Moore Wallace Posts $650 Million in Sales, $18.9 Million Profit
Press release from the issuing company
MISSISSAUGA, ONTARIO & NEW YORK--July 23, 2003-- Moore Wallace Incorporated today reported financial results for its second quarter ended June 30, 2003. Second quarter sales totaled $650.1 million with GAAP (Canadian Generally Accepted Accounting Principles) net earnings of $18.9 million, or $0.14 per diluted share for the second quarter.
The Company believes that certain non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful because management believes that information that excludes acquisition related charges, restructuring and restructuring related charges and gains on asset disposals is an appropriate measure for evaluating the Company's operating performance. Internally, the Company uses this non-GAAP information as an important indicator of business performance and management's effectiveness is evaluated with specific reference to these indicators. A reconciliation of GAAP net earnings to non-GAAP net earnings for these adjustments is presented in the tables below. These measures should be considered in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles.
Non-GAAP net earnings were $27.0 million, or $0.20 per diluted share. Non-GAAP net earnings include a $65.3 million adjustment on a before-tax basis. The adjustment includes $61.5 million for acquisition related items and $3.8 million in restructuring and restructuring related charges.
On May 15, 2003, the Company acquired all of the outstanding shares of Wallace Computer Services, Inc., a leading provider in comprehensive print management solutions. The differences in the operating results of the Company in 2003 versus 2002 are primarily due to this acquisition.
GAAP income from operations was $8.5 million, or 1.3% of sales. These results were unfavorably affected by acquisition related items and restructuring actions taken as a result of the merger. Non-GAAP income from operations was $51.0 million, or 7.8% of sales. These results reflect improved operating performance across all business segments primarily due to continued focus on cost containment, productivity enhancements, purchasing synergies and early benefits achieved as a result of reducing redundant corporate and administrative functions subsequent to the acquisition of Wallace.
GAAP net earnings of $18.9 million for the second quarter benefited primarily from the reduction of the Company's remaining U.S. tax valuation allowance. Non-GAAP net earnings of $27.0 million reflects the Company's expected effective income tax rate of 32%.
Mark A. Angelson, Moore Wallace's Chief Executive Officer, noted, "Even in an uncertain global economy, our business units exceeded our profit and cash flow targets. Following our merger with Wallace Computer Services, Inc., we executed our business plan and have seen the early benefits in our operating results. We continue to believe that our fundamentals and prospects for earnings growth remain strong. For the full year 2003, we now expect non-GAAP earnings per share for Moore Wallace to be approximately $0.93 cents per diluted share."
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