The Reynolds and Reynolds Company reported net income of $28 million or 40 cents per share for the first fiscal quarter ended December 31, 2002. Earnings per share were 14 percent ahead of last year's 35 cents per share before the effect of an accounting change adopted last year, and in line with analyst estimates. Revenues of $247 million were 3 percent higher than a year ago.
The company's core Software Solutions segment grew revenues 10 percent during the quarter. "We continue to convert our own customers, and users of competitive systems to the Reynolds Generations Series(tm) platform - enabling them to easily and cost-effectively adopt our newest solutions," Lloyd "Buzz" Waterhouse, CEO, chairman and president, said. "We are pleased with the market's growing acceptance of our new offerings. Automotive retailers are impressed with our value propositions and the associated return on investment for the Reynolds Generations Series family of solutions."
The company's Transformation Solutions segment had a decline in revenues due primarily to continued softness in consulting services affected by tight spending on Information Technology in virtually every sector. Revenues in the company's Documents segment, while down in the first quarter, are expected to improve during the year.
"Order backlogs continue to be strong. And, the announcement today of our acquisition of MSN Autos Dealerpoint, the leading automotive lead management service in the industry, is really exciting. It allows us to add a basic Internet lead management tool to our growing suite of Customer Relationship Management (CRM) solutions," Waterhouse said. "Dealerpoint is the industry's most widely used automotive lead management tool.
"At the upcoming National Automobile Dealers Association convention, we'll showcase the improved business results we are delivering to our customers with the new Reynolds Generations Series(tm) family of solutions," Waterhouse said. "Our new solutions are rich with integrated CRM tools that help automotive retailers create repeat customers."
"We continue to execute our strategy to strengthen our portfolio of solutions, create value for our customers and shareholders, and position the company for improved top line growth in the quarters ahead," Waterhouse said.
"During the quarter, the company repurchased 1.6 million shares for $41 million, at an average price of $25.89. Approximately 3.3 million shares remain authorized for repurchase," Dale Medford, executive vice president and chief financial officer, said. "For the year, we expect operating cash flows to be strong. We will continue to focus on managing our costs effectively, aggressively investing in our business, and continuing our share repurchase programs."
Reynolds and Reynolds (www.reyrey.com) is a provider of integrated solutions that help automotive retailers manage change and improve their profitability. 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.
