If you want a great company on a bad day: (TYL) Tyler
Released moments ago,
Tyler Technologies Reports 1999 Results Revenues Increase 114% for e-Government Solutions Provider
DALLAS, Apr 5, 2000 /PRNewswire via COMTEX/ -- Dallas-based Tyler Technologies,
Inc. (NYSE: TYL) today announced results for the year ended December 31, 1999.
Revenues for 1999 more than doubled to $108.4 million from $50.5 million in
1998. Operating income rose 38% to $6.9 million in 1999 from $5.0 million in
1998.
Income from continuing operations before income taxes was $2.3 million in 1999,
compared to $3.2 million in 1998. After income taxes, the net loss from
continuing operations was $64,000 ($0.00 per diluted share) for 1999, compared
to income of $1.2 million in 1998. After a $2.8 million loss from discontinued
operations in 1999 (compared to a loss from discontinued operations of $9.5
million in 1998), Tyler had a net loss of $2.8 million ($0.07 per diluted share)
in 1999, compared to a net loss of $8.4 million ($0.24 per diluted share) in
1998.
EBITDA, or earnings from continuing operations before interest, costs of certain
acquisition opportunities, income taxes, depreciation and amortization increased
46% to $20.0 million ($0.51 per diluted share) for the year ended December 31,
1999 from $13.7 million ($0.40 per diluted share) in 1998. "We believe EBITDA is
a significant measure of our performance as we invest in building our
e-government business," said John M. Yeaman, president. "Our EBITDA growth was
robust and very much in line with our expectations for 1999."
On a proforma basis, total revenues increased 26% to $144.4 million in 1999 from
$114.6 million in 1998. "We are pleased that our internal growth continued at a
very strong rate during 1999," commented Mr. Yeaman. "That organic growth,
coupled with strategic acquisitions, has given us a huge installed base in over
5,000 local government offices in 49 states, Canada and Puerto Rico. We intend
to leverage that base in 2000 as we move into the next phase of our growth
strategy in the e-government market."
Two unusual items affected the 1999 results. First, the Company changed its
accounting for sales of copies of title plants in the fourth quarter of 1999. In
December 1999, the Securities and Exchange Commission issued Staff Accounting
Bulletin No. 101 entitled Revenue Recognition in Financial Statements (SAB 101)
in which the SEC staff clarified certain revenue recognition matters. During
each of the first three quarters of 1999, the Company sold copies of title
plants together with monthly updates and recognized revenue for the value
ascribed to the sale of the ownership privileges. SAB 101 requires transactions
of this nature to remain bundled and the associated revenues to be recognized
ratably over the service period. Accordingly, in the fourth quarter of 1999, the
Company changed its accounting principles effective to the beginning of the
year. The effect of the accounting change was to reduce revenues by $5.3 million
and to reduce net income by $3.6 million ($0.09 per diluted share) from amounts
previously reported in the first nine months of 1999. The change in accounting
had no effect on the Company's cash flow. The bundled revenues will now be
recognized as income ratably over the five or ten year lives of the related
contracts.
Second, Tyler recorded a pretax charge of $1.9 million in the fourth quarter of
1999 in connection with the write-off of notes receivable from CPS Systems, Inc.
(CPS). Tyler had provided CPS with bridge funding during 1999 in connection with
a proposed acquisition of CPS or its assets. In January 2000, CPS filed for
bankruptcy protection and the bankruptcy court auctioned off its assets in March
2000. At the auction, Tyler successfully bid $100,000 in cash for the California
tax and appraisal software source code and related assets that CPS had spent
over $4 million developing. Because Tyler expects minimal to no further recovery
on its secured receivables from CPS, the balance of the notes was charged to
expense in 1999 as costs of certain acquisition opportunities.
"Tyler Technologies successfully achieved a number of significant goals that we
had set for 1999," noted Mr. Yeaman. "We have established a formidable
nationwide base of strong client relationships with cities, counties and other
local government entities. While doing so, we have built on our long-standing
reputation for innovation and quality client service in the marketplace."
"With a current annual revenue run rate approaching $150 million, we are poised
to become the premier provider of end-to-end Internet-based e-government
solutions. We have in place the management team and skilled technical personnel
to move forward rapidly with the next phase of our growth strategy. We believe
that our back-end application solutions, coupled with front-end web
browser-based solutions, give Tyler one of the only true end-to-end e-government
solutions for the local government marketplace and provide a real edge over our
competitors," added Mr. Yeaman.
The Company has scheduled a conference call to discuss the 1999 results and the
Company's outlook and new initiatives for 2000 as it enters the next phase of
its growth strategy. The call will begin at 10:00 a.m. central time on
Wednesday, April 5, 2000. The conference call can be accessed on the Company's
website at www.tylertechnologies.com . A replay will also be available on the
website.
Tyler Technologies, Inc. is a premier provider of end-to-end Internet-based
e-government solutions for the local government market. In addition, Tyler is
building a national portal for Internet access to proprietary real property
data, information and services. Tyler has a full suite of back-end application
solutions covering virtually every area of local government. Tyler's strategy is
to leverage its installed base in over 5,000 local government offices in 49
states, Canada and Puerto Rico with new Internet-based products and services.
Tyler's e-government offerings include web browser-based solutions that allow
Internet access to information in local government offices, e-commerce solutions
that allow the public and businesses to transact business with local governments
over the Internet, and ASP deployable back-end information management systems.
Tyler Technologies is headquartered in Dallas, Texas and has approximately 1,400
employees. More information about Tyler Technologies can be found on its website
at www.tylertechnologies.com .
Tyler Technologies has included forward-looking statements concerning its
business and operations in this press release. Although Tyler believes that the
expectations reflected in these forward-looking statements are reasonable, these
expectations and the related statements are subject to risks and uncertainties
that could cause actual results to differ materially from those projected. Tyler
expressly disclaims any obligation to release publicly any updates or revisions
to these forward-looking statements to reflect any change in its expectations.
TYLER TECHNOLOGIES, INC.
Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share data)
Year Ended Three Months Ended
December 31, December 31,
1999 1998 1999 1998
Revenues $108,401 $50,549 $35,128 $17,713
Costs and expenses 92,322 39,210 31,289 13,846
Costs of certain
acquisition
opportunities 1,851 3,146 1,851 3,146
Amortization of
intangibles 7,315 3,173 2,248 1,190
Interest expense, net 4,573 1,831 1,780 588
Income(loss) from
continuing operations
before income taxes 2,340 3,189 (2,040) (1,057)
Income tax provision
(benefit) 2,404 2,033 (464) 14
Income (loss) from
continuing operations
(64) 1,156 (1,576) (1,071)
Discontinued operations:
Loss from operations,
after income tax -- (1,378) -- (1,131)
Loss on disposal,
after income taxes (2,760) (8,138) (813) (8,513)
(2,760) (9,516) (813) (9,644)
Net loss $(2,824) $(8,360) $(2,389) $(10,715)
Basic earnings (loss)
per common share:
Continuing operations $-- $0.04 $(0.04) $(0.03)
Discontinued operations (0.07) (0.30) (0.02) (0.28)
Net earnings per
common share $(0.07) $(0.26) $(0.06) $(0.31)
Diluted earnings (loss)
per common share:
Continuing operations $-- $0.03 $(0.04) $(0.03)
Discontinued operations (0.07) (0.27) (0.02) (0.28)
Net loss per common
share $(0.07) $(0.24) $(0.06) $(0.31)
Weighted average
outstanding common
shares (thousands):
Basic 39,105 32,612 42,495 34,490
Diluted 39,105 34,400 42,495 34,490
EBITDA (1) $20,025 $13,669 $5,253 $4,918
EBITDA per diluted
share $0.51 $0.40 $0.12 $0.14
(1) EBITDA consists of earnings from continuing operations before
interest, costs of certain acquisition opportunities, income taxes,
depreciation and amortization. Although EBITDA is not a calculation
in accordance with generally accepted accounting principles, the
Company believes that EBITDA is widely used as a measure of operating
performance. Nevertheless, the measure should not be considered in
isolation or as a substitute for operating income, cash flows from
operating activities or any other measure for determining the
Company's operating performance or liquidity that is calculated in
accordance with generally accepted accounting principles. In
addition, since all companies do not calculate EBITDA in the same
manner, this measure may not be comparable to similarly titled
measures reported by other companies.
SOURCE Tyler Technologies, Inc.
(C) 2000 PR Newswire. All rights reserved.
http://www.prnewswire.com
CONTACT: Brian K. Miller, Vice President - Finance of Tyler
Technologies, 214-902-5080
KEYWORD: Texas
INDUSTRY KEYWORD: MLM
SUBJECT CODE: ERN
URL: tylertechnologies.com
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