Danka Reports Third Quarter Operating Results.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. -- Danka Business Systems PLC (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 : DANKY) today reported fiscal year 2006 third quarter revenue of $265.5 million, gross margins of 31.8%, 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. of $5.0 million. Selling, general and administrative (SG&A) expense as a percentage of revenue was 30.0% after the benefit of certain prior period credits described below. The Company reported net income of $8.3 million, or $.05 per share which was favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted by the non-cash resolution of various tax contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. (principally in the U.S.) totaling $11.7 million in the quarter. "Our third quarter results reflect continued pressure on gross margins, particularly in our service business," said Todd Todd , Sir Alexander Robertus 1907-1997. British chemist. He won a 1957 Nobel Prize for his study of nucleic acids and nucleotide structures. Mavis, Danka's Chief Executive Officer. "In the quarter, we delayed taking cost reductions and in fact added training and other related costs in our service group because of ongoing contract negotiations with two of our larger service customers. We are pleased to have successfully concluded these new contracts with Pitney Bowes  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . Management Services and Kodak (company) Kodak - The photographic company responsible for Photo CD. http://kodak.com/. , as we recently announced. In addition, we experienced a continued decline in our average cost per copy, which is being driven by newer technology and a shifting services pricing model. To meet our margin challenges, we have continued to take costs out of the business and execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution on our Managed Print Services strategy and we are pleased with our progress in these areas." For the third quarter: --Total revenue was $265.5 million, 10.5% less than the year-ago period, with retail equipment and related sales declining by 6.4% and retail service revenue declining by 14.3%. Primary reasons for the decline in retail equipment revenue were softness in certain Europe/Australia geographies and unfavorable foreign currency movements. The decline in retail service revenue was due in large part to the continued decline in average cost per copy and the continued shift to a more utility based industry pricing model. Further, the Company continued to experience a slower than anticipated ramp-up in volume from newer printer manufacturer contracts. --Consolidated gross margins were 31.8% of revenue, compared to 36.0% in the year-ago quarter. In the retail equipment segment the factors in the margin decline included worldwide market pressures on pricing, an unfavorable product mix during the quarter and product gaps in color. The decline in retail service margins was due in large part to the effect of lower revenue on fixed service costs, investments to meet service-level obligations to our newer printer manufacturer partners and a decline in average cost per copy. --SG&A expenses were $79.8 million (or 30.0% of sales), 26.9% lower than the year-ago period. Contributing to the decrease were lower overhead and corporate costs as a result of the company's continued streamlining of operations and efficiencies from its Vision 21 initiative. In addition, the Company recovered $3.2 million in prior period overpayments related to a legacy worker's compensation insurance policy and the reduction of a $1.7 million reserve related to the same policy. The Company's improvement in internal systems also led to a $2.2 million recovery of sales taxes sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. , also relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc prior periods. SG&A expense was favorably impacted by these items. --Operating profit from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was $5.0 million, compared to an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of ($3.4) million in the year-ago quarter. "In addition to our continuing efforts to streamline streamline, path of a fluid flowing steadily and without appreciable turbulence. A body is said to be streamlined if its shape offers the least possible resistance to a current of air, water, or other fluid. the business and reduce costs, we're we're Contraction of we are. we're we are also focused on the effective management of working capital," noted Danka Chief Financial Officer Ed Quibell. "In the third quarter we saw a $3.4 million improvement in net working capital. This improvement included a continued use of cash in the rationalization rationalization, in psychology: see defense mechanism. of our accounts payable and accrued expenses Accrued Expense An accounting expense recognized in the books before it is paid for. It is a liability, usually current. These expenses are typically periodic and documented upon a company's balance sheet due to the high probability of collection. , which we expect will favorably impact the operation of our business. The reduction of our cash by $34.8 million was offset by the reduction in our accounts payable and accrued expenses of $37.6 million. We have continued to experience slight improvement in our liquidity ratios as we have focused on the better management of our working capital." Conference Call and Webcast A conference call and Webcast to discuss Danka's third-quarter results has been scheduled for today, Tuesday Tuesday: see week. , February February: see month. 7, at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . To access the Webcast, please go to www.danka.com. To participate in the conference call, callers in 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. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of (and some United Kingdom callers) can dial (800) 309-1555; other international callers should dial (706) 643-7754. No conference number is needed. A recording of the call will be available from approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. two hours after it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have completed through 12:00 a.m. EST on Tuesday, February 14th. To access this recording, please call either (800) 642-1687 or (706) 645-9291. The conference ID number for the replay is 4831368 or visit Danka's Web site. About Danka Danka delivers value to clients worldwide by using its expert technical and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. to implement effective document information solutions. As one of the largest independent providers of enterprise imaging systems and services, the company enables choice, convenience, and continuity. Danka's vision is to empower empower verb To encourage or provide a person with the means or information to become involved in solving his/her own problems customers to benefit fully from the convergence convergence Mathematical property of infinite series, integrals on unbounded regions, and certain sequences of numbers. An infinite series is convergent if the sum of its terms is finite. of image and document technologies in a connected environment. This approach will strengthen the company's client relationships and expand its strategic value. For more information, visit Danka at www.danka.com.
Contacts: Danka Investor Relations - Cheley Howes, 727-622-2760
Danka London - Paul G. Dumond, 44-207-605-0154
Danka is a registered trademark and TechSource is a trademark of Danka Business Systems PLC. All other trademarks are the property of their respective owners. Certain statements contained herein, or otherwise made by our officers, including statements related to our future performance and our outlook for our businesses and respective markets, projections, statements of our plans or objectives, forecasts of market trends and other matters, are 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. , and contain information relating to us that is based on our beliefs as well as assumptions, made by, and information currently available to us. The words "goal," "anticipate," "expect," "believe," "could," "should," "intend" and similar expressions as they relate to us are intended to identify forward-looking statements, although not all forward looking statements contain such identifying words. No assurance can be given that the results in any forward-looking statement will be achieved. For the forward-looking statements, we claim the protection of 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. for forward-looking statements provided for in 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, Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. and Section 21E of the Securities Exchange Act of 1934, or the Exchange Act. Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those reflected in the forward-looking statements. Factors that might cause such actual results to differ materially from those reflected in any forward-looking statements include, but are not limited to, the following: (i) any inability to successfully implement our strategy; (ii) any inability to successfully implement our cost 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). plans to achieve and maintain cost savings; (iii) any inability to comply with the Sarbanes-Oxley Act See SOX. of 2002; (iv) any material adverse change in financial markets, the economy or in our financial position; (v) increased competition in our industry and the discounting of products by our competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. ; (vi) new competition from non-traditional competitors as the result of evolving and converging con·verge v. con·verged, con·verg·ing, con·verg·es v.intr. 1. a. To tend toward or approach an intersecting point: lines that converge. b. technology; (vii) any inability by us to procure To cause something to happen; to find and obtain something or someone. Procure refers to commencing a proceeding; bringing about a result; persuading, inducing, or causing a person to do a particular act; obtaining possession or control over an item; or making a person , or any inability by us to continue to gain access to and successfully distribute current and new products, including digital products, color products, multi-function products and high-volume copiers, or to continue to bring current products to the marketplace at competitive costs and prices; (viii) any inability to arrange financing for our customers' purchases of equipment from us; (ix) any inability to successfully enhance, unify 1. (database, product) Unify - A relational database produced by Unify Corporation. 2. (algorithm) unify - To perform unification. and effectively utilize our management information systems; (x) any inability to access vendor or bank lines of credit, which could adversely affect our liquidity; (xi) any inability to record and process key data due to ineffective implementation of business processes and policies; (xii) any negative impact from the loss of a key vendor or customer; (xiii) any negative impact from the loss of any of our senior or key management personnel; (xiv) any change in economic conditions in markets where we operate or have material investments which may affect demand for our products or services; (xv) any negative impact from the international scope of our operations; (xvi) fluctuations in foreign currencies; (xvii) any incurrence In`cur´rence n. 1. The act of incurring, bringing on, or subjecting one's self to (something troublesome or burdensome); as, the incurrence of guilt, debt, responsibility, etc. s> Noun 1. of tax liabilities or tax payments beyond our current expectations, which could adversely affect our liquidity and profitability; (xviii) any inability to continue to access our credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities , or comply with the financial or other representations, warranties warranties, n.pl the details of a contract; considered less important than the conditions. Whereas the penalty for breach of conditions is the termination of the contract, the penalty for breach of warranties is payment of damages to the innocent party. or covenants in our debt instruments; (xix) any delayed or lost sales or other impacts related to the commercial and economic disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. caused by natural disasters, including hurricanes; (xx) any delayed or lost sales and other impacts related to the commercial and economic disruption caused by terrorist attacks, the related war on terrorism Terrorist acts and the threat of Terrorism have occupied the various law enforcement agencies in the U.S. government for many years. The Anti-Terrorism and Effective Death Penalty Act of 1996, as amended by the usa patriot act , and the fear of additional terrorist attacks; (xxi) any inability by us to remediate re·me·di·a·tion n. The act or process of correcting a fault or deficiency: remediation of a learning disability. re·me our material weaknesses and (xxii) other risks including those risks identified in any of our filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect our analysis only as of the date they are made. Except as required by applicable law, we undertake no obligation, and do not intend, to update these forward-looking statements to reflect events or 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 that arise after the date they are made. Furthermore, as a matter of policy, we do not generally make any specific projections as to future earnings, nor do we endorse To sign a paper or document, thereby making it possible for the rights represented therein to pass to another individual. Also spelled indorse. endorse (indorse) v. any projections regarding future performance, which may be made by others outside our company. United Kingdom Companies Act: The financial information contained in this announcement for the quarter and year ended December December: see month. 31, 2005 is unaudited and does not constitute full statutory accounts within the meaning of Section 240 of the United Kingdom Companies Act 1985. This press release contains information regarding adjusted operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before (loss) from continuing operations that is computed as operating earnings (loss) from continuing operations before restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , free cash flow from continuing operations that is computed as net cash provided by (used in) continuing operating activities less capital expenditures plus proceeds from the sale of property and equipment and net debt that is computed as current maturities of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and notes payable plus long-term debt and notes payable less cash and cash equivalents. These measures are non-GAAP financial measures, defined as numerical numerical expressed in numbers, i.e. Arabic numerals of 0 to 9 inclusive. numerical nomenclature a numerical code is used to indicate the words, or other alphabetical signals, intended. measures of our financial performance that exclude or include amounts so as to be different than the most directly comparable measure calculated and presented 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 generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , or GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). in our statement of operations See Income statement. , balance sheet or statement of cash flows. Pursuant to the requirements of Regulation G, we have provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures. Although adjusted operating earnings (loss) from continuing operations, free cash flow from continuing operations and net debt represent non-GAAP financial measures, we consider these measures to be key operating metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. of our business. We use these measures in our planning and budgeting processes, to monitor and evaluate our financial and operating results and to measure performance of our separate divisions. We also believe that adjusted operating earnings (loss) from continuing operations, free cash flow from continuing operations and net debt are useful to investors because they provide an analysis of financial and operating results using the same measures that we use in evaluating the company. We expect that such measures provide investors with the means to evaluate our financial and operating results against other companies within our industry. We believe that these measures are meaningful to investors in evaluating our ability to meet our future debt service requirements and to fund our capital expenditures and working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . Our calculation of adjusted operating earnings (loss) from continuing operations, free cash flow from continuing operations and net debt may not be consistent with the calculation of these measures by other companies in our industry. Adjusted operating earnings (loss) from continuing operations, free cash flow from continuing operations and net debt are not measurements of financial performance under GAAP and should not be considered as an alternative to net earnings (loss) from continuing operations as an indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of our operating performance or cash flows from continuing operating activities as a measure of liquidity or any other measures of performance derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. in accordance with GAAP.
Danka Business Systems PLC
Consolidated Condensed Statements of Operations for the Three and
Nine Months Ended December 31, 2005 and 2004
(In thousands, except per American Depositary Share ("ADS") amounts)
(Unaudited)
Three months ended Nine months ended
December 31 December 31
------------------- ---------------------
2005 2004 2005 2004
--------- --------- ---------- ----------
Revenue:
Retail equipment and
related sales $100,168 $107,065 $317,688 $311,925
Retail service 120,907 141,080 376,507 431,072
Retail supplies and rentals 19,353 23,074 62,089 69,615
Wholesale 25,033 25,354 68,490 70,019
--------- --------- ---------- ----------
Total revenue 265,461 296,573 824,774 882,631
--------- --------- ---------- ----------
Cost of sales:
Retail equipment and
related sales costs 68,495 68,709 219,866 202,500
Retail service costs 79,584 85,761 240,294 254,746
Retail supplies and rental
costs, including
depreciation on rental
assets 11,857 13,762 38,379 41,555
Wholesale costs 21,037 21,448 56,512 57,877
--------- --------- ---------- ----------
Total cost of sales 180,973 189,680 555,051 556,678
--------- --------- ---------- ----------
Gross profit 84,488 106,893 269,723 325,953
Operating expenses:
Selling, general and
administrative expenses 79,759 109,176 272,626 314,717
Restructuring charges
(credits) (106) (385) 7,578 (1,746)
Other expense (income) (176) 1,515 (315) 1,833
--------- --------- ---------- ----------
Total operating
expenses 79,477 110,306 279,889 314,804
--------- --------- ---------- ----------
Operating earnings
(loss) from continuing
operations 5,011 (3,413) (10,166) 11,149
Interest expense (7,922) (8,060) (23,896) (22,877)
Interest income 209 - 349 73
--------- --------- ---------- ----------
Earnings (loss) from
continuing operations
before income taxes (2,702) (11,473) (33,713) (11,655)
Provision (benefit) for
income taxes (11,100) (16,888) (9,049) (16,706)
--------- --------- ---------- ----------
Earnings (loss) from
continuing operations 8,398 5,415 (24,664) 5,051
Earnings (loss) from
discontinued operations,
net of tax -- (959) (1,306) (2,014)
Gain (loss) on sale of
discontinued operations,
net of tax (63) -- (30,322) --
--------- --------- ---------- ----------
Net earnings (loss) $8,335 $4,456 $(56,292) $3,037
========= ========= ========== ==========
Net earnings (loss)
attributable to common
shareholders
Net earnings (loss) from
continuing operations $8,398 $5,415 $(24,664) $5,051
Dividends and accretion on
participating shares (5,439) (5,111) (16,114) (15,108)
--------- --------- ---------- ----------
Net earnings (loss) from
continuing operations
attributable to common
shareholders $2,959 $304 $(40,778) $(10,057)
========= ========= ========== ==========
Basic and diluted net
earnings (loss)
attributable to common
shareholders per ADS:
Net earnings (loss) from
continuing operations $0.05 $0.01 $(0.64 ) $(0.16)
Net earnings (loss) from
discontinued operations 0.00 (0.02) (0.50) (0.03)
--------- --------- ---------- ----------
Net earnings (loss) $0.05 $(0.01) $(1.14) $(0.19)
========= ========= ========== ==========
Weighted average ADSs 64,122 63,185 63,778 62,938
========= ========= ========== ==========
Danka Business Systems PLC
Consolidated Condensed Balance Sheets as of December 31, 2005 and
March 31, 2005
(In thousands except per share data)
December 31, March 31,
2005 2005
--------- --------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents, including
restricted cash of $12,150 and $14,956,
respectively $ 50,715 $ 91,925
Accounts receivable, net of allowance for
doubtful accounts 191,640 211,415
Inventories 90,540 91,029
Assets held for sale - discontinued
operations -- 43,177
Prepaid expenses, deferred income taxes and
other current assets 12,673 14,690
--------- --------
Total current assets 345,568 452,236
Equipment on operating leases, net 13,078 19,157
Property and equipment, net 38,981 49,225
Goodwill 203,448 213,531
Other intangible assets, net of accumulated
amortization 1,948 2,406
Deferred income taxes 1,477 8,946
Other assets 19,075 23,525
--------- --------
Total assets $ 623,575 $ 769,026
========= ========
Liabilities and shareholders' equity (deficit)
Current liabilities:
Current maturities of long-term debt and
notes payable $ 1,713 $ 2,308
Accounts payable 150,892 167,292
Accrued expenses and other current
liabilities 79,722 122,546
Taxes payable 32,868 36,249
Liabilities held for sale - discontinued
operations -- 14,403
Deferred revenue 33,950 37,772
--------- --------
Total current liabilities 299,145 380,570
Long-term debt and notes payable, less current
maturities 238,315 239,406
Deferred income taxes and other long-term
liabilities 47,253 65,831
--------- --------
Total liabilities 584,713 685,807
--------- --------
6.5% senior convertible participating shares 316,020 299,906
Shareholders' equity (deficit):
Ordinary shares, 1.25 pence stated value 5,329 5,277
Additional paid-in capital 329,716 329,152
Accumulated deficit (568,362) (495,960)
Accumulated other comprehensive loss (43,841) (55,156)
--------- --------
Total shareholders' equity (deficit) (277,158) (216,687)
--------- --------
Total liabilities and shareholders' equity
(deficit) $ 623,575 $ 769,026
========= ========
Danka Business Systems PLC
Consolidated Condensed Statements of Cash Flows for the Nine
Months Ended December 31, 2005 and 2004
(In thousands)
(Unaudited)
December 31, December 31,
2005 2004
----------- -----------
Operating activities:
Net earnings (loss) $ (56,292) $ 3,037
Loss from discontinued operations (31,628) (2,014)
----------- -----------
Earnings (loss) from continuing operations (24,664) 5,051
Adjustments to reconcile net earnings
(loss) to net cash provided by (used in)
operating activities:
Depreciation and amortization 22,083 26,470
Deferred income taxes 1,464 251
Amortization of debt issuance costs 1,585 1,554
Loss on sale of property & equipment
and equipment on operating leases 1,033 791
Proceeds from sale of equipment on
operating leases 575 2,950
Restructuring charges (credits) 7,578 (1,746)
Changes in net assets and liabilities:
Accounts receivable 21,175 (5,617)
Inventories 489 (25,279)
Prepaid expenses and other current
assets 562 (1,684)
Other non-current assets 5,126 (20)
Accounts payable (16,399) 33,049
Accrued expenses and other current
liabilities (56,487) (41,329)
Deferred revenue (3,821) (829)
Other long-term liabilities (11,007) (3,429)
----------- -----------
Net cash used in continuing
operations (50,708) (9,817)
Net cash provided by (used
in) discontinued operations 359 (679)
----------- -----------
Net cash used in operating
activities (50,349) (10,496)
----------- -----------
Investing activities:
Capital expenditures (8,205) (13,163)
Purchase of subsidiary, net of cash
acquired -- (2,110)
Proceeds from sale of discontinued
operations, net of cash 16,924 209
Proceeds from the sale of property and
equipment 208 313
----------- -----------
Net cash provided by (used
in) continuing investing
activities 8,927 (14,751)
Net cash used in discontinued
investing activities (456) (2,787)
----------- -----------
Net cash provided by (used
in) investing activities 8,471 (17,538)
Financing activities:
(Payments) borrowings under line of
credit agreements, net (205) 986
Payments under capital lease
arrangements (1,741) (1,281)
Proceeds from stock options exercised 619 880
----------- -----------
Net cash provided by (used
in) continuing financing
activities (1,327) 585
Net cash used in discontinued
financing activities (99) (331)
----------- -----------
Net cash (used in) provided
by financing activities (1,426) 254
----------- -----------
Effect of exchange rates (4,097) 4,244
----------- -----------
Net decrease in cash and cash
equivalents (47,401) (23,536)
Cash and cash equivalents from continuing
operations, beginning of period 91,925 106,854
Cash and cash equivalents from discontinued
operations, beginning of period 6,191 5,936
----------- -----------
Cash and cash equivalents, end of period $ 50,715 $ 89,254
=========== ===========
Supplemental disclosures - cash flow
information:
Interest paid $ 29,043 $ 28,127
Income taxes paid 1,183 3,680
Danka Business Systems PLC
Adjusted operating earnings (loss) from continuing operations for
the three and nine months ended December 31, 2005 and 2004
(In Thousands)
(Unaudited)
For the Three Months Ended For the Nine Months Ended
December 31, December 31, December 31, December 31,
2005 2004 2005 2004
------------ ------------ ------------ ------------
Operating earnings
(loss) from
continuing
operations $5,011 $(3,413) $(10,166) $11,149
Restructuring
charges (credits) (106) (385) 7,578 (1,746)
------------ ------------ ------------ ------------
Adjusted operating
earnings (loss)
from continuing
operations $4,905 $(3,798) $ (2,588) $ 9,403
============ ============ ============ ============
Danka Business Systems PLC
Free cash flow from continuing operations for the three and nine
months ended December 31, 2005 and 2004
(In Thousands)
(Unaudited)
For the Three Months Ended For the Nine Months Ended
December 31, December 31, December 31, December 31,
2005 2004 2005 2004
----------- ------------ ------------ ------------
Net cash provided
by continuing
operating
activities $(31,453) $(13,372) $(50,708) $ (9,817)
Capital
expenditures (2,044) (4,757) (8,205) (13,163)
Purchase of
subsidiary, net
of cash -- (2,110) -- (2,110)
Proceeds from the
sale of
discontinued
operations, net
of cash -- 209 16,924 209
Proceeds from the
sale of property
and equipment 65 139 208 313
----------- ------------ ------------ ------------
Free cash flow from
continuing
operations $(33,432) $(19,891) $(41,781) $(24,568)
=========== ============ ============ ============
Danka Business Systems PLC
Net Debt as of December 31, 2005 and March 31, 2005
(In Thousands)
(Unaudited)
December 31, March 31,
2005 2005
----------- ---------
Current maturities of long-term debt and notes
payable $ 1,713 $ 2,308
Long-term debt and notes payable 238,315 239,406
Less: Cash and cash equivalents (50,715) (91,925)
----------- ---------
Net Debt $ 189,313 $ 149,789
=========== =========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion