AMTROL to explore strategic alternatives; Reports first quarter earnings; Declares special cash & regular dividend.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)--April 24, 1996--AMTROL Inc. today announced first quarter financial results and that its board of directors has retained Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. Inc. and HSBC HSBC Hongkong and Shanghai Banking Corporation HSBC Humane Society of Broward County (Florida) HSBC Humane Society of Bay County (Bay County, Michigan) Securities Inc. as financial advisors to help the company explore strategic alternatives to enhance shareholder value, including a possible business combination, the sale of all or a portion of the company, potential acquisitions or any other similar transactions. The company said there can be no assurance that any transaction will result from the exploration process. The company's board also declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a special cash dividend of 70 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , in addition to a regular quarterly dividend of five cents per share of common stock, both payable May 15, 1996 to shareholders of record May 6, 1996. The special dividend represents the proceeds from the sale of real estate and other non-operating sources. AMTROL's 1996 first quarter net income was $1.94 million, or 26 cents a share, compared with net income of $2.85 million, or 38 cents a share, in the prior year's first quarter. Sales in the quarter were $41.2 million, compared with $43.2 million in the first quarter of 1995. The company reported that the first quarter began with weak sales across most major product lines reflecting a general industry slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. and a reduction of domestic chemical container sales due to the continuing transition from CFCs to new alternative refrigerants Chemical refrigerants are assigned an R number(sometimes the label replaces it with the word Freon) which is determined systematically according to molecular structure. The following is a list of refrigerants with their R numbers, IUPAC chemical name, molecular formula, and CAS number. . Margins were adversely affected by increased export sales, production interruptions due to poor weather conditions and a plant consolidation. Sales showed improvement in February February: see month. , with increases continuing through March and into the beginning of the second quarter. Sales of AMTROL's water systems products were 54 percent of total sales, while 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 accounted for the remaining 46 percent. International sales increased to 17 percent of total sales during the quarter. In comparing first quarter 1996 sales to the comparable period of 1995, the company noted that 1995 first quarter sales were favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted by an unanticipated pre-buy of domestic chemical containers. 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 and air conditioning products. The company's stock is traded on the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on under the symbol AMTL AMTL Army Materials Technology Laboratory AMTL American Medical Testing Laboratories AMTL Advanced Manufacturing Technology Laboratory AMTL active management of the third stage of labor . -0-
AMTROL INC.
CONDENSED STATEMENT OF CONSOLIDATED EARNINGS
Quarter Ended
March 30, 1996 April 1, 1995
(In thousands, except per
share data)
Net Sales $41,162 $43,162
Cost of Sales 30,436 30,752
Gross Profit 10,726 12,410
Selling, General and
Administrative Costs 7,692 7,809
Income from Operations 3,034 4,601
Other Income (Expense) 144 65
Income before provision for
income taxes 3,178 4,666
Provision for income taxes 1,239 1,820
Net Income $1,939 $2,846
Net Income per share $0.26 $0.38 Weighted average shares outstanding 7,485 7,570
-0-
AMTROL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited-in thousands, except share data)
ASSETS
March 30, April 1,
1996 1995
CURRENT ASSETS: Cash and cash equivalents $ 3,128 $ 1,458 Accounts receivable, less allowance for doubtful accounts 30,262 27,317 Inventories 23,326 24,255 Prepaid income taxes 2,921 2,037 Prepaid expenses and other 629 902 Assets held for sale 3,736 -- Total current assets 64,002 55,969 Net property, plant and equipment 28,495 32,025
OTHER ASSETS:
Cash surrender value of
officers' life insurance 1,679 3,110
Other 1,267 897
------- -------
2,946 4,007
------- -------
$95,443 $92,001
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES: Accounts payable $ 7,503 $ 8,257 Accrued expenses 8,742 8,081 Accrued income taxes 1,700 2,694 Total current liabilities 17,945 19,032 OTHER NONCURRENT LIABILITIES 4,905 5,892 DEFERRED INCOME TAXES 740 563 SHAREHOLDERS' EQUITY Preferred stock $.01 par value - Authorized - 5,000,000 shares Issued - None Common stock $.01 par value - Authorized - 15,000,000 shares Issued - 7,652,706 shares in 1996 and 7,595,593 shares in 1995 76 76
Additional paid-in capital 29,177 28,470
Retained earnings 45,881 39,199
Treasury Stock - 214,200
shares in 1996 and 82,000
shares in 1995 (3,281) (1,231)
Total shareholders' equity 71,853 66,514
--------- ---------
$ 95,443 $ 92,001
CONTACT: AMTROL Inc. Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and J. Carlotti Vice Chairman 401/884-6300 |
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