Aavid Thermal Technologies, Inc. Third Quarter Sales $47.6 Million; EPS $.32.CONCORD, N.H.--(BUSINESS WIRE)--Oct. 27, 1999-- Aavid Thermal thermal /ther·mal/ (ther´m'l) pertaining to or characterized by heat. ther·mal adj. 1. Of, relating to, using, producing, or caused by heat. 2. Technologies, Inc. (Nasdaq:AATT AATT Advanced Air Transportation Technologies (NASA air traffic control project) AATT Advanced Aviation Transportation Technology AATT Advanced Air Traffic Technologies (US FAA) AATT Absolute Arrival Time Technique ), today announced revenues of $47.6 million and earnings of 32 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. for the third quarter of 1999. Revenues of $47.6 million compare to revenues of $47.8 million in the second quarter, and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of 32 cents compare to 32 cents per share for the second quarter of 1999 and 26 cents per share (prior to one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges) for the third quarter of 1998. The company previously announced on August 23, 1999 that it had entered into a definitive agreement pursuant to which a new company formed by Willis Wil·lis , Thomas 1621-1675. English anatomist and physician known for his studies of the nervous system and the brain. He discovered the circle of Willis at the base of the brain. Stein Stein , William Howard 1911-1980. American biochemist. He shared a 1972 Nobel Prize for pioneering studies of ribonuclease. & Partners will acquire Aavid in a cash merger. The price in the merger will be $25.50 per share in cash, or approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $260 million. The transaction is subject to a number of customary closing conditions. In the fourth quarter of 1999, the Company intends to hold a special meeting of its stockholders to approve the transaction. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a company spokesperson, due to the pending transaction, the Company will forego its quarterly conference call. Company Background Aavid Thermal Technologies is a leading provider of thermal management solutions for dissipating potentially damaging heat from digital and power electronics. Aavid serves a highly diversified diversified (di·verˑ·s range of markets, principally in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and the Far East. Aavid's 1998 sales totaled
$209 million, driven by the company's operations in two distinct
markets: thermal management solutions and computational fluid dynamics Computational fluid dynamicsThe numerical approximation to the solution of mathematical models of fluid flow and heat transfer. Computational fluid dynamics is one of the tools (in addition to experimental and theoretical methods) available to solve software. Thermal management solutions include products and services for problems associated with the dissipation Dissipation See also Debauchery. Breitmann, Hans lax indulger. [Am. Lit.: Hans Breitmann’s Ballads] Burley, John wasteful ne’er-do-well. [Br. Lit. of unwanted heat in electronic and electrical components and systems. Computational fluid dynamics (CFD CFD - Computational Fluid Dynamics ) software involves developing software for computer modeling and flow analysis of products and processes that would otherwise require time consuming and expensive physical models and the facilities to test them. Ongoing increases in silicon and system integration, higher processing speeds See MHz. and frequencies, smaller form factors, more sophisticated power requirements and other advances in chip technology create excessive heat in microprocessors This is a list of microprocessors. Intel
Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. operate efficiently only in a narrow temperature band. The excessive heat generated by these semiconductors not only harms their own performance but also degrades system performance and reliability and can cause system failure. These negative effects are exacerbated by the increasingly wide range of environmental conditions, including temperature extremes, in which electronic systems are expected to operate. The use of Aavid's thermal solutions helps maintain device and system performance and reliability and helps avoid premature pre·ma·ture adj. 1. Occurring or developing before the usual or expected time. 2. Born after a gestation period of less than the normal time, especially, in human infants, after a period of less than 37 weeks. component and system failure. Additional information on Aavid Thermal Technologies is available on the World Wide Web at http://www.aatt.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 The matters discussed in this release contain 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. (as such term is defined in the Private Securities Litigation Reform Act of 1995) and information relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company that is based on the beliefs of the management of the Company, as well as assumptions made by and information currently available to the management of the Company. When used in this presentation, the words "estimate," "project," "believe," "anticipate," "intend," "expect," and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views of the Company with respect to future events, and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. The Company does not undertake any obligation to publicly release any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unanticipated events. -0-
AAVID THERMAL TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(Unaudited)
Oct. 2, Dec. 31,
1999 1998
ASSETS
Cash and cash equivalents $ 23,811 $ 20,027
Notes receivable -- 1,459
Accounts receivable-trade 35,476 31,158
Inventories 14,593 15,283
Refundable income taxes 370 370
Deferred income taxes 9,357 9,072
Prepaid and other current assets 3,475 2,897
-------- --------
Total current assets 87,082 80,266
Property, plant and equipment, net 41,758 42,497
Other assets, net 7,535 6,321
-------- --------
Total assets $136,375 $129,084
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of debt obligations $ 3,939 $ 3,442
Accounts payable - trade 13,212 17,377
Accrued expenses and other current
liabilities 25,152 23,488
-------- --------
Total current liabilities 42,303 44,307
Debt obligations, net of current portion 9,276 11,208
Deferred income taxes 2,189 2,218
-------- --------
Total liabilities 53,768 57,733
-------- --------
Stockholders' equity:
Common stock, $0.01 par value 96 93
Additional paid-in capital 58,543 56,740
Retained earnings 23,968 14,518
-------- --------
Total stockholders' equity 82,607 71,351
-------- --------
Total liabilities and stockholders'
equity $136,375 $129,084
======== ========
AAVID THERMAL TECHNOLOGIES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share data)
(UNAUDITED)
QUARTER ENDED
October 2, September 26,
1999 1998
Net sales $ 47,611 $ 48,837
Cost of goods sold 30,262 33,183
---------- ----------
Gross profit 17,349 15,654
Selling, general
and administrative
expenses 10,974 9,980
Research and
development 1,689 1,501
Restructuring and
buyout of compensation
agreement charges -- 3,880
---------- ----------
Income from
operations 4,686 293
Interest expense,
net ( 71) (340)
Other expense, net 212 ( 73)
---------- ----------
Income before
income taxes and
extraordinary item 4,827 (120)
Provision for
income tax
expense (1,641) 188
---------- ----------
Net income
$ 3,186 $ 68
========== ==========
Diluted Net income
(loss) per share $ 0.32 $ 0.01
========== ==========
Weighted average
common shares and
equivalents 9,956,796 9,526,593
========== ==========
AAVID THERMAL TECHNOLOGIES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share data)
(UNAUDITED)
NINE MONTHS ENDED
October 2, September 26,
1999 1998
Net sales $ 145,239 $ 158,682
Cost of goods sold 90,769 106,222
---------- ----------
Gross profit 54,470 52,460
Selling, general
and administrative
expenses 34,054 32,224
Research and
development 5,154 4,846
Restructuring and
buyout of compensation
agreement charges -- 5,740
---------- ----------
Income from
operations 15,262 9,650
Interest expense,
net (257) (1,155)
Other expense, net (277) (486)
---------- ----------
Income before
income taxes and
extraordinary item 14,728 8,009
Provision for
income tax
expense (5,241) (2,832)
---------- ----------
Net income $ 9,487 $ 5,177
========== ==========
Diluted Net income
(loss) per share $ 0.97 $ 0.55
========== ==========
Weighted average
common shares and
equivalents 9,781,146 9,457,437
========== ==========
AAVID THERMAL TECHNOLOGIES, INC.
COMPARATIVE FINANCIAL DATA (a)
(in millions, except EPS)
1997
Unaudited
Q1 Q2 Q3 Q4 Y/E
NET SALES 34.4 37.1 43.7 52.6 167.7
ATP-
Industrial Electronics 14.6 15.2 15.0 17.8 62.6
Computer and Network 10.1 10.2 13.0 14.1 47.4
Special Product
(ended Q1 99) 1.1 3.8 8.1 11.7 24.7
Fluent 8.6 7.8 7.5 8.7 32.5
Applied Thermal
Technologies 0.0 0.1 0.1 0.3 0.5
Cost of Sales 20.6 23.0 29.1 34.6 107.4
GROSS PROFIT 13.8 14.0 14.6 17.9 60.3
SG&A 8.3 8.6 8.9 10.9 36.7
R&D 1.8 1.7 1.6 1.8 6.9
OPERATING EXPENSES 10.1 10.4 10.5 12.7 43.6
OPERATING INCOME 3.7 3.7 4.1 5.2 16.7
Interest Inc/
(Exp), net -0.5 -0.5 -0.6 -0.6 -2.2
Other, net -0.5 -0.2 0.0 -0.5 -1.2
PRETAX INCOME 2.7 3.0 3.5 4.2 13.3
Provision for Taxes 1.0 1.0 1.3 1.5 4.8
NET INCOME 1.7 1.9 2.2 2.7 8.5
EPS (excl. one-time
charges) 0.21 0.23 0.25 0.30 0.98
Shares O/S 8.1 8.5 8.9 9.0 8.6
Capital Expenditures 1.4 2.2 4.6 6.9 15.1
Depreciation and
Amortization 1.6 1.7 1.7 2.6 7.6
Cash 3.2 4.6 5.3 6.9
Debt 26.2 27.3 30.2 24.0
Leverage Ratio 83% 77% 77% 48%
Inventory Turns
(Therm Products only) 7.3 7.8 8.9 9.6
A/R DSO 69 69 71 61
Number of employees 1,496 1,502 1,794 1,934
AAVID THERMAL TECHNOLOGIES, INC.
COMPARATIVE FINANCIAL DATA (a)
(in millions, except EPS)
1998
Unaudited
Q1 Q2 Q3 Q4 Y/E
NET SALES 55.6 54.3 48.8 50.4 209.1
ATP-
Industrial Electronics 17.4 16.5 13.0 13.3 60.2
Computer and Network 15.1 13.3 16.3 17.7 62.4
Special Product
(ended Q1 99) 12.6 15.0 10.8 8.6 47.0
Fluent 10.2 9.2 8.6 10.6 38.6
Applied Thermal
Technologies 0.3 0.3 0.3 0.3 1.2
Intercompany
Eliminations 0.0 0.0 -0.2 -0.1 -0.3
Cost of Sales 37.2 35.9 33.2 32.2 138.4
GROSS PROFIT 18.4 18.4 15.7 18.2 70.6
SG&A 11.0 11.2 10.0 11.6 43.8
R&D 1.7 1.7 1.5 1.9 6.8
OPERATING EXPENSES 12.7 12.9 11.5 13.5 50.5
OPERATING INCOME 5.7 5.5 4.2 4.7 20.1
Interest Inc/
(Exp), net -0.5 -0.4 -0.3 -0.2 -1.3
Other, net -0.3 -0.1 -0.1 0.0 -0.5
PRETAX INCOME 4.9 5.1 3.8 4.5 18.2
Provision for Taxes 1.8 1.9 1.3 1.6 6.6
NET INCOME 3.1 3.2 2.5 2.9 11.7
EPS (excl.
one-time charges) 0.33 0.34 0.26 0.31 1.23
Shares O/S 9.3 9.5 9.5 9.6 9.5
Capital Expenditures 4.4 2.4 1.7 1.9 10.4
Depreciation and
Amortization 2.4 2.7 2.6 2.1 9.9
Cash & S/T Notes Rec 5.9 4.4 12.5 21.5
Debt 21.8 17.3 15.7 14.7
Leverage Ratio 39% 27% 23% 21%
Inventory Turns
(Therm Products only) 10.1 10.4 9.6 7.7
A/R DSO 61 64 68 56
Number of employees 2,042 1,997 2,152 2,243
AAVID THERMAL TECHNOLOGIES, INC.
COMPARATIVE FINANCIAL DATA (a)
(in millions, except EPS)
1999
Unaudited
Q1 Q2 Q3
NET SALES 49.8 47.8 47.6
ATP-
Industrial Electronics 15.4 16.4 17.2
Computer and Network 18.7 19.0 19.2
Special Product
(ended Q1 99) 2.6 0.0 0.0
Fluent 12.9 12.0 11.0
Applied Thermal
Technologies 0.3 0.4 0.3
Intercompany
Eliminations -0.1 0.0 -0.1
Cost of Sales 31.4 29.1 30.3
GROSS PROFIT 18.5 18.6 17.3
SG&A 11.4 11.7 11.0
R&D 1.7 1.7 1.7
OPERATING EXPENSES 13.1 13.4 12.7
OPERATING INCOME 5.4 5.2 4.7
Interest Inc/
(Exp), net -0.1 -0.1 -0.1
Other, net -0.2 -0.2 0.2
PRETAX INCOME 5.0 4.9 4.8
Provision for Taxes 1.9 1.7 1.6
NET INCOME 3.2 3.1 3.2
EPS (excl.
one-time charges) 0.33 0.32 0.32
Shares O/S 9.6 9.8 10.0
Capital Expenditures 1.4 2.3 2.5
Depreciation and
Amortization 1.9 2.0 2.0
Cash & S/T Notes Rec 20.6 24.7 23.8
Debt 14.0 13.6 13.2
Leverage Ratio 19% 17% 16%
Inventory Turns
(Therm Products only) 8.1 7.0 7.4
A/R DSO 63 65 68
Number of employees 2,234 2,275 2,486
AAVID THERMAL TECHNOLOGIES, INC.
COMPARATIVE FINANCIAL DATA (a)
(in millions, except EPS)
1997
Unaudited
Q1 Q2 Q3 Q4 Y/E
MARGIN ANALYSIS
Cost of Sales 60.0% 62.1% 66.6% 65.9% 64.0%
Gross Margin 40.0% 37.9% 33.4% 34.1% 36.0%
SG&A 24.1% 23.3% 20.4% 20.7% 21.9%
R&D 5.3% 4.6% 3.6% 3.5% 4.1%
Operating
Margin 10.6% 10.0% 9.4% 10.0% 10.0%
Interest
Inc/Exp, net -1.4% -1.4% -1.4% -1.1% -1.3%
Pre Tax Income 7.9% 8.0% 7.9% 8.0% 7.9%
Tax Rate 37.7% 34.6% 36.5% 36.2% 36.2%
Net Income 4.9% 5.2% 5.0% 5.1% 5.1%
Yr to Yr %
Change
Sales 32.2% 61.1% 69.8% 63.1% 56.8%
Gross Profit 47.2% 55.8% 48.3% 40.3% 47.2%
Operating
Profit 56.6% 501.3% 127.0% 74.8% 115.2%
Pre Tax Income 37.8% 853.7% 185.7% 99.2% 138.3%
Net Income 34.0% 1008.0% 173.7% 97.8% 136.8%
Earnings per
Share 13.6% 922.0% 141.5% 76.0% 111.1%
Qtr to Qtr %
Change
Sales 6.7% 7.8% 17.8% 20.3%
Gross Profit 7.7% 2.0% 4.0% 22.9%
Operating
Profit 21.7% 1.0% 11.1% 27.9%
Pre Tax Income 29.2% 9.3% 16.5% 21.1%
Net Income 25.1% 14.8% 13.2% 21.6%
Earnings per
Share 23.4% 9.1% 9.1% 19.7%
Revenue By Market
Domestic 67% 68% 56% 50% 59%
International 33% 32% 44% 50% 41%
AAVID THERMAL TECHNOLOGIES, INC.
COMPARATIVE FINANCIAL DATA (a)
(in millions, except EPS)
1998
Unaudited
Q1 Q2 Q3 Q4 Y/E
MARGIN ANALYSIS
Cost of Sales 66.9% 66.1% 67.9% 63.9% 66.2%
Gross Margin 33.1% 33.9% 32.1% 36.1% 33.8%
SG&A 19.8% 20.7% 20.4% 22.9% 20.9%
R&D 3.0% 3.0% 3.1% 3.8% 3.2%
Operating
Margin 10.2% 10.2% 8.6% 9.4% 9.6%
Interest
Inc/Exp, net -0.8% -0.7% -0.7% -0.4% -0.6%
Pre Tax Income 8.8% 9.4% 7.7% 8.9% 8.7%
Tax Rate 37.2% 37.1% 34.8% 33.7% 35.8%
Net Income 5.5% 5.9% 5.0% 5.8% 5.6%
Yr to Yr %
Change
Sales 61.5% 46.4% 11.7% -4.1% 24.6%
Gross Profit 33.6% 31.2% 7.2% 1.4% 17.1%
Operating
Profit 55.7% 49.6% 1.8% -10.1% 20.4%
Pre Tax Income 81.0% 71.2% 8.9% 7.5% 37.0%
Net Income 82.3% 64.7% 11.7% 11.7% 37.8%
Earnings per
Share 58.8% 48.2% 3.8% 4.7% 25.5%
Qtr to Qtr %
Change
Sales 5.7% -2.3% -10.1% 3.2%
Gross Profit 2.5% 0.2% -15.0% 16.2%
Operating
Profit 8.4% -2.9% -24.4% 13.0%
Pre Tax Income 17.4% 3.4% -25.9% 19.5%
Net Income 15.3% 3.7% -23.3% 21.6%
Earnings per
Share 11.4% 1.9% -23.5% 20.7%
Revenue By Market
Domestic 54% 46% 47% 52% 50%
International 46% 54% 53% 48% 50%
AAVID THERMAL TECHNOLOGIES, INC.
COMPARATIVE FINANCIAL DATA (a)
(in millions, except EPS)
1999
Unaudited
Q1 Q2 Q3
MARGIN ANALYSIS
Cost of Sales 62.9% 61.0% 63.6%
Gross Margin 37.1% 39.0% 36.4%
SG&A 22.8% 24.5% 23.0%
R&D 3.5% 3.6% 3.5%
Operating
Margin 10.8% 10.9% 9.8%
Interest
Inc/Exp, net -0.2% -0.1% -0.1%
Pre Tax Income 10.1% 10.2% 10.1%
Tax Rate 37.0% 35.7% 34.0%
Net Income 6.4% 6.6% 6.7%
Yr to Yr %
Change
Sales -10.3% -12.0% -2.5%
Gross Profit 0.5% 1.2% 10.8%
Operating
Profit -5.4% -6.0% 12.2%
Pre Tax Income 2.4% -4.0% 28.3%
Net Income 2.9% -1.9% 30.0%
Earnings per
Share -0.2% -4.6% 24.4%
Qtr to Qtr %
Change
Sales -1.1% -4.1% -0.4%
Gross Profit 1.6% 0.9% -6.9%
Operating
Profit 14.1% -3.6% -9.7%
Pre Tax Income 11.8% -3.0% -1.0%
Net Income 6.2% -1.1% 1.7%
Earnings per
Share 6.1% -2.7% -0.3%
Revenue By Market
Domestic 58% 65% 63%
International 42% 35% 37%
Notes: (a) The above analysis does not include certain one-time charges. Q1 1998 excludes $1.858 million relating to Buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. of Compensation Arrangements. Q3 1998 excludes $3.882 million relating to costs associated with the closing of a plant. |
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