Acorn Products Reports 73% Increase in Third Quarter Net Income.COLUMBUS Columbus. 1 City (1990 pop. 178,681), seat of Muscogee co., W Ga., at the head of navigation on the Chattahoochee River; settled and inc. 1828 on the site of a Creek village. , Ohio--(BUSINESS WIRE)--June 1, 1999-- Acorn Products, Inc. (Nasdaq:ACRN ACRN America's Career Resource Network ACRN Accounting Classification Reference Number ACRN Asthma Clinical Research Network (National Heart, Lung and Blood Institute) ACRN AIDS Certified Registered Nurse ) today reported that its net income increased 73% to $2.3 million in the third quarter of fiscal 1999 compared to $1.3 million in the comparable period of fiscal 1998. 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 increased 7% to $40.4 million in the third quarter of fiscal 1999 compared to $37.9 million in the third quarter of fiscal 1998. The increase in net sales reflected strong spring sales, partially offset by a decline in net sales by the Company's injection molding injection molding n. A manufacturing process for forming objects, as of plastic or metal, by heating the molding material to a fluid state and injecting it into a mold. division and reported wheelbarrow sales. Although the Company's overall wheelbarrow sales grew by over 90% during the period, most of those sales were attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the Company's wheelbarrow joint venture, only the applicable profit or loss of which is included in the Company's financial statements. Gross profit increased 23.6% to $10.5 million in the third quarter of fiscal 1999 compared to $8.5 million in the third quarter of fiscal 1998. Gross margin increased to 25.9% in the third quarter of fiscal 1999 compared to 22.3% in the comparable period of fiscal 1998. The increase in gross margin primarily was due to the realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. of benefits from the Company's cost reduction program, as well as greater overhead absorption rates. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. (gross profit less selling, general and administrative expenses) increased 53% to $4.5 million in the third quarter of fiscal 1999 compared to $2.9 million in the third quarter of fiscal 1998. The increase in operating profit primarily was due to the factors affecting gross profit described above. Selling, general and administrative expenses were flat as a percentage of net sales. Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the before special charges and income taxes increased to $3.2 million in the third quarter of fiscal 1999 from $1.9 million in the comparable period of fiscal 1998. In the third quarter, the Company incurred plant consolidation charges of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $284,000 in connection with the previously announced consolidation of its Columbus, Ohio Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. , manufacturing facility into its primary manufacturing facility located in Frankfort Frankfort, city (1990 pop. 25,968), state capital and seat of Franklin co., N central Ky., on both sides of the Kentucky River, in the heart of the bluegrass country; inc. 1796. , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , bringing income from continuing operations before income taxes to $2.9 million. Net income increased to $2.3 million for the third quarter of fiscal 1999 from $1.3 million in the third quarter of fiscal 1998. Net income per share (basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) increased to $0.37 in the third quarter of fiscal 1999 compared to $0.21 in the third quarter of fiscal 1998. Gabe Mihaly, Acorn's President and Chief Executive Officer, stated, "We are pleased with our results for the third quarter. Strong spring sales combined with the impact of our cost reduction program resulted in substantial increases in profitability this quarter compared to the prior year." The Company also reported that it has acquired an aggregate of 442,400 shares of its Common Stock at an average purchase price of $5.62 per share pursuant to its previously announced $2.5 million stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program. The number of shares of Common Stock currently outstanding is 6,021,705. The Company has concluded the program, having reached the limitations imposed on stock repurchase transactions under its current bank credit facility. Acorn Products, Inc., through its operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. UnionTools, Inc., is a leading manufacturer and marketer of non-powered lawn and garden tools in the U.S. The Company's principal products include long handle tools (such as forks Forks may refer to:
post-hole digger shovel - a hand tool for lifting loose material; consists of a curved container or scoop and a handle , wheelbarrows, striking tools, cutting tools and watering products. The Company sells its products under a variety of well-known well-known adj. 1. Widely known; familiar or famous: a well-known performer. 2. Fully known: well-known facts. brand names, including Razor-Back(R), Union(R), Yard 'n Garden(R), Perfect Cut(R) and, pursuant to a license agreement, Scotts(R). In addition, the Company manufactures private label products for a variety of retailers. The Company's customers include mass merchants, home centers, buying groups and farm and industrial suppliers. Razor-Back(R), Union(R), Yard 'n Garden(R) and Perfect Cut(R) are registered trademarks of the Company. Scotts(R) is a registered trademark of The Scotts Company. The statements contained herein that are not purely historical are forward looking statements within the meaning of the Securities Exchange Act of 1934, including statements regarding the Company's expectations, beliefs, hopes, intentions or strategies regarding the future. All forward looking statements contained herein are based upon information available to the Company as of 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" , and the Company assumes no obligation to update any such forward looking statements. Actual results could differ materially from the Company's current expectations. Factors that could cause or contribute to such differences include, but are not limited to, the factors and risks discussed in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended July July: see month. 31, 1998, the Company's Current Report on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. dated Sept. 18, 1997, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. on Oct. 29, 1998, and as may be amended from time to time, and the other reports filed from time to time by the Company with the Securities and Exchange Commission. -0-
Acorn Products, Inc.
Selected Consolidated Financial Data
For the Quarter Ended For the Nine Months Ended
May 1, April 30, May 1, April 30,
1998 1999 1998 1999
--------------------- -------------------------
(In thousands, except share and per share data)
Statement of Operations:
Net sales $ 37,911 $ 40,434 $ 79,470 $ 85,055
Cost of goods sold 29,440 29,964 61,057 63,743
--------------------- -------------------------
Gross profit 8,471 10,470 18,413 21,312
Selling, general and
administrative
expenses 5,526 5,962 14,756 15,753
--------------------- -------------------------
Operating profit 2,945 4,508 3,657 5,559
Interest expense 720 947 1,761 2,420
Amortization of
intangibles 231 263 668 786
Other expenses, net 102 109 181 313
--------------------- -------------------------
Income (loss) from
continuing
operations before
special charges and
income taxes 1,892 3,189 1,047 2,040
Special charges:
Strategic
transactions -- -- -- 994
Watering products
consolidation -- -- -- 355
Plant consolidation -- 284 -- 284
--------------------- -------------------------
Income (loss) from
continuing
operations before
income taxes 1,892 2,905 1,047 407
Income taxes 549 581 303 81
--------------------- -------------------------
Income from
continuing
operations 1,343 2,324 744 326
Loss from
discontinued
operations(1) -- -- -- (166)
--------------------- -------------------------
Net income $1,343 $2,324 $744 $160
===================== =========================
Per Share Data (Basic):
Income from
continuing
operations before
special charges and
income taxes $0.29 $0.51 $0.16 $0.32
Income from
continuing
operations before
income taxes $0.29 $0.46 $0.16 $0.06
Income from
continuing
operations $0.21 $0.37 $0.12 $0.05
Loss from
discontinued
operations(1) -- -- -- ($0.03)
Net income $0.21 $0.37 $0.12 $0.02
Weighted average
number of shares
outstanding 6,464,105 6,307,400 6,464,105 6,411,870
Per share Data (Diluted):
Income (loss) from
continuing
operations before
special charges
and income taxes $0.29 $0.51 $0.16 $0.32
Income (loss) from
continuing
operations before
income taxes $0.29 $0.46 $0.16 $0.06
Income (loss) from
continuing
operations $0.21 $0.37 $0.11 $0.05
Income (loss) from
discontinued
operations(1) -- -- -- $(0.03)
Net income (loss) $0.21 $0.37 $0.11 $0.02
Weighted average
number of shares
outstanding 6,510,758 6,363,514 6,510,758 6,467,984
Other Data:
Gross margin 22.3% 25.9% 23.2% 25.1%
EBITDA (2) $3,649 $4,933 $5,694 $5,956
EBIT (3) $2,612 $3,852 $2,808 $2,827
Balance Sheet Data:
Working capital
from continuing
operations $27,768 $27,583
Total assets $121,244 $133,132
Total debt $35,522 $50,431
Stockholders'
equity $63,968 $62,185
(1) Reflects additional state taxes and interest related to the sale
in August 1997 of substantially all of the assets of the
Company's McGuire-Nicholas Company, Inc. subsidiary.
(2) EBITDA represents earnings from continuing operations before
interest, income taxes, depreciation and amortization. Excluding
special charges, EBDITDA was $5,217 for the quarter ended May 2,
1999 and $7,589 for the nine months ended May 2, 1999.
(3) EBIT represents earnings from continuing operations before
interest and income taxes. Excluding special charges, EBIT was
$4,136 for the quarter ended May 2, 1999 and $4,460 for the nine
months ended May 2, 1999.
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