Aztec Technology Partners, Inc. Announces Results for Fiscal Year 1998 and the Fourth Quarter.BOSTON--(BUSINESS WIRE)--July 1, 1998 --Fiscal Year 1998 Revenues up 52%; Proforma Proforma A financial projection based on assumptions. Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. up 29% --Year to year quarterly revenues up 88%; Proforma Operating Income up 55% --Commitment Letter Signed for $140 million Credit and Acquisition Facility with BankBoston --Letter of Intent Executed to Acquire a Profitable, $35 million Revenue, Enterprise Design/Implementation Company Aztec Technology Partners (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AZTC), a leading single-source provider of information technology business solutions, today announced year-end and fourth quarter results for the period ending April 25, 1998 For the fourth quarter ended April 25, 1998, revenues increased 88%, to $65.8 million, compared to fourth quarter fiscal year 1997 revenues of $35.0 million. Operating income before one-time charges, goodwill amortization and expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. (from Aztec's former parent USOP USOP United States Office in Pristina USOP User Service Order Profile ) for the same period was $4.7 million, compared to $3.0 million in 1997, a 55% increase. The 1998 fourth quarter S,G&A expenses included $1.5 million relating to the spin-off from U.S. Office Products Company (USOP), consisting of operating management earnouts at newly acquired companies, bad debt reserves and duplicated corporate overhead. In addition to these S,G&A charges, the fourth quarter includes one-time charges of $1 million in strategic restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). expenses allocated to the Company by USOP and $750,000 of expenses relating to the Company's spin-off. For the fiscal year ended April 25, 1998, revenues increased 52%, to $208.3 million, compared to revenues of $136.3 million for fiscal year 1997. Proforma revenues for the fiscal year were $256.9 million, based on Aztec owning all 10 operating companies operating company A business that engages in transactions with outsiders. for the entire year. Operating income, for the fiscal year, before the one-time charges mentioned above, was $16.3 million, compared to $12.6 million for fiscal year 1997. In other news, Aztec also announced the signing of a letter of intent for the acquisition, for $54 million, of a highly profitable, $35 million revenue, Midwest based enterprise design and implementation company with earnings margins before interest and taxes in the high teens. Aztec also confirmed that it had signed a commitment letter for a credit and acquisition facility with BankBoston for $140 million (see releases dated July 1, 1998). "We witnessed exceptional revenue growth for the year and remain very enthusiastic about the rapid evolution of the IT services market," said Jim Claypoole, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the Company. "I am particularly enthused by the successful results of the Aztec cross selling initiative. As we continue to grow by targeted acquisition and internal development, we are well positioned to become the single source provider of the seamless design, delivery and implementation of IT solutions that consistently meet our clients' strategic business needs." "The Company completed the spin-off from USOP in a solid financial position," said Doug Johnson The name Doug Johnson may refer to the following people:
During all of fiscal year 1998, Aztec operated as the technology solutions division of U.S. Office Products Company, one of the country's fastest growing suppliers of office products and furniture. The Company was spun-off from USOP on June 9, 1998 as part of USOP's strategic restructuring plan, which included the spin-off of three other USOP divisions. Aztec Technology Partners is a single-source provider of a broad range of information technology business solutions. Aztec currently consists of 10 companies that have been in business for an average of more than 15 years and have a track record of superior client service. These companies offer complementary IT solutions which allow Aztec to be a `one-stop' IT solutions provider with exceptional personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. services. Aztec's primary focus is the mid-market sector, as well as Fortune 1000 companies, in a wide range of industries such as: communications, health care, financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , government, manufacturing, pharmaceuticals, professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. and technology. The company has offices in 10 states and employs more than 1100 people. The company is publicly traded on the NASDAQ National Market under the symbol AZTC. This press 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. ," within the meaning of federal securities laws, that involve risks and uncertainties. All statements herein, other than those consisting solely of historical facts, that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as business strategy, measures to implement strategy, competitive strengths, goals, references to future success and other events, may be forward-looking statements. Statements herein are based on certain assumptions and analyses by the Company in light of its experience and its perception of historical trends, current conditions and potential future developments, as well as other factors it believes are appropriate in the circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . However, whether actual results, events and developments will conform with the Company's expectations is subject to a number of risks and uncertainties and important factors could cause actual results, events and developments to differ materially from those referenced in, contemplated by or underlying any forward-looking statements herein, including, among others, the continued development and viability of the Company's operations, the Company's ability to manage its growth, the impact of industry and economic conditions, competition and other factors, many of which are beyond the control of the Company. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. The following financial data summarizes Aztec Technology Partners financial results for the fourth quarter and year ended April 25, 1998. Aztec Technology Partners, Inc. Consolidated Statement of Operations See Income statement. (In thousands, except per share data) Three Months Ended Fiscal Year Ended Pro Forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma Results Fiscal Year April 25, April 26, April 25,April 26, Ended 1998 1997 1998 1997 April 25, 1998 (Unaudited)(Unaudited) (Unaudited) Revenues $ 65,829 $ 34,983 $ 208,341 $136,278 $256,903 Cost of revenues 50,422 26,080 158,317 102,129 192,053 Gross profit 15,407 8,903 50,024 34,149 64,850 S, G & A expenses 12,234(1) 5,888 35,185(1) 21,525 43,470(1) Amortization expense 426 840 1,704 Operating income before one-time charges 2,747 3,015 13,999 12,624 19,676 One-time charges: Non-recurring acquisition costs 368 2,274 Strategic restructuring plan 1,750 1,750 -- -- Operating income after one-time charges 997 2,647 12,249 10,350 19,676 Interest expense and other (9) (272) (21) 103 118 Income before provision for income taxes 1,006 2,919 12,270 10,247 19,558 Provision for income taxes 1,105 1,753 5,797(2) 3,524 8,639 Net income $ (99) $ 1,166 $ 6,473 $ 6,723 $ 10,919 Operating income before one-time charges, goodwill and spin-off expenses $ 4,673 $ 3,015 $ 16,339 $ 12,624 $ 22,880 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. before one-time charges: Net income before one-time charges $ 1,321 $ 1,534 $ 7,893 $ 8,997 $ 10,919 Basic EPS before one-time charges $ 0.05 $ 0.08 $ 0.33 $ 0.50 $ 0.50 Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS before one-time charges $ 0.05 $ 0.07 $ 0.32 $ 0.49 $ 0.50 GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). earnings per share: Basic $ (0.00) $ 0.06 $ 0.27 $ 0.37 $ 0.50 Diluted $ (0.00) $ 0.06 $ 0.27 $ 0.37 $ 0.50 Weighted average shares outstanding: Basic EPS data 26,770 20,433 23,911 18,005 21,938 Diluted EPS data 27,211 20,714 24,385 18,352 21,938 (1) The 1998 fourth quarter S,G&A expenses include $1.5 million relating to the spin-off from USOP, consisting of operating management earnouts at acquired companies, bad debt reserves and duplicated corporate overhead. (2) The effective tax rate for fiscal year 1998 was 47% compared to 34% in fiscal year 1997 due to the non-deductibility of goodwill and $1 million of strategic restructuring expenses.
CONTACT: Aztec Technology Partners
Doug Johnson
617/623-3100
dougj@bscg.com
or
PAN Communications, Inc.
Christina Pandapas / Mark Nardone
978/474-1900
cpandapas@pancomm.com
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