M & F Worldwide Corporation Reports Income for 2006 First
2006-05-05 17:52 (New York)
Quarter
NEW YORK, May 5 - PRNewswire-FirstCall - M & F Worldwide Corp.
(NYSE: MFW), today reported results for the first quarter ended March 31,
2006.
Net revenues for the first quarter of 2006 were $187.2 million, as
compared to $24.1 million in the first quarter of 2005. The Company's revenues
increased by $163.1 million in the 2006 quarter primarily as a result of the
Clarke American acquisition which accounted for $162.9 million of the
increase. Net income was $10.4 million for the first quarter 2006, as compared
to $6.3 million for the first quarter 2005, an increase in net income of $4.1
million over the prior year period. This increase is primarily due to the
acquisition of Clarke American, which accounted for $6.4 million of the
increase, partially offset by interest on Mafco Worldwide's long-term debt
incurred in connection with the acquisition of Clarke American. Basic earnings
per common share were $0.53 in the first quarter of 2006 and $0.33 in the
first quarter of 2005. Diluted earnings per common share were $0.52 in the
first quarter of 2006 and $0.31 in the first quarter of 2005.
Licorice Products Segment
Revenues from the Licorice Products segment operated by Mafco Worldwide
increased by $0.2 million, or 0.8%, to $24.3 million in the 2006 period from
$24.1 million in the 2005 period. This increase was primarily due to an
increase in sales to the worldwide tobacco industry of $0.2 million and
increased revenues from Magnasweet and licorice derivatives of $0.4 million,
offset by a decline in revenues from sales to confectionary and other licorice
customers of $0.4 million. Operating income was $9.1 million in the 2006
period versus $9.6 million in the 2005 period. The decrease in operating
income of $0.5 million was due to an increase in energy and other
manufacturing costs and increased professional fees in the 2006 period.
Financial Institution and Direct to Consumer Segments
Revenues and operating income for the Financial Institution segment
included in the first quarter of 2006 were $136.6 million and $22.1 million,
respectively. Revenues and operating income for the Direct to Consumer
segment included in the first quarter of 2006 were $26.3 million and $3.0
million, respectively. In addition, M & F Worldwide's operating income for
the first quarter reflects a non-recurring $1.3 million fair value adjustment
to inventory recorded in the purchase accounting for the acquisition of Clarke
American.
About M & F Worldwide
M & F Worldwide has two business lines, which are operated by Mafco
Worldwide and Clarke American. Mafco Worldwide's business is the production
of licorice products for sale to the tobacco, food, pharmaceutical and
confectionery industries (which is the Company's Licorice Products segment).
Clarke American's business is providing checks, check-related products and
direct marketing services. Clarke American's business consists of two
segments: the Financial Institution segment, which is focused on financial
institution clients and their customers, and the Direct to Consumer segment,
which is focused on individual customers. For more information on Clarke
American, please see the Clarke American press release dated May 5, 2006.
This press release contains forward-looking statements, within the meaning
of the Private Securities Litigation Reform Act of 1995, which involve risks
and uncertainties. M & F Worldwide's actual results may differ materially from those discussed in such forward-looking statements. In addition to factors
described in M & F Worldwide's Securities and Exchange Commission filings and
others (including in the Risk Factors set forth in the Annual Report Form 10-K
of M & F Worldwide filed with the Securities and Exchange Commission on March
15, 2006), the following factors could cause M & F Worldwide's actual results
to differ materially from those expressed in any forward-looking statements
made by M & F Worldwide: (a) economic, climatic or political conditions in
countries in which Mafco Worldwide sources licorice root; (b) economic,
regulatory or political conditions that have an impact on the worldwide
tobacco industry or on the consumption of tobacco products in which licorice
products are used; (c) the failure of third parties to make full and timely
payment to M & F Worldwide for environmental, asbestos, tax and other matters
for which M & F Worldwide is entitled to indemnification; (d) the maturity of
the principal industry in which Clarke American operates and trends in the
paper check industry, including a faster than anticipated decline in check
usage due to increasing use of alternative payment methods and other factors;
(e) consolidation among financial institutions and other adverse changes among
the large clients on which Clarke American depends, resulting in decreased
revenues; (f) lower than expected cash flow from operations; (g) significant
increases in interest rates; (h) unfavorable foreign currency fluctuations;
and (i) the Company's substantial indebtedness. M & F Worldwide assumes no
responsibility to update the forward-looking statements contained in this
release.
SOURCE M & F Worldwide Corp.
CONTACT:
Christine Taylor of M & F Worldwide Corp., 212-572-5988
-0- Aug/04/2005 22:04 GMT
