Danka Announces Settlement of Litigation.Business Editors ST. PETERSBURG Petersburg, city (1990 pop. 38,386), politically independent and in no county, SE Va., on the Appomattox River; inc. 1850. A port of entry and an important tobacco market, it has industries producing chemicals, pharmaceuticals, furniture, structural steel, lumber, , Fla.--(BUSINESS WIRE)--May 16, 2000 Danka Business Systems PLC (Nasdaq:DANKY) today announced that it has settled, for $4.3 million, a lawsuit lawsuit: see procedure; tort. brought against the Company by Wasserstein Was·ser·stein , Wendy Born 1950. American playwright noted for her comedies, such as The Heidi Chronicles (1988), for which she won a Pulitzer Prize. Perrella, Inc., its former financial advisor. The complaint had sought damages of not less than $16.0 million, together with certain future claims, all of which have now been disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of by the settlement. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. auditing standards and procedures, this settlement is considered a subsequent event to the Company's fiscal year 2000 financial statements. As a result, the Company has adjusted its consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge for the fourth quarter and fiscal year 2000 as previously reported on May 4, 2000. The $4.3 million litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement is included in interest and other, net on the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. consolidated financial statements. Net earnings for the twelve months ended March 31, 2000 totaled $10.3 million, or $0.10 per American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. ("ADS") on a 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. basis. The impact of the settlement for the twelve months was $0.05 per ADS.
DANKA BUSINESS SYSTEMS PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per American Depositary Share ("ADS") amounts)
For the three months ended
----------------------
March 31, March 31,
2000 1999(1)
----------------------------------------- --------- ---------
Revenue: (unaudited) (unaudited)
Retail equipment sales $ 206,920 $ 168,394
Retail service, supplies and rentals 380,261 461,996
Wholesale 27,968 43,713
----------------------------------------- --------- ---------
Total revenue 615,149 674,103
----------------------------------------- --------- ---------
Costs and operating expenses:
Cost of retail equipment sales 150,169 122,286
Special charges, cost of
retail equipment sales -- (16,482)
Retail service, supplies and rental costs 250,347 279,412
Special charges, retail service,
supplies and rental costs -- 1,153
Wholesale costs of revenue 22,781 39,599
Special charges, wholesale costs -- 514
Selling, general and
administrative expenses 187,224 228,495
Special charges, general
and administrative expenses -- (195)
Amortization of intangible assets 3,553 4,204
Write-off of goodwill
and other long-lived assets -- 1,616
Commitment to Kodak under R&D agreements -- 15,934
Restructuring charges (credits) (4,148) 2,644
----------------------------------------- --------- ---------
Total costs and operating expenses 609,926 679,180
----------------------------------------- --------- ---------
Earnings (loss) from operations 5,223 (5,077)
Interest expense and other, net 30,993 18,330
----------------------------------------- --------- ---------
Loss before income taxes (25,770) (23,407)
Provision (benefit) for income taxes (7,215) (10,980)
----------------------------------------- --------- ---------
Net loss $ (18,555) $ (12,427)
----------------------------------------- --------- ---------
Basic earnings (loss) per ADS:
Income available to common
shareholders per ADS(2) $ (0.39) $ (0.22)
Weighted average ADSs 58,529 57,017
Diluted earnings (loss) per ADS:
Income available to common
shareholders per ADS(2) $ (0.39) $ (0.22)
Weighted average ADSs 58,529 57,017
Note 1: Certain prior year amounts have been reclassified to
conform with the current year presentation.
Note 2: Income available to common shareholders for the three
months ended 3/31/00 includes dividends and accretion of the 6.5%
senior convertible participating shares.
DANKA BUSINESS SYSTEMS PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per American Depositary Share ("ADS") amounts)
For the twelve months ended
--------------------------
March 31, March 31,
2000 1999(1)
------------------------------------ ----------- -----------
Revenue: (unaudited) (audited)
Retail equipment sales $ 733,817 $ 755,485
Retail service, supplies
and rentals 1,645,054 1,920,821
Wholesale 116,751 220,914
------------------------------------ ----------- -----------
Total revenue 2,495,622 2,897,220
------------------------------------ ----------- -----------
Costs and operating expenses:
Cost of retail equipment sales 519,556 584,479
Special charges, cost of
retail equipment sales -- 30,709
Retail service, supplies
and rental costs 1,012,200 1,188,327
Special charges, retail service,
supplies and rental costs -- 27,144
Wholesale costs of revenue 93,453 189,261
Special charges, wholesale costs -- 514
Selling, general and
administrative expenses 738,319 919,897
Special charges, general
and administrative expenses -- 16,805
Amortization of intangible assets 14,258 19,714
Write-off of goodwill and
other long-lived assets -- 109,474
Commitment to Kodak under
R&D agreements -- 53,434
Restructuring charges (credits) (4,148) 40,818
------------------------------------ ----------- -----------
Total costs and operating expenses 2,373,638 3,180,576
------------------------------------ ----------- -----------
Earnings (loss) from operations 121,984 (283,356)
Interest expense and other, net 107,631 74,197
------------------------------------ ----------- -----------
Earnings (loss) before income taxes 14,353 (357,553)
Provision (benefit) for income taxes 4,019 (62,773)
------------------------------------ ----------- -----------
Net earnings (loss) $ 10,334 $ (294,780)
------------------------------------ ----------- -----------
Basic earnings (loss) per ADS:
Income available to common
shareholders per ADS(2) $ 0.10 $ (5.18)
Weighted average ADSs 57,624 56,915
Diluted earnings (loss) per ADS:
Income available to common
shareholders per ADS(2) $ 0.10 $ (5.18)
Weighted average ADSs 58,525 56,915
Note 1: Certain prior year amounts have been reclassified to
conform with the current year presentation.
Note 2: Income available to common shareholders for the three
months ended 3/31/00 includes dividends and accretion of the 6.5%
senior convertible participating shares.
DANKA BUSINESS SYSTEMS PLC
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, March 31,
2000 1999
---------------------------------------- ----------- -----------
Assets (unaudited) (audited)
Current assets:
Cash and cash equivalents $ 64,861 $ 66,095
Accounts receivable, net 527,793 571,470
Inventories 328,290 356,139
Prepaid expenses, deferred
income taxes
and other current assets 81,837 56,951
Assets of business held for sale -- 62,791
---------------------------------------- ----------- -----------
Total current assets 1,002,781 1,113,446
Equipment on operating
leases, net 199,551 264,625
Property and equipment, net 92,614 92,963
Intangible assets:
Goodwill, net 305,043 334,964
Noncompete agreements, net 1,863 2,477
Deferred income taxes and
other assets 65,845 96,667
---------------------------------------- ----------- -----------
Total assets $ 1,667,697 $ 1,905,142
---------------------------------------- ----------- -----------
Liabilities and shareholders'
equity
Current liabilities:
Current maturities of
long-term debt and notes payable $ 86,776 $ 89,732
Accounts payable 178,870 162,294
Accrued expenses and other
current liabilities 229,472 333,446
Deferred revenue 40,045 51,818
Liabilities of business
held for sale -- 17,240
---------------------------------------- ----------- -----------
Total current liabilities 535,163 654,530
6.75% convertible subordinated notes 200,000 200,000
Long-term debt and notes
payable, less current maturities 515,406 852,415
Deferred income taxes and
other long-term liabilities 32,536 27,033
---------------------------------------- ----------- -----------
Total liabilities 1,283,105 1,733,978
---------------------------------------- ----------- -----------
6.50% convertible participating shares,
redeemable, $1.00 stated value 207,878 --
----------- -----------
Shareholders' equity:
Ordinary shares, 1.25 pence
stated value 4,892 4,758
Additional paid-in capital 317,056 304,436
Retained earnings (deficit) (66,226) (72,815)
Accumulated other comprehensive
(loss) income (79,008) (65,215)
---------------------------------------- ----------- -----------
Total shareholders' equity 176,714 171,164
---------------------------------------- ----------- -----------
Total liabilities and
shareholders' equity $ 1,667,697 $ 1,905,142
---------------------------------------- ----------- -----------
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