The Reynolds and Reynolds Company has reported net income of $29.5 million or 42 cents per share for the second fiscal quarter ended March 31, 2003. The company said earnings per share were 8 percent ahead of last year’s 39 cents per share and exceeded analysts’ estimates. Revenues of $255.1 million were 4 percent higher than a year ago. Revenues and net income from continuing operations were second quarter records for the company.
The company’s core Software Solutions segment grew revenues 11 percent. Tight spending on information technology, particularly on consulting services, created a decline in the company’s Transformation Solutions segment, says the company. Revenues in the company’s Documents segment were 6 percent lower than last year. Financial Services revenues declined primarily due to declining interest rates.
“In a generally cautious economy, we’ve continued to see quarter to quarter revenue improvement over the past five consecutive quarters,“ Lloyd “Buzz” Waterhouse, CEO, chairman and president, said. “We continue to be optimistic about the market’s reception of our new Reynolds Generations Series™ platform.
“We enjoyed a great showing at the National Automobile Dealers Association convention in early February. Our order backlogs continue to be strong,” Waterhouse said. “New customers are enthusiastic about our customer relationship management applications and we’re aggressively driving those solutions across the marketplace.”
During the quarter:
Networkcar Inc., a Reynolds and Reynolds company, obtained a patent for technology to collect, transmit and display information from vehicles with onboard diagnostics systems.
Networkcar™ also introduced Networkfleet™, a revolutionary fleet management technology enabling fleet managers, for the first time, to have on-line access to detailed vehicle performance indicators such as mileage, speed, speed history, malfunction indicator lamp status, fuel efficiency, diagnostic trouble code descriptions and more.
Reynolds acquired MSN Autos’ Dealerpoint automotive lead management service, the leading provider of these services for the automotive industry and used by over 4,000 automotive retailers.
Kia Motors America selected Reynolds as its provider of complete networking services to its 628 retailers across the United States.
Dixon Odom PLLC named Reynolds a distributor of its Internet-based automotive retail accounting-related curriculum – eautolearning.com.
The National Association of Minority Automobile Dealers (NAMAD) and Reynolds formed NAMAD University, the association’s new education, training and consulting group. Reynolds will provide a full schedule of business management training to the association’s 500-member dealer body aimed at improving overall dealership operations, and ultimately, enhancing their bottom lines.
NAMAD also exclusively selected Reynolds Automark® Web Services as its provider of Internet and Web services.
Enterprise Rent-A-Car and Reynolds announced the availability of a new industry application to make renting cars for service loaners easier for all Reynolds automotive retail customers. The application streamlines invoicing, manages rental costs and sends rental authorizations directly to the rental car company.
For the second time in three years, Reynolds’ Technical Assistance Centers received the prestigious Team Excellence Award from the Help Desk Institute. The award is recognized as the gold medal of the customer support profession.
“We’re pleased with our profitability this quarter,” Dale Medford, executive vice president and chief financial officer, said. “Our associates have managed costs and allowed us to maintain strong profitability while developing and launching a range of new solutions. We are very focused on realizing the significant growth potential of these high-value solutions. Our strong operating cash flow enabled us to invest in our businesses, maintain a solid balance sheet and continue our share repurchase program.”
During the quarter, the company repurchased 700,000 shares for $16.9 million, at an average price of $24.12. Year to date, the company has repurchased 2.3 million shares at an average price of $25.35. Approximately 2.6 million shares remain authorized for repurchase.
Reynolds and Reynolds (www.reyrey.com) is a provider of integrated solutions that help automotive retailers manage change and improve their profitability. With 75 years of experience serving automotive retailing, Reynolds says it 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.
