-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RJHMF542yK0lgZqhyXlOPi9yZi3jMuDS9PHXdJZoIoC6g9ytk5E44RbFMYiRG2Vv hgu644fIJfzxAvW3V4YatA== 0000950152-03-009321.txt : 20031105 0000950152-03-009321.hdr.sgml : 20031105 20031105075933 ACCESSION NUMBER: 0000950152-03-009321 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031105 ITEM INFORMATION: FILED AS OF DATE: 20031105 FILER: COMPANY DATA: COMPANY CONFORMED NAME: REYNOLDS & REYNOLDS CO CENTRAL INDEX KEY: 0000083588 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 310421120 STATE OF INCORPORATION: OH FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10147 FILM NUMBER: 03977860 BUSINESS ADDRESS: STREET 1: ONE REYNOLDS WAY CITY: DAYTON STATE: OH ZIP: 45430 BUSINESS PHONE: 9374852000 MAIL ADDRESS: STREET 1: P.O. BOX 2608 CITY: DAYTON STATE: OH ZIP: 45401 8-K 1 l03894ae8vk.txt THE REYNOLDS AND REYNOLDS COMPANY UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: November 5, 2003 (Date of earliest event reported) THE REYNOLDS AND REYNOLDS COMPANY (Exact name of registrant as specified in the charter) OHIO 1-10147 31-0421120 (State or other jurisdiction of (Commission File No.) (IRS Employer incorporation) Identification No.)
THE REYNOLDS AND REYNOLDS COMPANY ONE REYNOLDS WAY KETTERING, OHIO 45402 (Address of Principal Executive Offices) (937) 485-2000 (Registrant's telephone number including area code) 115 SOUTH LUDLOW STREET DAYTON, OHIO 45402 (Former name or former address, if changed since last report) ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITIONS On November 5, 2003, The Reynolds and Reynolds Company issued an earnings release announcing its financial results for the year ended September 30, 2003. A copy of the earnings release is attached hereto as Exhibit 99.1 and hereby incorporated by reference. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE REYNOLDS AND REYNOLDS COMPANY By: /s/ Douglas M. Ventura ------------------------------------------------------- Douglas M. Ventura, Vice President, General Counsel and Secretary Dated: November 5, 2003
EXHIBIT INDEX ------------- 99.1 Press Release of The Reynolds and Reynolds Company dated November 5, 2003.
EX-99.1 3 l03894aexv99w1.txt EX-99.1 PRESS RELEASE Exhibit 99.1 [Reynolds & Reynolds LOGO] NEWS =============================================================================== REYNOLDS AND REYNOLDS REPORTS Q4 AND FISCAL YEAR RESULTS, OPTIMISTIC FOR FISCAL 2004, CONFIRMS GUIDANCE LIVE WEBCAST AT 11:00 AM EDT. CONFERENCE CALL AND REPLAY AVAILABLE AT REYREY.COM DAYTON, OHIO, Nov. 5, 2003 - The Reynolds and Reynolds Company (NYSE: REY) today reported financial results for the fourth quarter and fiscal year ending September 30, 2003. Fourth quarter revenues of $256 million were essentially flat compared to a year ago. For the year, revenues of $1 billion were 2 percent higher than last year. Fourth quarter earnings per share were 47 cents compared to 43 cents last year, a 9 percent increase over last year. Full year earnings per share were $1.69, up 7 percent over last year's $1.58 (excluding last year's accounting change for goodwill). Software Solutions, the company's largest segment, grew revenues 6 percent in the fourth quarter compared to last year, which was offset by declines in the smaller Transformation Solutions, Documents and Financial Services segments whose revenues were down 18 percent, 3 percent and 15 percent respectively versus a year ago. "We're on a mission to accelerate growth and we're very optimistic as we enter fiscal 2004," Lloyd `Buzz' Waterhouse, CEO, said. "Our backlog is at its highest level in years. The actions we announced last month including the acquisitions of Incadea and Third Coast Media, a strengthened management team and the strongest solutions portfolio in the industry place us in an excellent position to grow. We've established a leadership position in customer relationship management. Our entire organization is keenly focused on expanding our role as the company leading the transformation of automotive retailing, globally." "Our strong cash flow continued to allow us to invest in the business and execute our share repurchase program," Dale Medford, executive vice president and CFO, said. During the quarter, the company repurchased 1.5 million shares for $42 million, at an average price of $28.50 per share. For the fiscal year, the company repurchased 4.7 million shares at an average price of $26.99 per share. Approximately 8.2 million shares remain authorized for repurchase. FOR THE 2004 FISCAL YEAR the company currently expects: - Earnings per share of about $1.68 for the full fiscal year and about 30 cents per share for the first fiscal quarter (reflecting about 15 cents per share of annual stock compensation expense). - Revenue growth of 6 percent to 10 percent for the full fiscal year. - Return on equity to exceed 20 percent. - Operating margins to be approximately 18 percent. - Capital expenditures to total approximately $40 million. - Depreciation and amortization expense to total approximately $45 million. - Research and development expenses to be approximately $80 million. - Estimated tax rate of 41 percent to 42 percent. - To continue its share repurchase program throughout the year. - Fully diluted shares used to calculate full fiscal year EPS to be approximately 67 million shares. Reynolds and Reynolds ( www.reyrey.com ) is the leading provider of integrated solutions that help automotive retailers manage change and improve their profitability. Serving the automotive retailing industry since 1927, Reynolds enables OEMs and retailers to work together to build the lifetime value of their customers. The company's award-winning product, service and training solutions include a full range of retail and enterprise management systems, Web and Customer Relationship Management solutions, learning and consulting services, documents, data management and integration, networking and support and leasing services. Reynolds serves more than 20,000 customers. They comprise nearly 90 percent of the automotive retailers and virtually all OEMs doing business in North America. The Reynolds International Division serves automotive retailers and OEMs through Incadea AG and its partner network as well as a worldwide consulting practice. Certain statements in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on current expectations, estimates, forecasts and projections of future company or industry performance based on management's judgment, beliefs, current trends and market conditions. Forward-looking statements made or to be made by or on behalf of the company may be identified by the use of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions. Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed, forecasted or implied in the forward-looking statements. See also the discussion of factors that may affect future results contained in the company's Current Report on Form 8-K filed with the SEC on August 11, 2000, which we incorporate herein by reference. The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. # # # REY0359 (Editors' Note: Segment Report Attached) CONTACT:
MEDIA INVESTORS Paul Guthrie Mark Feighery John Shave 937.485.8104 937.485.8107 937.485.1633 paul_guthrie@reyrey.com mark_feighery@reyrey.com john_shave@reyrey.com - ----------------------- ------------------------ ---------------------
THE REYNOLDS AND REYNOLDS COMPANY SEGMENT REPORT (UNAUDITED) (IN THOUSANDS EXCEPT PER SHARE DATA)
FOURTH QUARTER TWELVE MONTHS For The Periods Ended ---------------------- ---------------------- September 30 2003 2002 (1) Change 2003 2002 (1) Change - --------------------- ------- -------- ------- --------- ------- ------- CONSOLIDATED Net Sales and Revenues $256,093 $256,704 0% $1,008,245 $992,383 2% Gross Profit $143,206 $148,135 -3% $564,664 $578,647 -2% Gross Margin 55.9% 57.7% 56.0% 58.3% Operating Income $49,376 $49,461 0% $190,079 $178,527 6% Operating Margin 19.3% 19.3% 18.9% 18.0% Income Before Income Taxes $50,902 $49,443 3% $194,469 $164,948 18% Provision for Income Taxes $17,909 $18,591 $75,452 $49,396 Income Before Cumulative Effect $32,993 $30,852 7% $119,017 $115,552 3% of Accounting Change Cumulative Effect of Accounting $0 $0 $0 ($36,563) Change (2) Net Income $32,993 $30,852 7% $119,017 $78,989 51% Earnings Per Common Share (Diluted) Income Before Cumulative $0.47 $0.43 9% $1.69 $1.58 7% Effect of Accounting Change Cumulative Effect of $0.00 $0.00 $0.00 ($0.50) Accounting Change (2) Net Income $0.47 $0.43 9% $1.69 $1.08 56% Average Shares Outstanding 70,470 72,021 70,606 73,357 SOFTWARE SOLUTIONS Net Sales and Revenues $169,645 $160,431 6% $666,186 $613,883 9% Gross Profit $102,397 $100,251 2% $403,155 $387,231 4% Gross Margin 60.4% 62.5% 60.5% 63.1% Operating Income $40,678 $36,991 10% $162,041 $126,325 28% Operating Margin 24.0% 23.1% 24.3% 20.6% TRANSFORMATION SOLUTIONS Net Sales and Revenues $31,911 $38,738 -18% $131,288 $153,268 -14% Gross Profit $9,480 $12,905 -27% $38,939 $54,391 -28% Gross Margin 29.7% 33.3% 29.7% 35.5% Operating Income (Loss) ($5,293) ($3,688) ($25,234) ($8,066) Operating Margin -16.6% -9.5% -19.2% -5.3% DOCUMENTS Net Sales and Revenues $45,934 $47,447 -3% $174,239 $183,523 -5% Gross Profit $24,655 $27,485 -10% $94,881 $105,961 -10% Gross Margin 53.7% 57.9% 54.5% 57.7% Operating Income $9,134 $10,346 -12% $32,551 $37,277 -13% Operating Margin 19.9% 21.8% 18.7% 20.3% FINANCIAL SERVICES Net Sales and Revenues $8,603 $10,088 -15% $36,532 $41,709 -12% Gross Profit $6,674 $7,494 -11% $27,689 $31,064 -11% Gross Margin 77.6% 74.3% 75.8% 74.5% Operating Income $4,857 $5,812 -16% $20,721 $22,991 -10% Operating Margin 56.5% 57.6% 56.7% 55.1%
(1) Certain reclassifications were made to last year's financial statements to conform with the presentation used in the current year. (2) During the second quarter of fiscal year 2002, the company completed the adoption of Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets." The company recorded a $36,563 after-tax charge representing the cumulative effect of the accounting change. -----END PRIVACY-ENHANCED MESSAGE-----