PROG
Programmer's Paradise, Inc. Reports 1998 Fourth Quarter and Year End Financial Results
SHREWSBURY, NJ--(BUSINESS WIRE)--Jan. 28, 1999 -
- Company Achieves Record Sales and Earnings in Fourth
Quarter;
Results Exceed Analysts' Expectations -
Programmer's Paradise(r), Inc. (Nasdaq: PROG) today reported
results for the fourth quarter and year ended December 31, 1998, which
exceeded analysts' estimates.
Net sales for the fourth quarter ended December 31, 1998
increased 24% to $76.0 million, as compared to $61.2 million, reported
in the fourth quarter of 1997. Operating income for the fourth quarter
increased 15% to $2.5 million, as compared with operating income of
$2.2 million in 1997. Net income for the fourth quarter was $1.7
million, or $0.32 per share, as compared to $1.4 million, or $0.26 per
share in 1997, an increase of 23% on earnings per share.
Net sales for the year ended December 31, 1998 increased 33% to
$234 million, as compared to $176 million for the year ended December
31, 1997. Net income for the period amounted to $3.4 million, or $0.66
per share, as compared to net income of $4.0 million, or $0.75 per
share in 1997.
Bill Willett, Chairman and Chief Executive Officer of
Programmer's Paradise, commented, "We are pleased to report our fourth
quarter and fiscal year results, which continue to demonstrate solid
performance in all of our business channels. As we commented earlier
in the month, our Internet business has grown year-over-year by 490%.
We recently enhanced our web site and have dramatically increased both
product selection and product content, in fact, during the past week
our number of unique viewers has increased by 11% and we have seen an
18% increase in revenue run-rates. To date, we have co-branded seven
on-line web stores as part of our focused approach to Internet
expansion. We will continue to expand and develop this most important
channel as we go forward in 1999.
"Our catalog channel has continued to post year-over-year and
quarter-over-quarter increases and acts as a catalyst to stimulate our
Internet sales. We have increased product listings, product content
and improved advertising display ads. These actions, along with more
targeted circulation, has had a positive effect on catalog
productivity.
"In North America, our business increased 17% in the quarter.
This growth was the result of increased catalog sales, improved direct
sales, and an exclusive distribution agreement with Symantec for their
Visual Cafe upgrade, which was launched in November. Looking forward,
we will continue to aggressively pursue additional distribution
partners as we enter into what should be a fairly robust period for
new and upgrade product releases.
"In Europe, I am especially pleased to report that in the fourth
quarter, all operating subsidiaries were profitable for the first
time. Overall revenues for the quarter grew 27%, led by our Dutch
subsidiary, Logicsoft Holding BV, which posted a 65% revenue increase
and our German subsidiary, ISP*D, which posted a 17% increase in the
quarter. The performance of our Dutch subsidiary was outstanding and
this continues to exemplify the extraordinary business potential for
Europe as a whole.
"We have achieved several significant milestones in the past six
months and we are very optimistic about our business as we begin 1999.
We feel our Internet expansion strategy is on point, representing
significant growth opportunities ahead. With concerted efforts to
expand Corporate Outbound telemarketing and improved reseller
performance, while at the same time maintaining a focused effort to
further reduce costs, we believe that we will achieve our targets for
1999," concluded Mr. Willett.
Programmer's Paradise(r),Inc. is an international marketer of
software targeting the software development professional and
information technical professionals within enterprise organizations.
Programmer's enhances software development productivity by providing a
single-source for software development tools from industry-leading
vendors selected on the basis of features, quality, price and
warranty. The Company offers over 35,000 SKUs from more than 2,000
publishers and manufacturers, and distributes these products through
multiple distribution channels. Programmer's Paradise Web site is
www.pparadise.com. Bill Willett can be e-mailed at
bill.willett@programmers.com.
The statements in this release concerning the Company's future
prospects are forward-looking statements that involve certain risks
and uncertainties. Such risks and uncertainties include the continued
acceptance of the Company's distribution channel by vendors and
customers, the timely availability and acceptance of new products, and
contribution of key vendor relationships and support programs.
- Tables Follow -
PROGRAMMER'S PARADISE(R), INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Twelve
Months Months
Ended Ended
December 31, December 31,
(Unaudited) (Audited)
1998 1997 1998 1997
Net sales $ 75,995 $ 61,236 $ 234,429 $ 176,157
Cost of sales 66,534 53,057 205,241 150,452
Gross profit 9,461 8,179 29,188 25,705
SG&A expenses 6,716 5,741 22,682 18,574
Amortization 243 253 979 914
Income from operations 2,502 2,185 5,527 6,217
Interest income, net 77 43 294 212
Unrealized foreign
exchange gain (loss) (11) 26 62 (58)
Income before taxes 2,568 2,254 5,883 6,371
Provision for taxes 903 873 2,441 2,407
Net income 1,665 1,381 3,442 3,964
Basic net income per common
share $ 0.35 $ 0.29 $ 0.72 $ 0.84
Diluted net income per common
share $ 0.32 $ 0.26 $ 0.66 $ 0.75
Weighted average number of
common shares outstanding- 4,772 4,750 4,797 4,740
basic
Weighted average number of
common shares outstanding- 5,237 5,348 5,249 5,280
diluted
PROGRAMMER'S PARADISE(R), INC.
CONSOLIDATED BALANCE SHEETS
(Audited)
(In thousands)
December December
31, 1998 31, 1997
ASSETS
Current Assets:
Cash and cash equivalents $ 21,167 $ 20,571
Trade accounts receivable 53,002 38,517
Inventory 5,335 4,627
Prepaid expenses and
other current assets 2,925 2,561
Deferred tax asset 1,988 1,619
Total Current 84,417 67,895
Assets
Furniture and equipment 2,317 1,862
Deferred income taxes 1,262 1,719
Other assets 1,286 707
Goodwill 15,595 14,185
Total Assets $ 104,877 $ 86,368
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Notes payable to banks $ 674 $ 958
Accounts payable and
accrued expenses 58,064 46,976
Other current liabilities 7,993 3,881
Total Current
Liabilities 66,731 51,818
Notes payable - long term 1,761 2,220
Other liabilities 144 117
Total Liabilities 68,636 54,155
SHAREHOLDERS' EQUITY
Common Stock 50 48
Additional Paid-in-capital 34,278 33,633
Treasury stock (545) (343)
Retained earnings / (deficit) 3,186 (256)
Cumulative foreign currency
translation adjustment (728) (869)
Total Shareholders'
Equity 36,241 32,213
Total Liabilities and
Shareholders'Equity $ 104,877 $ 86,368
CONTACT:
Bill Willett
Programmer's Paradiser, Inc.
Chairman and Chief Executive Officer
732/389-8950
bill.willett@programmers.com
or
Investor Relations:
Morgen-Walke Associates
Donna Stein, Cindy Reid, Jill Meleski
212/850-5600
Press Relations:
Eileen King
Morgen-Walke Associates
212/850-5600
KEYWORD: NEW JERSEY
BW1116 JAN 28,1999
5:32 PACIFIC
08:32 EASTERN |
