Hello Jeffrey;
I bought another distributor today. MSEL. I've owned it in the past
and did ok with it. Heres a news story released today in case your
interested.
(BSNS WIRE) Merisel Reports Fiscal Year Profit of $18.5 Million, $.23 Pe
Merisel Reports Fiscal Year Profit of $18.5 Million, $.23 Per Diluted Share
Business Editors
EL SEGUNDO, Calif.--(BUSINESS WIRE)--Feb. 23, 1999--Merisel Inc.
(Nasdaq:MSEL) Tuesday announced final results for the fourth quarter
and fiscal year ended Dec. 31, 1998, in line with the company's
estimates of Jan. 18. The company's performance for the year resulted
in net income of $18,510,000, or $.23 per diluted share, on sales of
$4.55 billion, which represents annual sales growth for ongoing
operations in excess of 18 percent.
Merisel reported a consolidated net loss for 1997 of $15,841,000,
or $.48 per share, on sales of $4.05 billion. The loss includes
$10,924,000 in debt restructuring-related charges and a $14,100,000
non-cash asset impairment charge. Excluding divested operations and
the aforementioned charges, Merisel's ongoing operations would have
reported net income of $7,030,000, or $.21 per diluted share.
For the fourth quarter ended Dec. 31, 1998, the company reported
net income of $2,162,000, or $.03 per diluted share, on sales of $1.21
billion compared with a net loss of $9,939,000, or $.24 per share, on
sales of $1.07 billion for the same period last year. Last year's
results included $1,600,000 of debt restructuring-related charges and
the aforementioned impairment charge, without which the company would
have reported net income of $5,761,000, or $.14 per diluted share.
For the fiscal year, the company reported gross margins for its
ongoing operations of 5.59 percent of sales vs. 6.07 percent of sales
for 1997. Gross margins for the fourth quarter declined to 5.26
percent of sales from the 5.76 percent reported in the fourth quarter
last year. Management attributed the decline in fourth-quarter margins
to intense price competition, lower than anticipated revenues and
margins in the company's U.S. value-added reseller (VAR) and
commercial customer groups, changes in vendor terms and conditions,
and lower vendor incentives.
"There is no question that the fourth quarter was disappointing
for Merisel and challenging for others in the distribution channel,"
stated Dwight A. Steffensen, Merisel chairman and chief executive
officer. "However, we accomplished many of our goals and more than
doubled net income for the year even after eliminating last year's
charges. We have commenced 1999 with renewed energy evidenced by new
business and financing programs to support our VAR strategy. We are
also taking steps to correct many of the fourth-quarter issues through
focused initiatives and the filling of key sales management positions."
Steffensen added: "We view 1999 as a year of key investments for
the company, given our upcoming SAP implementation for U.S. operations
and initiatives to support our strategic plans to grow electronic
commerce, virtual distribution and enterprise computing. These are
essential investments that will position Merisel for future growth and
profitability. Our 1998 goals are to accelerate sales momentum,
increase margins, and build profitability."
Except for the historical financial information contained herein,
the matters discussed in this news release constitute forward-looking
information, and actual results could differ materially from current
expectations. Among the factors that could impact actual results are
demand trends in the computer products industry, competitive issues,
inventory risks from shifts in product demand, and other items
detailed periodically in the company's SEC reports on forms 10-K, 10-Q
and 8-K.
Merisel is a leader in the distribution of computer hardware and
software products, with reported 1998 sales of approximately $4.6
billion. Merisel, based in El Segundo, distributes a full line of
25,000 products and services from the industry's leading manufacturers
to resellers throughout North America. Merisel's corporate Web site is
located at www.merisel.com. Additional financial information can be
obtained by fax at 310/615-6811.
-0-
*T
MERISEL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended Twelve Months Ended
Dec. 31 Dec. 31
1998 1997 1998 1997
NET SALES $1,210,558 $1,074,880 $4,552,984 $4,048,972
GROSS PROFIT 63,702 61,945 254,431 241,084
SELLING, GENERAL
& ADMINISTRATIVE
EXPENSES 53,085 47,889 199,929 191,406
IMPAIRMENT LOSS -- 14,100 -- 14,100
OPERATING INCOME 10,617 (44) 54,502 35,578
INTEREST EXPENSE 3,349 3,544 14,671 26,957
OTHER EXPENSE 5,497 4,744 20,904 14,992
DEBT RESTRUCTURING
COSTS -- 1,600 -- 5,230
INCOME (LOSS) BEFORE
INCOME TAX PROVISION (391) 7 417 496
NET INCOME (LOSS)
ITEM $ 2,162 $ (9,939) $ 18,510 $ (12,097)
EXTRAORDINARY LOSS ON
EXTINGUISHMENT OF DEBT -- -- -- 3,744
NET INCOME (LOSS) $ 2,162 $ (9,939) $ 18,510 $ (15,841)
NET INCOME PER SHARE (BASIC AND DILUTED)
LOSS BEFORE EXTRAORDINARY
EXTRAORDINARY ITEM -- -- -- $ (0.12)
NET INCOME (LOSS) PER SHARE
WEIGHTED AVERAGE NUMBER OF SHARES
DILUTED 80,406 41,811 80,485 33,216
MERISEL INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
Dec. 31, Dec. 31,
1998 1997
Cash and cash equivalents $ 36,341 $ 36,447
Accounts receivable (net of
allowances of $20,476 and
$18,549 for 1998 and 1997,
respectively) 202,128 162,895
Inventories 587,317 462,752
Prepaid expenses and other
current assets 14,193 12,352
Deferred income tax benefit 865 644
Total current assets 840,844 675,090
PROPERTY AND EQUIPMENT, NET 79,719 40,142
ACQUIRED, NET 24,309 25,381
OTHER ASSETS 448 6,498
TOTAL ASSETS $945,320 $747,111
Accounts payable $623,673 $437,211
Accrued liabilities 32,933 38,963
Long-term debt -- current 2,496 1,762
Total current liabilities 659,102 477,936
Capital Lease Obligations 2,605
Long-term debt 129,360 131,667
TOTAL LIABILITIES 791,067 609,603
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value,
authorized 1,000,000 shares; none
issued or outstanding
Common stock, $.01 par value,
authorized 150,000,000 shares;
80,272,683 and 80,078,500 shares
outstanding for 1998 and 1997,
respectively 803 801
Additional paid-in capital 282,380 281,701
Accumulated deficit (118,495) (137,005)
Cumulative translation adjustment (10,435) (7,989)
Total stockholders' equity 154,253 137,508
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $945,320 $747,111
*T
--30--jap/la* tjj/la la/la kwp/la
CONTACT: Merisel Inc., El Segundo
Timothy N. Jenson
Senior Vice President, Finance, and CFO
310/615-6850
or
Howard Newberg
Investor Relations
310/615-6868
310/615-6442
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED EARNINGS
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
*** end of story *** |
