SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) December 10, 1997
MicroAge, Inc.
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(Exact Name of Registrant as Specified in Charter)
DELAWARE File No. 0-15995 86-0321346
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(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
2400 South MicroAge Way, Tempe, Arizona 85282
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (602) 804-2000
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
Item 5. Other Events.
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On December 10, 1997, the Registrant reported its earnings for the
fiscal quarter ended November 2, 1997.
Item 7. Financial Statements, Pro Forma Financial Information and
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Exhibits.
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(c) Exhibits.
Exhibit No. Description
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99 Press Release dated December 10, 1997
announcing Fourth Quarter Earnings
<PAGE>
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.
MICROAGE, INC.
Date: December 10, 1997 By: /s/ James R. Daniel
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James R. Daniel
Senior Vice President,
Chief Financial Officer and
Treasurer
<PAGE>
EXHIBIT INDEX
Exhibit
No. Description
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99 Press Release dated December 10, 1997
EXHIBIT 99
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[LETTERHEAD OF MICROAGE, INC. APPEARS HERE]
Press Release
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MICROAGE, INC. REPORTS RECORD QUARTERLY
NET INCOME AND REVENUE
STRONG FOURTH QUARTER HIGHLIGHTS FISCAL 1997
FINANCIAL RESULTS
TEMPE, AZ, DECEMBER 9, 1997 -- MicroAge, Inc. (NASDAQ: MICA)
reported record net income of $7.4 million and record revenue of $1.3
billion for the fourth fiscal quarter ended November 2, 1997. Earnings
per share for the fourth quarter of 1997 increased to $0.40, an 18%
increase compared to the fourth quarter of 1996. Record revenue of $1.3
billion for the fourth quarter of fiscal 1997 increased 31% over fourth
quarter 1996's revenue, and 15% over the third quarter of 1997. Revenue
for fiscal 1997 was $4.4 billion, an increase of 23% over fiscal 1996
revenue. Net income for fiscal 1997 was $25 million, an 83% increase
versus fiscal 1996. Earnings per share for fiscal 1997 were $1.40, a
73% increase over fiscal 1996.
The fourth quarter and full year for fiscal 1996 were fourteen
and fifty-three week periods, respectively. The comparable periods for
fiscal 1997 were thirteen and fifty-two weeks. For all comparisons
noted above, the fourth quarter and total year of fiscal 1996 have been
normalized to thirteen and fifty two week periods.
MicroAge, Inc., a Fortune 500 company, is a global provider of
efficient technology solutions, delivering ISO9001 certified,
multi-vendor integration services and distributed computing solutions
to large organizations and computer resellers worldwide. The Company
serves corporations and government agencies through its MicroAge
Infosystems Services network of branches and alliance partners spanning
34 countries, and offers computer resellers over 20,000 products from
more than 500 suppliers backed by a suite of technical, financial,
logistics and account management services. ECadvantage, MicroAge's
electronic commerce architecture, is utilizing the Internet to
streamline the delivery of services to its customers. For further
information contact MicroAge's Investor Relations Department at (602)
366-2471.
###
Note: MicroAge's earnings press releases and financial statements are
available at no charge on the World Wide Web: MicroAge Home Page,
www.microage.com or PR NewsWire's Fax On Demand service at
1-888-FAX-MICA (329-6422).
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MICROAGE, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except per share data)
<TABLE>
<CAPTION>
Quarter ended Fiscal year ended
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As Reported Pro forma * As Reported Pro forma **
November 2, November 3, November 3, November 2, November 3, November 3,
1997 1996 1996 1997 1996 1996
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Revenue $ 1,321,910 $ 1,083,327 $ 1,005,947 $ 4,446,308 $ 3,696,160 $ 3,618,780
Cost of sales 1,232,617 1,013,517 941,123 4,136,628 3,471,009 3,398,615
----------- ----------- ----------- ----------- ----------- -----------
Gross profit 89,293 69,810 64,824 309,680 225,151 220,165
Percentage of revenue 6.75% 6.44% 6.44% 6.96% 6.09% 6.08%
Operating expenses 68,842 55,988 51,989 238,977 186,387 182,388
Percentage of revenue 5.21% 5.17% 5.17% 5.37% 5.04% 5.04%
----------- ----------- ----------- ----------- ----------- -----------
Operating income 20,451 13,822 12,835 70,703 38,764 37,777
Percentage of revenue 1.55% 1.28% 1.28% 1.59% 1.05% 1.04%
Other 7,568 3,334 3,096 27,366 13,755 13,517
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Income before income taxes 12,883 10,488 9,739 43,337 25,009 24,260
Percentage of revenue 0.97% 0.97% 0.97% 0.97% 0.68% 0.67%
Provision for income taxes 5,503 4,174 3,876 18,372 10,899 10,601
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Net income $ 7,380 $ 6,314 $ 5,863 $ 24,965 $ 14,110 $ 13,659
=========== =========== =========== =========== =========== ===========
Return on sales 0.56% 0.58% 0.58% 0.56% 0.38% 0.38%
Net income per common share $ 0.40 $ 0.37 $ 0.34 $ 1.40 $ 0.84 $ 0.81
=========== =========== =========== =========== =========== ===========
Weighted average common and
common equivalent shares
outstanding 18,601 17,258 17,258 17,810 16,781 16,781
</TABLE>
* Adjusted to a 13 week period for comparison purposes
** Adjusted to a 52 week period for comparison purposes
<PAGE>
MICROAGE, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
Assets
November 2, November 3,
1997 1996
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<S> <C> <C>
Current assets:
Cash and cash equivalents $ 24,029 $ 22,078
Accounts and notes receivable, net 330,172 290,115
Inventory, net 478,089 331,743
Other 11,560 11,495
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Total current assets 843,850 655,431
Property and equipment 73,747 54,049
Intangible assets 43,766 17,499
Other 12,770 9,342
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Total assets $ 974,133 $ 736,321
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 672,158 $ 509,153
Accrued liabilities 22,545 25,464
Current portion of long-term obligations 2,744 2,132
Line of credit 30,650 --
Other 3,545 3,627
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Total current liabilities 731,642 540,376
Long-term obligations 4,537 5,895
Stockholders' equity:
Preferred stock -- --
Common stock
Outstanding shares: November 2, 1997 - 17,769,551
November 3, 1996 - 16,481,423 178 165
Additional paid-in capital 148,201 124,332
Retained earnings 90,392 66,484
Loan to ESOT -- (207)
Treasury stock (817) (724)
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Total stockholders' equity 237,954 190,050
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Total liabilities and stockholders' equity $ 974,133 $ 736,321
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Days sales in ending accounts receivable 22 24 *
Accounts receivable sold $279 million $191 million
Pro forma days sales outstanding 41 43 *
Days cost of sales in ending inventory 35 33 *
</TABLE>
* The calculation of days outstanding has been adjusted to reflect the
14 week period in the fourth quarter of 1996.
