AMTROL reports record first quarter sales.WEST WARWICK West Warwick (wôr`wĭk, –`ĭk), town (1990 pop. 29,268), Kent co., central R.I., on the Pawtuxet River; set off from Warwick and inc. 1913. Textile manufacturing remains a leading industry. West Warwick includes the village of River Point. , R.I.--(BUSINESS WIRE)--May 20, 1997--AMTROL Inc. today announced that operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the first quarter ended April 5, 1997 increased 42% to $4.3 million from $3.0 million in the first quarter of 1996 on record first quarter sales. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter increased 9% to $45.0 million from $41.2 in last year's comparable quarter. Net loss for the quarter was $.3 million compared with net income of $1.9 million in the first quarter of 1996. The first quarter of 1997 included amortization of goodwill of $.9 million and interest expenses of $4.5 million. The goodwill amortization reflects the acquisition of the company by affiliates of The Cypress Cypress, city, United States Cypress (sī`prəs), city (1990 pop. 42,655), Orange co., S Calif. near Long Beach; inc. 1956. Forest Lawn–Cypress, a branch of the famous cemetery in Glendale, Calif. Group L.L.C. together with management in November November: see month. 1996. The interest expense of $4.5 million reflects the company's higher levels of debt related to the financing of the acquisition. "Strength across most of our major product offerings resulted in increased sales for the quarter," stated Jack Cashman Cashman is a computer game by Bill Dunlevy (co-creator of Time Bandit) and Doug Frayer for the Tandy Color Computer 2, distributed by Computer Shack and released in July 1983. , AMTROL's chairman and chief executive officer. "In addition, we are pleased to report that our actions to improve our cost structure have resulted in a 16% reduction in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the quarter," Cashman said. Key AMTROL products, including portable water system tanks, hot water makers, indirect fired water heating Water heating is a thermodynamic process using an energy source to heat water above its initial temperature. Typical domestic uses of hot water are for cooking, cleaning, bathing, and space heating. In industry both hot water and water heated to steam have many uses. systems and domestic disposable disposable Nursing adjective Referring to that which is discarded or disposed of noun An item used in health care-related Pt contact which is discarded after use–eg masks, gloves, gowns, needles, paper products, syringes, wipes. See Biohazardous waste. containers had improved sales in the quarter. AMTROL also announced that it has entered into an agreement to sell all of the assets, subject to all liabilities, of its American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Granby Inc. subsidiary. AMTROL had previously announced that it was considering the possible sale of American Granby as part of its continued rationalization rationalization, in psychology: see defense mechanism. of its manufacturing facilities and product lines and implementation of its growth strategy. AMTROL expects to apply the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the sale, estimated at between $4.8 million and $5.3 million, to the repayment of debt and to fund future growth. AMTROL is a leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. producer and marketer of flow and expansion control technology used in water systems and heating ventilating ventilating Natural or mechanically induced movement of fresh air into or through an enclosed space. The hazards of poor ventilation were not clearly understood until the early 20th century. Expired air may be laden with odors, heat, gases, or dust. and air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful. products. The Company's major products are pressure regulating tanks used in water well and hydronic hy·dron·ic adj. Of or relating to a heating or cooling system that transfers heat by circulating a fluid through a closed system of pipes. [hydr(o)- + -onic (as in electronic).] heating applications. AMTROL also manufactures returnable and non-returnable containers for refrigerant re·frig·er·ant adj. 1. Cooling or freezing; refrigerating. 2. Reducing fever. n. 1. A substance, such as air, ammonia, water, or carbon dioxide, used to provide cooling either as the working substance of gases. Products are marketed under the Well-X-Trol, Extrol, Therm-X-Trol and Champion brand names. AMTROL is a wholly-owned subsidiary of AMTROL Holdings, Inc., which is controlled by Cypress Merchant Banking Partners L.P. and Cypress Offshore Partners, L.P., private equity funds managed by The Cypress Group L.L.C. -0-
AMTROL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - in thousands)
For The Quarter Ended
April 5, March 30,
1997 1996
(Successor (Predecessor
Company) Company)
Net Sales $45,035 $41,162
Cost of Goods Sold 33,359 30,436
Gross Profit 11,676 10,726
Operating Expenses:
Selling 3,568 3,855
General and administrative 2,850 3,837
Amortization of Goodwill 938 -
Income from operations 4,320 3,034
Other Income (expense):
Interest expense (4,529) (35)
Interest income 234 65
License and distributorship fees 50 56
Other, net 173 58
Income before provision for income taxes 248 3,178
Provision for Income Taxes 588 1,239
Net (Loss) Income ($340) $1,939
Amtrol Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited - in thousands)
Assets Apr. 5, Dec. 31,
1997 1996
Current assets:
Cash and cash equivalents $864 $6,383
Accounts receivable, less allowance for
doubtful accounts 30,702 21,861
Accounts receivable-tax refund - 2,000
Inventories 26,503 24,783
Prepaid income taxes 2,044 1,734
Prepaid expenses and other 944 691
Assets held for sale 1,500 1,500
Total current assets 62,557 58,952
Net property, plant and equipment 37,713 36,889
Other assets:
Cash surrender value of officers' life insurance 475 1,614
Goodwill 146,752 147,756
Financing Costs 8,176 8,387
Other 1,620 1,285
----- -----
157,023 159,042
------- -------
$257,293 $254,883
Liabilities and shareholders' equity
Current liabilities:
Current maturities of long term debt $1,001 $825
Accounts payable 9,787 5,794
Accrued expenses 9,368 14,472
Accrued interest 5,494 2,232
Accrued income taxes 1,362 582
Total current liabilities 27,012 23,905
Long term debt, less current installments 158,850 159,175
Other noncurrent liabilities 4,416 4,544
Deferred income taxes 318 222
Shareholders' equity:
Common stock $.01 par value -
Authorized - 1,000 shares
Issued - 100 shares. - -
Additional paid-in capital 69,326 69,326
Retained earnings (2,629) (2,289)
Total shareholders' equity 66,697 67,037
------- -------
$257,293 $254,883
CONTACT: AMTROL Inc., West Warwick Edward J. Cooney 401/884-6300 |
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