First Data ends third quarter with more than $2 billion of liquidity

By Jennifer Lanning Drey

Portland, Ore., Nov. 13 - First Data Corp. remains in good financial condition after closing the third quarter with $590 million of cash and cash equivalents and $1.6 billion of borrowing availability on its revolving credit facility, chief executive officer Michael Capellas said Friday during the company's third-quarter earnings conference call.

First Data posted third-quarter consolidated revenue of $2.4 billion, which was up 13% from the prior-year period, primarily due to the company's new Bank of America merchant services alliance, he said.

Adjusted revenue, which excludes reimbursables, declined 9% for the quarter as the effects of the weak economy and constrained credit continued to weigh on results.

Adjusted EBITDA for the third quarter was $532 million, down 23% from the same period of 2008.

Capellas said during the third quarter, the company remained focusing on its key strategic initiatives, which include generating organic growth, accelerating new product developments in both its current offerings and adjacent markets, pursuing targeted geographic expansion and strategic alliances, reducing structural costs and improving technology delivery.

"Overall, the economy does not appear to be getting significantly worse on a sequential basis. However, our outlook remains cautious," Capellas said.

First Data is a Denver-based provider of electronic commerce and payment services for merchants, financial institutions and card issuers.

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