ARMOR ALL PRODUCTS CORP. REPORTS A DECREASE IN THIRD QUARTER REVENUES AND EARNINGS.ALISO VIEJO, Calif.--(BUSINESS WIRE)--Jan. 22, 1996--Armor All Products Corp. (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 :ARMR ARMR Army Readiness and Mobilization Region ), the nation's leading marketer of automotive appearance products, reported a decrease in revenues and earnings for the third quarter ended December December: see month. 31. Revenues for the third quarter were $34.6 million, a decrease of 12% from $39.2 million reported in the third quarter a year ago. Net income decreased 54% to $1.9 million from $4.0 million and earnings per share decreased 53% to 9 cents from 19 cents reported in the prior year third quarter. For the nine month period ended December 31, revenues decreased 9% to $124.6 million from $136.9 million. Net income and earnings per share decreased 46% to $8.0 million from $14.8 million and 38 cents from 70 cents, respectively. The decline in revenues was due to lower shipments in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. automotive division, partially offset by shipment increases in the international and home care divisions. In the prior year's third quarter, automotive shipments were higher than historical levels because of heavy shipping of promotional merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain in support of a strategic marketing program to increase market share of Armor All(R) Protectant protectant /pro·tec·tant/ (pro-tek´tant) protective. protectant, protective 1. affording defense or immunity. 2. an agent affording defense against harmful influence. . This year, promotional merchandise is being shipped later in order to meet just-in-time just-in-time - dynamic translation inventory objectives of retailers, contributing to an adverse comparison with prior year's sales. In addition, a decline in consumer purchases resulted in weaker reorder re·or·der v. re·or·dered, re·or·der·ing, re·or·ders v.tr. 1. To order (the same goods) again. 2. To straighten out or put in order again. 3. To rearrange. v. levels from retailers. International revenues increased from the prior year third quarter despite continued weakness in Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. . The home care division's third quarter revenues increased over the prior year largely because of sales of the new home care products introduced last spring. This year, the Company has introduced four new home care products. Armor All(R) Painted Wood Wash Kit is the first product specifically designed to clean painted wood siding. And to meet the needs of the rapidly growing pressure washer A pressure washer is a mechanical device that uses high-pressure water to remove mold, grime, dust mud and dirt from surfaces and objects such as buildings, vehicles and concrete road surfaces. category, Armor All has introduced three specially formulated for·mu·late tr.v. for·mu·lat·ed, for·mu·lat·ing, for·mu·lates 1. a. To state as or reduce to a formula. b. To express in systematic terms or concepts. c. cleaning products designed to be used with a pressure washer to clean decks, house siding and cars. Profit margins were lower because fixed marketing and advertising expenses were spread over a lower revenue base. Commenting on the results, Kenneth M. Evans Ev·ans , Herbert McLean 1882-1971. American anatomist who isolated four pituitary hormones and discovered vitamin E (1922). , president and chief executive officer said, "As we have stated before, the calendar 1995 selling season has been disappointing. Weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. retail conditions and lower consumer
purchases of automotive appearance products continue to affect the level
of shipments to our customers. However, we are pleased with the
progress our home care and international divisions are making this year;
and our 1996 new product introductions in both our automotive and home
care divisions are achieving broad distribution. We expect to see strong
momentum behind these brands in fiscal 1997. We began shipping several
of the new products in late December, and all of these products will
contribute to revenues in the fourth fiscal quarter."
Looking forward Evans added, "We are concerned about the current weakness in the retail environment for automotive products and do not expect an improvement in our business in this fiscal year. Despite poor automotive appearance industry conditions, we are launching new marketing, selling and promotional plans which are designed to achieve improved performance during our first quarter of fiscal 1997. We intend to pursue our growth strategy through new product introductions and our aggressive share building program which we successfully implemented last fiscal year." Armor All Products is the nation's leading marketer of automotive appearance products. The Company's home care division located in Charleston Charleston, cities, United States Charleston. 1 City (1990 pop. 20,398), seat of Coles co., E Ill.; inc. 1835. Charleston is an industrial, rail, and trade center located in an agricultural area; shoes are also made. Eastern Illinois Univ. , South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. markets products designed to protect, clean and beautify surfaces in and around the home. Armor All International markets and sells the Armor All(R) brand automotive products in more than 70 countries around the world. -0-
Armor All Products Corporation
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(unaudited)
(in thousands except per share amounts)
Three Months Ended Nine Months Ended
December 31 December 31
1995 1994 % Change 1995 1994 % Change
Revenues $34,637 $39,244 (11.7)% $124,633 $136,947 (9.0)% Costs and expenses Cost of sales 15,622 17,100 (8.6) 58,241 58,427 (0.3) Selling, general and administrative 15,718 15,133 3.9 51,962 52,164 (0.4) Amortization of intangibles 614 606 1,841 1,852 Total 31,954 32,839 (2.7) 112,044 112,443 (0.4) Operating income 2,683 6,405 (58.1) 12,589 24,504(48.6) Interest income - net 510 576 1,232 1,357 Income before income taxes 3,193 6,981 (54.3) 13,821 25,861(46.6) Income taxes 1,341 2,981 5,805 11,043 Net income $1,852 $4,000 (53.7)% $8,016 $14,818(45.9)% Earnings per common share $0.09 $0.19 (52.6)% $0.38 $0.70(45.7)% Weighted average common shares outstanding 21,299 21,222 21,288 21,195 -0-
CONDENSED CONSOLIDATED
BALANCE SHEETS
(unaudited)
(in thousands)
December 31 March 31
1995 1995
Assets
Current Assets
Cash and cash equivalents $38,545 $22,249
Accounts receivable 34,532 84,865
Inventories 14,637 12,695
Prepaid expenses 9,208 1,757
Total current assets 96,922 121,566
Property - net 8,854 9,373
Intangibles 40,190 41,911
Total assets $145,966 $172,850
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $7,591 $17,385
Payable to McKesson 1,058 2,595
Accrued selling expenses 2,263 8,590
Dividends payable 3,408 3,404
Taxes payable and other liabilities 4,091 11,410
Total current liabilities 18,411 43,384
Deferred Income Taxes 582 481
Stockholders' Equity 126,973 128,985
Total liabilities and
stockholders' equity $145,966 $172,850
CONTACT: Armor All, Aliso Viejo, Calif. Melanie D. Day/Director, Investor Relations Investor relations The process by which the corporation communicates with its investors. 714/448-4207 |
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