M & F Worldwide Corporation Reports Income for 2005 Second
2005-08-04 18:04 (New York)
Quarter and Six Months
NEW YORK, Aug. 4 - PRNewswire-FirstCall - M & F Worldwide Corp.
(NYSE: MFW), today reported results for the second quarter and six months
ended June 30, 2005.
Revenues for the second quarter of 2005 were $25.3 million as compared to
$24.3 million in the prior year quarter. The Company's revenues were higher
in the 2005 quarter primarily due to increased domestic sales to the
international tobacco industry and the tobacco industry in the United States
resulting from major customers returning to normal order patterns after completing restructuring of operations between domestic and foreign
facilities. The Company's foreign sales also increased due to a higher volume
of products being sold. Net income was $6.0 million for the 2005 quarter
compared to $4.9 million for the 2004 quarter. The increase in net income in
the 2005 period was due mainly to higher interest income, lower interest
expense and lower administrative expenses. Basic earnings per common share
were $0.31 in the 2005 quarter and $0.27 per common share in the 2004 quarter.
Diluted earnings per common share were $0.30 in the 2005 quarter and $0.25 per
common share in the 2004 quarter.
Revenues for the six months ended June 30, 2005 were $49.4 million as
compared to $50.0 million in the 2004 six month period. Decreases in domestic
revenues to the international tobacco industry were substantially offset by
increases in domestic revenues to the tobacco industry in the United States as
major customers returned to normal order patterns after completing
restructuring of operations between domestic and foreign facilities.
Non-licorice domestic revenues decreased due to lower shipment volume caused
by a major customer shifting orders among overseas manufacturing locations and
foreign sales increased due to a favorable exchange translation effect on the
Company's Euro sales. Net income was $12.3 million for the 2005 period
compared to $10.2 million for the 2004 period. The increase in net income in
the 2005 period despite the decrease in sales was due principally to income
related to the favorable resolution of a claim against a former shareholder of
the Company, higher interest income and lower interest expense. Basic earnings
per common share were $0.64 in the 2005 period and $0.55 in the 2004 period.
Diluted earnings per common share were $0.62 in the 2005 period and $0.51 in
the 2004 period.
This press release may contain 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 June 30, 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 or
higher than expected operating expenses; (g) the loss of one of the Company's
significant customers; (h) significant increases in interest rates; and (i)
unfavorable foreign currency fluctuations. The Company 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
