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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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): July 24, 1996
DAISYTEK INTERNATIONAL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 0-25400 75-2421746
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification
incorporation) Number)
500 NORTH CENTRAL EXPRESSWAY, PLANO, TX 75074
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (214) 881-4700
NONE
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On July 24, 1996, the Registrant issued the press release
filed herewith as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial statements of business acquired
Not applicable
(b) Pro forma financial information
Not applicable
(c) Exhibits
99. Press Release dated July 24, 1996.
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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.
DAISYTEK INTERNATIONAL CORPORATION
Dated: July 24, 1996 By:/s/ MARK C. LAYTON
----------------------------------
Mark C. Layton
President, Chief Operating Officer,
Chief Financial Officer
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INDEX TO EXHIBITS
EXHIBIT PAGE
NO. EXHIBIT NUMBER
- --------- --------- --------
99. Press Release dated July 24, 1996 . . . . . . . . . 5
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[DAISYTEK LETTERHEAD]
DAISYTEK REPORTS RECORD FIRST QUARTER RESULTS
FOR IMMEDIATE RELEASE
Contact: Mark C. Layton Laurie Pennino
PRESIDENT, CHIEF OPERATING OFFICER AND or Michael Ares
CHIEF FINANCIAL OFFICER EDELMAN FINANCIAL
or Thomas J. Madden (214) 520-3555
VICE PRESIDENT, FINANCE [email protected]
DAISYTEK INTERNATIONAL [email protected]
(214) 881-4700
[email protected]
[email protected]
DALLAS, TEXAS (JULY 24, 1996) - Daisytek International Corporation
(NASDAQ: DZTK) today reported record first quarter results for its quarter
ended June 30, 1996.
Net sales for the first quarter of fiscal 1997 increased 30.4% to
$136.9 million, as compared to $105.0 million for the same period of fiscal
1996. Net income for the first quarter increased 34.1% to $3.0 million as
compared to $2.3 million for the comparable quarter last year. Earnings per
share were $0.44 on 6.9 million shares outstanding for the first quarter of
fiscal 1997, compared to $0.34 on 6.7 million shares outstanding in the first
quarter last year.
Mark C. Layton, President, Chief Operating Officer and Chief Financial
Officer of Daisytek stated, "We are once again proud to announce strong first
quarter results. Revenue and earnings per share growth of approximately 30%
continues to exceed our expectations. While our gross margin percentage
declined slightly in the quarter due to a continued shift in business to larger
accounts, we were more than able to offset this decline by a further reduction
in SG&A expense percentage from 6.3% to 6.1%. This resulted in an improved
operating income percentage. Results this quarter were enhanced by strong
performances in the Company's international divisions, including Latin America
which has performed very well since its opening in January, 1996. Our service
levels and supplies expertise are allowing us to capitalize on these rapidly
expanding markets."
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Daisytek International Corporation
Page 2
Layton added, "These results are clearly indicative of the fact that
the demand for consumable supplies is not subjected to the short-term demand
swings that leading edge technology products can experience, and have
experienced, these past few months. While a long-term decline in technology
sales could impact growth, recurring demand of consumable products by the large
installed base of equipment makes consumables less susceptible to these
short-term fluctuations."
Daisytek is a leading wholesale distributor of computer and office
automation supplies and accessories, serving approximately 20,000 customer
locations in North America and overseas. Through its strategic alliance with
Federal Express, Daisytek distributes in excess of 6,000 products from more
than 145 manufacturers via next business day delivery throughout North America.
Leading manufacturers Daisytek represents include Hewlett-Packard, Kodak,
Okidata, Lexmark, IBM, 3M, Apple, Xerox, Sony, Panasonic, Canon, Epson and
Digital Equipment Corporation. You can find more information about Daisytek at
http://www.daisytek.com.
- FINANCIAL STATEMENTS FOLLOW -
Note to Editors: The matters discussed in this press release, and, in
particular, information regarding future revenues and business growth, consist
of forward-looking information under the Private Securities Litigation Reform
Act of 1995, and are subject to and involve risks and uncertainties which could
cause actual results to differ materially from the forward-looking information.
These risks and uncertainties include, but are not limited to, general economic
conditions, industry trends, the dependence upon and/or loss of key suppliers
or customers, the loss of strategic product shipping relationships, customer
demand, product availability, competition (including pricing and availability),
concentrations of credit risk, distribution efficiencies, capacity constraints,
technological difficulties, risk of international operations including exchange
rate fluctuations, and the regulatory and trade environment (both domestic and
foreign). A complete description of these factors, as well as other factors
which could affect the Company's business, is set forth in the Company's
Prospectus dated January 24, 1996, and the Company's 10-K for the fiscal year
ended March 31, 1996.
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DAISYTEK INTERNATIONAL CORPORATION AND SUBSIDIARIES
INTERIM UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
Three Months Ended
June 30,
-------------------------------
1996 1995 %Change
-------- -------- -------
<S> <C> <C> <C>
NET SALES $136,894 $104,966 30.4%
COST OF SALES 123,224 94,332 30.6%
-------- -------- ----
Gross profit 13,670 10,634 28.5%
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 8,306 6,595 25.9%
-------- -------- ----
Income from operations 5,364 4,039 32.8%
INTEREST EXPENSE 432 349 23.8%
-------- -------- ----
Income before income taxes 4,932 3,690 33.7%
PROVISION FOR INCOME TAXES 1,891 1,422 33.0%
-------- -------- ----
NET INCOME $ 3,041 $ 2,268 34.1%
======== ======== ====
NET INCOME PER COMMON SHARE $ 0.44 $ 0.34 29.4%
======== ======== ====
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 6,907 6,729
======== ========
</TABLE>
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DAISYTEK INTERNATIONAL CORPORATION AND SUBSIDIARIES
SELECTED CONSOLIDATED BALANCE SHEET DATA
(In Thousands)
<TABLE>
<CAPTION>
June 30, March 31,
1996 1996
----------- -----------
(Unaudited)
<S> <C> <C>
Trade accounts receivable, net $69,032 $69,169
Inventories, net $47,254 $44,358
Long-term debt, less current portion $21,706 $16,419
Shareholders' equity $55,748 $51,661
</TABLE>
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