NEWS RELEASE:
DATE: October 26, 2000
CONTACT: Joe L. Powers
Executive Vice President
P.O. Box 141000
Nashville, TN 37214-1000
PHONE: (615) 902-1300
FAX: (615) 883-6353
WEBSITE: www.thomasnelson.com
THOMAS NELSON ANNOUNCES REVISION OF EARNINGS EXPECTATIONS
NASHVILLE, TN, October 26, 2000. Thomas Nelson, Inc. announced today
that a preliminary review of the Company's financial results for the
second quarter of fiscal year 2001, the three months through September
30, 2000, indicates that earnings are expected to be significantly
below analysts' estimates.
"An analysis of our preliminary results indicates that per share
profits are expected to show a significant decline of approximately 30%
from the $.30 per share earned in the second quarter of the last fiscal
year," noted Joe Powers, Executive Vice President. "Though our Company
is operating in weak markets, our core publishing business kept pace
with last year, both in revenues and profits. The gift business
continues to confront a particularly difficult sales environment. Its
revenues and profits fell below the levels achieved during the previous
year's quarter. While the Company's total revenues for the quarter will
show an increase, this gain is the result of acquisitions we made over
the past 12 months. Profits are coming in below expectations."
Commenting on the expectations for the quarter, Sam Moore, Chairman and
Chief Executive Officer said: "We are disappointed in this quarterly
trend which reflects weak markets, predominantly in our gift business.
We are strongly committed to a strategy where our products continue to
be market leaders, and we are maintaining a strong competitive
position. However, the market environment remains soft, and this is
having a depressing effect on our profits."
Thomas Nelson, Inc. intendes to release its financial results for the
second fiscal quarter on November 1, 2000.
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. Although the Company believes
it has the business strategy and resources needed for improved
operations, 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 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).
