M & F Worldwide Corporation Reports Income for 2005 First
2005-05-06 16:35 (New York)
Quarter
NEW YORK, May 6 - PRNewswire-FirstCall - M & F Worldwide Corp.
(NYSE: MFW), today reported results for the first quarter ended March 31,
2005.
Revenues for the first quarter of 2005 were $24.1 million as compared to
$25.7 million in the prior year quarter. The Company's revenues were lower in
the 2005 period primarily due to decreased domestic sales to the international
tobacco industry and lower non-licorice domestic revenues. These decreases
were due to lower shipment volume caused by a temporary disruption of orders
due to a major customer shifting orders among overseas manufacturing
locations. Foreign sales decreased in the 2005 period compared to the 2004
period due to lower shipment volume caused by a change in order timing from a
major customer. The decrease in foreign revenue was partially offset by a
favorable exchange translation effect on its Euro sales. Net income was $6.3
million for the 2005 quarter compared to $5.3 million for the 2004 quarter.
The increase in net income in the 2005 period despite the decrease in revenues
was due mainly to income related to the favorable resolution of a claim
against a former shareholder of the Company and lower interest expense. Basic
earnings per common share were $0.33 in the 2005 quarter and $0.29 per common
share in the 2004 quarter. Diluted earnings per common share were $0.31 in
the 2005 quarter and $0.27 per common share in the 2004 quarter.
This press release contains forward-looking statements which involve risks
and uncertainties. The Company's actual results may differ materially from
those discussed in such forward-looking statements. The following factors,
among others and in addition to those described in the Company's reports filed
with the SEC (including, without limitation, those described under "Forward-
Looking Statements" in the Company's Quarterly Report on Form 10-Q for the
quarter ended March 31, 2005), could cause the Company's actual results to
differ materially from those expressed in any forward-looking statements made
by it: (a) economic, climatic or political conditions in countries in which
the Company sources licorice root; (b) economic, climatic 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)
additional governmental regulation of tobacco products, tobacco industry
litigation or enactment of new or increased taxes on cigarettes or other
tobacco products, to the extent any of the foregoing curtail growth in or
actually reduce consumption of tobacco products in which licorice products are
used; (d) the failure of third parties to make full and timely payment to the
Company for environmental, asbestos, tax and other matters for which the
Company is entitled to indemnification; (e) any inability to obtain
indemnification for any significant group of asbestos-related claims pending
against the Company; (f) lower than expected cash flow from operations; (g)
significant increases in interest rates; and (h) unfavorable foreign currency
fluctuations. The Company assumes no responsibility to update the forward-
looking statements contained in this release.
SOURCE M & F Worldwide Corporation
CONTACT:
Christine Taylor of M & F Worldwide Corporation, 212-572-5988
-0- May/06/2005 20:35 GMT
