Company Press Release
Global Payment Technologies
Announces Record Sales and
Earnings for Fiscal 1998 Fourth Quarter and Year
VALLEY STREAM, N.Y.--(BUSINESS WIRE)--Nov. 30, 1998--Global Payment
Technologies, Inc. (Nasdaq Symbol: GPTX - news; ''GPT''), a leading manufacturer and
innovator of currency acceptance systems used in the worldwide gaming, beverage, and vending
industries, today announced record net sales and net income for both the fiscal fourth quarter and
the year ended September 30, 1998. Net sales for the fiscal fourth quarter rose 47% to $11.0
million, compared with $7.5 million in the prior-year period. Net income for the quarter increased
63% to $0.9 million, or $0.15 per share, compared with $0.6 million, or $0.09 per share, in the
prior-year period.
For fiscal year 1998, net sales increased 65% to $39.4 million, compared with $23.9 million in
fiscal 1997. Net income for the year was $3.4 million, or $0.56 per share, compared with $1.5
million, or $0.25 per share, in the prior-year period. Net income for fiscal 1998 includes an
after-tax gain of $225,000, which is the result of the sale of a portion of the Company's equity
interest in its South African affiliate. Excluding the effect of this gain, net income for fiscal 1998
increased 112% to a pro forma $3.1 million, or $0.52 per share.
Ed Seidenberg, President and Chief Operating Officer, said: ''We are pleased with our results for
both the fourth quarter and the year ended September 30, 1998. The fourth quarter's results
marked the seventh consecutive quarter of record sales and net income, exclusive of the third
quarter's one-time gain mentioned above. This achievement is the result of the hard work and
dedication of all of GPT's associates and joint venture partners.
''For the year ended September 30, 1998, both sales and net income exceeded our stated
objectives of 20-25% growth. Looking ahead, we will again devote our efforts to achieving our
stated objective of 20-25% growth in both sales and net income during 1999. We believe the
momentum GPT has experienced should continue, however, equaling the growth rate achieved in
1998 will be difficult. We expect that our joint ventures in South Africa and Australia, both of
which have just begun to realize their potential, will contribute more significantly to our success in
1999. Additionally, we are confident that our Generation III product, which is scheduled for field
trials in early 1999, will improve our product in terms of fraud detection, acceptance rate, and
adaptability. Finally, we believe the continuing growth of the gaming, beverage, vending, and retail
industries will provide GPT with a world of opportunities for expansion into new sectors and
applications in the years ahead.''
In compliance with Statement of Financial Accounting Standards No.128, ''Earnings per Share,''
GPT now reports both basic and diluted net income per share. All earnings per share figures
referred to in this release are diluted earnings per share unless otherwise indicated. Diluted net
income per share figures for the prior year's three-month and twelve-month periods ended
September 30, 1997, (adjusted retroactively to give effect to a two-for-one stock split, in the
form of a stock dividend, distributed on September 4, 1997) are unchanged from previously
reported net income per share.
Global Payment Technologies, Inc. is a United States-based designer, manufacturer, and marketer
of automated currency acceptance and validation systems used to receive and authenticate
currencies in a variety of payment applications worldwide. GPT's proprietary and patented
technologies are among the most advanced in the industry.
Special Note Regarding Forward-Looking Statements: A number of statements contained in this
release are forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in the applicable statements. These risks and
uncertainties include, but are not limited to: GPT's dependence on the paper currency validator
market and its potential vulnerability to technological obsolescence; possible risks of product
inventory obsolescence; potential difficulties in manufacturing operations; potential shortages of
key parts and/or raw materials; potential difficulties in managing growth; dependence on a limited
base of customers for a significant portion of sales; the risks that its current and future products
may contain errors or defects that would be difficult and costly to detect and correct; dependence
on key personnel; the possible impact of competitive products and pricing; and other risks
described in more detail in GPT's Securities and Exchange Commission filings.
GLOBAL PAYMENT TECHNOLOGIES, INC.
CONSOLIDATED INCOME STATEMENTS
(IN $OOOs EXCEPT SHARE AND PER SHARE DATA)
(unaudited) (audited)
THREE MONTHS ENDED TWELVE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1998 1997 1998 1997
---- ---- ---- ----
NET SALES $11,008 $7,492 $39,388 $23,868
GROSS PROFIT 4,355 2,931 16,375 8,986
NET INCOME (1) (2) (3) 909 559 3,356 1,475
====================== ======================
PER SHARE INFORMATION:
BASIC $0.16 $0.10 $0.61 $0.27
====================== ======================
DILUTED (4) $0.15 $0.09 $0.56 $0.25
====================== ======================
COMMON SHARES USED IN COMPUTING
PER SHARE AMOUNTS:
BASIC 5,511,598 5,502,145 5,513,414 5,500,530
====================== ======================
DILUTED(4) 5,913,519 5,996,046 5,995,067 5,794,215
====================== ======================
(1) INCLUDES $49,000 AND ($54,000) EQUITY IN INCOME (LOSS) OF
UNCONSOLIDATED AFFILIATES FOR THE QUARTERS ENDED SEPTEMBER
30, 1998 AND 1997, RESPECTIVELY. INCLUDES $185,000 AND ($71,000)
EQUITY IN INCOME (LOSS) OF UNCONSOLIDATED AFFILIATES FOR THE
TWELVE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997, RESPECTIVELY.
(2) INCLUDES AN AFTER-TAX GAIN OF $225,000 FOR THE TWELVE
MONTHS ENDED SEPTEMBER 30, 1998, WHICH IS THE RESULT OF THE SALE
OF A PORTION OF THE COMPANY'S EQUITY INTEREST IN ITS
UNCONSOLIDATED SOUTH AFRICAN AFFILIATE. ADDITIONALLY, THE
SOUTH AFRICAN AFFILIATE SOLD SOME NEWLY ISSUED COMMON
SHARES AND THE COMPANY'S OWNERSHIP HAS SUBSEQUENTLY BEEN
REDUCED FROM 50% TO 33%.
(3) FOR THE THREE AND TWELVE MONTHS ENDED SEPTEMBER 30, 1998,
NET INCOME IS REDUCED BY APPROXIMATELY $250,000, WHICH
REPRESENTS THE DEFERRAL OF GPT'S SHARE OF THE GROSS PROFIT ON
INTERCOMPANY SALES THAT HAVE NOT YET BEEN RECOGNIZED BY
GPT'S AFFILIATE.
(4) FOR THE QUARTERS ENDED SEPTEMBER 30, 1998 AND 1997, DILUTED
NET INCOME PER SHARE INCLUDES THE IMPACT OF 401,921 AND 493,901
WEIGHTED AVERAGE COMMON STOCK EQUIVALENTS, RESPECTIVELY,
BASED ON STOCK OPTIONS AND WARRANTS OUTSTANDING, USING THE
TREASURY STOCK METHOD. FOR THE TWELVE MONTHS ENDED
SEPTEMBER 30, 1998 AND 1997, RESPECTIVELY, DILUTED NET INCOME PER
SHARE INCLUDES THE IMPACT OF 481,653 AND 293,685 WEIGHTED
AVERAGE COMMON STOCK EQUIVALENTS, RESPECTIVELY, BASED ON
STOCK OPTIONS AND WARRANTS OUTSTANDING, USING THE TREASURY
STOCK METHOD.
GLOBAL PAYMENT TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
($000s)
(Audited)
9/30/98 9/30/97
----------- -----------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 834 $ 1,913
ACCOUNTS RECEIVABLE, net 10,751 4,840
INVENTORY, net 8,090 5,120
PREPAID EXPENSES 254 110
DEFERRED INCOME TAXES 584 421
----------- -----------
TOTAL CURRENT ASSETS 20,513 12,404
PROPERTY AND EQUIPMENT, net 1,758 1,335
OTHER ASSETS 130 60
EQUITY IN UNCONSOLIDATED AFFILIATES 182 355
----------- -----------
TOTAL ASSETS $ 22,583 $ 14,154
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
ACCOUNTS PAYABLE $ 2,044 $ 2,302
ACCRUED EXPENSES AND OTHER CURRENT
LIABILITIES 2,925 1,230
BANK LOAN PAYABLE 4,097 -
INCOME TAXES PAYABLE 430 109
----------- -----------
TOTAL CURRENT LIABILITIES 9,496 3,641
----------- -----------
DEFERRED INCOME TAXES - 96
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 13,087 10,417
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 22,583 $ 14,154
=========== ===========
Contact:
Susan Marshall
Director, Investor Relations
(516) 256-1000 ext. 127 |
