Green Dot 2010 Annual Report Download - page 57

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$1.2 million increase in telephone and communication expenses due to increased use of our call center
and our IVR, as the number of active cards in our portfolio increased.
Income Tax Expense
2009 2008
Five Months
Ended
December 31,
U.S. federal income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.0% 35.0%
State income taxes, net of federal benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.7 5.9
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1.1
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.7% 42.0%
Our income tax expense increased by $2.3 million to $9.8 million in the five months ended Decem-
ber 31, 2009 from the comparable period in 2008, and there was a slight decline in the effective tax rate.
Comparison of Fiscal 2009 and 2008
Operating Revenues
The following table presents a breakdown of our operating revenues among card, cash transfer and
interchange revenues:
Amount
% of Total
Operating Revenues Amount
% of Total
Operating Revenues
2009 2008
Year Ended July 31,
(In thousands, except percentages)
Operating revenues:
Card revenues . . . . . . . . $119,356 50.8% $ 91,233 54.3%
Cash transfer
revenues . . . . . . . . . . 62,396 26.6 45,310 26.9
Interchange revenues. . . 53,064 22.6 31,583 18.8
Total operating revenues . . $234,816 100.0% $168,126 100.0%
Card Revenues — Our card revenues totaled $119.4 million in fiscal 2009, an increase of $28.1 million,
or 31%, from fiscal 2008. This increase was primarily due to year-over-year growth of 43% in the number of
GPR cards activated and 62% in the number of active cards in our portfolio, partially offset by the February
2009 reduction in new card and monthly maintenance fees for the Walmart MoneyCard. This reduction in
fees also contributed to the decline in card revenues as a percentage of total operating revenues.
Cash Transfer Revenues — Our cash transfer revenues totaled $62.4 million in fiscal 2009, an
increase of $17.1 million, or 38%, from fiscal 2008. This increase was primarily due to year-over-year
growth of 54% in the number of cash transfers, partially offset by a shift in our retail distributor mix toward
Walmart, which generally has lower fees than our other retail distributors and significantly reduced the
POS swipe reload fee in February 2009.
Interchange Revenues — Our interchange revenues totaled $53.1 million in fiscal 2009, an increase
of $21.5 million, or 68%, from fiscal 2008. This increase was primarily due to year-over-year growth of 62%
in the number of active cards in our portfolio and 68% in gross dollar volume.
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