Global Imaging Systems' Third Quarter Net Income Reaches $8,911,000
January 22, 2003 08:27:00 AM ET
Third Quarter Revenues Up 12 Percent; EPS Again Tops Analyst Consensus
TAMPA, Fla., Jan. 22 /PRNewswire/ -- Global Imaging Systems, Inc. GISX today announced record-high third quarter revenues; earnings before interest, income taxes, depreciation and amortization (EBITDA); net income and earnings per share for the three months ended December 31, 2002.
For the quarter, net income increased 25 percent to $8,911,000 compared with third quarter net income a year ago of $7,151,000. Earnings per share were 42 cents per basic share (41 cents diluted) on higher average shares outstanding, primarily as a result of a follow-on stock offering in February 2002. The company reported EPS of 39 cents per basic and diluted share for the third quarter a year ago. EBITDA increased seven percent to $23,044,000 compared with $21,517,000 for the corresponding period of the prior year. Revenues increased 12 percent to $169 million from $151 million in the third quarter last year.
For the nine months ended December 31, 2002, net income was up 29 percent to $25,095,000 from $19,385,000 a year ago. EPS was $1.19 per basic share ($1.16 diluted) versus $1.07 per basic share ($1.05 diluted) for the first nine months of fiscal 2002. EBITDA increased eight percent to $67,192,000 compared with $62,029,000 for the corresponding period of the prior year. Revenues increased six percent to $496 million from $467 million in the first nine months last year.
Tom Johnson, president and CEO of Global Imaging Systems, said, "Again, our employees and managers executed extremely well in the face of a continuing soft economy. We never wavered in our focus on the middle market and in our passion about customer productivity. As a result, our internal revenue growth for automated office equipment (primarily copiers), which accounts for about 70 percent of Global's business, continues to show quarter-to-quarter improvement. This internal revenue growth rate was one percent in the March quarter -- the lowest in our history, three percent in the June quarter, four percent in the September quarter and 10 percent in the most recent December quarter. Our technology systems (non-copier) business reported a 15 percent negative internal growth rate in the December quarter, reflecting general reluctance in IT spending that continued through November and December. Our combined internal revenue growth rate was two percent for the latest three months."
Mr. Johnson said, "I am pleased with our financial performance and, while not obvious in our recent financial results, we continue to execute on our other strategic objectives. We have:
1.) Met or exceeded the analysts' consensus earnings-per-share estimates for eight consecutive quarters,
2.) Substantially improved our balance sheet with our long-term debt reduced to 49 percent of total capitalization,
3.) Reduced the overhang from shares held by our founding venture capitalists from more than 7,000,000 shares to about 400,000 shares today,
4.) Started to see the payoff from our sales team expansion aimed at coming out of the recession stronger than our competition,
5.) Transitioned our board of directors to a more balanced composition, replacing two venture capitalist members with two independent outside directors,
6.) Strengthened our senior management team with the addition of a senior vice president of sales and a senior vice president and chief operating officer, and
7.) Been added to Standard & Poor's Small Cap 600 index."
Looking forward, Mr. Johnson said, "With our continuing execution and tight controls, we now feel that earnings per share for the fiscal year should come in near the top or slightly above the $1.52-$1.57 range that we provided three months ago. We plan to continue our disciplined acquisition program, targeting both core and satellite automated office equipment businesses that fit our geographic, performance and pricing criteria."
The company's third quarter conference call is scheduled for this morning, January 22, at 10:00 a.m. ET. You may access the call through a live webcast by using the link provided on the company's Internet home page at www.global-imaging.com. The webcast will be archived and available through February 5 on the company's website. The quarterly report on Form 10-Q will also be posted promptly after filing with the SEC.
Global Imaging Systems offers thousands of middle-market customers a one- stop shop for office technology solutions from 140 offices in 27 states and the District of Columbia. The company provides a broad line of office technology solutions including the sale and service of automated office equipment, network integration services and electronic presentation systems. The company is also a disciplined, profitable consolidator in the highly fragmented office technology solutions industry.
This news release contains forward-looking statements and statements based on forward-looking information, including statements relating to Global's expected future earnings and earnings per share, future growth rates, future expenses, the future results of our sales force expansion, future cash flows, the future performance of Global's market, and general economic conditions. These statements are based on numerous assumptions and are subject to uncertainties and risks. Actual results could differ materially. Factors that might cause Global's results to differ materially include risks relating to downturns in or the slow pace of recovery in the economy; rising interest rates or restricted access to debt financing; Global's debt and debt service obligations; the challenge of integrating acquired businesses; the need for funding acquisitions; Global's ability to close acquisitions in a timely and cost-effective manner; the need for skilled employees; rapid technological change in Global's industry; dependence on suppliers; and high levels of competition. Most of these risks are discussed in more detail under the caption "Risk Factors" in Global's annual report on Form 10-K/A for the year ended March 31, 2002.
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