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Duplex reports fiscal year-end results.

SYCAMORE, Ill.--(BUSINESS WIRE)--Dec. 16, 1994--Duplex Products Inc., a leading provider of business information products and technologies, today reported a loss for the fiscal year ended October 29, 1994 of $16,127,000, or $(2.12 per share) compared with net earnings of $2,454,000 ($0.32 per share) the previous year. Sales in 1994 of ($265,791,000) advanced 3% from 1993's level, representing the first year-over-year increase since 1989. Before the impact of restructuring charges and accounting changes, 1994's net loss was $2,743,000 ($0.36 per share) as contrasted with net income of $2,354,000 ($0.30 per share) in 1993.

In 1994, the Company recorded a $10,500,000 pretax charge related to the implementation of a strategic program to continue its aggressive efforts to restructure the Company's operations. This program was designed to sharpen the Company's marketing and product focus, enhance cost competitiveness, improve margins, and streamline sales, manufacturing and administrative functions. 1994 also saw the Company modify its revenue recognition policies for custom forms. The Company elected to make this change, which depressed 1994 net results by $7,084,000, because it more accurately reflects current operations and is expected to improve cash flow. Restructuring actions and an accounting change also impacted 1993 results. Last year, a pretax provision of $1,500,000 was established to cover severance and other costs associated with corporate staff reductions, and Statement of Accounting Standards No. 109, "Accounting for Income Taxes," was adopted increasing net earnings by $1,000,000.

For the fourth quarter of 1994, a net loss of $7,216,000, ($0.95 per share), was recorded, while net income of $846,000, or $0.11 per share was reported in the comparable 1993 period. Sales in 1994's fourth quarter were $66,821,000, essentially the same as in the same period in 1993.

In addition to the previously mentioned revenue recognition change, 1994's fourth quarter was also impacted by management's decision to modify the company's restructuring program, giving rise to a $1,500,000 pretax reduction of operating expenses. Before restructuring costs and accounting change, the fourth quarter 1994 net loss was $1,032,000 ($0.14 per share) compared with net earnings of $846,000 ($0.11 per share) in 1993.

Fourth quarter and total year 1994 operating results were negatively impacted by above-normal price discounting, significant increases in bond paper costs, and high selling expenses. Recently introduced changes in the company's cost estimating and pricing control systems and sales commission program modifications are having a positive effect. In addition, pricing actions have been taken to offset the impact of paper cost increases. These unfavorable items were partially offset by improved manufacturing productivity related to the implementation of the business' restructuring plans and other efficiency improvement programs. Performance was also enhanced by selective outsourcing of certain products.

1994 saw the company begin to implement its new market focused strategy of providing value-added products and services to customers to assist them in minimizing the cost of processing information as contrasted with only being a supplier of forms and related products. This strategy, aimed at significantly growing sales and profitability, included expenditures in 1994 to support the development of related products and capabilities.

-0-
 Fourth Quarter(a)
 12/29/94 12/30/93

Net sales $66,821,000 $67,064,000
Cost of goods sold 51,951,000 51,522,000
 ---------- ----------
Gross profit 14,870,000 15,542,000

Selling,general &
 administrative expenses 16,630,000 14,838,000
Restructuring costs (credits) (1,500,000) --
 ---------- ----------
Operating profit (loss) (260,000) 704,000
Other income 106,000 546,000
 ---------- ----------
Earnings (loss) before
 income taxes (credits)
 & accounting changes (154,000) 1,250,000

Provision for income taxes (credits) (22,000) 404,000
 ---------- ----------
Earnings (loss) before accounting
 changes (132,000) 846,000

Cumulative effect of acctg. changes (7,084,000) --
 ---------- ----------
Net earnings (loss) $ (7,216,000) $ 846,000
 ========== ==========

Earnings loss per share before
 accounting changes $(0.02) $ 0.11

Cumulative effect of accounting
 changes (0.93) --
 ----- ------
Net earnings (loss) per share $(0.95) $ 0.11
 ====== ======
Average shares 7,562,000 7,696,000

The following pro forma information
reflects the company's results as if
the revenue recognition accounting
change recorded in the fourth quarter
of 1994 had been retroactively applied:

Net sales $70,180,000 $66,082,000
Net earnings (loss) 570,000 629,000
Net earnings (loss) per share 0.08 0.08

(a) Unaudited


 Fiscal Year
 12/29/94 12/30/93

Net sales $265,791,000 $258,867,000
Cost of goods sold 204,062,000 194,977,000
 ---------- ----------
Gross profit 61,729,000 63,890,000

Selling, general & administrative
 expenses 66,020,000 61,039,000
Restructuring costs (credits) (10,500,000) 1,500,000
 ---------- ----------
Operating profit (loss) (14,791,000) 1,351,000
Other income 44,000 880,000
 ---------- ----------
Earnings (loss) before income taxes
 (credits) & accounting changes (14,747,000) 2,231,000
Provision for income taxes (credits) (5,704,000) 777,000
 ---------- ----------
Earnings (loss) before accounting
 changes (9,043,000) 1,454,000
Cumulative effect of acctg. changes (7,084,000) 1,000,000
 ---------- ----------
Net earnings (loss) $ (16,127,000) $ 2,454,000
 ========== ==========
Earnings loss per share before
 accounting changes $(1.19) $ 0.19

Cumulative effect of accounting changes (0.93) 0.13
 ----- ------
Net earnings (loss) per share $(2.12) $ 0.32
 ====== ======
Average shares 7,594,000 7,732,000

The following pro forma information
reflects the company's results
as if the revenue recognition
accounting change recorded in the
fourth quarter of 1994 had been
retroactively applied:

Net sales $265,791,000 $256,659,000
Net earnings (loss) (9,043,000) 1,966,000
Net earnings (loss) per share (1.19) 0.25


Duplex Products is a leading provider of business information products and technologies. The company provides custom and stock business forms and labels, electronic printing and mailing services, forms management programs, forms automation solutions and process analysis. Products and services are provided through the company's direct sales force, manufacturing facilities and business service center centers throughout the United States and Puerto Rico. Duplex continues to uphold its reputation for quality, reliability, knowledge and performance through the utilization of Duplex business consultants who are trained to assess and analyze customers' needs, recommend solutions and measure results.

CONTACT: Duplex Products Inc., Sycamore

Andrew Campbell, 815/895-2101
COPYRIGHT 1994 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Dec 16, 1994
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