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Exhibit 99.1
Thursday August 30, 5:39 am Eastern Time
Press Release
DAISYTEK RE-ELECTS BOARD MEMBERS AT ANNUAL SHAREHOLDERS' MEETING
Management Highlights Financial Progress and Future Growth Plans
ALLEN, TEXAS--(BUSINESS WIRE)--AUG. 30, 2001-- Daisytek International
Corporation (Nasdaq: DZTK), a $1.2 billion wholesale distributor of computer
supplies and office products and provider of marketing and demand-generation
services, elected three directors, ratified the appointment of the company's
auditors and amended the 1998 Employee Stock Purchase Plan at its annual meeting
held today in Dallas. In addition, Jim Powell, Daisytek president and chief
executive officer, and Ralph Mitchell, the chief financial officer, gave an
overview of business and financial highlights.
Daisytek's shareholders re-elected Powell, Daniel T. Owen and Peter D. Wharf to
three-year terms as company directors. Each brings significant expertise and
experience to the Daisytek leadership team. Powell, 40, has held several senior
management positions during his 13-year tenure with the company. Dan Owen, 53,
has served as a non-employee director of the company since July 2000. Owen is an
interactive television pioneer and technology venture capitalist as well as
holding board positions at several other companies. Wharf, 42, has served in
several management positions with Daisytek since 1992 and has served as director
since September 2000.
Ernst & Young LLP was appointed as the company's independent auditors for the
fiscal year ending March 31, 2002. Ernst & Young has audited Daisytek's
financial statements since December 2000.
Stockholders approved an amendment to the Daisytek International Corporation
1998 Employee Stock Purchase Plan. The amendment increased the number of shares
of common stock reserved for issuance under the Plan from 250,000 to 500,000
shares.
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"During the past year, our management team worked hard to position Daisytek for
the future, and we are pleased to report that we have made substantial progress
on all of our strategic growth initiatives," said Powell. "We've put together a
solid management team, dramatically improved our financial performance, launched
Virtual Demand, acquired the Memphis distribution center and moved into our new
world headquarters. In short, we accomplished a lot in a 12-month period. Today
management, employees and investors all share the excitement and optimism for
the New Daisytek."
Key elements of the Daisytek plan call for:
o Increasing existing product offerings to include a full line of
office products;
o Investing in the development of emerging, higher growth customer
channels, such as drug and grocery chains to increase market
share and grow the customer base;
o Develop new client services in customer care and demand
generation - such as the Virtual Demand division;
o Expand products and services into new international markets; and
o Pursue acquisitions that support these strategies.
"We have established a solid record of accomplishment. For the past five
quarters, Daisytek has exceeded expectations. Financial indicators such as
revenue, net income and earnings per share all showed marked improvement over
the prior year. Revenues increased 13%, net income (before certain incremental
charges) rose 15% and diluted earnings per share (before certain incremental
charges) grew more than 31%," Mitchell said.
The outlook for FY 2002 remains encouraging. As recently reported, revenue
growth for FY 2002 is strong, with growth projected to be 10% to 15% higher than
revenue reported in FY 2001. Earnings per share estimates for FY 2002 are $1.17
to $1.23 before a nonrecurring charge taken in the first quarter.
ABOUT DAISYTEK
Daisytek is a leading wholesale distributor of computer and office supplies and
professional tape products, in addition to providing marketing and demand
generation services. Daisytek sells its products and services in the United
States, Canada, Australia, Mexico and South America.
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Daisytek distributes more than 17,000 nationally known, name-brand computers and
office supplies products and over 2,800 professional tape products from numerous
manufacturers. Daisytek is headquartered in Allen, Texas. This news release and
more information about Daisytek are available at www.daisytek.com. This Web site
is not part of this release. Daisytek is a registered trademark of Daisytek,
Incorporated. All rights reserved.
The matters discussed in this news release contain both historical and
forward-looking statements. All statements other than statements of historical
fact are, or may be deemed to be, forward-looking information within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Act of 1934, as amended. You can identify these statements by the
fact that they do not relate strictly to historical or current facts, but rather
reflect our current expectations concerning future results and events.
Forward-looking statements relating to such matters as our financial condition
and operations, including forecasted information, are based on our management's
current intent, belief or expectations regarding our industry or us. These
forward-looking statements including forecasts are not guarantees of future
performance and involve risks, uncertainties and assumptions that are difficult
to predict. In addition, some forward-looking statements are based upon
assumptions as to future events that may not prove to be accurate. Therefore,
actual outcomes and results may differ materially from what is expected or
forecasted in such forward-looking statements. We undertake no obligation to
update publicly any forward-looking statement for any reason, even if new
information becomes available or other events occur in the future.
Certain factors, including but not limited to, general economic conditions,
industry trends, the loss of key suppliers or customers, the loss of strategic
product shipping relationships, customer demand, product availability,
competition (including pricing and availability), risks inherent in acquiring,
integrating and operating new businesses, concentrations of credit risk,
distribution efficiencies, capacity constraints, technological difficulties,
exchange rate fluctuations, and the regulatory and trade environment (both
domestic and foreign) could cause our actual results to differ materially from
the anticipated results or other expectations expressed in our forward-looking
statements. In addition, statements in this press release relating to the
expected benefits of the contemplated transaction are subject to risks relating
to the timing and successful completion of transitioning certain information
technology, integration of the acquired assets into Daisytek's operations,
unanticipated expenditures and changing relationships with customers, suppliers
and strategic partners. There may be additional risks that we do not currently
view as material or that are not presently known.
Other factors that could affect Daisytek are set forth in Daisytek's 10-K for
the fiscal year ended March 31, 2001.
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Contact:
Daisytek International, Allen
Jim Powell, 972/881-4700
or
Ralph Mitchell, 972/881-4700
or
Michael A. Burns & Associates
Craig McDaniel, 214/521-8596
cellular: 214/616-7186
cmcdaniel@mbapr.com
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