National Processing Reports Record First Quarter 2001 Net Income, Up 21% from Prior Year

Merchant Processing Revenue Up 20% for the First Quarter over Prior Year



Apr 19, 2001, 01:00 ET from National Processing, Inc.

    LOUISVILLE, Ky., April 19 /PRNewswire/ -- National Processing, Inc.
 (NYSE:   NAP), today reported record financial results for the first quarter of
 2001. Net income for the quarter was $11.5 million, or $0.22 per share.  This
 represents a 21% increase over net income of $9.5 million for the first
 quarter of 2000.  Revenue was up 11% to $109.0 million compared to
 $97.9 million for the first quarter of 2000.  The increase in financial
 results was driven by the Company's Merchant Card Services segment, which
 posted a 20% increase in revenue and 28% increase in both processing volumes
 and earnings before interest and taxes.
 
                         Summary Financial Information
 
       (dollars in millions, except per share amounts)
                                          Quarter Ended March 31,
                                                                    Change
                                             2001     2000    Versus Prior Year
      Consolidated
 
      Revenue                               $109.0    $97.9           11%
      Earnings Before Interest and
        Taxes (EBIT)                         $16.4    $13.6           21%
      EBIT Margin                            15.07%   13.93%         114bps
      Net Income                             $11.5     $9.5           21%
      Net Income per Share                  $0.223   $0.188           19%
 
      Merchant Card Services
 
      Revenue                                $85.3    $70.9           20%
      Earnings Before Interest and
        Taxes (EBIT)                         $13.6    $10.7           28%
      EBIT Margin                            15.94%   15.03%          91bps
 
      Certain amounts may not compute due to rounding.
 
                          Summary Financial Highlights
 
     * Net income increased to record levels - $11.5 million for the first
       quarter, representing a 21% increase over the first quarter of 2000.
 
     * Revenue for the first quarter of 2001 rose to $109.0 million,
       representing an 11% increase over the first quarter of 2000.
 
     * EBIT increased to $16.4 million for the first quarter 2001, representing
       a 21% increase over the comparable 2000 quarter.
 
     * Revenue for the Merchant Card Services business line was $85.3 for the
       first quarter, representing an increase of 20% over the comparable
       period for 2000.  Merchant Card Services revenue represented 78% of
       total Company revenue for the first quarter 2001.
 
     * Merchant Card Services EBIT increased to $13.6 million for the first
       quarter 2001, representing a 28% increase over the comparable 2000
       quarter.
 
     * For the ninth consecutive quarter, Merchant Card Services EBIT exceeded
       prior year quarterly amounts by over 27%.
 
     * The Company's balance sheet remained free of long-term debt.  As of
       March 31, 2001, the Company had approximately $127 million of cash and
       Eurodollar deposits, which places the Company in a strong position to
       execute its strategic initiatives.
 
     "I am pleased to report another outstanding quarter for National
 Processing," stated Thomas A. Wimsett, President & CEO.  "These results
 reflect the strong competitive spirit and the results oriented mind-set of our
 employees."
     "Our merchant processing business, which represented 78% of our total
 revenues in the first quarter, continues to capture market share at a very
 impressive rate.  Merchant processing volumes grew at 28%, more than double
 the industry growth rate.  Our relentless pursuit of performance and growth
 has allowed us to achieve yet another quarter of solid financial performance
 and nationwide sales momentum."
     A conference call to discuss financial performance and business highlights
 will be held at 9:00 a.m. EDT today by Thomas A. Wimsett, president and chief
 executive officer, and David E. Fountain, chief financial officer.  The call
 will be open to the public with both media and individual investors invited to
 participate in a listen-only mode.  The conference can be accessed by calling
 888.423.3281.  Participants should plan to dial in approximately 15 minutes
 prior to the start of the call.
     A replay of the live call will be available starting 1:00 p.m. EDT,
 April 19, 2001 through Midnight EDT on April 24, 2001.  The replay may be
 accessed by dialing 800.475.6701 and entering access code 577720.
     This announcement and Mr. Wimsett's comments contain forward-looking
 statements that involve significant risks and uncertainties, including changes
 in general economic and financial market conditions and the Company's ability
 to execute its business plans.  Although management believes the expectations
 reflected in such forward-looking statements are reasonable, actual results
 may differ materially. Additional information concerning factors that could
 cause actual results to differ materially from those contained in forward-
 looking statements is available in our Annual Report on Form 10-K for the year
 ended December 31, 2000, as filed with the Securities and Exchange Commission.
 
     About National Processing, Inc.
     National Processing, Inc. through its wholly owned operating subsidiary,
 National Processing Company (NPC(R)), is a leading provider of merchant credit
 card processing.  National Processing is 87 percent owned by National City
 Corporation (NYSE:   NCC) ( www.nationalcity.com ), a Cleveland based
 $89 billion financial holding company, supporting over 500,000 merchant
 locations, representing nearly one out of every five Visa(R) and MasterCard(R)
 transactions processed nationally.  NPC's card processing solutions offer
 superior levels of service and performance and assist merchants in lowering
 their total cost of card acceptance through our world-class people, technology
 and service.  Additional information can be obtained at www.npc.net .
 
 
                             National Processing, Inc.
                                 Financial Summary
                      (In thousands, except per share amounts)
                                    (Unaudited)
 
 
                                        Quarter Ended March 31,   % Change
                                                                 from Prior
                                             2001     2000          Year
 
     Revenue                               $109,045  $97,867         11
     Operating expenses                      80,758   71,109         14
     General and administrative expenses      5,575    7,752        (28)
     Depreciation and amortization            6,280    5,375         17
     Earnings before interest and taxes      16,432   13,631         21
     Net interest income                      2,220    1,815         22
     Income before income taxes              18,652   15,446         21
     Provision for income taxes               7,113    5,898         21
     Net income                             $11,539   $9,548         21
 
     Net income per share-diluted            $0.223   $0.188         19
 
     Shares used in computation              51,651   50,844          2
 
     Certain items have been reclassified in the Financial Summary for prior
     periods to conform with the 2001 presentation and had no effect on
     previously reported net income.
 
     Certain amounts may not recompute due to rounding.
 
 

SOURCE National Processing, Inc.
    LOUISVILLE, Ky., April 19 /PRNewswire/ -- National Processing, Inc.
 (NYSE:   NAP), today reported record financial results for the first quarter of
 2001. Net income for the quarter was $11.5 million, or $0.22 per share.  This
 represents a 21% increase over net income of $9.5 million for the first
 quarter of 2000.  Revenue was up 11% to $109.0 million compared to
 $97.9 million for the first quarter of 2000.  The increase in financial
 results was driven by the Company's Merchant Card Services segment, which
 posted a 20% increase in revenue and 28% increase in both processing volumes
 and earnings before interest and taxes.
 
                         Summary Financial Information
 
       (dollars in millions, except per share amounts)
                                          Quarter Ended March 31,
                                                                    Change
                                             2001     2000    Versus Prior Year
      Consolidated
 
      Revenue                               $109.0    $97.9           11%
      Earnings Before Interest and
        Taxes (EBIT)                         $16.4    $13.6           21%
      EBIT Margin                            15.07%   13.93%         114bps
      Net Income                             $11.5     $9.5           21%
      Net Income per Share                  $0.223   $0.188           19%
 
      Merchant Card Services
 
      Revenue                                $85.3    $70.9           20%
      Earnings Before Interest and
        Taxes (EBIT)                         $13.6    $10.7           28%
      EBIT Margin                            15.94%   15.03%          91bps
 
      Certain amounts may not compute due to rounding.
 
                          Summary Financial Highlights
 
     * Net income increased to record levels - $11.5 million for the first
       quarter, representing a 21% increase over the first quarter of 2000.
 
     * Revenue for the first quarter of 2001 rose to $109.0 million,
       representing an 11% increase over the first quarter of 2000.
 
     * EBIT increased to $16.4 million for the first quarter 2001, representing
       a 21% increase over the comparable 2000 quarter.
 
     * Revenue for the Merchant Card Services business line was $85.3 for the
       first quarter, representing an increase of 20% over the comparable
       period for 2000.  Merchant Card Services revenue represented 78% of
       total Company revenue for the first quarter 2001.
 
     * Merchant Card Services EBIT increased to $13.6 million for the first
       quarter 2001, representing a 28% increase over the comparable 2000
       quarter.
 
     * For the ninth consecutive quarter, Merchant Card Services EBIT exceeded
       prior year quarterly amounts by over 27%.
 
     * The Company's balance sheet remained free of long-term debt.  As of
       March 31, 2001, the Company had approximately $127 million of cash and
       Eurodollar deposits, which places the Company in a strong position to
       execute its strategic initiatives.
 
     "I am pleased to report another outstanding quarter for National
 Processing," stated Thomas A. Wimsett, President & CEO.  "These results
 reflect the strong competitive spirit and the results oriented mind-set of our
 employees."
     "Our merchant processing business, which represented 78% of our total
 revenues in the first quarter, continues to capture market share at a very
 impressive rate.  Merchant processing volumes grew at 28%, more than double
 the industry growth rate.  Our relentless pursuit of performance and growth
 has allowed us to achieve yet another quarter of solid financial performance
 and nationwide sales momentum."
     A conference call to discuss financial performance and business highlights
 will be held at 9:00 a.m. EDT today by Thomas A. Wimsett, president and chief
 executive officer, and David E. Fountain, chief financial officer.  The call
 will be open to the public with both media and individual investors invited to
 participate in a listen-only mode.  The conference can be accessed by calling
 888.423.3281.  Participants should plan to dial in approximately 15 minutes
 prior to the start of the call.
     A replay of the live call will be available starting 1:00 p.m. EDT,
 April 19, 2001 through Midnight EDT on April 24, 2001.  The replay may be
 accessed by dialing 800.475.6701 and entering access code 577720.
     This announcement and Mr. Wimsett's comments contain forward-looking
 statements that involve significant risks and uncertainties, including changes
 in general economic and financial market conditions and the Company's ability
 to execute its business plans.  Although management believes the expectations
 reflected in such forward-looking statements are reasonable, actual results
 may differ materially. Additional information concerning factors that could
 cause actual results to differ materially from those contained in forward-
 looking statements is available in our Annual Report on Form 10-K for the year
 ended December 31, 2000, as filed with the Securities and Exchange Commission.
 
     About National Processing, Inc.
     National Processing, Inc. through its wholly owned operating subsidiary,
 National Processing Company (NPC(R)), is a leading provider of merchant credit
 card processing.  National Processing is 87 percent owned by National City
 Corporation (NYSE:   NCC) ( www.nationalcity.com ), a Cleveland based
 $89 billion financial holding company, supporting over 500,000 merchant
 locations, representing nearly one out of every five Visa(R) and MasterCard(R)
 transactions processed nationally.  NPC's card processing solutions offer
 superior levels of service and performance and assist merchants in lowering
 their total cost of card acceptance through our world-class people, technology
 and service.  Additional information can be obtained at www.npc.net .
 
 
                             National Processing, Inc.
                                 Financial Summary
                      (In thousands, except per share amounts)
                                    (Unaudited)
 
 
                                        Quarter Ended March 31,   % Change
                                                                 from Prior
                                             2001     2000          Year
 
     Revenue                               $109,045  $97,867         11
     Operating expenses                      80,758   71,109         14
     General and administrative expenses      5,575    7,752        (28)
     Depreciation and amortization            6,280    5,375         17
     Earnings before interest and taxes      16,432   13,631         21
     Net interest income                      2,220    1,815         22
     Income before income taxes              18,652   15,446         21
     Provision for income taxes               7,113    5,898         21
     Net income                             $11,539   $9,548         21
 
     Net income per share-diluted            $0.223   $0.188         19
 
     Shares used in computation              51,651   50,844          2
 
     Certain items have been reclassified in the Financial Summary for prior
     periods to conform with the 2001 presentation and had no effect on
     previously reported net income.
 
     Certain amounts may not recompute due to rounding.
 
 SOURCE  National Processing, Inc.