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Anacomp Inc.

Anacomp is a turnaround story, featuring a company climbing out from under heavy debt.

The Indianapolis-based company is a major provider of information-management services and supplies. It provides a complete line of computer-output microfilm products. Its new XFP 2000 product is selling well, at about a quarter-million dollars each, though the recession has slowed sales somewhat. Micrographics service revenues were about $214 million in 1990, and equipment and supply sales were about $439 million.

Following an abortive acquisition of Xidex Corp. in August 1988, the company was saddled with a huge debt load. Anacomp ended up with negative equity, and its highly leveraged balance sheet has earned it a speculative-investment rating. But the company is making substantial progress paying down its debt--through the four-year period ending in 1994, the company is expected to reduce debt by some $200 million and return to positive equity. This has allowed fully diluted earnings to make a strong recovery in 1991 and has laid the groundwork for continued growth this year.

That growth has gotten off to a slower start than expected; overall corporate sales in Anacomp's first quarter of fiscal 1992 were down $10.5 million because of an 11.5 percent decline in equipment sales. That appears to have been caused by the recession as well as confusion about the Investment Tax Credit, and it's impossible to predict how much demand may simply have been put off until future quarters. The fully diluted earnings estimate for 1992 has been cut to 60 cents, down from 68 cents but still up from the 1991 figure by roughly 50 percent. Fiscal-year 1992 sales should be about $655 million, up from $635 million the year before.
FINANCIAL DATA
 12 MO. 1990 - LAST 12 MOS. -
 RANGE E.P.S. E.P.S. P/E
$5.38-$2.50 $0.09 $0.40 11.9
3-YEAR ($MM)
AVG.P/E DIVIDENDS YIELD MKT. CAP
23.3 $0.00 0.00% $190.0
ANNUAL TRENDS
FISCAL - PER SHARE DATA -
YEAR SALES (MM) EARNINGS DIVIDENDS
1986 $108.9 $0.12 $0.00
1987 277.0 0.46 0.00
1988 450.5 0.71 0.00
1989 648.9 0.20 0.00
1990 652.2 0.09 0.00
1991 635.3 0.42 0.00
LAST 12 MONTHS PRICE CHANGE: 122.2%
AVG. DAILY VOLUME: 188,225 SHARES


Cash flow is good and interest expense is down, and in spite of the disappointing first quarter, the turnaround story is essentially unchanged. Management lost credibility with the Xidex acquisition, and this will only be restored by "minding the store" and generating solid earnings gains.
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Article Details
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Author:Diggle, R.H., Jr.
Publication:Indiana Business Magazine
Article Type:Company Profile
Date:Mar 1, 1992
Words:436
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