Danka Reports Third Quarter 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.--(BUSINESS WIRE)--Jan. 25, 1996--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 announced results for its third quarter ended December December: see month. 31, 1995. Revenue increased 64% to $333.8 million, while earnings from operations grew 52% to $28.1 million before the impact of a previously announced $8.5 million restructuring charge 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. ("Restructuring Charge"). Net earnings, excluding the impact of the Restructuring Charge of $0.10 per American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. ("ADS") increased 32% to $13.2 million, or $0.26 per ADS compared to $10.0 million, or $0.21 per ADS last year. For the nine month period revenue increased 52% to $856.7 million, while earnings from operations grew 45% to $73.3 million before the Restructuring Charge. Excluding the impact of the Restructuring Charge, net earnings for the nine months rose 31% to $36.5 million, or $0.72 per ADS compared to $27.8 million or $0.57 per ADS last year. After consideration of the Restructuring Charge, the Company reported net earnings per ADS of $0.16 and $0.62 in the third quarter and for the first nine months, respectively. Dan Doyle Doyle , Sir Arthur Conan 1859-1930. British writer known chiefly for a series of stories featuring the brilliant detective Sherlock Holmes, including The Hound of the Baskervilles (1902). , Chief Executive commented, "I am pleased with our third quarter results and accomplishments. The highlight of the quarter was the acquisition of Infotec Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). B.V. and its operating
subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. ("Infotec") which was effective November November: see month. 1, 1995.
Infotec brings with it a strong management team and provides Danka with
a substantial core operation from which to pursue our growth strategy in
Europe. Infotec, which is one of Europe's largest independent
suppliers of photocopiers and facsimile equipment and related service,
parts and supplies, markets a full range of Ricoh products under the
Infotec brand name through direct operations located in Germany, the
United Kingdom, France, Italy, Denmark, Belgium and The Netherlands, as
well as through a network of dealers in these and other European Europeanemanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. countries." Dan Doyle continued: "In addition to the acquisition of Infotec, we acquired companies with $30 million in 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 primarily in existing geographic markets. This brings the total annualized revenue acquired to date to over $450 million. I am also pleased with the internal growth at our core copier operations which was 10% for the third quarter. We are continuing to train sales representatives on the Kodak high-volume copiers and their sales are meeting our expectations." The Restructuring Charge which principally related to the Company's expanded international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , included severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and other termination benefits, lease settlement costs associated with the consolidation of duplicate DUPLICATE. The double of anything. 2. It is usually applied to agreements, letters, receipts, and the like, when two originals are made of either of them. Each copy has the same effect. facilities and the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of certain leasehold improvements Leasehold Improvement Improvements on a leased asset that increase the value of the asset. Notes: A leasehold improvement is classified as an asset that must be depreciated over time. and other fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → . As previously announced, the Company expects the Infotec acquisition to be dilutive to its net earnings per ADS in its fourth quarter, due to investments it is making in training, advertising, establishment of a European headquarters and a common management information system. These investments are necessary to assist in the 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. integration of Infotec. Additionally, the Company announced that it has received commitments for a $400 million multicurrency revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. (the "New Credit Facility Loan"). The New Credit Facility Loan will be used primarily to repay certain outstanding borrowings and to help support continued implementation of the Company's growth strategy. The Company expects to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. an extraordinary pre-tax charge of $1.5 to $2.0 million in its fourth quarter due to the early repayment of debt. The New Credit Facility Loan is expected to close during the fourth quarter. Danka Business Systems PLC, headquartered in St. Petersburg, Fla., is one of the largest independent suppliers of photocopiers, facsimilies and other automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. office equipment in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe. -0-
DANKA BUSINESS SYSTEMS PLC
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per American Depositary Share ("ADS") amounts)
For the three months ended
December 31, December 31,
1995 1994
(Unaudited) (Unaudited)
Revenue:
Retail equipment sales $ 124,225 $ 81,856 Retail service, supplies and rentals 161,748 96,760 Wholesale 47,868 24,927 Total revenue 333,841 203,543 Costs and operating expenses: Cost of retail equipment sales 75,610 49,131 Retail service, supplies and rental costs 86,219 51,023 Wholesale costs of revenue 39,183 20,404 Selling, general and administrative expenses 100,770 62,767 Amortization of intangible assets 3,915 1,753 Restructuring charges 8,500 -- Total costs and operating expenses 314,197 185,078 Earnings from operations 19,644 18,465 Interest expense and other, net 6,940 2,003 Earnings before income taxes 12,704 16,462 Provision for income taxes 4,755 6,426 Net Earnings $ 7,949 $ 10,036 Net earnings per ADS $ 0.16 $ 0.21 Weighted average ADSs 50,939 48,799
DANKA BUSINESS SYSTEMS PLC
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per American Depositary Share ("ADS") amounts)
For the nine months ended
December 31, December 31,
1995 1994
(Unaudited) (Unaudited)
Revenue:
Retail equipment sales $ 330,371 $ 225,486 Retail service, supplies and rentals 417,762 267,168 Wholesale 108,535 71,224 Total revenue 856,668 563,878 Costs and operating expenses: Cost of retail equipment sales 201,108 135,957 Retail service, supplies and rental costs 221,165 141,201 Wholesale costs of revenue 89,550 58,125 Selling, general and administrative expenses 262,515 173,399 Amortization of intangible assets 9,053 4,598 Restructuring charges 8,500 -- Total costs and operating expenses 791,891 513,280 Earnings from operations 64,777 50,598 Interest expense and other, net 14,474 4,821 Earnings before income taxes 50,303 45,777 Provision for income taxes 19,050 17,947 Net Earnings $ 31,253 $ 27,830 Net earnings per ADS $ 0.62 $ 0.57 Weighted average ADSs 50,680 48,630
DANKA BUSINESS SYSTEMS PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, March 31,
1995 1995
(Unaudited) (Audited)
Assets Current Assets: Cash and cash equivalents $ 23,562 $ 86,848 Accounts receivable, net 245,214 133,046 Inventories 217,567 132,246 Prepaid expenses and other current assets 12,844 4,267 Investments -- 10,285 Total current assets 499,187 366,692 Equipment on operating leases, net 75,305 43,813 Property and equipment, net 41,843 36,533 Intangible assets, net 424,142 168,463 Other assets 24,824 19,813 Total assets $ 1,065,301 $ 635,314
Liabilities and shareholders'
equity
Current liabilities:
Current maturities of
long-term
debt and notes
payable $ 177,940 $ 23,494
Accounts payable 86,176 60,001
Accrued expenses 99,242 45,457
Deferred revenue 65,557 44,812
Total current liabilities 428,915 173,764 Convertible subordinated notes 200,000 200,000 Other long-term debt 161,175 33,681 Deferred income taxes and other long-term liabilities 38,080 21,461 Total liabilities 828,170 428,906 Shareholders' equity: Ordinary shares, 1.25 pence stated value 4,191 4,050 Additional paid-in capital 101,479 92,777 Retained earnings 134,538 110,143 Currency translation adjustment (3,077) (562) Total shareholders' equity 237,131 206,408 Total liabilities and shareholders' equity $ 1,065,301 $ 635,314 CONTACT: Danka Business Systems PLC, St. Petersburg William T. Freeman Freeman can mean:
Paul G. Dumond, 011-44171-603-1515 (London) |
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