COMPUTER LANGUAGE RESEARCH REPORTS 1991 RESULTS OF
OPERATIONS AND CASH DIVIDEND DECLARATION
CARROLLTON, Texas, Feb. 27 /PRNewswire/ -- Computer Language Research, Inc. (NASDAQ: CLRI) today announced results for the fourth quarter and year ended Dec. 31, 1991. Earnings for 1991 improved by $8.3 million to a net income of $3.8 million or $0.28 per share compared to a net loss of $4.5 million or $0.33 per share in 1990. Results for 1991 included a pre-tax restructuring charge of approximately $1.0 million compared ti $5.1 million of such charges in 1990. Cash flows provided by operating activities were $20.1 million in 1991 compared to $11.2 million in 1990.
For the year ended Dec. 31, 1991, revenues were $115.7 million compared to $119.4 million in 1990. The decrease in revenues is attributable to lower prices for tax processing services. Lower prices for tax processing services resulted from competitive pressures and a change in mix from mainframe to in-house tax processing. In-house tax processing results in lower revenues because more data entry and printing responsibilities are transferred to the client.
Total costs and expenses for the year decreased approximately $17.0 million to $107.6 million in 1991 compared to $124.6 million in 1990. Lower expenses in 1991 are largely due to cost reduction programs, lower tax production costs and downsizing mainframe capacity in conjunction with the company's transition to networked microcomputers.
At its Feb. 27 meeting, the board of directors declared a dividend for the first quarter of 1992 at the rate of $0.04 per share. The dividend is payable March 26, 1992, to shareholders of record on March 13, 1992.
Revenues for the fourth quarter increased to $31.6 million in 1991 compared to $31.4 million in 1990. Fourth quarter net results improved from a net loss of $3.1 million in 1990 compared to a net income of approximately $100,000 in 1991 primarily due to a decrease in restructuring charges and bad debt expense recorded in the fourth quarter of 1991 compared to the same period of 1990.
Computer Language research, Inc. is headquartered in Carrollton, and maintains sales and support facilities in 25 cities throughout the United States. The company provides tax automation systems to accounting firms, banks corporations, and partnerships under the trade name Fast-Tax. The company also develops and markets Electronic Form Systems for use in its tax markets and for sale to other forms-intensive businesses such as insurance companies, banks, financial service organizations, and the federal government.
COMPUTER LANGUAGE RESEARCH, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
Period ended Three months 12 months
Dec. 31 1991 1990 1991 1990
Revenue $31,642 $31,420 $115,737 $119,389
Costs and expenses 29,572 30,605 106,627 119,541
Restructuring costs 1,013(A) 5,085 1,013(A) 5,085
Operating income (loss) 1,057 (4,270) 8,097 (5,237)
Interest income 113 56 532 622
Interest expense 488 621 2,245 2,699
Income (loss) before
income taxes 682 (4,835) 6,384 (7,314)
Provision (benefit) for
income taxes 576 (1,751) 2,535 (2,801)
Net income (loss) $106 $(3.084) $3,849 $(4,513)
Earnings (loss) per share $0.01 $(0.23) $0.28 $(0.33)
Weighted average number
of shares outstanding 13,781 13,749 13,771 13,736
COMPUTER LANGUAGE RESEARCH, INC.
Condensed Consolidated Balance Sheet
Cash and cash equivalents $1,990 $376
Accounts receivable, net 22,563 23,647
Income taxes receivable 2,420 2,525
Inventory 4,624 4,225
Other current assets 9,767(A) 1,430
Total current assets $41,364 $32,203
Property and equipment, net 29,169(A) 40,631
Software, net 6,974 7,236
Intangibles and other assets 1,924 444
Total assets $79,431 $80,514
Liabilities And Shareholders Equity:
Current liabilities $25,735(A) $18,718
Noncurrent liabilities 17,281(A) 28,230
Shareholders' equity 36,415 33,566
Total Liabilities and
Shareholders' Equity $79,431 $80,514
(A) During the fourth quarter of 1991, the company ceased payments under a promissory note relating to a building no longer necessary to the operations of the company. This facility is subject to a mortgage limiting the lender's recourse in the event of nonpayment to the building and associated land. This resulted in additional restructuring costs of approximately $1.0 million to reflect a writedown of the company's investment in the facility to estimated net realizable value at the time of disposal. Final disposition is expected during 1992. The company has received waiver documents from its other lenders that the cessation of payments does not constitute default under the agreements with those lender,. The outstanding mortgage debt has been classified as current and the corresponding property and equipment have been classified as other current assets.
/CONTACT: M. Brian Healy, group vice president-finance and administration of Computer Language Research, 214-250-7000, or Gerard Coffey of G.A. Kraut, 212-696-5600, for Computer Language Research/
(CLRI) CO: Computer Language Research, Inc. ST: Texas IN: CPR SU: ERN DIV AH-SM -- NY076 -- 3431 02/27/92 16:31 EST