Amplicon Third Quarter EPS Unchanged; Nine-Months EPS Up 6 Percent.SANTA ANA Santa Ana, city, El Salvador Santa Ana (sän'tä ä`nä), city (1993 pop. 129,873), W El Salvador. It is the second largest city in the country and the commercial and processing center for a sugarcane, coffee, and cattle region. , Calif.--(BUSINESS WIRE)--April 29, 1999-- Amplicon Inc. (Nasdaq: AMPI AMPI Asociación Mexicana de Profesionales Inmobiliarios (Mexican Association of Real Estate Professionals) AMPI Associated Milk Producers Inc. AMPI Adaptive Message Passing Interface AMPI Automated Mission Planning Infrastructure ) Thursday reported that revenues for the third quarter ended March 31, 1999 decreased 26% to $60.6 million, compared with $81.8 million for the third quarter a year ago. Net earnings for the third quarter were flat at $4.8 million for the third quarter of both fiscal years. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for both periods were $0.39. Revenues for the first nine months of fiscal 1999 were down 29% to $173.7 million from $244.1 million for the comparable prior year period. Net earnings for the same period rose 6% to $14.6 million, compared with $13.8 million for the first nine months of the prior fiscal year. Diluted earnings per share for the first nine months of fiscal 1999 were $1.19, also up 6% from $1.12 reported for the first nine months of the prior year. "Amplicon's third quarter and nine month results reflect continued sluggishness in the origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real of new lease transactions, when compared to the prior year, and lower profits realized from our lease portfolio," said Patrick E. Paddon, chairman, president and chief executive officer. "In the face of this, we have continued efforts to control all overhead costs overhead costs see fixed costs. , as well as implemented initiatives to augment our ability to originate o·rig·i·nate v. 1. To bring into being; create. 2. To come into being; start. new business cost effectively. While these initiatives are in the early stages, we are excited about their prospects for expanding our business development efforts. At March 31, 1999, Amplicon continues to be in a strong financial position, with shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. at $149.5 million and cash and short term investments of $50.9 million. "For the third quarter of fiscal 1999, gross profit decreased 8% to $11.9 million, compared with $13.0 million for the prior year quarter. The lower gross profit is due to a decrease in income recognized from leased property sales, while net interest and investment income and profits from new lease transactions were relatively unchanged. For the quarter, net interest and investment income remained at $6.1 million, reflecting a decrease in interest income earned on a smaller lease portfolio which was offset by increased investment income earned on higher cash balances and higher accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the of interest on residuals. During the third quarter of fiscal 1999, Amplicon's overall realization on its investment in residuals was lower than historically recognized. "Net earnings during the third quarter and first nine months of fiscal 1999 benefited from lower selling, general and administrative ("S,G&A") expenses. During the quarter ended March 31, 1999, S,G&A was down by $863,000, a decrease of 17% from the prior year third quarter. This improvement is the result of lower legal, salary and benefit expenses. For the nine months, S,G&A expenses were down $1.4 million, a 10% decrease." Paddon went on to state, "At a meeting today, the company's board of directors approved the filing of an application, with Amplicon as the sponsor, to obtain permission to organize a national bank. Amplicon has helped pull together a group of bank professionals, including the recruitment of a president for the bank. The company expects the bank application will be filed within the next 10 days, however, as is typical with such matters, the company does not expect to obtain an approval for many months. If permission is granted by the applicable regulatory agencies regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. , it is anticipated that the bank would operate as a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Amplicon. In part, the purpose of the bank would be to provide business loans to fund the purchase of capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) that will be leased to corporations located throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. that meet the credit parameters established by the bank. We anticipate that the bank would gather deposits using electronic means and a centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. location similar to Amplicon's existing business methods." Based in Orange County, Calif., Amplicon leases high technology capital assets nationwide utilizing an innovative sales management Sales Management Role and Goal Importance of sales management is critical for any commercial organization. Expanding business in not possible without increasing sales volumes, and effective sales management goal is to organize sales team work in such a manner that ensures a organization that delivers cost effective leasing alternatives to meet customer needs. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which involve management assumptions, risks and uncertainties. Consequently, if such management assumptions prove to be incorrect or such risks or uncertainties materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , the company's actual results could differ materially from the results forecast in the forward-looking statements. For further discussion regarding management assumptions, risks and uncertainties, readers should refer to the company's 1998 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and the 1999 quarterly reports on Form 10-Q Form 10-Q See 10-Q. .
AMPLICON INC.
Condensed Consolidated Statements of Earnings
(000's except per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
1999 1998 1999 1998
(unaudited)
Revenues $60,559 $81,829 $173,659 $244,053
Gross Profit 11,927 13,010 36,842 37,272
Earnings before
income taxes 7,728 7,949 23,770 22,767
Net earnings $ 4,752 $ 4,809 $ 14,618 $ 13,774
Basic earnings
per share $ 0.40 $ 0.41 $ 1.23 $ 1.17
Diluted earnings
per share $ 0.39 $ 0.39 $ 1.19 $ 1.12
Weighted average
number of common
shares outstanding 11,866 11,810 11,850 11,792
Diluted number of
common shares
outstanding 12,303 12,431 12,316 12,348
AMPLICON INC.
Condensed Consolidated Balance Sheets
(000's)
ASSETS March 31, 1999 June 30, 1998
(Unaudited) (Audited)
Cash and short term investments $ 50,888 $ 15,192
Net receivables 58,251 87,229
Net investment in capital leases 93,714 109,149
Discounted lease rentals assigned
to lenders 262,869 297,227
Other assets 4,067 3,808
$469,789 $512,605
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $ -- $ --
Accounts payable 12,013 25,766
Nonrecourse debt 239,848 269,769
Income taxes payable, including
deferred taxes 26,418 30,018
Net deferrals (1) 28,687 34,894
Other liabilities 13,370 16,213
Total liabilities $320,336 $376,660
Stockholders' Equity 149,453 135,945
$469,789 $512,605
(1) Includes deferred interest income of $23,021 and $27,458 at
March 31, 1999 and June 30, 1998, respectively, which is
offset by deferred interest expense related to the company's
discounted lease rentals assigned to lenders.
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