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Moore Announces Strong Fourth Quarter And Full Year 2002 Results

Thursday, February 13, 2003

Press release from the issuing company

MISSISSAUGA, Ontario & STAMFORD, Conn.-Feb. 12, 2003--Moore Corporation Limited today announced improved results for the fourth quarter and full year ended December 31, 2002. For the fourth quarter of 2002 the Company reported GAAP (Canadian Generally Accepted Accounting Principles) net earnings of $28.0 million, or $0.24 per share, versus a GAAP net loss of $99.4 million, or $(1.11) per share, for the same period in 2001. GAAP operating income was $29.4 million versus GAAP operating loss of $59.7 million in 2001. Normalized net earnings for the fourth quarter of 2002, exclusive of an executive separation charge ($9.2 million), and the net recovery of restructuring costs of $0.8 million, at the Company's expected income tax rate of 30%, would be $22.3 million, or $0.20 per share. This compares favorably to normalized net earnings of $6.5 million, or $0.07 per share, in 2001. Normalized net earnings and earnings per share for 2001 exclude the impact of restructuring and other charges. Management believes the normalized results are indicative of underlying operations and provide investors with additional means of comparing results. As required by a new accounting standard relating to goodwill and other intangible assets, effective January 1, 2002, goodwill is no longer amortized. If amortization relating to existing goodwill amortization prior to the adoption of the standard had been recorded, fourth quarter 2002 GAAP net earnings would have been $0.6 million lower or $27.4 million. Net sales for the fourth quarter were $522.0 million compared to $537.2 million in 2001. The revenue decline resulted from the fourth quarter 2001 divestiture of Phoenix; volume declines in the prepaid telephone card market; the decision to exit certain unprofitable products in the Forms and Labels business; and the devaluation of certain foreign currencies, partially offset by the 2002 acquisitions. The Company's fourth quarter 2002 normalized income from operations was $37.8 million (GAAP operating income excluding executive separation and restructuring recovery) versus $15.3 million in 2001. This improvement resulted from continued focus on cost containment, productivity enhancements, purchasing synergies, IT savings, waste reduction initiatives and operational efficiencies. Normalized EBITDA (normalized operating income plus depreciation and amortization) increased to $58.9 million in the fourth quarter 2002 versus normalized EBITDA of $39.9 million in the same period last year as the Company continued to generate strong cash flow. The Company's normalized free cash flow (normalized EBITDA less cash paid for interest, taxes, dividends, and capital expenditures) continued to show improvement as the Company generated positive free cash flow in the fourth quarter 2002 of $39.5 million versus normalized free cash flow of $20.8 million in the fourth quarter 2001. This marks the eighth consecutive quarter of improved free cash flow as management continued its focus on cash generation and strategic capital spending. For the year ended December 31, 2002, the Company reported GAAP net earnings of $73.3 million, or $0.64 per share, versus a GAAP net loss available to common shareholders of $373.3 million, or $(4.21) per share, for the same period in 2001. 2002 GAAP operating income was $102.5 million versus 2001 GAAP operating loss of $342.3 million. If pre-existing goodwill amortization expense had been recorded for the year ended December 31, 2002, GAAP net earnings would have been $2.2 million lower or $71.1 million. Normalized income from operations for the year ended December 31, 2002, was $110.9 million (GAAP operating income excluding executive separation and restructuring recovery) which compares favorably to $32.3 million in 2001, a $78.6 million, or 243% increase. Normalized EBITDA for the year ended December 31, 2002 was $197.7 million, an increase of $57.7 million versus normalized EBITDA of $140.0 million for the same prior year period. The Company's normalized free cash flow for the year ended December 31, 2002, was $143.9 million versus normalized free cash flow of $59.3 million last year. Summary of Fourth Quarter Results * Sales in the fourth quarter 2002 of $522.0 million compared to sales of $537.2 million in the fourth quarter 2001. * GAAP net earnings for the fourth quarter 2002 was $28.0 million or $ 0.24 per share compared to a GAAP net loss available to common shareholders of $99.4 million or $(1.11) per share for fourth quarter 2001. * GAAP income from operations of $29.4 million in the fourth quarter 2002, compared to GAAP loss from operations of $59.7 million for the same period in 2001. Summary of Full Year Results * Sales for the year ended 2002 of $2.04 billion compared to sales of $2.15 billion for 2001. * GAAP net earnings for the year ended 2002 was $73.3 million, or $0.64 per share, compared to a GAAP net loss available to common shareholders of $373.3 million for the same period last year. * GAAP income from operations of $102.5 million for the year ended 2002 compared to $342.3 million GAAP loss from operations for 2001.

 

 

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