Tyler Technologies Reports 2000 Results |
DALLAS, March 20 -- Dallas-based Tyler Technologies, Inc. (NYSE: TYL) today reported operating results for the three- and twelve-month periods ended December 31, 2000. Tyler's continuing operations consist of its software and services segment, which 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 fourth quarter of 2000 were $26.0 million, a 9% increase from $23.8 million in the fourth quarter of 1999. Loss from continuing operations for the fourth quarter of 2000 was $1.3 million, or $0.03 per diluted share, compared to a loss from continuing operations of $2.4 million, or $0.06 per diluted share, in the fourth quarter of 1999.
EBITDA, or earnings from continuing operations before interest, costs of certain acquisition opportunities, income taxes, depreciation and amortization was $2.2 million, or $0.05 per diluted share, in the fourth quarter of 2000, compared to $1.5 million, or $0.04 per diluted share, in the fourth quarter of 1999.
For the year ended December 31, 2000, revenues from continuing operations were $93.2 million, up nearly 31% from $71.4 million in the prior year. Loss from continuing operations for the year ended December 31, 2000 was $7.5 million, or $0.17 per diluted share, compared with a loss from continuing operations of $2.0 million, or $0.05 per diluted share, in the prior year period.
EBITDA for the year ended December 31, 2000 was $4.3 million, or $0.09 per diluted share, compared to $8.0 million, or $0.20 per diluted share, for the year ended December 31, 1999.
As first announced in August 2000, Tyler embarked on a program to reduce its debt, strengthen its balance sheet, and focus on the core business of providing information management products and services to local governments. In September 2000, Tyler sold its Kofile unit and certain other assets for $14.4 million in cash. In December 2000, the Company sold its Business Resources Corporation (BRC) unit to ACS in a cash transaction valued at $71.0 million. The Company recorded a small net gain on the sale of these businesses and assets, which represented the major part of Tyler's information and property records services segment. The interdependency of the remaining businesses in the information and property records services segment with BRC resulted in the Company's decision to dispose of that entire segment and discontinue the development of its national data repository following the sale of BRC. As a result of that decision, the Company recorded in the fourth quarter of 2000 an estimated after-tax loss of $13.6 million on the disposal of these remaining businesses and assets, which is expected to be completed in 2001.
"The year 2000 was a challenging period for Tyler Technologies," said John M. Yeaman, Tyler's President. "The deferral of purchasing decisions by local government customers following their Y2K-related efforts in 1999 led to weakness in software license and related professional services revenues. On a proforma basis, as if all acquisitions and dispositions had occurred at the beginning of 1999, total revenues declined 13% to $93.2 million in 2000 from $107.4 million in 1999. We are pleased, however, that during this period of industry-wide softness in the market, we were able to move forward on schedule with important aspects of our strategic plan to grow our business."
Mr. Yeaman added, "Looking to the future, Tyler is investing in product development centered around browser-based, n-tier architecture technologies. Our capital spending for software development was nearly $7 million in 2000, and we expect to spend approximately the same amount in 2001. The new generation of products that Tyler is developing offers significant opportunities for sales to new and existing customers. We have successfully completed the development of the core technology framework for the next generation of our products and will begin releasing new applications later in 2001.
"While demand has not yet fully returned to normal levels, leading indicators give us reason to be optimistic about prospects for a return in the demand for our products and services," continued Mr. Yeaman. "Our backlog at December 31, 2000 was nearly $100 million, over 44% higher than at year-end 1999, including in part a record $34 million appraisal services and software contract we signed in August 2000 with Nassau County, New York. We currently are targeting revenue growth in excess of 20%, although it will take time to ramp back up to that level. We expect sequential quarterly improvement in our operating results during 2001, with positive EBITDA throughout the year and a return to profitability in the second half.
"Our actions to dispose of our information and property records services segment represented a major strategic move that we believe positions us extremely well to build on Tyler's position as the nation's leading company specializing in providing information technology and services to local governments throughout the United States. We did not believe that the businesses we sold would grow as rapidly as our software and services business. By eliminating debt with the $85 million in cash proceeds from the divestitures in 2000, we vastly improved Tyler's balance sheet. Tyler is now basically debt-free, with a solid capital base that enables us to move forward confidently as we leverage our loyal customer base and substantial domain expertise in our market."
Tyler Technologies has scheduled a conference call for Wednesday, March 21, at 10:00 a.m. Central Standard Time, to discuss the Company's 2000 operating results. The conference call can be accessed on the Company's homepage at http://www.tylertechnologies.com or by visiting http://www.streetevents.com/. A replay will be available on each of those Web sites following the conference call.
Based in Dallas, Tyler Technologies is a leading provider of end-to-end information management solutions and e-government 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 http://www.tylertechnologies.com.
Tyler Technologies, Inc. has included in this press release "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning its business and operations. Tyler Technologies expressly disclaims any obligation to release publicly any updates or revisions to these forward-looking statements to reflect any change in its expectations. These expectations and the related statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to, changes in competition, changes in general economic conditions, changes in the budgets and regulatory environments of the Company's customers, risks associated with the development of new products and the enhancement of existing products, the ability to attract and retain qualified personnel, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
SOURCE Tyler Technologies, Inc.
CONTACT: Brian K. Miller, Vice President - Finance of Tyler Technologies, Inc., 214-902-5080, or bmiller@tylertechnologies.com/
|
Mar 20, 2001 |
|