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FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
April 15, 1999
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(Date of Report)
NATIONAL PROCESSING, INC.
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(Exact name of registrant as specified in its charter)
Ohio 1-11905 61-1303983
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(State or other jurisdiction (Commission IRS Employer
of incorporation) File Number) Identification No.)
One Oxmoor Place, 101 Bullitt Lane, Suite 450, Louisville, Kentucky 40222
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(Address of principal executive offices) (Zip Code)
(502) 326-7000
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(Registrant's telephone number, including area code)
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Item 5. Other Events
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On April 15, 1999, the Registrant issued a News Release reporting
earnings for the first quarter of Fiscal Year 1999.
Reference is made to the News Release, dated April 15, 1999, a copy
of which is filed as Exhibit 99.1 to this Current Report on Form 8-K and is
incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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a) FINANCIAL STATEMENTS OF BUSINESS ACQUIRED: None
b) PRO FORMA FINANCIAL INFORMATION: None.
c) EXHIBITS:
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99.1 News Release, dated April 15, 1999 incorporated HEREIN by
reference.
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Signatures
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Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
NATIONAL PROCESSING, INC.
Dated: April 15, 1999 By /s/ Carlton E. Langer
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Name: Carlton E. Langer
Title: Assistant Secretary
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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)
<TABLE>
<CAPTION>
Percent
THREE MONTHS ENDED MARCH 31: 1999 1998 Change
---- ---- -------
<S> <C> <C> <C>
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
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OPERATING (LOSS) PROFIT (67,189) 8,243 -
Net interest income 18 341 (95)
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(Loss) income before income taxes (67,171) 8,584 -
Provision for income taxes 1,014 3,676 (72)
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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)
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Net Income 5,674 4,908 16
======== ========
Per Share $0.11 $0.10 16
======== ========
RESTRUCTURING CHARGES AND IMPAIRMENT LOSS:
Pre-Tax (Loss) (76,166) - -
Tax (Benefit) (2,307) - -
--------
After-Tax (Loss) (73,859) - -
========
Per Share ($1.46) - -
========
TOTAL:
Pre-Tax(Loss) Earnings (67,171) 8,584 -
Taxes 1,014 3,676 (72)
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Net (Loss) Income (68,185) 4,908 -
======== ======== -
Per Share ($1.35) $0.10 -
======== ========
</TABLE>
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