PSC Reports Fourth Quarter Results; Record Revenues and
Increased Earnings
ROCHESTER, N.Y., Feb. 3, 1997 - PSC Inc. (Nasdaq: PSCX),
a leading manufacturer of laser based bar code scanners, today
reported results for the fourth quarter and year ended December
31, 1996. Results of 1996 operations include the results of the
Data Capture Group of Spectra-Physics AB of Sweden, acquired
on July 12, 1996. The Data Capture Group consisted of Spectra-
Physics Scanning Systems, Inc. located in Eugene, Oregon;
TxCOM, S.A., located in Paris, France; and various other assets
and offices ("Spectra") located throughout the world.
Net sales for the quarter ended December 31, 1996 were a record
$56.0 million compared with sales of $21.5 million for the year ago
period and include the first full quarter of Spectra results. Income
from operations increased to $5.3 million from $0.3 million in the
comparable period a year ago. Net income of $1.1 million or
$0.10 per share in the fourth quarter was up from $0.3 million or
$0.03 per share in the fourth quarter of 1995. The weighted
average number of common shares outstanding for the fourth
quarter of 1996 was 11.3 million compared with 10.4 million in the
same period a year ago.
For the year ended December 31, 1996, sales were up 67% to a
record $146.1 million compared with sales of $87.5 million in the
prior year. Due to previously reported third quarter acquisition
related restructuring charges, PSC recorded a loss of $47.0 million
or $4.48 per share for 1996 compared to a profit of $5.4 million
or $0.54 per share for the previous year. Excluding the acquisition
related charges, net income for 1996 would have been $2.6 million
or $0.25 per share. The weighted average number of common
shares was 10.5 million for 1996 and 10.0 million for 1995.
Commenting on these results, L. Michael Hone, Chairman and
CEO said, "The first full quarter of the combined PSC and Spectra
operations reflects the improved earning power of the new PSC.
The combination of record sales and operating efficiencies
demonstrated in this quarter positions PSC to deliver stronger
financial performance in the future."
In describing the quarter's sales results, Hone stated, "On a pro
forma basis, fourth quarter sales of $56 million in 1996 increased
19% versus 1995 fourth quarter sales of $47 million. In addition,
initial shipments of our U- Scan Express(TM) self-check out
system, our industrial tunnel scanning system, and the new PS 1500
presentation scanners began."
Hone commented on plans for 1997 noting, "We see PSC as a
new company with a diversified product mix and significant market
opportunities as a result of the strategic acquisition completed this
year. We added expertise in the retail market sector, particularly
with fixed position scanning products, which is an excellent
complement to PSC's historic strength in manufacturing handheld
laser scanners for commercial and industrial users. Our 1997 plan
capitalizes on these combined resources to build upon our solid
fourth quarter earnings record."
The forward-looking statements contained in this release are made
pursuant to the safe harbor created by the Private Securities
Litigation Reform Act of 1995. Management cautions that these
statements are estimates of future performance and are highly
dependent upon a variety of important factors which could cause
actual results to differ materially from the estimate. These factors
include the acceptance of the Company's new products by the
market and product offerings made by its competitors, the
integration of the Spectra acquisition with existing PSC businesses
and the disposition of litigation matters. Profits will also be affected
by the Company's ability to control manufacturing and operating
costs. Readers of this press release are referred to filings with the
Securities and Exchange Commission, and specifically PSC's Form
10-K of December 31, 1995, and PSC's Registration Statement
on Form S-3 of October 25, 1996 for further discussions of
factors that could affect PSC's future results.
PSC manufactures the world's most comprehensive line of laser
based handheld and fixed position bar code scanners, bar code
engines and verifiers and automated carton dimensioning systems.
These products are used in automatic data collection solutions in
the retail, manufacturing, transportation, distribution and health care
industries, and government. Headquartered in Rochester, New
York, PSC has manufacturing facilities in Rochester, New York;
Eugene, Oregon; Orlando, Florida; and Paris, France. PSC has
sales and service offices throughout the Americas, Europe, Asia
and Australia.
For additional information, the PSC web site is located at
www.pscnet.com.
PSC INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(ALL AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
(UNAUDITED)
1996 1995 1996 1995
Net Sales $56,014 $21,456 $146,051 $87,516
Cost of Sales 31,641 13,279 83,675 50,634
Gross Profit 24,373 8,177 62,376 36,882
Operating Expenses:
Engineering, Research
& Development 4,023 1,507 11,069 4,962
Selling, General &
Administrative 13,399 6,150 37,855 23,024
Amortization of Intangibles
Resulting from Business
Acquisitions 1,671 219 3,564 877
Acquisition Related
Restructuring and
Other Costs 0 0 70,068 0
Income (Loss) from
Operations 5,280 301 (60,180) 8,019
Interest and Other Income/
(Expense), Net (3,274) 120 (5,747) 676
Income (Loss) from Continuing
Operations before Income Tax
Provision/(Benefit) 2,006 421 (65,927) 8,695
Income Tax Provision/(Benefit) 742 153 (24,393) 3,246
Income (Loss) from Continuing
Operations 1,264 268 (41,534) 5,449
Discontinued Operations:
Loss from Discontinued
Operations, Net of Tax 115 0 229 0
Loss on Disposal of
Discontinued Operations,
Net of Tax Benefit 0 0 5,217 0
Total Loss from Discontinued
Operations 115 0 5,446 0
Net Income (Loss) $1,149 $268 ($46,980) $5,449
Net Income (Loss) Per Common &
Common Equivalent Shares:
Continuing Operations $0.11 $0.03 ($3.96) $0.54
Discontinued Operations (0.01) 0.00 (0.52) 0.00
Net Income (Loss) $0.10 $0.03 ($4.48) $0.54
Weighted Average Number of Common
& Common Equivalent Shares
Outstanding 11,297 10,417 10,490 10,013
PSC INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(ALL AMOUNTS IN THOUSANDS)
DECEMBER 31 DECEMBER 31
1996 1995
ASSETS
Current Assets:
Cash and Short-Term Investments $10,838 $5,538
Marketable Securities 0 4,204
Accounts Receivable, Net 29,501 15,897
Inventories 18,306 10,440
Prepaid Expenses and Other 1,244 623
Total Current Assets 59,889 36,702
Property, Plant and Equipment, Net 35,612 22,157
Deferred Tax Assets 24,773 1,506
Intangible and Other Assets, Net 63,087 10,872
Total Assets $183,361 $71,237
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities:
Current Portion of Long-Term Debt $9,459 $131
Accounts Payable 15,681 8,397
Accrued Expenses 11,448 6,202
Accrued Payroll and Commissions 7,509 1,237
Accrued Acquisition Related Restructuring
Costs 4,009 338
Total Current Liabilities 48,106 16,305
Long-Term Debt, Less Current Maturities 117,994 492
Other Long-Term Liabilities 1,960 1,113
Shareholders' Equity:
Common Shares 112 100
Additional Paid-in Capital 54,891 45,881
Retained Earnings (39,432) 7,548
Cumulative Translation Adjustment (33) 35
Less Treasury Shares (237) (237)
Total Shareholders' Equity 15,301 53,327
Total Liabilities and Shareholders' Equity $183,361 $71,237
SOURCE PSC Inc./CONTACT: William J. Woodard, Vice
President and Chief Financial Officer, or Charis W. Copin,
Director, Investor Relations, of PSC, 716-265-1600/