American Building Control Announces Sales and Margin Improvements in the First Quarter of 2003.Business Editors LEWISVILLE Lew·is·ville A city of northeast Texas, an industrial and residential suburb in the Dallas-Fort Worth metropolitan area. Population: 83,900. , Texas--(BUSINESS WIRE)--May 13, 2003 American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Building Control, Inc. (Nasdaq:ABCX) announces its results for the first quarter of 2003. Current Financial Results Sales at $11.4 million increased $1.7 million or 17%, compared to the first quarter of 2002. This increase reflected an overall increase in world-wide access control business and a clearer identity for the Company's brands, after the Honeywell In 1927, the Minneapolis Honeywell Regulator Company was formed as a merger of Alfred Butz' temperature control company (1885) and Mark Honeywell's water heater company (1906). In 1957, Honeywell, along with Ratheon, introduced one of the first computers in the U.S., the Datamatic 1000. Asset Sale. An increase was also reported in the consumer/do-it-yourself business. The gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. at 31.8% in the first three months of 2003 increased by 2.1% points over the same period in 2002. This increase was due to a greater volume in the higher-margin access control business. Selling, general and administrative expenses at $5.0 million were $0.6 million higher compared to the first quarter of 2002. The increase was mainly due to additional professional fees. Other expenses at $0.2 million were $0.6 million less in the first three months of 2003. This decrease related to interest expenses in 2002, with respect to the Company's former revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility, which was paid off last December December: see month. . At the end of the first quarter, the Company had $12.4 million of cash and no bank debt. Future Cost Savings On April 30, 2003, the Company announced the termination of several positions at its Corporate Headquarters. These terminations are part of the on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" initiative to streamline streamline, path of a fluid flowing steadily and without appreciable turbulence. A body is said to be streamlined if its shape offers the least possible resistance to a current of air, water, or other fluid. general and administrative expenses. The Company will recognize $0.3 million in expenses during the second quarter of 2003 for the severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when obligations. The staff reductions are expected to yield a $0.6 million savings on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. The Company is currently evaluating less expensive enterprise planning software to replace its SAP sap, fluid in plants consisting of water and dissolved substances. Cell sap refers to this fluid present in the large vacuole, or cell cavity, that occupies most of the central portion of mature plant cells. system and is attempting to lower its real estate cost for the Headquarters building in Lewisville, Texas Lewisville is a city in Denton County and Dallas County, Texas (USA). As of the 2000 census the city had a total population of 77,737. With strong population growth continuing into the new millennium, the U.S. Census Bureau gives a 2006 population estimate of 94,589. due to excessive space and rent charges that exceed prevailing rates. "The significant sales increase in the first quarter gave us a good start for the newly-named company of American Building Control," said Mr. Bryan Bryan, city (1990 pop. 55,002), seat of Brazos co., E central Tex.; inc. 1872. Settled in the early 19th cent. in an area of large plantations, Bryan was long a cotton center. C.W. Tate, the Chief Executive Officer and the Chairman of the Board. "We are still expending a great deal of time and expenses to resolve issues from the past. But increasingly we are able to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the tremendous opportunities available in the market place today. We have re-focused the Company around our core strengths. We are well positioned to benefit from the additional funding of Homeland Security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States and increased public awareness of security." About American Building Control, Inc. With headquarters located in the Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. suburb suburb, a community in an outlying section of a city or, more commonly, a nearby, politically separate municipality with social and economic ties to the central city. In the 20th cent. of Lewisville, Texas, American Building Control, Inc., formerly Ultrak, Inc., (Nasdaq:ULTK) is focused on designing, marketing, selling and servicing niche niche: see ecology. niche Smallest unit of a habitat that is occupied by an organism. A habitat niche is the physical space occupied by the organism; an ecological niche is the role the organism plays in the community of organisms found in the security products for use in industrial, governmental and consumer surveillance markets worldwide. For more information on American Building Control, Inc., please call 800/221-7225. Forward-Looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and Cautionary Statements Except for the historical information and discussions contained herein, certain statements included in this press release may constitute "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. " within the meaning of 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. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in the company's filings with the Securities and Exchange Commission.
AMERICAN BUILDING CONTROL, INC. and SUBSIDIARIES
CONDENSED COMPARATIVE STATEMENTS OF OPERATION
(in millions, except share data)
March 31, March 31,
2003 2002
----------- -----------
Sales $11.4 $9.8
Gross Profit 3.6 2.9
Margin 31.8% 29.7%
Operating Expenses 4.9 4.3
Depreciation & Amortization 0.5 0.6
----------- -----------
Operating Loss (1.8) (2.0)
Interest Expense 0.3 0.8
Other Expense (Income) (0.1) 0.1
----------- -----------
Loss Before Discontinued Operations and
Cumulative
Effect of Accounting Change (2.0) (2.9)
Income (Loss) from Discontinued Operations (0.7) 1.6
----------- -----------
Loss Before Cumulative Effect of Accounting
Change (2.7) (1.3)
Cumulative Effect of Accounting Change -
Continuing Operations -- (14.8)
Cumulative Effect of Accounting Change -
Discontinued Operations -- (11.3)
----------- -----------
Net Loss Allocable to Common Stockholders $(2.7) $(27.4)
=========== ===========
Basic and Diluted Earnings (Loss) Per Share:
Continuing operations $(0.14) $(0.20)
Discontinued operations (0.05) 0.12
Cumulative Effect of Accounting Change -
Continuing operations -- (1.05)
Cumulative Effect of Accounting Change -
Discontinued operations -- (0.81)
----------- -----------
Basic and Diluted Earnings (Loss) Per Share $(0.19) $(1.95)
=========== ===========
Basic and Diluted Common Shares Used in
Computations 14,040,488 14,046,588
AMERICAN BUILDING CONTROL, INC. and SUBSIDIARIES
CONDENSED COMPARATIVE BALANCE SHEETS
(in millions)
March 31, December 31,
2003 2002
----------- ------------
Cash $12.4 $16.4
Trade Receivables 5.5 5.0
Inventories 5.4 4.4
Receivable from Honeywell Int'l, Inc. -
current portion 3.6 3.6
Other Assets 1.0 1.1
Net Current Assets of Discontinued Operations 1.8 1.8
----------- ------------
Current Assets 29.7 32.3
Land & Building 7.9 8.0
Property, Plant & Equipment 2.1 2.5
Intangibles 5.5 5.7
Receivable from Honeywell Int'l, Inc. - less
current portion 1.8 1.8
Other 0.2 0.3
----------- ------------
Total Assets $47.2 $50.6
=========== ============
Trade Payables $4.5 $3.2
Accrued Expenses 2.9 4.8
Accrued Compensation 1.9 1.6
Accrued Severance - current portion 0.5 0.8
Deferred Income - current portion 1.0 1.0
Other Liabilities 1.2 1.1
Net Current Liabilities of Disconitnued
Operations 1.9 2.1
----------- ------------
Current Liabilities 13.9 14.6
Financing Obligation 6.6 6.6
Deferred Income - less current portion 1.1 1.1
Accrued Severance - less current portion 0.9 0.9
----------- ------------
Long-Term Liabilities 8.6 8.6
Equity 24.7 27.4
----------- ------------
Total Liabilities and Equity $47.2 $50.6
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