PALM BEACH, Fla., June 18-- Workflow Management, Inc. the nation's leading outsourcer of print and office consumables today reported results for the fourth quarter and fiscal year ended April 30, 2001 in-line with previously announced guidance.
Workflow Management reported revenues for the fourth quarter of $157.0 versus $158.4 million for the same period last year. Fourth quarter operating income, before one-time charges, was $7.3 million versus $10.9 million. Net income, before one-time charges, was $2.7 million or $0.21 per diluted share, compared to $4.5 million or $0.32 per diluted share for the corresponding period in fiscal 2000.
During the quarter, the Company posted a one-time charge related to management's aggressive operational consolidation program. This one-time charge totaled $8.3 million and is expected to deliver approximately $5.0 million in annual savings. Additionally, the Company incurred $1.7 million in costs associated with concluding its effort for a public offering of its iGetSmart.com subsidiary.
Tom D'Agostino, Sr., Chairman and CEO commented, "We are pleased to be able to report results for the quarter that met our previously announced expectations, but more importantly, we took some significant steps over the past few months to restructure our business and streamline operations. We have reorganized the company to benefit from extensive SG&A cost cutting initiatives and an overall operational consolidation program, both of which should allow us to more efficiently run our business this year and beyond.''
"We were also pleased to report the first profitable quarter for our iGetSmart.com subsidiary,'' stated Mr. D'Agostino. "We believe iGetSmart.com represents a potentially powerful growth vehicle and margin enhancer, and we are confident it will become a meaningful contributor to our revenues and profitability.''
For the fiscal year ended April 30, 2001, revenues increased 10.3% to $603.3 million versus $547.1 million in fiscal 2000. Operating income, before one-time charges, was $29.5 million versus $38.7 million. Net income, before one-time charges, was $9.8 million or $0.75 per diluted share, compared to $15.9 million or $1.15 per diluted share for the year ended April 30, 2000.
Mr. D'Agostino, continued, "Fiscal 2001 was a challenging period for us due primarily to difficult economic and market conditions; however, it was also marked by a number of significant accomplishments. We reported record revenues for the year, which underscores our ability to continually take market share despite a tough environment. Furthermore, we completed a series of accretive acquisitions and made substantial investments that have helped to create a superior platform on which to grow into the future.''
Mr. D'Agostino concluded, "We enter fiscal 2002 invigorated, streamlined and focused on capitalizing on the many opportunities that lie ahead. We are dedicated to executing on a strategy that will result in long-term growth and increased shareholder value.''
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