Danka reports record earnings and revenue.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)--April 30, 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) Tuesday Tuesday: see week. announced results for its fiscal year and fourth quarter ended March 31, 1996. Revenue for fiscal 1996 grew 55% to a milestone of $1.2 billion, while earnings from operations, before non- non- word element [L.]not . non- pref. Not: noninvasive. recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. items, grew 46% to $104.7 million. Non-recurring items include an $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. in the third quarter 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. and an extraordinary item of $1.8 million in the fourth quarter for the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt. Excluding the impact of these non-recurring items, net earnings increased 32% to $51.6 million, or $1.00 per American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. ("ADS") compared to $39.0 million or $0.80 per ADS last year. After consideration of these non-recurring items, Danka reported earnings from operations of $96.2 million and net earnings of $45.2 million, or $0.88 per ADS. For the fourth quarter ended March 31, 1996, revenue increased 61% to $383.6 million, while earnings from operations grew 50% to $31.4 million. Earnings before extraordinary item for the three months rose 35% to $15.1 million, or $0.28 per ADS compared to $11.2 million or $0.23 per ADS last year. The company reported net earnings of $14.0 million, or $0.26 per ADS, for the fourth quarter. 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: "Danka reached a significant milestone in fiscal 1996 when revenue exceeded $1.2 billion. In addition to record revenue and earnings, the year was highlighted by our expansion into Continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. through the acquisitions of Reprotechniek B.V. and 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. Danka now has a solid core
operation from which to pursue its growth strategy in Europe."Dan Doyle continued: "I am pleased to announce our core operations had growth of 14% during the fourth quarter. Our internal growth was driven by increased sales of high-volume and color copiers. In addition to our core operations, acquisitions have continued to play a significant role in Danka's growth. During the year we acquired businesses across 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 with 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. revenues of more than $470 million with Infotec being the most significant, contributing $256 million in annualized revenue." David Snell Snell , George 1903-1996. American geneticist. He shared a 1980 Nobel Prize for discoveries concerning cell structure that enhanced understanding of the immunological system, resulting in higher success rates in organ transplantation. , chief financial officer added: "I am pleased with this year's results and the strengthening of our financial position. We achieved this through a successful secondary equity offering in February 1996 which raised just under $200 million. We also finalized See finalization. a $400 million multicurrency line of credit in March 1996 with a consortium of international banks. Additionally, our 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. remains strong, exceeding $57 million for the year." As a result of Danka's achievements, the board of directors are recommending the payment of a final dividend of 1.08 pence pence n. Chiefly British A plural of penny. pence Noun a plural of penny USAGE: Since the decimalization of British currency and the introduction of the abbreviation p, per Ordinary share (equivalent to $.07 per ADS). The dividend will be payable on July 25, 1996 to ADS holders of record as of June 25, 1996. Additionally, the board of directors has appointed Pierson "Sandy" Grieve grieve v. grieved, griev·ing, grieves v.tr. 1. To cause to be sorrowful; distress: It grieves me to see you in such pain. 2. as a non-executive director A non-executive director (NED, also NXD) or outside director is a member of the board of directors of a company who does not form part of the executive management team. He or she is not an employee of the company or affiliated with it in any other way. . Grieve was Chief Executive Officer of Ecolab Inc. for 12 years before his retirement in 1995. Danka Business Systems PLC, headquartered in St. Petersburg, is one of the largest independent suppliers of photocopiers, facsimiles 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 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
March 31, March 31,
1996 1995
(Unaudited) (Unaudited)
Revenue:
Retail equipment sales $ 143,745 $ 99,272
Retail service, supplies
and rentals 177,715 110,814
Wholesale 62,176 28,232
Total revenue 383,636 238,318
Costs and operating expenses: Cost of retail equipment sales 86,892 60,996 Retail service, supplies and rental costs 93,895 58,384 Wholesale costs of revenue 51,045 23,640 Selling, general and administrative expenses 115,892 72,126 Amortization of intangible assets 4,534 2,220 Total costs and operating expenses 352,258 217,366 Earnings from operations 31,378 20,952 Interest expense and other, net 7,092 2,921 Earnings before income taxes 24,286 18,031 Provision for income taxes 9,191 6,814 Earnings before extraordinary item 15,095 11,217 Extraordinary item - loss on early extinguishment of debt, net of income tax benefit of $691,000 1,133 -- Net earnings $ 13,962 $ 11,217
Earnings per ADS:
Earnings before extraordinary
item $ 0.28 $ 0.23
Extraordinary item (0.02) --
Net earnings per ADS $ 0.26 $ 0.23
Weighted average ADSs 53,570 49,052
DANKA BUSINESS SYSTEMS PLC
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per American Depositary Share ("ADS")
amounts)
For the year ended
March 31, March 31,
1996 1995
Revenue:
Retail equipment sales $ 474,116 $ 324,758
Retail service, supplies
and rentals 595,477 377,982
Wholesale 170,711 99,456
Total revenue 1,240,304 802,196
Costs and operating expenses: Cost of retail equipment sales 288,000 196,953 Retail service, supplies and rental costs 315,060 199,585 Wholesale costs of revenue 140,595 81,765 Selling, general and administrative expenses 378,407 245,525 Amortization of intangible assets 13,587 6,818 Restructuring charges 8,500 -- Total costs and operating expenses 1,144,149 730,646 Earnings from operations 96,155 71,550 Interest expense and other, net 21,566 7,742 Earnings before income taxes 74,589 63,808 Provision for income taxes 28,241 24,761 Earnings before extraordinary item 46,348 39,047 Extraordinary item - loss on early extinguishment of debt, net of income tax benefit of $691,000 1,133 -- Net earnings $ 45,215 $ 39,047
Earnings per ADS:
Earnings before extraordinary
item $ 0.90 $ 0.80
Extraordinary item (0.02) --
Net earnings per ADS $ 0.88 $ 0.80
Weighted average ADSs 51,533 48,735
DANKA BUSINESS SYSTEMS PLC
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, March 31,
1996 1995
Assets
Current assets:
Cash and cash equivalents $ 38,217 $ 86,848
Accounts receivable, net 247,479 133,046
Inventories 214,519 132,246
Prepaid expenses and other
current assets 9,534 4,267
Investments -- 10,285
Total current assets 509,749 366,692
Equipment on operating leases, net 73,303 43,813 Property and equipment, net 42,795 36,533 Intangible assets: Goodwill, net 427,354 162,215 Noncompete agreements, net 8,490 6,248 Other assets 29,865 19,813 Total assets $ 1,091,556 $ 635,314 Liabilities and shareholders' equity Current liabilities: Current maturities of long-term debt & notes payable $30,414 $23,494 Accounts payable 88,817 60,001 Accrued expenses 108,621 45,457 Deferred revenue 64,223 44,812 Total current liabilities 292,075 173,764 Convertible subordinated notes 200,000 200,000 Other long-term debt 118,262 33,681 Deferred income taxes & other long-term liabilities 39,376 21,461 Total liabilities 649,713 428,906 Shareholders' equity: Ordinary shares, 1.25 pence stated value 4,585 4,050 Additional paid-in capital 297,378 92,777 Retained earnings 148,501 110,143 Currency translation adjustment (8,621) (562) Total shareholders' equity 441,843 206,408 Total liabilities and shareholders' equity $ 1,091,556 $ 635,314 CONTACT: Danka Business Systems PLC William T. Freeman Freeman can mean:
Paul G. Dumond, 011-44171-603-1515 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion