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| SSA Global Reports Record Fourth Quarter and Fiscal Year End 2005 Operating Results; Record revenues and profit growth fueled by strong license growth |
CHICAGO--(BUSINESS WIRE)--Sept. 15, 2005--SSA Global(TM) (NASDAQ:SSAG), a leading provider of extended enterprise solutions and services, today announced financial results for the fourth quarter and for the year ended July 31, 2005. "As we move forward in the delivery of our stated product strategy, we continue to see growth in our license revenue which we believe to be reflective of our customer's commitment to SSA Global," said Mike Greenough, chairman, president and CEO of SSA Global. Total revenue for the quarter was a record $186.9 million, an increase of seven percent from $174.3 million in the fourth quarter of last year. For the year, total revenue was $711.8 million, an increase of 12 percent from $636.5 million last year. License revenue for the quarter was a record $58.8 million, an increase of 22 percent from the fourth quarter last year. License revenue for the year was $203.7 million, an increase of 29 percent from last year. On an organic basis, license revenue grew 16 percent for the quarter and 15 percent for the year and represented 31 percent and 29 percent of total revenue, respectively. During the fourth quarter, North America contributed 46 percent of total revenue; Europe, Middle East and Africa (EMEA) contributed 38 percent; and Asia-Pacific/Japan (APJ) and Latin America contributed the remaining 16 percent. For the quarter ended July 31, 2005, 1,199 contracts were signed, including 56 new customers that represented seven percent of the total license value associated with software contracts signed in the quarter. For the fourth quarter, the company reported GAAP net income of $8.9 million compared to $3.1 million last year. Earnings per diluted common share, under GAAP, were $0.04 for the current year quarter. On an adjusted basis, earnings for the quarter grew 55 percent to $22.8 million or $0.31 per diluted share up from $14.7 million or $0.20 per diluted share last year. (Adjusted earnings and earnings per diluted share excludes amortization of acquired intangibles, in-process research and development charges, stock-based compensation expense, restructuring charges and benefits and includes an assumed 34 percent tax rate.) For the quarter, EBITDA was $40.2 million or 22 percent of total revenue. Cash and cash equivalents as of July 31, 2005 totaled $165.4 million and operating cash flow for the quarter totaled $23.4 million. Days Sales Outstanding (DSO) were 71, down from 83 days at April 30, 2005 and down from 81 days at the end of the fourth quarter of 2004. The Company will hold a conference call following the release after the close of market at 4:30 p.m. EDT.
Date: Thursday, September 15, 2005
Time: 4:30 p.m. EDT
Dial in: +1 (866) 203-3436 or outside the U.S.
+1 (617) 213-8849
Passcode: 34377100
On the call, senior management will review fourth quarter 2005 earnings and the outlook for the first quarter of 2006. Investors and analysts are invited to participate on the call. Please dial in approximately ten minutes prior to start time. A live, audio-only webcast of the call will be made available to the public on the Company's website at http://investor.ssaglobal.com and will be archived for approximately three months following the call. In addition, a replay of the call will be available approximately one hour after the conference call concludes and will remain available through Thursday, September 22nd. To access the replay, dial 1-888-286-8010 in the U.S. and Canada or 1-617-801-6888 if outside U.S. and Canada, passcode 97134174. About SSA Global SSA Global(TM) (NASDAQ:SSAG) is a leading provider of extended ERP solutions for manufacturing, distribution, retail, services and public organizations worldwide. In addition to core ERP applications, SSA Global offers a full range of integrated extension solutions including corporate performance management, customer relationship management, product lifecycle management, supply chain management and supplier relationship management. Headquartered in Chicago, SSA Global has 63 locations worldwide and its product offerings are used by approximately 13,000 active customers in over 90 countries. For additional information, visit the SSA Global web site at www.ssaglobal.com. SSA Global(TM) is the corporate brand for product lines and subsidiaries of SSA Global Technologies, Inc. SSA Global, SSA Global Technologies and SSA GT are trademarks of SSA Global Technologies, Inc. Other products mentioned in this document are registered, trademarked or service marked by their respective owners. Presentation of Non-GAAP Financial Measures The non-GAAP financial measures presented in the text of this press release and accompanying supplementary financial information (also referred to as "adjusted" and "EBITDA") represent the financial measures used by the Company's management to evaluate the quarterly operating and cash flows performance of the Company and to conduct its business operations. These non-GAAP financial measures are also used by management to evaluate return on investment, income contribution and future impact to operating results of potential mergers and acquisitions. In addition, these non-GAAP financial measures facilitate management's internal comparisons to competitors' operating results and the software industry in general. This non-GAAP financial information is provided as additional information for investors and is not in accordance with, or an alternative to, GAAP. In addition, the non-GAAP financial information provided may be different than similar measures used by other companies. However, the Company's management believes these non-GAAP measures provide useful information to investors, potential investors, securities analysts and others so each group can evaluate the Company's current and future prospects in the same manner as management if they so chose. A reconciliation of GAAP financial information to adjusted results and EBITDA has been provided in the financial statement tables that accompany this press release. Forward-Looking Statements These materials may contain "forward-looking statements". Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe," "anticipate," "expect," "estimate," "intend," "project," "plan," "will be," "will likely continue," " will likely result," or words or phrases with similar meaning. All of these forward-looking statements are based on estimates and assumptions made by our management that, although we believe to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, strategy or actual results to differ materially from the forward-looking statements. We operate in a changing environment in which new risks can emerge from time to time. It is not possible for management to predict all of these risks, nor can it assess the extent to which any factor, or a combination of factors, may cause our business, strategy or actual results to differ materially from those contained in forward-looking statements. Factors you should consider that could cause these differences include, among other things:
-- General economic and business conditions, including exchange
rate fluctuations in the United States and abroad;
-- Our ability to identify acquisition opportunities and
effectively and cost-efficiently integrate acquisitions;
-- Our ability to maintain effective internal control over
financial reporting;
-- Our ability to attract and retain personnel, including key
personnel;
-- Our success in developing and introducing new services and
products; and
-- Competition in the software industry, as it relates to both
our existing and potential new customers.
SSA GLOBAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP
(in millions, except per share data)
(unaudited)
Three Months Ended Fiscal Year Ended
July 31, July 31,
------------------- -------------------
Revenue: 2005 2004 2005 2004
--------- --------- --------- ---------
License fees $ 58.8 $ 48.3 $ 203.7 $ 157.5
Support 85.1 82.9 343.8 322.5
Services and other 43.0 43.1 164.3 156.5
--------- --------- --------- ---------
Total revenue 186.9 174.3 711.8 636.5
--------- --------- --------- ---------
Operating expenses:
Cost of revenues:
Cost of license fees 7.3 8.0 27.0 22.3
Amortization of acquired
technology 3.6 3.7 15.5 12.5
Cost of support, services
and other 52.8 50.4 197.8 175.4
Sales and marketing 47.3 43.6 182.9 153.8
Research and development 26.1 24.7 102.4 95.0
General and administrative 15.7 24.9 77.8 92.6
Non-cash stock compensation
expense 10.2 2.3 17.5 9.4
Amortization of intangibles 6.3 6.1 25.5 23.4
Restructuring charges
(benefits) (0.4) 1.7 (1.8) 3.1
--------- --------- --------- ---------
Total operating expenses 168.9 165.4 644.6 587.5
Operating income 18.0 8.9 67.2 49.0
Interest expense, net 2.9 3.9 14.7 13.6
Other (income) expense 0.3 (2.4) (1.7) (0.6)
--------- --------- --------- ---------
Income before income taxes 14.8 7.4 54.2 36.0
Provision for income taxes 5.9 4.3 21.7 17.2
--------- --------- --------- ---------
Net income 8.9 3.1 32.5 18.8
Preferred stock dividends 2.7 7.5 26.0 28.8
Preferred stock dividends in
excess of stated amount 3.7 15.9 36.2 52.7
Cash dividend paid to preferred
stockholders - - 25.0 -
--------- --------- --------- ---------
Distributed earnings -
preferred stockholders 6.4 23.4 87.2 81.5
Undistributed earnings -
preferred stockholders 0.6 - - -
--------- -------- --------- ---------
Distributed and undistributed
earnings - preferred
stockholders 7.0 23.4 87.2 81.5
--------- --------- --------- ---------
Net income (loss) to common
stockholders $ 1.9 $ (20.3) $ (54.7) $ (62.7)
--------- --------- --------- ---------
--------- --------- --------- ---------
Earnings (loss) per common
share:
Basic $ 0.04 $ (4.24) $ (3.58) $ (13.10)
Diluted 0.04 (4.24) (3.58) (13.10)
Earnings per preferred share:
Basic and diluted $ 6.92 $ 7.80 $ 34.89 $ 27.17
Weighted average common shares:
Basic 46.421 4.785 15.280 4.785
Diluted 51.430 4.785 15.280 4.785
Weighted average preferred
shares:
Basic and diluted 1.011 3.000 2.499 3.000
SSA GLOBAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - ADJUSTED (NON-GAAP)
(in millions, except per share data)
(unaudited)
Three Months Ended
July 31,
----------------------------------------------------
% of % of %
2005 Revenues 2004 Revenues Inc (Dec)
--------- --------- ---------- --------- ---------
Revenue:
License fees $ 58.8 31% $ 48.3 28% 22%
Support 85.1 46% 82.9 48% 3%
Services and
other 43.0 23% 43.1 25% 0%
--------- ----------
Total revenue 186.9 100% 174.3 100% 7%
--------- ----------
Operating
expenses:
Cost of revenues:
Cost of license
fees 7.3 4% 8.0 5% -9%
Cost of support,
services and
other 52.8 28%(1) 50.4 29% 5%
Sales and
marketing 47.3 25%(1) 43.6 25% 8%
Research and
development 26.1 14%(1) 23.6 14% 11%
General and
administrative 15.7 8%(1) 24.9 14% -37%
--------- ----------
Total operating
expenses 149.2 80% 150.5 86% -1%
--------- ----------
Operating income 37.7 20% 23.8 14% 58%
Interest expense,
net 2.9 2% 3.9 2% -26%
Other (income)
expense 0.3 0% (2.4) -1% (a)
--------- ----------
Income before
income taxes 34.5 18% 22.3 13% 55%
Provision for
income taxes 11.7 6% 7.6 4% 54%
--------- ----------
Net income $ 22.8 12% $ 14.7 8% 55%
--------- ----------
--------- ----------
Earnings per
common share:
Basic $ 0.34 $ 0.22
Diluted $ 0.31 $ 0.20
Weighted average
common shares:
Basic 68.021 68.017
Diluted 73.641 72.527
Fiscal Year Ended
July 31,
----------------------------------------------------
% of % of %
2005 Revenues 2004 Revenues Inc (Dec)
--------- --------- ---------- --------- ---------
Revenue:
License fees $ 203.7 29% $ 157.5 25% 29%
Support 343.8 48% 322.5 51% 7%
Services and
other 164.3 23% 156.5 25% 5%
--------- ----------
Total revenue 711.8 100% 636.5 100% 12%
--------- ----------
Operating
expenses:
Cost of revenues:
Cost of license
fees 27.0 4% 22.3 4% 21%
Cost of support,
services and
other 197.8 28% 175.4 28% 13%
Sales and
marketing 182.9 26% 153.8 24% 19%
Research and
development 102.4 14% 93.9 15% 9%
General and
administrative 77.8 11% 92.6 15% -16%
--------- ----------
Total operating
expenses 587.9 83% 538.0 85% 9%
--------- ----------
Operating income 123.9 17% 98.5 15% 26%
Interest expense,
net 14.7 2% 13.6 2% 8%
Other (income)
expense (1.7) 0% (0.6) 0% (a)
--------- ----------
Income before
income taxes 110.9 16% 85.5 13% 30%
Provision for
income taxes 37.7 5% 29.1 5% 30%
--------- ----------
Net income $ 73.2 10% $ 56.4 9% 30%
--------- ----------
--------- ----------
Earnings per
common share:
Basic $ 1.08 $ 0.83
Diluted $ 0.99 $ 0.79
Weighted average
common shares:
Basic 68.018 68.017
Diluted 73.751 71.769
(a) not meaningful
(1) Includes net expense adjustments associated with the amendment of
the CEO's employment agreement to eliminate deferred payment
largely offset by payment of management bonuses -- both as a
result of our initial public offering in May 2005. Amounts are as
follows, in millions:
% of
Deferred Mgt. Revenues -
As Payment Bonus As As
Reported Elimination IPO Adjusted Adjusted
--------- ----------- --------- --------- ----------
Cost of revenues
- Cost of support,
services and
other $ 52.8 $ - $ (0.2) $ 52.6 28%
Sales and
marketing 47.3 - (1.5) 45.8 25%
Research and
development 26.1 - (0.2) 25.9 14%
General and
administrative 15.7 7.7 (4.6) 18.8 10%
--------- ----------- --------- ---------
$ 141.9 $ 7.7 $ (6.5) $143.1
--------- ----------- --------- ---------
--------- ----------- --------- ---------
SSA GLOBAL TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED (NON-GAAP) CONSOLIDATED
STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
Three Months Ended
July 31,
--------------------------------------------------------
2005 2005 2004 2004
GAAP Adjustment Non-GAAP GAAP Adjustment Non-GAAP
-------- ---------- -------- ------- ---------- --------
Revenue:
License fees $ 58.8 $ - $ 58.8 $ 48.3 $ - $ 48.3
Support 85.1 - 85.1 82.9 - 82.9
Services and
other 43.0 - 43.0 43.1 - 43.1
-------- ---------- -------- ------- ---------- --------
Total
revenue 186.9 - 186.9 174.3 - 174.3
-------- ---------- -------- ------- ---------- --------
Operating
expenses:
Cost of
revenues:
Cost of
license
fees 7.3 - 7.3 8.0 - 8.0
Amortization
of acquired
technology
(1) 3.6 (3.6) - 3.7 (3.7) -
Cost of
support,
services
and other 52.8 - 52.8 50.4 - 50.4
Sales and
marketing 47.3 - 47.3 43.6 - 43.6
Research and
development
(1) 26.1 - 26.1 24.7 (1.1) 23.6
General and
administrative 15.7 - 15.7 24.9 - 24.9
Non-cash
stock
compensation
expense (2) 10.2 (10.2) - 2.3 (2.3) -
Amortization
of intangibles
(1) 6.3 (6.3) - 6.1 (6.1) -
Restructuring
charges (3) (0.4) 0.4 - 1.7 (1.7) -
-------- ---------- -------- ------- ---------- --------
Total
operating
expenses 168.9 (19.7) 149.2 165.4 (14.9) 150.5
Operating
income 18.0 19.7 37.7 8.9 14.9 23.8
Interest
expense, net 2.9 - 2.9 3.9 - 3.9
Other (income)
expense 0.3 - 0.3 (2.4) - (2.4)
-------- ---------- -------- ------- ---------- --------
Income before
income taxes 14.8 19.7 34.5 7.4 14.9 22.3
Provision for
income taxes
(4) 5.9 5.8 11.7 4.3 3.3 7.6
-------- ---------- -------- ------- ---------- --------
Net income 8.9 13.9 22.8 3.1 11.6 14.7
Preferred
stock
dividends (5) 2.7 (2.7) - 7.5 (7.5) -
Preferred
stock
dividends in
excess of
stated amount
(5) 3.7 (3.7) - 15.9 (15.9) -
-------- ---------- -------- ------- ---------- --------
Distributed
earnings -
preferred
stockholders 6.4 (6.4) - 23.4 (23.4) -
Undistributed
earnings -
preferred
stockholders
(5) 0.6 (0.6) - - - -
-------- ---------- -------- ------- ---------- --------
Distributed
and
undistributed
earnings -
preferred
stockholders 7.0 (7.0) - 23.4 (23.4) -
-------- ---------- -------- ------- ---------- --------
Net income
(loss) to
common
stockholders $ 1.9 $ 20.9 $ 22.8 $(20.3) $ 35.0 $ 14.7
-------- ---------- -------- ------- ---------- --------
-------- ---------- -------- ------- ---------- --------
Earnings
(loss) per
common share
(5):
Basic $ 0.04 $ 0.34 $(4.24) $ 0.22
Diluted $ 0.04 $ 0.31 $(4.24) $ 0.20
Earnings per
preferred
share (5):
Basic and
diluted $ 6.92 $ - $ 7.80 $ -
Weighted
average
common shares
(5):
Basic 46.421 21.600 68.021 4.785 63.232 68.017
Diluted 51.430 22.211 73.641 4.785 67.742 72.527
Weighted
average
preferred
shares (5):
Basic and
diluted 1.011 (1.011) - 3.000 (3.000) -
Fiscal Year Ended
July 31,
--------------------------------------------------------
2005 2005 2004 2004
GAAP Adjustment Non-GAAP GAAP Adjustment Non-GAAP
-------- ---------- -------- ------- ---------- --------
Revenue:
License Fees $ 203.7 $ - $ 203.7 $ 157.5 $ - $ 157.5
Support 343.8 - 343.8 322.5 - 322.5
Services and
other 164.3 - 164.3 156.5 - 156.5
-------- ---------- -------- ------- ---------- --------
Total
revenue 711.8 - 711.8 636.5 - 636.5
-------- ---------- -------- ------- ---------- --------
Operating
expenses:
Cost of
revenues:
Cost of
license
fees 27.0 - 27.0 22.3 - 22.3
Amortization
of acquired
technology
(1) 15.5 (15.5) - 12.5 (12.5) -
Cost of
support,
services
and other 197.8 - 197.8 175.4 - 175.4
Sales and
marketing 182.9 - 182.9 153.8 - 153.8
Research and
development
(1) 102.4 - 102.4 95.0 (1.1) 93.9
General and
administrative 77.8 - 77.8 92.6 - 92.6
Non-cash
stock
compensation
expense (2) 17.5 (17.5) - 9.4 (9.4) -
Amortization
of intangibles
(1) 25.5 (25.5) - 23.4 (23.4) -
Restructuring
charges
(benefits)
(3) (1.8) 1.8 - 3.1 (3.1) -
-------- ---------- -------- ------- ---------- --------
Total
operating
expenses 644.6 (56.7) 587.9 587.5 (49.5) 538.0
Operating
income 67.2 56.7 123.9 49.0 49.5 98.5
Interest
expense, net 14.7 - 14.7 13.6 - 13.6
Other (income)
expense (1.7) - (1.7) (0.6) - (0.6)
-------- ---------- -------- ------- ---------- --------
Income before
income taxes 54.2 56.7 110.9 36.0 49.5 85.5
Provision for
income taxes
(4) 21.7 16.0 37.7 17.2 11.9 29.1
-------- ---------- -------- ------- ---------- --------
Net income 32.5 40.7 73.2 18.8 37.6 56.4
Preferred
stock
dividends (5) 26.0 (26.0) - 28.8 (28.8) -
Preferred
stock
dividends in
excess of
stated amount
(5) 36.2 (36.2) - 52.7 (52.7) -
Cash dividend
paid to
preferred
stockholders
(5) 25.0 (25.0) - - - -
-------- ---------- -------- ------- ---------- --------
Distributed
earnings -
preferred
stockholders 87.2 (87.2) - 81.5 (81.5) -
-------- ---------- -------- ------- ---------- --------
Net income
(loss) to
common
stockholders $ (54.7) $ 127.9 $ 73.2 $ (62.7) $ 119.1 $ 56.4
-------- ---------- -------- ------- ---------- --------
-------- ---------- -------- ------- ---------- --------
Earnings
(loss) per
common share
(5):
Basic $ (3.58) $ 1.08 $(13.10) $ 0.83
Diluted $ (3.58) $ 0.99 $(13.10) $ 0.79
Earnings per
preferred
share (5):
Basic and
diluted $ 34.89 $ - $ 27.17 $ -
Weighted
average
common shares
(5):
Basic 15.280 52.738 68.018 4.785 63.232 68.017
Diluted 15.280 58.471 73.751 4.785 66.984 71.769
Weighted
average
preferred
shares (5):
Basic and
diluted 2.499 (2.499) - 3.000 (3.000) -
Footnotes - Adjustments:
(1) Represents the amortization of intangible assets associated with
acquisitions in fiscal 2002, 2003 and 2004, which includes
acquired technology, customer lists, patents and in-process
research and development charges.
(2) Represents non-cash stock-based compensation expense associated
with stock options granted to certain employees on July 31, 2003.
(3) Restructuring charges (benefits) include costs associated with SSA
employee severance and facilities termination costs and
adjustments to restructuring liabilities assumed in connection
with acquisitions in fiscal 2003 and 2004 that occurred more than
twelve months subsequent to the consummation of the related
acquisition.
(4) Provision for income taxes is adjusted to 34% for all periods as
this represents the Company's estimated long-term effective cash
income tax rate. The Company's cash income tax rate was
approximately 10% for fiscal 2005.
(5) Gives effect to the issuance of common stock associated with the
initial public offering of common stock as if it occurred at the
beginning of the periods presented, including (a) conversion of
preferred stock into 52.755 million shares of common stock, (b)
issuance of 10.350 million shares in the initial public offering
and (c) inclusion of potentially dilutive securities in diluted
earnings per common share that were anti-dilutive for historical
reporting purposes.
SSA GLOBAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
July 31, April 30, July 31,
2005 2005 2004
Assets (unaudited) (unaudited) (audited)
----------- ----------- -----------
Current assets:
Cash and cash equivalents $ 165.4 $ 128.9 $ 106.1
Restricted cash 4.9 4.6 1.0
Accounts receivable, net 144.1 168.5 158.5
Deferred tax assets 19.9 14.3 7.7
Prepaid and other current
assets 25.7 33.7 29.3
----------- ----------- -----------
Total current assets 360.0 350.0 302.6
----------- ----------- -----------
Non-current assets:
Property and equipment, net 18.3 18.7 14.2
Intangible assets, net 143.1 152.4 182.1
Goodwill 296.3 308.1 331.6
Deferred tax assets 6.4 5.1 3.0
Other 6.6 7.3 7.5
----------- ----------- -----------
Total non-current assets 470.7 491.6 538.4
----------- ----------- -----------
Total Assets $ 830.7 $ 841.6 $ 841.0
----------- ----------- -----------
----------- ----------- -----------
Liabilities and Stockholders'
Equity
Current liabilities:
Current portion of long-term
debt $ 1.6 $ 2.0 $ 2.7
Accounts payable and accrued
liabilities 106.0 107.7 132.8
Accrued compensation and
related benefits 56.5 65.2 56.4
Deferred revenue 183.8 214.0 202.6
Income taxes payable 1.8 5.5 3.6
----------- ----------- -----------
Total current liabilities 349.7 394.4 398.1
----------- ----------- -----------
Non-current liabilities:
Long-term debt 161.0 244.5 243.5
Other long term obligations 7.1 7.0 6.2
Deferred revenue 38.5 44.9 46.4
----------- ----------- -----------
Total liabilities 556.3 690.8 694.2
Stockholders' equity 274.4 150.8 146.8
----------- ----------- -----------
Total Liabilities and Stockholders'
Equity $ 830.7 $ 841.6 $ 841.0
----------- ----------- -----------
----------- ----------- -----------
SSA GLOBAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
Three Months Ended Fiscal Year Ended
July 31, July 31,
------------------- ------------------
2005 2004 2005 2004
--------- --------- -------- ---------
Net income $ 8.9 $ 3.1 $ 32.5 $ 18.8
Adjustments to reconcile net
income to net cash provided by
operating activities:
Non-cash expenses 29.5 25.9 98.1 81.9
Changes in working capital,
net of acquisitions (15.0) (16.4) (43.9) (49.5)
--------- --------- -------- ---------
Net cash provided by
operating activities 23.4 12.6 86.7 51.2
Cash flows from investing
activities:
Acquisitions, net of cash
acquired - (19.6) 1.0 (45.0)
Purchase of property and
equipment (2.0) (1.6) (11.3) (1.6)
Capitalized software costs (1.2) (0.2) (3.6) (2.3)
Capital customer lists - - - (2.5)
Other - - - (0.2)
--------- --------- -------- ---------
Net cash used in investing
activities (3.2) (21.4) (13.9) (51.6)
Cash flows from financing
activities:
Issuance of common stock 113.8 - 113.8 -
Common stock issuance costs (12.3) - (12.3) -
Borrowings - - - 40.7
Payments of debt (81.9) (0.7) (84.2) (2.2)
Changes in restricted cash (0.3) - (3.9) 0.2
Cash dividend paid to preferred
stockholders - - (25.0) -
--------- --------- -------- ---------
Net cash provided by (used in)
financing activities 19.3 (0.7) (11.6) 38.7
Effect of exchange rate changes
on cash and cash equivalents (3.0) 1.4 (1.9) 2.7
--------- --------- -------- ---------
Net increase (decrease) in
cash and cash equivalents 36.5 (8.1) 59.3 41.0
Cash and cash equivalents at
beginning of period 128.9 114.2 106.1 65.1
--------- --------- -------- ---------
Cash and cash equivalents at end
of period $ 165.4 $ 106.1 $ 165.4 $ 106.1
--------- --------- -------- ---------
--------- --------- -------- ---------
SSA GLOBAL TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION OF EBITDA TO NET CASH PROVIDED BY OPERATIONS
(in millions)
(unaudited)
Three Months Ended Fiscal Year Ended
July 31, July 31,
------------------- ------------------
2005 2004 2005 2004
--------- --------- -------- ---------
EBITDA (1) $ 40.2 $ 26.8 $ 136.3 $ 103.8
Interest paid (1.7) (2.5) (8.6) (7.6)
Income taxes paid (2.1) (0.5) (3.8) (2.1)
Impairment losses - - - 0.3
Changes in working
capital/other (13.0) (11.2) (37.2) (43.2)
--------- --------- -------- ---------
Net cash provided
by operations $ 23.4 $ 12.6 $ 86.7 $ 51.2
--------- --------- -------- ---------
--------- --------- -------- ---------
(1) Represents net income before interest, income taxes, options
amortization, depreciation and amortization related to customer
lists, patents, acquired technology, capitalized software
development and in-process research and development.
CONTACT: SSA Global, Chicago
Maria Diecidue (Press), 312-258-6000
maria.diecidue@ssaglobal.com
or
Dawn Drella (Investor), 312-474-7694
dawn.drella@ssaglobal.com
or
Edelman
Scott Goldberg (Press), 312-297-7414
scott.goldberg@edelman.com
SOURCE: SSA Global
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| "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding SSA Global's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year. |