Tyler Corporation Reports 1997 Financial Results
19 March 1998
Tyler Corporation Reports 1997 Financial Results
DALLAS, March 19 -- Tyler Corporation completed a
year of transition in 1997. The Company embarked on a new consolidation
strategy in the information management business with three previously
announced acquisitions that were completed after year-end and were therefore
not included in the 1997 financial results. For the year ended December 31,
1997, the Company had net income from continuing operations of $1.2 million,
or $.06 per share, compared with a net loss from continuing operations of
$19.3 million, or $.97 per share, in 1996. The 1996 loss included pretax
charges of $14.8 million for goodwill and other intangibles impairment and
$7.3 million for restructuring and other charges.
In October 1997, Tyler sold its direct marketing subsidiary, Institutional
Financing Services ("IFS") for approximately $8.4 million, resulting in a loss
on the disposal of approximately $2.5 million. Accordingly, IFS's results are
included in discontinued operations and Tyler's continuing operations
consisted solely of Forest City Auto Parts ("Forest City").
Net sales at Forest City in 1997 declined 10% from the prior year to
$76.4 million, while operating profits at Forest City fell slightly to
$3.5 million in 1997 from $3.8 million in 1996 before the restructuring and
fourth quarter charges in 1996.
Tyler's corporate expense for 1997 was 9% lower than the 1996 level
(before restructuring and other charges), primarily due to reduced personnel
costs.
For the quarter ended December 31, 1997, Tyler had income from continuing
operations of $0.4 million, or $.02 per share, compared to a net loss from
continuing operations of $19.1 million, or $.96 per share in the 1996 quarter.
Net sales at Forest City declined 5% from the prior year to $18.3 million in
the quarter ended December 31, 1997.
On February 19, 1998, Tyler completed the acquisitions of Business
Resources Corporation ("Resources"), The Software Group, Inc. ("TSG"), and
Interactive Computer Designs, Inc. ("INCODE"). "These acquisitions serve as
the cornerstone of Tyler's strategy to build a national integrated information
management services, systems, and outsourcing company serving local
governments," stated C.A. Rundell, Jr., President and Chief Executive Officer
of Tyler. "Our principal effort in 1998 will be concentrated on our
consolidation strategy in the information management business through
acquisitions and internal growth. Initial indications from the new
subsidiaries have been encouraging, with significant order increases over
comparable 1997 periods at both TSG and INCODE. In addition, we are
cautiously optimistic that Forest City will improve results," Rundell
continued.
Resources recently signed a $4.3 million contract with the Cook County
Recorder of Deeds in Chicago, Illinois. This contract, which represents
Phase 3 of Cook County's long-term plan for the automation of records, calls
for Resources to design and install an electronic document management and
imaging system for all documents filed in the Recorder of Deeds' office. In
addition, Resources will upgrade Cook County's existing computer system, which
includes its integration with the Countywide Information Services network.
"The signing of this agreement with Cook County represents a major step in
transitioning our regional-based organization toward our goal of becoming the
premier nationwide provider of information management services to local
governments," said Rundell.
Tyler Corporation was founded in 1966. The Company operates in the
information management business, as well as in the retail automotive parts
business.
Tyler has included forward-looking statements concerning its business and
operations in this press release. Although Tyler believes that the
expectations reflected in these forward-looking statements are reasonable,
these expectations and the related statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
projected. These risks and uncertainties include the ability of the company
to integrate successfully the recent acquisitions and future acquisitions, the
ability of the company to take advantage of consolidation opportunities, and
the risks of increased competition in its automotive parts business.
Tyler expressly disclaims any obligation to release publicly any updates
or revisions to these forward-looking statements to reflect any change in its
expectations.
TYLER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended Twelve months ended
December 31 December 31
1997 1996 1997 1996
Net sales $ 18,257 $ 19,222 $ 76,429 $ 85,074
Costs and expenses 18,362 42,083(A) 75,891 106,594 (A)
Goodwill amortization
and other expenses --- 275 --- 1,101
Interest income, net (217) (63) (830) (277)
Income (loss) from
continuing operations
before income tax (benefit) 112 (23,073) 1,368 (22,344)
Income tax (benefit) (257) (3,935) 197 (3,037)
Income (loss) from
continuing operations 369 (19,138) 1,171 (19,307)
Discontinued operations
Loss from discontinued
operations, after income
tax benefit (60) (37,496)(B) (2,051) (42,023)(B)
Gain (loss) on disposal
of discontinued operations,
after income tax 32 --- (2,468) ---
Loss from discontinued
operations (28) (37,496) (4,519) (42,O23)
Net income (loss) $ 341 $(56,634) $ (3,348) $(61,330)
Basic and diluted earnings
(loss) per common share
Continuing operations $ 0.02 $ (0.96) $ 0.06 $ (0.97)
Discontinued operations 0.00 (1.89) (O.22) (2.12)
Net earnings (loss) per
common share $ 0.02 $ (2.85) $ (0.16) $ (3.09)
Weighted average shares
(thousands) 21,730 19,877 20,498 19,876
(A) Includes $14,789 goodwill and other intangibles impairment charge and
$7,250 restructuring and other charges.
(B) Includes $37,316 goodwill impairment charge and $2,647 restructuring
and other charges.
TYLER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
Dec. 31, Dec. 31,
1997 1996
ASSETS
Current assets
Cash and cash equivalents $ 8,877 $ 15,419
Accounts receivable - net 201 137
Note receivable from IFS Acquisition Corporation 2,628 ---
Merchandise inventories 22,901 17,323
Other 1,672 3,012
Total current assets 36,279 35,891
Property, plant and equipment - net 5,580 5,672
Other assets 2,881 1,970
Other receivables 10,155 5,000
Net assets of discontinued operations --- 10,857
Total assets $ 54,895 $ 59,390
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 11,787 $ 12,506
Deferred income tax 3,168 5,708
Other non-current liabilities 8,537 9,135
Shareholders' equity 31,403 32,041
Total liabilities and shareholders' equity $ 54,895 $ 59,390
SOURCE Tyler Corporation