Big Flower Reports 17% Adjusted Net Income Increase in Second Quarter.NEW YORK--(BUSINESS WIRE)--July 23, 1996--Big Flower Press Holdings, Inc. (NYSE NYSE See: New York Stock Exchange : BGF BGF Black Guerrilla Family (Afro-American prison gang symbol/tattoo) BGF Boursier du Gouvernement Français (French) BGF Black Guerilla Family (gang) BGF Best Guy Friend ), a leading advertising and information services See Information Systems. company, announced today that the positive impact of recent acquisitions helped produce a 17 percent increase in 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 adjusted net income for the second quarter ended June June: see month. 30, 1996. Reported second quarter net income rose to $1.6 million, or 9 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with pro forma adjusted net income (a) of $1.3 million, or 8 cents per share for the same quarter a year ago. For the 12-months ended June 30, 1996, the company reported a pro forma adjusted net income of $10.9 million, or 65 cents per share, compared to a pro forma adjusted net income of $8.1 million, or 49 cents per share for the same period in 1995, a gain of 35 percent. The Webcraft and Laser Tech Color acquisitions have added new advertising services and products to those which we currently offer our customers, and have created significant value for our shareholders, said Theodore Theodore. For Russian rulers thus named, use Feodor. Ammon Ammon, in the Bible Ammon (ăm`ən), in the Bible, people living E of the Dead Sea. Their capital was Rabbath-Ammon, the present-day Amman (Jordan). Their god was Milcom, to whom Solomon built an altar. , 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 Big Flower. Sales Big Flower sales in the second quarter rose approximately 26 percent to $293 million, up from $233 million for the same period last year. For the 12-months ended June 30, 1996, sales increased to $1 billion from $897 million, or 17 percent from the same period in 1995. Earnings Before Interest, Taxes, Depreciation and Amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $27.5 million in the second quarter from $23.3 million in the same period last year, a gain of 18 percent. For the 12 months ended June 30, 1996, EBITDA increased to $96 million from $90 million for the same period last year. Gross Profits Gross profits in the second quarter rose to $42.7 million from $32.5 million for the same period last year, a gain of 31 percent; for the 12 months ended June 30, 1996, gross profits increased to $139 million from $119 million for the same period last year, a gain of 17 percent. I am pleased with our second quarter results and the momentum our business has gained. We are seeing volume improvement, stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders of customer demand and softer paper prices, which are all good indicators for our business, said Ed Reilly Reilly is a surname distinct from O'Reilly and Riley, and may refer to:
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Big Flower. I am particularly pleased with the integration progress among our three operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon . During the second quarter, our cross-selling Cross-selling is the term used to describe the sale of additional products or services to a customer. Less frequently it is used to describe the sale of services to additional business units at an account or to different geographic units of a customer. efforts have produced significant new annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenue and we have identified material cost savings within the companies, Mr. Reilly added. In commenting on the business outlook for the remainder of 1996, Mr. Reilly said, I am optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the overall economic environment in which our businesses will operate for the coming two quarters. Retailers are entering the fall with a good degree of confidence, and the direct mail business will be strong for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future. We will continue to be challenged by pricing concessions which were necessary in the first quarter environment for us to protect our customer base and our market share. Our task now is to open new markets and produce higher-margin business to offset the competitive pressure. Big Flower Press is a leading advertising and information services company with expertise in advertising circulars, circulation-building newspaper products, image management, specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. direct mail products, commercial games and fragrance samplers. For the 12-month period ended June 30, 1996, Big Flower Press generated net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of approximately $1.3 billion, pro forma for the effects of the Laser Tech Color and Webcraft Technologies acquisitions. -0- (a) The 1995 pro forma adjusted results assume that the company s initial public offering and a concurrent refinancing Refinancing An extension and/or increase in amount of existing debt. of certain high-cost debt had occurred on January January: see month. 1, 1995. Pro forma results also exclude a $1.7 million one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge for relocating the executive offices of Treasure Chest Advertising, Big Flower s principal operating unit. -0-
Big Flower Press Holdings, Inc.
Statement of Income
(In thousands except per share data)
Three Months Ended June 30,
1996 1995 1995
Actual Actual Pro-Forma (a)
Net sales $ 293,202 $ 233,372 $ 233,372 Cost of production 250,525 200,867 200,867 Gross profit 42,677 32,505 32,505 Selling, general and administrative expense 28,077 19,287 19,287 Interest expense 9,568 10,154 6,895(b) Interest income (27) (27) (27) Other expense, net 1,955 1,818 1,818 Preferred dividends of a subsidiary -- 672 -- Income (loss) before income taxes 3,104 601 4,532 Provision (benefit) for income taxes 1,552 2,919 4,222 (c) Income (loss) before extraordinary item 1,552 (2,318) 310 Extraordinary item, net -- -- -- Net income (loss) $ 1,552 $(2,318) $ 310 Income (loss) per common share and common share equivalent before extraordinary item $ 0.09 $ (0.22) $ 0.02 Extraordinary item - early extinguishment of debt $ -- $ -- $ -- Net income (loss) per common share and common share equivalent $ 0.09 $ (0.22) $ 0.02 Weighted average shares outstanding 16,862,701 10,763,416 16,263,415 (d) Supplemental information EBITDA (e) $ 27,507 $ 23,300 $ 23,300 Adjusted net income (loss) $ 1,552 -- $ 1,324 (f) Adjusted net income (loss) per common share and common share equivalent $ 0.09 -- $ 0.08 (f) (a) As if public offering occured on Jan. 1, 1995. (b) Reflects reduced interest expense due to lower levels of debt in connection with the public offering and lower interest rates in connection with the new credit agreement. (c) Reflects a provision for income taxes at a 40% effective income tax rate on the pro-forma adjustments to interest expense and interest income. (d) Actual shares outstanding is adjusted for the 2 for 1 stock split in connection with the public offering. (e) "EBITDA" represents the sum of income before taxes, depreciation and amortization, interest income and expense, equity in (earnings) loss of unconsolidated companies, other expense, net, and asset writedowns. (f) Reflects exclusion of charges of $1.7 million ($1.0 million after taxes) in connection with the 1995 relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of the Treasure Chest executive offices.
Big Flower Holdings Inc.
Statement of Income
(In Thousands Except Per Share Data)
Twelve Months Ended June 30,
1996 1996 1995 1995
Actual Pro-Forma(a) Actual Pro-Forma(b)
(b)
Net sales $1,046,932 $1,046,932 $ 896,595 $ 896,595
Cost of production 907,722 907,722 777,728 777,728
Gross profit 139,210 139,210 118,867 118,867
Selling, general and
administrative expense 83,194 83,194 70,587 70,587
Interest expense 38,326 33,629 (c) 40,486 27,710(c)
Interest income (548) (138)(c) (279) (279)
Other expense, net 13,730 8,774 (d) 2,836 2,836
Preferred dividends of
a subsidiary 1,068 (e) 2,444 (e)
Income (loss) before
income taxes 3,440 13,751 2,793 18,013
Provision (benefit) for
income taxes 1,856 6,050 (f) 5,839 10,949 (f)
Income (loss) before
extraordinary item 1,584 7,701 (3,046) 7,064
Extraordinary item, net 21,140 -- (g) -- --
Net income (loss) $(19,556) $ 7,701 $ (3,046) $ 7,064
Income (loss) per common
share and common share
equivalent before
extraordinary item ($0.01) (h) $0.46 ($0.28) $0.43
Extraordinary item - early
extinguishment of
debt ($1.46) $0.00 $0.00 $0.00
Net income (loss) per
common share and common
share equivalent ($1.35) $0.46 ($0.28) $0.43
Weighted average shares
outstanding 14,472,029 16,624,203 (i) 10,831,957 16,331,957(j)
Supplemental information EBITDA $96,357 (j) $ 96,357 $ 89,756 $ 89,756 Adjusted net income (loss) $ 10,881 $ 8,078 (k) Adjusted net income (loss) per common share and common share equivalent $ 0.65 $ 0.49 (k)(a) Excludes non recurring charges related to the acquisition of Webcraft Technologies and related financing transactions. (b) As if public offering occurred on Jan. 1, 1995. (c) Reflects reduced interest expense due to lower levels of debt in connection with the public offering and lower interest rate in connection with the new credit agreement. Interest income on temporarily idle funds resulting from the public offering have been eliminated. (d) Excludes $4,956 of non recurring charges in connection with the acquisition of Webcraft Technologies and related financing transactions. (e) Reflects the elimination of dividends on the redeemable preferred stock which was purchased in connection with the public offering. (f) Reflects a provision for income taxes at a 40% effective income tax rate on the pro-forma adjustments to interest expense and interest income. (g) Reflects elimination of extraordinary expenses related to the early extinguishment of debt in connection with the pubic offering and the premium on purchase of Webcraft Technologies bonds refinanced on acquisition. (h) Reflects the impact of a $1.7 million premium paid on the purchase of the redeemable preferred stock in connection with the public offering. (i) Actual shares outstanding is adjusted for the 2 for 1 stock split in connection with the public offering. (j) "EBITDA" represents the sum of income before taxes, depreciation and amortization, interest income and expense, equity in (earnings) loss of unconsolidated companies, other expense, net and asset writedowns. (k) Reflects exclusion of charges of $1.7 million ($1.0 million after taxes) in connection with the 1995 relocation of the Treasure Chest executive offices and charges of $1.6 million ($1.0 million after taxes) in connection with a plant closing and $3.7 million ($2.2 million after taxes) in connection with the Treasure Chest corporate office relocation in 1996. CONTACT: Nancy S. Murray Murray, river, Australia Murray, principal river of Australia, 1,609 mi (2,589 km) long, rising in the Australian Alps, SE New South Wales, and flowing westward to form the New South Wales–Victoria boundary. Big Flower Press 212/521-1606 |
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