American Safety Razor Company Announces 1998 Financial Results.VERONA Verona, city, Italy Verona (vərô`nä), city (1991 pop. 255,824), capital of Verona prov., Venetia, NE Italy, on the Adige River. , Va.--(BUSINESS WIRE)--Feb. 18, 1999--American Safety Razor Company (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :RAZR) today announced financial results for the fourth quarter and year ended December 31, 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 for the fourth quarter were $77.1 million, a decrease of 2.2% from $78.8 million for the 1997 fourth quarter. Net income for the 1998 fourth quarter was $3.5 million, or $0.29 per 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. share, as compared to 1997's fourth-quarter net income of $4.7 million, or $0.38 per diluted share. Earnings during the 1998 fourth quarter, excluding special charges and the results of a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. tax settlement, were $3.2 million, or $0.26 per diluted share, compared with 1997's fourth-quarter earnings of $4.7 million, or $0.38 per diluted share. Fourth quarter special charges include a $2.0 million provision ($1.2 million after tax or $0.10 per diluted share), relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the termination of a license agreement and certain personnel changes. Additionally, fourth-quarter 1998 results include a $1.5 million tax benefit related to the Company's settlement of its outstanding tax issues with the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. . Fourth-quarter EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become was $11.4 million (excluding the special charges and the tax benefit) versus $13.4 million for the fourth quarter of 1997. Sales of shaving products were essentially flat during the fourth quarter compared with the year ago quarter with gains in international sales offsetting declines in the Company's domestic shaving business. The international shaving sales improvement was achieved despite an approximate $0.2 million negative exchange rate effect on fourth-quarter sales. The Company's industrial products business continued to experience sales growth. The Company's custom bar soap business continued to experience lower sales due primarily to weakness in certain of the Company's customers' Asian markets, the redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re of products by customers, and customer inventory adjustments. Sales of the Company's cotton products were down slightly from year-ago levels. Issues related to the start-up Start-up The earliest stage of a new business venture. of two new manufacturing facilities have led to delays in shipping products to customers. In 1998 net sales rose to $297.5 million from $296.6 million for 1997. In 1998 net income was $10.1 million, or $0.83 per diluted share, as compared to 1997's net income of $15.1 million, or $1.23 per diluted share. Excluding special charges and the favorable tax benefit discussed above, earnings for 1998 fell to $10.4 million, or $0.85 per diluted share, from 1997's earnings of $15.1 million, or $1.23 per diluted share. Special charges for 1998 included $3.0 million in provisions ($1.8 million after tax or $0.15 per diluted share) associated with closing facilities, terminating a license agreement, and personnel changes. EBITDA (excluding special charges and the tax benefit) for 1998 was $41.6 million, down from $48.0 million for the same period last year. For 1998, sales of industrial, medical and cotton products were up while sales of shaving products and soap products were off from year-ago levels. 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. relating to future results of the Company. Such forward-looking statements are identified by use of forward-looking words such as "anticipates," "believes," "plans," "estimates," "expects," and "intends" or words or phrases of similar expression. These forward-looking statements are subject to various assumptions, risks and uncertainties, including but not limited to, changes in political and economic conditions, demand for the Company's products, acceptance of new products, technology developments affecting the Company's products and to those discussed in the Company's filings with the Securities and Exchange Commission. Accordingly, actual results could differ materially from those contemplated by the forward-looking statements. American Safety Razor Company is the leading manufacturer of private-brand and value-priced shaving blades and razors 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. . The Company's shaving blade and razor products are sold under retailers' private-brand names as well as American Safety Razor's own brands: Personna(R), Gem(R), Flicker flicker: see woodpecker. flicker Any of six species of New World woodpeckers (genus Colaptes) noted for spending much time on the ground eating ants. (R), LegMate(R), Bump Fighter(R), Treet(R), GEM Blue Star(R), Pal(R), MBC (Multimedia Benchmark Committee) A graphics benchmark that provides MPEG-2 and other tests. See GPC. (tm) and Burma Shave(tm). The Company also manufactures cotton swabs "Q-Tip" redirects here. For the rapper, see Q-Tip (rapper). For the band, see Q-Tips (band). Cotton swabs (British English: cotton buds) are used in first aid, cosmetics application, and a variety of other uses. , cotton balls and puffs, and foot care items which are sold under retailers' private-brand names as well as its own value-priced brands, Megas(R), ACCO ACCO American College of Chiropractic Orthopedists ACCO Association of County Commissioners of Oklahoma ACCo American Cyanamid Company ACCO Adenoid Cystic Carcinoma Organization ACCO American Clip Company ACCO Assistant Central Control Officer (R), and Crystal(R). The Company is also a leading manufacturer of premium and value-priced blades and bladed hand tools, sold primarily under the Personna(R), American Line The American Line was a shipping company based in Philadelphia that existed from 1871 to 1902. In its original guise it was a part of the Pennsylvania Railroad, although the railroad got out of the shipping business soon after founding the company. (tm), and Ardell(tm) brand names, as well as bar soaps for the cosmetic/skin care, pharmaceutical, and department store markets. In addition to its consumer products, American Safety Razor manufactures and markets industrial and specialty and medical blades. -0-
AMERICAN SAFETY RAZOR COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share data)
Three Months Twelve Months
Ended Ended
December 31, December 31,
------------------ -------------------
1998 1997 1998 1997
-------- -------- --------- --------
Net Sales $77,055 $78,760 $297,488 $296,607
Cost of sales 51,755 51,682 201,978 196,991
-------- -------- --------- --------
Gross profit 25,300 27,078 95,510 99,616
Selling, general and
administrative expenses 16,399 15,933 63,516 60,206
Amortization of intangibles 647 646 2,543 2,501
Special charges 2,000 - 3,003 -
-------- -------- --------- --------
Operating income 6,254 10,499 26,448 36,909
Interest expense 2,997 3,079 12,270 12,270
-------- -------- --------- --------
Income before income taxes 3,257 7,420 14,178 24,639
Income taxes (260) 2,728 4,076 9,570
-------- -------- --------- --------
Net income $3,517 $4,692 $10,102 $15,069
====== ====== ======= =======
Basic earnings per share:
Net income $0.29 $0.39 $0.83 $1.25
===== ===== ===== =====
Weighted average shares
outstanding 12,110 12,098 12,107 12,094
====== ====== ====== ======
Diluted earnings per share:
Net income $0.29 $0.38 $0.83 $1.23
===== ===== ===== =====
Weighted average shares
outstanding 12,152 12,293 12,223 12,255
====== ====== ====== ======
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion