SPS Transaction Services Inc., a third-party provider of operating services, reported that net operating revenues for the third quarter ended Sept. 30 rose 20% to $62.2 million from $51.7 million in 1993.
SPS said third-quarter revenue increases reflected growth in fees generated by management of private-label credit card programs, operation outsourcing activities, and an increase in finance charge income derived from the private-label credit cards SPS issues on behalf of its clients.
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Net income for the third quarter rose to $9.9 million, a 20% increase from the same quarter in 1993, when the company reported $8.2 million.
Managed active accounts rose to 3.4 million at the end of the quarter from 2.9 million in the third quarter of 1993. Credit card loans outstanding, including securitized loans at Sept. 30, were $739 million, a 20% rise from $617.5 million a year ago.
Net income for the nine months ended Sept. 30 jumped 23% to a record $27.8 million, while net operating revenues rose 21% to $181.1 million from the same nine-month period in 1993.
SPS, which operates two wholly owned subsidiaries, SPS Payment Systems Inc. and Hurley State Bank, also declared a 2-for-1 stock split of its common stock, payable on Nov. 16 to stockholders of record on Nov. 2.
The company reported an increase in electronic point of sale transactions processed, from 78.5 million in the third quarter of 1993 to 84.3 million in 1994. Robert L. Wieseneck, president and chief executive, also announced that the board of directors has been increased to 10 members with the election of Mitchell M. Merin, executive vice president and chief administrative officer of Dean Witter, Discover & Co.
