 (72)
-------- --------
NET (LOSS) INCOME ($68,185) $ 4,908 -
======== ======== -
NET (LOSS) INCOME PER SHARE--DILUTED ($1.35) $0.10 -
======== ========
Shares used in computation 50,645 50,833 -
EXCLUDING RESTRUCTURING CHARGES AND IMPAIRMENT LOSS:
Pre-Tax Earnings $ 8,995 $ 8,584 5%
Taxes 3,321 3,676 (10)
-------- --------
Net Income 5,674 4,908 16
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Per Share $0.11 $0.10 16
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RESTRUCTURING CHARGES AND IMPAIRMENT LOSS:
Pre-Tax (Loss) (76,166) - -
Tax (Benefit) (2,307) - -
--------
After-Tax (Loss) (73,859) - -
========
Per Share ($1.46) - -
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TOTAL:
Pre-Tax(Loss) Earnings (67,171) 8,584 -
Taxes 1,014 3,676 (72)
-------- --------
Net (Loss) Income (68,185) 4,908 -
======== ======== -
Per Share ($1.35) $0.10 -
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