Angelica Reports Improved Third Quarter and Three Quarters Results of Continuing Operations Before Extraordinary Item.Business Editors NOTE TO MEDIA: Multimedia assets available A spreadsheet spreadsheet Computer software that allows the user to enter columns and rows of numbers in a ledgerlike format. Any cell of the ledger may contain either data or a formula that describes the value that should be inserted therein based on the values in other cells. is 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.111402/bb10.xls ST. LOUIS--(BUSINESS WIRE)--Nov. 14, 2002 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 third quarter and three quarters 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 an earlier 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. . Per share earnings for continuing operations were $.41 ($.40 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. ) in the third quarter ended October October: see month. 26, 2002 compared with $.26 last year, an increase of 57.7 percent. Per share earnings for the first three quarters of the year for continuing operations before extraordinary item (which occurred in the second quarter) were $1.05 ($1.04 fully diluted) compared with $.50 last year, an increase of 110.0 percent. For the third quarter in a row, 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 last 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 Retail Stores. Combined sales and revenues of continuing operations were $92,633,000 in the third quarter compared with $89,025,000 in the same quarter last year, an increase of 4.1 percent. Third quarter income from continuing operations was $3,555,000 versus $2,242,000 in the same period last year. For the first three quarters of the year, combined sales and revenues increased 4.1 percent to $274,416,000 compared with $263,571,000 last year. Income for the first three quarters from continuing operations before the second quarter extraordinary item more than doubled to $9,116,000 from $4,328,000 in the same period last year. As previously reported, the extraordinary item reflected 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 a part of the complete refinancing of the Company's debt following the sale of the Manufacturing and Marketing segment. Including the extraordinary item, amounting to a loss of $.51 per share ($.50 fully diluted), results of continuing operations for the first three quarters of this year were earnings of $.54 per share versus $.50 per share last year. Third 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 $894,000 after tax or $.10 per share. In last year's third quarter, discontinued operations had a net loss of $437,000 before application of any portion of the Company's interest expense. Combining continuing and discontinued operations, the Company in total had net income of $.31 per share ($.30 fully diluted) in the third quarter this year compared with net income of $.21 per share in the same quarter last year. In the first three quarters and including the second quarter extraordinary item, the Company had a net loss of $.18 per share compared with net income of $.48 per share in the same period last year. For the Textile Services segment, revenues in the third quarter increased 4.6 percent to $68,108,000 compared with $65,095,000 in the same quarter last year. Revenues continue to benefit from increases in net new business (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. revenues from new business installed less lost business) occurring last year and continuing this year. For the first three quarters of this year, net new business was nearly $12,000,000. Operating earnings increased 20.6 percent in the third quarter to $5,770,000 compared with $4,785,000 in the same period last year. The better earnings reflect the higher revenues and continued improvements in 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, increases in plant productivity and lower production costs, offset to some extent by 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 due in part to increased healthcare costs generally. During the third quarter, Textile Services announced the acquisition of a hospital-owned laundry Laundry can be:
Before industrialization in Macon Macon (mā`kən, mā`kŏn), city (1990 pop. 106,612), seat of Bibb co., central Ga., at the head of navigation on the Ocmulgee River; inc. 1823. , Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , and the textile linen management services have been successfully transferred to the Rockmart, Georgia Geography Rockmart is located at (34.003952, -85.049202)GR1. According to the United States Census Bureau, the city has a total area of 11.3 km² (4.4 mi²). 11.2 km² (4.3 mi²) of it is land and 0. plant of Textile Services. Negotiations continue on other acquisition opportunities, and construction work on a new state-of-the-art 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. also continues. For Life Retail Stores, the third quarter marked a continuation continuation - continuation passing style of significantly improved results compared with last year. Sales for the quarter increased 2.5 percent to $24,525,000 compared with $23,930,000 in last year's third quarter, with a 5.2 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 and a 50.5 percent increase in catalogue/e-commerce sales being offset in part by fewer stores in operation. Operating earnings for the quarter were $1,256,000 versus $812,000 last year, an increase of 54.7 percent, reflecting better gross margins and the higher sales levels. 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 very pleased to report a third straight quarter of improved results at both of our continuing business segments." He went on to say, "Notwithstanding some challenges that I see ahead in terms of the strength of the economic recovery, I am comfortable increasing our forecast for the full year to $1.20 to $1.25 per share for continuing operations before the extraordinary item." 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 laundry services to healthcare institutions, and operates a national chain of retail 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.
Unaudited results for third quarter and three quarters ended
October 26, 2002 compared with same periods ended October 27, 2001
(dollars in thousands except per share amounts):
Third Quarter Percent
--------------------------
Fiscal 2003 Fiscal 2002 Inc (Dec)
----------- ----------- ---------
Continuing Operations:
----------------------
Combined sales and revenues:
Textile Services $68,108 $65,095 4.6
Life Retail 24,525 23,930 2.5
-------- --------
Total $92,633 $89,025 4.1
Segment operating earnings:
Textile Services $5,770 $4,785 20.6
Life Retail 1,256 812 54.7
-------- --------
Total $7,026 $5,597 25.5
Interest expense $253 $1,792 (85.9)
Corporate expense and other, net $1,694 $1,341 26.3
Pretax income $5,079 $2,464 106.1
Income before extraordinary loss $3,555 $2,242 58.6
Extraordinary
loss, net of tax(a) -- --
Income after
extraordinary loss $3,555 $2,242 58.6
Earnings per share before extra-
ordinary loss:
- Basic $.41 $.26 57.7
- Diluted $.40 $.26 53.8
Earnings per share after
extraordinary loss:
- Basic $.41 $.26 57.7
- Diluted $.40 $.26 53.8
Discontinued Operations:
------------------------
Loss from operations, net of tax -- $(437)
Loss on disposal in excess of
original estimate, net of tax $(894) --
-------- -------- --------
Loss from
discontinued operations,
net of tax $(894) $(437)
Combined Continuing and
-----------------------
Discontinued Operations (after
------------------------------
extraordinary loss):
--------------------
Net income (loss) $2,661 $1,805 47.4
Earnings (loss)
per share:
- Basic $.31 $.21 47.6
- Diluted $.30 $.21 42.9
Three Quarters Percent
--------------------------
Fiscal 2003 Fiscal 2002 Inc (Dec)
----------- ----------- ---------
Continuing Operations:
----------------------
Combined sales and revenues:
Textile Services $203,284 $194,965 4.3
Life Retail 71,132 68,606 3.7
--------- ---------
Total $274,416 $263,571 4.1
Segment operating earnings:
Textile Services $18,132 $14,356 26.3
Life Retail 2,108 39 5,305.1
--------- ---------
Total $20,240 $14,395 40.6
Interest expense $2,403 $5,839 (58.8)
Corporate expense and other, net $4,562 $3,800 20.1
Pretax income $13,275 $4,756 179.1
Income before extraordinary loss $9,116 $4,328 110.6
Extraordinary
loss, net of tax(a) $(4,409) --
Income after
extraordinary loss $4,707 $4,328 8.8
Earnings per share before extra-
ordinary loss:
- Basic $1.05 $.50 110.0
- Diluted $1.04 $.50 108.0
Earnings per share after
extraordinary loss:
- Basic $.54 $.50 8.0
- Diluted $.54 $.50 8.0
Discontinued Operations:
------------------------
Loss from operations, net of tax -- $(179)
Loss on disposal in excess of
original estimate, net of tax $(6,302) --
--------- ---------
Loss from
discontinued
operations,
net of tax $(6,302) $(179)
Combined Continuing and
-----------------------
Discontinued Operations (after
------------------------------
extraordinary loss):
--------------------
Net income (loss) $(1,595) $4,149 n/m
Earnings (loss)
per share:
- Basic $(.18) $.48 n/m
- Diluted $(.18) $.48 n/m
(a) During the second quarter of this fiscal year, 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 has been treated as an
extraordinary item. Under recently issued FASB Statement No. 145,
effective next fiscal year, the prepayment penalty will not be
treated as an extraordinary item, and accordingly, the results
will be restated at that time to reflect this change in accounting
treatment.
Unaudited condensed balance sheets as of October 26, 2002 and
January 26, 2002
(dollars in thousands):
October 26, January 26,
2002 2002
----------- -----------
Current assets:
Cash and investments $7,855 $18,742
Receivables, net 34,653 33,536
Inventories 13,501 14,435
Linens in service 33,518 32,196
Other 16,174 19,446
Net current assets of discontinued segment 12,942 61,774
--------- ---------
Total current assets 118,643 180,129
Property and equipment, net 76,888 76,685
Other long-term assets 33,579 32,215
Long-term assets of discontinued segment 815 1,836
--------- ---------
Total assets $229,925 $290,865
========= =========
Current liabilities:
Current maturities of long-term debt(b) $227 $71,602
Accounts payable 23,407 20,958
Other 32,017 40,609
--------- ---------
Total current liabilities 55,651 133,169
Long-term debt(b) 20,644 812
Other long-term liabilities 14,918 15,380
Shareholders' equity 138,712 141,504
--------- ---------
Total liabilities and shareholders' equity $229,925 $290,865
========= =========
(b) 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, consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the sale and discontinuation of the Manufacturing and Marketing segment as presently contemplated, 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: A spreadsheet is available at URL: http://www.businesswire.com/photowire/pw.111402/bb10.xls |
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