TYLER TECHNOLOGIES ANNOUNCES 86% INCREASE IN NET INCOME FOR THIRD QUARTER 2003 |
EBITDA Increases 55% on Record Quarterly Revenues
Dallas, October 29, 2003 -- Dallas-based Tyler Technologies, Inc. (NYSE: TYL) today reported that net income for the quarter ended September 30, 2003 increased 86% compared with the same quarter of 2002, driven by a 23% increase in software-related revenues.
Net income for the three months ended September 30, 2003 was $3.2 million, or $0.07 per diluted share, while net income for last year’s third quarter was $1.7 million, or $0.04 per share.
Total revenues for the quarter ended September 30, 2003 increased 8% to $37.9 million from $35.0 million in the same period last year. Software-related revenues (software licenses, software services and maintenance) grew in the aggregate 23% for the quarter, while appraisal services revenues declined 20%.
Operating income for the quarter ended September 30, 2003 was $5.1 million, an increase of 55%, compared with operating income of $3.3 million in the same quarter of 2002.
Third quarter EBITDA, or earnings before interest, income taxes, depreciation and amortization, increased 55% to $7.9 million, or $0.18 per share. EBITDA for the third quarter of 2002 amounted to $5.1 million, or $0.10 per share.
For the nine months ended September 30, 2003, net income amounted to $22.5 million, or $0.50 per diluted share. Included in net income for the nine-month period is an after-tax realized gain of $16.2 million, or $0.36 per share, in connection with the cash sale of Tyler’s entire investment in H.T.E., Inc. (HTE) during the first quarter of 2003. Net income for the nine months ended September 30, 2002 was $3.6 million, or $0.07 per share.
Revenues for the nine months ended September 30, 2003 increased 9% to $106.3 million from $97.5 million in 2002. Operating income for the first nine months of 2003 was $9.9 million, an increase of 51% compared to $6.6 million in the first nine months of 2002.
EBITDA for the nine months ended September 30, 2003 was $40.2 million, or $0.89 per share (including $23.2 million, or $0.51 per share, relating to the gross realized gain on the sale of Tyler’s investment in HTE). EBITDA for the first nine months of 2002 amounted to $12.3 million, or $0.25 per share.
Tyler ended the third quarter of 2003 with $39.3 million in cash and short-term investments, and no debt. Free cash flow (cash provided by operating activities minus capital expenditures) for the third quarter of 2003 was $11.7 million, compared to $5.0 million for the third quarter of 2002. For the first nine months of 2003, free cash flow was $13.2 million, compared to $6.8 million in the same period last year.
“As we anticipated, Tyler Technologies turned in great results in the third quarter, with record quarterly revenues,” said John M. Yeaman, Tyler’s President and Chief Executive Officer. “We continued to produce strong growth in our software-related revenues, which in turn fueled an impressive improvement in gross margin. We achieved significant milestones in connection with the successful implementations of the new Odyssey courts system in the state of Minnesota and in Lee County, Florida, which resulted in the recognition of $3.4 million of software license revenue related to those two contracts. We are especially pleased to have recorded our eighth straight quarter of year-over-year increases in software license revenues.
“Tyler’s gross margin for the third quarter expanded to 40.8% from 35.2% last year, the result of both a positive shift in revenue mix and a solid increase in gross margins for software services and maintenance. In this year’s third quarter, 77.3% of our total revenues were software-related, compared to 67.9% of our revenues in the same quarter last year,” added Mr. Yeaman. “In addition, more efficient utilization of our personnel, and increased operating leverage relative to revenue growth, drove software services and maintenance margins up to 32.6% in this year’s third quarter from 23.8% in last year’s third quarter.”
“Tyler’s appraisal services revenues declined in line with our expectations as several large projects, including the initial contracts in Nassau County, New York and Lake County, Indiana, have been completed or are winding down. While 2003 is already our best year ever for new appraisal contract signings, and our outlook for that business remains very positive, we expect that in the long term our software-related revenues will grow at a faster rate than appraisal services revenues.
“Our outlook for the current year has not changed,” noted Mr. Yeaman. “We continue to expect that total revenues for 2003 will grow between 8% and 10% over 2002. We still expect that fully diluted earnings per share for 2003 will be between $0.53 and $0.55 per share, including $0.36 from the gain on the sale of our investment in HTE. EBITDA for 2003 is expected to be in the range of $44 million to $46 million, including the $23 million gain on the sale of the HTE investment. Our results for the first nine months of the year suggest that we will likely be closer to the upper ends of those ranges. Further, we now expect that total capital expenditures for 2003 will be approximately $9 million.”
Mr. Yeaman continued, “Although our market, particularly at the higher end, continues to be impacted by the economy and government budget pressures, we are seeing indications that demand is beginning to strengthen. With solid cash flow and a strong balance sheet, Tyler has the resources and the commitment to improve our products, and our competitive position, each and every quarter. By doing so, we believe we are well-positioned to continue to grow and gain market share.”
Tyler Technologies has scheduled a conference call for October 30 at 10:30 a.m. Central Time to discuss the Company’s third quarter 2003 earnings. The conference call can be accessed by visiting the Company’s homepage at www.tylerworks.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 throughout all 50 states, Canada, Puerto Rico and the United Kingdom. More information about Tyler Technologies can be found on the World Wide Web at www.tylerworks.com.
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Oct 29, 2003 |
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