The Reynolds and Reynolds Co. on Nov. 5 reported financial results for the fourth quarter and fiscal year ending Sept. 30, 2003. Fourth quarter revenues of $256 million were essentially flat compared to a year ago. For the year, revenues of $1 billion were 2 percent higher than last year.

Fourth quarter earnings per share were 47 cents compared to 43 cents last year, a 9 percent increase over fiscal year 2002. Full year earnings per share were $1.69, up 7 percent over last year’s $1.58 (excluding last year’s accounting change for goodwill).

Software Solutions, the company’s largest segment, grew revenues 6 percent in the fourth quarter compared to last year, which was offset by declines in the smaller Transformation Solutions, Documents and Financial Services segments whose revenues were down 18 percent, 3 percent and 15 percent respectively versus a year ago.

“We’re on a mission to accelerate growth and we’re very optimistic as we enter fiscal 2004,” Lloyd ‘Buzz’ Waterhouse, CEO, said. “Our backlog is at its highest level in years. The actions we announced last month including the acquisitions of Incadea and Third Coast Media, a strengthened management team and the strongest solutions portfolio in the industry place us in an excellent position to grow. We’ve established a leadership position in customer relationship management. Our entire organization is keenly focused on expanding our role as the company leading the transformation of automotive retailing, globally.”

“Our strong cash flow continued to allow us to invest in the business and execute our share repurchase program,” Dale Medford, executive vice president and CFO, said. During the quarter, the company repurchased 1.5 million shares for $42 million, at an average price of $28.50 per share. For the fiscal year, the company repurchased 4.7 million shares at an average price of $26.99 per share. Approximately 8.2 million shares remain authorized for repurchase.

Company Expresses Optimism for Fiscal 2004

For the 2004 fiscal year the company currently expects:

• Earnings per share of about $1.68 for the full fiscal year and about 30 cents per share for the first fiscal quarter (reflecting about 15 cents per share of annual stock compensation expense).

  
  

  
  

• Revenue growth of 6 percent to 10 percent for the full fiscal year.

  
  

  
  

• Return on equity to exceed 20 percent.

  
  

  
  

• Operating margins to be approximately 18 percent.

  
  

  
  

• Capital expenditures to total approximately $40 million.

  
  

  
  

• Depreciation and amortization expense to total approximately $45 million.

  
  

  
  

• Research and development expenses to be approximately $80 million.

  
  

  
  

• Estimated tax rate of 41 percent to 42 percent.

  
  

  
  

• To continue its share repurchase program throughout the year.

  
  

  
  

• Fully diluted shares used to calculate full fiscal year EPS to be approximately 67 million shares.

  
  

  
  

  About Reynolds and Reynolds

  
  

  Reynolds and Reynolds (www.reyrey.com) is a provider of integrated solutions designed to help automotive retailers manage change and improve their profitability.

  
  

  Serving the automotive retailing industry since 1927, Reynolds says it enables OEMs and retailers to work together to build the lifetime value of their customers. The company's product, service and training solutions include retail and enterprise management systems, Web and customer relationship management solutions, learning and consulting services, documents, data management and integration, networking and support and leasing services.

  
  

  Reynolds serves more than 20,000 customers comprising nearly 90 percent of the automotive retailers and virtually all OEMs doing business in North America. The Reynolds International Division serves automotive retailers and OEMs through Incadea AG and its partner network as well as a worldwide consulting practice.