Aldila Reports 2002 Fourth Quarter and Fiscal Year Results.Business/Sports 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)--Feb. 12, 2003 Aldila Inc. (Nasdaq: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 ) reported slightly higher 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 $9,087,000 for the fourth quarter ended December December: see month. 31, 2002, compared to $8,322,000 in the same quarter of 2001, and a net loss of $1,777,000 ($0.36 per share). Included in the fourth quarter 2002 results was a charge of $300,000 (pre tax) for combining the corporate staff within the golf 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. and prepreg facility in Poway. Also included in the 2002 fourth quarter results was a valuation allowance of $1,911,000 related to the company's deferred tax assets and an adjustment of $677,000 to previously accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. tax reserves. Excluding these items, Aldila's 2002 fourth quarter net loss was $875,000 ($0.18 per share). In the fourth quarter of 2001, the net loss was $51,428,000 ($10.15 per share), of which $49,400,000 (net of taxes) related to impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of goodwill and other intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. . Excluding the charge, Aldila's 2001 fourth quarter net loss was $2,075,000 ($0.41 per share). For the year ended December 31, 2002, net sales were $37,462,000, compared to net sales of $39,561,000 in 2001. The company reported a net loss of $2,844,000 ($0.57 per share) in 2002. Excluding the consolidation charge and the adjustments related to taxes that affected the fourth quarter and fiscal year results, the company's net loss in 2002 was $1,610,000 ($0.33 per share). In 2001, the company had a net loss of $51,419,000 ($10.10 per share), including impairment charges of $49,400,000 and plant consolidation charges of $356,000 (net of taxes). Excluding impairment and plant consolidation charges, the company's net loss in 2001 was $1,710,000 ($0.34 per share). Aldila's cash and short term investment position remains strong at $3,286,000 as of December 31, 2002, versus $266,000 at December 31, 2001, with no outstanding borrowings. All financial results are reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of a one-for-three reverse stock split effective at the close of business June June: see month. 3, 2002. "Golf shaft units shipped were up 9% in the fourth quarter versus the same quarter a year ago and the average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. declined 3%," 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 of the Board and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "For the year, units shipped increased 11%, with a 15% decline in average selling price. "We are continuing to invest in our brand, led by our innovative Aldila ONE wood shaft and Tour Gold line of woods and irons," continued Mathewson. "Nick Price and Rich Beem Richard Michael Beem (born August 24, 1970) is an American golfer who plays on the PGA Tour. Beem was born in Phoenix, Arizona, grew up in El Paso, Texas, and played golf at New Mexico State University in Las Cruces, New Mexico. He turned professional in 1994. will continue to be incorporated into our advertising campaign including commercials on the Golf Channel. Our tour presence will continue in 2003 with closer ties to major OEMs tour programs. "Our work with Mission Hockey Mission is a company that makes hockey equipment for both ice hockey and roller hockey. The company is known most for the roller hockey skates that they produce. Though initially only an inline company, due to their popularity in the inline world, Mission made its foray into the continues to expand and is now focused on the development of an industry leading hockey  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. blade to go
along with what we believe is the best composite composite, alternate common name for Asteraceae or Compositae, the aster family. composite - aggregate hockey shaft in the sport. "Based on a slow incoming Incoming is a 3-D shooter developed by Rage Software and published by Interplay. The PC version was released in late 1998, and the Dreamcast version, a launch title for the console, was released in 1998 in Japan and in 1999 in the rest of the world. order rate in the fourth quarter of 2002 and the absence of any projections for economic recovery in early 2003, no improvement is seen in the future performance of the golf equipment market in the near term," Mathewson continued. "We are closely managing our costs in this extremely difficult market," said Mathewson. "The consolidation of the corporate staff into the Poway manufacturing facility will be completed early in the second quarter, and cost reduction benefits will start to be realized." Aldila's fourth quarter and fiscal year results will be reviewed in a conference call at 8:00 a.m., PST PST Paroxysmal supraventricular tachycardia, see there , on Thursday Thursday: see week. , February February: see month. 13, 2003, with Peter Mathewson, Chairman and CEO; Bob Cierzan, Vice President, Finance; and Mike Rossi Rossi is an Italian surname, in fact the most frequent in Italy. Due to Italian immigration to many other countries, is also very common in the United States, Brazil, Argentina, Uruguay and Chile. Rossi is the plural of Rosso, meaning the color red in Italian language. , Vice President, Sales and Marketing. A live audiocast See streaming audio. of the call can be accessed at http/www.aldila.com up to 15 minutes before the call. For telephone access to the conference call, dial 800/915-4836 for domestic calls and 973/317-5319 for international calls. Call moderator moderator - A person, or small group of people, who manages a moderated mailing list or Usenet newsgroup. Moderators are responsible for determining which email submissions are passed on to the list or newsgroup. is Peter Mathewson. The call will be rebroadcast at 800/428-6051 for domestic calls and 973/709-2089 for international calls, Passcode #271921, from 10:00 a.m. (PST), Thursday, February 13, 2003, until 11:59 p.m. (PST), Monday Monday: see week. , February 17, 2003. Aldila manufactures high performance 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 also manufactures hockey sticks and most recently hockey blades, in addition to composite prepreg material for its golf shaft business and external sales. Externally, Aldila also manufactures carbon fiber for internal use through an ownership interest in Carbon Fiber Technology LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . 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 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 31, 2001, under "Business Risks" in Part I, Item 1, and "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 Operations" in Part I, Item 7 of the Form 10-K, and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 2 of our Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the Quarter ended September September: see month. 30, 2002. The forward-looking statements in this press release are particularly subject to the risks that -- we will not maintain or increase our market share at our principal customers; -- demand for clubs manufactured by our principal customers will decline, thereby affecting their demand for our shafts; -- the market for graphite shafts will continue to be extremely competitive, affecting selling prices and profitability; -- our principal customers will be unwilling to satisfy a greater portion of their demand with shafts manufactured in China in place of either the United States or Mexico; -- new product offerings, including those outside the golf industry, will not achieve success with consumers or OEM customers; -- we will not achieve success marketing shafts to club assemblers based in China; -- our international operations will be adversely affected by political instability, currency fluctuations, export/import regulations and other risks typical of multi-national operations, particularly those in less developed countries; -- Carbon Fiber Technology LLC will be unsuccessful as a result, for example, of internal operational problems, raw material supply problems, changes in demand for carbon fiber based products, or difficulties in operating a joint venture; -- attractive strategic alternatives will not be available to us on desirable terms, and -- a general decrease in stock market prices would affect the price of our stock. For additional information about Aldila Inc., please go to www.aldila.com.
ALDILA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three months ended Twelve months ended
December 31, December 31,
----------------------- ---------------------
2002 2001 2002 2001
----------- ----------- ----------- ---------
(Unaudited) (Unaudited) (Unaudited)
NET SALES $9,087 $8,322 $37,462 $39,561
COST OF SALES 8,234 9,300 32,828 33,304
----------- ----------- ----------- ---------
Gross profit (loss) 853 (978) 4,634 6,257
----------- ----------- ----------- ---------
SELLING, GENERAL AND
ADMINISTRATIVE 1,684 1,500 7,334 6,851
IMPAIRMENT OF GOODWILL - 41,932 - 41,932
IMPAIRMENT OF
TRADEMARKS & PATENTS - 12,963 - 12,963
AMORTIZATION OF
GOODWILL - 349 - 1,410
PLANT CONSOLIDATION 300 24 300 593
----------- ----------- ----------- ---------
Operating loss (1,131) (57,746) (3,000) (57,492)
----------- ----------- ----------- ---------
OTHER EXPENSE
(INCOME):
Interest expense 9 33 94 375
Other, net 17 34 62 65
Equity in earnings of
joint venture (77) (71) (269) (231)
----------- ----------- ----------- ---------
LOSS BEFORE INCOME
TAXES (1,080) (57,742) (2,887) (57,701)
PROVISION (BENEFIT) FOR
INCOME TAXES 697 (6,314) (43) (6,282)
----------- ----------- ----------- ---------
NET LOSS $(1,777) $(51,428) $(2,844) $(51,419)
=========== =========== =========== =========
NET LOSS PER COMMON
SHARE $(0.36) $(10.15) $(0.57) $(10.10)
=========== =========== =========== =========
NET LOSS PER COMMON
SHARE, ASSUMING
DILUTION $(0.36) $(10.15) $(0.57) $(10.10)
=========== =========== =========== =========
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING 4,948 5,066 4,948 5,090
=========== =========== =========== =========
WEIGHTED AVERAGE NUMBER
OF COMMON AND COMMON
EQUIVALENT SHARES 4,948 5,066 4,948 5,090
=========== =========== =========== =========
ALDILA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
December 31, December 31,
2002 2001
--------------------------
ASSETS (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $3,286 $266
Accounts receivable 4,393 3,977
Income taxes receivable 1,185 723
Inventories 8,538 11,472
Deferred tax assets - 2,366
Prepaid expenses and other current assets 497 595
--------------------------
Total current assets 17,899 19,399
PROPERTY, PLANT AND EQUIPMENT 6,167 7,634
INVESTMENT IN JOINT VENTURE 6,825 7,466
OTHER ASSETS 268 387
--------------------------
TOTAL ASSETS $31,159 $34,886
==========================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $2,912 $2,921
Accrued expenses 1,825 2,627
--------------------------
Total current liabilities 4,737 5,548
LONG-TERM LIABILITIES:
Deferred rent 69 74
Deferred tax liabilities - 67
--------------------------
Total liabilities 4,806 5,689
--------------------------
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
4,947,648 shares 49 49
Additional paid-in capital 41,983 41,983
Accumulated deficit (15,679) (12,835)
--------------------------
Total stockholders' equity 26,353 29,197
--------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $31,159 $34,886
==========================
ALDILA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Twelve months ended
December 31,
-----------------------
2002 2001
----------- -----------
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(2,844) $(51,419)
Depreciation and amortization 1,921 3,840
(Gain) Loss on disposal of fixed assets (11) 363
Impairment of goodwill - 41,932
Impairment of trademarks & patents - 12,963
Undistributed income of joint venture, net (249) (192)
Changes in working capital items, net 3,656 (6,799)
----------- -----------
Net cash provided by operating activities 2,473 688
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment (362) (835)
Proceeds from sales of property, plant and
equipment 19 266
Proceeds from sales of marketable securities - 3,104
Distributions from joint venture 890 190
----------- -----------
Net cash provided by investing activities 547 2,725
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under line of credit 887 750
Payments under line of credit (887) (750)
Principal payments on long-term debt - (8,000)
Repurchases of common stock - (750)
----------- -----------
Net cash used for financing activities - (8,750)
----------- -----------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 3,020 (5,337)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 266 5,603
----------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $3,286 $266
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