VOLT INFORMATION SCIENCES ANNOUNCES FIRST QUARTER 1996 EARNINGS
Mr. Shaw stated that the Technical Services and Temporary Personnel segment, as well as the Engineering and Construction segment, produced significantly better operating results than in the comparable quarter of 1995, and that the Telephone Directory segment was approximately even with the same 1995 quarter. He also made mention that the impact of the completed merger of Autologic, Incorporated with Information International, Inc. and lower gross margins resulted in a large operating loss for the Electronic Publication and Typesetting segment. He also stated that the Computer Systems segment's operating profit of $2,138,000 for the first quarter of 1996 was significantly less than the profit in 1995 because of the customer acceptance of a large Directory Assistance System in the 1995 quarter. This segment, which reports profits on the basis of completed contracts, typically produces large variations in results from quarter to quarter.
Mr. Shaw said that the reduction in operating profits was offset by a pretax gain of $3,666,000 related to the above mentioned merger.
Volt Information Sciences, Inc. operates a temporary staffing company, provides varied services to the telecommunications industry and furnishes electronic prepress equipment and services to the print media industry.
VOLT INFORMATION SCIENCES, INC. AND SUBSIDIARIES Summary Of Results Of Operations FIRST QUARTER ENDED February 2, January 27, 1996 1995 (Dollars in thousands, except per share data) Revenues $226,610 $182,060 Loss before income taxes - Note A $3,601 $3,372 Income tax provision 1,334 1,349 Net income $2,267 $2,023 PER SHARE DATA, RESTATED TO REFLECT TWO-FOR-ONE STOCK SPLIT - NOTE B Net income $0.23 $0.21 Number of shares used in computation 9,673,803 9,608,408 VOLT INFORMATION SCIENCES, INC. AND SUBSIDIARIES Summary Of Results Of Operations By Segment FIRST QUARTER ENDED February 2, January 27, 1996 1995 (Dollars in thousands)
Technical Services and Temporary Personnel $155,699 $118,918
Electronic Publication and Typesetting
Systems - Note A 16,547 16,000 Telephone Directory 13,569 12,662 Engineering and Construction 19,491 14,603 Computer Systems 20,607 22,251 Equity in net loss of joint ventures (1,957) (1,448) Gain on partial sale of subsidiaries - Note A 3,666 -- Interest and other income, net 88 212 Elimination of intersegment revenues (1,100) (1,138) Total $226,610 $182,060
Income Before Income Taxes:
Operating Profit (Loss):
Technical Services and Temporary Personnel $5,444 $4,947
Electronic Publication and Typesetting
Systems - Note A (2,410) 280 Telephone Directory (1,010) (1,032) Engineering and Construction 1,361 344 Computer Systems 2,138 4,094 Elimination 71 (22) Total Operating Profit 5,594 8,611 Equity in net loss of joint ventures: (1,957) (1,448) Gain on partial sale of subsidiaries - Note A 3,666 -- Interest and other income, net 88 212 General corporate expenses (2,495) (2,376) Interest expense (1,155) (1,686) Foreign exchange gain (loss) - net (140) 59 Income Before Income Taxes $3,601 $3,372
Note A -- On January 29, 1996, the Company completed the merger of Autologic, Volt's Electronic Publication and Typesetting Systems segment, with Information International, Inc., resulting in the formation of a new publicly traded company, Autologic Information International Inc. (Nasdaq: AIII). As a result of the merger transaction, Volt owns 59 percent of AIII and realized a pretax gain of $3,666,000, or $0.25 per share, net of expenses, on the partial sale of Autologic.
Included in the operating loss of the Electronic Publications and Typesetting Systems segment is a charge for the restructuring of Autologic related to the merger of $700,000 or $0.05 per share. In addition, operating results were adversely affected by a temporary delay in product shipments due to the merger and lower gross margins.
Note B -- Prior year representations of amounts per share and shares outstanding have been restated to reflect a two-for-one stock split of the Company's common stock, which was effected by a 100 percent stock dividend, distributed on October 6, 1995 to shareholders of record as of the close of business on September 12, 1995.
/CONTACT: James J. Groberg, Senior Vice President of Volt Information Sciences, Inc., 212-704-2400, Internet: JGROBERG@VOLT.COM; or Peter Kohn of Ruder-Finn, 212-593-6400/
CO: Volt Information Sciences, Inc.; Autologic, Incorporated;
Information International, Inc.;
Autologic Information International, Inc. ST: New York IN: PUB TLS CPR SU: ERN
HH -- NYM012 -- 0620 03/11/96 08:59 EST