BBOX ( Winner $61-$64) Revenues climb , Net Income, Earnings Per Share and Free Cash Flow for Fourth Quarter and Total Year
Targets FY2002 Revenues of $1 Billion and 20-22% Operating EPS Growth
PITTSBURGH--(BUSINESS WIRE)--May 9, 2001-- Black Box Corporation (Nasdaq:BBOX - news) today reported record revenues, net income, earnings per share and free cash flow for the fourth quarter and total year ended March 31, 2001.
Revenues for the fiscal year ended March 31, 2001 increased 63% to $827 million, up from $508 million for last year. Net income before intangibles amortization for the year was $77.0 million, or 9.3% of revenues, an increase of 39% from $55.3 million for last year. Earnings per share before intangibles amortization for the year were $3.86, an increase of 31% from $2.94 per share for last year. Reported net income for fiscal 2001 was $64.2 million, up 31% from last year's $48.9 million. Reported earnings per share for fiscal 2001 were $3.22, up 24% from $2.60 per share last year. Free cash flow for the year was $62 million, or 97% of net income, compared to last year's $38 million, or 78% of net income.
Revenues for the quarter ended March 31, 2001 increased 41% to $225 million, up from $159 million for the same period last year. Net income before intangibles amortization for the quarter was $20.7 million, an increase of 26% from $16.5 million for the same period last year. Earnings per share before intangibles amortization for the quarter were $1.03, an increase of 20% from 86 cents per share for the same period last year. Reported net income for the quarter was $17.1 million, up 19% from last year's fourth quarter of $14.3 million. Reported earnings per share were 85 cents, up 13% from last year's 75 cents per share. Free cash flow for the quarter was $22 million, or 129% of net income, compared to last year's $12.1M, or 85% of net income.
Commenting on FY2001 results, Fred C. Young, Chief Executive Officer of Black Box Corporation, said, ``We are very pleased to report our sixth consecutive year of reported earnings per share growth at 20% or greater, with our two most recent years at 24%.
``More importantly, we grew our FY2001 operating EPS by 31%. We believe operating EPS growth is the clearest measurement of our economic earnings success, particularly when coupled with our 97% free cash flow to net income ratio.
``Our key to success continues to be great clients served by a great team. We have 154,000 clients in 132 countries throughout the world serviced by 5,000 Black Box team members. Our technical services remain the most extensive and reliable in the industry, ranging from quick answers on the phone to client-based on-site teams -- all 100% dedicated to designing, building and maintaining today's complicated network infrastructure systems.
``As we look forward, we will remain focused and disciplined in accomplishing our number one mission - consistent and profitable growth.
``Our primary operating objectives for FY2002 include:
achieving further integration of phone and on-site services,
increasing our on-site services profitability,
continuing our aggressive on-site geographic expansion throughout the world, and
remaining conservative on revenue expectations, and thus our cost structure, during these uncertain economic times.
``Our financial objectives for FY2002 are to achieve $1 billion in revenues; $4.62 to $4.72 in operating earnings per share; $3.90 to $4.00 in reported earnings per share; and 75-80% free cash flow to net income, or approximately $65-$70 million of free cash flow. These financial objectives exclude any positive impact of our geographic expansion program. We would expect, consistent with prior years, $100 to $150 million of additional annualized revenues from this program.
``In support of these objectives, we reduced our cost structure by approximately $7 million annually, or a 5 cents per share quarterly forward benefit. This reduction was implemented late in March to align our cost structure with future revenue expectations. The full impact of this reduction would have yielded EPS of approximately 89 cents to 90 cents at 4Q FY2001-level revenues.''
Mr. Young went on to say, ``We are conscious of the current business climate challenges. Although not immune to some level of impact to our business, we expect to demonstrate continued earnings growth as a result of the high quality clients we serve, the spectrum and nature of technical services we provide and our global diversity. We've put another record year in the history books and have Black Box positioned for FY2002 to be as equally impressive.''
Black Box will conduct a conference call beginning at 10:45 a.m. Eastern time later today, May 9, 2001. Fred Young, Chief Executive Officer, will discuss the business and host a Q & A. To participate in the call, please dial 800-450-0788 approximately 10 minutes prior to the starting time and ask to be connected to the Black Box Earnings Call.
This release contains forward-looking statements, which are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. The statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of the date of this press release.
Black Box is the world's largest technical services company dedicated to designing, building and maintaining today's complicated network infrastructure systems. Black Box services clients of all sizes in 132 countries throughout the world. |
