IKON Announces Preliminary Results for the Second Quarter of Fiscal 2005
Press release from the issuing company
MALVERN, Pa.--April 28, 2005-- IKON Office Solutions, the world's largest independent channel for document management systems and services, today reported preliminary financial results for the second quarter of fiscal 2005. The company noted that the results are subject to completion of the internal review of billing controls and reserve practices for trade accounts receivable described in its April 21, 2005 press release and in its report on Form 8-K filed with the Securities and Exchange Commission on April 28, 2005.
IKON reported preliminary second quarter results from continuing operations of $.08 earnings per diluted share, which includes charges related to restructuring and asset impairments, a net gain on the divestiture of businesses, real estate charges incurred as the company reduces the number of its locations, and a loss from the early extinguishment of debt. Excluding these charges and charges related to the pending review of its accounts receivable and related reserves, preliminary second quarter results from continuing operations were $.15 per diluted share, consistent with previously communicated expectations. The company also reported that operating cash flow for the quarter exceeded management's expectations, as the company ended the quarter with an unrestricted cash balance of $333 million.
Losses from discontinued operations, representing IKON's Business Document Services unit which was exited in the quarter, were $.06 per diluted share, including charges related to exit costs. Total earnings per diluted share were $.02 for the quarter.
IKON anticipates that it will report fiscal 2005 results from continuing operations that are consistent with its previously communicated expectations of earnings per diluted share in the range of $0.63 to $0.68, although at the low end of that range, again excluding the impact of the charges described above and the pending accounts receivable and related reserves review.
IKON's Board of Directors approved the company's regular quarterly cash dividend of $.04 per common share, payable on June 10, 2005 to holders of record at the close of business on May 23, 2005.
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