National Data Corporation (NDC) today announced a 29 percent increase in first quarter earnings.
Earnings for the quarter ended August 31 were $10.6 million and $.38 a share. This compares to $8.2 million and $.30 per share for the same quarter during the last fiscal year.
Revenue increased to $120.1 million compared to $101.2 million for the first quarter of last year, a 19 percent growth. The company reported a 25 percent revenue growth in its Health Care segment; 22 percent in the Integrated Payment Systems business; and 11 percent in its Global Payment Systems subsidiary.
Earnings before interest, taxes, depreciation and amortization were $29.8 million or 25 percent of revenue. Operating income totaled 16.3 percent of revenue versus 13.8 percent during last year’s first quarter – reflecting continued productivity gains. Cash flow from operations was at an annualized rate of $84 million.
During the quarter the company took action to enter the health care data base management business and established a base to pursue health care opportunities in Europe through acquisition of two UK-based pharmacy systems companies. It also announced a number of new health care network information service alliances.
With these transactions, health care will exceed 50 percent of total revenues.
In the payment systems portion of its business NDC introduced new outsourcing services that will broaden its market presence and sources of future revenue growth. Market reaction has been positive.
“These results are particularly gratifying,” said Robert A. Yellowlees, NDC chairman and CEO. “They extend the trend of the last four years that has produced strong earnings growth combined with the predictability from a high recurring revenue stream. They show the ability of our management team and employees to produce quality earnings while making near-term investments in new products and distribution channel expansion for long-term growth.
“NDC will continue to proactively expand its franchise through both internal programs and value-added strategic acquisitions,” said Yellowlees. “We remain optimistic about the breadth of new market opportunities worldwide. The tremendous talent of our people, augmented by the broad reach of our network infrastructure, positions us well to take advantage of these opportunities.”
National Data Corporation is a leading provider of value-added services for the health care and payment systems markets.
When used in this report, press releases and elsewhere by management or the Company from time to time, the words “believes,” “anticipates,” “expects” and similar expressions are intended to identify forward-looking statements concerning the Company’s operations, economic performance and financial condition, including particular, the likelihood of the Company’s success in developing and expanding its business. These statements are based on a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company, and reflect future business decisions which are subject to change. A variety of factors could cause actual results to differ materially from those anticipated in the Company’s forward-looking statements, some of which include competition in the market for Company’s services, continued expansion of the Company’s processing and payment systems markets, successfully completing and integrating acquisitions in existing and new markets and other risk factors that are discussed from time to time in the Company’s Securities and Exchange Commission (“SEC”) reports and other filings. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligations to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or thereof, as the case may be, or to reflect the occurrence of unanticipated events.Details