Zomax Incorporated Announces First Quarter 2001 Earnings

Apr 23, 2001, 01:00 ET from Zomax Incorporated

    MINNEAPOLIS, April 23 /PRNewswire Interactive News Release/ --
     Zomax Incorporated (Nasdaq: ZOMX) today reported sales and earnings for
 its first quarter ended March 30, 2001.  Net income for the first quarter of
 2001 was $4.2 million as compared to $6.4 million in 2000, based on sales of
 $62.8 million as compared to $57.9 million for the same period last year.
 Diluted earnings per share were $.13 as compared to $.19 in the first quarter
 of 2000 on 3% fewer shares outstanding.
     Jim Anderson, Chairman and CEO, stated, "We are very pleased with our
 first quarter results in light of the well publicized slow down in the
 worldwide economy and in particular the PC and software markets.  Despite the
 market softness, our first quarter sales grew 8.5% to $62.8 million as
 compared to the 1st quarter of 2000, while CD unit volume declined 3.1% during
 the quarter.
     "Our operating income of 10.1% in the quarter is reflective of our sales
 mix, lower manufacturing utilization rates, outsourcing of CD production in
 January to meet specific customer demands and general pricing pressures.  In
 March, the Company responded to market conditions with a work force reduction
 of approximately 150 positions while continuing its focus on tight cost
 controls."
     Anderson continued, "Despite the industry softness, we ended the quarter
 in a very strong financial position.  Our cash position grew to $66.6 million
 with long-term debt of only $5.3 million.  We believe the Company is well
 positioned financially to capitalize on these challenging economic times.  As
 you are aware, our industry is under pressure with the slowdown in demand and
 excess manufacturing capacity.  We have already seen the effects of this
 pressure on competitors with more limited financial resources and believe we
 are positioned to increase market share as customers look for financially
 stable and reliable partners to fulfill their critical outsourcing
 requirements.  We are also continuing to evaluate a number of strategic
 acquisition opportunities."
     Zomax is a leading international outsource provider of process management
 services.  The Company's fully integrated services include "front-end"
 E-commerce support, call center and customer support solutions; DVD authoring
 services; CD and DVD mastering; CD and DVD replication; supply chain and
 inventory management; graphic design; print management; assembly; packaging;
 warehousing; distribution and fulfillment; and RMA processing.  The Company's
 Common Stock is traded on the Nasdaq National Market under the symbol "ZOMX."
     Certain statements contained in this press release relating to expected
 future financial results, increased market share, intentions, beliefs, plans,
 strategies, opportunities, acquisitions and industry consolidation are
 "forward-looking statements" within the meaning of the Private Securities
 Litigation Reform Act of 1995 and involve known and unknown risks,
 uncertainties and other factors that may cause the Company's actual results,
 performance or achievements to be materially different from the results,
 performance or achievements expressed or implied by the forward looking
 statements.
     Factors that impact such forward looking statements include, among others,
 the growth rate of our marketplace, product and customer mix, currency
 fluctuations, the ability of our customers to continue offering competitive
 products, the impact of competition and pricing pressures from actual and
 potential competitors, the cost of raw materials, our ability to hire and
 retain competent employees in a tight labor market, changes in general
 economic conditions and interest rates, and other factors identified in the
 Company's filings with the Securities and Exchange Commission.
     Zomax Incorporated assumes no obligation to update any forward-looking
 statements.  We cannot guarantee the completion of any acquisitions, future
 results, levels of activity, and/or Company performance.
 
 
                               ZOMAX INCORPORATED
                     Consolidated Statements Of Operations
                                    (000's)
 
                                                       Three Months Ended
                                                    Mar. 30,          Mar. 31,
                                                      2001              2000
            Sales                                   $62,796           $57,867
            Cost of Sales                            47,923            39,181
                    Gross Profit                     14,873            18,686
            Selling, General and Administrative
             Expenses                                 8,501             8,679
                    Operating Income                  6,372            10,007
            Equity in losses of unconsolidated
             entity                                    (200)             (555)
            Interest Expense                           (208)             (288)
            Interest Income                             778               651
            Other income (expense), net                (132)             (111)
                    Income Before Income Taxes        6,610             9,704
            Provision for Income Taxes                2,396             3,310
            Net Income                               $4,214            $6,394
 
            Earnings Per Share
              Basic                                   $0.13             $0.20
              Diluted                                 $0.13             $0.19
 
            Weighted Average Number of Shares
             Outstanding
              Basic                                  32,117            31,602
              Diluted                                32,887            33,814
 
 
                               ZOMAX INCORPORATED
                          Consolidated Balance Sheets
                                    (000's)
 
                   ASSETS
                                                Mar. 30, 2001     Dec. 29, 2000
           Current Assets:
              Cash                                  $66,561           $63,577
              Accounts receivable                    32,984            32,182
              Inventories                             9,229            13,992
              Deferred income taxes                   2,365             2,374
              Prepaid expenses                        3,305             3,543
                Total current assets                114,444           115,668
 
           Property and equipment                    44,222            46,159
           Investment in unconsolidated entity        4,831             5,031
           Other assets                               1,018             1,077
                Total assets                       $164,515          $167,935
 
           LIABILITIES AND SHAREHOLDERS' EQUITY
           Current liabilities:
              Current portion of notes payable       $3,514            $3,788
              Accounts payable and accrued
               expenses                              32,385            38,746
              Income taxes payable                    4,081             3,262
                Total current liabilities            39,980            45,796
 
           Notes payable, net of current portion      5,343             6,757
           Deferred income taxes                      3,278             3,287
           Shareholders' equity:
              Common stock, no par value,
               200,000 authorized shares,
               32,148 and 31,802 shares
               issued and outstanding at
               March 30, 2001 and Dec. 29,
               2000, respectively                    59,608            58,456
              Retained earnings                      62,306            58,093
              Other comprehensive income             (6,000)           (4,454)
                Total shareholders' equity          115,914           112,095
 
                                                   $164,515          $167,935
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X72150793
 
 

SOURCE Zomax Incorporated
    MINNEAPOLIS, April 23 /PRNewswire Interactive News Release/ --
     Zomax Incorporated (Nasdaq: ZOMX) today reported sales and earnings for
 its first quarter ended March 30, 2001.  Net income for the first quarter of
 2001 was $4.2 million as compared to $6.4 million in 2000, based on sales of
 $62.8 million as compared to $57.9 million for the same period last year.
 Diluted earnings per share were $.13 as compared to $.19 in the first quarter
 of 2000 on 3% fewer shares outstanding.
     Jim Anderson, Chairman and CEO, stated, "We are very pleased with our
 first quarter results in light of the well publicized slow down in the
 worldwide economy and in particular the PC and software markets.  Despite the
 market softness, our first quarter sales grew 8.5% to $62.8 million as
 compared to the 1st quarter of 2000, while CD unit volume declined 3.1% during
 the quarter.
     "Our operating income of 10.1% in the quarter is reflective of our sales
 mix, lower manufacturing utilization rates, outsourcing of CD production in
 January to meet specific customer demands and general pricing pressures.  In
 March, the Company responded to market conditions with a work force reduction
 of approximately 150 positions while continuing its focus on tight cost
 controls."
     Anderson continued, "Despite the industry softness, we ended the quarter
 in a very strong financial position.  Our cash position grew to $66.6 million
 with long-term debt of only $5.3 million.  We believe the Company is well
 positioned financially to capitalize on these challenging economic times.  As
 you are aware, our industry is under pressure with the slowdown in demand and
 excess manufacturing capacity.  We have already seen the effects of this
 pressure on competitors with more limited financial resources and believe we
 are positioned to increase market share as customers look for financially
 stable and reliable partners to fulfill their critical outsourcing
 requirements.  We are also continuing to evaluate a number of strategic
 acquisition opportunities."
     Zomax is a leading international outsource provider of process management
 services.  The Company's fully integrated services include "front-end"
 E-commerce support, call center and customer support solutions; DVD authoring
 services; CD and DVD mastering; CD and DVD replication; supply chain and
 inventory management; graphic design; print management; assembly; packaging;
 warehousing; distribution and fulfillment; and RMA processing.  The Company's
 Common Stock is traded on the Nasdaq National Market under the symbol "ZOMX."
     Certain statements contained in this press release relating to expected
 future financial results, increased market share, intentions, beliefs, plans,
 strategies, opportunities, acquisitions and industry consolidation are
 "forward-looking statements" within the meaning of the Private Securities
 Litigation Reform Act of 1995 and involve known and unknown risks,
 uncertainties and other factors that may cause the Company's actual results,
 performance or achievements to be materially different from the results,
 performance or achievements expressed or implied by the forward looking
 statements.
     Factors that impact such forward looking statements include, among others,
 the growth rate of our marketplace, product and customer mix, currency
 fluctuations, the ability of our customers to continue offering competitive
 products, the impact of competition and pricing pressures from actual and
 potential competitors, the cost of raw materials, our ability to hire and
 retain competent employees in a tight labor market, changes in general
 economic conditions and interest rates, and other factors identified in the
 Company's filings with the Securities and Exchange Commission.
     Zomax Incorporated assumes no obligation to update any forward-looking
 statements.  We cannot guarantee the completion of any acquisitions, future
 results, levels of activity, and/or Company performance.
 
 
                               ZOMAX INCORPORATED
                     Consolidated Statements Of Operations
                                    (000's)
 
                                                       Three Months Ended
                                                    Mar. 30,          Mar. 31,
                                                      2001              2000
            Sales                                   $62,796           $57,867
            Cost of Sales                            47,923            39,181
                    Gross Profit                     14,873            18,686
            Selling, General and Administrative
             Expenses                                 8,501             8,679
                    Operating Income                  6,372            10,007
            Equity in losses of unconsolidated
             entity                                    (200)             (555)
            Interest Expense                           (208)             (288)
            Interest Income                             778               651
            Other income (expense), net                (132)             (111)
                    Income Before Income Taxes        6,610             9,704
            Provision for Income Taxes                2,396             3,310
            Net Income                               $4,214            $6,394
 
            Earnings Per Share
              Basic                                   $0.13             $0.20
              Diluted                                 $0.13             $0.19
 
            Weighted Average Number of Shares
             Outstanding
              Basic                                  32,117            31,602
              Diluted                                32,887            33,814
 
 
                               ZOMAX INCORPORATED
                          Consolidated Balance Sheets
                                    (000's)
 
                   ASSETS
                                                Mar. 30, 2001     Dec. 29, 2000
           Current Assets:
              Cash                                  $66,561           $63,577
              Accounts receivable                    32,984            32,182
              Inventories                             9,229            13,992
              Deferred income taxes                   2,365             2,374
              Prepaid expenses                        3,305             3,543
                Total current assets                114,444           115,668
 
           Property and equipment                    44,222            46,159
           Investment in unconsolidated entity        4,831             5,031
           Other assets                               1,018             1,077
                Total assets                       $164,515          $167,935
 
           LIABILITIES AND SHAREHOLDERS' EQUITY
           Current liabilities:
              Current portion of notes payable       $3,514            $3,788
              Accounts payable and accrued
               expenses                              32,385            38,746
              Income taxes payable                    4,081             3,262
                Total current liabilities            39,980            45,796
 
           Notes payable, net of current portion      5,343             6,757
           Deferred income taxes                      3,278             3,287
           Shareholders' equity:
              Common stock, no par value,
               200,000 authorized shares,
               32,148 and 31,802 shares
               issued and outstanding at
               March 30, 2001 and Dec. 29,
               2000, respectively                    59,608            58,456
              Retained earnings                      62,306            58,093
              Other comprehensive income             (6,000)           (4,454)
                Total shareholders' equity          115,914           112,095
 
                                                   $164,515          $167,935
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X72150793
 
 SOURCE  Zomax Incorporated