NATIONAL COMPUTER SYSTEMS REPORTS THIRD QUARTER RESULTS
NATIONAL COMPUTER SYSTEMS REPORTS THIRD QUARTER RESULTS MINNEAPOLIS, Nov. 21 /PRNewswire/ -- National Computer Systems, Inc.
(NCS) (NASDAQ: NLCS) today announced that revenues for the third quarter ended Oct. 31, 1991, were lower in comparison to 1990 levels, while profits improved from the same period last year.
Revenues were $71,067,000 compared with $85,170,000 reported in 1990's third quarter. Net income was $4,027,000 and earnings per share were $0.25 in the third quarter of 1991, compared with $3,487,000 and $0.22, respectively, a year ago. Nine month revenues were $213,231,000 against $230,472,000 in 1990. However, net income and earnings per share were $9,506,000 and $0.59 for the first nine months of 1991, compared with $8,300,000 and $0.52 in 1990. By focusing on its core businesses, NCS has improved profitability significantly on lower revenues. These results reflect the impact of three strategic initiatives: the divestiture of a number of marginal or unprofitable business units, the restructuring of field service operations away from low margin non-core maintenance operations, and the decision to forego certain types of low margin business that do not meet corporate profitability standards. Also, the soft economy has had some impact on sales. Despite lower revenues during the quarter, the specific strategic actions that have been taken have reduced costs and have led to significantly improved gross margins. The overall gross margin for the quarter was 39.3 percent compared to 33.6 percent in the third quarter of last year. Operating income rose to 9.8 percent of revenues from 8.4 percent a year ago, with expenses related to new product development and market introductions impacting this year's results. Interest expense savings of almost $1 million over last year also had a positive impact on the quarter. Debt was reduced by $2 million during the quarter, bringing total debt to equity down to 35 percent from 75 percent a year ago. Chairman and CEO, Charles W. Oswald, said, "NCS' performance in the third quarter indicates that our strategies are working. Looking ahead to the fourth quarter, we anticipate higher sales and income, making it our strongest three month period of the year." National Computer Systems, Inc. provides information systems and services to education, commercial and financial markets. NATIONAL COMPUTER SYSTEMS INCOME STATEMENT (In thousands, except per-share amounts) (Unaudited) Three Months Ended Nine Months Ended Oct. 31, Oct. 31, 1991 1990 1991 1991 Revenues $71,067 $85,170 $213,231 $230,472 Income from operations 6,959 7,143 18,797 19,596 Interest and other expense 432 1,506 3,391 6,176 Income before taxes 6,527 5,637 15,406 13,420 Income taxes 2,500 2,150 5,900 5,120 Net income $4,027 $3,487 $9,506 $8,300 Primary earnings per share $0.25 $0.22 $0.59 $0.52 Average shares outstanding 16,166 15,896 16,124 15,877 CONDENSED BALANCE SHEET (In millions, unaudited) ASSETS 10/31/91 1/31/91 Current Assets $89.9 $104.1 Property, plant & equipment, net 67.9 74.8 Other assets 52.1 46.3 Total assets $209.9 $225.2 LIABILITIES Current liabilities $52.6 $52.7 Deferred taxes 13.4 15.8 Long term liabilities 36.3 56.0 Stockholders' equity 107.6 100.7 Total liabilities & stockholders' equity $209.9 $225.2 -0- 11/21/91 /CONTACT: Adrienne Tietz of National Computer Systems, 612-829-3033/ (NLCS) CO: National Computer Systems ST: Minnesota IN: CPR SU: ERN AL -- MN002 -- 5721 11/21/91 08:49 EST
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|Date:||Nov 21, 1991|
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