[0] Congoleum Corporation Reports Third Quarter Results.Business Editors MERCERVILLE, N.J.--(BUSINESS WIRE)--Nov. 8, 2000 Congoleum Corporation (AMEX AMEX See: American Stock Exchange :CGM (1) (Computer Graphics Metafile) An ISO/IEC standard format for 2D graphics images introduced in 1987. Primarily a vector graphics format for technical illustrations and geophysical visualizations, CGM also supports raster graphics and text. ) today reported its financial results for the third quarter ended September September: see month. 30, 2000. Sales for the three months ended September 30, 2000 were $61.0 million, compared with sales of $62.5 million reported in the third quarter of 1999, a decrease of 2.4%. Net income for the quarter ended September 30, 2000 was $1.7 million, or $.21 per share, compared with net income of $1.5 million, or $.17 per share in the third quarter of 1999. Sales for the nine months ended September 30, 2000 were $173.1 million, compared with sales of $192.2 million for the first nine months of 1999, a decrease of 9.9%. Net loss for the first nine months of 2000 was $2.4 million, or $.29 per share, compared with net income of $3.4 million, or $.39 per share for the first nine months of 1999. Roger S. Marcus Marcus, in the Bible: see Mark, Saint. , Chairman of the Board, commented, "During the past several months, we have seen more significant positive developments than at any other time since our Company was formed. The sales of our two new products, Ultima(TM) and Grandeur(R), both exceeded our expectations and contributed significantly to the improvement in our results over the earlier part of the year. Cost reductions we implemented earlier this year further aided third quarter profitability. Most recently, our appointment of Mohawk Industries Mohawk Industries is an American company that supplies residential and commercial flooring and other home products. It is one of the two largest carpet manufacturers in the world. It is exchanged on the New York Stock Exchange under the listed security MHK. as a national distributor sets the stage for much improved market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" , although impact on the third quarter was minimal ($1.1 million in sales)." Mr. Marcus continued, "With the success of our Ultima product line and the addition of Mohawk Industries, the Company is positioned for continued profits and improved sales. Further improvements can be expected when raw material costs moderate and manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected rebounds. We also expect sales growth as we begin shipping the Obsidian obsidian (ŏbsĭd`ēən), a volcanic glass, homogeneous in texture and having a low water content, with a vitreous luster and a conchoidal fracture. (TM) product and other products planned for introduction in the first quarter of 2001." As previously announced, Congoleum has appointed Mohawk Industries as a national distributor of its products. Mohawk began selling the Congoleum line on November 1 and Congoleum intends to phase out its distribution arrangements with LDBrinkman & Co. ("Brinkman"). In regards to the change, Congoleum and LDBrinkman are in arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the , and an interim arbitration order has been issued requiring the Company to continue to sell products to Brinkman through the end of this year and allowing Congoleum to proceed with its distribution arrangements with Mohawk. While Congoleum expects a final arbitration decision will be in its favor, there can be no assurance of the outcome. The Company also expects to record a charge in the fourth quarter of 2000 for costs associated with this distribution transition. Congoleum Corporation is a leading manufacturer of resilient See resiliency. flooring, serving both residential and commercial markets. Its sheet, tile tile, one of the ceramic products used in building, to which group brick and terra-cotta also belong. The term designates the finished baked clay—the material of a wide variety of units used in architecture and engineering, such as wall slabs or blocks, floor , plank and laminate laminate, n a thin slice of porcelain or plastic fabricated in a dental lab, which is cemented to the front of the teeth to cover gaps, whiten stained teeth, or reshape chipped or broken teeth. products are available in a wide variety of designs and colors, and are used in remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling , manufactured housing, new construction and commercial applications. The Congoleum brand name is recognized and trusted by consumers as representing a company that has been supplying attractive and durable flooring products for over a century. Congoleum is a 54% owned subsidiary of American Biltrite, Inc. (AMEX: ABL). The above news release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. which involve a number of risks and uncertainties, including the outcome of arbitration proceedings and its distribution transition, product demand, consumer preferences, changes in customer inventories, pricing, competitive factors, raw material prices, market conditions, and other factors. Actual results could differ significantly as a result of these and other factors discussed in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1999 filed with the Securities and Exchange Commission. (See attached table)
CONGOLEUM CORPORATION
RESULTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
------------- -------------
2000 1999 2000 1999
--------- --------- --------- ---------
Net sales $ 60,979 $ 62,495 $ 173,109 $ 192,188
Cost of sales 45,470 43,335 132,609 136,148
Selling, general
& administrative
expenses 11,771 15,512 40,871 47,223
--------- --------- --------- ---------
Income (loss) from
operations 3,738 3,648 (371) 8,817
Interest expense,
net (1,383) (1,541) (4,095) (4,721)
Other income, net 296 312 1,156 1,419
--------- --------- --------- ---------
Income (loss)
before income
taxes 2,651 2,419 (3,310) 5,515
Provision (credit)
for income taxes 926 913 (898) 2,082
--------- --------- --------- ---------
Net income (loss) $ 1,725 $ 1,506 $ (2,412) $ 3,433
========= ========= ========= =========
Earnings (loss) per
common share,
basic and diluted $ .21 $ .17 $ (.29) $ .39
========= ========= ========= =========
Weighted average
number of common
and equivalent
shares outstanding
Basic shares 8,260 8,662 8,269 8,800
========= ========= ========= =========
Diluted shares 8,265 8,662 8,269 8,800
========= ========= ========= =========
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