Anacomp Announces First Quarter Financial Results
Results Show Increased Revenues And Reflect Acquisitions,
Significant New Business
SAN DIEGO, Feb. 11 /PRNewswire/ -- Anacomp, Inc. (Nasdaq: ANCO), a world leader in information management services and products, today announced its first quarter financial results that show continued revenue growth and reflect the positive impact of recent acquisitions as well as large new contracts won by the company. Anacomp also announced the reelection of its Board of Directors.
For the three-month period ended December 31, 1997, Anacomp recorded revenues of $117.8 million, which represents a 4.4% increase over the comparable period a year ago, when the company posted revenues of $112.9 million (excluding a special one-time $3.6 million payment from the Eastman Kodak(R) company).
"Overall, it was another very positive quarter and we continue to make progress in transitioning the company to growth," said Ralph W. Koehrer, Anacomp's president and chief executive officer. "In addition to the positive top-line improvement over the first quarter of last year, we also achieved modest revenue growth over the previous quarter. As we reenergize our traditional businesses and invest in next-generation solutions, we are focused on steady and predictable revenue growth."
A variety of factors contributed to the higher revenues, including significant new contracts with large customers; strong demand for the company's outsourcing COM services (partially fueled by acquisitions) and flagship COM system, the XFP2000(R); continued growth of the company's CD services; increased CD system sales, including the first placements into the company's European customer base; and the positive impact of the recent Cominformatic acquisition on the company's newer electronic delivery solutions.
EBITDA (earnings before interest, other income, taxes, depreciation, and amortization) in the first quarter was $19.1 million. That compares to $19.7 million in the comparable period a year ago (excluding the one-time Kodak payment).
"The decline in EBITDA in the first quarter was largely due to investments we are making in our sales force, including some significant one-time training costs," noted Koehrer. "We are comfortable with this spending pattern, because we believe we are taking the appropriate actions to grow the business and we also have efforts underway to increase our margins. We also have had modest deterioration in our services margin percentages over the last few quarters, primarily because of large competitive wins."
In other developments, Anacomp announced the reelection of its current Board of Directors at the company's annual shareholders' meeting held on February 9, 1998. With over 98% of the company's common shares represented at the meeting, each of following nominees were reelected: Ralph W. Koehrer, Anacomp president and chief executive officer; Talton R. Embry, chairman and chief investment officer, Magten Asset Management Corp.; Darius W. Gaskins, Jr., partner with High Street Associates, Inc.; Jay P. Gilbertson, president, chief financial officer, and co-chief operating officer, HBO & Company; Richard D. Jackson, co-chairman of the Board and consultant; George A. Poole, Jr., private investor; and Lewis Solomon, co-chairman of the Board and chairman of G & L Investments. Each director received at least 99.9% of the votes cast.
In addition, Anacomp also announced the acquisition of Work Smart, Incorporated, a Virigina-based provider of document management consulting and integration services, and M.S.I., a small provider of COM services located outside of Paris that represents Anacomp's sixth European service bureau. Additional details regarding the Work Smart, Incorporated purchase are contained in a news release issued separately today by Anacomp. |
