Ameron Reports Improved First-Quarter Results.PASADENA, Calif.--(BUSINESS WIRE)--March 24, 1999--Ameron International Corporation ("Ameron" or "Company") (NYSE NYSE See: New York Stock Exchange :AMN Amn abbr. airman ) today reported results for its first fiscal quarter ended February February: see month. 28, 1999. 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. earnings were $.25 per share on sales of $122.9 million, compared to a loss of $.23 per share on sales of $102.5 million in the first quarter of 1998. Commenting on the Company's first-quarter results, James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. S. Marlen, Ameron's Chairman, President and Chief Executive Officer, stated, "We are pleased to report that Ameron is off to a robust start in 1999, especially given the current business climate. Aside from our Concrete and Steel Pipe business, each of Ameron's businesses continues to operate in markets adversely impacted by current economic conditions. However, each of our businesses generated improved profitability compared to the same period in 1998. We are benefiting from profit enhancement programs implemented in 1998." Sales of concrete and steel pipe significantly increased because of the healthy backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of business and the relatively mild weather during the first quarter of 1999. Ameron's first quarter of 1998 was adversely impacted by unusually wet weather and a strike at a major steel pipe facility. 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. in 1999 increased proportionally pro·por·tion·al adj. 1. Forming a relationship with other parts or quantities; being in proportion. 2. Properly related in size, degree, or other measurable characteristics; corresponding: to the sales increase. The near-term near-term adj. Of, for, or involving a short period of time in the near future. outlook for Concrete and Steel Pipe remains strong. Ameron's worldwide Fiberglass-Composite Pipe business had slightly lower sales than in the same quarter of 1998, as the business continued to suffer from depressed oil prices. Pipe sales to the U.S. fuel-handling market were stronger than expected. Additionally, sales from Ameron's Asian operations continued to strengthen. Profits from sales of fiberglass-composite pipe improved in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the sales decline because of the steps taken in 1998 and improved productivity worldwide. Ameron's worldwide Coatings businesses had higher sales and profitability than in the first quarter of 1998. The sale increase came from the former Croda Coatings businesses in England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. , Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. , which were acquired in April 1998. The worldwide market for Ameron's coatings remains soft because of depressed commodity and oil prices. Again, profits improved because of the cost reduction steps taken in 1998. As expected, Ameron's Hawaiian operations declined in the first quarter because of the continued impact of the Asian economic situation on the Hawaiian economy. The decline in Hawaii was offset by an improvement in Ameron's pole business, which benefited from the mild weather in the western U.S. James Marlen stated, "On balance, we are quite pleased with the strong performance of the first quarter. We are mindful mind·ful adj. Attentive; heedful: always mindful of family responsibilities. See Synonyms at careful. mind of external conditions, but we believe that the Company is in a position to maintain improved profitability throughout 1999." Ameron is a leading producer of high-performance coatings and finishes, fiberglass fiberglass, thread made from glass. It is made by forcing molten glass through a kind of sieve, thereby spinning it into threads. Fiberglass is strong, durable, and impervious to many caustics and to extreme temperatures. and composite pipe, concrete and steel pipe systems and other specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. construction products. The Company operates businesses in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , Europe, Asia and Australasia. Cautionary statement for purposes of the "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions 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: Any statements in this report that refer to Ameron's estimated or anticipated future results are forward-looking and reflect the Company's current analysis of existing trends and information. Actual results may differ from current expectations based on a number of factors affecting Ameron's businesses, including competitive conditions and changing market situations. Matters affecting the economy generally, including the state of economics worldwide, can affect Ameron's results. 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. represent the Company's judgment only as of the date of this report. Since actual results could differ materially, the reader is cautioned not to rely on these forward-looking statements. Moreover, Ameron disclaims any intent or obligation to update these forward-looking statements. -0-
Ameron International Corporation
Consolidated Statements of Income
First Quarter Ended February 28,
(In thousands except share and per share data)
1999 1998
Sales $ 122,899 $ 102,526
Cost of Sale (92,018) (78,324)
Gross Profit 30,881 24,202
Selling, General and
Administrative Expense (29,760) (25,046)
Royalty, Equity and Other Income 3,824 1,771
Income before Interest and Taxes 4,945 927
Interest, Net (3,469) (2,493)
Income before Income Taxes 1,476 (1,566)
Income Taxes (472) 626
Net Income $ 1,004 $ (940)
Basic Net Income Per Share
(Based on Weighted Average
Shares Outstanding of
4,016,712 Shares in 1999 and
4,005,956 Shares in 1998) $ .25 $ (.23)
Diluted Net Income Per Share
(Based on Diluted Common
Shares Outstanding of
4,026,602 Shares in 1999 and
4,005,956 Shares in 1998) $ .25 $ (.23)
Cash Dividends Paid $ .32 $ .32
Ameron International Corporation
Consolidated Statements of Cashflow
Three Months Ended February 28,
(In thousands)
1999 1998
Operating Activities
Net Income/(Loss) $ 1,004 $ (940)
Adjustments to Reconcile
Net Income to Net Cash 7,184 4,740
Changes in Operating Assets
and Liabilities (11,059) (267)
Cash Provided (Used) by Operations (2,871) 3,533
Investing Activities
Proceeds from Sale of Assets 1,069 58
Additions to Property, Plant
and Equipment (3,787) (6,832)
Other, Net (3,748) (333)
Cash Used by Investing Activities (6,466) (7,107)
Financing Activities
Short and Long-Term
Borrowings, Net 7,282 2,022
Dividends on Common Stock (1,279) (1,282)
Other, Net -- 31
Cash Provided by
Financing Activities 6,003 771
Effect of Exchange Rate
Changes on Cash (193) (72)
Net Change in Cash $ (3,527) $ (2,875)
Ameron International Corporation
Consolidated Balance Sheets
(In thousands)
February 28, November 30,
1999 1998
ASSETS
Current Assets
Cash and Equivalents $ 12,849 $ 16,376
Receivables, Net 128,378 136,380
Inventories 110,685 106,654
Other 15,865 14,280
Total Current Assets 267,777 273,690
Investments and Advances -
Affiliated Companies 22,186 22,182
Property, Plant and Equipment, Net 153,165 157,918
Other Assets 46,334 46,429
Total Assets $ 489,462 $ 500,219
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short-Term Borrowings $ 2,656 $ 3,024
Current Portion of Long-Term Debt 12,650 12,681
Trade Payables 33,754 37,273
Accrued Liabilities and Other 57,485 50,353
Federal and Other Income Taxes 15,782 23,499
Total Current Liabilities 122,327 126,830
Long-Term Debt, Less Current Portion 172,358 165,308
Other Liabilities 31,848 40,913
Total Liabilities 326,533 333,051
Stockholders' Equity
Common Stock 13,007 13,007
Additional Paid-In Capital 17,828 17,828
Retained Earnings 186,899 187,174
Accumulated Comprehensive Income (10,791) (8,062)
Treasury Stock (44,014) (42,779)
Total Stockholders' Equity 162,929 167,168
Total Liabilities and
Stockholders' Equity $ 489,462 $ 500,219
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