Reynolds Earnings Growth Flat in Last Quarter
Wednesday, January 24, 2001
DAYTON, Ohio, –The Reynolds and Reynolds Company (NYSE: REY) today reported revenues of $243.5 million for the quarter ended Dec. 31, 2000, an increase of 10 percent over the prior year. Income from continuing operations of $23.9 million was 5 percent lower than a year ago, primarily due to higher research and development costs which totaled 17 cents per share in the quarter, compared to 11 cents per share in the prior year. Earnings per share were 32 cents, equal to the prior year. Commenting on the quarterly results, President and CEO Lloyd "Buzz" Waterhouse said, "We completed a solid quarter with 10 percent revenue growth and strong profitability. We continued to aggressively invest in research and development in order to drive long-term growth in customer relationship management (CRM) and retail management systems. "We significantly strengthened our lineup of CRM solutions with the acquisition of DealerKid, an eCRM software and services provider for automotive retailers, and the announcement we made yesterday of our equity interest in Networkcar which has developed the industry’s most advanced wireless-enabled CRM capability," said Waterhouse. "CRM represents a significant spend by car companies and automotive retailers. In response, we have built the industry's most advanced and comprehensive set of solutions with strong brands like Automark, CyberCar, AutoNotice, DealerKid and Networkcar. "This combination of solutions is generating strong momentum in the marketplace as evidenced by the agreement announced last week to provide customized Web sites and training services to the Asbury Group's 120 dealerships across the United States," said Waterhouse. During the quarter, the company repurchased 2.5 million shares at an average price of $19.37 per share. Approximately 3.7 million shares remain authorized for repurchase. "We believe that share repurchase is an excellent use of capital and will drive long-term shareholder value," Waterhouse said. For the second quarter of fiscal 2001, the company expects earnings per share to be in the range of analyst estimates of 32 cents per share, compared to 29 cents per share in the prior year.