Workflow Management Reports 2002 Results, iGetSmart Performance Up 51%
Press release from the issuing company
PALM BEACH, Fla.--June 6, 2002--Workflow Management, Inc., the nation's leading outsourcer of print, today reported results for the fourth quarter and fiscal year ended April 30, 2002.
Fourth quarter revenues for the period ended April 30, 2002 increased 4.1% to $163.4 million compared to $157.0 million last year. Revenues in the Solutions Division increased 3.5% to $80.3 million, while revenues in the Printing Division increased 2.8% to $86.3 million. Fourth quarter operating income was $8.0 million compared to $7.3 million last year before one-time charges. Net income was steady at $2.7 million, or $0.21 per diluted share, versus net income of $2.7 million, or $0.21 per diluted share, in the prior year fourth quarter before one-time charges and extraordinary items. Adjusted for the implementation of FAS 142, which discontinued the amortization of goodwill, fourth quarter diluted earnings per share would have been $0.24 in the prior year.
Tom D'Agostino, Sr., Chairman and CEO commented, "We are pleased that our cost cutting measures and strategic initiatives contributed to the positive results we were able to generate during this challenging year for Workflow and we are particularly pleased given the economic uncertainty. In addition, our financial results benefited from the significant steps taken over the past year to restructure our business and streamline operations."
Mr. D'Agostino continued, "Despite the challenges of the past few quarters, including significant margin pressure in the Printing Division, our diverse revenue and large customer base reflects our ability to manage the business more effectively, thereby producing stable profitability regardless of lower margin levels. Furthermore, the success in the Solutions Division, specifically the revenue growth of iGetSmart, has enabled us to build on our outsourcing leadership position through advanced technology. The Solutions Division and iGetSmart addressed the highest priorities of our customers during the year, enabling them to focus on their core business and manage their printing related costs."
For the fiscal year ended April 30, 2002, revenues increased 6.1% to $640.1 million versus $603.3 million in fiscal 2001. Operating income, was $29.1 million versus $29.5 million before one-time charges. Net income for the year ended April 30, 2002, was $9.2 million or $0.70 per diluted share, compared to $9.8 million or $0.75 per diluted share before one-time charges and extraordinary items. Adjusted for FAS 142, fiscal 2001 diluted earnings per share would have been $0.87.
Mr. D'Agostino remarked, "We are proud that the Company was able to report record revenues and achieve the revised earnings guidance of $0.70 per share for fiscal 2002, while overcoming one the most challenging years in our nation's and the Company's history."
Commenting on iGetSmart, Mr. D'Agostino continued, "We are pleased to report that the revenues flowing through the iGetSmart solution are on the rise, exceeding our internal expectations. Total revenues managed by the system for fiscal 2002 increased 51.8% to $185.9 million up from $122.5 million in fiscal 2001. Furthermore, the growth of business flowing over the iGetSmart system in fiscal 2002 surpassed the 4-year CAGR of 47.8%. This dramatic increase in revenue growth for our iGetSmart solution of $63.4 million in system managed revenues is evidence that technology is becoming a powerful tool for companies looking to outsource the entire print procurement, distribution and billing process."
Mr. D'Agostino concluded, "We enter fiscal 2003 prepared to exploit our operating leverage with an ongoing commitment to solidify our capital structure, increase market share, and intensify the sales effort of iGetSmart. The outcome should further strengthen the company and put Workflow in an excellent position to rebound as the economy improves. We strongly believe that, at a minimum, Workflow will return to historic levels of organic growth and profitability."
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