PLayTHeKing
THe cash earnings per share are .61 not .01, I saw the same alert and I think there was a mistake, here's the Q3 results below.
GEAC ANNOUNCES THIRD QUARTER RESULTS : Board Authorizes Spin-off of inteRealty.com
TORONTO, ONTARIO--Geac Computer Corporation Limited (TSE: GAC)
announced today its financial results for the third quarter and
nine months ended January 31, 2000. Sales for the three months
rose 32.5% to $281.9 million from $212.8 million the prior year.
Sales for the nine-month period grew 26.0% to $724.7 compared to
$575.4 for the same period last year. The Company also announced
plans to spin-off its inteRealty.com residential real estate B2B
division.
Adjusted net income (defined as net income not including the
impact of the amortization of acquired intangible assets) for the
third quarter was $38.9 million or $0.61 per common share on a
fully-diluted basis compared to $49.3 million or $0.75 per common
share on a fully diluted basis last year. In last year's third
quarter, the Company also capitalized development expenditures and
recorded amortization charges related to internally developed
software. In the comparable period in the current year there were
no capitalized development expenditures and no amortization of
internally developed software. Had these items not been included
in the previous year's third quarter results, adjusted net income
would have been $0.70 per fully diluted common share.
The Company experienced strong cash performance during the
quarter. Net debt was reduced by approximately $71 million
compared to the end of second quarter, further strengthening the
Company's balance sheet. During the quarter, the Company
established a new US$225 million committed bank facility.
Combined with the cash balances of $51 million at the end of the
quarter, the Company intends to continue to capitalize on evolving
acquisition opportunities.
For the nine month period ended January 31, 2000, adjusted net
income was $122.4 million or $1.89 fully diluted per common share
compared to $147.1 million or $2.25 fully diluted per common share
last year. Adjusted for capitalized development expenditures and
amortization of internally developed software as described above,
adjusted net income for the first nine months of the prior year
would have been $1.96 fully diluted per common share.
Acquisitions made over the past nine months contributed $118
million to the increase in Geac's sales for the three months ended
January 31, 2000. In particular, the acquisition of JBA Holdings,
effective September 21, 1999, contributed over $100 million in
sales to the quarter. For the nine months ended January 31, 2000,
acquisitions contributed approximately $181 million to the
Company's consolidated sales. The stronger Canadian dollar
experienced in the current year reduced reported sales in the
quarter by $10 million and by $16 million in the nine months ended
January 31, 2000, when compared to the previous year. Uncertainty
due to the impact of the transition to the 2000 calendar year had
an undetermined negative impact on license sales in the third
quarter. Finally, the prior year's sales also included a number of
Year 2000 professional engagements, particularly in the Company's
Enterprise Server business.
For the third quarter, license and hardware sales increased 46%
compared to the same three-month period last year. License and
hardware sales comprised approximately 23% of the total sales for
the quarter, with the balance made up of sales from recurring
maintenance and service revenues. For the nine months ended
January 31, 2000, consolidated sales were comprised of 23% license
and hardware revenues and 77% maintenance and service revenues.
Net income for the third quarter was $0.9 million or $0.01 per
fully diluted common share compared to $39.9 million or $0.61 per
fully diluted common share last year. For the nine months ended
January 31, 2000 net income was $58.9 million or $0.94 per fully
diluted common share compared to $122.4 million or $1.88 per fully
diluted common share the prior year.
Net income for the third quarter and nine months ended January 31,
2000 were impacted by charges related to the amortization of
intangible assets acquired, particularly with the acquisition of
JBA Holdings. Total amortization of intangible assets amounted to
$38.1 million in the third quarter, including $30.4 million
related to the acquisition of JBA, compared to $15.6 million last
year. The prior year figure includes amortization of capitalized
development costs.
Spin-off of inteRealty.com
The Board of the Company also authorized plans to spin-off its
inteRealty.com residential real estate B2B division.
inteRealty.com serves over 250,000 residential real estate brokers
throughout North America and maintains one of the largest
exchanges of residential real estate listings in the world,
currently exceeding 1.1 million active listings. Michael Harris,
formerly President of Geac Property Systems has been named CEO of
the new business.
Douglas Bergeron, President and CEO of Geac Computer Corporation
Limited commented, "Combined with our recent acquisition of the
real estate division of GTE, inteRealty.com is now positioned to
grow to fully maximize its position as the premier residential
real estate portal, connecting real estate brokers with all other
participants in the residential real estate marketplace. As a
stand-alone business, inteRealty.com will be best positioned to
form strategic and equity partnerships with complementary and
competitive B2B providers in this space."
Operating Highlights:
There were a number of other developments since the beginning of
the Company's third quarter:
/T/
* The announcement of an important strategic global alliance with
IBM to provide comprehensive e-business solutions, including services
and ERP software, for mid-market companies in the food, beverage,
apparel and footwear industries.
* Geac Publishing Systems signed a significant contract with PressPoint,
a leading provider of same-day editions of newspapers for travelers
in twelve international markets.
* Geac Hospitality Systems signed a strategic alliance to combine
its extensive point of sale software with Sharp Electronics
Corporation's POS hardware systems.
/T/
Financial Highlights (unaudited statements follow)
/T/
Period ended January 31, Three Months Nine Months
----------------------------------------------------------------------
($,000, except per share amounts) 2000 1999 2000 1999
----------------------------------------------------------------------
Revenue 281,927 212,781 724,726 575,380
Net income 859 39,912 58,900 122,445
Net income per common share
(fully diluted) 0.01 0.61 0.94 1.88
Adjusted net income
(see attached table) 38,939 49,286 122,352 147,078
Adjusted net income
per common share
(fully diluted)
(see attached table) 0.61 0.75 1.89 2.25
----------------------------------------------------------------------
/T/
Geac Computer Corporation Limited (Toronto Stock Exchange Symbol:
GAC) is a provider of mission critical software and systems
solutions to corporations around the world. Geac solutions include
cross-industry enterprise business applications for financial
administration and human resources functions, and enterprise
resource planning applications for manufacturing, distribution,
and supply chain management. As well, Geac provides several
industry-specific mission critical business applications to the
hospitality, property, banking, and publishing marketplaces, as
well as a wide range of applications for libraries and public
safety administration. Headquartered in Toronto, Canada, Geac
ranks as one of the world's largest software companies. Further
information is available on the World Wide Web at
geac.com, or through e-mail at info@geac.com.
This press release contains forward-looking statements based on
current expectations. These forward-looking statements entail
various risks and uncertainties that could cause actual results to
differ materially from those reflected in these forward-looking
statements. Risks and uncertainties about the Company's business
are more fully discussed in Management Discussion and Analysis
published in the Company's annual report.
/T/
Calculation of Adjusted Net Income and Adjusted Net Income
per Share (fully diluted)
Three Months Ended January 31
2000 1999
Net Income Per Financial Statements $ 859 $ 39,912 *
Amortization of Goodwill 15,594 3,990
Amortization of Acquired Intangibles 22,486 5,384
------- --------
Adjusted Net Income 38,939 49,286
-------- --------
-------- --------
Fully Diluted EPS on Adjusted Net Income $ 0.61 $ 0.75
---------------------------------------------------------------------
Nine Months Ended January 31
2000 1999
Net Income Per Financial Statements $ 58,900 $ 122,445*
Amortization of Goodwill 30,520 11,538
Amortization of Acquired Intangibles 32,932 13,095
-------- --------
Adjusted Net Income 122,352 147,078
--------- --------
--------- --------
Fully Diluted EPS on Adjusted
Net Income $ 1.89 $ 2.25
* 1999 Net income includes the net effect of capitalized expenditure
and recorded amortization charges related to internally developed
software. Gross capitalization for the three month period was $9.681
million and for the year to date was $35.649 million. Amortization
for the three month period was $6.188 million and for the year to date
was $16.135 million.
Net capitalization for the three month period was $3.493 million and
for the year to date was $19.514 million. In the current year there
are no capitalized development expenditures and no amortization of
internally developed software.
Geac Computer Corporation Limited
--------------------------------------------------------------
Consolidated Statements of Operations (unaudited)
Three Months Nine Months
(thousands of dollars, ended Jan 31 Ended Jan 31
except per share amounts) 2000 1999 2000 1999
--------------------------------------------------------------
Sales $ 281,927 $ 212,781 724,726 575,380
Expenses
Costs, excluding
amounts shown below 200,382 132,022 480,634 335,094
Research and
development
expenses 29,994 15,821 80,680 45,346
(net of capitalized
amounts - see note 3)
Depreciation of
fixed assets 6,585 5,193 16,166 14,171
Amortization of
intangible assets 38,080 15,562 63,452 40,767
Interest
expense (income) 3,042 (729) 2,540 (1,943)
--------------------------------------------------------------
278,083 167,869 643,472 433,435
--------------------------------------------------------------
Income before
income taxes before
unusual items 3,844 44,912 81,254 141,945
Minority interest 493 - 550 -
Provision for income
taxes 2,492 5,000 21,804 19,500
--------------------------------------------------------------
Net income for the
period $ 859 $ 39,912 58,900 122,445
--------------------------------------------------------------
Earnings per share
Basic $ 0.01 $ 0.64 0.96 1.98
--------------------------------------------------------------
Fully diluted $ 0.01 $ 0.61 0.94 1.88
--------------------------------------------------------------
Average shares
outstanding (000's) 61,786 62,158 61,659 61,761
--------------------------------------------------------------
Geac Computer Corporation Limited
--------------------------------------------------------------
Consolidated Balance Sheets (unaudited)
--------------------------------------------------------------
(thousands of dollars) 31-Jan-00 30-Apr-99
--------------------------------------------------------------
Assets
Current assets:
Cash and
short-term investments $ 51,350 $ 226,893
Accounts receivable 189,632 102,760
Unbilled receivables 15,326 15,941
Inventory 11,582 7,825
Prepaid expenses 32,491 9,312
-------------------------------------------------------------
300,381 362,731
Fixed assets 80,559 47,723
Deferred taxes 59,441 0
Intangibles, goodwill
and other assets 566,909 196,783
-------------------------------------------------------------
$ 1,007,290 $ 607,237
-------------------------------------------------------------
Liabilities
Current liabilities:
Bank loan $ 122,991 $ 0
Accounts payable and
accrued liabilities 256,602 137,674
Income taxes payable 30,331 20,526
Current portion of
long-term debt 4,236 35,766
Deferred sales revenue 351,958 213,669
-------------------------------------------------------------
766,118 407,635
Long-term debt 17,725 35,238
-------------------------------------------------------------
783,843 442,873
-------------------------------------------------------------
Minority Interest 1,413 0
Shareholders' Equity
Share capital 110,818 106,279
Retained earnings 114,912 56,286
Cumulative foreign
exchange translation
adjustment (3,696) 1,799
-------------------------------------------------------------
222,034 164,364
-------------------------------------------------------------
$ 1,007,290 $ 607,237
-------------------------------------------------------------
Geac Computer Corporation Limited
Consolidated Cash Flow Statement (unaudited)
Three months Nine months
ended January 31 ended January 31
--------------------------------------------------------------
(thousands of dollars) 2000 1999 2000 1999
--------------------------------------------------------------
Cash flows from
operating activities
Net income $ 859 $ 39,912 $ 58,900 $ 122,445
Adjusted for:
Minority interest 493 - 550 -
Foreign exchange
(gain) loss (929) 4,102 (5,348) (2,993)
Deferred taxes 2,800 - 2,800 -
Depreciation of
fixed assets 6,585 5,193 16,166 14,171
Amortization of
intangible
assets 38,080 15,562 63,452 40,767
--------------------------------------------------------------
47,888 64,769 136,520 174,390
Changes in
non-cash working
capital 11,540 29,160 (77,912) (60,819)
--------------------------------------------------------------
59,428 93,929 58,608 113,571
--------------------------------------------------------------
Cash flows from
investing activities
Acquisitions
less cash acquired 0 (5,035) (263,132) (37,972)
Additions to capital
assets, net (2,062) (188) (8,423) (7,573)
Additions to other
assets 0 (9,748) (32) (35,225)
--------------------------------------------------------------
(2,062) (14,971) (271,587) (80,770)
--------------------------------------------------------------
Cash flows from
financing activities
Issue of common
shares 2,142 5,746 4,539 17,626
Increase (decrease)
in bank operating
loan (1,066) - 102,265 -
Decrease in
long-term debt (68,205) (36,197) (68,205) (36,197)
--------------------------------------------------------------
(67,129) (30,451) 38,599 (18,571)
--------------------------------------------------------------
Effect of exchange
rates on cash and
short term
investments (1,957) (4,175) (1,163) (2,268)
Cash and short term
investments
Net cash (decrease)
increase during the
period (11,720) 44,332 (175,543) 11,962
Cash position at
the beginning of
the period 63,070 185,087 226,893 217,457
--------------------------------------------------------------
Cash position at the
end of the period 51,350 229,419 51,350 229,419
--------------------------------------------------------------
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
John Lanaway
Chief Financial Officer & Senior Vice Presiden
or
Doug Bergeron
President and Chief Executive Officer
Tel: (416) 642-1960
Fax: (416) 642-8454
Email: j.lanaway@geac.com d.bergeron@geac.com |
