Date: Fri, 21 Nov 1997 03:10:01 GMT Server: Apache/1.1.1 Content-type: text/html Content-length: 12521 Last-modified: Wed, 15 Oct 1997 21:00:11 GMT Anacomp - Newswire
 
        Anacomp Announces Improved First Quarter Financial Results

    ATLANTA, Jan. 30 /PRNewswire/ --  Anacomp, Inc. (Nasdaq: ANCO) today
released first quarter financial results for the period ended
December 31, 1996 that reflect improved EBITDA (earnings before interest,
taxes, other income and expenses, reorganization items, depreciation, and
amortization).
    For the three months ended December 31, 1996 (Anacomp's first quarter of
fiscal 1997), the company reported EBITDA of $23.3 million or 20% of revenues,
compared to $18.0 million or 16% of revenues in the previous quarter, and
$23.1 million or 18% of revenues in the comparable period a year ago.
Contributing to the first quarter improvement was a $3.6 million payment
relating to a long-standing OEM purchase agreement for Anacomp's leading XFP
2000 COM technology, sales of newer digital products, and continued reductions
in operating expenses.  Without the one-time $3.6 million payment, first
quarter EBITDA would have been $19.7 million.
    Revenues for the period were $116.5 million, compared to $114.8 million in
the previous quarter and $130.3 million in the comparable period a year ago.
The first quarter results reflect the $3.6 million payment noted above,
further stabilization of some of the company's maturing traditional
micrographics and magnetics businesses, and modest new revenues from the
company's emerging digital solutions.  The revenue decline from the first
quarter a year ago was primarily due to Anacomp's exit of certain non-
strategic businesses, as well as negative revenue trends during the period in
segments of the company's maturing businesses.
    As a result of Anacomp's successful financial restructuring and emergence
from Chapter 11 last year, Anacomp is amortizing over three-and-a-half years a
"reorganization value" asset of approximately $263 million. This non-cash
reorganization amortization was $19.2 million in the first quarter, resulting
in a net loss of $12.9 million.  That compares to a net loss of $17.6 in the
previous quarter (Anacomp's first quarter post-Chapter 11).  As mentioned
above, those results are not comparable to the first quarter of fiscal 1996
(all of which occurred pre-Chapter 11).
    "We're very pleased with our first quarter performance," stated Lang
Lowrey, Anacomp's chairman and chief executive officer.  "Not only did we see
some unexpected success in some of our newer products and services, but our
EBITDA remained steady for the third consecutive quarter -- even backing-out
the $3.6 million first quarter payment relating to our XFP 2000 OEM
arrangement."
    "We also completed three relatively small acquisitions in the first
quarter," continued Lowrey, "including a COM service bureau that strengthened
our market position in the New York area, an archival storage vault in
Massachusetts, and a computer peripheral equipment company that provides us
with synergies for both our maintenance and magnetics businesses.  Plus, we
successfully completed a $25 million rights offering, providing us with
significant additional resources to invest in the acquisition of
businesses and technologies.  Our acquisition focus going forward will be on
products and services that expand our current business relationships and that
bring advanced technologies into the company."
    The first quarter also saw the appointment of Ralph W. Koehrer of
Automatic Data Processing, Inc. as Anacomp's new president and chief operating
officer.  "In reviewing the first quarter results, I see several significant
challenges but also real opportunities and a solid foundation from which to
grow Anacomp's business in the future," said Koehrer.  "As an example, our new
Technology Services Group in the United States performed particularly well in
the first quarter, and I'm optimistic about opportunities in this area,
especially as it relates to providing our customers with expanded professional
consulting services."  Koehrer officially assumed his new duties on
January 6, 1997.
    Serving customers throughout the world, Anacomp provides products and
services that manage corporate information throughout its life cycle.
    All of Anacomp's news releases are distributed through PR Newswire, an
international wire service that can be accessed through the Internet or
numerous on-line providers.  Recent news releases and quarterly
reports are available through Anacomp's Company News-On-Call service by
calling 800-758-5804, ext. 054532.


          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
                         Anacomp, Inc. and Subsidiaries

                                    Reorganized    Reorganized   Predecessor
                                      Company        Company        Company
                                   Three Months    Three Months  Three Months
                                      Ended           Ended          Ended
                                   December 31,   September 30,  December 31,
    (Dollars in thousands,            1996             1996          1995
      except per share amounts)
    Revenues:
      Services provided            $  45,425       $  44,704      $  50,928
      Equipment and supply sales      71,028          70,052         79,337
      Total                          116,453         114,756        130,265

    Operating costs and expenses:
      Costs of services provided      24,107          24,101         27,838
      Costs of equipment and
        supplies sold                 50,932          52,963         61,761
      Selling, general and
        administrative expenses       21,448          23,986         24,447
      Amortization of reorganization
        asset                         19,247          19,247           ---
      Total                          115,734         120,297        114,046

    Income (loss) from operations before
      interest, other income,
      financial restructuring costs,
      and income taxes                   719          (5,541)        16,219

    Interest income                      984             940            501
    Interest expense and fee
      amortization                    (9,802)         (9,949)       (18,286)
    Financial restructuring costs       ---             ---          (2,801)
    Other income (loss)                  (15)             13          6,620
    Total                             (8,833)         (8,996)       (13,966)

    Income (loss) before income
      taxes                           (8,114)        (14,537)         2,253
    Provision for income taxes         4,800           3,100          1,200
    Net income (loss)                (12,914)        (17,637)         1,053

    Preferred stock dividends
      and discount accretion            ---             ---             540
    Net income (loss) available to
      common stockholders          $ (12,914)      $ (17,637)    $      513

    Earnings (loss) per common and
      common equivalent share:

      Net income (loss) available to
        common stockholders        $   (1.01)      $   (1.76)

    CASH FLOW DATA:
      EBITDA                       $   23,325      $  17,978     $  23,095
      Capital expenditures
        (net of acquisitions)           3,202          1,705         1,161
      Payments to acquire companies
        and customer rights             3,379          3,844          ---
      Principal payments on debt          482         14,344        13,705


                     CONDENSED CONSOLIDATED BALANCE SHEETS
                         Anacomp, Inc. and Subsidiaries

                                          December 31,       September 30,
    (Dollars in thousands, except            1996               1996
       per share amounts)                 (Unaudited)
    ASSETS
    Current Assets:
      Cash and cash equivalents           $  71,574         $  38,198
      Restricted Cash                         9,597             9,597
      Accounts and notes receivable,
        less allowances for doubtful
        accounts of $6,850 and $6,768,
        respectively                         60,578            58,806
      Current portion of long-term
        receivables                           4,928             4,690
      Inventories                            29,968            31,856
      Prepaid expenses and other              5,781             4,383
    Total current assets                    182,426           147,530

    Property and equipment, at cost less
      accumulated depreciation and
      amortization                           28,147            27,102
    Long-term receivables, net of
      current portion                         9,479            10,632
    Excess of purchase price over net
      assets of businesses acquired and
      other intangibles, net                  4,386             2,285
    Reorganization value in excess of
      identifiable assets                   218,473           240,344
    Other assets                              7,615             7,528
    Total                                 $ 450,526         $ 435,421

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Current portion of long-term debt   $  31,444         $  31,848
       Accounts payable                      49,242            48,090
       Accrued compensation, benefits and
         withholdings                        13,238            13,728
       Accrued income taxes                   9,537            11,930
      Accrued interest                        6,893            10,586
      Other accrued liabilities              33,859            36,814
    Total current liabilities               144,213           152,996

    Noncurrent liabilities:
      Long-term debt, net of current
        portion                             229,623           217,044
      Other noncurrent liabilities            6,116             6,812
    Total noncurrent liabilities            235,739           223,856

    Stockholders' equity:
      Preferred stock, 1,000,000 shares
        authorized, none issued                ---              ---
      Common stock, $.01 par value;
        20,000,000 shares authorized;
        13,700,764 and 10,099,050
        issued respectively                     137               101
          Capital in excess of par value    104,856            80,318
          Cumulative translation adjustment
            from May 31, 1996                   503               159
          Accumulated deficit from
            May 31, 1996                    (34,922)          (22,009)
    Total stockholders' equity               70,574            58,569
    Total                                 $ 450,526         $ 435,421

SOURCE  Anacomp, Inc.


CONTACT: Media: Jeff Withem, 404-876-3361; email, jwithem@anacomp.com; Analyst:
Nancy Vandeventer, 800-350-3044 or email, nvandeventer@anacomp.com, both
of Anacomp, Inc.