Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Anurag Rana - KeyBanc Capital Markets Inc.
Anurag Rana - KeyBanc Capital Markets Inc.
Just wanted to get an idea of the guidance of $0.95 to $1.00, does that include, does that take into account $0.14 for the first quarter.
Bob Baldwin
That takes into account for the first quarter, yes.
Anurag Rana - KeyBanc Capital Markets Inc.
So now just looking at transaction growth rate in April was as March, have you seen any new trends as it relates to either credit or debit.
Bob Baldwin
In terms of overall transaction growth rates and transactions we were up modestly better in April then in March. In March we were up overall 6.2%, in April that was up 7% versus a year ago and breaking that down into debit versus credit, the trends were actually pretty similar. Debit was a little bit better, grew from 11.8% in March to 13% growth in April, whereas credit also improved but perhaps a little bit less, it went from negative 3.9% to negative 3.5% growth.
So overall I’d say modestly better which its hard right now for us to ascertain how much of that’s sort of same store type growth versus new merchants but it is reflective of at least a little bit better environment.
Anurag Rana - KeyBanc Capital Markets Inc.
Looking at your guidance on the top line, with the merchant install going down by about close to 10% how do you still feel confident about that 7% to 9% organic growth rate.
Bob Baldwin
Well I think that what we factored in is both some continued impact from the breach on our plans for our growth but remember its important to recognize that if you’re installing about $15 million of margin a quarter, if you’re going to be up 10% that’s an extra $1.5 million, if you’re going to be down 10% that’s a shortfall of $1.5 million so that we’re installing a lot of new merchants, a lot of new margin.
As we mentioned our absolute merchant counts were up 7% plus year over year and that is the driver of continued growth in that revenue line so it is definitely does have an impact on, by installing less margin in a quarter and frankly in the first quarter that’s the toughest thing because those merchants underperform, or that vintage of merchants underperforms for the remainder of the year.
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