|CheckFree Announces Fiscal 2005 First Quarter Results|
Monday October 18, 4:11 pm ET
ATLANTA, Oct. 18 /PRNewswire-FirstCall/ -- CheckFree Corporation (Nasdaq: CKFR - News) today announced first quarter revenue of $177.8 million, representing 26 percent growth over the same period last year. The Company's GAAP (Generally Accepted Accounting Principles) net income was $6.2 million, or $0.07 per share, and underlying net income was $26.9 million, or $0.29 per share. Free cash flow was $28.3 million for the quarter, as outlined in Attachment A.
GAAP Results: Net income for the first quarter was $6.2 million, compared to a net loss of $6.7 million for the same quarter last year. Earnings per share were $0.07 for the first quarter of fiscal 2005, compared to a loss per share of $0.07 for the first quarter of last year. Net cash provided by operating activities was $31.7 million for the first quarter of fiscal 2005, compared to $27.0 million for the same period last year.
Underlying Results: Underlying net income for the first quarter was $26.9 million, compared to $19.4 million for the same quarter of last year. Underlying earnings per share were $0.29 for the first quarter of fiscal 2005, compared to $0.21 for the first quarter of last year. Underlying net income and earnings per share exclude the amortization of acquisition-related intangible assets and related tax benefits. A reconciliation of CheckFree's underlying results to its GAAP results is included in Attachment A.
"CheckFree had a good first quarter, with consistent results across each of our divisions," said Pete Kight, CheckFree's Chairman and Chief Executive Officer. "We showed steady performance from Investment Services, and Software delivered better-than-expected sales during a traditionally slow quarter. In Electronic Commerce, e-Bill and transaction growth were directly in line with our expectations, with our walk-in bill payment business contributing better- than-expected transaction results. Distribution points for our fully integrated electronic billing and payment solution continue to increase steadily."
"These fiscal first quarter results represent a good start for CheckFree, providing a solid foundation on which to build for the rest of fiscal 2005," Kight concluded.
First Quarter Highlights
The Company reported that its Electronic Commerce division processed 205.8 million transactions for the quarter, a 25 percent increase over the previous quarter; delivered 29.6 million e-Bills, an increase of 14 percent over the previous quarter; and increased the number of fully enabled electronic billing and payment distribution points to more than 1,400.
First quarter results for the Electronic Commerce division also included better-than-expected transaction volume and associated revenue from the Company's walk-in bill payment operations. Integration of this business into the Company's Electronic Commerce division continues as planned, following the acquisition of American Payment Systems, Inc., late in the fourth quarter of fiscal 2004.
The Company also reported stronger-than-expected license sales in its Software division in the first quarter. Refer to Attachment B for details on the financial performance of CheckFree's divisions in the first quarter of fiscal 2005, and Attachment C for electronic billing and payment metrics.
"For the second quarter of fiscal 2005, we expect revenue in the range of $178 million to $183 million, and GAAP earnings per share in the range of $0.07 to $0.10," said CheckFree Chief Financial Officer David Mangum. "This expectation equates to underlying earnings per share in the range of $0.30 to $0.32 for the quarter."
"Our expectations for the second quarter of fiscal 2005 are based on an outlook for continued solid performance from both our Investment Services and Software divisions," he continued. "Sequential quarterly transaction growth is expected to be in the range of 4 to 7 percent, reflecting our expectations for solid growth across all of our electronic billing and payment distribution points, and more modest growth from our walk-in bill payment business," he continued.
"Our first quarter results set us on a favorable course for achieving our fiscal year expectations. We continue to expect full-year earnings per share in the range of $0.39 to $0.45 on a GAAP basis, and in the range of $1.26 to $1.30 on an underlying basis, and free cash flow of more than $145 million for the year," Mangum concluded.
The difference between GAAP and underlying earnings expectations for fiscal 2005 and the second quarter of fiscal 2005 is due to expected acquisition-related intangible amortization expense and related tax benefits. . .