InteliData Snags Gilhooly

InteliData Technologies a leading provider of Internet-based financial services and electronic bill payment and presentment software, announced that Karen Gilhooly will join the company as Vice President and General Manager of its Card Solutions group based in Omaha, Nebraska. Gilhooly will focus on revenue generation and managing the relationship with InteliData’s strategic partner, First Data Resources, also based in Omaha.

The InteliData Card Solutions division provides online solutions for the top credit card issuers in the card industry. This set of solutions affords the credit card holder the ability to monitor accounts and pay bills online.

“We are delighted to have Karen join our management team,” said Al Dominick, President and CEO of InteliData. “We believe her strong background in this industry will help build InteliData Card Solutions’ customer base, as Card issuers look to take advantage of the significant technological enhancements we’ve continued to make in our Card Solutions product.”

Gilhooly brings with her almost 20 years of experience in the banking technology industry. She most recently served as Senior Vice President and COO of Electronic Billing Systems for Princeton eCom. During her career she has held numerous positions with Citibank and Citicorp. She was also employed by Thomas Cook Financial Services.

About InteliData

InteliData delivers EBPP products to banks, credit unions and financial institution processors. InteliData provides solutions that power financial institutions’ Internet banking, payment and presentment and online credit and bankcard transactions.

Headquartered in Reston, Virginia, USA, InteliData is publicly traded (Nasdaq: INTD) and its business partners include Spectrum EBP, ALLTEL and other industry leaders. For more information, visit the company’s web site at .


Ruling Stay

The U.S. District Court for the Southern District of New York this week granted a stay in its ruling which ordered VISA and MasterCard to drop their exclusionary rules which prohibit members from issuing American Express or Discover cards. The stay will enable the card associations to pursue the appeals process and could run from two to three years. In October, Judge Barbara S. Jones issued a 157-page ruling which said VISA’s bylaw ‘210(e)’ and MasterCard’s ‘Competitive Programs Policy’ weaken competition and harm consumers in a number of ways. American Express said the development “was disappointing, but not surprising.” VISA said this week’s ruling “preserves the market structure of an industry” and avoids making the payment card business “subject to an academic experiment using untested remedies with unknown consequences.” MasterCard said the court recognized “the importance of maintaining the member business agreements pending appeal and the potentially irreversible consequences of imposing the Judgement.” The full text of the October court ruling is available on CardFlash Online ([][1]).



NextBank Closed

NextCard’s bank subsidiary, Phoenix-based NextBank, was shut-down late Thursday by the OCC and the FDIC was appointed receiver. The beleaguered issuer says it has been unable to find an acquisition partner and will now re-evaluate its business and operations strategies. On Jan 12th, NextCard notified the OCC that it was not possible to prepare and submit a ‘Capital Restoration Plan’, and said liquidation of the bank’s assets would not raise enough money to retire in-full the bank’s existing and anticipated liabilities. At year-end, NextBank had total assets of approximately $700 million and total deposits of approximately $554 million. The Internet-only bank has about 4,400 depositers holding jumbo CDs. The OCC determined that the bank was classifying some delinquent accounts sold into a securitization trust as fraud losses, although the delinquencies were actually attributable to credit quality problems. These assets were being repurchased by the bank at par, a practice that constituted sale of assets with recourse. This finding, together with significant accounting adjustments and the need for additional loan loss reserves, resulted in the bank becoming significantly undercapitalized. NextCard’s stock closed Thursday at 14 cents, a 26% decline from the previous session, and a new 52-week low. The stock traded at nearly $12.50 one year ago. NextCard has approximately $2 billion in card loans and 1.2 million accounts, according to CardData ([][1]). The company has not released its 4Q/01 earnings report. (CF Library 10/31/01; 1/31/02)



Idaho Tax Service

The Idaho State Tax Commission is making it easier for businesses and citizens to pay their taxes. The state of Idaho recently introduced a convenient online credit card payment option for most types of Idaho state taxes, including 2002 individual and business income taxes. Idaho’s tax center is available online at [][1], the state’s official website.

Idaho’s new tax payment services are easy to use, and a typical tax payment can be processed in just a few minutes. Visitors to the Tax Commission’s website ([][2] or [][3]) only need to enter a taxpayer identification number, select the type of tax to be paid from a drop-down menu, and provide a credit card number.

More than $1.0 million in tax payments have been processed online since the service was launched in late December.

Both Visa and MasterCard payments are accepted through the tax website’s secure server. Taxpayers have the option of paying the balance due, making an extension payment or paying estimated taxes, or paying amounts owed for prior taxes. Credit cards can also be used to pay business income tax, sales tax, employer income tax withholding, and other business tax payments under $100,000. Any amount of individual income tax can be paid by credit card, and no additional fee is charged for using credit cards.

“We are delighted to offer a user-friendly tax payment solution to the citizens and businesses of Idaho,” said William Hart, financial officer for the Idaho State Tax Commission. “To my knowledge, Idaho is the only state in the nation that does not charge its constituents an additional fee to make credit card tax payments over the Internet.”

The tax payment system was developed and is maintained by Idaho Information Consortium, the subsidiary of eGovernment firm NIC (Nasdaq:EGOV) that manages accessIdaho on behalf of the state of Idaho.

The Tax Commission has also created a new credit card payment voucher (Form CCV) that allows taxpayers to fill in credit card information for processing by mail. Form CCV can be downloaded and printed from the Tax Commission’s “Forms” page of its website.

In addition to the online and voucher methods for paying Idaho taxes with credit cards, taxpayers can also make payments by calling or visiting any of the six Idaho Tax Commission offices.

About accessIdaho

accessIdaho is the state of Idaho’s homepage and official website ([][4]), a collaborative effort between the state of Idaho and Idaho Information Consortium. It was built and is marketed, operated, and maintained by Idaho Information Consortium, Inc., a wholly owned subsidiary of NIC.



Cadre Certified

Cadre, an enterprise security solution provider, announced a strategic partnership with Visa USA. After an in-depth qualification process, Cadre has been validated as an independent 3rd party security firm to verify merchant compliance with the Visa CISP security program.

“The purpose of the security review that Cadre provides for Visa is to insure and protect Visa cardholder information from unauthorized access,” says Lou Carli, Vice President for Cadre. “Cadre helps reduce fraud, identify security issues, and measure merchant compliance levels with the Visa security program.”

Visa has created the Cardholder Information Security Program (CISP) in order to verify a merchant has correctly implemented information security controls. The correct implementation of these controls dramatically reduces unauthorized access to Visa cardholder information.

“Within the Visa security assessment process, Visa, the merchant, and independent security firms such as Cadre have major roles and responsibilities in assessing merchant compliance,” emphasizes Lou Carli. “Partnering with the Visa has helped Cadre establish itself as a security assessment expert. This enhances our portfolio of security services and reinforces our reputation as the preeminent provider of enterprise security solutions.”

Cadre is a Cincinnati-based enterprise security solutions provider specializing in the sale, installation, support, training, and assessment of network security systems. Cadre has operations in Cincinnati OH, Indianapolis IN, Louisville KY, Pittsburgh PA, and Detroit MI.



MasterCard has been selected by the PULSE EFT network to provide future switching and settlement services. Both firms signed a letter of intent this week covering the principal terms of a five-year contract for access to the ‘MasterCard Debit Switch’. MasterCard is expected to assume responsibility for operation of PULSE’s EFT switch when the Association’s current services contract with JPMorgan Chase expires in September 2003. PULSE will process approximately one billion transactions in 2002. MasterCard expects to process approximately 1.2 billion transactions on the ‘MasterCard Debit Switch’ in 2002. When PULSE transactions are migrated to MasterCard in late 2003, the ‘MasterCard Debit Switch’ is expected to process more than 2.2 billion transactions, on an annualized basis. MasterCard has nearly 150 people in three locations exclusively engaged in processing debit transactions. PULSE said the long-term agreement will position the network to continue to operate independently while taking advantage of technical resources of the payments company.


Major LaserCard Order

Drexler Technology Corporation has received a $1.6 million order for multi-biometric LaserCard ID cards for a new customer. The card order was received through a value-added reseller and systems integrator, Information Spectrum, Inc. (, of Annandale, Virginia.

The $1.6 million LaserCard order calls for deliveries of 70,000 optical memory ID cards per month for five months starting in June 2002.

Drexler Technology does not have authorization to publicly disclose the customer’s name or the specific customer application.

Headquartered in Mountain View, Drexler Technology Corporation ([][1]) develops and manufactures optical data storage products and systems, including LaserCard(R) optical memory cards and chip-ready Smart/Optical(TM) cards — a combination of optical memory card and smart card.

Drexler’s wholly owned subsidiary, LaserCard Systems Corporation, makes optical card read/write drives, develops optical card system software, and markets card-related data systems and peripherals. In addition to cards made for the U.S. Immigration and Naturalization Service and the U.S. Department of State, the Company also supplies optical memory cards to other customers, such as the U.S. Department of Defense, the Government of Italy, and a state government of India.




First Data Loan
Company, Canada (First Data Merchant Services Canada), one of Canada’s
MasterCard acquirers, has entered into a marketing agreement with VISA
Desjardins, the largest VISA issuer and acquirer in Que’bec, to provide
MasterCard acquiring to VISA Desjardins merchants. VISA Desjardins will
designate FDLCC as its partner provider of MasterCard processing for VISA
Desjardins-generated VISA merchants, and will promote the combined service
offering for acceptance of all card types throughout Desjardins’ network.
Under the arrangement, First Data will serve as the acquirer for all
payments and VISA Desjardins will provide VISA and Interac acquiring and
processing services.

VISA Desjardins will provide all VISA and MasterCard customer service for
merchants in the joint program, leveraging both FDMS Canada and VISA
systems capabilities to provide top quality service. The parties have
to assign dedicated sales staffing to promote the program throughout Canada,
and to explore certain program enhancements for the benefit of small business
customers, including the use of FDMS Canada’s automation tools, technology,
and products.

With this new relationship, both FDMS Canada and VISA Desjardins anticipate
strengthening their positions in the Canadian marketplace. FDMS Canada will
continue to utilize the merchant processing capabilities of First Data
Services. VISA Desjardins will continue to utilize its merchant processing
capabilities. This agreement is just the beginning of an exciting new
relationship aimed at leveraging the strengths of both companies to provide
best possible service to their customers.

About First Data Loan Company, Canada
First Data Loan Company, Canada (First Data Merchant Services Canada) is a
subsidiary of First Data Corp. and the third largest merchant acquirer for
MasterCard transactions in Canada. FDMS CANADA provides the
technology, reliability and redundancy that merchants demand by providing
solutions to merchants to safely and securely accept electronic payments.


CANADA offers point-of-sale processing via First Data Merchant Services. A
subsidiary of First Data Corp., First Data Merchant Services annually
and settles almost 9 billion transactions for more than $490 billion in sales
volume from 2.8 million merchant locations. First Data Corp. (NYSE: FDC),
with global headquarters in Denver, Colorado, USA, powers the world economy,
serving over 1,400 card issuers and millions of consumers worldwide. For more
information, please visit

About VISA Desjardins

VISA Desjardins, which is part of the Fe’de’ration des Caisses Desjardins du
Que’bec, is the largest VISA issuer and merchant acquirer in Que’bec. VISA
Desjardins has over 700 employees, serving more than 1.9 million cardholders
through its extensive Caisses Desjardins and Community VISA affiliated credit
unions throughout Canada. Desjardins also provides payment services to over
55,000 merchants. VISA Desjardins’ Merchant Acquiring sales volumes reached
$3.7 billion dollars in 2001. For more information, please visit


December Crash

The November rebound in revolving debt was wiped out in December as consumers cut total revolving credit by more than $7 billion. The surprise news blew a hole in the consensus that consumers were returning to more normal credit patterns following September 11th. The decline was the sharpest one month drop in more than a decade. According to the monthly figures released by the Federal Reserve yesterday, revolving credit, mostly credit card debt, stands at $683.8 billion. During December 2000, Americans added nearly $2.8 billion to revolving credit. At the end of December 2001, American consumers were $1.645 trillion in debt, exclusive of home mortgages.

Dec 01 Nov 01 Oct01 Sep01 Aug01 Jul01 Jun01
GRWTH: -14.2% 9.7 -7.1 0.6 -2.2 -3.7 2.1
$OWED: $683.8 691.9 686.4 692.7 693.5 698.1 700.3

May 01 Apr01 Mar01 Feb01 Jan01 Dec00 Nov00
GRWTH: 4.5% 14.2 11.9 20.8 11.6 5.0 10.9
$OWED: $699.0 697.6 688.2 681.4 670.3 663.4 660.6

Source: Federal Reserve; revised figures as of 02/07/02; For complete historical data visit [][1].




Western Union Financial Services, Inc., a
subsidiary of First Data Corp. announced the launch of the
Western Union Money Transfer service in Uzbekistan.

Western Union, the first money transfer company to offer services in the
country, has established eight agent locations in the capital city of Tashkent
and surrounding areas. By the end of first quarter, Western Union will add
additional agent locations in the cities of Bukhara, Samarkand, Fergana and
Kokand. By the end of 2002, the company anticipates having up to 20 active
locations across Uzbekistan. Western Union’s new Uzbekistan agents —
Business Bank, Bank Khamkor and National Banks of Uzbekistan — have a
combined total of 42 locations throughout the country.

“Thanks to Western Union, thousands of Uzbek emigres in the U.S. will now
be able to send money legally, quickly and safely to their loved ones in
Uzbekistan,” said Mr. Ziyodilla Khodjimedov, Consul General of the Republic of
Uzbekistan in New York. “Western Union money transfers are going to make life
better for our relatives and friends in need,” Ziyodilla added, emphasizing
the importance of rapid money transfers in stimulating business growth and
developing the infrastructure of the country.

“Uzbek emigres have their own unique and proud heritage,” said Bill
Thomas, president, Western Union International. “Yet, they share one strong
characteristic with expatriates from around the world: the desire to become
active members of their adopted communities, while maintaining strong ties to
their homeland. One way they maintain those ties is by providing financial
support to loved ones back home. They trust Western Union to perform that
function, which is a responsibility we take very seriously.”

About Western Union Financial Services, Inc. and First Data

Western Union Financial Services, Inc., a subsidiary of First Data Corp.
(NYSE: FDC), is an international leader in consumer money transfer services.
Consumers can quickly, safely and reliably pay bills and transfer money around
the globe using the company’s proprietary money transfer network. Western
Union and its subsidiary, Orlandi Valuta, together make up one of the world’s
largest money transfer networks with a total of approximately 120,000 Agent
locations in more than 185 countries and territories. Famous for its
pioneering telegraph service, the original Western Union dates back to
1851 and introduced electronic money transfer service in 1871. For more
information, please visit the company’s Web site at

First Data Corp., with global headquarters in Denver, helps power the
global economy. Serving approximately 2.8 million merchant locations,
1,400 card issuers and millions of consumers, First Data makes it easy, fast
and secure for people and businesses to buy goods and services, using
virtually any form of payment: credit, debit, smart card, stored-value card or
check at the point-of-sale, over the Internet or by money transfer. For more
information, please visit the company’s Web site at


Options MasterCard

Canadian Tire Corporation, Limited reported that unaudited 2001 consolidated net earnings were up 19.3 percent to $176.7 million, or $2.25 per share, compared to $148.0 million or $1.89 per share recorded in 2000. Consolidated net earnings for the fourth quarter were up 28.8 percent, to $41.0 million or $0.53 per share compared to $31.9 million or $0.41 per share a year earlier. Retail sales in 2001 increased 6.9 percent and comparable store sales increased 2.2 percent. “During 2001 it became clear the retail sector would be impacted by economic uncertainty. Canadian Tire’s ability to increase sales by 6.9 percent in this environment demonstrated the strength of our position in the marketplace and the value we provide to our customers,” said Wayne C. Sales, president and CEO, Canadian Tire. While we are pleased with our financial performance, we are very excited with our opportunity to continue to accelerate our growth in earnings even further,” added Sales.

“While our 19.3 percent earnings per share growth benefited from certain one-time gains and year-over-year reductions in specific expenses, our earnings excluding these items exceeded the upper end of our previously released forecast. These results were delivered by a team totally focused on our operations, adjusting our plans and strategies to drive top-line growth, reduce costs and strengthen our balance sheet, ultimately increasing shareholder value,” added Sales.

Several factors enhanced the Corporation’s earnings before tax in 2001, including: $15.4 million from the sale of credit charge receivables; $8.0 million from the sale of Hamilton Discount Corporation, Limited (HDCL); and $11.8 million from the disposition of redundant real estate properties. Both the proceeds from the sale of redundant real estate properties and gains from the sale of credit charge receivables are expected to provide recurring earnings contributions during the outlook period of 2002-2005.

These positive contributions to earnings before tax were partially offset by several factors, including: $10.5 million in net expenses in, which is targeted to break even on an operating basis in 2002; $3.8 million invested to accelerate conversion of Canadian Tire retail cards to Options Mastercard(R) accounts; $6.2 million in expenses for CustomerLink, Canadian Tire’s supply chain initiative to develop and deploy multi-channel capability in its Distribution Centres in Brampton and Calgary; and an estimated $3.5 million in lost earnings contributions due to the sale of HDCL early in 2001.

The Corporation also benefited from reduced effective tax rates due to working capital initiatives and lower rates associated with the mix of income.

Consolidated gross operating revenue increased 3.2 percent to $5.4 billion from the $5.2 billion reported in 2000. Fourth quarter consolidated gross operating revenue was $1.4 billion, up 4.2 percent from the fourth quarter in 2000. Canadian Tire Retail gross operating revenue was up 4.0 percent in 2001, while Canadian Tire Financial Services gross operating revenue rose 6.9 percent. Canadian Tire Petroleum’s gross operating revenue declined 1.8 percent.

“We continued to make progress during the year in improving Canadian Tire’s financial flexibility and strengthening our balance sheet,” noted Sales. “Cash generated from operations reached $362 million. In addition, our Treasury group undertook a series of successful financing activities that were well received by the capital markets. We closed the year with a cash position of $579 million.”

Total capital expenditures in 2001 were $358 million, down $70 million from the original plan. Canadian Tire’s capital expenditure plan for 2002 is approximately $300 million, a further reduction of about $60 million from the previous year. During the past several years Canadian Tire has invested in growth and in required infrastructure such as supply chain capacity and capability. Starting in 2002, a larger percentage of our capital investments will be deployed to areas of profitable growth as infrastructure investments are completed.

During the year, Canadian Tire made significant progress in a number of key areas, including:

– the development and implementation of the Corporation’s strategic agenda for the period of 2002 through 2005;

– driving top-line growth and performance of our core business. Retail sales increased 6.9 percent to reach a record $5.3 billion;

– making significant progress in our Customer Values initiative to improve customer service, including the roll-out of Canadian Tire’s proprietary eLearning online training. This system is focused on customer service and product knowledge training for front-line store team members. Significant improvement was also made to store in-stock position with record service levels for shipments to stores from the supply chain;

– opening of 37 new-format stores, including 9 incremental stores, for a total of 270 new-format stores opened since this program began in 1994, bringing Canadian Tire’s total store count to 450;

– implementing the Next Generation merchandising concept in 15 existing new-format stores opened prior to 2001;

– commissioning the 500,000 square foot distribution centre in Calgary, Alberta, which is now shipping to 140 Western Canadian stores as part of a broader supply chain improvement initiative;

– achieving status as one of Canada’s most-visited retail eCommerce sites, reaching 2 million visitors in the month of October: CTR’s online operations are targeted to break-even on an operational basis in 2002;

– converting 450,000 retail cards over to Canadian Tire’s Options MasterCard(R), now representing more than two-thirds of Financial Services’ outstanding receivables, bringing outstanding receivables in Financial Services to an all-time high of $1.4 billion;

– completing the integration of the Auto Village/Drivers banners under the PartSource format, bringing the total to 30 PartSource stores opened across Canada. PartSource achieved double-digit growth in comparable store sales in 2001;

– continuing to outperform the gasoline industry in sales volume per site, with record sales volume and continued marketshare gains in 2001.


Retail Sales

Total retail sales for 2001 were $5.3 billion, a 6.9 percent increase over 2000. Comparable store sales increased by 2.2 percent. This sales performance reflects strong marketing programs and customer acceptance of our unique product assortment, offering basic goods for every day use. Retail sales for the fourth quarter were up 5.7 percent from the same quarter last year, with a resulting 1.7 percent increase in comparable store sales. “Our retail sales performance was encouraging, particularly in view of the strong, non-promotional sales growth we experienced in core, competitive categories such as hardware, housewares, automotive accessories, tires and lawn and garden. Throughout the year we continued to experience sales growth and market share gains in these key categories,” commented Sales. “Our retail sales momentum continued through January 2002,” he added.

Operating Performance

CTR closed 2001 with gross operating revenue of $4.2 billion compared to the $4.0 billion recorded in 2000. The increase was due to the year-over-year 4.0 percent increase in shipments to Associate Dealers, highlighted by an 8.9 percent increase in the fourth quarter as Canadian Tire Retail enjoyed strong sales during the key holiday period. CTR earnings before taxes for the year were $171.7 million, equal to 2000. While the Corporation enjoyed strong retail sales in 2001, earnings were impacted as Associate Dealers focused on reducing excess store inventory resulting in shipments that lagged sales. Lower growth in shipments also reduced purchase discounts from vendors, impacting CTR earnings before taxes. While in the short-term this reduction in excess store inventory impacted CTR’s results, the reduction will enable CTR to exploit merchandising and marketing opportunities going forward. During 2001, significant improvements were made in the CTR supply chain, and service levels to stores reached a record 91.7 percent.

Fourth quarter CTR gross operating revenue totaled $1,154.1 million, up 8.9 percent from $1,060.2 million in 2000, reflecting an 8.9 percent rise in shipments. Earnings before taxes for the quarter were $47.3 million, compared to $34.6 million a year earlier. The primary reason for this performance was the increase in gross operating revenue. This increase was partially offset by higher net advertising and marketing program expenses resulting from a reduction in vendor contributions totaling $13 million. On a year-over-year comparative basis, 2000 results were negatively impacted by $10.9 million in product clearance costs for Christmas lights and $4.0 million in restructuring costs.


Canadian Tire Petroleum reported 2001 gross operating revenue of $837.8 million, down 1.8 percent from $853.5 million recorded in 2000. Increased CTP gasoline litre volume was offset by lower prices at the pump, resulting in the revenue decline. In spite of reduced revenues, CTP continued to gain marketshare with a 1.3 percent increase in gasoline litre sales in an environment of limited industry volume growth.

Earnings before taxes for the year were $17.8 million, a 44.1 percent increase from the $12.4 million earned in 2000 due primarily to improved margins. Ancillary businesses in Petroleum such as car washes and propane experienced double-digit growth.

Petroleum’s fourth quarter gross operating revenue totaled $190.1 million, down 17.3 percent from the $229.8 million recorded in the fourth quarter of 2000. This reflected significantly lower pump prices and a decline in gasoline litre sales volume of 0.6 percent, due to 3 fewer CTP gasoline stations that were in the process of being redeveloped or replaced in the fourth quarter compared to 2000. Strong gross margins resulted in earnings before tax for the quarter of $4.7 million, 17.7 percent higher than the $4.0 million recorded in 2000.


Operating Performance

Canadian Tire Financial Services reported 2001 gross operating revenue of $352.3 million, up 6.9 percent from the $329.6 million recorded a year earlier. Earnings before taxes in 2001 were $87.5 million, up 54.4 percent from $56.6 million recorded in 2000. Revenue and earnings were positively impacted by gains from the sale of credit charge receivables and from the sale of HDCL, in addition to the rapid growth of credit receivables due to the accelerated growth of Options MasterCard(R) accounts. Excluding earnings contributions from the sale of receivables and from the sale of HDCL earnings before taxes would have been $67.6 million, up 19.4 percent from 2000. Accelerating Options MasterCard(R) account growth resulted in an 8.9 percent increase in gross credit charge receivables to $1.4 billion, which more than offset the reduction in charge card receivables associated with the first quarter sale of all third-party charge card receivables including Hamilton Discount. Excluding third-party charge card receivables, the year- over-year value of the portfolio would have grown by 19.1 percent. As of the end of 2001, Financial Services managed over 1.7 million MasterCard(R) accounts, an increase of more than 30 percent from a year earlier.

The quality of CTFS’s portfolio remains strong, with an improvement in aging of accounts and write-down rates remaining virtually unchanged at year- end.

Fourth quarter gross operating revenue was up 4.6 percent to $93.9 million, reflecting continued credit charge receivables growth, partially offset by the loss of contributions from HDCL and third-party processing contracts. Earnings before taxes in the fourth quarter declined 13.8 percent from $13.2 million to $11.4 million, due to $3.8 million in expenses for the launch of Project Accelerate, a program designed to encourage the conversion of Canadian Tire retail cards to Options MasterCards(R).


Commenting on 2002, Sales said: “Our results in 2001 have set the stage for us to continue making excellent progress across our network of businesses to drive top-line sales and reduce costs in order to accelerate earnings growth. In addition to our existing businesses, the acquisition of Mark’s Work Wearhouse in February 2002 will create $500 million in incremental revenue growth and provide immediate accretion to our earnings.”

Sales added: “Mark’s is a very strong, growing business that is highly compatible with our corporate growth strategy, which includes the development of new businesses. Mark’s also offers opportunities to leverage Canadian Tire’s core strengths and assets. It has demonstrated strong financial performance, has in place a targeted growth strategy and is led by a talented management team.”


In 2002 the Corporation expects to achieve total earnings per share in the range of $2.39 to $2.44. This estimate includes a strong contribution from increased gross operating revenue as well as continuing revenues from the sale of redundant real estate assets and credit charge receivables. The sale of redundant real estate assets and credit charge receivables are associated with the Corporation’s major new-format store real estate program and its acceleration of the conversion of Canadian Tire Retail cards to Options Mastercard(R). These strategic initiatives are part of the Corporation’s ongoing operations and will continue to contribute to earnings at least throughout the outlook period of 2002-2005. Mark’s Work Wearhouse is expected to contribute $0.08 to $0.10 on a per share basis towards this earnings forecast, prior to the realization of operational synergies. The Corporation is currently completing an analysis on how much of the estimated $5-7 million in ongoing annualized savings can be captured in 2002 and will communicate the benefit of this expense reduction on the Corporation’s earnings forecast once that process is complete.


On December 6, 2001 the Board of Directors declared a dividend of $0.10 per share on each Common and Class A Non-Voting share. The dividend is payable on March 1, 2002 to holders of record on January 31, 2002.

Canadian Tire Corporation, Limited (TSE: CTR.a, CTR) operates an inter- related network of businesses engaged in retail, financial services and petroleum. Canadian Tire Retail, with 450 stores across the country, is the country’s most-shopped retailer, offering a unique mix of products and services through three specialty categories in which the organization is the market leader — Automotive, Sports and Leisure, and Home Products. [][1] offers Canadians the opportunity to shop online.

PartSource is an automotive parts specialty chain with 30 stores designed to meet the needs of major purchasers of automotive parts — professional automotive installers and serious do-it-yourselfers. Canadian Tire Financial Services manages related financial products and services for retail and petroleum customers, and also markets other value-added products to our customers. Canadian Tire Petroleum is one of the country’s largest and most productive independent retailers of gasoline, with 203 outlets. Mark’s Work Wearhouse Ltd. is a specialty retail organization that operates 325 stores in Canada. More than 40,000 Canadians work across the Canadian Tire organization from coast-to-coast in our corporate, retail, financial services and petroleum businesses.

For complete details on Canadian Tire’s 4Q/01 performance please visit CardData ([][2]).



Datacap High Speed

Datacap Systems, Inc., a leading provider of integrated payment systems, announces the availability of Enterprise Server for NETePay, Datacap’s payment software that achieves 2-second authorizations via DSL or other ‘always on’ Internet and VPN connections. Enterprise Server accepts DES-encrypted authorization requests from remote locations running NETePay clients and forwards those requests to the bankcard processor for authorization and central settlement.

Most currently available payment systems require authorization and settlement of payment transactions at the individual store level. Store totals are then uploaded to headquarters for consolidation and reporting. Now chain stores can enjoy the operational benefits of managing all payment activity through a single headquarters server, while realizing fast 2-second authorizations. By managing and settling a single batch at headquarters, chains achieve significant savings by eliminating cashier and manager close procedures at the store level, while maintaining full accountability at headquarters. Substantial savings on processing fees can also be realized through a VPN connection to the merchant’s bankcard processor.

As brick-and-mortar retail and restaurant chains embrace the Internet for sending enterprise data, it’s only natural for them to take advantage of that same infrastructure for authorizing electronic payments. Because Datacap’s NETePay clients are triple DES-encrypted, merchants can safely send payment transactions over the open Internet to Enterprise Server, which is connected to the bankcard processor via the Internet or VPN, depending on the processor selected.

Systems developers that have already implemented Datacap’s latest Windows ActiveX controls for sending transactions to its dial-up server for DataTrana” can access NETePay Enterprise Server without any changes to their software.

For new developers, using Datacap’s client application and controls allows payment authorizations to be sent via dial-up or Internet/VPN, without any changes to their software. Purpose-built ECRs that use Datacap’s multi-lane LanTrana” system can also get these same fast payment authorizations via the Internet without changes to their ECRs.

The Company

Datacap Systems has successfully designed, manufactured and marketed integrated credit/debit/check verification systems for over 18 years. Datacap’s payment verification interfaces allow virtually any system, regardless of operating system or hardware platform, to get easy access to payment processing networks for credit, debit, check, EBT, house charge, gift card and loyalty program processing. Datacap products are typically used in retail, mail/telephone order, hospitality, quick service, retail petroleum, parking, auto rental, convenience, medical and government applications.

Additional Notifications

If you would like additional, more frequent notifications by email, send an email to Datacap sales admin at requesting email notification and indicating the Datacap products and partners’ products you currently use or re-sell.