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ALDILA POSTS STRONG SECOND QUARTER RESULTS

 SAN DIEGO, Aug. 9 /PRNewswire/ -- Aldila, Inc. (NASDAQ-NMS: ALDA), the nation's largest manufacturer of graphite golf club shafts, today reported a 23 percent increase in sales and a 59 percent increase in income before extraordinary items for the second quarter ended June 30, 1993. Sales in the second quarter increased to $17.8 million from $14.4 million in the prior year. Net income increased to $2.3 million or $0.36 per share in 1993 (before an $0.8 million after-tax charge ($0.13 per share) for early retirement of debt associated with the company's initial public offering in June) from $1.4 million or $0.26 per share in 1992. After the extraordinary charge, net income increased 4 percent to $1.5 million in 1993 from $1.4 million in 1992.
 "The increase in sales was driven by continuing strength from our base of OEM customers including Callaway and Ping and a significant increase in sales of our iron shafts in the second quarter," said Gary T. Barbera, chief executive officer and president. "Iron shaft dollar sales were up 66 percent versus the second quarter of 1992 suggesting that golfers are increasingly realizing the benefits of graphite for their irons as well as their woods. Net income has increased at a greater rate than net sales due to the fixed nature of our interest expense and goodwill and the reduction in total debt from the IPO."
 For the six months ended June 30, 1993, sales were $31.2 million and net income before extraordinary charges was $3.3 million, increases of 24 percent and 76 percent, respectively, over the comparable 1992 period. Earnings per share before extraordinary charges were $0.55 in 1993 versus $0.34 in 1992. After the extraordinary charge for early debt retirement, earnings per share were $0.42 in 1993 versus $0.34 in 1992, an increase of 24 percent.
 In June, Aldila completed an initial public offering of 2.64 million shares of common stock at a price of $14 per share. The proceeds of the offering were used to repay all of the company's $27 million bank debt and the balance was used, in part, to prepay $10 million of subordinated debt held by partnerships affiliated with Forstmann Little & Co.
 Aldila designs, manufacturers an markets graphite golf club shafts for use in clubs assembled and manufactured by leading golf club companies as well as pro shops, custom club shops and repair shops.
 ALDILA, INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 (In thousands except per share data)
 6/30/93 12/31/92
 (unaudited) (derived from
 audited financial
 ASSETS statements)
 CURRENT ASSETS:
 Cash and cash equivalents $1,980 $2,433
 Accounts receivable, less
 allowance for doubtful accounts
 of $306 and $294 and allowance
 for sales returns of $850 and $850 8,122 3,077
 Inventories 5,481 4,964
 Deferred tax assets 1,701 1,647
 Prepaid expenses and other
 current assets 834 541
 Total current assets 18,118 12,662
 Property and equipment 5,313 5,029
 Trademarks and patents, less
 accumulated amortization of
 $660 and $440 16,678 16,898
 Goodwill, less accumulated amort.
 of $2,096 and $1,398 53,814 54,512
 Deferred financing fees, less
 accumulated amortization of
 $448 at Dec. 31, 1992 -- 1,450
 Total assets 93,923 90,551
 LIABILITIES AND STOCKHOLDERS' EQUITY
 CURRENT LIABILITIES:
 Current portion of long-term debt -- 4,000
 Advances under line of credit 3,000 --
 Accounts payable 5,866 3,302
 Accrued expenses 3,388 3,144
 Income taxes payable 350 516
 Total current liabilities 12,604 10,962
 LONG-TERM LIABILITIES:
 Long-term debt 20,000 54,000
 Deferred tax liabilities 7,932 8,047
 Deferred rent liability 994 1,000
 Total liabilities 41,530 74,009
 COMMITMENTS AND CONTINGENCIES
 STOCKHOLDERS' EQUITY:
 Common stock, $.01 par value;
 authorized 30 million shares;
 issued and outstanding 8,165,579
 shares as of June 30, 1993 and
 5,531,579 shares as of
 Dec. 31, 1992 82 210
 Additional paid-in capital 46,646 13,194
 Retained earnings 5,665 3,138
 Total stockholders' equity 52,393 16,542
 Total liabilities and
 stockholders' equity 93,923 90,551
 ALDILA, INC. AND SUBSIDIARIES
 Consolidated Statement of Income
 (Unaudited - in thousands, except per share data)
 Periods ended Three months Six months
 June 30, 1993 1992 1993 1992
 Net sales $17,802 $14,424 $31,200 $25,017
 Cost of sales 9,348 7,566 16,746 13,583
 Gross profit 8,454 6,858 14,454 11,434
 S,G&A 3,080 2,331 5,590 4,348
 Amort. of goodwill 350 349 699 699
 Operating income 5,024 4,178 8,165 6,387
 Other:
 Interest expense 1,051 1,272 2,212 2,558
 Other (income), net (13) (6) (27) (15)
 Income before income taxes
 and extraordinary loss 3,986 2,912 5,980 3,844
 Provision for inc. taxes 1,719 1,490 2,667 1,967
 Inc. bef. extraord. loss 2,267 1,422 3,313 1,877
 Extraord. loss related to
 early retirement of debt,
 net of inc. tax
 benefit of $527 786 -- 786 --
 Net income $1,481 $1,422 $2,527 $1,877
 Earns. per common share:
 Inc. bef. extraord loss $ 0.36 $ 0.26 $ 0.55 $ 0.34
 Net income $ 0.23 $ 0.26 $ 0.42 $ 0.34
 Wtd. avg. common shares
 outstanding 6,374 5,532 6,018 5,532
 -0- 8/9/93
 /CONTACT: George Sard or Anna Cordasco of Sard Verbinnen & Co., 212-687-8080/
 (ALDA)


CO: Aldila, Inc. ST: California IN: SU: ERN

SM-LS -- NY013 -- 0651 08/09/93 09:45 EDT
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Publication:PR Newswire
Date:Aug 9, 1993
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