Another PR with encouraging words from Phil.
Press Release
SOURCE: Anacomp, Inc.
Anacomp(R) Announces First Quarter Financial Results
SAN DIEGO, Feb. 15 /PRNewswire/ -- Anacomp, Inc. (OTC Bulletin Board: ANCO - news), a leader in document-management services, today reported results for its first fiscal quarter ended December 31, 2001.
FIRST QUARTER RESULTS
First quarter revenues were $82.1 million, compared to $101.8 million in the same period last year. Operating income (earnings before interest, taxes and other income) for the first quarter of fiscal 2001 was $3.2 million, compared to an operating loss of $5.4 million (which included two months of reorganization asset amortization) in the same period of fiscal 2000.
``Our first quarter results reflect the focus we have brought to our business operations,'' said Phil Smoot, president and chief executive officer of Anacomp. ``All business units in the company met or exceeded their operating plans for the first quarter. This is a result of careful planning and a focus on execution by each of the businesses. We are working hard to meet our operating plans as we move through the balance of fiscal 2001.''
Smoot noted that the company is making progress within each of its business units and in managing its cash position. ``In docHarbor, we increased revenue while reducing operating expenses. In Document Solutions, we continued to deploy an expanded suite of service offerings and, in addition, we improved gross margins. And in Technical Services, we continued to focus on building our multi-vendor maintenance services business, particularly in the storage and network space,'' he added.
Anacomp, as previously announced, is in violation of certain financial covenants set forth in its senior revolving credit facility. However, the Company has reached an agreement with its senior lenders to amend the current credit facility and the senior lenders have agreed to forbear from exercising any remedies available to them as a result of the Company's breach of those financial covenants. The forbearance is valid through February 28, 2001. The Company and its senior lenders are currently in discussions regarding an extension of the forbearance agreement and an amendment of the existing revolving credit facility. The Company continues to have limited additional access to its senior credit facility during this time.
Anacomp had announced in October 2000 that it did not make the interest payment on its subordinated debt due October 1, 2000. As previously announced, Anacomp continues in its discussions with representatives of its subordinated debt holders regarding a possible restructuring of its subordinated debt. Credit Suisse First Boston is assisting the Company in these discussions.
BUSINESS UNIT RESULTS
Anacomp currently comprises three business units: Document Solutions, which provides document-management outsource services; Technical Services, which provides multi-vendor equipment maintenance services, and hardware systems and supplies; and docHarbor, a document ASP.
docHarbor first-quarter revenues were $2.4 million, with an operating loss of $4.4 million. The Company announced on January 17, 2001, that it entered into a non-binding Letter of Intent to sell 100% of its docHarbor business unit to a major corporate buyer. While terms were not disclosed, the Company said it expects the sale to be completed by March 15, 2001. The transaction is subject to regulatory approvals, due diligence, negotiation of acceptable terms and conditions of a definitive agreement and satisfaction of closing conditions.
Document Solutions revenues worldwide were $46.5 million, with an operating income of $5.5 million. Digital services and products accounted for 34% of total Document Solutions revenues in the quarter.
Technical Services revenues (including the former DatagraphiX unit) worldwide were $33.2 million, with an operating income of $8.5 million. Multi-vendor maintenance service revenues increased 12% over the first quarter of fiscal 2000 and accounted for 15% of total Technical Services revenues in the quarter.
About Anacomp
Anacomp, Inc. is a leading provider of document-management and technical services. With global operations backed by more than 30 years of outsourcing experience, Anacomp offers premium services for virtually any business application. Anacomp comprises three business units: Document Solutions (document-management outsource services); Technical Services (multi-vendor maintenance services and supplies); and docHarbor(SM) (web-based storage and delivery services). For more information, visit Anacomp's web site at www.anacomp.com.
This news release may contain forward-looking statements under the Private Securities Litigation Reform Act of 1995, including statements relating to the Company's expectations regarding the sale of the docHarbor business unit. These forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different from those contemplated by the forward-looking statements. Such risks, uncertainties and other important factors include: the ability to reach agreement on the docHarbor sale and to satisfy the conditions to closing; general economic and business conditions; industry trends; industry capacity; competition; raw material costs and availability; currency fluctuations; the loss of any significant customers; changes in business strategy or development plans; availability, terms, and deployment of capital; availability of qualified personnel; and changes in, or failure or inability to comply with, government regulation.
Anacomp's news releases are distributed through PR Newswire and can be accessed via the Internet (www.anacomp.com or www.prnewswire.com) or by fax-on-demand (800-758-5804, ext. 054532).
