Zomax Optical Media, Inc. Announces Continuing String of Record Sales and Earnings
Monday, January 26 4:04 PM ET
MINNEAPOLIS, Jan. 26 /PRNewswire/ -- Zomax Optical Media, Inc. (NASDAQ:ZOMX) today reported record sales and earnings for its fourth quarter ended December 26, 1997. For the fourth quarter, sales increased 100% to $12,412,000 from $6,213,000 while net income increased 105% to $1,038,000 as compared with net income of $506,000 for the same period in 1996. Basic earnings per share were $.23 in 1997 versus $.12 for the same quarter in 1996, diluted earnings per share were $.22 in 1997 versus $.12 for the same quarter in 1996.
For the twelve months ended December 26, 1997, sales increased 104% to $37,907,000 compared to $18,548,000 for the same period in 1996. Net income for the twelve months increased 79% to $2,307,000 compared to $1,291,000 for the same period in 1996. Basic earnings per share were $.52 in 1997 compared to $.34 in 1996, diluted earnings per share were $.51 in 1997 versus $.34 per share in 1996.
James T. Anderson, President and CEO, stated, "Our significant growth story continued to gain momentum in the fourth quarter. Fourth quarter sales reflect an internal growth of 60% with the balance from acquisitions. Over the past two years we have invested heavily in people and technology in order to get closer to our customers. This year we saw the results of that groundwork from all corners of our customer base. We are committed to being an industry leader among those accounts that demand an intense level of customer service coupled with a high quality product and on time delivery. We will continue to push ahead and raise the level of expectations for our entire industry."
Anderson went on to comment, "Other key growth factors have been our regional locations, the latest of which is in San Jose and will be coming on-line in February. In-house mastering now allows us to provide same day CD replication services for certain market segments as well as being DVD ready. The addition of RMA (return merchandise authorization) processing services gives our customer base a viable option for product disposition. All of these factors have allowed Zomax to be recognized as an all encompassing service provider."
In closing, Anderson stated, "In 1998 we expect to continue the three major initiatives we established in 1997. First, we will continue to invest in our people and systems. This will allow us to remain close to our customers. Second, we will look for expansion opportunities to enhance our foundation in North America and beyond. Third, we will continue to invest in new technologies such as DVD. I am confident our focused strategy will enable us to continue to obtain business from quality accounts looking for a full service supplier that is committed to this industry for the long haul."
The fourth quarter includes the results of Benchmark Media Services Inc., a CD and diskette replicator, and Trotter Technologies, an RMA processing service company, both of which were acquired in the second quarter of 1997. These newly acquired businesses accounted for $2,459,000 in total sales for the quarter.
Zomax Optical Media, Inc. is a Minneapolis-based manufacturer and producer of CD-ROM, CD Video, CD Audio, Floppy Disc and Audio Cassette replication services, with additional facilities in Indianapolis and San Jose. The company services the multimedia needs of a wide range of customers with full turnkey capabilities, including graphic design, artwork and printing, mastering, pressing, packaging, distribution and RMA processing.
Statements contained in this press release regarding the Company's efforts to expand operations and to continue increased sales volumes are forward- looking, based on current expectations. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors that could cause results to differ materially from those anticipated, including: strategies of competitors, market demand, the Company's ability to integrate the new mastering into the manufacturing process, general economic factors, such as consumer confidence and inflation, and the Company's ability to successfully assimilate its newly acquired software replication businesses. Investors are cautioned that all forward-looking statements involve risk and uncertainty.
ZOMAX OPTICAL MEDIA, INC.
(Successor to Zomax Optical Media Limited Partnership)
Proforma Statements Of Operations
Three Months Ended Year Ended
Dec. 26, Dec. 27, Dec. 26, Dec. 27,
1997 1996 1997 1996
(a)
Sales $12,412,449 $6,213,140 $37,906,853 $18,547,796
Cost of Sales 8,823,507 4,421,830 28,033,354 13,270,046
Gross Profit 3,588,942 1,791,310 9,873,499 5,277,750
Selling, General
and Administrative
Expenses 1,757,509 975,019 5,859,326 3,050,980
Operating Income 1,831,433 816,291 4,014,173 2,226,770
Interest Expense (114,597) (82,651) (408,915) (357,166)
Interest Income 42,698 97,484 222,120 284,624
Income Before
Income Taxes 1,759,534 831,124 3,827,378 2,154,228
Income Taxes 722,000 325,000 1,520,000 863,000
Net Income $1,037,534 $506,124 $2,307,378 $1,291,228
Basic Earnings
Per Share $0.23 $0.12 $0.52 $0.34
Diluted Earnings
Per Share $0.22 $0.12 $0.51 $0.34
(a) The pro forma statement of operations for 1996 reflects the historical statement of operations data of the predecessor Partnership as if the Partnership had been treated as a taxable entity for income tax purposes (assuming a 39% effective tax rate).
ZOMAX OPTICAL MEDIA, INC.
Summarized Balance Sheets
ASSETS
Dec. 26, 1997 Dec. 27, 1996
Current Assets:
Cash $5,018,903 $6,914,899
Accounts receivable 6,105,574 3,944,929
Inventories 1,465,911 1,262,665
Prepaid expenses 78l,265 110,443
Total current assets 13,371,653 12,232,936
Property and equipment 13,560,563 7,574,501
Goodwill 1,228,023 --
Other assets 27,572 147,416
Total assets $28,187,811 $19,954,853
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank Line of Credit $0 $0
Current portion
of notes payable 2,153,950 1,508,607
Accounts payable and
accrued expenses 7,196,530 3,613,956
Total current liabilities 9,350,480 5,122,563
Notes payable, net of
current portion 3,040,642 1,714,374
Shareholders' equity:
Common stock, no par value,
15,000,000 authorized shares,
4,450,815 and 4,385,000
shares issued and outstanding at
Dec. 26, 1997 and Dec. 27, 1996,
respectively 12,504,982 12,133,585
Retained earnings 3,291,707 984,331
Total shareholders' equity 15,796,689 13,117,916
$28,187,811 $19,954,853
Source: Zomax Optical Media, Inc.
Contact: Jim Anderson, President and CEO, or Jim Flaherty, Chief Financial Officer of Zomax Optical Media, 612-553-9300
c 1997, PR Newswire
|
