TNS total 4Q/10 revenue for was down 1.7% to $135.1 million from the year ago figure of $137.5 million. Adjusted earnings decreased 21.1% to $14.5 million, compared to adjusted earnings of $18.4 million in 4Q/09. Revenues from the Telecommunication Services Division decreased 3.0% to $66.3 million from 4Q/09 revenue of $68.4 million, thanks in part to acquisition of Cequint having contributed revenues of $2.3 million. However, revenue from the identity and verification services decreased 9.5%, or $2.9 million; revenue from network services decreased 3.2%, or $0.9 million; and revenue from registry services decreased 10.5%, or $0.8 million, due to a decrease of $1.1 million in TNS’ service order administration business which was partially offset by an increase of $0.3 million from IP registry services. TNS acquired Cequint on October 1, 2010 and has included their results in the Telecommunication Services Division from the dates of acquisition.
TNS data communications services posted total revenue for the 3Q/10 having dropped 6.3% to $131.2 million from the 3Q/09 revenue of $140.1 million. On a constant dollar basis, revenues increased 5.2% to $132.8 million while GAAP net income was $4.0 million compared to the year ago figure of $3.2 million. For the Payments Division alone, revenue dropped 2.4% to $50.0 million from the year ago figure of $51.3 million. Revenue from the European payments business increased 9.5% by $2.4 million thanks to a $2.2 million gains in market share and a $0.3 million increase in card present gateway revenue, partially offset by a reduction of $0.1 million due to the loss of an ATM processing customer. Revenue from the payments business in Asia Pacific increased 9.3% due to an increase of 33% of card not present gateway revenue. Revenue from the payments business in North America decreased 13.6% thanks to a decrease of $2.0 million relating to pricing compression and transaction volume declines related to certain dial customers; $0.8 million from TNS’ ATM software product referred to as SONIC; and a $0.5 million reduction in TNS’ Canadian ATM processing business. Revenues generated outside North America, formerly reported as the International Services Division (ISD), are now incorporated into Payments and Financial Services, respectively.
TNS REV HISTORIC
2Q/09: $122 million
3Q/09: $140 million
4Q/09: $138 million
1Q/10: $130 million
2Q/10: $131 million
3Q/10: $133 million
TNS transaction service reported 2Q/10 total revenue up 7.6% to $131.2 million since the year ago figure of $122.0 million, up 7.7% to $131.3 million on a constant currency basis. EBITDA increased 12.3% to $35.3 million, or 26.9% of revenue, versus $31.5 million, or 25.8% of revenue, in 2Q/09. Adjusted earnings increased 18.2% to $15.5 million compared to adjusted earnings of $13.1 million in 2Q/09. Revenue from the Payments Division increased 3.1% to $50.3 million from $48.8 million in second quarter 2009. Excluding the negative impact of foreign currency translation of $0.2 million, revenues increased $1.7 million on a constant currency basis. Revenue from the European payments business increased $1.4 million due to a $1.9 million increase related to market share gains which was partially offset by a reduction of $0.4 million due to the loss of an ATM processing customer; revenue from the payments business in Asia Pacific increased $0.2 million due to an increase of $0.6 million associated with increases in payment gateway services revenue; and revenue from the payments business in North America increased $0.1 million due to revenue from an equipment sale of $1.4 million.
Wells Fargo reported its first quarter net charge-offs were $5.33 billion,
or 2.71% of average loans (annualized), compared with fourth quarter net
charge-offs of $5.41 billion, also of 2.71%. Loans 90 days or more past due
and still accruing totaled $21.8 billion at March 31, 2010, and $22.2 billion
at December 31, 2009. Wells Fargo card loans totaled $22,525,000,000, compared
with $24,003,000,000 for the previous quarter and $22,815,000,000 the year-ago
period. Of this, net loan charge-offs totaled $643 million (11.7%).
WELLS FARGO CARD LOANS
Source: CardData (www.carddata.com)
Citigroup today reported 1Q/10 net income of $4.4 billion or $0.15 per diluted share, and revenues having grown $7.5b to $25.4b. RCB net credit losses were $2.2 billion, up $122 million or 6%, due to an increase in loans 90+ days past due in the fourth quarter of 2009 in Citi-branded cards. The $4 million net loan loss reserve build was down from $71 million in the prior quarter. EMEA RCB net credit losses were $97 million, down $41 million or 30%. The $10 million net loan loss reserve release in the quarter compared to a $10 million net build in the prior quarter. Net credit losses in Retail Partner Cards were $1.9 billion, down 2% sequentially, reflecting loss mitigation efforts and continued decline in loans. International net credit losses declined $172 million, or 22%, sequentially to $612 million, reflecting continued improvement in credit trends. Provisions for credit losses and for benefits and claims declined $2.4 billion sequentially to $8.6 billion, the lowest level since the first quarter of 2008. Total provisions for credit losses and for benefits and claims of $8.6 billion declined $2.4 billion or 22% sequentially, to the lowest level since the first quarter of 2008.
Data communication provider TNS has released its Q4 results.
Total revenue for the fourth quarter of 2009 increased 69.6% to $137.5
million from fourth quarter 2008 revenue of $81.1 million.
Fourth quarter 2009 GAAP net loss was $5.7 million, or $(0.21) per
share, versus fourth quarter 2008 GAAP net loss of $1.0 million, or
$(0.04) per share. Included in the GAAP net loss for the fourth quarter 2009 results are
the following items related to the refinancing of the May 2009 Credit
Facility in November 2009: The write off of $21.9 million, or ($0.52)
per share, of deferred financing fees and original issue discount; and
The write off of $3.3 million, or ($0.07) per share, of term loan call
premium. Earnings before interest, taxes, depreciation, and amortization (EBITDA)
before stock compensation expense for the fourth quarter of 2009
increased 86.8% to $39.3 million versus $21.0 million for the fourth
quarter of 2008. Adjusted earnings increased 80.4% to $18.4 million, or $0.69 per share,
for the fourth quarter of 2009 compared to adjusted earnings of $10.2
million, or $0.40 per share, for the fourth quarter of 2008.
Atlanta-based sub-prime card specialist CompuCredit reported a first quarter 2009 GAAP net loss from continuing operations attributable to controlling interests of $112.5 million and a first quarter 2009 managed loss from continuing operations attributable to controlling interests of $121.6 million, or $2.59 per fully diluted common share, which compares to first quarter 2008 managed losses from continuing operations attributable to controlling interests of $103.3 million, or $2.21 per fully diluted common share. On January 1, 2009, CompuCredit implemented FASB Staff Position APB 14-1 “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)” to account for CompuCredit’s outstanding convertible senior notes. As a result, prior periods’ consolidated financial statements have been retrospectively adjusted to present them as though APB 14-1 were effective in those prior periods. CompuCredit’s management, analysts, investors and others believe it is critical that they understand the credit performance of the entire portfolio of CompuCredit’s managed receivables because it reveals information concerning the quality of loan originations and the related credit risks inherent within the securitized portfolios and CompuCredit’s retained interests in its securitization facilities. For complete details on CompuCredit’s fourth quarter performance, visit CardData ([www.carddata.com](http://www.carddata.com)).
TSYS reports that revenues decreased 2.6% in the first quarter to $408.9 million. The Company also announced it is unloading its TSYS Debt Management unit as it is no longer a good strategic fit. TSYS says cardholder transaction volumes decreased 4.3%, and its POS volume increased only 1%. North America Services posted total segment revenues were $268.8 million, a decrease of 6.3%. The segment processed 1.48 billion transactions, a decrease of 6.8% and transactions for same clients were 1.47 billion, a decrease of 2.8%. International Services posted total segment revenues were $73.8 million, an increase of 5.7%. Merchant Services reported total revenues of $75.5 million, an increase of 6.4%. The Company is projecting total annual revenues of $1,637 million to $1,665 million or a decline of 5% to 3%. For complete details on TSYS’ latest results visit CardData ([www.carddata.com](http://www.carddata.com)).
UT-based iMergent posted revenues for the fourth calendar quarter of $27 million, a 31% decline due to fewer workshops, general negative economic conditions and customer refunds. The Company had a loss from operations of $7 million, compared to a loss from operations of $143,000 in the same quarter last year. Last month, the Company announced it will reduce its workforce by approximately 25%, bringing its total workforce to approximately 250. Also, CFO Robert Lewis resigned on February 6th, replaced by iMergent’s Controller, Jonathan Erickson. In December, Brandon Lewis resigned as the company’s president and COO, effective March 9, 2009. Lewis also resigned as a director effective immediately, and the board will consist of six members. iMergent provides eCommerce software for small businesses. For complete details on iMergent’s latest results visit CardData ([www.carddata.com](http://www.carddata.com)).
New analysis suggests that the “Term Asset-Backed Securities Loan Facility” is likely to have only marginal success in its current form and may amount to a virtual freeze-up of the U.S. consumer credit markets, partly because of lack of funding hitherto available from ABS.
The TowerGroup report entitled “Can TALF Save U.S. Consumer Lending, or Have Forces Already Killed the Goose That Laid the Golden Egg?,” finds that the proposed rule changes by the Financial Accounting Standards Board would repatriate billions of dollars of credit card debt onto card issuersâ balance sheets, effectively changing the character of the U.S. credit card industry indefinitely. Also, the size of “TALF” as initially configured is dwarfed by the size of the market of outstanding asset-backed securities; “TALF” does not address lendersâ anxiety about the source of their funding and the flexibility of their portfolio management, especially regarding recent changes to rules and legislation; and the proposed changes by the Federal Reserve Board and legislation before both houses of Congress could inhibit pricing flexibility and reconfigure the risk profile of U.S. consumer lending.
However, TowerGroup notes that a positive provision of “TALF” is its focus on new loans to stimulate activity for small business lending and consumer loans, including auto loans, student loans, and credit cards.
Wells Fargo reported that charge-offs hit 5.01% for the fourth quarter, compared to 4.30% in the prior quarter. The issuer also reported that credit card outstandings rose nearly 10% sequentially and are now up 28% year-on-year. Wells noted that about one-third of the $47 million increase in charge-offs was due to growth, but the rest reflected rising consumer stress. Total credit card charge-offs for the quarter were $253 million, compared to $154 million for the fourth quarter of last year. Outstandings topped $18.8 billion for 4Q/07, compared to $17.1 billion in the prior quarter and $14.7 billion for 4Q/06. Wells also reported that debit and credit card fees rose 22% to $588 million in the fourth quarter. For complete details on Wells Fargo’s fourth quarter performance, visit CardData ([www.carddata.com]).
WELLS FARGO CARD OUTSTANDINGS
4Q/06: $14.7 billion
1Q/07: $14.6 billion
2Q/07: $15.6 billion
3Q/07: $17.1 billion
4Q/07: $18.8 billion
Source: CardData (www.carddata.com)
OH-based Diebold reported a first quarter loss of $5.9 million, compared to net income of $12.7 million for the first quarter of 2006. Company revenue of $628.4 million, rose less than 1% over 1Q/06. Diebold says the loss was related to the closing of the manufacturing facility in France. In March, the Company finalized an agreement with the remaining union that was legally challenging the closure of the facility, and all the unions have agreed to the related social plan. During the quarter, Diebold continued to ramp up production at its new manufacturing facility in Budapest producing approximately 1,700 “Opteva” ATMs. The company is on target to produce approximately 10,000 ATMs in Hungary in 2007. The facility is now the primary source of ATMs for the Diebold EMEA market. Total orders for ATMs and security products and services were down slightly compared to the prior year period. ATM orders declined due primarily to a large, non-recurring order with a single customer in Canada. Outside of Canada, ATM orders in the Americas were up in the high single digits. Asia Pacific ATM orders declined in the low double-digit range, as several large orders in China were delayed to the second and third quarters. For complete details on Diebold’s first quarter performance visit CardData ([www.carddata.com]).