Visa has deposit $450 million into the litigation escrow account previously established under the Company’s retrospective responsibility plan (the “Plan”). Under the terms of the Plan, when the Company funds the litigation escrow account, the value of the Company’s Class B shares – which are held exclusively by U.S. financial institutions and their affiliates and successors – are subject to dilution through an adjustment to the conversion rate of the shares of class B common stock to shares of class A common stock.
American Express announced its approved plan as part of the 2014 Comprehensive Capital Analysis and Review (CCAR). It included increasing the Company’s quarterly dividend to 26 cents per share beginning with the second quarter 2014 dividend declaration, subject to approval by the Company’s board of directors; repurchasing up to $4.4 billion of common shares during…
Discover Financial Services has approved a share repurchase program to purchase up to $1 billion of its common stock. The program expires on June 14, 2013, and may be terminated at any time. The company expects to make share repurchases from time to time based on market conditions and other factors, subject to legal or regulatory restrictions. Discover Financial Services is a direct banking and payment services company with one of the most recognized brands in U.S. financial services.
Wright Express payment processing and information management services reported financial results for 2Q/10 with revenue having increased 17% to $91.4 million from $77.9 million the year ago period. Wright total fuel transactions processed were level with the 2Q/09 at 66.3 million; payment processing transactions increased 2.5% to 52.9 million, and transaction processing transactions declined 8% to 13.4 million; total revenue for the fleet segment grew 15% from the second quarter of 2009 to $78.4 million; fleet payment processing revenue increased 23% from the second quarter of 2009 to $54.5 million; average expenditure per payment processing transaction increased 24% from the second quarter of 2009 to $58.74; average retail fuel price increased 23% to $2.87 per gallon from $2.33 per gallon in 2Q/09; total MasterCard purchase volume grew 34% to $1,036 million, from $771 million for 2Q/09. For the full year 2010, the Company expects revenue in the range of $354 million to $364 million.
U.S. Bancorp reports that third quarter merchant acquiring volume declined 7% year-on-year to $62.0 billion, compared to an 11% year-on-year decline in the second quarter, as the number of merchants rose to 855,498. Payment Services contributed $67 million of the Companyâs net income in the third quarter, a decrease of 67% from 3Q/08, but a 24% increase over the prior quarter. The decline year-over-year was primarily due to a $223 million increase in the provision for credit losses. Net interest income increased 22.5% to $55 million due to strong growth in credit card balances, partially offset by the cost of rebates on the government card program. Total noninterest expense increased by $64 million (16.2%), principally due to marketing and business development expense related to new credit card products. Average credit card outstandings rose 7.4% to $15.4 billion. Charge volume decreased 4.5% to $20.95 billion. For complete detail on U.S. Bancorp’s latest results visit CardData (www.carddata.com).
MERCHANT ACQUIRING VOLUME HISTORICAL
Source: CardData (www.carddata.com)
Las Vegas-based Global Cash Access reported that second quarter revenues rose 3.7% to $173 million. Income from continuing operations in the second quarter was $9.1 million, up 8.4% from the second quarter of 2008. The Company also announced a deal to acquire Western Money Systems for $15 million. WMS is a developer, manufacturer and distributor of cash-handling products to the gaming industry and is one of the top manufacturers and distributors of redemption kiosks to gaming. The transaction is not expected to close until 2010. The Company has observed continued weakness in the markets it serves and believes that weakness will be more prolonged than previously anticipated. The Company now believes that revenue will be at or slightly below the low end of its previously issued expectations for 2009 of between $700 and $730 million. For complete details on GCA’s second quarter performance visit CardData (www.carddata.com).
American Express and Chase have tapped the equity markets to begin
repaying the funds the received under the “Troubled Asset Relief
Program.” Chase is seeking to raise $5 billion while AmEx is seeking to
raise at least $500 million. AmEx is offering 19.8 million shares of its
common stock at a price to the public of $25.25 per share. AmEx says the
capital raised will be used for general corporate purposes which may
include the partial funding of a repurchase of $3.4 billion of preferred
shares issued to the U.S. Treasury as part of the “Capital Purchase
Program.” Last month, AmEx announced it was seeking permission to repay
the government investment, after receiving a final report from the
Federal Reserve that concluded there would be “no capital need” under
the more adverse assumptions used by the “Supervisory Capital Assessment
Program.” Chase says it is raising the funds in common equity to satisfy
a supervisory condition that the largest bank holding companies
redeeming TARP. While approval has not been granted, the company
believes that upon completion of this capital raise it will have
satisfied the criteria for fully redeeming the TARP preferred capital
and expects to do so before the end of June. Chase expects to have “Tier
One Capital” of approximately $118 billion or 9.3% and “Tier One Common”
of approximately $93 billion or 7.3% at the end of the second quarter,
after the capital raise and the “TARP” preferred capital redemption.
ME-based fuel card specialist Wright Express posted an 11% drop in fourth quarter revenue to $80.9 million. On a non-GAAP basis, the
Companyâs adjusted net income for the fourth quarter was $12.5
million, compared with $19.7 million for the year-earlier period. Total fuel transactions processed increased 6% from 4Q/07 to 66.9 million. However, payment processing transactions decreased 4% to 51.5 million, and transaction processing transactions increased 58% to 15.3 million.
Average expenditure per payment processing transaction decreased
16% from the fourth quarter of 2007 to $52.69. Average retail fuel price declined 15% to $2.59 per gallon from $3.06 per gallon in the fourth quarter of 2007. Total MasterCard purchase volume grew 21% to $586 million, from $484 million for the fourth quarter of 2007. First quarter adjusted net income is expected to be in the range of $10 million to $12 million. For complete details on Wright Express’ latest performance visit CardData ([www.carddata.com](http://www.carddata.com)).
VA-based Portfolio Recovery Associates reported that second quarter net income grew 17% over 2Q/06 to $13.0 million. Total revenue in the second quarter increased 19% to $54.8 million. The Company purchased $2.5 billion of face-value debt during the second quarter for $63.4 million, the second-largest amount the Company has spent on debt acquisitions in a single quarter. The debt was acquired in 58 pools from 27 different sellers. Cash collections rose 9% to $64.6 million in the second quarter. The Company’s fee-for-service businesses generated revenue of $8.4 million in the second quarter, up 45% over 2Q/06. The Company also announced the appointment of Kent McCammon to the new position of Senior Vice President, Strategy and Business Development. For complete details on Portfolio Recovery Associates’ second quarter performance visit CardData ([www.carddata.com]).
WA-based Coinstar posted net income of $5.0 million for 4Q/06 compared to $5.5 million one-year ago. Revenues for the period were $138.0 million, compared to $125.6 million for the prior year’s quarter. Management estimates that revenue for the quarter ending March 31st will range from $125 million to $135 million. During the quarter, Coinstar launched “Direct Coin Deposit,” a new service that enables bank and credit union customers to electronically transfer coins into personal accounts. Last year, the Company signed a deal to purchase London-based Travelex Money Transfer for approximately $27 million in cash. Coinstar, known for its green consumer coin counting machines in supermarkets, has its products and services in more than 60,000 retail locations. For complete details on Coinstar’s latest results, visit CardData ([www.carddata.com]). (CF Library 5/5/06; 10/26/06)
Minneapolis-based Ceridian reported that third quarter revenue for its Comdata payments unit increased 13% year-on-year to $123.8 million. The Company said higher fuel prices accounted for about 1% of the increase. Both Comdata’s transportation and retail businesses grew in double digits during the quarter, driven by new client signings, continued traction in new service offerings, and strong organic growth both domestically and internationally. During the third quarter, Comdata released two surveys one showing that a third of teenagers are purchasing gift cards at gift card malls and another one showing that 95% of adult survey respondents stated that they had either received or purchased a gift card, a 24% gain over the prior year. Comdata also recently announced a new brand identity to consolidate all of Comdata’s business units under the Comdata name. Comdata projects revenue for 2006 is expected to be between $460 million and $465 million. For complete details on Ceridian’s third quarter performance, visit CardData ([www.carddata.com]).
3Q/05: $109.5 million
4Q/05: $104.7 million
1Q/06: $104.4 million
2Q/06: $115.8 million
3Q/06: $123.8 million
Source: CardData (www.carddata.com)
Alliance Data Systems reported that third-quarter revenue increased 32% to a record $506.6 million and net income rose 36% to $48.8 million, compared to the year ago quarter. Transaction Services segment revenue increased 9% to $195.6 million. The vast majority of this segment consists of two growth engines, private label and utility services. Credit Services segment revenue increased 32% in the third quarter to $181.4 million. Credit sales increased 17% year-on-year, the largest percentage increase in over two and a half years. Marketing Services segment revenue increased 50% to $218.6 million. Results were driven by stronger-than-expected performance in the “AIR MILES” reward program. ADS is now projecting 2007 revenue of at least $2.1 billion and an adjusted EBITDA of at least $575.0 million. For complete details on ADS’ third quarter performance, visit CardData ([www.carddata.com]).