Black Box Corporation Reports First Quarter Fiscal 2004 Results.Business Editors PITTSBURGH Pittsburgh (pĭts`bərg), city (1990 pop. 369,879), seat of Allegheny co., SW Pa., at the confluence of the Allegheny and the Monongahela rivers, which there form the Ohio River; inc. 1816. , Pa.--(BUSINESS WIRE)--July 22, 2003 Black Box Corporation (Nasdaq:BBOX) today reported for the first quarter ended June June: see month. 29, 2003, 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 of 60 cents compared to 70 cents last year, down 14%. Corresponding reported net income for the quarter was $11.5 million or 9.0% of revenues, compared to $14.7 million or 9.5% of revenues last year. Total revenues for the quarter were $128 million, down 17% from $154 million last year. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. revenues were $86 million, down 20% from last year's $108 million. European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. revenues were $34 million, down 7% from last year's $36 million. All Other revenues were $8 million, down 20% from last year's $10 million. First quarter cash provided by operating activities was $14 million or 123% of net income, compared to $19 million or 132% of net income last year. Free cash flow was $16 million compared to $24 million last year. The first quarter's free cash flow of $16 million was used towards: Black Box stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. of $14 million; dividend payments of $1 million; and merger activity of $1 million. The Company also used $5 million of cash on hand for additional stock repurchases during the quarter. Management believes that free cash flow, defined by the Company as cash provided by operating activities less net capital expenditures, plus proceeds from option exercises, plus or minus foreign currency translation adjustments, is an important measurement of liquidity as it represents the total cash available for stock repurchases, mergers, dividend payments or debt reduction. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with SEC Regulation G, the attached financial charts include reconciliations of non-GAAP financial measures in this release to the most directly comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measure. Commenting on the first quarter results, Mr. Young, said, "Although revenues were down, Black Box remains operationally and financially strong. This is a direct result of our commitment and demonstrated ability to properly size our cost structure. At the current level of revenues we are pleased with our overall operating performance, and particularly, with net income at 9% of revenues and operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. of $14 million, or 123% of net income. In addition, we continue to fund our strategic growth initiatives." Mr. Young went on to say, "These strategic growth initiatives are focused both on increasing market share in existing markets and developing new markets. Specific examples would include our innovative One Source for Worldwide Infrastructure Program and our recently announced In-Home in-home adj. Operating in or provided at the home of the customer or patient: in-home shopping; an in-home nursing program. Networking Partnership Program. Although the world economy remains challenging, Black Box remains well positioned for future long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. profitable growth." The Company will conduct a conference call beginning at 10:45 a.m. Eastern Time today, July July: see month. 22, 2003. Fred Young For the Native American physicist of the same name, see . Fred Matthews Young (died December 1993) was a Canadian politician, ordained minister and long time organizer for the Co-operative Commonwealth Federation (CCF). , Chief Executive Officer, will host the call. To participate in the call, please dial (612) 326-1011 approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 15 minutes prior to the starting time Noun 1. starting time - the time at which something is supposed to begin; "they got an early start"; "she knew from the get-go that he was the man for her" commencement, get-go, offset, outset, showtime, start, kickoff, beginning, first and ask to be connected to the Black Box Earnings Call. A replay of the conference call will be available for one week after the teleconference by dialing (320) 365-3844 and using access code 690382. This 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. made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected, including levels of business activity and global economic conditions. Any information, which is not historical in nature, constitutes such forward-looking statements and speaks only as of the date of this release. Black Box is the world's largest technical services company dedicated to designing, building and maintaining today's complicated network infrastructure systems. Black Box services 150,000 clients in 132 countries with 117 offices throughout the world.
BLACK BOX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended
--------------------
June 29, June 30,
2003 2002
---------- ---------
Revenues $128,347 $154,412
Cost of sales 74,900 92,520
---------- ---------
Gross profit 53,447 61,892
Selling, general and administrative expenses 34,985 37,704
Intangibles amortization 89 101
---------- ---------
Operating income 18,373 24,087
Interest expense, net 420 772
Other (income)/expenses, net (9) 37
---------- ---------
Income before income taxes 17,962 23,278
Provision for income taxes 6,466 8,613
---------- ---------
Net income $11,496 $14,665
========== =========
Basic earnings per common share $0.62 $0.72
Diluted earnings per common share $0.60 $0.70
Weighted average common shares 18,617 20,266
Weighted average common and common
equivalent shares outstanding 19,062 21,023
BLACK BOX CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited) (Audited)
June 29, March 31,
ASSETS 2003 2003
----------- ---------
Current assets:
Cash and cash equivalents $9,227 $14,043
Trade accounts receivable, net 96,362 100,263
Inventories, net 40,436 40,047
Costs and estimated earnings in excess of
billings on uncompleted contracts 14,520 18,261
Other current assets 15,053 16,052
----------- ---------
Total current assets 175,598 188,666
Property, plant and equipment, net 33,536 34,737
Intangibles, net 402,732 399,299
Other assets 3,705 4,027
----------- ---------
Total assets $615,571 $626,729
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current debt $443 $926
Accounts payable 22,876 30,508
Billings in excess of costs and estimated
earnings on uncompleted contracts 2,816 3,295
Accrued expenses 26,623 32,547
Accrued taxes 4,587 2,940
----------- ---------
Total current liabilities 57,345 70,216
----------- ---------
Long-term debt 50,023 49,453
Other liabilities 12,419 12,638
Stockholders' equity:
Common stock 23 23
Additional paid-in capital 295,524 295,271
Retained earnings 369,629 359,037
Treasury stock, at cost (178,106) (163,547)
Accumulated other comprehensive gain 8,714 3,638
----------- ---------
Total stockholders' equity 495,784 494,422
----------- ---------
Total liabilities and stockholders' equity $615,571 $626,729
=========== =========
BLACK BOX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
Quarter Ended
June 29, June 30,
2003 2002
--------- --------
Cash flows from operating activities:
Net income $11,496 $14,665
Adjustments to reconcile net income to cash
provided
by operating activities:
Intangibles amortization 89 101
Depreciation 1,675 1,942
Changes in working capital items:
Account receivable, net 3,901 5,720
Inventories, net (389) 188
Other current assets 4,780 (1,136)
Accounts payable and accrued liabilities (7,409) (2,066)
--------- --------
Cash provided by operating activities 14,143 19,414
--------- --------
Cash flows from investing activities:
Capital expenditures, net of disposals 25 (273)
Merger transactions, net of cash acquired (784) (2,749)
--------- --------
Cash used in investing activities (759) (3,022)
--------- --------
Cash flows from financing activities:
Revolving credit borrowings, net 87 (15,193)
Proceeds from exercise of options 246 1,436
Payment of dividends (904) -
Purchase of treasury stock (19,278) (3,694)
--------- --------
Cash used in financing activities (19,849) (17,451)
--------- --------
Foreign currency translation adjustment 1,649 3,076
--------- --------
(Decrease)/ increase in cash and cash equivalents (4,816) 2,017
Cash and cash equivalents at beginning of period 14,043 13,423
--------- --------
Cash and cash equivalents at end of period $9,227 $15,440
========= ========
Interest paid $362 $796
Income taxes paid $5,083 $6,044
RECONCILIATIONS: In addition to reported results under U.S. GAAP for the fiscal periods, the following financial highlights table also include, where appropriate, a reconciliation of free cash flow (which is a non-GAAP measure), to the most directly comparable GAAP measures. All dollar amounts are in thousands except per share amounts. A reconciliation of cash provided by operating activities to free cash flow is presented below:
1Q04 1Q03
----------------------------------------------------------------------
Cash provided by operating activities $14,143 $19,414
Plus or (minus):
Net capital disposals/expenditures 25 (273)
Foreign currency translation adjustment 1,649 3,076
Proceeds from stock option exercises 246 1,436
----------------------------------------------------------------------
Free cash flow $16,063 $23,653
----------------------------------------------------------------------
SUPPLEMENTAL INFORMATION: Additionally, the following supplemental information is being provided for comparisons of first quarter ended June 29, 2003 reported results to first quarter prior year. A reconciliation of results excluding special items (which is a non-GAAP measure) to the GAAP measure is presented where appropriate. All dollar amounts are in thousands. Information on revenues and 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. by geography geography, the science of place, i.e., the study of the surface of the earth, the location and distribution of its physical and cultural features, the areal patterns or places that they form, and the interrelation of these features as they affect humans. is presented below:
1Q04 4Q03 1Q03
----------------------------------------------------------------------
Revenues:
North America $86,417 $87,132 $107,969
Europe 33,598 37,630 36,018
All Other 8,332 10,050 10,425
---------------------------
Total $128,347 $134,812 $154,412
Operating Income:
North America $11,889 $5,056 $16,085
% of North America revenues 13.8% 5.8% 14.9%
Europe $4,602 $116 $5,633
% of Europe revenues 13.7% 0.3% 15.6%
All Other $1,882 $2,136 $2,369
% of All Other revenues 22.6% 21.3% 22.7%
---------------------------
Total $18,373 $7,308 $24,087
% of total revenues 14.3% 5.4% 15.6%
Special Items:
North America $-- $5,625 $--
Europe -- 4,592 --
All Other -- 154 --
---------------------------
Total $-- $10,371 $--
Operating Income excluding
special items:
North America $11,889 $10,681 $16,085
% of North America revenues 13.8% 12.3% 14.9%
Europe $4,602 $4,708 $5,633
% of Europe revenues 13.7% 12.5% 15.6%
All Other $1,882 $2,290 $2,369
% of All Other revenues 22.6% 22.9% 22.7%
---------------------------
Total $18,373 $17,679 $24,087
% of total revenues 14.3% 13.1% 15.6%
----------------------------------------------------------------------
Information on revenues and gross profit for hotline 1. (company) Hotline - Hotline Communications Ltd.. 2. (messaging) Hotline - Hotline Connect. services, structured cabling Structured Cabling is defined as building or campus telecommunications cabling infrastructure that consists of a number of standardized smaller elements (hence structured) called subsystems. services and telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. services is presented below:
1Q04 4Q03 1Q03
----------------------------------------------------------------------
Revenues:
Hotline Services $55,976 $61,330 $63,554
Structured Cabling Services 54,600 56,695 73,134
Telephony Services 17,771 16,787 17,724
---------------------------
Total $128,347 $134,812 $154,412
Gross Profit:
Hotline Services $29,109 $31,729 $31,662
% of Hotline Services revenues 52.0% 51.7% 49.8%
Structured Cabling Services $18,134 $15,005 $24,543
% of Structured Cabling Services revenues 33.2% 26.5% 33.6%
Telephony Services $6,204 $6,202 $5,687
% of Telephony Services revenues 34.9% 36.9% 32.1%
---------------------------
Total $53,447 $52,936 $61,892
% of total revenues 41.6% 39.3% 40.1%
----------------------------------------------------------------------
Information on revenues on a same-office basis is presented below:
1Q04 1Q03 Change
----------------------------------------------------------------------
Revenues as reported $128,347 $154,412 (17)%
Less revenues from offices added since Fiscal
2003 (1,975) (219) n/a
----------------------------------------------------------------------
Revenues on same-office basis $126,372 $154,193 (18)%
----------------------------------------------------------------------
Information on various balance sheet ratios, backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. and headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. is presented below:
($ in millions) 1Q04 4Q03 1Q03
----------------------------------------------------------------------
Accounts Receivable:
Gross Accounts
Receivable $ $108.0 $112.0 $119.3
Reserve $ / % $11.7/10.8% $11.7/10.5% $8.1/6.8%
---- ---- ---
Net Accounts
Receivable $ $96.3 $100.3 $111.2
Net Days Sales Outstanding 63 days 63 days 59 days
Inventory:
Gross Inventory $ $44.4 $44.0 $49.7
Reserve $ / % $4.0/9.0% $4.0/9.0% $3.7/7.4%
--- --- ---
Net Inventory $ $40.4 $40.0 $46.0
Net Inventory Turns 7x 8x 8x
Six-Month Order Backlog $58 $51 $54
Team Members 3,009 3,123 3,675
----------------------------------------------------------------------
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion