Clarke American Announces Pro Forma Full-Year 2005 Results
2006-04-12 08:30 (New York)
SAN ANTONIO, April 12 - PRNewswire - Clarke American Corp. provided its
annual report, containing its financial results for the three years ended
December 31, 2005, to its creditors as required by its financing arrangements.
That annual report has been furnished to the SEC as an exhibit to a current
report on Form 8-K of M & F Worldwide Corp. (NYSE: MFW) on April 3, 2006. The
2005 consolidated results discussed below are pro forma results, giving effect
to the acquisition of Clarke American by M & F Worldwide as if it had occurred
on January 1, 2005.(1) The 2005 results discussed below represent the
arithmetic combination of all historical periods in the year ended December
31, 2005.
Clarke American provides checks, check-related products and marketing
services to financial institutions and individual customers. On December 15,
2005, M & F Worldwide Corp. completed the acquisition of Clarke American from
Honeywell International Inc. For more information about the business of M & F
Worldwide, please see its filings with the SEC, including its annual report on
Form 10-K for the year ended December 31, 2005.
For the pro forma year ended December 31, 2005, which includes the periods
prior to its acquisition by M & F Worldwide, Clarke American's consolidated
revenues increased to $618.4 million, compared with $607.6 million for 2004.
Clarke American's net income decreased from $64.4 million in 2004 to $11.8
million in pro forma 2005. The decrease in net income was primarily due to an
increase in cost of sales that resulted from purchase accounting adjustments
(and resulting increases in depreciation and amortization) related to Clarke
American being acquired by M & F Worldwide and increased interest expense due
to acquisition-related financing. Adjusted EBITDA(2) increased to $139.5
million in pro forma 2005, compared to $134.9 million in 2004. Adjusted
EBITDA is a non-GAAP measure that is defined in the footnotes to this release
and which is reconciled to net income, the most directly comparable GAAP
measure, in the accompanying financial tables.
"Clarke American exceeded expectations in 2005 and successfully completed
the process of selling the business," said Charles Dawson, President and CEO
of Clarke American. "We at Clarke American look forward to working with our
new parent company well into the future. We believe that working with the
support of M & F Worldwide's management has already enhanced and will continue
to improve our ability to provide the highest quality product and service
offerings to our financial institution partners and customers."
Clarke American will hold a conference call today at 9:30 a.m. EDT (8:30
a.m. CDT) which will be webcast live at http://www.clarkeamerican.com . To
access the call, click on "Company Information" and then "Earnings Call". A
copy of the press release will be available under the "Press Release" section
of the Clarke American website. An archive of the webcast will also be
available at http://www.clarkeamerican.com from Wednesday, April 12th through
Wednesday, April 19th.
