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Table of Contents
Netwont: & Security Solutions revenue decreased 3% in 2013 compared to 2012 driven by decreases in revenue in our EFT Network and
Security and Fraud businesses. partially offset by increases in our Stored Value Network business.
EFT Network revenue decreased 12% due to net lost business. including the loss of a large financial institution that completed its final
conversion in the third quarter of 2012 resulting in a $14 million decline in revenue from the prior period. and lower pricing. including both price
compression on contract renewals and other net pricing incentives. Stoned Value Network revenue increased 14% in 2013 compared to 2012 due to
higher payment volumes within the open loop payroll distribution program related to new and existing business of $19 million, higher closed loop
payment volumes of S8 million as well as higher card shipments of $5 million. In addition, Stored Value Network revenue increased 4 percentage
points due to growth in one of our alliances, resulting from the acquisition of a payment solutions business that occurred in the fourth quarter of
2012. Security and Fraud revenue declined 5% due to continued decreases in check revenue of S32 million due to a shift towards electronic
payments, partially offset by growth in our portfolio of fraud solutions products.
Network & Security Solutions Segment EBITDA increased in 2014 compared to 2013 due to the revenue items noted above as well as
decreased operating expenses as a result of lower headcount and changes in compensation programs. In addition, the EFS disposition had a
negative impact of approximately $15 million on segment EBITDA in 2014.
Network & Security Solutions Segment EBITDA decreased in 2013 compared to 2012 due to the revenue items noted above.
Quarterly Financial Data
The following tables set forth our summary unaudited consolidated statement of operations for each of the ten quarters in the period
ended June 30. 2015. The summary unaudited quarterly consolidate) statement of operations set forth below have been prepared on the same basis
as our audited consolidated financial statements. Our historical results are not necessarily indicative of future operating results. Because the data in
these tables are only a summary and do not provide all of the data contained in our consolidated financial statements, the information should be
read in conjunction with the "Selected Historical Consolidated Financial Data," "Management's Discussion and Analysis of Financial Condition
and Results of Operations." and our consolidated financial statements and related notes thereto includtxl elsewhere in this prospectus.
Three Month% Ended
fin millions)
Mar. 31,
June 30,
Sep. 30.
Dec. 31,
Mar. 31,
June 30,
Sep. 30,
Dm 31,
Mar. 31.
June 30.
2013
2014
2111 5
Revenues
$ 2,591
$ 2.709
$2,712
$2,797
$ 2.640
$ 2,837
$2,792
$2,:•:3
$ 2.693
$ 2,872
Expenses
2.400
2.438
2,408
2.439
2,355
2,455
2,439
2,465
2.435
2.463
Operating profit
191
271
304
358
285
382
353
418
260
409
Net income (loss)
(339)
(193)
(177)
(66)
(165)
23
(188)
65
(63)
33
Net income (loss) attributable to First
Data Corporation
(378)
(237)
(216)
(121)
(201)
(34)
(235)
12
(112)
(26)
Liquidity and Capital Resources
Our source of liquidity is principally cash generated from operating activities supplemented as necessary on a short-term basis by
borrowings against our senior secured revolving credit facility. We believe our current level of cash and short-term financing capabilities along
with future cash flows from operations are sufficient to meet the needs of the business.
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