The Reynolds and Reynolds Company reported financial results for the fourth quarter and the fiscal year ending September 30, 2002. Fourth quarter revenues of $256.7 million were 2 percent ahead of last year's $251.7 million. Fourth quarter earnings per share of 43 cents were 19 percent ahead of last year's 36 cents. For the fiscal year, earnings per share from continuing operations were $1.58, 21 percent higher than last year's $1.31. Annual revenues of $992.4 million were down slightly compared to the previous year.
"We're pleased with our performance in a year when the economy was less than robust and business spending overall on information technology and software solutions was weak," said Lloyd "Buzz" Waterhouse, CEO, chairman and president. "In the midst of those factors, we delivered results for our customers and continued to build long-term value for our shareholders. Our results show the benefit of our sharpened focus on automotive retailing, an emphasis on expense management, and the gains from innovative new products and services. We continue to set the pace of leadership in the industry.
"We enter fiscal 2003 with momentum and optimism. Our backlogs are strong. Automotive retailers are impressed by the measurable results we are delivering with our new Reynolds Generations Series family of solutions. The automotive industry is healthy. With new vehicles at their most affordable since 1978, aggressive car company incentives, and consumers ready to buy, retailer optimism is high. Automotive retailers are achieving healthy new and used vehicle sales and increased profits."
During the fiscal year Reynolds:
Exited the year with a $100 million run rate of document orders through ReySource, a procurement Web site for automotive retailers. Reynolds teamed with General Motors and Covisint to create the General Motors Dealer Supply Advantage procurement site. The Ford Motor Minority Dealers Association and the General Motors Minority Dealers Association also endorsed ReySource to their members.
Continued to expand its market presence with Automark Web Services. Reynolds was selected by Nissan to develop and implement a total retail services network including e-commerce and brand management for its North American Nissan and Infiniti dealers. The MINIUSA division of BMW selected Reynolds to develop and launch its customer Web services. Similarly, Reynolds built kbb.com's Blue Book Classifieds for Kelley Blue Book and recently announced an agreement with Yahoo! to connect its Automark Web Services' customers to classified listings on Yahoo!
Introduced, for all GM dealers in the U.S., In-Vehicle-Merchandising, a streamlined suite of information and business management tools that help GM dealers build customer relationships and improve parts and service.
"During fiscal year 2002 we delivered strong cash flows and profits which allowed us to make strategic investments in enhanced solutions and significant share repurchases. We continued to strengthen our recurring revenue model throughout the year," said Dale Medford, executive vice president and chief financial officer. "Moving through 2003, we expect to quicken our pace of revenue growth, continue to manage our costs effectively, aggressively invest in our business, and continue to repurchase Reynolds shares."
Waterhouse concluded, "We're in an excellent position to grow our business and create value for our customers and shareholders in fiscal year 2003. Our strategies are solid, our solutions suite is the strongest in the industry, and our organization remains dedicated to leading the transformation of automotive retailing."
Reynolds and Reynolds (www.reyrey.com) is a provider of integrated solutions that it says helps automotive retailers manage change and improve their profitability. With 75 years of experience serving automotive retailing, Reynolds enables car companies and retailers to work together to build the lifetime value of their customers. The company's product, service and training solutions include a full range of retail and enterprise management systems, networking and support, e-business applications, Web services, learning and consulting services, customer relationship management (CRM) solutions, data management and integration, and leasing services. Reynolds serves more than 20,000 customers. They comprise 90 percent of the automotive retailers and virtually all car companies doing business in North America. Its CRM consulting practices span more than 20 countries around the world.
