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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(3) OF
THE SECURITIES ACT OF 1934
Date of Report (date of earliest event reported): APRIL 21, 1998
BANCTEC, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-9859 75-1559633
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
4851 LBJ FREEWAY, 12TH FLOOR
DALLAS, TEXAS 75244
(Address of principal executive offices, including zip code)
(972) 341-4000
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
The press release dated April 21, 1998 that is filed herewith as Exhibit 20.1 is
included herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
C) EXHIBITS.
20.1 Press release dated April 21, 1998 concerning first quarter financial
information.
2
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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.
Date: April 30, 1998
BANCTEC, INC.
By: /s/ Scott J. Wilson
--------------------------------
Scott J. Wilson
Vice President and Controller
3
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EXHIBIT 20.1
Contact: Raj Rajaji Susan Seiter
Sr. Vice President and Director, Investor Relations
Chief Financial Officer (972) 341-4904
(972) 341-4942
BANCTEC REPORTS FIRST QUARTER RESULTS
DALLAS, TEXAS - April 21, 1998 -- BancTec, Inc. (NYSE:BTC) today reported
that 1998 first quarter earnings totaled $10.1 million, or $.46 per share
(diluted), approximately equal to $10.0 million, or $.46 per share (diluted), in
the same quarter of last year. Revenues for the 1998 first quarter were $142.4
million, compared with $142.4 million for the same period of last year.
In March, BancTec disclosed that first quarter results would be
approximately equal to last year's first quarter, but below the company's
earlier expectations due to lower-than-anticipated revenues in its domestic
systems integration business.
"While our pipeline for new systems remains quite active, U.S. customers
have been slow to commit to new strategic projects,"commented Grahame N. Clark,
Jr., chairman and chief executive officer. "Based on domestic orders booked
through the second week of April, we believe this trend will continue to limit
our rate of growth for the second quarter and full year."
"Slower orders in the U.S. continue to be balanced in part by success in
international markets and by our rapidly growing network services business,"
Clark continued. "This business mix should enable us to show modest revenue and
earnings growth for the second half of the year."
As part of its ongoing stock repurchase program, BancTec bought 369,400
shares of common stock during the first quarter, and an additional 190,600
shares through April 17. The company has repurchased 760,000 shares in total
under the 2,000,000 million share program initiated in November, 1997.
- more -
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BancTec Reports First Quarter Results
Page 2
The company also said that it has completed preliminary work on a proposed
long-term debt financing of up to $150 million to be completed in the second
quarter. The financing will replace the company's short-term debt with long-
term debt at today's favorable interest rates.
BancTec is a diversified systems integration and services company
specializing in automated applications solutions for the banking, financial
services, insurance, healthcare, government, utility, telecommunications, and
retail industries. The company is also a leading provider of document workflow
and imaging products, as well as network support services for local area
networks and personal computers. In addition, BancTec manufactures document
processing equipment for OEM customers. In its 25th year, BancTec employs 4,000
people worldwide and is headquartered in Dallas, Texas.
CERTAIN STATEMENTS IN THIS NEWS RELEASE, INCLUDING STATEMENTS CONCERNING REVENUE
AND EARNINGS GROWTH, ARE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS
ARE BASED ON CURRENT EXPECTATIONS AND ACTUAL RESULTS MAY DIFFER MATERIALLY. THE
STATEMENTS INVOLVE RISKS RELATIVE TO MARKET DEMAND AND ACCEPTANCE, CHANGING
ECONOMIC CONDITIONS, COMPETITION, RAPIDLY-CHANGING TECHNOLOGY AND OTHER RISKS
DETAILED IN THE COMPANY'S SEC FILINGS. THESE FILINGS CAN BE OBTAINED BY
CONTACTING INVESTOR RELATIONS.
-end-
(figures attached)
BancTec is a registered trademark of BancTec, Inc. All brand or product names
are trademarks or registered trademarks of their respective holders.
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BANCTEC, INC.
STATEMENT OF OPERATIONS
-----------------------
(In thousands, except per share data)
Three Months Ended
-------------------------
3/31/98 3/31/97
-------- --------
REVENUE (Unaudited)
Equipment and software $71,471 $77,448
Maintenance and other services 70,911 64,905
-------- --------
142,382 142,353
-------- --------
COST OF SALES
Equipment and software 47,415 52,263
Maintenance and other services 52,484 46,903
-------- --------
99,899 99,166
-------- --------
GROSS PROFIT 42,483 43,187
-------- --------
OPERATING EXPENSES
Product development 4,114 5,411
Selling, general & administrative 20,290 18,666
Goodwill amortization 1,354 1,344
-------- --------
25,758 25,421
-------- --------
INCOME FROM OPERATIONS 16,725 17,766
OTHER INCOME (EXPENSE)
Interest income 173 175
Interest expense (1,727) (1,753)
Sundry-net 549 (521)
-------- --------
(1,005) (2,099)
-------- --------
INCOME BEFORE INCOME TAXES 15,720 15,667
INCOME TAX PROVISION 5,659 5,640
-------- --------
NET INCOME $10,061 $10,027
======== ========
Earnings Per Share
Basic $0.47 $0.48
Diluted $0.46 $0.46
Weighted Average Shares Outstanding
Basic 21,541 21,012
Diluted 21,789 22,868
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BANCTEC, INC.
STATEMENT OF OPERATIONS
-----------------------
(In thousands, except per share data)
3/31/98 12/31/97
-------- --------
CURRENT ASSETS (Unaudited)
Cash and cash equivalents $14,294 $21,686
Short-term investments 307 308
Accounts receivable 154,181 156,911
Inventories 85,090 86,847
Current deferred tax asset 17,133 17,133
Other current assets 9,565 7,635
-------- --------
TOTAL CURRENT ASSETS 280,570 290,520
PROPERTY, PLANT AND EQUIPMENT-NET 120,520 111,303
GOODWILL 89,892 89,147
OTHER ASSETS 11,770 11,069
-------- --------
TOTAL ASSETS $502,752 $502,039
======== ========
CURRENT LIABILITIES
Revolving credit facilities $80,124 $84,139
Current maturities of long-term
debt 11,884 11,888
Trade accounts payable 18,696 19,793
Other accrued expenses and
liabilities 59,307 71,243
Deferred revenue 38,286 27,278
Income taxes 15,145 9,185
-------- --------
TOTAL CURRENT LIABILITIES 223,442 223,526
LONG-TERM DEBT, less current
maturities 8,871 11,854
OTHER LIABILITIES 5,980 6,136
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock-authorized 1,000
shares of $.01 par value
Series A-no shares issued
and outstanding - -
Series B-no shares issued
and outstanding - -
Common stock-authorized, 45,000,000
shares of $.01 par value: issued
and outstanding 21,632,000 at
March 31, 1998 and 21,808,000
at December 31, 1997 216 218
Treasury stock- 243,400 shares at
March 31, 1998 and 200,000 at
December 31, 1997 (5,975) (4,692)
Additional paid-in capital 216,090 221,234
Retained earnings 60,180 50,119
Foreign currency translation
adjustments (4,435) (5,129)
Unearned compensation (1,617) (1,227)
-------- --------
TOTAL STOCKHOLDERS' EQUITY 264,459 260,523
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $502,752 $502,039
======== ========
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NOTE TO INVESTORS:
As of December 31, 1998, BancTec will adopt FASB 131 which requires disclosure
of business segment data in accordance with the "management approach." The
management approach is based on the way segments are organized within the
company for making operating decisions and assessing performance. In the first
quarter of 1998, BancTec completed a reorganization of its business operations
into three business units, Service & Manufacturing, Worldwide Systems and
Plexus. TABLE 1 shows Q1 revenue by business segment as it will reported under
FASB 131. TABLE 2 shows Q1 revenue in the format that the company has
previously provided to investors as supplemental data. In the remaining
quarters of 1998 BancTec will provide revenue data in the segments shown in
TABLE 1.
TABLE 1. - SUPPLEMENTAL REVENUE BREAKDOWN (UNAUDITED) ($ IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
------------------
<S> <C> <C>
3/31/98 3/31/97
-------- --------
Service & Manufacturing $ 77,124 $ 70,008
Worldwide Systems 66,446 73,759
Plexus 5,160 4,324
Eliminations (6,348) (5,738)
-------- --------
TOTAL REVENUE $142,382 $142,353
======== ========
</TABLE>
TABLE 2. - SUPPLEMENTAL REVENUE BREAKDOWN (UNAUDITED) ($ IN THOUSANDS)
<TABLE>
<CAPTION>
Three Months Ended
------------------
<S> <C> <C>
3/31/98 3/31/97
-------- --------
Financial Transaction Processing Systems $ 51,501 $ 57,288
OEM Technologies and Support Products 12,672 12,661
Plexus 7,298 7,499
-------- --------
Total Equipment and Software $ 71,471 $ 77,448
-------- --------
Equipment Maintenance 39,939 41,413
Network Services 30,972 23,492
-------- --------
Total Maintenance and Other Services $ 70,911 $ 64,905
-------- --------
TOTAL REVENUE $142,382 $142,353
======== ========
</TABLE>