TYLER TECHNOLOGIES REPORTS RECORD EARNINGS FOR FOURTH QUARTER AND FULL YEAR 2002
EBITDA Increases 41% to $18.6 Million
|
Dallas, Texas, February 27, 2003 -- Dallas-based Tyler Technologies, Inc. (NYSE: TYL) today reported earnings for the fourth quarter and year ended December 31, 2002. Tyler provides a broad array of software products and related professional services to meet the information management needs of counties, cities, schools and other local government offices nationwide.
Revenues from continuing operations for the year ended December 31, 2002 increased 13% to $133.9 million from $118.8 million in 2001. EBITDA, or earnings from continuing operations before interest, income taxes, depreciation and amortization, grew 41% in 2002 to $18.6 million, or $0.37 per diluted share, from $13.2 million, or $0.28 per share, in 2001.
Income from continuing operations before income taxes for 2002 was $10.0 million, compared to pretax income of $1.8 million for 2001. The Company’s effective income tax rate for 2002 was 38.5%, compared to 85.0% in 2001. After taxes, income from continuing operations for the year ended December 31, 2002 was $6.2 million, or $0.12 per diluted share, compared to income from continuing operations of $272,000, or $0.01 per share, for the year ended December 31, 2001.
For the year ended December 31, 2002, Tyler had a gain on disposal of discontinued operations, net of tax, of $1.8 million, or $0.04 per share, compared to a loss on disposal of discontinued operations of $3,000, or $0.00 per share, in 2001. Net income for 2002 was $8.0 million, or $0.16 per share, compared to $269,000, or $0.01 per share, in 2001.
Results for 2002 include legal fees of $704,000 ($458,000 after tax) associated with the Company’s investment in HTE, Inc. (“HTE”). Excluding those legal expenses, Tyler’s income from continuing operations for the year ended December 31, 2002 was $6.6 million, or $0.13 per share, and net income was $8.4 million, or $0.17 per share. The legal issues between Tyler and HTE have been resolved, and Tyler has agreed to tender its HTE shares to SunGard Data Systems in connection with SunGard’s pending cash acquisition of HTE.
Effective January 1, 2002, Tyler adopted the provisions of SFAS No. 142, “Goodwill and Other Intangible Assets,” which resulted in lower amortization expense for acquisition intangibles and a lower effective income tax rate beginning in 2002. Had the Company reported its 2001 results on the basis required by SFAS No. 142, pro forma income from continuing operations would have been $3.2 million, or $0.07 per share, and the Company’s 2001 effective income tax rate would have been approximately 40%.
For the fourth quarter of 2002, revenues grew 16% (17% excluding hardware and other revenues) to $36.4 million from $31.5 million in the fourth quarter of 2001. EBITDA in the fourth quarter of 2002 was $6.3 million, or $0.13 per share, compared to EBITDA of $4.3 million, or $0.09 per share, in the fourth quarter of 2001.
Pretax income from continuing operations was $4.1 million for the three months ended December 31, 2002, more than triple Tyler’s pretax income of $1.3 million for the same period in the prior year. Income from continuing operations for the quarter ended December 31, 2002 was $2.6 million, or $0.05 per share, compared to income from continuing operations of $163,000, or $0.00 per share, for the quarter ended December 31, 2001.
During 2002, Tyler repurchased 1,500,000 shares of its common stock in off-market transactions for an aggregate cash purchase price of $4,000,000. On October 29, 2002, the Tyler Board approved the repurchase of up to an additional 1,000,000 shares of its common stock in open market transactions. During the first quarter of 2003, Tyler has repurchased 339,400 shares of its common stock in open market transactions at an average price of $3.96 per share.
Tyler Technologies has scheduled a conference call for today at 10:30 a.m. Central Time, to discuss the Company’s 2002 earnings and outlook for 2003. The conference call can be accessed by visiting the Company's homepage at http://www.tylertechnologies.com. A replay will also be available on Tyler’s Web site following the conference call.
(For the full text of the press release including management commentary and comparative results please see the attached file.)
|
Feb 27, 2003 |
|