Angelica Reports Improved Fourth Quarter and Fiscal Year 2003 Results.Photo Editors/Business Editors NOTE TO MEDIA: Multimedia assets available Financial statements are available at URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : http://www.businesswire.com/photowire/pw.031303/bb14.xls ST. LOUIS--(BUSINESS WIRE)--March 13, 2003 Angelica angelica (ănjĕl`ĭkə), any species of the genus Angelica, plants of the family Umbelliferae (parsley family), native to the Northern Hemisphere and New Zealand, valued for their potency as a medicament and protection against Corporation (NYSE NYSE See: New York Stock Exchange :AGL (programming) AGL - (Atelier de Genie Logiciel) French for IPSE. ) announced today improved results for the fourth quarter and fiscal year ended January January: see month. 25, 2003. Full year results of continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the before an extraordinary item related to a second quarter debt refinancing Refinancing An extension and/or increase in amount of existing debt. , and excluding results of discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , reflected per share earnings of $1.27 ($1.25 fully 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. ) compared with $.19 last year (which included restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and other charges). In fiscal 2003, sales and revenues as well as operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before improved over the prior year in both of the continuing business segments, Textile textile Any filament, fibre, or yarn that can be made into fabric or cloth, and the resulting material itself. The word originally referred only to woven fabrics but now includes knitted, bonded, felted, and tufted fabrics as well. Services and Life Uniform. Combined sales and revenues of continuing operations in fiscal 2003 were $363,419,000 compared with $350,063,000 in the prior year, an increase of 3.8 percent. Fiscal 2003 income from continuing operations before the extraordinary item rose to $11,006,000 versus $1,629,000 in the prior year. As previously reported, the extraordinary item consisted of a prepayment penalty Prepayment penalty A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. , paid as part of the complete refinancing of the Company's debt following the sale of the Manufacturing and Marketing segment. Including the extraordinary item, which amounted to an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. loss of $.51 per share ($.50 fully diluted), results of continuing operations for fiscal 2003 were earnings of $.76 per share ($.75 fully diluted) compared with $.19 per share in the prior fiscal year (including restructuring and other charges), an increase of 300.0 percent. In the fourth quarter of fiscal 2003, combined sales and revenues of continuing operations were $89,003,000 compared with $86,492,000 in the same quarter last year, an increase of 2.9 percent. Fourth quarter income from continuing operations was $1,890,000 versus a net loss of $2,699,000 last year, which included the restructuring and other charges of $4,180,000 pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern taken in that prior period. Fourth quarter results of discontinued operations, which reflect differences between current and prior estimates of the loss on sale and discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of the Manufacturing and Marketing segment, were a loss of $360,000 after tax. For all of fiscal 2003, discontinued operations had a loss after tax of $6,662,000 or $.77 per share ($.76 fully diluted). Combining continuing and discontinued operations, the Company in total had a net loss of $.01 per share in fiscal 2003 compared with a net loss of $2.64 per share ($2.62 fully diluted) in the prior fiscal year. Revenues of the Textile Services segment in fiscal 2003 increased 4.7 percent from $259,078,000 to $271,250,000, as another strong year of gains from net new business (new business installed less lost business) was offset to some extent by the sale of its Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. plant during the year. Operating earnings for the year increased 16.9 percent to $21,904,000 compared with $18,741,000 in the prior year. The better earnings are the result of higher revenues, excellent control of linen linen, fabric or yarn made from the fiber of flax, probably the first vegetable fiber known to people. Linens more than 3,500 years old have been recovered from Egyptian tombs. Phoenician traders marketed linen in Mediterranean ports. expense, improvements in plant productivity and production costs, offset by sharply higher workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. costs, especially in the segment's California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). operations. A fourth-quarter increase in workers' compensation costs for Textile Services in the amount of $1,650,000 caused the segment's fourth quarter operating earnings of $3,772,000 to be 14.0 percent lower than the $4,385,000 earned in the fourth quarter last year. Fourth quarter revenues of $67,966,000 were 6.0 percent above revenues of $64,113,000 in the prior year quarter. Recently, Textile Services completed an exchange of its operations in Philadelphia Philadelphia, ancient cities Philadelphia, name of several ancient cities. One was in Lydia, W Asia Minor (now W Turkey). At the foot of Mt. Tmolus and near the location of modern Alaşehir, it was founded in the 2d cent. B.C. , Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York for the plant and operations of a competitor in Vallejo, California Vallejo (pronounced IPA: /vəˈleɪoʊ/ in English; [baˈjeho] in the original Spanish) is a city in Solano County, California, United States. . This exchange provides an opportunity for the segment to better utilize resources and to add increased economic value. Construction work on the new plant in Phoenix, Arizona Phoenix /ˈfiːˌnɪks/ (English: Phoenix, Navajo: Hoozdo, lit. "the place is hot", Western Apache: Fiinigis) is the capital and the most populous city of the U.S. continues on schedule for a mid-year opening of the state-of-the-art facility. Textile Services also plans to open a new plant in the Carolinas Car·o·li·nas The colonies (after 1729) or present-day states of North Carolina and South Carolina. Noun 1. Carolinas - the area of the states of North Carolina and South Carolina Carolina before this year end. At Life Uniform, sales of $92,169,000 in fiscal 2003 were 1.3 percent higher than sales of $90,985,000 in the prior year. Despite a generally weaker retail market in the fourth quarter and only a 1.9 percent same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. gain in that quarter, Life achieved a 3.8 percent same-store gain for the whole of fiscal 2003. Catalogue/e-commerce sales increased 62.9 percent in the year to $5,239,000. Offsetting these sales gains were fewer stores in operation, as Life ended the year with 249 stores compared with 287 at the end of the prior year. Operating results of this segment in fiscal 2003 were earnings of $2,948,000 compared with a loss of $4,951,000 in the prior year including restructuring and other charges taken last year. Operating earnings benefited from better gross margins, closing unprofitable stores, improving profitability in the catalogue/e-commerce business as well as the higher sales levels. As a result of the refinancing of the Company's debt following sale of the Manufacturing and Marketing segment, both the amount of debt outstanding and the interest rates were substantially reduced. Interest expense of $2,563,000 in fiscal 2003 compares with $7,390,000 in the prior year, a reduction of 65.3 percent. Cash flow for fiscal 2003 also was very strong, with cash from operating activities of $23,887,000 in fiscal 2003 versus $13,798,000 in the prior year. Don W. Hubble Hub·ble , Edwin Powell 1889-1953. American astronomer who discovered (1929) that the velocities of nebulae increase with distance. Noun 1. , Chairman, President and Chief Executive Officer of Angelica said, "We are pleased that both continuing business segments had nice improvements to operating results in fiscal 2003 despite a number of challenges. Increased workers' compensation costs were a disappointment, but they have our attention. We know this challenge is not unique to Angelica, but we believe we can reduce these costs through better management, and we have implemented comprehensive programs to do so." He went on to say, "We continue to see the current economic recovery as challenging, even though healthcare seems to be less affected than other areas of the economy. In addition, future energy and fuel costs are highly uncertain. However, although quarterly comparisons in fiscal 2004 will be adversely affected by higher workers' compensation costs, at this time we believe we can achieve a per share earnings increase for the whole year in the low double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. range." Angelica Corporation, traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol AGL, provides textile rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. and linen management services to healthcare institutions, and operates a national chain of retail healthcare uniform and shoe stores with a fully-integrated catalogue and e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. operation.
Results for fourth quarter and fiscal year ended January 25, 2003
compared with same periods ended January 26, 2002 (dollars in
thousands, except per share amounts):
Fourth Quarter
----------------------- Percent
Fiscal 2003 Fiscal 2002 Inc (Dec)
----------- ----------- ---------
Continuing Operations:
-------------------------------------
Combined sales and revenues:
Textile Services $67,966 $64,113 6.0
Life Uniform 21,037 22,379 (6.0)
----------- -----------
Total $89,003 $86,492 2.9
Segment operating earnings:
Textile Services $3,772 $4,385 (14.0)
Life Uniform (a) 840 (4,990) n/m
----------- -----------
Total $4,612 ($605) n/m
Interest expense $160 $1,551 (89.7)
Corporate expense and other, net $2,441 $810 201.4
Pretax income $2,011 ($2,966) n/m
Income before extraordinary loss $1,890 ($2,699) n/m
Extraordinary loss, net of tax (b) -- --
Income after extraordinary loss $1,890 ($2,699) n/m
Earnings per share before extra-
ordinary loss:
- Basic $.22 $(.31) n/m
- Diluted $.21 $(.31) n/m
Earnings per share after
extraordinary loss:
- Basic $.22 $(.31) n/m
- Diluted $.21 $(.31) n/m
Discontinued Operations:
-------------------------------------
Loss from operations, net of tax -- $(161)
Estimated loss on disposal, net of
tax -- $(23,998)
Loss on disposal in excess of
original estimate, net of tax $(360) --
----------- -----------
Loss from discontinued
operations, net of tax $(360) $(24,159)
Combined Continuing and
-------------------------------------
Discontinued Operations (after
-------------------------------------
extraordinary loss):
-------------------------------------
Net income (loss) $1,530 ($26,858) n/m
Earnings (loss) per share:
- Basic $.18 ($3.12) n/m
- Diluted $.17 ($3.10) n/m
Percent
Fiscal 2003 Fiscal 2002 Inc (Dec)
----------- ----------- ---------
Continuing Operations:
-------------------------------------
Combined sales and revenues:
Textile Services $271,250 $259,078 4.7
Life Uniform 92,169 90,985 1.3
----------- -----------
Total $363,419 $350,063 3.8
Segment operating earnings:
Textile Services $21,904 $18,741 16.9
Life Uniform (a) 2,948 (4,951) n/m
----------- -----------
Total $24,852 $13,790 80.2
Interest expense $2,563 $7,390 (65.3)
Corporate expense and other, net $7,003 $4,610 51.9
Pretax income $15,286 $1,790 754.0
Income before extraordinary loss $11,006 $1,629 575.6
Extraordinary loss, net of tax (b) $(4,409) --
Income after extraordinary loss $6,597 $1,629 305.0
Earnings per share before extra-
ordinary loss:
- Basic $1.27 $.19 568.4
- Diluted $1.25 $.19 557.9
Earnings per share after
extraordinary loss:
- Basic $.76 $.19 300.0
- Diluted $.75 $.19 294.7
Discontinued Operations:
-------------------------------------
Loss from operations, net of tax -- $(340)
Estimated loss on disposal, net of
tax -- $(23,998)
Loss on disposal in excess of
original estimate, net of tax $(6,662) --
----------- -----------
Loss from discontinued
operations, net of tax $(6,662) $(24,338)
Combined Continuing and
-------------------------------------
Discontinued Operations (after
-------------------------------------
extraordinary loss):
-------------------------------------
Net income (loss) ($65) ($22,709) n/m
Earnings (loss) per share:
- Basic ($.01) $(2.64) n/m
- Diluted ($.01) $(2.62) n/m
(a) Reflects restructuring and other charges of $4,180 pretax
taken in the fourth quarter of fiscal 2002.
(b) During the second quarter of fiscal 2003, a prepayment penalty
was paid to lenders in connection with the complete
refinancing of the Company's debt following the sale of the
Manufacturing and Marketing segment. In accordance with FASB
Statement No. 4, that prepayment penalty was treated as an
extraordinary item. Under FASB Statement No. 145, adopted by
the Company effective at the beginning of fiscal 2004, the
prepayment penalty will not be treated as an extraordinary
item, and accordingly, these results will be restated in
future presentations to reflect this change in accounting
treatment.
Condensed balance sheets as of January 25, 2003 and January 26, 2002
(dollars in thousands):
January 25, January 26,
2003 2002
------------- -----------
Current assets:
Cash and investments $18,166 $18,742
Receivables, net 35,316 33,536
Inventories 13,395 14,435
Linens in service 32,520 32,196
Other 11,333 19,446
Net current assets of discontinued segment 2,162 61,774
------------- -----------
Total current assets 112,892 180,129
Property and equipment, net 78,553 76,685
Other long-term assets 36,839 32,215
Long-term assets of discontinued segment -- 1,836
------------- -----------
Total assets $228,284 $290,865
============= ===========
Current liabilities:
Current maturities of long-term debt (a) 237 $71,602
Accounts payable 21,740 19,208
Other 29,618 40,609
------------- -----------
Total current liabilities 51,595 131,419
Long-term debt (a) 20,574 812
Other long-term liabilities 16,455 17,130
Shareholders' equity 139,660 141,504
------------- -----------
Total liabilities and shareholders' equity $228,284 $290,865
============= ===========
(a) On May 30, 2002, the Company refinanced its existing debt with
proceeds from the sale of the Manufacturing and Marketing
segment and from a new three-year $70,000,000 unsecured credit
facility arranged by LaSalle Bank N.A.
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. : Any forward-looking statements made in this document reflect the Company's current views with respect to future events and financial performance and are made pursuant to 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. Such statements are subject to certain risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These potential risks and uncertainties include, but are not limited to, competitive and general economic conditions, the ability to retain current customers and to add new customers in competitive market environments, competitive pricing in the marketplace, delays in the shipment of orders, availability of labor at appropriate rates, availability and cost of energy and water supplies, the cost of workers' compensation and healthcare benefits, the ability to attract and retain key personnel, actual charges to the restructuring reserve and related asset valuation allowances significantly different from the estimated charges, unusual or unexpected cash needs for operations or capital transactions, the ability to obtain financing in required amounts and at appropriate rates, and other factors which may be identified in the Company's filings with the Securities and Exchange Commission. Note: Financial statements are available at URL: http://www.businesswire.com/photowire/pw.031303/bb14.xls |
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