GLOBAL IMAGING RESULTS SET RECORDS FOR FISCAL FIRST QUARTER
Revenues up 7.6 Percent and Operating Income up 10.6 Percent from Year-Ago Quarter
TAMPA, Fla., August 1/PRNewswire/ -- Global Imaging Systems, Inc. (Nasdaq: GISX) today announced record results for its fiscal first quarter ended June 30, 2006. Highlights of the quarter:
-
Revenues, operating income, net income and earnings per share set new first-quarter records.
-
Revenues increased 7.6 percent to $264.9 million.
-
Automated office equipment, primarily copiers, continued to post positive
-
internal revenue growth for the 32nd consecutive quarter.
-
Operating income grew 10.6 percent to $29.8 million.
-
Net income was up 6.6 percent to $15.6 million.
-
Adjusted EBITDA increased 9.4 percent to $34.3 million.
-
Diluted earnings per share were $0.61, up 5.2 percent after absorbing approximately three cents per share in charges for the early extinguishment of debt and the impact of adopting Statement of Financial Accounting Standards 123(R), Share-Based Payment.
-
Completed the recasting of the company’s capital structure, which included redeeming and converting $57.5 million of convertible notes into common stock and closing on a new senior credit facility with more flexible terms that lowered interest rates and allowed the company to continue a previously authorized $150 million, three-year stock repurchase program.
-
Repurchased 311,200 shares of common stock for a total price of approximately $12.5 million.
-
Paid down an additional $25 million in debt, bringing debt to 26.0 percent of total capital.
-
Completed two acquisitions, acquiring $16.4 million in annualized revenue.
Tom Johnson, chairman and CEO of Global Imaging Systems, said, “We thank our 4,400 employees and our management team for another outstanding performance, and all of our loyal customers for continuing to allow us to share our passion for office productivity.”
He added, “Following a quarter of solid financial results, we announced a two-for-one stock split payable August 15, 2006 to shareholders of record on August 1, 2006. Our shares will begin trading on a split-adjusted basis on August 16.”
Michael Shea, president and COO of Global Imaging Systems, said, “We continue to see positive results from our ongoing efforts in management development and training at our operating companies. We remain focused on these fundamentals as well as on our continued sharing of best practices and our relentless efforts on customer service and customer retention.” He added, “The most profitable portion of our business -- service and supplies -- grew nine percent during the quarter.”
For the fiscal 2007 second quarter, Mr. Johnson said, “We continue to see both internal and external growth opportunities in our marketplace. Total revenue, including acquisitions to date but not potential future acquisitions, should grow in the six to nine percent range. Despite softer than expected internal growth in our first quarter -- two percent for automated office equipment and seven percent for our technology business for a combined increase of three percent -- we expect our internal revenue growth in the second quarter to be in the range of four to six percent. At the same time, our acquisition program’s external growth goal for fiscal year 2007 is to acquire $60 to $100 million in annualized revenue. Diluted earnings per share, on a split-adjusted basis, should be in the range of 32 to 34 cents. This would compare with split-adjusted diluted EPS of 30 cents (61 cents as originally reported) for the corresponding quarter last year.”
The company’s first quarter conference call is scheduled for this morning, August 1, at 10:00 a.m. ET, and the company’s second quarter 2007 conference call is scheduled for October 26, 2006 at 10:00 a.m. ET. You may access the calls through live webcasts by using the link provided on the company’s Internet home page at www.gisx.com. The webcasts will also be archived and available on the company’s website.
About Global Imaging Systems
Global Imaging Systems offers thousands of middle-market customers a one-stop solution for office technology needs in 32 states and the District of Columbia. The company provides a broad line of office technology solutions including the sale and service of copiers and other 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 press release includes presentations of earnings before interest, taxes, depreciation and amortization ("EBITDA") and adjusted EBITDA. Adjusted EBITDA represents EBITDA adjusted for the loss on early extinguishment of debt. EBITDA is a measure commonly used by the capital markets to value enterprises. Interest, taxes, depreciation and amortization can vary significantly between companies due in part to differences in accounting policies, tax strategies, levels of indebtedness and interest rates. Excluding these items provides insight into the underlying results of operations and facilitates comparisons between Global and other companies. EBITDA is also a useful measure of the company’s ability to service debt and is one of the measures used for determining debt covenant compliance. Management believes EBITDA and adjusted EBITDA information is useful to investors for these reasons. Both EBITDA and adjusted EBITDA are non-GAAP financial measures and should not be viewed as an alternative to GAAP measures of performance. Management believes the most directly comparable GAAP financial measure is net income and has provided a reconciliation of EBITDA and adjusted EBITDA to net income in this press release.
This news release contains forward-looking statements and statements based on forward-looking information, including statements relating to Global’s expected future acquisitions, future revenue growth and future diluted earnings per share. These statements include the words “expect,” “believe,” “should,” variations of such words, “we are optimistic” and similar expressions which are intended to identify such forward-looking statements. 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 changes in the overall economy; rising interest rates; 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 for the year ended March 31, 2006.
Click on the following link to view the Consolidated Financial Report
-0-
/CONTACT: Tom Johnson, Chairman and CEO, Michael Shea, President and COO, Ray Schilling, Executive Vice President and CFO, Global Imaging Systems, Inc., 813/960-5508 or Investor Relations Consultants, Inc., 727/781-5577 or E-mail: gisx@mindspring.com/
