EX-99.1 3 dex991.txt PRESS RELEASE EXHIBIT 99.1 PRESS RELEASE Contact: Scott Meyerhoff Chief Financial Officer (770) 248-9600 INTERCEPT ANNOUNCES OUTSTANDING FIRST QUARTER RESULTS ATLANTA, GA (May 6, 2002) - InterCept, Inc. (Nasdaq: ICPT), a leading provider of banking technology products and services for community financial institutions, today reported financial results for the three months ended March 31, 2002. Record Financial Results Net revenues for the three months ended March 31, 2002 totaled $37.7 million, a 39.6% increase compared with $27.0 million for the three months ended March 31, 2001. Net income available to common shareholders, excluding net losses generated from InterCept's 28% ownership of Netzee, Inc., totaled $4.7 million or $0.25 per share (diluted), on 19.1 million average shares outstanding for the three months ended March 31, 2002, versus $2.7 million or $0.18 per share (diluted), on 14.7 million shares outstanding for the three months ended March 31, 2001. Because InterCept accounts for its ownership in Netzee under the equity method, it records its relative percentage of Netzee's net losses in its statement of operations. Including those losses, InterCept's net income available to common shareholders was $3.2 million or $0.17 per share (diluted) for the three months ended March 31, 2002, versus a loss of $732,000 or $0.05 per share (diluted) for the three months ended March 31, 2001. Effective January 1, 2002, InterCept adopted SFAS No. 142, "Goodwill and Other Intangible Assets." SFAS No. 142 requires that an intangible asset with a definite life be amortized over its useful life and that goodwill and other intangible assets with indefinite lives not be amortized but evaluated for impairment. Thus, InterCept's results for the first quarter of 2002 do not include any goodwill amortization, which had the effect of increasing diluted net income per share by approximately $ 0.03 for the three months ended March 31, 2002. First Quarter Highlights InterCept CEO John W. Collins commented, "We are very pleased to report a strong start to 2002. In addition to our strong operating results, we announced during the first quarter the acquisitions of Internet Billing Company, Ltd. (iBill), a Ft. Lauderdale-based provider of transaction processing for Web merchants, and Electronic Payment Exchange, Inc. (EPX), an end-to-end provider of transaction processing services based in New Castle, Delaware. We closed the acquisition of iBill on April 8 and plan to have the EPX transaction closed very soon. With the acquisitions of iBill and EPX, InterCept is better positioned to become a full-service provider of end-to-end credit card processing solutions through multiple sales channels. As we move through the second quarter and the remainder of 2002, we will continue with our long-range strategic goal of providing financial institutions with the technology solutions necessary for them to remain competitive." Netzee, Inc. Mr. Collins stated, "We modified our lending arrangement with Netzee, Inc. during the first quarter. Netzee has continued to solidify its financial performance and improve its operations. In conjunction with other creditors of Netzee, InterCept agreed to extend its credit facility provided to Netzee from November 2002 to April 2003 in exchange for a fee of $100,000 and a reduction in the portion of the facility provided by InterCept from approximately $15.0 million to approximately $14.0 million." Conference Call and Webcast Information InterCept has scheduled a conference call to discuss the earnings release at 10:30 AM EDT on May 6, 2002. InterCept will also provide an online Web simulcast and rebroadcast of the call. Live broadcast of the call will be available online at: www.intercept.net 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 June 6, 2002. 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, debit and credit card processing, data communications management, and related products and services. For more information about InterCept, go to www.intercept.net or call 770.248.9600. ----------------- This release contains, and the remarks by our management on the conference call may contain, forward-looking statements within the meaning of the securities laws that are based on current expectations, assumptions, estimates, and projections about InterCept and our industry. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of InterCept's control, that may cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include whether we can: continue to sustain our current internal growth rate or our total growth rate; successfully close and integrate recent acquisitions of assets and businesses and other operations we may acquire; continue to provide enhanced and new products and services that appeal to our financial institution customers; successfully respond to competition in our industry; continue to have access to the debt and equity capital we need to sustain our growth; and achieve our sales objectives. Other risks include the possibility that Netzee may be unable to repay our loan; and the stock price volatility associated with "small-cap" companies. These and various other factors are discussed in detail in the section in our 2001Annual Report on Form 10-K entitled Management's Discussion and Analysis of Financial Condition and Results of Operations - Disclosure Regarding Forward-Looking Statements. The InterCept Group, Inc. Financial Highlights (unaudited and in thousands, except per share data)
Three Months Ended March 31, -------------------- 2002 2001 ---- ---- Revenues: Service fee income $ 33,999 $ 23,802 Data communications management income 1,974 1,829 Equipment and product sales, services and other 1,703 1,415 -------- -------- Total revenues 37,676 27,046 Cost of Services: Costs of service fees 14,153 8,927 Costs of data communications 1,363 1,438 Costs of equipment and product sales 1,261 1,099 -------- -------- Total cost of services 16,777 11,464 Selling, general and administrative 12,185 9,058 Depreciation and amortization 2,414 2,508 -------- -------- Operating income 6,300 4,016 Other income, net 1,178 728 -------- -------- Income before income taxes, equity in loss of affiliate, and minority interest 7,478 4,744 Provision for income taxes 2,756 (250) Equity in loss of affiliate (1,487) (5,719) Minority interest (7) (7) -------- -------- Net loss 3,228 (732) ======== ======== Income (loss) per share: Basic $ 0.18 $ (0.05) ======== ======== Diluted $ 0.17 $ (0.05) ======== ======== Weighted average shares outstanding: Basic 17,996 13,776 Diluted 19,125 13,776
The InterCept Group, Inc. Condensed Consolidated Balance Sheets (in thousands)
March 31, December 31, 2002 2001 ---------- ------------ unaudited ASSETS Current assets: Cash and cash equivalents $ 25,021 $ 24,917 Short term investments 51,333 50,289 Accounts receivable, net 19,105 20,271 Advances to SLM 7,108 7,025 Deferred tax assets 1,249 1,470 Inventory, prepaid expenses and other 15,417 8,973 -------- -------- Total current assets 119,233 112,945 Property and equipment, net 29,248 28,108 Intangible assets, net 127,901 128,204 Advances to Netzee 10,528 10,118 Investment in affiliate - 1,462 Other assets 2,266 2,431 -------- -------- Total assets $289,176 $283,268 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $ - $ - Accounts payable and accrued expenses 6,985 10,143 Deferred revenue 10,794 9,315 -------- -------- Total current liabilities 17,779 19,458 Long-term debt, net of current portion 2,212 465 Deferred revenue 372 445 Deferred taxes 3,699 2,867 -------- -------- Total liabilities 24,062 23,235 Minority interest 230 222 Shareholders' equity: Common stock 245,138 243,293 Retained earnings 19,799 16,571 Unrealized gain on securities (53) (53) -------- -------- Total shareholders equity 264,884 259,811 -------- -------- Total liabilities and shareholders' equity $289,176 $283,268 ======== ========
The Intercept Group, Inc. Condensed Consolidated Statement of Operations Three Months Ended March 31, 2002 (unaudited and in thousands except per share data)
Consolidated Netzee InterCept ------------ ------ --------- Revenues: Service fee income $33,999 $ - $33,999 Data communications management 1,974 - 1,974 Equipment & product sales, services and other 1,703 - 1,703 ------- ------- ------- Total Revenues 37,676 - 37,676 Cost of Services: Costs of service fees 14,153 - 14,153 Costs of data communications 1,363 - 1,363 Costs of equipment and product sales 1,261 - 1,261 Selling, general & administrative 12,185 - 12,185 Depreciation & amortization 2,414 - 2,414 ------- ------- ------- Total Operating Expenses 31,376 - 31,376 Operating Income 6,300 - 6,300 EBITDA (1) 8,714 - 8,714 Other Income, net Interest income, net 1,153 - 1,153 Gain in Netzee ownership 25 25 - ------- ------- ------- Total Other Income, net 1,178 25 1,153 Income Before Income Taxes, Equity in Loss of Affiliate, and Minority Interest 7,478 25 7,453 Provision for Income Taxes 2,756 10 2,746 Equity in Loss of Affiliate (1,487) (1,487) - Minority interest (7) - (7) ------- -------- ------- Net Income Attributable To Common Shareholders $ 3,228 $(1,472) $ 4,700 ======= ======= ======= Net Income Per Common Share (Diluted) $ 0.17 0.25 ======= ======= Net Income Per Common Share (Diluted, excluding goodwill amortization) 0.25 ======= Weighted Average Shares Outstanding (Diluted) 19,077 19,077
(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.