First Data Corp. (NYSE:FDC) today announced that it will take a restructuring charge in the fourth quarter of approximately $0.05 per share related to a reduction of about 3% of its workforce, primarily in the Card Issuing Services segment. The company expects to take additional actions aimed at further reducing overall operating costs prior to the end of 2005 that would result in additional charges during the quarter.
"While these decisions are difficult, my focus continues to be on taking the steps necessary to position the company for growth, reduce operating costs and build shareholder value," said Ric Duques, chief executive officer. "While the restructuring charges we are taking to strengthen the company will reduce our GAAP earnings for the quarter, on an operating basis, the company is performing as expected. At this point in the holiday season, we are pleased with the performance of our Western Union, domestic merchant, and international businesses."
As a result of the restructuring charge announced today, and other anticipated charges, the company now expects GAAP earnings per share for 2005 to be below the previously stated range of $2.14 to $2.16. As the size of these additional charges has not been finalized, the company will not be providing earnings per share guidance for 2005.
First Data will host a conference call today at 4:00 pm EST to discuss this release. Full year 2005 financial results, as well as guidance for 2006, will be discussed on January 26, 2006, at the company's investor meeting in New York City.Conference Call and Webcast
Ric Duques, chief executive officer; Kim Patmore, chief financial officer; and Gary Kohn, vice president of Investor Relations will host a conference call today at 4:00 pm EST to discuss this release. The conference call can be accessed by calling 888-831-9087 in the U.S. or 415-228-4974 internationally and entering the passcode: FDC. A broadcast of the call will be available on the company's Web site at www.firstdata.com. Interested parties are encouraged to click on the webcast link 10-15 minutes prior to the start of the conference call. The call will be open to the public.
A replay of the conference call will be available one hour after the call concludes through December 23 at 5:00 pm EST at 866-414-6075 (U.S.) or 203-369-0678 (outside the U.S.) and via webcast at www.firstdata.com.
Please note: All statements made by First Data officers on this call are the property of First Data and subject to copyright protection. Other than the replay, First Data has not authorized, and disclaims responsibility for, any recording, replay or distribution of any transcription of this call.About First Data
First Data Corp. (NYSE:FDC) is a leading provider of electronic commerce and payment solutions for businesses and consumers worldwide. Serving 4.1 million merchant locations, 1,500 card issuers and millions of consumers, First Data powers the global economy by making it easy, fast and secure for people and businesses around the world to buy goods and services using virtually any form of payment. The company's portfolio of services and solutions includes credit, debit, private-label, smart and stored-value card issuing and merchant transaction processing services; money transfer services; money orders; fraud protection and authentication solutions; check guarantee and verification services through TeleCheck; as well as Internet commerce and mobile solutions. Western Union and its subsidiary, Orlandi Valuta, together make up one of the world's largest money transfer networks with approximately 242,000 Agent locations in more than 200 countries and territories. The company's STAR Network offers PIN-secured debit acceptance at approximately 1.7 million ATM and retail locations. For more information, visit www.firstdata.com.
Notice to Investors, Prospective Investors and the Investment Community; Cautionary Information Regarding Forward-Looking Statements
Statements in this press release regarding First Data Corporation's business which are not historical facts, including the revenue and earnings projections, are "forward-looking statements." All forward-looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and they are subject to numerous known and unknown risks and uncertainties which could cause actual events or results to differ materially from those projected. Important factors upon which the Company's forward-looking statements are premised include: (a) no unanticipated developments that delay or negatively impact the integration of Concord EFS, Inc. according to the Company's integration plans, including its plans to integrate IT systems, eliminate duplicative overhead and costs, and retain customers and critical employees; (b) continued growth at rates approximating recent levels for card-based payment transactions, consumer money transfer transactions and other product markets; (c) successful conversions under service contracts with major clients; (d) renewal of material contracts in the Company's business units consistent with past experience; (e) timely, successful and cost-effective implementation of processing systems to provide new products, improved functionality and increased efficiencies; (f) successful and timely integration of significant businesses and technologies acquired by the Company and realization of anticipated synergies; (g) continuing development and maintenance of appropriate business continuity plans for the Company's processing systems based on the needs and risks relative to each such system; (h) absence of further consolidation among client financial institutions or other client groups which has a significant impact on FDC client relationships and no material loss of business from significant customers of the Company; (i) achieving planned revenue growth throughout the Company, including in the merchant alliance program which involves several joint ventures not under the sole control of the Company and each of which acts independently of the others, and successful management of pricing pressures through cost efficiencies and other cost management initiatives; (j) successfully managing the credit and fraud risks in the Company's business units and the merchant alliances, particularly in the context of the developing e-commerce markets; (k) anticipation of and response to technological changes, particularly with respect to e-commerce; (l) attracting and retaining qualified key employees; (m) no unanticipated changes in laws, regulations, credit card association rules or other industry standards affecting FDC's businesses which require significant product redevelopment efforts, reduce the market for or value of its products or render products obsolete; (n) continuation of the existing interest rate environment so as to avoid increases in agent fees related to Payment Services' products and increases in interest on the Company's borrowings; (o) absence of significant changes in foreign exchange spreads on retail money transfer transactions, particularly in high-volume corridors, without a corresponding increase in volume or consumer fees; (p) continued political stability in countries in which Western Union has material operations; (q) implementation of Western Union agent agreements with governmental entities according to schedule and no interruption of relations with countries in which Western Union has or is implementing material agent agreements; (r) no unanticipated developments relating to previously disclosed lawsuits, investigations or similar matters; (s) no catastrophic events that could impact the Company's or its major customer's operating facilities, communication systems and technology or that has a material negative impact on current economic conditions or levels of consumer spending; (t) no material breach of security of any of our systems; and (u) successfully managing the potential both for patent protection and patent liability in the context of rapidly developing legal framework for expansive software patent protection.
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SOURCE: First Data Corp.
First Data Corp.
Gary Kohn, firstname.lastname@example.org
Colin Wheeler, email@example.com