Infor’s net debt increases slightly in fiscal 2014 to $5.3 billion

By Lisa Kerner

Charlotte, N.C., July 28 – Infor, Inc. ended its fourth quarter on May 31 with cash and cash equivalents of $575 million and long-term debt of about $5.3 billion.

This compares to $422 million and $5.2 billion, respectively, at May 31, 2013, according to a form 10-Q filed with the Securities and Exchange Commission on Monday.

Restricted cash at quarter-end totaled $26.8 million compared to $7.2 million a year ago.

Cash flows from operations, along with cash and cash equivalents and borrowing capacity under the company's revolving credit facility, are believed to be sufficient to meet cash requirements for working capital, capital expenditures, restructuring activities and investments for the remainder of fiscal 2015 and for the foreseeable future, the filing stated.

Infor’s net interest expense net decreased by 9.6% to $378 million in fiscal 2014 compared to about $418 million in fiscal 2013. The decrease was attributed to the refinancing of the company’s tranche B term loan in the second quarter of fiscal 2013, its tranche B-1 term loan and euro term loan in the first quarter of fiscal 2014, and the refinancing of its tranche B-2 term loan in the third quarter of fiscal 2014.

The company’s debt maturities range from 2016 to 2020.

Financial highlights

Net income for the year was $122 million compared to a net loss of about $76 million in the prior fiscal year.

For the full year, Infor used net cash of $15.7 million in financing activities and net cash of $252 million in investing activities, primarily for acquisitions, the SEC filing stated.

Infor used $3.5 billion of cash for debt repayment, which was offset by debt issued of about $3.5 billion.

This compares to net cash of about $107 million used in financing activities and net cash of about $140 million used in investing activities in fiscal 2013.

Net cash provided by operating activities for the year totaled $414.6 million compared to $282.4 million for the prior year.

Infor is a New York-based provider of business software.

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