META earnings out: Positive.
Kindest Regards,
DD
(COMTEX) B: Metatec Announces First Quarter Results; Earnings Per Sha
B: Metatec Announces First Quarter Results; Earnings Per Share is 14 Cents vs.
9 Cents for Same Period Last Year
DUBLIN, OHIO (April 19) BUSINESS WIRE -April 19, 1999--Metatec
Corporation (Nasdaq:META), a leading U.S. provider of optical disc
services to information publishers and software companies, today
announced results for its first quarter ended March 31, 1999.
Revenue for the first quarter ended March 31, 1999, increased 111
percent to $31,067,983 compared to $14,717,057 for the first quarter
ended March 31, 1998.
Earnings before income taxes increased 43 percent to $1,517,790 for
the quarter ended March 31, 1999, compared to $1,058,910 for the same
quarter of the prior year.
Net earnings increased 48 percent to $857,790 for the quarter ended
March 31, 1999, compared to $578,069 for the same quarter of the prior
year.
Basic and diluted earnings per share for the first quarter of 1999
increased 56 percent to 14 cents compared to 9 cents for the first
quarter of 1998.
Basic weighted average number of shares outstanding were 6,072,677 for
the quarter ended March 31, 1999, compared to 6,069,980 for the quarter
ended March 31, 1998. Diluted weighted average number of shares
outstanding were 6,163,098 for the quarter ended March 31, 1999,
compared to 6,113,884 for the quarter ended March 31, 1998.
"Our strong quarter was the result of heavy demand for CD-ROM products
worldwide, increased revenue due to the Imation acquisition, and the
elimination of costs associated with closing a former Imation plant in
Wisconsin which occurred in the fourth quarter of 1998," said Jeffrey
M. Wilkins, chairman and chief executive officer. "Increased volumes at
all of our disc manufacturing plants pushed results above forecasts and
showed a continuation of the demand for services that characterized our
fourth quarter last year."
Wilkins said that all sectors of Metatec's business saw increased
demand including data mastering, CD-ROM and DVD (digital versatile
disc) replication, packaging and fulfillment. The company also saw an
increase in the use of its suite of Internet-based customer information
services.
Wilkins cautioned that while the first quarter was strong, the
cyclical nature of the Metatec CD-ROM customer base typically affects
results in the second and third quarter when compared to the strength
shown in the first and fourth quarters.
Wilkins added that with Metatec now operating optical disc
manufacturing plants in California, Ohio and The Netherlands, the
company is well positioned to capitalize on the growing demand for
global information distribution solutions.
Highlights for the quarter:
-- Capacity expansion of the company's Silicon Valley site continued
on schedule. Facility preparation, set for May completion, will
allow the consolidation of two existing facilities thereby
reducing operating costs while allowing 60 percent more space for
disc manufacturing and packaging business.
-- Revenue, jobs and recurring jobs from customers requesting DVD
continued their steady climb as more companies offered
information on both DVD and CD-ROM formats.
-- The company released its latest edition of Metatec Exchange, a
suite of Internet-based customer information and workflow
enhancement services.
-- More than 100 people were hired, taking total employment to
approximately 760 worldwide.
Metatec is an international information distribution company and one
of the largest optical disc manufacturers and distributors in the
world. The company helps more than 2,600 organizations utilize CD-ROM
and DVD-ROM technologies to publish and distribute information and
software. Metatec operates ISO-9002 certified manufacturing and
fulfillment sites in Ohio, California and The Netherlands. Metatec
offers its customers a variety of services including data preparation
and mastering, optical disc replication and printing, packaging, bulk
distribution and individual fulfillment, inventory management, project
management and a variety of electronic monitoring and tracking
services. The company maintains sales and customer support offices
throughout the United States and in Europe. The company's web site is
metatec.com.
Investors can listen to the live conference call over the Internet at
11 a.m. EDT today through Vcall at vcall.com.
See attached financial highlights.
Except for historical information, all other statements made in this
press release are "forward-looking" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to certain risks and uncertainties that could
cause the company's actual results to differ materially from those
projected. Such risks and uncertainties that might cause such a
difference include but are not limited to changes in general business
and economic conditions, changes in demand for CD-ROM products, excess
capacity levels in the CD-ROM industry, the introduction of new
products by competitors, increased competition (including pricing
pressures), changes in manufacturing efficiencies, changes in
technology, Year 2000 compliance issues, and other risks indicated in
the company's filings with the Securities and Exchange Commission,
including Form 10-K for Metatec's year ended Dec. 31, 1998.
METATEC CORPORATION (Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS March 31, December 31,
1999 1998
-------------------------------------- ------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 2,868,754 $ 2,557,221
Accounts receivable, net of
allowance for doubtful accounts
of $494,000 and $490,000 21,225,192 21,635,889
Inventory 3,462,798 3,207,460
Prepaid expenses 1,321,749 1,037,945
Prepaid income taxes -- 580,879
Deferred income taxes 143,000 143,000
------------ ------------
Total current assets 29,021,493 29,162,394
Property, plant and equipment - net 56,057,918 55,827,054
Goodwill - net 20,041,482 20,453,366
------------ ------------
Total Assets $ 105,120,893 $ 105,442,814
------------ ------------
------------ ------------
Liabilities & Shareholders' Equity
Current liabilities:
Accounts payable $ 10,963,542 $ 12,052,442
Accrued royalties 1,296,848 2,053,691
Accrued personal property taxes 1,240,530 993,399
Other accrued expenses 1,459,567 2,526,684
Accrued payroll 1,814,586 1,598,507
Unearned income 259,566 156,440
Current maturities of long-term debt
and capital lease obligations 3,059,402 3,080,185
------------ ------------
Total current liabilities 20,094,041 22,461,348
Long-term debt and capital lease
obligations, less current maturities 40,865,759 39,506,376
Other long-term liabilities 56,213 45,193
Deferred income taxes 1,480,000 1,480,000
------------ ------------
Total liabilities 62,496,013 63,492,917
------------ ------------
Shareholders' equity:
Common stock, $.10 par value;
authorized 10,083,500 shares;
issued 1999 - 7,157,355 shares;
1998 - 7,153,480 715,736 715,348
Additional paid-in capital 34,229,402 34,218,577
Accumulated other comprehensive
income (161,057) 32,963
Retained earnings 13,663,336 12,805,546
Treasury stock, at cost
- 1,081,742 share (5,822,537) (5,822,537)
------------ ------------
Total shareholders' equity 42,624,880 41,949,897
------------ ------------
Total Liabilities & Shareholders'
Equity $ 105,120,893 $ 105,442,814
------------ ------------
------------ ------------
METATEC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
Three Months Ended March 31,
------------------------
1999 1998
--------------------------------------------- ---------- ----------
NET SALES $ 31,067,983 $14,717,057
Cost of sales 21,000,320 9,830,375
---------- ----------
Gross profit 10,067,663 4,886,682
Selling, general and administrative expenses 7,823,529 3,776,106
---------- ----------
OPERATING EARNINGS 2,244,134 1,110,576 |
