Merrill Corporation Announces Q2 Earnings: Revenue/Net Income Down
Wednesday, September 17, 2003
ST. PAUL, Minn., Sept. 15 -- Merrill Corporation, a global, diversified communications and document services provider, today announced net earnings for the fiscal second quarter ended July 31, 2003. Net income for the quarter ended July 31, 2003, was $2.7 million, compared to $5.2 million for the same period in the prior fiscal year. Income before income taxes was comparable at $5.7 million for the quarter ended July 31, 2003, versus $6.0 million for the same period in the prior fiscal year. Revenue in the second quarter was $153 million, a decrease of $9 million or 6 percent from the comparable prior year's quarter. The revenue decrease was largely due to the continued weakness in capital markets and the economy. Both financial transaction and investment company compliance printing revenues were adversely affected. On the positive side, revenues continue to grow in Merrill's Real Estate, Brand Management and Document Management Services markets. "We remain dedicated to controlling costs and leveraging resources to minimize the impact of the current weak revenue environment," said John Castro, CEO of Merrill Corporation. "During the second quarter, financial printing revenues remained weak, as did the overall economy. Nevertheless, we continued to identify and capitalize on growth opportunities in our diversified businesses." Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the fiscal quarter ended July 31, 2003, was $17.7 million, representing a 12 percent decrease from the $20.2 million generated in the prior year's fiscal second quarter. Revenue for the six months ended July 31, 2003 was $307 million, a decrease of $14 million or 4 percent from the first six months in the prior fiscal year. Net income for the six months ended July 31, 2003 was $6.2 million, compared to $ 8.3 million for the first six months in the prior fiscal year. EBITDA for the six months ended July 31, 2003 was $38.0 million, a 5 percent decrease from the $40.0 million in the prior fiscal year's first six months.