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Anacomp - Newswire
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Anacomp Announces Improved First Quarter Financial Results
ATLANTA, Jan. 30 /PRNewswire/ -- Anacomp, Inc. (Nasdaq: ANCO) today
released first quarter financial results for the period ended
December 31, 1996 that reflect improved EBITDA (earnings before interest,
taxes, other income and expenses, reorganization items, depreciation, and
amortization).
For the three months ended December 31, 1996 (Anacomp's first quarter of
fiscal 1997), the company reported EBITDA of $23.3 million or 20% of revenues,
compared to $18.0 million or 16% of revenues in the previous quarter, and
$23.1 million or 18% of revenues in the comparable period a year ago.
Contributing to the first quarter improvement was a $3.6 million payment
relating to a long-standing OEM purchase agreement for Anacomp's leading XFP
2000 COM technology, sales of newer digital products, and continued reductions
in operating expenses. Without the one-time $3.6 million payment, first
quarter EBITDA would have been $19.7 million.
Revenues for the period were $116.5 million, compared to $114.8 million in
the previous quarter and $130.3 million in the comparable period a year ago.
The first quarter results reflect the $3.6 million payment noted above,
further stabilization of some of the company's maturing traditional
micrographics and magnetics businesses, and modest new revenues from the
company's emerging digital solutions. The revenue decline from the first
quarter a year ago was primarily due to Anacomp's exit of certain non-
strategic businesses, as well as negative revenue trends during the period in
segments of the company's maturing businesses.
As a result of Anacomp's successful financial restructuring and emergence
from Chapter 11 last year, Anacomp is amortizing over three-and-a-half years a
"reorganization value" asset of approximately $263 million. This non-cash
reorganization amortization was $19.2 million in the first quarter, resulting
in a net loss of $12.9 million. That compares to a net loss of $17.6 in the
previous quarter (Anacomp's first quarter post-Chapter 11). As mentioned
above, those results are not comparable to the first quarter of fiscal 1996
(all of which occurred pre-Chapter 11).
"We're very pleased with our first quarter performance," stated Lang
Lowrey, Anacomp's chairman and chief executive officer. "Not only did we see
some unexpected success in some of our newer products and services, but our
EBITDA remained steady for the third consecutive quarter -- even backing-out
the $3.6 million first quarter payment relating to our XFP 2000 OEM
arrangement."
"We also completed three relatively small acquisitions in the first
quarter," continued Lowrey, "including a COM service bureau that strengthened
our market position in the New York area, an archival storage vault in
Massachusetts, and a computer peripheral equipment company that provides us
with synergies for both our maintenance and magnetics businesses. Plus, we
successfully completed a $25 million rights offering, providing us with
significant additional resources to invest in the acquisition of
businesses and technologies. Our acquisition focus going forward will be on
products and services that expand our current business relationships and that
bring advanced technologies into the company."
The first quarter also saw the appointment of Ralph W. Koehrer of
Automatic Data Processing, Inc. as Anacomp's new president and chief operating
officer. "In reviewing the first quarter results, I see several significant
challenges but also real opportunities and a solid foundation from which to
grow Anacomp's business in the future," said Koehrer. "As an example, our new
Technology Services Group in the United States performed particularly well in
the first quarter, and I'm optimistic about opportunities in this area,
especially as it relates to providing our customers with expanded professional
consulting services." Koehrer officially assumed his new duties on
January 6, 1997.
Serving customers throughout the world, Anacomp provides products and
services that manage corporate information throughout its life cycle.
All of Anacomp's news releases are distributed through PR Newswire, an
international wire service that can be accessed through the Internet or
numerous on-line providers. Recent news releases and quarterly
reports are available through Anacomp's Company News-On-Call service by
calling 800-758-5804, ext. 054532.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Anacomp, Inc. and Subsidiaries
Reorganized Reorganized Predecessor
Company Company Company
Three Months Three Months Three Months
Ended Ended Ended
December 31, September 30, December 31,
(Dollars in thousands, 1996 1996 1995
except per share amounts)
Revenues:
Services provided $ 45,425 $ 44,704 $ 50,928
Equipment and supply sales 71,028 70,052 79,337
Total 116,453 114,756 130,265
Operating costs and expenses:
Costs of services provided 24,107 24,101 27,838
Costs of equipment and
supplies sold 50,932 52,963 61,761
Selling, general and
administrative expenses 21,448 23,986 24,447
Amortization of reorganization
asset 19,247 19,247 ---
Total 115,734 120,297 114,046
Income (loss) from operations before
interest, other income,
financial restructuring costs,
and income taxes 719 (5,541) 16,219
Interest income 984 940 501
Interest expense and fee
amortization (9,802) (9,949) (18,286)
Financial restructuring costs --- --- (2,801)
Other income (loss) (15) 13 6,620
Total (8,833) (8,996) (13,966)
Income (loss) before income
taxes (8,114) (14,537) 2,253
Provision for income taxes 4,800 3,100 1,200
Net income (loss) (12,914) (17,637) 1,053
Preferred stock dividends
and discount accretion --- --- 540
Net income (loss) available to
common stockholders $ (12,914) $ (17,637) $ 513
Earnings (loss) per common and
common equivalent share:
Net income (loss) available to
common stockholders $ (1.01) $ (1.76)
CASH FLOW DATA:
EBITDA $ 23,325 $ 17,978 $ 23,095
Capital expenditures
(net of acquisitions) 3,202 1,705 1,161
Payments to acquire companies
and customer rights 3,379 3,844 ---
Principal payments on debt 482 14,344 13,705
CONDENSED CONSOLIDATED BALANCE SHEETS
Anacomp, Inc. and Subsidiaries
December 31, September 30,
(Dollars in thousands, except 1996 1996
per share amounts) (Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 71,574 $ 38,198
Restricted Cash 9,597 9,597
Accounts and notes receivable,
less allowances for doubtful
accounts of $6,850 and $6,768,
respectively 60,578 58,806
Current portion of long-term
receivables 4,928 4,690
Inventories 29,968 31,856
Prepaid expenses and other 5,781 4,383
Total current assets 182,426 147,530
Property and equipment, at cost less
accumulated depreciation and
amortization 28,147 27,102
Long-term receivables, net of
current portion 9,479 10,632
Excess of purchase price over net
assets of businesses acquired and
other intangibles, net 4,386 2,285
Reorganization value in excess of
identifiable assets 218,473 240,344
Other assets 7,615 7,528
Total $ 450,526 $ 435,421
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 31,444 $ 31,848
Accounts payable 49,242 48,090
Accrued compensation, benefits and
withholdings 13,238 13,728
Accrued income taxes 9,537 11,930
Accrued interest 6,893 10,586
Other accrued liabilities 33,859 36,814
Total current liabilities 144,213 152,996
Noncurrent liabilities:
Long-term debt, net of current
portion 229,623 217,044
Other noncurrent liabilities 6,116 6,812
Total noncurrent liabilities 235,739 223,856
Stockholders' equity:
Preferred stock, 1,000,000 shares
authorized, none issued --- ---
Common stock, $.01 par value;
20,000,000 shares authorized;
13,700,764 and 10,099,050
issued respectively 137 101
Capital in excess of par value 104,856 80,318
Cumulative translation adjustment
from May 31, 1996 503 159
Accumulated deficit from
May 31, 1996 (34,922) (22,009)
Total stockholders' equity 70,574 58,569
Total $ 450,526 $ 435,421
SOURCE Anacomp, Inc.
CONTACT: Media: Jeff Withem, 404-876-3361; email, jwithem@anacomp.com; Analyst:
Nancy Vandeventer, 800-350-3044 or email, nvandeventer@anacomp.com, both
of Anacomp, Inc.
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