EPIQ Systems, Inc. Announces Record First Quarter Results with Revenue Gain Of 43% And $.14 Cash EPS

Apr 25, 2001, 01:00 ET from EPIQ Systems, Inc.

    KANSAS CITY, Kan., April 25 /PRNewswire/ -- Note:  A telephone conference
 call will be held at 8:15 a.m. central time on Thursday, April 26, 2001 to
 further discuss this announcement.  The toll-free dial-in number is
 888-886-7046 (passcode: EPIQ earnings call).  A replay will be available
 shortly thereafter until May 3, 2001 on 800-405-2236 (passcode: 328733).
     EPIQ Systems, Inc. (Nasdaq:   EPIQ) today announced record results for the
 first quarter ended March 31, 2001, with revenue growth of 43% and cash
 earnings per share of $.14, exceeding the First Call consensus estimate of
 $.12.
     Results for the quarter ended March 31, 2001 compared to the same period
 last year were:
     -- Revenue of $7.134 million, a 43% increase compared to $4.988 million.
        Revenue for bankruptcy services was $6.652 million while revenue for
        financial services was $482,000.
     -- Gross profit was $4.718 million.  The gross profit margin was 66% vs.
        62%.
     -- Cash net income (net income plus after-tax amortization of acquisition-
        related goodwill/intangibles) of $1.238 million, a 62% increase
        compared to $762,000 (net income plus after-tax amortization of
        acquisition-related goodwill/intangibles and acquisition-related
        charges).  Cash net income per diluted share was $.14, a 27% increase
        vs. $.11.
     -- Net income of $1.036 million compared to $637,000 (net income plus
        after-tax acquisition-related charges).  Net income per diluted share
        was $.12 compared to $.09.
     -- Cash flow (pretax income plus depreciation/amortization) was $2.995
        million or 42% of revenue, which equals $.34 per diluted share.
 
     Tom W. Olofson, chairman and chief executive officer, and Christopher E.
 Olofson, president and chief operating officer, said, "EPIQ Systems delivered
 strong performance throughout the quarter.  Having released TCMS 6.0 in March,
 we are well positioned to take advantage of growth opportunities in the
 bankruptcy industry.  We recently attracted major new trustee clients in
 California -- the largest national bankruptcy market -- and we continue to
 have a full pipeline.  The quarter concluded with a record customer count,
 reflecting new growth and outstanding retention of existing customers.  With
 significantly heightened national focus on bankruptcy, EPIQ Systems
 aggressively continues to pursue leadership in this niche market."
 
     Key events of the quarter:
     -- On March 15, 2001, Investor's Business Daily ranked EPIQ Systems number
        one among the top 25 financial services software companies listed.
     -- TCMS 6.0, EPIQ Systems' latest version of its industry leading software
        solution for Chapter 7 bankruptcy case management, was released into
        the market.  This product represents the company's sixth consecutive,
        on-time annual release of its bankruptcy software, maintaining its
        technological leadership over competitors.
     -- On January 24, 2001, EPIQ Systems announced a 3-for-2 stock split,
        effected in the form of a 50% stock dividend, payable February 23, 2001
        to shareholders of record February 8, 2001.  This stock split increased
        the number of shares outstanding to approximately 8.5 million.
     -- The company's balance sheet remains strong, with shareholders' equity
        of $37.239 million and virtually no debt.  The company also has
        $10.622 million in cash, due in large part to the successful private
        placement completed at year-end 2000.  Proceeds from the private
        placement are now being used to accelerate new product development,
        expand sales and marketing efforts, repay the company's working capital
        line of credit and to provide additional financial strength for
        potential acquisitions.
 
     EPIQ Systems, Inc. develops, markets and licenses proprietary software
 solutions for workflow management, electronic banking and communications
 infrastructure that serve the bankruptcy management and financial services
 markets.
 
     NOTE ON FORWARD-LOOKING STATEMENTS:  Information in this news release
 contains forward-looking statements within the meaning of Section 27A of the
 Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
 Act of 1934, as amended, including those relating to the possible or assumed
 future results of operations and financial condition of the Company.  Because
 those statements are subject to a number of uncertainties and risks, actual
 results may differ materially from those expressed or implied by the forward-
 looking statements.  Important factors concerning these risks are discussed
 from time to time in the company's filings with the Securities and Exchange
 Commission.  In addition, there may be other factors not included in the
 Company's Securities and Exchange Commission filings that may cause actual
 results to differ materially from any forward-looking statements.  The company
 undertakes no obligation to update any forward-looking statements contained
 herein to reflect future events or developments.
 
                               EPIQ SYSTEMS, INC.
                               MANAGEMENT REPORT
                      CASH NET INCOME FINANCIAL STATEMENT
                     (In Thousands, Except Per Share Data)
                                  (Unaudited)
 
                                                     QUARTER ENDED MARCH 31,
                                                        2001           2000
 
     OPERATING REVENUES                                $7,134         $4,988
 
     GROSS PROFIT                                       4,718          3,071
 
     INCOME FROM OPERATIONS BEFORE
      ACQUISITION-RELATED CHARGES                       1,614          1,034
 
     CASH NET INCOME                                    1,238            762
 
     CASH NET INCOME PER DILUTED SHARE                  $0.14          $0.11
 
     WEIGHTED AVERAGE SHARES - DILUTED                  8,774          7,228
 
 
                               EPIQ SYSTEMS, INC.
                              STATEMENTS OF INCOME
                     (In Thousands, Except Per Share Data)
                                  (Unaudited)
 
                                                      QUARTER ENDED MARCH 31,
                                                         2001           2000
 
     OPERATING REVENUES                                $7,134         $4,988
 
     COST OF SALES
       Costs of goods and services                      1,588          1,245
       Depreciation and amortization                      828            672
 
                                                        2,416          1,917
 
     GROSS PROFIT                                       4,718          3,071
 
     OPERATING EXPENSES
       General and administrative                       2,673          1,778
       Depreciation                                        91             51
       Amortization of goodwill/intangibles               340            209
       Acquisition-related expense                                       722
 
                                                        3,104          2,760
 
     INCOME FROM OPERATIONS                             1,614            311
 
     NET INTEREST INCOME                                  123             36
 
     INCOME BEFORE INCOME TAXES                         1,737            347
 
     NET INCOME                                        $1,036           $207
 
     EARNINGS PER SHARE - DILUTED                       $0.12          $0.03
 
     WEIGHTED AVERAGE SHARES - DILUTED                  8,774          7,228
 
 
                               EPIQ SYSTEMS, INC.
                       BALANCE  SHEET  -  MARCH 31, 2001
                                 (In Thousands)
                                  (Unaudited)
 
           ASSETS:
 
     CURRENT ASSETS:
       CASH AND CASH EQUIVALENTS                      $10,622
       ACCOUNTS RECEIVABLE                              6,241
       OTHER CURRENT ASSETS                               546
         TOTAL CURRENT ASSETS                          17,409
 
     PROPERTY & EQUIPMENT, Net                          6,911
 
     SOFTWARE, Net                                      3,147
 
     INTANGIBLE ASSETS, Net                            14,361
 
     OTHER ASSETS                                          34
 
     TOTAL ASSETS                                     $41,862
 
           LIABILITIES AND SHAREHOLDERS' EQUITY:
 
     CURRENT LIABILITIES:
       ACCOUNTS PAYABLE                                $1,067
       DEFERRED REVENUE                                   827
       OTHER CURRENT LIABILITIES                        1,256
         TOTAL CURRENT LIABILITIES                      3,150
 
     LONG-TERM OBLIGATIONS (less current portion)         258
 
     DEFERRED ACQUISITION PRICE (less current portion)    628
 
     DEFERRED REVENUE                                     160
 
     DEFERRED INCOME TAXES                                427
 
     SHAREHOLDERS' EQUITY                              37,239
 
     TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY       $41,862
 
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SOURCE EPIQ Systems, Inc.
    KANSAS CITY, Kan., April 25 /PRNewswire/ -- Note:  A telephone conference
 call will be held at 8:15 a.m. central time on Thursday, April 26, 2001 to
 further discuss this announcement.  The toll-free dial-in number is
 888-886-7046 (passcode: EPIQ earnings call).  A replay will be available
 shortly thereafter until May 3, 2001 on 800-405-2236 (passcode: 328733).
     EPIQ Systems, Inc. (Nasdaq:   EPIQ) today announced record results for the
 first quarter ended March 31, 2001, with revenue growth of 43% and cash
 earnings per share of $.14, exceeding the First Call consensus estimate of
 $.12.
     Results for the quarter ended March 31, 2001 compared to the same period
 last year were:
     -- Revenue of $7.134 million, a 43% increase compared to $4.988 million.
        Revenue for bankruptcy services was $6.652 million while revenue for
        financial services was $482,000.
     -- Gross profit was $4.718 million.  The gross profit margin was 66% vs.
        62%.
     -- Cash net income (net income plus after-tax amortization of acquisition-
        related goodwill/intangibles) of $1.238 million, a 62% increase
        compared to $762,000 (net income plus after-tax amortization of
        acquisition-related goodwill/intangibles and acquisition-related
        charges).  Cash net income per diluted share was $.14, a 27% increase
        vs. $.11.
     -- Net income of $1.036 million compared to $637,000 (net income plus
        after-tax acquisition-related charges).  Net income per diluted share
        was $.12 compared to $.09.
     -- Cash flow (pretax income plus depreciation/amortization) was $2.995
        million or 42% of revenue, which equals $.34 per diluted share.
 
     Tom W. Olofson, chairman and chief executive officer, and Christopher E.
 Olofson, president and chief operating officer, said, "EPIQ Systems delivered
 strong performance throughout the quarter.  Having released TCMS 6.0 in March,
 we are well positioned to take advantage of growth opportunities in the
 bankruptcy industry.  We recently attracted major new trustee clients in
 California -- the largest national bankruptcy market -- and we continue to
 have a full pipeline.  The quarter concluded with a record customer count,
 reflecting new growth and outstanding retention of existing customers.  With
 significantly heightened national focus on bankruptcy, EPIQ Systems
 aggressively continues to pursue leadership in this niche market."
 
     Key events of the quarter:
     -- On March 15, 2001, Investor's Business Daily ranked EPIQ Systems number
        one among the top 25 financial services software companies listed.
     -- TCMS 6.0, EPIQ Systems' latest version of its industry leading software
        solution for Chapter 7 bankruptcy case management, was released into
        the market.  This product represents the company's sixth consecutive,
        on-time annual release of its bankruptcy software, maintaining its
        technological leadership over competitors.
     -- On January 24, 2001, EPIQ Systems announced a 3-for-2 stock split,
        effected in the form of a 50% stock dividend, payable February 23, 2001
        to shareholders of record February 8, 2001.  This stock split increased
        the number of shares outstanding to approximately 8.5 million.
     -- The company's balance sheet remains strong, with shareholders' equity
        of $37.239 million and virtually no debt.  The company also has
        $10.622 million in cash, due in large part to the successful private
        placement completed at year-end 2000.  Proceeds from the private
        placement are now being used to accelerate new product development,
        expand sales and marketing efforts, repay the company's working capital
        line of credit and to provide additional financial strength for
        potential acquisitions.
 
     EPIQ Systems, Inc. develops, markets and licenses proprietary software
 solutions for workflow management, electronic banking and communications
 infrastructure that serve the bankruptcy management and financial services
 markets.
 
     NOTE ON FORWARD-LOOKING STATEMENTS:  Information in this news release
 contains forward-looking statements within the meaning of Section 27A of the
 Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
 Act of 1934, as amended, including those relating to the possible or assumed
 future results of operations and financial condition of the Company.  Because
 those statements are subject to a number of uncertainties and risks, actual
 results may differ materially from those expressed or implied by the forward-
 looking statements.  Important factors concerning these risks are discussed
 from time to time in the company's filings with the Securities and Exchange
 Commission.  In addition, there may be other factors not included in the
 Company's Securities and Exchange Commission filings that may cause actual
 results to differ materially from any forward-looking statements.  The company
 undertakes no obligation to update any forward-looking statements contained
 herein to reflect future events or developments.
 
                               EPIQ SYSTEMS, INC.
                               MANAGEMENT REPORT
                      CASH NET INCOME FINANCIAL STATEMENT
                     (In Thousands, Except Per Share Data)
                                  (Unaudited)
 
                                                     QUARTER ENDED MARCH 31,
                                                        2001           2000
 
     OPERATING REVENUES                                $7,134         $4,988
 
     GROSS PROFIT                                       4,718          3,071
 
     INCOME FROM OPERATIONS BEFORE
      ACQUISITION-RELATED CHARGES                       1,614          1,034
 
     CASH NET INCOME                                    1,238            762
 
     CASH NET INCOME PER DILUTED SHARE                  $0.14          $0.11
 
     WEIGHTED AVERAGE SHARES - DILUTED                  8,774          7,228
 
 
                               EPIQ SYSTEMS, INC.
                              STATEMENTS OF INCOME
                     (In Thousands, Except Per Share Data)
                                  (Unaudited)
 
                                                      QUARTER ENDED MARCH 31,
                                                         2001           2000
 
     OPERATING REVENUES                                $7,134         $4,988
 
     COST OF SALES
       Costs of goods and services                      1,588          1,245
       Depreciation and amortization                      828            672
 
                                                        2,416          1,917
 
     GROSS PROFIT                                       4,718          3,071
 
     OPERATING EXPENSES
       General and administrative                       2,673          1,778
       Depreciation                                        91             51
       Amortization of goodwill/intangibles               340            209
       Acquisition-related expense                                       722
 
                                                        3,104          2,760
 
     INCOME FROM OPERATIONS                             1,614            311
 
     NET INTEREST INCOME                                  123             36
 
     INCOME BEFORE INCOME TAXES                         1,737            347
 
     NET INCOME                                        $1,036           $207
 
     EARNINGS PER SHARE - DILUTED                       $0.12          $0.03
 
     WEIGHTED AVERAGE SHARES - DILUTED                  8,774          7,228
 
 
                               EPIQ SYSTEMS, INC.
                       BALANCE  SHEET  -  MARCH 31, 2001
                                 (In Thousands)
                                  (Unaudited)
 
           ASSETS:
 
     CURRENT ASSETS:
       CASH AND CASH EQUIVALENTS                      $10,622
       ACCOUNTS RECEIVABLE                              6,241
       OTHER CURRENT ASSETS                               546
         TOTAL CURRENT ASSETS                          17,409
 
     PROPERTY & EQUIPMENT, Net                          6,911
 
     SOFTWARE, Net                                      3,147
 
     INTANGIBLE ASSETS, Net                            14,361
 
     OTHER ASSETS                                          34
 
     TOTAL ASSETS                                     $41,862
 
           LIABILITIES AND SHAREHOLDERS' EQUITY:
 
     CURRENT LIABILITIES:
       ACCOUNTS PAYABLE                                $1,067
       DEFERRED REVENUE                                   827
       OTHER CURRENT LIABILITIES                        1,256
         TOTAL CURRENT LIABILITIES                      3,150
 
     LONG-TERM OBLIGATIONS (less current portion)         258
 
     DEFERRED ACQUISITION PRICE (less current portion)    628
 
     DEFERRED REVENUE                                     160
 
     DEFERRED INCOME TAXES                                427
 
     SHAREHOLDERS' EQUITY                              37,239
 
     TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY       $41,862
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X14886012
 
 SOURCE  EPIQ Systems, Inc.