EXHIBIT 99
NEWS RELEASE | | |
FOR IMMEDIATE RELEASE | | FOR FURTHER INFORMATION CONTACT: |
| | Jim Anderson, Chairman and CEO |
| | John Gelp, Chief Financial Officer |
| | (763) 553-9300 |
ZOMAX ANNOUNCES CHANGE TO PREVIOUSLY RELEASED 2002 YEAR-END AND FOURTH QUARTER RESULTS
MINNEAPOLIS, MN…March 26, 2003…Zomax Incorporated (Nasdaq: ZOMX) today reported revised earnings for its fourth quarter ended December 27, 2002. The decrease in fourth quarter and total year results was an amount of $0.3 million ($.01 per share) due to electricity usage under-billed to Zomax’ California manufacturing facility. Zomax was notified after the release of its preliminary 2002 results on February 12, 2003 that Pacific Gas & Electric (PG & E) had incorrectly calculated electricity usage at the California facility during the second half of 2002. This calculation was a result of new electricity metering equipment that had been incorrectly installed by PG & E.
Revised net loss for the fourth quarter of 2002 was $(0.3) million, as compared to a loss of $(0.5) million in 2001. Net loss per share was $(.01), as compared to a loss of $(.02) per share in the fourth quarter of 2001. Revised net loss for the year ended December 27, 2002 was $(0.7) million, or $(.02) per share, as compared to earnings of $9.0 million, or $.27 per diluted share, in 2001.
Sales were unchanged at $50.4 million, as compared to $56.4 million for the same period last year. Sales for the full year ended December 27, 2002 were unchanged at $185.5 million, as compared to $216.8 million for the full year 2001.
About Zomax:
Zomax helps companies more efficiently bring their products and content to market worldwide. The Company enhances the process of sourcing, production, and fulfillment through a modular suite of supply chain outsourcing services. These service include “front-end” E-commerce support, customer contact center and customer support solutions; DVD authoring services; CD and DVD mastering; CD and DVD replication; supply chain and inventory management; graphic design; print management; assembly; packaging; warehousing; distribution and fulfillment; and RMA processing. The Company’s Common Stock is traded on the Nasdaq Stock Market under the symbol “ZOMX”.
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ZOMAX INCORPORATED |
Consolidated Statements Of Operations |
(Dollars in thousands, except per share data) |
|
| | Three Months Ended | | Year Ended | |
| | Dec. 27, 2002 | | Dec. 28, 2001 | | Dec. 27, 2002 | | Dec. 28, 2001 | |
Sales | | $ | 50,436 | | $ | 56,358 | | $ | 185,500 | | $ | 216,797 | |
Cost of Sales | | 42,977 | | 43,800 | | 152,688 | | 166,688 | |
Gross Profit | | 7,459 | | 12,558 | | 32,812 | | 50,109 | |
Selling, general and administrative expenses | | 8,480 | | 8,234 | | 35,264 | | 31,964 | |
Impairment of goodwill | | — | | 923 | | — | | 923 | |
Operating Income | | (1,021 | ) | 3,401 | | (2,452 | ) | 17,222 | |
Impairment of investment in unconsolidated subsidiary | | — | | (4,400 | ) | — | | (4,400 | ) |
Other income (expense) | | 399 | | 252 | | 1,200 | | 1,432 | |
Income (Loss) Before Income Taxes | | (622 | ) | (747 | ) | (1,252 | ) | 14,254 | |
Provision for Income Taxes | | (347 | ) | (219 | ) | (573 | ) | 5,221 | |
Net Income (Loss) | | $ | (275 | ) | $ | (528 | ) | $ | (679 | ) | $ | 9,033 | |
| | | | | | | | | |
Earnings (Loss) Per Share | | | | | | | | | |
Basic | | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | $ | 0.28 | |
Fully Diluted | | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | $ | 0.27 | |
| | | | | | | | | |
Weighted average common shares outstanding: | | | | | | | | | |
Weighted average common shares outstanding | | 33,086 | | 32,793 | | 33,050 | | 32,364 | |
Dilutive effect of stock options and warrants | | — | | — | | — | | 788 | |
Weighted average common and diluted shares outstanding | | 33,086 | | 32,793 | | 33,050 | | 33,152 | |
ZOMAX INCORPORATED |
Consolidated Balance Sheets |
(Dollars in thousands) |
| | Dec. 27, 2002 | | Dec. 28, 2001 | |
Current Assets: | | | | | |
Cash | | $ | 72,146 | | $ | 74,999 | |
Accounts receivable, net | | 32,785 | | 30,328 | |
Inventories | | 9,712 | | 11,142 | |
Other current assets | | 10,580 | | 7,038 | |
Total current assets | | 125,223 | | 123,507 | |
| | | | | |
Property and equipment, net | | 34,947 | | 39,913 | |
Investment in available-for-sale security | | 7,013 | | — | |
Other assets | | — | | 86 | |
TOTAL ASSETS | | $ | 167,183 | | $ | 163,506 | |
| | | | | |
Current liabilities: | | | | | |
Current portion of notes payable | | $ | 2,989 | | $ | 2,976 | |
Accounts payable and accrued expenses | | 31,755 | | 26,925 | |
Income taxes payable | | 519 | | 3,717 | |
Total current liabilities | | 35,263 | | 33,618 | |
| | | | | |
Notes payable, net of current portion | | 747 | | 3,720 | |
Deferred income taxes | | 624 | | 1,744 | |
Total liabilities | | 36,634 | | 39,082 | |
| | | | | |
Shareholders’ equity: | | | | | |
Common stock | | 64,071 | | 63,214 | |
Retained earnings | | 66,447 | | 67,126 | |
Other comprehensive income | | 31 | | (5,916 | ) |
Total shareholders’ equity | | 130,549 | | 124,424 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | $ | 167,183 | | $ | 163,506 | |
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