<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
FORM 10-Q/A
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarter ended September 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 0-26674
DATA DOCUMENTS INCORPORATED
(Exact name of registrant as specified in its charter)
DELAWARE 47-0714942
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4205 SOUTH 96TH STREET, OMAHA, NEBRASKA
(Address of principal executive offices)
68127
(Zip Code)
(402) 339-0900
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
YES X NO
----- -----
The number of shares outstanding of the Registrant's Common Stock, as of
September 30, 1997 was 9,710,226 (excluding 269,607 treasury shares).
<PAGE> 2
DATA DOCUMENTS INCORPORATED
INDEX
PART I. FINANCIAL INFORMATION
<TABLE>
<CAPTION>
Page Number
-----------
<S> <C> <C>
ITEM 1: FINANCIAL STATEMENTS:
CONSOLIDATED BALANCE SHEETS -
At September 30, 1997 and December 31, 1996 3
CONSOLIDATED STATEMENTS OF OPERATIONS -
For the Three and Nine Months Ended September 30, 1997 and 1996 4
CONSOLIDATED STATEMENTS OF CASH FLOWS -
For the Nine Months Ended September 30, 1997 and 1996 5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6 - 8
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 9 -11
PART II. OTHER INFORMATION
ITEM 2: CHANGES IN SECURITIES 12
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K 12-13
SIGNATURES 14
</TABLE>
2
<PAGE> 3
PART I - FINANCIAL INFORMATION
ITEM I. - FINANCIAL STATEMENTS
DATA DOCUMENTS INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1997 AND DECEMBER 31, 1996
(COLUMNAR AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
--------------------------
1997 1996
--------- ---------
(UNAUDITED)
<S> <C> <C>
ASSETS
CURRENT ASSETS:'
Cash and cash equivalents $ 1,371 $ 11,151
Accounts receivable, net of allowance of $ 506,000 and $311,000 36,817 31,459
Inventories (Note B) 39,480 37,979
Other current assets 1,474 898
--------- ---------
Total Current Assets 79,142 81,487
PROPERTY, PLANT AND EQUIPMENT 43,632 37,328
GOODWILL, net of accumulated amortization of $3,039,000 and $2,689,000 18,437 9,837
DEFERRED FINANCING COSTS AND OTHER ASSETS 5,441 5,325
--------- ---------
$ 146,652 $ 133,977
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued liabilities $ 20,165 $ 18,566
Accrued compensation 3,584 3,453
Accrued interest payable 2,071 4,072
Current maturities of long-term obligations 3,892 934
Current and deferred income taxes 243 1,017
--------- ---------
Total Current Liabilities 29,955 28,042
POST-RETIREMENT BENEFITS 1,905 1,881
LONG-TERM OBLIGATIONS, net of current maturities 65,578 63,965
DEFERRED INCOME TAXES 3,040 2,413
COMMITMENTS AND CONTINGENCIES (Note C)
COMMON STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value; 5,000,000 shares authorized; none issued -- --
Common stock, $0.001 par value; 15,000,000 shares authorized; 9,979,833 and
9,564,831 shares issued; 9,710,226 and 9,295,224 shares outstanding, respectively 10 10
Additional paid-in capital 32,024 32,020
Retained earnings 14,328 5,881
Stockholder notes receivable (188) (235)
Treasury stock, 269,607 shares acquired at no cost -- --
--------- ---------
Total Common Stockholders' Equity 46,174 37,676
--------- ---------
$ 146,652 $ 133,977
========= =========
</TABLE>
See Notes to Consolidated Financial Statements.
3
<PAGE> 4
DATA DOCUMENTS INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(COLUMNAR AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- --------------------------
1997 1996 1997 1996
----------- ----------- ----------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
NET SALES $ 65,687 $ 59,794 $ 192,081 $ 184,472
COST OF GOODS SOLD 48,677 43,638 142,015 135,880
----------- ----------- ----------- -----------
Gross Profit 17,010 16,156 50,066 48,592
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 9,927 9,484 28,936 28,286
----------- ----------- ----------- -----------
Operating Income 7,083 6,672 21,130 20,306
DEBT EXPENSE, including amortization of
$203,000, $206,000, $602,000 and $621,000 2,326 2,416 6,933 7,376
----------- ----------- ----------- -----------
INCOME BEFORE INCOME TAXES 4,757 4,256 14,197 12,930
INCOME TAX EXPENSE 1,932 1,726 5,750 5,246
----------- ----------- ----------- -----------
INCOME BEFORE EXTRAORDINARY ITEM 2,825 2,530 8,447 7,684
EXTRAORDINARY ITEM, net of tax (Note D) -- -- -- (54)
----------- ----------- ----------- -----------
NET INCOME $ 2,825 $ 2,530 $ 8,447 $ 7,630
=========== =========== =========== ===========
EARNINGS PER COMMON SHARE:
Primary:
Income before extraordinary item $ 0.28 $ 0.25 $ 0.85 $ 0.77
Extraordinary item -- -- -- --
----------- ----------- ----------- -----------
Net Income $ 0.28 $ 0.25 $ 0.85 $ 0.77
=========== =========== =========== ===========
WEIGHTED AVERAGE COMMON AND
COMMON EQUIVALENT SHARES
OUTSTANDING:
Primary 10,050,942 9,955,759 9,987,460 9,940,141
=========== =========== =========== ===========
</TABLE>
See Notes to Consolidated Financial Statements.
4
<PAGE> 5
DATA DOCUMENTS INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(COLUMNAR AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
---------------------
1997 1996
-------- --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 8,447 $ 7,630
Adjustments to reconcile net income to net cash flows from operating
activities:
Depreciation 3,080 3,123
Amortization of intangibles 1,236 1,091
Extraordinary item -- 37
Provision for deferred income taxes (482) (309)
Gain on sale of property, plant and equipment (16) (65)
Changes in operating assets and liabilities (net of effects from purchase
of Moore Labels, Inc.):
Accounts receivable (3,954) 2,710
Inventories (787) 994
Other current assets (177) (370)
Accounts payable and accrued liabilities 1,272 1,297
Accrued interest (2,001) (1,884)
Current taxes on income and other (337) 402
Other assets (283) 380
-------- --------
Net cash flows from operating activities 5,998 15,036
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (3,819) (3,222)
Proceeds from the sale of property, plant and equipment 28 117
Investment in Moore Labels, Inc. - net of cash acquired (13,972) --
-------- --------
Net cash flows from investing activities (17,763) (3,105)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from debt 2,790 --
Payment of debt (724) (1,239)
Change in liability for outstanding checks (132) (3,034)
Payments for stock registration costs -- (142)
Proceeds from exchange of stock options and warrants 4 --
Principal receipts on stockholder notes receivable 47 23
-------- --------
Net cash flows from financing activities 1,985 (4,392)
-------- --------
NET CHANGE IN CASH (9,780) 7,539
CASH AND CASH EQUIVALENTS, Beginning of period 11,151 2,024
-------- --------
CASH AND CASH EQUIVALENTS, End of period $ 1,371 $ 9,563
======== ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $ 8,719 $ 8,822
======== ========
Income taxes $ 6,573 $ 4,986
======== ========
</TABLE>
See Notes to Consolidated Financial Statements.
5
<PAGE> 6
DATA DOCUMENTS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997 AND 1996
(UNAUDITED)
- --------------------------------------------------------------------------------
A. MANAGEMENT STATEMENTS
The consolidated financial statements of DATA DOCUMENTS INCORPORATED
(Data Documents) include the accounts of its wholly-owned subsidiaries
Data Documents, Inc. (DDI), PBF Washington, Inc. (PBF), Cal Emblem
Labels, Inc. (Cal Emblem) and Moore Labels, Inc. (Moore Labels). The
summarized financial information of DDI (see Note E) include the
accounts of its wholly-owned subsidiaries PBF, Cal Emblem and Moore
Labels. All significant intercompany transactions and accounts have been
eliminated during consolidation.
The consolidated financial statements of the Company contained herein
should be read in conjunction with the financial statements included in
the Company's Annual Report on Form 10-K for the year ended December 31,
1996.
The consolidated financial statements are unaudited and reflect all
adjustments (consisting only of normal and recurring adjustments) that
are, in the opinion of management, necessary for a fair presentation of
the financial position, results of operations and cash flows for the
interim periods. The results of operations and cash flows for the nine
months ended September 30, 1997 are not necessarily indicative of the
results for the year ending December 31, 1997.
Certain reclassifications have been made to the 1996 financial
statements to conform to those classifications used in 1997.
B. INVENTORIES
Inventories consisted of (in thousands):
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
----------------------------------------
1997 1996
(UNAUDITED)
<S> <C> <C>
Finished goods $ 29,832 $ 28,739
Work in process 1,397 1,264
Raw materials 7,243 7,032
Supplies and spare parts 1,008 944
--------- --------
$ 39,480 $ 37,979
========= ========
</TABLE>
Substantially all inventories were valued using the LIFO method. If the
FIFO method of inventory accounting had been used, inventories would
have been lower than reported by $4,676,000 and $3,500,000 at September
30, 1997 and December 31, 1996, respectively. On a FIFO basis, operating
income would have been lower by $890,000 and $710,000, respectively, for
the three months ended September 30, 1997 and September 30, 1996, and
$1,176,000 and $1,852,000 for the nine months ended September 30, 1997
and September 30, 1996. The FIFO cost of inventories approximates
replacement cost.
C. COMMITMENTS AND CONTINGENCIES
The Company is subject to lawsuits and claims which arise out of the
normal course of its business. In the opinion of management, the
disposition of such claims will not have a material adverse effect on
the Company's financial position or results of operations.
6
<PAGE> 7
D. EXTRAORDINARY ITEM
In June 1996, the Company incurred an extraordinary charge of $54,000,
net of income tax benefit of $34,000, for the write-off of unamortized
deferred financing costs, unamortized original issue discount, and
certain premium on reacquisition associated with the repurchase of
$500,000 of Senior Notes.
E. SUMMARIZED FINANCIAL INFORMATION
Following is the summarized financial information of DDI and its
subsidiaries (in thousands):
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
-----------------------------------
1997 1996
(UNAUDITED)
<S> <C> <C>
Current assets $ 79,142 $ 81,487
Noncurrent assets $ 67,510 $ 52,490
Current liabilities $ 29,955 $ 28,042
Noncurrent liabilities $ 70,523 $ 68,259
</TABLE>
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------------------- ---------------------------
1997 1996 1997 1996
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net sales $ 65,687 $ 59,794 $ 192,081 $ 184,472
Gross profit $ 17,010 $ 16,156 $ 50,066 $ 48,592
Net income $ 2,825 $ 2,530 $ 8,447 $ 7,630
</TABLE>
Following is the summarized financial information of PBF and Cal Emblem
(wholly-owned subsidiaries of DDI), which are guarantors of the Senior
Notes.
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
----------------------------------
1997 1996
(UNAUDITED)
<S> <C> <C>
Current assets $ 6,977 $ 6,849
Noncurrent assets $ 9,312 $ 8,813
Current liabilities $ 7,523 $ 7,474
Noncurrent liabilities $ 629 $ 883
</TABLE>
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------------------- -------------------------------
1997 1996 1997 1996
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net sales $ 8,069 $ 8,489 $ 24,814 $ 25,169
Gross profit $ 1,577 $ 1,866 $ 4,950 $ 5,114
Net income $ 229 $ 368 $ 832 $ 755
</TABLE>
7
<PAGE> 8
F. RECENTLY ISSUED ACCOUNTING STANDARDS
In June 1996, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards (SFAS) No. 125, Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities, which established accounting and reporting standards for
such transfers. The Company has adopted SFAS No. 125 effective January
1, 1997 as required. The impact on the Company's financial position and
results of operations was not material.
In February 1997, the Financial Accounting Standards Board issued SFAS
No. 128, Earnings Per Share, which specifies the computation,
presentation and disclosure requirements for earnings per share. SFAS
No. 128 is applicable for fiscal years ending after December 15, 1997.
The objective of the statement is to simplify the computation of
earnings per share and replaces primary and fully diluted earnings per
share, as disclosed under certain pronouncements, with basic and diluted
earnings per share. Pro forma basic earnings per share for the three
months and nine months ended September 30, 1997 and 1996 are $0.29,
$0.26, $0.85 and $0.77, respectively. Pro forma diluted earnings per
share for the three months and nine months ended September 30, 1997 and
1996 are $0.28, $0.25, $0.85 and $0.77, respectively.
In June 1997, the Financial Accounting Standards Board issued SFAS No.
131, Disclosures About Segments of an Enterprise and Related
Information, which established presentation of financial data based on
the "management approach". SFAS No. 131 is applicable for fiscal years
beginning after December 15, 1997. The Company is currently in the
process of reviewing this new presentation requirement.
G. ACQUISITION
In July 1997, the Company acquired Moore Labels, Inc. (Moore Labels) of
Wichita, Kansas, a privately held supplier of pressure-sensitive labels
used in the pharmaceutical, food, plastics and miscellaneous
manufacturing industries. The aggregate consideration for the transfer
of the capital stock of Moore Labels was approximately $14.4 million
paid in cash. The consideration paid was supplied by excess cash and the
use of approximately $5.0 million of the Revolving Credit Facility. This
acquisition was not material to the Company.
H. MERGER AGREEMENT
In September 1997, the Company entered a Merger Agreement with Corporate
Express, Inc. (Corporate Express), a multi-national corporation
headquartered in Broomfield, Colorado. Corporate Express is a publicly
traded company traded on the Nasdaq National Market (Nasdaq) and is a
provider of non-production goods and services to large corporations. The
exchange ratio for the merger has been fixed so that each outstanding
share of Data Documents' common stock will be converted into 1.1 shares
of Corporate Express common stock. The merger has been approved by the
respective Boards of Directors of the companies and is subject to Data
Documents stockholders' approval. Data Documents would become a wholly
owned subsidiary of Corporate Express upon completion of the merger.
I. SUBSEQUENT EVENT
A special meeting of stockholders of Data Documents will be held on
November 25, 1997 at 10:00 a.m., at which time the stockholders will be
asked to approve and accept the Merger Agreement discussed in Note H.
8
<PAGE> 9
ITEM 2.
MANAGEMENTS' DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
COMPARISON OF THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:
NET SALES
Net sales were $65.7 million for the quarter ended September 30, 1997, an
increase of 9.9% from $59.8 million in 1996. Net sales of business forms,
supplies and services increased 4.0% with an increase of 10.3% in custom forms
sales and a decrease of 14.4% in stock forms sales. Pressure-sensitive label
sales increased 15.7%, partially due to the Moore Labels acquisition and
InteliMail(R) sales increased 31.4% due to the addition of new customers and
growth from existing customers.
GROSS PROFIT
Gross profit was $17.0 million for the quarter ended September 30, 1997, an
increase of $0.8 million, or 5.0% from $16.2 million in 1996. As a percentage of
sales, gross profit was 25.9% compared with 27.0% in 1996. Gross profit margin
dollars of business forms, supplies and services increased 0.5% for the third
quarter of 1997, primarily as a result of higher sales. Pressure-sensitive label
gross profit margin dollars increased 3.9% in the third quarter of 1997,
primarily as a result of higher sales. InteliMail gross profit margin dollars
increased 10.2%, primarily as a result of increased sales volume.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses were $9.9 million for the quarter
ended September 30, 1997, an increase of $0.4 million over 1996. The increase in
expenses resulted from the increased sales activity. These expenses decreased as
a percentage of sales to 15.1% compared to 15.9% in 1996, as a result of the
increased sales on slightly higher operating expenses.
DEBT EXPENSE
The decrease in debt expense of $0.1 million is due to the combination of lower
debt in 1997 and interest income generated from the Company's cash balance,
prior to the Moore Labels acquisition.
9
<PAGE> 10
COMPARISON OF NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:
NET SALES
Net sales were $192.1 million for the nine months ended September 30, 1997, an
increase of 4.1% from $184.5 million in 1996. Paper price decreases in 1997 over
1996 are estimated to have negatively impacted total sales by approximately
3.6%, most of which related to business forms and supplies. Net sales of
business forms, supplies and services decreased 2.6% with an increase of 4.5% in
custom forms sales and a decrease of 22.6% in stock forms sales.
Pressure-sensitive label sales increased 12.4% partially due to the Moore Labels
acquisition and InteliMail sales increased 20.0% due to the addition of new
customers and growth from existing customers.
GROSS PROFIT
Gross profit was $50.1 million for the nine months ended September 30, 1997, an
increase of $1.5 million, or 3.1% from $48.6 million in 1996. As a percentage of
sales, gross profit was 26.1% compared with 26.3% in 1996. Gross profit margin
dollars of business forms, supplies and services was maintained at the same
dollar level for the first nine months of 1997. Pressure-sensitive label gross
profit increased 6.6% in the first nine months of 1997 on more sales volume.
InteliMail gross profit margin dollars increased 15.4%, primarily as a result of
increased sales volume.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses were $28.9 million for the nine
months ended September 30, 1997, an increase of $0.6 million over 1996. These
expenses as a percentage of sales were 15.1% compared to 15.3% in 1996, as a
result of slightly higher operating expenses on increased sales.
DEBT EXPENSE
The decrease in debt expense of $0.4 million is due to the combination of lower
debt in 1997 and interest income generated from the Company's cash balance prior
to the Moore Labels acquisition purchase.
EXTRAORDINARY EXPENSE
In June 1996, the Company repurchased $500,000 of the Senior Notes at a price of
$110. The premium along with the related unamortized debt issuance cost and
issuance discount resulted in a charge of $54,000, net of income tax benefit of
$34,000.
10
<PAGE> 11
LIQUIDITY AND CAPITAL RESOURCES
The Company relies primarily upon operating cash flow and borrowings under its
revolving credit facilities to finance capital expenditures, increases in
working capital and debt service. At September 30, 1997, working capital was
$49.2 million, a decrease of $4.2 million from the working capital balance as
of December 31, 1996. Operating activities generated cash of approximately $6.0
million during the nine months ended September 30, 1997. The Company had a net
cash outflow of approximately $17.8 million from its investing activities during
the nine months ended September 30, 1997, primarily as a result of the
acquisition of Moore Labels and capital expenditures. The Company estimates that
its capital expenditures for fiscal 1997 will be between $6.0 million and $7.0
million.
In connection with the 1995 acquisition of Cal Emblem, the Company issued two
five-year term promissory notes in the aggregate principal amount of $2.2
million which accrue interest at the rate of 10% per annum. Principal and
interest payments are due in approximately equal installments over five years.
The tax-exempt industrial revenue bonds in the principal amount of $170 thousand
bear an annual interest rate of 10.125% and were paid on October 1, 1997.
Monthly sinking fund payments are required.
In January 1997, DDI entered into a new revolving facility (the "Revolving
Credit Facility") that provides for borrowing of up to $20 million. The
Revolving Credit Facility is secured by the Company's accounts receivable and
the proceeds thereof and, subject to the first lien of the holders of the Senior
Notes, by the Company's inventory and proceeds thereof. Outstanding indebtedness
under the Revolving Credit Facility is limited to 80% of eligible accounts
receivable (subject to reduction by the lender under certain circumstances). The
facility will expire in July 1999. Under the terms of the Indenture governing
the Senior Notes, the Company is permitted to incur additional revolving credit
indebtedness in an amount equal to 85% of its accounts receivable, and based
upon accounts receivable balances at September 30, 1997, the Company was
permitted to incur approximately $20 million of revolving credit indebtedness.
As of September 30, 1997, there was $2.8 million outstanding under the Company's
Revolving Credit Facility. The Facility restricts certain liens, the payment of
dividends on, and redemption of, any class of the capital stock of DDI (all of
which is currently owned by Data Documents Incorporated), PBF or Cal Emblem and
certain other restricted payments, among other things.
In connection with the acquisition of Moore Labels, the aggregate consideration
for the transfer of the capital stock of Moore Labels was approximately $14.4
million paid in cash. The consideration paid was supplied by excess cash and the
use of approximately $5.0 million of the Revolving Credit Facility.
The Company expects to satisfy its obligations under the Senior Notes, the
promissory notes issued in connection with the Cal Emblem acquisition and the
industrial revenue bonds, as well as future capital expenditures and working
capital requirements, with cash flow from operations, and believes that this
source will provide sufficient liquidity to enable it to meet its working
capital requirements for at least the next 12 months.
11
<PAGE> 12
PART II. OTHER INFORMATION
Item 2. CHANGES IN SECURITIES
(a) During the quarter ended September 30, 1997, 71,031 shares of
common stock were issued as a result of the exercise of 2,000
Warrants.
(b) During the quarter ended September 30, 1997, 98 shares of
common stock were issued as a result of the exercise of stock
options.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 11 - Statement Regarding Computation of Per Share
Earnings
(b) Current Reports on Form 8-K
In connection with the acquisition of Moore Labels, a Form 8-K
dated August 14, 1997 was filed during the quarter ended
September 30, 1997.
In connection with the merger transaction of Corporate
Express, a Form 8-K dated September 10, 1997 was filed during
the quarter ended September 30, 1997.
12
<PAGE> 13
DATA DOCUMENTS INCORPORATED
Signatures
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 thereunto duly authorized.
DATA DOCUMENTS INCORPORATED
/s/ A. Robert Thomas
Date: November 13, 1997 ---------------------------------
A. Robert Thomas
Chief Financial Officer
/s/ Walter J. Kearns
Date: November 13, 1997 ---------------------------------
Walter J. Kearns
President and Chief Executive Officer
13
<PAGE> 1
EXHIBIT 11
DATA DOCUMENTS INCORPORATED AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(AMOUNTS IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- --------------------------
1997 1996 1997 1996
----------- ----------- ----------- -----------
PRIMARY EARNINGS PER SHARE:
<S> <C> <C> <C> <C>
Common stock outstanding 9,710,226 9,230,261 9,710,226 9,230,261
Common stock equivalents:
Common stock warrants, if dilutive 174,902 653,603 174,902 653,603
Common stock options - incremental shares 165,814 71,895 102,332 56,277
----------- ----------- ----------- -----------
Weighted average shares outstanding 10,050,942 9,955,759 9,987,460 9,940,141
=========== =========== =========== ===========
Net income, as adjusted:
Before extraordinary item $ 2,825 $ 2,530 $ 8,447 $ 7,684
Extraordinary item available for common stock - - - (54)
----------- ----------- ----------- -----------
Net income available for common stock $ 2,825 $ 2,530 $ 8,447 $ 7,630
=========== =========== =========== ===========
Primary earnings per share
Before extraordinary item $ 0.28 $ 0.25 $ 0.85 $ 0.77
Extraordinary item available for common stock
- - - -
----------- ----------- ----------- -----------
Net income available for common stock $ 0.28 $ 0.25 $ 0.85 $ 0.77
=========== =========== =========== ===========
</TABLE>
14
