EX-99.1 2 dex991.txt PRESS RELEASE EXHIBIT 99.1 Press Release Contact: Scott R. Meyerhoff Chief Financial Officer (770) 248-9600 THE INTERCEPT GROUP, INC. ANNOUNCES SECOND QUARTER 2001 RESULTS NORCROSS, Ga. (July 25, 2001) - The InterCept Group, Inc. (Nasdaq: ICPT) today reported financial results for the second quarter ended June 30, 2001. Net revenues for the three months ended June 30, 2001 totaled $30.4 million, a 75.8% increase compared with $17.3 million for the second quarter ended June 30, 2000. Net income available to common shareholders, excluding net losses generated from InterCept's 28% ownership of Netzee, Inc. and a charge of $0.4 million related to the SLM acquisition, totaled $3.2 million, or $0.22 per share (diluted), on 15.1 million average shares outstanding for the three months ended June 30, 2001, versus $2.2 million, or $0.16 per share (diluted), on 13.7 million average shares outstanding for the three months ended June 30, 2000. Net losses reflect losses related to changes in Netzee's shareholders' equity less InterCept's portion of Netzee's losses. Net income available to common shareholders including the Netzee-related net losses was $367,000 or $0.02 per diluted share for the three months ended June 30, 2001. Net revenues for the six months ended June 30, 2001 totaled $57.4 million, a 73.7% increase compared with $33.1 million for the six months ended June 30, 2000. Net income available to common shareholders, excluding Netzee-related net losses and a charge of $0.4 million related to the SLM acquisition, totaled $5.9 million, or $0.40 per share (diluted), on 14.9 million average shares outstanding for the six months ended June 30, 2001, versus $4.0 million or $0.31 per share (diluted), on 13.1 million average shares outstanding for the six months ended June 30, 2000. Net loss available to common shareholders including the Netzee-related net losses was $2.5 million or ($0.18) per diluted share for the six months ended June 30, 2001. "Our strong financial performance during the first part of this year continued in the second quarter as indicated by our financial results," commented John Collins, chairman of the board and chief executive officer of InterCept. "Increasingly, community financial institutions are relying on technology to retain and expand their customer bases. We believe that community financial institutions will continue to rely on third-party providers like InterCept to serve their technology needs." The InterCept Group Reports Second Quarter Results Page 2 July 25, 2001 -------------------------------------------------------------------------------- "During the second quarter we continued to seek out strategic relationships to extend our customer reach and generate additional revenues. In May, we announced a strategic alliance with BISYS Group, Inc., one of the largest providers of financial technology services in the United States. Through this agreement, InterCept serves as BISYS' preferred provider of outsourced check processing and imaging services to its customers. On June 30 we announced a joint marketing agreement with First National Bank of Omaha, Nebraska. Through this agreement, First National will promote our core processing services in Kansas, Colorado, Nebraska and South Dakota. We plan to continue our expansion across the United States by completing strategic partnerships and acquisitions of businesses with complementary products and services in geographic areas where we currently have no operations." Conference Call and Webcast Information InterCept has scheduled a conference call to discuss the earnings release at 8:30 AM EDT on July 25, 2001. InterCept will also provide an online Web simulcast and rebroadcast of the call. Live broadcast of the call will be available online at: http://www.videonewswire.com/INTERCEPT/072501/ ---------------------------------------------- To listen to the live call, please go to the web site at least fifteen minutes early to register, download and install any necessary audio software. An online replay of the call will be available shortly after it ends and will continue to be available through August 25, 2001. About InterCept InterCept is a single-source provider of a broad range of technologies, products and services that work together to meet the technology and operating needs of community financial institutions. InterCept's products and services include core data processing, check processing and imaging, electronic funds transfer, data communications management, and related products and services. For more information about InterCept, please visit its web site at www.intercept.net or ----------------- call 770.248.9600. This release contains statements that constitute forward-looking statements within the meaning of the securities laws. These statements, as well as other statements that may be made by management in the conference call, include all statements regarding our intent, belief or expectations with respect to, among other things: (1) whether we can continue to sustain our current internal growth rate or our total growth rate; (2) whether we can successfully integrate recent acquisitions of assets and businesses and other operations we may acquire; (3) trends affecting our operations, financial condition and business; (4) our growth and operating strategies; (5) our ability to achieve our sales objectives; and (6) the continued and future acceptance of and demand for our products and services by our customers. These forward-looking statements are not guarantees of future performance, and actual results may differ materially from those expressed or implied by the forward-looking statements as a result of risks related to our ability to achieve, manage or maintain growth and execute our business strategy successfully; the integration of acquired assets and businesses; our ability to sell our products and services to financial institution customers; our dependence on developing, testing and implementing enhanced and new products and services; any additional funding that we may provide Netzee; our ability to respond to competition; the volatility associated with "small-cap" companies; and various other factors discussed in detail in our filings with the SEC, including the "Risk Factors" section in our Registration Statement on Form S-3 (Registration No. 333-64834) as filed with the Securities and Exchange Commission on July 10, 2001, as amended. The InterCept Group, Inc. Financial Highlights (in thousands, except per share data)
Three-months Ended Six-months Ended June 30, June 30, ------------------ ------------------ 2001 2000* 2001 2000* ------- ------- ------- -------- Revenues: Service fee income $27,026 $13,660 $50,828 $ 25,521 Data communications management income 1,737 1,517 3,566 2,918 Equipment and product sales, services and other 1,618 2,108 3,033 4,625 ------- ------- ------- -------- Total revenues 30,381 17,285 57,427 33,064 Cost of Services: Cost of service fees 9,388 4,162 18,315 7,477 Cost of data communications 1,358 1,051 2,796 2,028 Cost of equipment and product sales 1,235 1,606 2,334 3,426 ------- ------- ------- -------- Total cost of services 11,981 6,819 23,445 12,931 Selling, general and administrative 10,544 6,726 19,602 12,980 Depreciation and amortization 2,886 1,078 5,394 2,038 ------- ------- ------- -------- Operating income 4,970 2,662 8,986 5,115 Other income, net 314 1,440 1,042 8,722 ------- ------- ------- -------- Income before income taxes, equity in loss of affiliate, and minority interest 5,284 4,102 10,028 13,837 Provision for income taxes 2,112 1,688 4,035 5,494 Equity in loss of affiliate (2,802) (6,181) (8,521) (11,867) Minority interest (3) (16) (10) (32) ------- ------- ------- -------- Net income (loss) 367 (3,783) (2,538) (3,556) ======= ======= ======= ======== Income (loss) income per share: Basic $0.03 $(0.29) $(0.18) $(0.29) ======= ======= ======= ======== Diluted $0.02 $(0.29) $(0.18) $(0.29) ======= ======= ======= ======== Weighted average shares outstanding: Basic 13,894 13,160 13,835 12,457 Diluted 15,060 13,160 13,835 12,457
* All prior period amounts have been restated to reflect the acquisition of Advanced Computer Enterprises, Inc. in a pooling transaction in August 2000. The InterCept Group, Inc. Condensed Consolidated Balance Sheets (in thousands)
June 30, December 31, 2001 2000 -------- ----------- ASSETS Current assets: Cash and cash equivalents $ 4,122 $ 8,061 Short term investments 8 37,484 Accounts receivable, net 18,212 9,960 Advances to SLM - 5,000 Inventory, prepaid expenses and other 10,165 4,689 -------- -------- Total current assets 32,507 65,194 Property and equipment, net 24,500 16,883 Intangible assets, net 102,608 24,786 Accounts receivable - affiliate 8,715 15,000 Advances to SLM 12,065 - Investment in affiliate 9,722 17,729 Other assets 2,888 2,534 -------- -------- Total assets $193,005 $142,126 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $ 16 $ 45 Accounts payable and accrued expenses 4,683 3,188 Deferred revenue 12,858 5,054 -------- -------- Total current liabilities 17,557 8,287 Long-term debt, net of current portion 26,386 4,513 Deferred revenue 480 453 Deferred taxes 26,984 26,279 -------- -------- Total liabilities 71,407 39,532 Minority interest 213 202 Shareholders' equity: Common stock 130,933 109,340 Retained earnings (9,489) (6,951) Unrealized gain on securities (59) 3 -------- -------- Total shareholders equity 121,385 102,392 -------- -------- Total liabilities and shareholders' equity $193,005 $142,126 ======== ========
The Intercept Group, Inc. Condensed Consolidated Statement of Operations Three Months Ended June 30, 2001 (in thousands except per share data)
Restructuring Consolidated Netzee Charge InterCept ------------- -------- ------------- --------- Revenues: Service fee income $27,026 $ - $ - $27,026 Data communications management 1,737 - - 1,737 Equipment & product sales, services and other 1,618 - - 1,618 ------- ------- ------- ------- Total Revenues 30,381 - - 30,381 Cost of Services: Cost of service fees 9,388 - - 9,388 Cost of data communications 1,358 - - 1,358 Cost of equipment and product sales 1,235 - - 1,235 Selling, general & administrative 10,544 - 405 10,139 Depreciation & amortization 2,886 - - 2,886 ------- ------- ------- ------- Total Operating Expenses 25,411 - 405 25,006 Operating Income 4,970 - (405) 5,375 EBITDA (1) 7,856 - (405) 8,261 Other Income, net Interest income, net 30 - - 30 Gain in Netzee ownership 284 284 - - ------- ------- ------- ------- Total Other Income, net 314 284 - 30 Income Before Income Taxes, Equity in Loss of Affiliate, and Minority Interest 5,284 284 (405) 5,405 Provision for Income Taxes 2,112 114 (162) 2,160 Equity in Loss of Affiliate (2,802) (2,802) - - Minority interest (3) - - (3) ------- ------- ------- ------- Net Income (Loss) Attributable To Common Shareholders $ 367 $(2,632) $ (243) $ 3,242 ======= ======= ======= ======= Net Income (Loss) Per Common Share (Diluted) $ 0.02 $ 0.22 ======= ======= Net Income (Loss) Per Common Share (Diluted, excluding goodwill amortization) 0.25 ======= Weighted Average Shares Outstanding (Diluted) 15,060 15,060
(1) EBITDA is equal to operating income plus depreciation and amortization. EBITDA should not be considered as an alternative to net income (loss) or any other measure of operating performance calculated in accordance with accounting principles generally accepted in the United States. The Intercept Group, Inc. Condensed Consolidated Statement of Operations Six Months Ended June 30, 2001 (in thousands except per share data)
Restructuring Consolidated Netzee Charge InterCept ------------- -------- ------------- --------- Revenues: Service fee income $50,828 $ - $ - $50,828 Data communications management 3,566 - - 3,566 Equipment & product sales, services and other 3,033 - - 3,033 ------- ------- ----- ------- Total Revenues 57,427 - - 57,427 Cost of Services: Cost of service fees 18,315 - - 18,315 Cost of data communications 2,796 - - 2,796 Cost of equipment and product sales 2,334 - - 2,334 Selling, general & administrative 19,602 - 405 19,197 Depreciation & amortization 5,394 - - 5,394 ------- ------- ----- ------- Total Operating Expenses 48,441 - 405 48,036 Operating Income 8,986 - (405) 9,391 EBITDA (1) 14,380 - (405) 14,785 Other Income, net Interest income, net 529 - - 529 Gain in Netzee ownership 513 513 - - ------- ------- ----- ------- Total Other Income, net 1,042 513 - 529 Income Before Income Taxes, Equity in Loss of Affiliate, and Minority Interest 10,028 513 (405) 9,920 Provision for Income Taxes 4,035 205 (162) 3,992 Equity in Loss of Affiliate (8,521) (8,521) - - Minority interest (10) - - (10) ------- ------- ----- ------- Net (Loss) Income Attributable To Common Shareholders $(2,538) $(8,213) $(243) $ 5,918 ======= ======= ===== ======= Net (Loss) Income Per Common Share (Diluted) $ (0.18) $ 0.40 ======= ======= Net (Loss) Income Per Common Share (Diluted, excluding goodwill amortization) 0.47 ======= Weighted Average Shares Outstanding (Diluted) 13,835 14,909
(1) EBITDA is equal to operating income plus depreciation and amortization. EBITDA should not be considered as an alternative to net income (loss) or any other measure of operating performance calculated in accordance with accounting principles generally accepted in the United States.