THOMAS NELSON ANNOUNCES SECOND QUARTER (FY 2001) RESULTS
NASHVILLE, TN, November 1, 2000. Thomas Nelson, Inc. today announced
that its revenues for the second quarter of its Fiscal Year 2001 were
$81.1 million, a gain of 15.7% from the $70.1 million reported in the
prior year's quarter. Net income in the quarter that ended September 30,
2000 was $3.0 million, down 29% from the $4.3 million reported in the
same quarter of last year. Both basic and diluted net income per share
amounted to $0.21 in this year's period compared with $0.30 in the same
period a year ago. This represents a 30% decline.
For the six months through September 30th, revenues were $146.6 million
in the current fiscal year vs. $129.2 million last year, a 13.4%
improvement. Net income was $3.8 million through the first half, compared
to $5.6 million in the year ago period, a 31.7% decline. Basic and
diluted earnings per share declined by 32.5%, to $0.27 vs. last year's
$0.40.
Commenting on the recent results, Sam Moore, Chairman and Chief Executive
Officer said: "Our results for the period reflect a somewhat softer than
expected sales environment for both the publishing and gift business
segments. The gift division revenues were down $1.7 million or 6% from
the prior year quarter. Sales and earnings in our core publishing
operation were essentially flat, compared to the prior year's period,"
Mr. Moore noted, "with the increase in revenues coming from acquisitions
made over the past twelve months. We are seeing reports that book sales,
industry-wide, were below expectations during the summer; we certainly
experienced that in our own operations," Mr. Moore stated. "Despite the
lackluster results, our competitive position remains strong, and our
products continue to enjoy leading positions in their respective
marketplaces. We are working hard to analyze our business strategies in
an effort to improve our financial results commensurate with our
competitive position in the markets we serve."
This news release includes certain forward-looking statements. Actual
results could differ materially from those reflected by the forward-
looking statements and a number of factors may affect future results,
liquidity and capital resources. These factors include softness in the
general retail environment, the timing of products being introduced to
the market, the level of returns experienced by the operating divisions,
the level of margins achievable in the marketplace and the ability to
minimize operating expenses. Future revenue and margin trends cannot be
reliably predicted and may cause the Company to adjust its business
strategy during the remaining portion of the 2001 fiscal year. The
Company disclaims any intent or obligation to update forward-looking
statements.
Thomas Nelson, Inc. is a leading publisher, producer and distributor
of books emphasizing Christian, inspirational and family value themes,
and believes it is the largest publisher of Bibles and inspirational
books in the English language. The Company also designs and markets a
broad line of gift and stationery products. For more information, visit
our website www.thomasnelson.com. Thomas Nelson, Inc. will host a
conference call related to the earnings release at 1:30 CST on Wednesday,
November 1, 2000. Individuals may listen to the call by dialing (719)
457-2637. The live broadcast of Thomas Nelson's quarterly conference
call will be available online by going to www.thomasnelson.com and
clicking on the link to News and at www.streetevents.com. The online
replay will follow shortly after the call and continue through November
8, 2000. Thomas Nelson's stock is listed on the New York Stock Exchange
(TNM-NYSE). ###
<TABLE>
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
<CAPTION>
Six Months Ended Sept. 30, Three Months Ended Sept. 30,
2000 1999 2000 1999
---------- ----------- ---------- -----------
<S> <C> <C> <C>
(Unaudited)(Unaudited) (Unaudited)(Unaudited)
Net revenues $146,551 $129,226 $ 81,121 $ 70,110
Cost of goods sold 82,977 71,638 46,035 38,355
------- ------- ------- -------
Gross profit 63,574 57,588 35,086 31,755
Selling, general and
administrative 52,158 45,075 27,531 23,271
Amortization of
goodwill and non-
compete agreements 1,250 763 631 405
------- ------- ------- -------
OPERATING INCOME 10,166 11,750 6,924 8,079
Other income (expense) ( 291) 249 ( 82) 227
Interest expense 3,731 3,144 1,912 1,624
------- ------- ------- -------
Income before income
taxes 6,144 8,855 4,930 6,682
Provision for income
taxes 2,177 3,223 1,799 2,430
Minority interest 119 - 119 -
------- ------- ------- -------
NET INCOME $ 3,848 $ 5,632 $ 3,012 $ 4,252
Weighted average
number of shares
outstanding:
Basic 14,255 14,253 14,278 14,227
Diluted 14,289 14,258 14,324 14,230
NET INCOME PER SHARE:
Basic $ 0.27 $ 0.40 $ 0.21 $ 0.30
Diluted $ 0.27 $ 0.40 $ 0.21 $ 0.30
DIVIDENDS DECLARED
PER SHARE $ 0.08 $ 0.08 $ 0.04 $ 0.04
======== ======== ======= ========
</TABLE>
<TABLE>
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands)
<CAPTION>
Sept. 30, March 31, Sept. 30,
2000 2000 1999
---------- ---------- ----------
<S> <C> <C> <C>
ASSETS (Unaudited) (Unaudited)
Current Assets:
Cash and cash equivalents $ 666 $ 814 $ 2,860
Accounts receivable, less allowances
of $7,233, $7,171 and $6,914,
respectively 86,526 79,052 82,414
Inventories 86,068 74,809 66,272
Prepaid expenses 16,425 13,652 12,527
Assets held for sale 19,632 22,168 -
Deferred tax assets 9,679 9,679 6,715
-------- -------- --------
Total current assets 218,996 200,174 170,788
Property, Plant and Equipment 17,797 17,423 24,709
Other Assets 8,780 9,904 9,016
Deferred Charges 659 959 1,592
Goodwill 70,964 69,770 58,321
-------- -------- --------
Total Assets $317,196 $298,230 $264,426
======== ======== ========
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $39,949 $27,350 $19,097
Accrued expenses 14,450 16,142 15,233
Deferred revenue 6,363 6,553 -
Dividends payable 574 569 569
Income taxes currently payable 2,378 3,851 2,509
Current portion of long-term debt 5,929 7,592 2,441
------- ------- -------
Total current liabilities 69,643 62,057 39,849
Long-Term Debt 108,249 100,359 90,066
Deferred Tax Liability & Other
Liabilities 3,930 4,082 5,934
Minority Interest 119 - -
Shareholders' Equity 135,255 131,732 128,577
-------- -------- --------
Total Liabilities &
Shareholders' Equity $317,196 $298,230 $264,426
======== ======== ========
</TABLE>
<TABLE>
THOMAS NELSON, INC. AND SUBSIDIARIES
REVENUES BY PRODUCT LINE
(Dollars in thousands, except per share data)
(unaudited)
<CAPTION>
Second % of Second % of 2001 vs
Qtr Qtr 2000
FY 2001 Total FY 2000 Total % Inc (Dec)
------- ----- ------- ----- -----------
<S> <C> <C> <C> <C> <C>
PUBLISHING $ 53,810 66.33% $ 41,141 58.68% 30.79%
GIFTS 27,311 33.67% 28,969 41.32% -5.72%
-------- ------- -------- ------- -------
TOTAL $ 81,121 100.00% $ 70,110 100.00% 15.71%
======== ======= ======== ======= ======
YTD % of YTD % of 2001 vs 2000
FY 2001 Total FY 2000 Total % Inc (Dec)
------- ----- ------- ----- ------------
PUBLISHING $100,715 68.72% $ 80,527 62.31% 25.07%
GIFTS 45,836 31.28% 48,699 37.69% -5.88%
-------- ------ ------- ------ ------
TOTAL $146,551 100.00% $129,226 100.00% 13.41%
======== ======= ======== ======= ======
</TABLE>
