ATLANTA (January 30, 2001) -- John H. Harland Company (NYSE: JH) today announced strong fourth-quarter and year-end operating results.
"It was a very solid quarter, and a year in which much progress was made," said Timothy C. Tuff, chairman and chief executive officer of Harland. "All segments delivered better operating results than in the previous year, and the successful integration of Concentrex into Harland resulted in significantly less dilution than expected. We believe that further improvements are attainable in 2001 in all business units."
Harland reported net income for the quarter of $201,000, or basic and diluted earnings per share of $0.01, compared to $10.2 million, or basic and diluted earnings per share of $0.35 and $0.34 respectively in 1999. Revenue for the quarter was $192.5 million, up 12.2 percent from the $171.6 million reported in 1999. Excluding special items and dilution of $0.07 per share from the acquisition of Concentrex, diluted earnings per share would have been $0.36. Special items included previously announced fourth-quarter charges totaling $14.5 million ($11.0 million net of tax), or $0.38 per share, stemming from severance-related expenses and write-down of certain intangible assets, and a gain of $0.10 per share on the sale of an investment.
For the year, Harland earned $28.7 million, or basic and diluted earnings per share of $1.01 and $1.00, respectively. In addition to the fourth-quarter one-time events, earnings for the year were negatively impacted $0.28 per share from acquired in-process research and development costs. Excluding special items and dilution of $0.10 per share from the acquisition of Concentrex, diluted earnings per share would have been $1.66, an increase of 21 percent from the $1.37 reported in 1999. Revenue increased 2.6 percent in 2000 to $720.7 million from $702.5 million in 1999.
"Our Printed Products business benefited from plant consolidation and cost reductions," said Tuff. "We expect to achieve further improvements from technology upgrades, such as the expanded use of digital technology in our production facilities, and improved processes."
Among the most significant events for the company in 2000 was the acquisition of Concentrex, Inc., which solidified Harland's position as one of the leading providers of software to the financial institution market. According to Tuff, Concentrex was clearly a turnaround when it was acquired by Harland, but the acquisition was less dilutive than anticipated and has shown significant progress.
"We have already seen improvements in operations as a result of introducing greater bottom-line accountability," he said. "We believe that we'll be able to develop a number of competitive advantages in this segment and strengthen our position as one of the leading providers of software to the financial institution market."
Scantron Corporation delivered stronger operating results for both the quarter and the year. The company's scanning division set new records in 2000, and its survey business also grew during the year.
"Scantron continues to be a predictable deliverer of excellent results," said Tuff. "We're proud of the record year in scanning and the growth of the surveys business. We believe that we'll be able to achieve profitable growth in this part of our business, as well."
"We've done a good job improving the bottom line in each part of our business and believe we'll achieve even more improvements this year," said Tuff. "With our businesses running better, we're now able to focus more attention on improving top-line growth."
The company expects 2001 earnings per share to be in the range of $1.65 - $1.70.
Harland will hold a conference call today at 10:00 am EST to discuss the results of the quarter and future outlook. Interested parties may listen in by accessing a live webcast on Harland's website at www.harland.net. A replay will also be available on Harland's website after the call.
Harland's board of directors declared a quarterly dividend of 7.5 cents per share, payable March 1, 2001 to shareholders of record as of February 15, 2001
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