Global Imaging Results Set Records for Fiscal First Quarter7 Aug, 2006
Global Imaging Results Set Records for Fiscal First Quarter
TAMPA, FL - Global Imaging Systems, Inc. has 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
* 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."