SPS Transaction Services Inc., one of the nation's largest private-label credit card processors, reported net income of $8.9 million for the second quarter.
The income figure, which translates into 66 cents per share, is 27% higher than the $7 million earned by. the Riverwoods, Ill.-based processor during the second quarter of 1993.
Operating revenues for the second quarter rose 20%, to $59.4 million.
Revenues in the managed private-label services business reflected growth from existing clients and the addition of Seaman Furniture Co. as a client.
Revenue increases in the company's operational outsourcing -services business were a result of continued growth in services provided to members of the Prodigy on-line computer network and in catalog order taking volume.
Increase in Loans Outstanding
The funded private-label business, in which SPS issues credit cards and owns receivables on behalf of clients, saw its loans outstanding rise 16% from the previous year to $690.1 million. SPS ended the second quarter with 3.3 million active private-label accounts compared to 2.9 million at June 30, 1993.
The company's electronic transaction processing business reported an increase in point-of-sale transactions from 75.5 million in the second quarter of 1993 to 78.8 million during the same period in 1994. Volumes were led by growth in the specialty retail and restaurant industry segments.
First Financial Management Corp., a leading provider of credit card, check and debt collection services, announced that it achieved record financial performance for the second quarter and first six months of 1994.
Net income for the quarter rose 22% to $34.1 million from $27.9 million in 1993. Revenues were up 24% to $489 million versus $393 million a year ago.
At the end of the period, the Atlanta-based company had cash and cash equivalents of $202 million and unused bank lines of credit of $450 million.
Patrick H. Thomas, chairman, president, and chief executive of First Financial, attributed the company's gains to a combination of effective marketing, and sales and new acquisitions.
New Units Build Business
The company has been active on the acquisition trail, purchasing three companies in the second quarter and five companies so far in 1994.
"With the purchase of two merchant credit card portfolios and AT&T's information imaging systems division during the quarter and the signing of an agreement to acquire Genex Services, a leading provider of workers' compensation programs, we have expanded each of our business areas," Mr. Thomas said.
Nabanco, First Financial's card processing unit, signed $2.4 billion in new annualized processing volume in the second quarter. Margins in this business were up substantially from the first quarter, but off slightly from last year, executives said.
