NetSpend 2011 Annual Report Download - page 111

Download and view the complete annual report

Please find page 111 of the 2011 NetSpend annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 173

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173

Table of Contents
NetSpend Holdings, Inc.
Notes to Consolidated Financial Statements (Continued)
December 31, 2011, 2010 and 2009
NOTE 19: CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Continued)
Company incurred expenses from transactions with Vesta of $0.6 million and $0.2 million during the years ended December 31, 2011 and
2010, respectively. The Company earned no revenues and incurred no expenses from transactions with Vesta during the year ended
December 31, 2009.
Birardi
During the year ended December 31, 2011, the Company incurred expenses of $0.1 million for charges related to the use by the
Company's CEO of an airplane owned by Birardi Investments, LLC ("Birardi"). During each of the years ended December 31, 2010 and 2009,
the Company incurred expenses of $0.2 million for charges related to these services. Birardi is an airplane leasing company that is owned by
the CEO.
Henry CJ1 LLC
The Company incurred expenses of $0.1 million during the year ended December 31, 2011 for charges related to the use by the
Company's CEO of an airplane owned by Henry CJ1, LLC ("Henry CJ1"). Henry CJ1 is an airplane leasing company that is owned by the
CEO. The Company incurred no such expenses during the years ended December 31, 2010 or 2009.
NOTE 20: SELECTED QUARTERLY RESULTS OF OPERATIONS (unaudited)
The following tables show the Company's unaudited quarterly results of operations for the years ended December 31, 2011 and 2010.
Upon completion of the Company's IPO in October 2010, all shares of the Company's class B common stock were transferred to members of
Skylight Holdings I, LLC, which resulted in the conversion of those shares into shares of common stock on a one-for-one basis. Although the
as-if converted method for EPS has been applied for full year EPS presentation, quarterly EPS results have not been re-cast for the conversion
of class B common stock to common stock.
102
2011
First
Quarter Second
Quarter Third
Quarter Fourth
Quarter
(in thousands of dollars, except per share data)
Revenues
$
80,750
$
74,419
$
74,324
$
76,762
Direct operating costs
40,133
35,489
34,483
36,094
Other operating expenses
27,383
25,813
25,233
23,703
Settlement and other losses
—
—
324
191
Operating income
13,234
13,117
14,284
16,774
Net income
$
7,779
$
7,580
$
8,310
$
9,577
Basic net income per share
Common stock
$
0.08
$
0.08
$
0.09
$
0.11
Class B common stock
—
—
—
—
Diluted net income per share
Common stock
$
0.08
$
0.08
$
0.09
$
0.11
Class B common stock
—
—
—
—