Exhibit 99.1
CONTACT: Leonard Carr
Sr. Vice President
713-783-8200
lcarr@tidelmail.com
FOR IMMEDIATE RELEASE
TIDEL REPORTS FOURTH QUARTER AND FISCAL YEAR RESULTS
HOUSTON, Texas--January 17, 2002--Tidel Technologies, Inc. (Nasdaq: ATMS) today
announced its fourth quarter and fiscal year results for the year ended
September 30, 2001, reflecting significant losses for each period primarily as a
result of the downfall of its former largest customer, Credit Card Center
("CCC").
For the quarter ended September 30, 2001, Tidel reported net loss of
$(11,449,000), or diluted loss of $(.66) per share, compared to 2000 fourth
quarter net income of $2,373,000, or diluted earnings of $.13 per share.
For the fiscal year ended September 30, 2001, Tidel reported net loss of
$(25,942,000), or diluted loss of $(1.49) per share, compared to net income of
$9,169,000, or diluted earnings of $.50 per share for the year ended September
30, 2000.
For the quarter ended September 30, 2001, revenues were $6,262,000, a decrease
of $13,960,000 from $20,222,000 reported in the same period a year ago. For the
fiscal year ended September 30, 2001, revenues were $36,086,000, a decrease of
$36,845,000 from $72,931,000 in fiscal 2000.
The decreases in sales for the quarter and fiscal year ended September 30, 2001
were primarily related to the termination of business with CCC. During January
2001, the Company became aware that CCC was experiencing financial difficulty,
and sales to this customer were discontinued. The decline in sales attributable
to CCC was $13,250,000 and $33,077,000 for the quarter and year, respectively.
The operating results for the fiscal year ended September 30, 2001 were severely
impacted by the loss of CCC revenue and the related gross profit therefrom. We
continue to dedicate substantial resources of the Company in an effort to
recover amounts due from CCC, which aggregated approximately $27 million at the
time of its bankruptcy. Thus far, we have recouped certain inventories of ATM
products valued at approximately $3 million, and reduced our receivable from CCC
by a corresponding amount. Notwithstanding the Company's commitment to
aggressively pursue its rights to collect substantial additional funds from CCC,
in view of management's assessment of the available information and the
uncertainty of the ultimate outcome of the CCC bankruptcy proceedings,
management has reserved substantially all of the
remaining receivables from CCC. A reserve of $18 million had been established at
June 30, 2001, and an additional $6.1 million was provided in the fourth
quarter, resulting in a total allowance for bad debts related to the CCC matter
of $24.1 million at the end of the fiscal year. These provisions were the major
factors contributing to operating losses of $8.2 million for the fourth quarter
and $24.8 million for year ended September 30, 2001.
James T. Rash, Chairman and CEO, said, "In addition to the direct problems that
we encountered as a result of the CCC matter, the CCC collapse and bankruptcy
had negative repercussions on the ATM industry as a whole. The negative general
reaction to CCC's problems made it difficult for distributors to obtain
sufficient levels of lease financing, and there was an immediate decline in the
deployment of off-premise ATMs. Sales to other customers slowly began to recover
in the fourth fiscal quarter, but the recovery was cut short by the economic
effects of the events of September 11, 2001. Overall, sales were sluggish for
the remainder of the calendar year, as deployments of new ATMs to travel,
hospitality and entertainment locations were sharply curtailed, and many
retailers deferred buying decisions until 2002. While we continue to see a
strong flow of good opportunities and interest in our products, the decision
points on many deals have clearly been extended."
He added, "We are encouraged by the increase in order levels thus far in January
2002, and we expect to regain market share in our core business throughout the
calendar year. In addition, Tidel plans to diversify its revenue streams through
participation in a new venture related to check cashing services that is
expected to commence this month."
The Company also reported that it did not file its Annual Report on Form 10-K
for the year ended September 30, 2001 on a timely basis with the SEC due to
difficulties in gathering financial information. This report is expected to be
filed next week.
Tidel Technologies, Inc. is a manufacturer of automated teller machines and cash
security equipment designed for specialty retail marketers, and pioneered the
dial-up ATM in 1992. To date, Tidel has sold more than 30,000 retail ATMs and
115,000 retail cash controllers in the U.S. and 36 other countries.
"Safe Harbor" disclaimer under the Private Securities Litigation Reform Act of
1995: This press release contains forward-looking statements, including
statements as to anticipated or expected results, beliefs, opinions, and future
financial performance. The forward-looking statements are based on current
expectations and assumptions and involve risks and uncertainties that may cause
the company's actual experience to differ materially from that anticipated.
Estimates are based on reliable information and past experience. However,
operating results are affected by a wide variety of factors, many of which are
beyond the control of the company. Factors include, but are not limited to, the
levels of orders which are received and can be shipped in a quarter; customer
order patterns and seasonality; costs of labor, raw materials, supplies and
equipment; technological changes; competition and competitive pressures on
pricing; and economic conditions in the United States and worldwide.
Additionally, factors and risks affecting operating results include those
described in the company's registration statements and periodic reports filed
with the U.S. Securities and Exchange Commission.
TIDEL TECHNOLOGIES, INC.
INCOME STATEMENT
(In thousands, except per share data)
Three Months Year Ended
Ended September 30, September 30,
------------------------------- ------------------------------
2001 2000 2001 2000
--------- ----------- ---------- ------------
Revenues $ 6,262 $ 20,222 $ 36,086 $ 72,931
Cost of sales 4,676 12,233 24,384 45,015
Gross profit 1,586 7,989 11,702 27,916
Selling, general and administrative 2,678 2,463 10,352 10,608
Provision for doubtful accounts 7,000 350 25,025 500
Depreciation and amortization 111 394 1,089 1,368
Operating income (loss) (8,203) 4,782 (24,764) 15,440
Interest expense, net 1,073 114 4,594 433
Write-down of investment in 3CI -- 1,000 -- 1,000
Income (loss) before taxes (9,276) 3,668 (29,358) 14,007
Income tax expense (benefit) 2,173 1,295 (3,416) 4,838
Net income (loss) $(11,449) $ 2,373 $(25,942) $ 9,169
Basic earnings (loss) per share $ (0.66) $ 0.14 $ (1.49) $ 0.55
Diluted earnings (loss) per share $ (0.66) $ 0.13 $ (1.49) $ 0.50
Basic shares outstanding 17,426 17,309 17,412 16,630
Diluted shares outstanding 17,426 18,743 17,412 18,493
SELECTED BALANCE SHEET INFORMATION
(Dollars in thousands)
September 30,
2001 2000
------------- --------------
Cash $ 3,266 $ 16,223
Trade accounts receivable 7,036 29,168
Notes and other receivables 3,635 1,010
Federal income tax receivable 5,596 1,614
Inventories 11,331 10,415
Current assets 31,390 59,933
Current liabilities 28,547 11,595
Working capital 2,843 48,338
Total assets 33,837 64,532
Long-term debt 96 22,269
Shareholders' equity 5,194 30,668
