GENICOM CORPORATION REPORTS SHARPLY HIGHER EARNINGS; Strong Growth in Revenues and Operating Income.CHANTILLY Chan·til·ly A village of northern France north of Paris. It was long noted for its fine porcelain and delicate lace. Population: 10,065. , Va.--(BUSINESS WIRE)--Jan. 31, 1996--GENICOM Corporation (Nasdaq:GECM GECM Gilbert-Elliott Channel Model ) today announced revenue and net income increases for the fourth quarter ended December December: see month. 31, 1995. Revenues for the fourth quarter of 1995 were $75.6 million compared to $61.8 million for the fourth quarter of 1994. Net income improved to $1.6 million, or $0.13 per share, from $488 thousand, or $0.04 per share, in the fourth quarter of last year. There were 12.2 million weighted average common shares outstanding during the fourth quarter of 1995 compared with 11.6 million shares a year ago. For the fiscal year ended December 31, 1995, revenues increased 25.8% to $294.1 million from $233.8 million in the prior year. Net income for 1995 increased significantly to $6.2 million or $0.51 per share compared to $2.6 million or $0.23 per share for 1994. 1995 earnings per share reflect after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charges of $.08 for 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 costs related to a proposed acquisition which was terminated and non-capitalized costs associated with the Company's 1995 business acquisitions. Earnings for 1994 reflect an after-tax gain of $0.11 per share related to 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 and the sale of an investment in a Belgian Belgian having some relationship to Belgium. Belgian barge dog see schipperke. Belgian black pied cattle black, Belgian dairy cattle. Belgian blue dual-purpose cattle; blue, white or blue roan. company. In addition to the improved fourth quarter results, on January January: see month. 17, 1996, the Company reached an agreement with a syndicate Syndicate organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018] See : Gangsterism led by NationsBank on $75 million in new credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities , replacing a $35 million credit facility with The CIT n. 1. A citizen; an inhabitant of a city; a pert townsman; - used contemptuously. Which past endurance sting the tender cit. - Emerson. Group/Credit Finance, Inc. This agreement will result initially in significantly lower interest rates on debt of approximately 400 basis points, expand borrowing capacity and extend maturities through the retirement of existing subordinated notes due in 1997. "This has been a great year for GENICOM," stated Paul T. Winn, the Company's President and Chief Executive Officer. "We ended 1995 with significant revenue and earnings growth, an improved financial structure, stronger franchises and an improved revenue balance. Enterprising en·ter·pris·ing adj. Showing initiative and willingness to undertake new projects: The enterprising children opened a lemonade stand. Service Solutions now represents 43% of revenue. Both the printer and service businesses had meaningful growth in 1995. Our core strategy of providing document solution, multivendor services and network management offerings continues to contribute to both growth and enhanced shareholder value." -0-
Revenue Fourth Quarter Full Year
(Thousands) 1995 1994 Change 1995 1994 Change
Enterprising Service
Group
Multivendor Services $26,694 $19,224 38.9% $101,542 $67,085 51.4%
Integrated Net. Services 5,518 0 nm 24,116 0 nm
Document Solutions 40,649 38,476 5.6% 156,688 151,589 3.4%
Other 2,709 4,086 -33.7% 11,726 15,123 -22.5%
$75,570 $61,766 22.3% $294,052 $233,797 25.8%
-0-
Enterprising Service Solutions Group Multivendor Services
"The continuing strong performance of Multivendor Services is
highlighted by an increase in revenues for the fourth quarter of $7.5
million, or 38.9%, over the prior year. This business' growth
reflects the effects of the first quarter 1995 business acquisition
of Harris Adacom Network Services, Inc. and an expanding Multivendor
business with such customers as Canon, Motorola, IBM, and DEC. This
growth has allowed us to expand our capabilities in the client server
environment, grow our depot repair business and offer unique
professional services. We expect our Multivendor Services business
to demonstrate continued growth in the future."
Integrated Network Services
"Our newest business group contributed revenues of $5.6 million
for the fourth quarter and $24.1 million for this year. Performance
this quarter is lower than the third quarter due to a large one time
contract with a Canadian company as well as accelerated installations
in Nasdaq. We are focusing on building a strong foundation for
growth in this business. During the initial growth phase and due to
large contract value and long selling cycles, revenue may grow at an
uneven rate in this business segment."
Document Solutions Group
"Revenues increased $2.2 million, or 5.6%, over the fourth quarter
of 1994 as a result of continued strong sales of our high speed
serial matrix and shuttle matrix line printers. Additionally, growth
was experienced in the value added market of industrial graphics and
the IBM environment. The Company is continuing to invest in new
product development directed at growing market share in its
selectively chosen markets."
Mr. Winn added "During the fourth quarter we formed a unique
strategic business and operations partnership with OGDEN Services
Corporation. This interdependent partnership capitalizes on shared
infrastructure, purchasing leverage, technology and manufacturer
know-how. Cost savings from this partnership are expected to
favorably impact earnings beginning in the second half of 1996. In
this agreement, GENICOM retained all design rights and exclusive
distribution rights to the product being produced by OGDEN. As part
of the partnership, OGDEN purchased the manufacturing operations and
selected assets of GENICOM'S McAllen, Texas and Reynosa, Mexico
locations. The proceeds from the sale were used to retire debt and
for other general corporate purposes."
GENICOM's order backlog was $47.5 million at December 31, 1995,
down 2.7% from the $48.9 million one year ago. Backlog may not
necessarily be indicative of future sales.
GENICOM Corporation is an international supplier of multivendor
services, network management and printer solutions. The Document
Solutions Group designs and markets a wide range of computer printer
technologies for general purpose applications. The Enterprising
Service Solutions Group provides logo and multivendor product field
support and depot repair, express parts and professional services as
well as integrated network system solutions, including a broad
portfolio of hardware and software products, technology consulting
and diagnostic and monitoring services. GENICOM is headquartered
within metropolitan Washington, D.C.
GENICOM CORPORATION
Condensed Consolidated Statements of Income
(Unaudited)
(In Thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31 January 1 December 31 January 1
1995 1995 1995 1995
Revenues $75,570 $61,786 $294,052 $233,797 Cost of Sales 57,187 46,432 217,613 173,894 Gross Profit 18,383 15,354 76,439 59,903 Operating expenses(1) 14,516 13,112 61,261(1) 50,735 Operating income 3,867 2,242 15,178 9,168 Interest, net 2,027 1,727 7,741 7,458 Other income(2) 273 1,908(2) Income before income taxes 1,840 788 7,437 3,618 Income tax expense 251 300 1,285 1,048 Net income $ 1,589 $ 488 $ 6,152 $ 2,570 Earnings per common share and common share equivalent: (primary & fully diluted)$ 0.13 $ 0.04 $ 0.51 $ 0.23 Weighted average number of common shares and common share equivalents outstanding: Primary 12,220 11,611 12,038 11,34 Fully Diluted 12,245 11,666 12,056 11,416 (1) Operating expenses include $1.2 million in costs related to termination of a proposed acquisition plus non-capitalized costs associated with the Company's 1995 business acquisitions for the twelve months ended December 31, 1995. (2) Other income includes $1.9 million gain on debt extinguishments and the sale of an investment in a Belgian company for the twelve months ended January 1, 1995. -0- GENICOM CORPORATION Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Consolidated Balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (In Thousands) December 31, January 1, 1995 1995 (Unaudited) Assets Cash and cash equivalents $ 4,271 $ 673 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying 57,339 37,846 Inventories 44,784 43,368 Property, plant and equipment 30,896 26,215 Other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. 25,954 19,165 $163,244 $127,267 Liabilities and Stockholders' Equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. Debt maturing within one year $ 7,070 $ 371 Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. 64,906 45,776 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. , less current portion 44,474 47,192 Other non-current liabilities 12,261 5,845 Stockholders' equity 34,533 28,083 $163,244 $127,267 Certain reclassifications have been made to the 1994 condensed financial statements in order to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the 1995 presentation. CONTACT: James C. Gale, SVP SVP S'il Vous Plaît (French: Please) SVP Senior Vice President SVP Schweizerische Volkspartei (Swiss People~s Party) SVP Society of Vertebrate Paleontology SVP Social Venture Partners SVP St Vincent de Paul & CFO See Chief Financial Officer. GENICOM Corporation 703/802-9200 or Jeff Luth/Michael Lendener Press: Lee Foley/Gina Gardner Morgen-Walke Associates 212/850-5600 |
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