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): October 23, 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: (972) 881-4700
None
(Former name or former address, if changed since last report)
<PAGE>2
Item 5. Other Events
On October 23, 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 October 23, 1996.
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<PAGE>3
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: October 23, 1996 By: /s/ MARK C. LAYTON
Mark C. Layton
President, Chief Operating Officer,
Chief Financial Officer
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<PAGE>4
INDEX TO EXHIBITS
Exhibit Page
No. Exhibit Number
99. Press Release dated October 23, 1996 5
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<PAGE>5
Daisytek International Corporation
Page 1
Daisytek Reports Record Second Quarter Results
For Immediate Release
Contact: Mark C. Layton Michael Ares
President, Chief Operating Edelman Financial
Officer and Chief Financial Officer (214) 520-3555
Daisytek International Corporation [email protected]
(972) 881-4700
[email protected]
or Thomas J. Madden
Vice President, Finance
Daisytek International Corporation
(972) 881-4700
[email protected]
Dallas, Texas (October 23, 1996) - Daisytek International
Corporation (NASDAQ: DZTK) today reported record second quarter
results for its quarter ended September 30, 1996.
Net sales for the second quarter of fiscal 1997 increased
31.0% to $138.1 million, as compared to $105.4 million for the
same period of fiscal 1996. Net income for the second quarter of
fiscal year 1997 was $3.0 million. Earnings per share for the
second quarter of fiscal 1997 were $0.43, an increase of
approximately 26% versus the prior year, as adjusted to exclude
the impact of certain one-time inventory purchase actions. Last
year's second quarter results were enhanced by approximately
$0.05 per share resulting from these one-time inventory purchase
actions which positively impacted the Company's second and third
quarters of fiscal year 1996.
Net sales for the six months ended September 30, 1996
increased 30.7% to $275.0 million, as compared to $210.4 million
for the same period of fiscal 1996. Net income for the first six
months of fiscal year 1997 increased to $6.0 million. Earnings
per share for the first six months of fiscal 1997 were $0.87, an
increase of approximately 28% versus the prior year, as adjusted
to exclude the impact of the one-time inventory purchase actions.
<PAGE>6
Daisytek International Corporation
Page 2
Mark C. Layton, President, Chief Operating Officer and Chief
Financial Officer of Daisytek stated, "Our second quarter ended
September 30, 1996 was very successful. Revenue and profit
growth continues to be solid as we continue to earn an increasing
market share in our industry. Our retail superstore business
growth was strong compared to last year, but slower than our
aggressive plan for this area. This shortfall versus our plan
was more than offset by overages in other business divisions.
Growth continues to come from the larger industry players who are
drawn to our ability to partner with them to help make their
computer supplies business more successful. Our vast product
range, distribution capabilities and call center features
continue to provide us competitive advantages. Additionally,
improved productivity and efficiency in our operations have
reduced our SG&A costs as a percentage of net sales for the
quarter, combating continuing declines in our gross profit margin
percentage."
Layton added, "Our four primary growth strategies continue
to prove successful. These consist of 1) continued focus on the
rapidly expanding computer and office automation consumables
industry, 2) the use of technology to drive efficiency and
customer service, 3) international expansion, and 4) promotion of
our distribution and telemarketing expertise as products in
themselves. Daisytek's Priority Fulfillment Services subsidiary,
our business unit which offers third party logistics outsourcing,
continues to present exciting opportunities for the future.
Additionally, the addition of Lasercharge Australia to the
Daisytek family marks our first step into expanding into the
promising Pacific Rim computer and office automation supplies
market."
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 -
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, integration of business
units, 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.
<PAGE>7
Daisytek International Corporation
Page 3
Daisytek International Corporation and Subsidiaries
Interim Unaudited Consolidated Statements of Operations
(In Thousands, Except Per Share Data)
<TABLE>
Three Months Ended Six Months Ended
September 30, September 30,
------------------------------- --------------------------------
1996 1995 %Change 1996 1995 %Change
--------- --------- ------- --------- --------- -------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
NET SALES $ 138,148 $ 105,421 31.0% $ 275,042 $ 210,387 30.7%
COST OF SALES 124,559 94,086 32.4% 247,783 188,418 31.5%
--------- --------- ---- --------- --------- ----
Gross profit 13,589 11,335 19.9% 27,259 21,969 24.1%
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 8,397 6,685 25.6% 16,703 13,280 25.8%
--------- --------- ---- --------- --------- ----
Income from operations 5,192 4,650 11.7% 10,556 8,689 21.5%
INTEREST EXPENSE 413 417 (1.0)% 845 766 10.3%
--------- --------- ---- --------- --------- ----
Income before
income taxes 4,779 4,233 12.9% 9,711 7,923 22.6%
PROVISION FOR INCOME TAXES 1,824 1,617 12.8% 3,715 3,039 22.2%
--------- --------- ---- --------- --------- ----
NET INCOME $ 2,955 $ 2,616 13.0% $ 5,996 $ 4,884 22.8%
========= ========= ==== ========= ========= ====
NET INCOME PER
COMMON SHARE $ 0.43 $ 0.39(A) 10.3% $ 0.87 $ 0.73(A) 19.2%
========= ========= ==== ========= ========= ====
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 6,921 6,733 6,915 6,731
========= ========= ========= =========
</TABLE>
(A) Reflects approximately $.05 per share related to certain one-time
inventory purchase actions.
<PAGE>8
Daisytek International Corporation
Page 4
Daisytek International Corporation and Subsidiaries
Interim Consolidated Balance Sheet Data
(In Thousands)
September 30, March 31,
1996 1996
(Unaudited)
Trade accounts receivable, net $ 71,385 $ 69,169
Inventories, net of Priority
Fulfillment Services Division $ 39,398 $ 44,358
Inventories, Priority Fulfillment
Services Division $ 5,293 $ --
Long-term debt, less current portion $ 20,644 $ 16,419
Shareholders' equity $ 59,008 $ 51,661
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