SAN DIEGO, Nov. 19 /PRNewswire/ -- Anacomp, Inc. (Nasdaq: ANCO) today
announced its financial results for the fourth quarter and fiscal year ended
September 30, 1997, which show improved revenues and EBITDA (earnings before
interest, taxes, reorganization items, extraordinary credits, depreciation,
and amortization) for the quarter.
Fourth Quarter Results
For the fourth quarter ended September 30, 1997, Anacomp reported EBITDA
of $21.2 million, an 11% increase over the third quarter EBITDA of $19.1
million and an 18% increase over the prior year fourth quarter EBITDA of $18.0
million. Revenues in the current period were $117.5 million, compared to
$114.0 million in the third quarter and $114.8 million in the fourth quarter
of the previous fiscal year. Adjusting for a one-time payment from Kodak in
the first quarter of fiscal 1997, the EBITDA posted in the current quarter was
the highest in six quarters.
"We had a strong fourth quarter," said Ralph W. Koehrer, Anacomp's
president and chief executive officer. "Placements of our XFP2000(R) COM
systems were particularly robust. We shipped more than 40 COM units in the
quarter -- the largest quarterly volume in two years -- partially driven by
two unusually large orders. This accomplishment, along with solid
contributions from our COM services, ALVA(TM) CD services, and Data/Ware CD
systems businesses, enabled us to achieve quarter-to-quarter growth of both
revenues and cash flows."
As a result of Anacomp's successful financial restructuring in 1996, the
company is amortizing over three-and-a-half years a "reorganization value"
asset of approximately $263 million. For the fourth quarter, this non-cash
reorganization amortization was $18.8 million, resulting in a net loss for the
quarter of $13.8 million. That compares to net losses of $14.0 million in the
previous quarter and $17.6 million in the fourth quarter a year ago.
"The fourth quarter exemplifies our goal of achieving steady, predictable
quarter-over-quarter improvement going forward," said Koehrer. "We expect to
generate growth by becoming the leading provider of CD solutions, by
increasing market share in our traditional high-margin COM business, by
enhancing our magnetic tape business with value-added customer services, and
by developing high-value information storage and delivery services utilizing
intranet/Internet technologies."
Fiscal 1997 Results
To make comparisons of the year-end results meaningful to fiscal 1996, a
portion of which occurred while the company was in Chapter 11, discussion of
the financial information below is presented on the basis of conventional
reporting periods. For Anacomp's fiscal year ended September 30, 1997, the
company reported EBITDA of $83.7 million, or 18.1% of revenues of $462.5
million. That compares to prior year EBITDA of $84.2 million, or 17.3% of
revenues of $486.1 million. The non-cash reorganization amortization in
fiscal 1997 was $75.8 million, which along with an $11.0 million extraordinary
loss on extinguishment of debt (net of taxes), resulted in a net loss for the
year of $67.8 million. That compares to net income of $142.4 million in the
prior year, which included a gain of $145.3 million relating to the financial
restructuring and debt forgiveness. Adjusting for amortization of the
reorganization asset and the extraordinary charges from refinancings in fiscal
1997, earnings per share would have been $1.41.
"I'm very pleased with our performance in fiscal 1997," noted Koehrer.
"From a financial standpoint, we achieved a significant increase in EBITDA as
a percentage of revenues. Much of this improvement was due to increased
productivity in our service centers and higher margins from our maintenance
business, as well as strong sales of our high-margin analog COM and digital CD
systems. We also successfully refinanced both our senior and subordinated
debt, which reduced our interest expense approximately $4.2 million in fiscal
1997, and we ended the year with a strong cash balance of $65.5 million." The
modest decline in annual revenues was largely attributable to the continued
shrinkage of micrographics supplies and magnetic tape sales.
"Also contributing to our positive results were a number of successful
acquisitions and competitive wins," continued Koehrer. "We enhanced the
recurring services aspect of our business by purchasing several service
centers in strategic locations, including three in Europe. We also acquired
Data/Ware Development, Inc., a prominent provider of high-volume CD systems
for document storage and retrieval, giving us the expertise to build a leading
market position in CD solutions. Furthermore, I am pleased to say that we won
several large contracts during the year, among them EDS, Total System
Services, Moore Business Systems, MasterCard, and Bradesco Bank - and we also
began a significant new relationship with J.C. Penny shortly after our year
end."
Serving customers throughout the world, Anacomp provides services and
products that enable its customers to access information when they want it,
where they want it, and in whatever form they want it. |
