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 23, 1997
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 July 23, 1997, 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 23, 1997.
<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: July 23, 1997 By: /s/ THOMAS J. MADDEN
Thomas J. Madden
Chief Financial Officer,
Chief Accounting Officer,
Vice President - Finance
<PAGE>4
INDEX TO EXHIBITS
Exhibit Page
No. Exhibit Number
99. Press Release dated July 23, 1997 5
<PAGE>5
Daisytek Reports Record First Quarter Results
For Immediate Release
Contact: Mark C. Layton Laurie Pennino
President, Chief Executive Officer and Edelman Financial
Chief Operating Officer (713) 623-2666
Daisytek International Corporation [email protected]
(972) 881-4700
[email protected]
or Thomas J. Madden
Vice President - Finance,
Chief Financial Officer
Daisytek International Corporation
(972) 881-4700
[email protected]
Dallas, Texas (July 23, 1997) - Daisytek International Corporation
(NASDAQ: DZTK) today reported record first quarter results for its first
quarter ended June 30, 1997.
Net sales for the first quarter of fiscal year 1998 increased 26.2 percent
to $172.8 million, as compared to $136.9 million for the first quarter of
fiscal year 1997. Net income for the first quarter of fiscal year 1998 was
$3.8 million, up 25.9 percent over last fiscal year's first quarter net income
of $3.0 million. Earnings per share for the first quarter of fiscal year 1998
was $0.55 per share on 7.0 million shares, an increase of 25.0 percent versus
prior fiscal year's first quarter of $0.44 per share on 6.9 million shares.
Mark C. Layton, President, Chief Executive Officer and Chief Operating Officer
stated, "Daisytek once again had a very successful quarter, delivering very
solid first quarter financial results. Both revenue and earnings growth
exceeded our internal growth targets of 20 percent for the fiscal year.
We continue to see strong revenue and earnings growth in the foreign
geographic markets we serve. Daisytek's international businesses in Canada,
Mexico, Australia and Latin America had great success this quarter and
continue to exceed our expectations. We are also pleased to report that our
gross profit margin as a percentage of net sales, at 10.0 percent for the
first quarter, remained flat compared to both the prior fiscal quarter and as
compared to the first quarter of last year. The competitive environment and
consolidation of our customers continue to apply gross profit pressure in the
computer supplies business. We have been able to offset some of these
pressures through higher gross profit business in our Priority Fulfillment
Services subsidiary. We were also able to maintain our SG&A expenses steady
<PAGE>6
Daisytek International Corporation
Page 2
at 6.1 percent of net sales, despite the investments we are making in the
growth areas of our business. As a result, we were able to report operating
margin of 3.9 percent of net sales."
Layton added, "Daisytek's Priority Fulfillment Services subsidiary (PFS)
turned in a solid performance and continues to position itself to provide
significant contributions to our financial results. PFS's prior focus and
success providing call center and logistics services in the computer
consumables supplies industry is laying the groundwork for future expansion
to clients outside that industry. We remain very excited about the
opportunities in this area of our business, and continue to make investments
in order to successfully operate this business and provide the foundation for
future growth."
Daisytek is a leading wholesale distributor of computer and office automation
supplies and accessories, serving approximately 24,000 customer locations in
North America and overseas. Through its strategic alliance with Federal
Express, Daisytek distributes in excess of 8,000 products from more than 150
manufacturers via next business day delivery throughout North America.
Leading manufacturers Daisytek represents include Hewlett-Packard, Kodak,
Okidata, Lexmark, IBM, Imation, 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 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, 1997.
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Daisytek International Corporation
Page 3
Daisytek International Corporation and Subsidiaries
Unaudited Consolidated Statements of Operations
(In Thousands, Except Per Share Data)
<TABLE>
Three Months Ended
June 30,
-------------------------------
1997 1996 %Change
--------- --------- -------
<CAPTION>
<S> <C> <C> <C>
NET SALES $ 172,812 $ 136,894 26.2%
COST OF SALES 155,506 123,224 26.2%
--------- ---------
Gross profit 17,306 13,670 26.6%
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 10,583 8,306 27.4%
--------- ---------
Income from operations 6,723 5,364 25.3%
INTEREST EXPENSE 519 432 20.1%
--------- ---------
Income before
income taxes 6,204 4,932 25.8%
PROVISION FOR INCOME TAXES 2,375 1,891 25.6%
--------- ---------
NET INCOME $ 3,829 $ 3,041 25.9%
========= =========
NET INCOME PER
COMMON SHARE $ 0.55 $ 0.44 25.0%
========= =========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 7,004 6,907
========= =========
</TABLE>
<PAGE>8
Daisytek International Corporation
Page 4
Daisytek International Corporation and Subsidiaries
Consolidated Balance Sheet Data
(In Thousands)
June 30, March 31,
1997 1997
------------- ---------
(Unaudited)
Trade accounts receivable, net $ 90,175 $ 90,446
Inventories, net of Priority
Fulfillment Services Division $ 60,431 $ 54,426
Inventories, Priority Fulfillment
Services Division $ 12,703 $ 10,354
Long-term debt, less current portion $ 30,209 $ 30,454
Shareholders' equity $ 73,630 $ 67,193
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