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Banta to Take Q4 Charge of $26.8 Million, Includes Content Management Product

Friday, December 20, 2002

Press release from the issuing company

Dec. 19 -- Banta today announced that its fourth quarter results will include a non-cash impairment charge related to asset valuations, in accordance with accounting guidelines. As a result, Banta will take a pretax charge of $26.8 million (64 cents per diluted share) in the fourth quarter ending Dec. 28, 2002. The impairment charge includes a reduction in the asset carrying value of Banta's digital content management software product. The valuation adjustment is based on an analysis of future revenue expectations for the product. The charge also includes impairment of an investment in a Mexican joint venture, a reduction of goodwill associated with a past acquisition, and updated valuations on other long-lived assets. "It is important to understand that this non-cash charge in no way affects Banta's operations, which continue to perform extremely well in a challenging economic environment," notes Stephanie A. Streeter, president and chief executive officer. "Banta's balance sheet remains one of the healthiest in our industry with a debt to total capitalization of 23 percent. Our significant borrowing capacity and strong cash flow give us exceptional financial flexibility and the ability to aggressively invest in future growth opportunities. Excluding this charge, there is no change to the full-year 2002 earnings guidance that we provided in our third quarter earnings release. There is also no change in our commitment to continue our focus on cost controls and examining ways to assure we maintain a proper balance between our production capacity and revenue expectations going forward." Banta will release its fourth quarter and year-end sales and earnings on Jan. 28, 2003. A conference call will be held at 2:45 p.m. Central time on Jan. 28 to discuss Banta's financial results.

 

 

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