Tyler Technologies Reports First Quarter 2003 Earnings
Operating Income Increases 75% on 12% Revenue Growth |
Dallas, Texas, May 1, 2003 -- Dallas-based Tyler Technologies, Inc. (NYSE: TYL) today reported earnings for the quarter ended March 31, 2003. 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 for the quarter ended March 31, 2003 increased 12% to $32.3 million from $28.9 million in the quarter ended March 31, 2002. Operating income for the quarter ended March 31, 2003 was $1.8 million, an increase of 75% compared with operating income of $1.0 million in the same quarter of 2002.
Net income for the three months ended March 31, 2003 amounted to $17.3 million, or $0.36 per diluted share. Included in first quarter 2003 net income is a gross realized gain of $23.2 million ($16.2 million, or $0.34 per share, after income taxes) in connection with the cash sale of Tyler’s entire investment in H.T.E., Inc (HTE). Net income for the quarter ended March 31, 2002 was $562,000, or $0.01 per share.
For the first quarter of 2003, EBITDA, or earnings before interest, income taxes, depreciation and amortization, amounted to $27.1 million, or $0.57 per share (including $23.2 million, or $0.49 per share, relating to the gross realized gain on the sale of Tyler’s investment in HTE). EBITDA for the first quarter of 2002 amounted to $3.0 million, or $0.06 per share.
“We are pleased to report a continuation of positive trends in Tyler’s revenues and earnings,” said John M. Yeaman, Tyler’s President and Chief Executive Officer. “Our software-related revenues (software licenses, software services, and maintenance) grew in the aggregate 23% over the first quarter of 2002. This increase reflects continued success in our strategy to grow through geographic expansion and to expand our business with larger governments. The growth in our software-related revenues was offset somewhat by a 13% reduction in our appraisal services revenues following the completion of our initial three-year reassessment contract with Nassau County, New York. In addition, our first quarter gross margin increased to 36% from 34% last year.”
Mr. Yeaman added, “Including the cash we received from the sale of our investment in HTE, we ended the quarter with cash and short-term investments of over $45 million. As we previously stated, we believe that the repurchase of Tyler common stock represents an excellent opportunity for the use of a portion of our excess cash. During the first quarter of 2003, we repurchased in the open market 875,200 shares of Tyler common stock at an average cost of $3.77 per share. We also recently announced a modified “Dutch auction” tender offer to repurchase up to 4.2 million additional shares of our stock at a price between $3.60 and $4.00 per share. That tender offer will close on May 12, 2003, unless extended by Tyler.
“Our outlook for 2003 remains positive and our guidance for the full year 2003 is unchanged, except for the addition of the gain on the sale of our investment in HTE. We still expect that total revenues will grow between 8% and 10% over 2002, and fully diluted earnings per share for the year 2003 is expected to be between $0.50 and $0.52 per share, including $0.34 from the gain on the sale of our investment in HTE. EBITDA is expected to be $44 - $46 million for 2003, including the $23 million gain on the sale of the HTE investment,” noted Mr. Yeaman.
Tyler Technologies has scheduled a conference call for May 2 at 10:00 a.m. Central Time, to discuss the Company’s first quarter 2003 earnings. The conference call can be accessed by visiting the Company’s homepage at http://www.tylertechnologies.com. A replay will be available on Tyler’s Web site following the conference call.
Based in Dallas, Tyler Technologies is a leading provider of end-to-end information management solutions and services to local governments. Tyler partners with clients to make local government more accessible to the public, more responsive to needs of citizens, and more efficient. Tyler's client base includes nearly 6,000 local government offices in 49 states, Canada and Puerto Rico. More information about Tyler Technologies can be found on the World Wide Web at www.tylertechnologies.com.
(See attachment for comparative results)
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May 01, 2003 |
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