EX-99.1 3 d97942exv99w1.txt PRESS RELEASE DATED JUNE 24, 2002 EXHIBIT 99.1 [INTERVOICE-BRITE LOGO] NEWS RELEASE FOR IMMEDIATE RELEASE CONTACTS InterVoice-Brite, Inc. Rob-Roy J. Graham Chief Financial Officer +1 (972) 454-8712 28-02 INTERVOICE-BRITE ANNOUNCES FIRST QUARTER RESULTS SALES OF $38.4 MILLION DALLAS -- JUNE 24, 2002 -- InterVoice-Brite, Inc., (NASDAQ:INTV) announced today that sales during the first quarter of its fiscal 2003, which ended May 31, 2002, were $38.4 million. Earnings before interest, taxes, depreciation and amortization (EBITDA), when adjusted for the special charges discussed below, for the quarter was a loss of $3.1 million, or $0.09 per share. As previously discussed, net special charges of $2.6 million were booked during the quarter relating to the Company's strategic actions. Additionally, the Company booked non-cash, special charges of $0.4 million relating to the write off of previous debt issuance costs and $15.8 million resulting from goodwill impairment as a result of the Company's required adoption of Statements of Financial Accounting Standards (SFAS) Nos. 141 and 142 (please see the Company's Form 10-K filed with the Securities and Exchange Commission on May 30, 2002 for a full description of how SFAS 141 and 142 pertain to the Company). The Company also recognized a one-time tax benefit of $5.7 million, offset by a $1.4 million tax valuation allowance, as a result of changes in federal tax laws enacted in March 2002. The Company's net loss during the quarter, including these special charges and tax benefit, was $24.5 million, or $0.72 per share. "As an element of our goal of achieving positive cash flow as quickly as possible, we continue to actively manage our balance sheet," said Rob Graham, the Company's Chief Financial Officer. "For example, we reduced our receivables days sales outstanding (DSO's) to 85 days, down from 133 days last quarter, and we reduced our net inventories by $4.2 million during the quarter." NEWS RELEASE FIRST QUARTER RESULTS "We met the goals we set out to accomplish this quarter," said David Brandenburg, the Company's Chairman and Chief Executive Officer. "Our debt has been restructured, we increased sales quarter over quarter, we built backlog and we reduced operating expenses. Our second quarter goals are much the same: emphasizing sales and backlog growth while reducing expenses." "We're pleased to note," Mr. Brandenburg continued, "that our enterprise customers continue to be attracted to the strong investment returns offered by our speech-enabled products. Likewise, our networks customers are attracted by our products' abilities to create new revenue streams and to reduce costs. And we have begun a process to effect an internal reorganization and consolidation to reduce expenses and to more efficiently and effectively manage the Company. While we are streamlining our infrastructure through elimination of our former divisional organization, we will continue to have separate enterprise and network sales, marketing and product management groups to maintain market focus. I'm pleased to announce that Bob Ritchey will transition from his current role as head of our Enterprise operations to President of the Company." The Company has scheduled a conference call for Tuesday, June 25 at 10:30 a.m. Central Daylight Time to discuss its first quarter results and its outlook for the future. To participate in the call, dial (719) 867-0720, confirmation code 117418. A replay of the conference call will be available at the Company's web site: www.intervoice-brite.com. This press release contains forward-looking statements which are based on Company management's current beliefs. Readers are cautioned to read the risks and uncertainties described in the Company's filings with the Securities and Exchange Commission, including Forms 8-K, 10-Q and 10-K. These risks and uncertainties could cause actual results to vary materially from the forward-looking statements in this press release. ABOUT INTERVOICE-BRITE With systems operating in more than 75 countries, InterVoice-Brite is a technology leader in speech-enabled interactive information solutions and enhanced services for network service providers, and is a premier communications and e-commerce ASP. For more information, visit www.intervoice-brite.com. INTERVOICE-BRITE, INC. CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Data) May 31, 2002 February 28, 2002 ----------------- ----------------- (Unaudited) ASSETS Current Assets Cash and cash equivalents $ 13,993 $ 17,646 Trade accounts receivable, net of allowance for doubtful accounts of $2,931 in fiscal 2003 and $3,492 in fiscal 2002 36,273 40,783 Income tax receivable 7,908 -- Inventory 23,354 27,524 Prepaid expenses and other current assets 6,673 6,152 Deferred income taxes 811 819 ----------------- ----------------- 89,012 92,924 ----------------- ----------------- Property and Equipment Building 16,860 19,530 Computer equipment and software 29,911 30,379 Furniture, fixtures and other 2,635 2,328 Service equipment 7,932 7,902 ----------------- ----------------- 57,338 60,139 Less allowance for depreciation 34,670 33,787 ----------------- ----------------- 22,668 26,352 Other Assets Intangible assets, net of amortization of $33,544 in fiscal 2003 and $31,752 in fiscal 2002 31,458 37,439 Goodwill, net of accumulated amortization of $7,672 in fiscal 2002 3,401 16,500 Other assets 2,045 2,153 ----------------- ----------------- $ 148,584 $ 175,368 ================= ================= LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 18,998 $ 22,661 Accrued expenses 14,096 14,988 Customer deposits 7,073 5,963 Deferred income 24,514 24,426 Current portion of long term borrowings 7,944 6,000 ----------------- ----------------- 72,625 74,038 Long term borrowings, net of current portion 18,980 23,980 Other long term liabilities 1,653 1,916 Stockholders' Equity Preferred Stock, $100 par value--2,000,000 shares authorized: none issued Common Stock, no par value, at nominal assigned value--62,000,000 shares authorized: 34,047,216 issued and outstanding in fiscal 2003, 34,029,180 issued and outstanding in fiscal 2002 17 17 Additional capital 65,040 61,725 Retained earnings (deficit) (4,852) 19,618 Accumulated other comprehensive loss (4,879) (5,926) ----------------- ----------------- Stockholders' equity 55,326 75,434 ----------------- ----------------- $ 148,584 $ 175,368 ================= =================
INTERVOICE-BRITE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In Thousands, Except Per Share Data) Three Months Ended ---------------------------------------- May 31, 2002 May 31, 2001 ------------ ------------ Sales Systems $ 21,635 $ 38,442 Services 16,781 23,064 ------------ ------------ 38,416 61,506 ------------ ------------ Cost of goods sold Systems 16,118 18,142 Services 6,671 9,650 ------------ ------------ 22,789 27,792 ------------ ------------ Gross margin Systems 5,517 20,300 Services 10,110 13,414 ------------ ------------ 15,627 33,714 Research and development expenses 6,005 7,563 Selling, general and administrative expenses 17,693 19,615 Amortization of acquisition related intangible assets 1,776 2,280 Amortization of goodwill -- 1,074 ------------ ------------ Income (loss) from operations (9,847) 3,182 Other income (expense) (48) 506 Interest expense (1,465) (1,341) ------------ ------------ Income (loss) before taxes and the cumulative effect of a change in accounting principle (11,360) 2,347 Income taxes (benefit) (2,681) 939 ------------ ------------ Income (loss) before the cumulative effect of a change in accounting principle (8,679) 1,408 Cumulative effect on prior years of a change in accounting principle (15,791) -- ------------ ------------ Net income (loss) $ (24,470) $ 1,408 ============ ============ Per Basic Share: Income (loss) before the cumulative effect of a change in accounting principle $ (0.26) $ 0.04 Cumulative effect on prior years of a change in accounting principle (0.46) -- ------------ ------------ Net income (loss) $ (0.72) $ 0.04 ============ ============ Per Diluted Share: Income (loss) before the cumulative effect of a change in accounting principle $ (0.26) $ 0.04 Cumulative effect on prior years of a change in accounting principle (0.46) -- ------------ ------------ Net income (loss) $ (0.72) $ 0.04 ============ ============
INTERVOICE-BRITE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In Thousands) Three Months Ended ------------------------------ May 31, 2002 May 31, 2001 ------------ ------------ Operating Activities Income (loss) before the cumulative effect of a change in accounting principle $ (8,679) $ 1,408 Adjustments to reconcile income (loss) before the cumulative effect of a change in accounting principle to net cash provided by (used in) operating activities: Depreciation and amortization 4,176 6,446 Other changes in operating activities 3,696 (4,801) ------------ ------------ Net cash provided by (used in) operating activities (807) 3,053 ------------ ------------ Investing Activities Proceeds from sale of assets 1,852 -- Purchases of property and equipment (601) (1,374) ------------ ------------ Net cash provided by (used in) investing activities 1,251 (1,374) ------------ ------------ Financing Activities Paydown of debt (26,000) (5,784) Debt issuance costs (1,632) -- Borrowings 24,000 -- Exercise of stock options 88 565 ------------ ------------ Net cash used in financing activities (3,544) (5,219) ------------ ------------ Effect of exchange rates on cash (553) (108) ------------ ------------ Decrease in cash and cash equivalents (3,653) (3,648) Cash and cash equivalents, beginning of period 17,646 15,901 ------------ ------------ Cash and cash equivalents, end of period $ 13,993 $ 12,253 ============ ============
INTERVOICE-BRITE, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited)
(In Thousands, Except Share Data) Common Stock Accumulated Other ------------------------- Additional Retained Comprehensive Shares Amount Capital Earnings Loss Total ---------- ---------- ---------- ---------- ----------------- ---------- Balance at February 28, 2002 34,029,180 $ 17 $ 61,725 $ 19,618 $ (5,926) $ 75,434 Net income -- -- -- (24,470) -- (24,470) Foreign currency translation adjustment -- -- -- -- 855 855 Valuation adjustment of interest rate swap hedge, net of tax effect of $(118) -- -- -- -- 192 192 Exercise of stock options 18,036 -- 88 -- -- 88 Tax benefit from exercise of stock options -- -- 2,171 -- -- 2,171 Issuance of warrants -- -- 1,056 -- -- 1,056 ---------- ---------- ---------- ---------- ----------------- ---------- Balance at May 31, 2002 34,047,216 $ 17 $ 65,040 $ (4,852) $ (4,879) $ 55,326 ========== ========== ========== ========== ================= ==========
INTERVOICE-BRITE, INC. RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA For the Quarter Ended May 31, 2002
($000s) Per Share --------- --------- Net loss $ (24,470) $ (0.72) Add back EBITDA elements Interest 1,465 0.04 Taxes (2,681) (0.08) Depreciation and amortization 4,176 0.12 Other (income) expense 48 0.00 Cumulative effect of a change in accounting principle 15,791 0.46 --------- --------- EBITDA (5,671) (0.17) Add back proforma adjustments 2,588 0.08 --------- --------- Adjusted EBITDA $ (3,083) (0.09) ========= ========= Basic shares used in per share calculation: 34,039
Recap of Proforma Adjustments to Operations COGS R&D SG&A Total ------------------------------------------- -------- -------- -------- -------- Severance payments and related benefits $ 1,095 $ 395 $ 960 $ 2,450 Adjustments to severance accruals from fiscal 2002 -- -- (231) (231) Facility closure 244 125 -- 369 -------- -------- -------- -------- Total $ 1,339 $ 520 $ 729 $ 2,588 ======== ======== ======== ========