Aldila Reports 2000 First Quarter Results; 58% Sales Increase.Business Editors POWAY Pow·ay A community of southern California north of San Diego. It is near a large naval air base. Population: 49,100. , Calif.--(BUSINESS WIRE)--April 19, 2000 Aldila, Inc. (NASDAQ/NMS: ALDA ALDA Association of Late-Deafened Adults ALDA Australian Learning Disability Association ALDA Adult Learning Development Association ALDA Asociación Larense de Astronomía (Barquisimeto, Venezuela) ALDA Alabama Dietetic Association ) today reported 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 of $16.7 million for the first quarter ended March 31, 2000, a 58% increase over net sales of $10.6 million reported for the first quarter of 1999. Net income for the first quarter of 2000 was $580,000 after recovery of $340,000 after tax of previously recorded plant consolidation charges, versus a net loss of $307,000 in the 1999 first quarter. Earnings per share for the first quarter of 2000 were $0.04, versus a net loss of $0.02 per share in 1999. "We are pleased with our revenue increase which came from both the Premium and Value market segments," said Peter R. Mathewson Math·ew·son , Christopher Known as "Christy." 1880-1925. American baseball player who won 373 games as a right-handed pitcher for the New York Giants (1900-1916). , Chairman and Chief Executive Officer, Aldila, Inc. "The total shaft shaft (shaft) a long slender part, such as the diaphysis of a long bone. shaft n. 1. An elongated rodlike structure, such as the midsection of a long bone. 2. units shipped in the quarter increased 110% over the comparable quarter of 1999, which produced a quarterly record for units shipped. The record level of unit shipments aided in moving out higher cost inventories carried over from 1999 and reduced inventories in total at faster rates than anticipated. The effect of the higher cost 1999 inventories, combined with a small decrease in inventory reserves, impacted the quarter negatively and resulted in a 28% reduction in gross profit reported." "Our major customers continue to express enthusiasm for market acceptance of their wood and iron offerings, which appear to be among the best available in terms of performance and consumer value. Therefore, we believe it is reasonable to assume a strong sell-through sell-through Adjective of the sale of prerecorded video cassettes, without their first being for hire only is taking place, which our orders on hand at the end of the quarter seem to indicate is underway," Mr. Mathewson continued. "Our China operation performed particularly well during the quarter, especially in in its ability to quickly ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale production. The close proximity PROXIMITY. Kindred between two persons. Dig. 38, 16, 8. of the company-provided employee housing to the manufacturing plant offers us a great deal of flexibility in utilizing our experienced workforce to meet the demands of the seasonal golf industry," said Mr. Mathewson. "Our Carbon Fiber Technology joint venture in Evanston, Wyoming Evanston is a city in Uinta County, Wyoming, United States. The population was 11,507 at the 2000 census. It is the county seat of Uinta CountyGR6. Geography Evanston is located at (41.263302, -110. , set a new quarterly record for pounds of carbon fiber produced at the facility, which was 26% higher than any previous quarter since production began in 1998. Our prepreg operation in Poway, CA, also set a new high in the number of pounds of prepreg material produced, compared to any previous quarter in its five years of operation," Mr. Mathewson said. Cash of $0.7 million generated from operating activities in the quarter, combined with $3.3 million of cash available was used by the company to make the scheduled principal payment of $4.0 million on its outstanding debt at the end of the first quarter, which reduced total debt outstanding to $12.0 million and resulted in a quarter end cash balance of $5.1 million. Aldila, Inc. is the golf industry's leading manufacturer of graphite graphite (grăf`īt), an allotropic form of carbon, known also as plumbago and black lead. It is dark gray or black, crystalline (often in the form of slippery scales), greasy, and soft, with a metallic luster. golf shafts The shaft of a golf club is the long, cylindrical piece - generally made of steel or graphite - which connects the golfer’s hands to the club head. While hundreds of different designs exist, the primary purpose of the golf shaft remains the same - to provide the player with a used in clubs assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. and marketed throughout the world by major golf club companies, component distributors and custom clubmakers. Aldila internally manufactures composite composite, alternate common name for Asteraceae or Compositae, the aster family. composite - aggregate prepreg for its golf shaft business and external sales, and through its ownership interest in Carbon Fiber Technology LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , externally manufactures carbon fiber for internal use. This press release contains 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. based on our expectations as of the date of this press release. These statements necessarily reflect assumptions that we make in evaluating our expectations as to the future. They are also necessarily subject to risks and uncertainties. Our actual future performance and results could differ from that contained in or suggested by these forward-looking statements as a result of a variety of factors. Our filings with the Securities and Exchange Commission present a detailed discussion of the principal risks and uncertainties related to our future operations, in particular under "Business Risks" in Part I, Item 1 of our 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 year ended December December: see month. 31, 1999, "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operation" in Part I, Item 7 of the Form 10-K, and "Management's Discussion and Analysis of Financial Condition and Results of Operation" in Item 2 of our Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2000. The forward-looking statements in this press release are particularly subject to the risks that - our principal customers will not continue to increase their orders over last year; - our principal customers will be unwilling to satisfy a significant portion of their demand with shafts manufactured 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. or China instead of with shafts manufactured in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ; - we will not achieve success marketing shafts to club assemblers This is a list of assemblers. Hundreds of assemblers have been written; some notable examples are:
- our international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. will be adversely affected by political instability instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor instability , currency fluctuation Fluctuation A price or interest rate change. , export/import regulation and other risks typical of multi-national operations, particularly those operating in less developed countries; and - our joint venture with SGL Carbon SGL Carbon (FWB: SGCG) is one of the world's leading manufacturers of products from carbon. The company portfolio ranges from carbon and graphite materials to carbon fibers and composites. Fibers and Composites, Inc. will be unsuccessful.
ALDILA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
March 31, Dec. 31,
2000 1999
-------- --------
ASSETS (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $5,068 $4,077
Marketable securities - 4,513
Accounts receivable 7,654 4,807
Inventories 9,336 12,326
Deferred tax assets 4,010 4,010
Prepaid expenses and
other current assets 695 741
-------- --------
Total current assets 26,763 30,474
PROPERTY, PLANT AND EQUIPMENT 10,327 11,298
INVESTMENT IN JOINT VENTURE 7,248 7,181
TRADEMARKS AND PATENTS 13,724 13,833
GOODWILL 44,413 44,770
DEFERRED FINANCING FEES 223 256
OTHER ASSETS 203 191
-------- --------
TOTAL ASSETS 102,901 108,003
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $3,061 $3,258
Accrued expenses 1,983 3,693
Income taxes payable 805 167
Long-term debt, current portion 8,000 8,000
-------- --------
Total current liabilities 13,849 15,118
LONG-TERM LIABILITIES:
Long-term debt 4,000 8,000
Deferred tax liabilities 6,286 6,338
Deferred rent liabilities 37 398
-------- --------
Total liabilities 24,172 29,854
-------- --------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value;
authorized 5,000,000 shares; no
shares issued
Common stock, $.01 par value;
authorized 30,000,000 shares;
issued and outstanding 15,462,204
shares 155 155
Additional paid-in capital 42,627 42,627
Retained earnings 35,947 35,367
-------- --------
Total stockholders'
equity 78,729 78,149
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $102,901 $108,003
======== ========
-0-
ALDILA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three months ended
March 31,
------------------------
2000 1999
---------- ----------
(Unaudited)
NET SALES $16,713 $10,563
COST OF SALES 13,727 8,274
------- --------
Gross profit 2,986 2,289
------- --------
SELLING, GENERAL AND ADMINISTRATIVE 1,878 1,865
AMORTIZATION OF GOODWILL 357 357
PLANT CONSOLIDATION (566) -
------- --------
Operating income 1,317 67
------- --------
OTHER EXPENSE (INCOME):
Interest expense 288 334
Other, net (137) 7
Equity in earnings of joint venture (38) -
------- --------
INCOME (LOSS ) BEFORE INCOME TAXES 1,204 (274)
PROVISION FOR INCOME TAXES 624 33
------- --------
NET INCOME (LOSS) $580 ($307)
======= ========
NET INCOME (LOSS) PER COMMON SHARE $0.04 ($0.02)
======= ========
NET INCOME (LOSS) PER COMMON SHARE,
ASSUMING DILUTION $0.04 ($0.02)
======= ========
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 15,462 15,462
======= ========
WEIGHTED AVERAGE NUMBER OF COMMON
AND COMMON EQUIVALENT SHARES 15,576 15,462
======= ========
-0-
ALDILA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three months ended
March 31,
-------------------------
2000 1999
---------- ----------
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $580 ($307)
Depreciation and amortization 1,073 1,585
Loss on disposal of fixed assets - 9
Changes in working capital items, net (982) (3,918)
-------- --------
Net cash provided by (used for)
operating activities 671 (2,631)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net (126) (644)
Investment in marketable securities 4,513 -
Investment in joint venture (67) -
-------- --------
Net cash provided by (used for)
investing activities 4,320 (644)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under line of credit - 1,700
Principal payments on long-term debt (4,000) -
-------- --------
Net cash provided by (used for)
financing activities (4,000) 1,700
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 991 (1,575)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 4,077 1,972
-------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD $5,068 $397
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