Harland Reports First Quarter Results, Earnings Exceed Expectations
Press release from the issuing company
ATLANTA (April 26, 2001) John H. Harland Company (NYSE: JH) today reported first quarter results and reiterated earnings expectations for the year.
Consolidated net income for the quarter was $10.3 million, or $0.35 per share on a diluted basis, compared to $11.5 million, or $0.40 per share on a diluted basis for the same period a year earlier. Earnings for the first quarter exceeded analyst expectations. Consolidated revenues for the quarter were $191.3 million, an 8.3% increase from the $176.7 million reported in 2000. EBITDA for the quarter was $36.1 million, a 20% increase from $30.1 million for the first quarter of 2000. The company also reduced its long-term debt during the quarter by $30 million.
"Earnings for the first quarter exceeded original expectations despite lower revenue than planned in our printed products and software and services businesses," said Timothy C. Tuff, chairman and chief executive officer of Harland. "Each of our businesses is now positioned to pursue growth opportunities."
Harland reports results for three business segments: Printed Products, Software and Services and Scantron.
Revenue for the quarter from the company's Printed Products segment, which includes checks, direct marketing and business solutions, was $138.8 million, compared to $147.6 million in 2000. Contribution from Printed Products declined 1.9% year-over-year to $24.8 million.
"We have improved the way we produce and deliver check orders for our financial institution customers and continue to develop ways to improve the efficiencies of our customers' checking programs," said Tuff. "Contribution from this segment was down during the quarter due to a decline in direct marketing sales."
Software and Services reported revenues of $29.9 million for the quarter, compared to $6.7 million a year earlier. Software and Services accounted for 15.6% of the company's total revenue for the quarter, compared to 3.8% of the total revenue for the first quarter of 2000. Software and Services reported a pre-tax loss of $1.9 million, compared to a pre-tax loss of $925,000 in 2000. Results reported last year did not include the impact of the acquisition of Concentrex in August of 2000.
"We've made good progress in improving the performance of our software business, and we're now one of the leading providers of software to financial institutions," said Tuff. "Moving forward, you will see us improving the business further and introducing products and services that integrate business intelligence with transaction processing."
Harland's Scantron subsidiary reported revenues of $22.9 million for the quarter, up almost 2% from a year earlier. Scantron also reported strong contribution of $5.3 million for the quarter, up 57.3% from the first quarter in 2000.
"Scantron has always been a strong financial contributor," said Tuff. "We believe that with the increased attention being paid to education on national and state levels, there are now real opportunities for Scantron to build on its strong market position." Scantron is one of the leading brands in education, with a presence in 96% of school districts with more than 10,000 students and 80% of colleges and universities.
The company reiterated its earnings forecast for the year of $1.65 - $1.70 per share, with earnings for the second quarter to be in the range of $0.35 - $0.37 per share.
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