Exhibit 99
FOR IMMEDIATE RELEASE
---------------------
For more information, contact:
Ira Stanley
Vice President, Chief Financial Officer
937/291-8051
[email protected]
MCSi announces Second Quarter 51% Sales Increase
and 32% Earnings per share growth
DAYTON, OHIO - July 25, 2000 - MCSi, Inc., (Nasdaq: MCSI - formerly Miami
Computer Supply Corp.), today reported record sales and earnings per share for
the second quarter ended June 30, 2000. The quarter represented MCSi's
fifteenth consecutive quarterly earnings per share increase since the
Company's November, 1996 IPO, and the highest quarterly levels of revenue and
net income in the Company's history.
For the three months ended June 30, 2000:
* Earnings per share (basic and diluted) rose 32%, to $0.29 compared to
$0.22 a year ago.
* Net sales for the second quarter rose 51%, to $238.6 million versus
$158.5 million in the same prior year period.
> Gross margins in the 2000 second quarter reached a level of
22.1%, a significant increase compared to gross margins of
19.8% for the 1999 second quarter. The increase in gross
margins reflects a greater percentage of higher margin
audio-visual system projects in the sales mix.
* Operating income for the second quarter rose 52% to $10.5 million
compared to $6.9 million for the same period in the prior year.
* Net income rose 48%, to $3.7 million from $2.5 million for the same
period last year.
* Systems integration sales increased to a record 23% or $56 million of
total sales, up from 14.0% or $22 million of total sales for the same
period in the prior year. Average order size for systems integration
projects was $275,000.
For the six months ended June 30, 2000:
* Earnings per share (basic) increased 37%, to $0.59 from $0.43 per
share for the comparable period last year, and earnings per share
(diluted) 36%, to $0.57 from $0.42 per share for the comparable
period last year.
* Net sales increased 42%, to $444.5 million from $312.4 million for
the comparable period in 1999.
MSCi, Inc.
July 25, 2000
Page 2 of 5
> Gross margins in this period reached a level of 22.6%, a
significant increase compared to gross margins of 19.4% for
the comparable period last year.
* Operating income increased 49%, to $20.1 million from $13.4 million
for the comparable period last year.
* Net income increased 47%, to $7.2 million from $4.9 million for the
same period last year.
Commenting on the Company's performance, Michael E. Peppel, Chairman,
President and Chief Executive Officer, stated, "The performance by our 2,200
people in our 126 offices across North America helped us to grow our business
at a rate of 51%. MCSi's commitment to providing solutions that address
customer needs at every level of the business transaction continuum is
illustrated by our ever growing list of national clients. The increased blend
in our business supports our belief that we can continue to grow the higher
margin systems integration side of our business."
Mr. Peppel concluded, "Our expertise lies in our ability to deliver
comprehensive technology solutions to businesses in today's highly competitive
environment. We pride ourselves on creating long term "partnerships" with our
customers and providing them with the most complete services for the
convergence of data, voice and video technology."
MCSi, Inc. also announced that Thomas C. Winstel has retired from his position
as a Director of MCSi and Ira H. Stanley, Vice President, Chief Financial
Officer, has been elected to succeed Mr. Winstel as a Director of the Board
for the Company.
About MCSi
MCSi has emerged as the nation's leading systems integrator of state-of-the-
art presentation and broadcast facilities. MCSi's foresight and ability to
converge three key industries: audio-visual systems, broadcast media and
computer technology, combined with design-build and engineering expertise,
computer networking and configuration services, an extensive product line, and
quality technical support services, has given MCSi a distinct advantage in the
systems integration marketplace and contributed to the dramatic growth of the
company.
MCSi's scalable solutions address clients at every level of the business
transaction continuum. Products and services are available directly through
the Company and its 650 sales specialists, many of whom provide enterprise-
wide solutions and/or work exclusively with clients on strategic initiatives.
Customers benefit from MCSi's years of experience, extensive product
MSCi, Inc.
July 25, 2000
Page 3 of 5
knowledge, and strong relationships maintained with manufacturers and
technology leaders. With the largest selection of audio-visual/presentation,
computer, and office automation products and the legacy of technical support
and field service in more than 126 locations across the U.S.A. and Canada,
MCSi's customers are provided with a unique value that extends beyond the
product.
MCSi's products are also provided over a robust business-to-business e-
commerce platform powered by its subsidiary, Zengine, Inc. Additional
information regarding MCSi can be obtained at www.mcsinet.com (but is not part
of this release).
The matters discussed in this press release which are not historical facts
contain forward-looking information with respect to plans, projections or future
performance of MCSi, the occurrence of which involve risks and uncertainties
which include, but are not limited to, general economic conditions, industry
trends, functionality of hardware and software, actions of competitors, MCSi's
ability to manage its growth, factors relating to its acquisition/merger
strategy, actions of regulatory authorities, restrictions imposed by its debt
arrangements, dependence upon key personnel, dependence upon key suppliers,
customer demand, risks relating to international operations, dependence on its
computer systems and other factors. A complete description of those factors, as
well as other factors which could affect MCSi's business, is set forth in MCSi's
Form 10-K for the year ended December 31, 1999 and its Form 10-Q for the three
months ended March 31, 2000.
MSCi, Inc.
July 25, 2000
Page 4 of 5
MCSi, Inc.
Consolidated Statement of Operations
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
June 30,
-------
2000 1999
---- ----
Net sales. . . . . . . . . . . . . . . . . . . . $ 238,581 $ 158,516
Cost of sales. . . . . . . . . . . . . . . . . . 185,925 127,053
---------- ----------
Gross profit . . . . . . . . . . . . . . . . . . 52,656 31,463
Selling, general and
administrative expenses. . . . . . . . . . . . 42,201 24,541
---------- ----------
Operating income . . . . . . . . . . . . . . . . 10,455 6,922
Interest expense . . . . . . . . . . . . . . . . (3,761) (2,393)
Other income . . . . . . . . . . . . . . . . . . (255) 152
---------- ----------
Profit before taxes. . . . . . . . . . . . . . . 6,439 4,681
Provision for income taxes . . . . . . . . . . . 2,725 2,157
---------- ----------
Net income. . . . . . . . . . . . . . . . . . . $ 3,714 $ 2,524
========== ==========
Earnings per share of common stock - basic and
diluted. . . . . . . . . . . . . . . . . . . . . $ 0.29 $ 0.22
========== ==========
Weighted number of common
shares outstanding - basic . . . . . . . . . . 12,452,152 11,433,345
========== ==========
Weighted number of common
shares outstanding - diluted . . . . . . . . . 12,664,553 11,633,652
========== ==========
MSCi, Inc.
July 25, 2000
Page 5 of 5
MCSi, Inc.
Consolidated Statement of Operations
(Unaudited)
(Dollars in thousands, except per share data)
Six Months Ended
June 30,
-------
2000 1999
---- ----
Net sales. . . . . . . . . . . . . . . . . . . . $ 444,519 $ 312,385
Cost of sales. . . . . . . . . . . . . . . . . . 343,913 251,895
---------- ----------
Gross profit . . . . . . . . . . . . . . . . . . 100,606 60,490
Selling, general and
administrative expenses. . . . . . . . . . . . 80,593 47,031
---------- ----------
Operating income . . . . . . . . . . . . . . . . 20,012 13,459
Interest expense . . . . . . . . . . . . . . . . (7,180) (4,524)
Other income . . . . . . . . . . . . . . . . . . (117) 260
---------- ----------
Profit before taxes. . . . . . . . . . . . . . . 12,716 9,195
Provision for income taxes . . . . . . . . . . . 5,496 4,251
---------- ----------
Net income . . . . . . . . . . . . . . . . . . . $ 7,220 $ 4,944
========== ==========
Earnings per share of common stock - basic . . . $ 0.59 $ 0.43
========== ==========
Earnings per share of common stock - diluted . . $ 0.57 $ 0.42
========== ==========
Weighted number of common
shares outstanding - basic . . . . . . . . . . 12,224,110 11,396,425
========== ==========
Weighted number of common
shares outstanding - diluted . . . . . . . . . 12,492,034 11,646,914
========== ==========
-End-
