M & F Worldwide Corporation Reports Income for 2005 Third
2005-11-09 16:30 (New York)
Quarter and Nine Months
NEW YORK, Nov. 9 - PRNewswire-FirstCall - M & F Worldwide Corp.
(NYSE: MFW), today reported results for the third quarter and nine months
ended September 30, 2005.
Revenues for the third quarter of 2005 were $24.6 million as compared to
$21.7 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 historical order patterns after
completing restructuring of operations between domestic and foreign
facilities. The Company's foreign sales also increased due to higher volume.
Income before income taxes was $8.6 million in the 2005 quarter compared to
$5.6 million in the 2004 quarter due to increased sales, higher interest
income and lower interest expense. Net income was $6.0 million for the 2005
quarter compared to $6.4 million for the 2004 quarter. The tax provision in
2005 and 2004 included a benefit of $0.8 million and $2.7 million,
respectively, related to the reversal of certain tax reserves. Excluding
these reversals, net income would have been $5.2 million in the 2005 period
and $3.7 million in the 2004 period. Basic earnings per common share were
$0.32 in the 2005 quarter and $0.34 per common share in the 2004 quarter.
Diluted earnings per common share were $0.31 in the 2005 quarter and $0.32 per
common share in the 2004 quarter.
Revenues for the nine months ended September 30, 2005 were $74.0 million
as compared to $71.7 million in the 2004 nine month period. Revenues in 2005
were higher due to increases in domestic sales to the international tobacco
industry and increases in domestic sales to the tobacco industry in the United
States, as major customers returned to historical 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 principally to higher volume and a
favorable exchange translation effect on the Company's Euro sales. Net income
was $18.3 million for the 2005 period compared to $16.6 million for the 2004
period. The increase in net income in the 2005 period was due principally to
the increase in sales, income related to the favorable resolution of a claim
against a former shareholder of the Company, higher interest income and lower
interest expense. The tax provision in 2005 and 2004 included a benefit of
$0.8 million and $2.7 million, respectively, related to the reversal of
certain tax reserves. Excluding these reversals, net income would have been
$17.5 million in the 2005 period and $13.9 million in the 2004 period. Basic
earnings per common share were $0.96 in the 2005 period and $0.90 in the 2004
period. Diluted earnings per common share were $0.93 in the 2005 period and $0.83 in the 2004 period.
On October 31, 2005, the Company announced that it entered into a Stock
Purchase Agreement, dated as of October 31, 2005, with Honeywell
International, Inc., pursuant to which the Company will acquire all of the
issued and outstanding shares of Novar USA Inc. for a purchase price of $800
million. Novar USA, Inc. is the parent company of the businesses operated by
Clarke American and related companies, including Alcott Routon, Checks in the
Mail and B2Direct. Clarke American provides check-related products and
extensive servicing to financial institution customers. Alcott Routon
provides direct marketing programs based on analytics and predictive modeling
to help financial institutions target customers. Checks in the Mail supplies
checks and other financial documents directly to consumers, and B2Direct
offers customized business kits and treasury management services to
businesses.
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 September 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; (i)
unfavorable foreign currency fluctuations; and (j) the inability to consummate
the acquisition described above, and the related financings, on terms
favorable to the Company or at all. 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- Nov/09/2005 21:30 GMT
