Angelica Reports Third Quarter Fiscal 2004 Results.To download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. high-resolution high-res·o·lu·tion adj. 1. Relating to an image that has fine detail. 2. a. Of or relating to an output device that produces images that contain a large number of dots per unit of area and are therefore sharp and , print-ready JPEG JPEG in full Joint Photographic Experts Group Standard computer file format for storing graphic images in a compressed form for general use. JPEG images are compressed using a mathematical algorithm. images, click on the thumbnail A miniature representation of a page or image that is used to identify a file by its contents. Clicking the thumbnail opens the file. 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LOUIS--(BUSINESS WIRE)--Nov. 18, 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. ) today reported results for the third quarter and nine months ended October October: see month. 25, 2003. Net income for the third quarter of fiscal 2004 was $2.2 million, or $.24 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 $2.7 million, or $.30 per diluted share, including a discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. charge of $894,000, in the same period last year. Excluding the charge from discontinued operations, third quarter fiscal 2003 net income was $3.6 million, or $.40 per diluted share. For the nine-month period ended October 25, 2003, net income was $7.5 million, or $.84 per diluted share, as compared to a loss of $1.6 million, or $.18 per diluted share, including debt retirement and discontinued operations charges, in the prior-year period. The first nine months of fiscal 2004 included a non-operating gain of $1.8 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern , or $.15 after tax per diluted share, related to life insurance policies owned by the Company. The first nine months of fiscal 2003 included a charge of $6.8 million pretax, or $.50 per diluted share, for the early retirement of debt following the sale of the Company's manufacturing segment and a charge of $6.3 million, or $.72 per diluted share, from a loss on discontinued operations of the manufacturing segment. Revenue for the third quarter of fiscal 2004 was $92.0 million, a 0.7 percent decrease from $92.6 million in the prior-year quarter as revenue gains at Textile Services failed to offset sales declines at Life Uniform, where 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. declined 7.7 percent in the quarter. For the first nine months of fiscal 2004, revenue was essentially flat at $274.8 million, as compared to $274.4 million in the same period last year. In the Textile Services segment, third quarter revenues increased 3.6 percent to $70.6 million compared with $68.1 million in the same period last year. 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 in the third quarter were $4.7 million compared with $5.8 million in the prior year, a decline of 18.0 percent. Textile Services' earnings were negatively affected by higher energy and fuel costs as well as softer pricing in certain areas, all of which resulted in some margin erosion. Following the end of the third quarter, Textile Services announced the acquisition of a laundry Laundry can be:
Before industrialization business located in Batavia, NY, and service to the acquired customers has been transferred to Textile Services' plant in Batavia. Other acquisition opportunities continue to be evaluated. The third quarter marked the successful start-up Start-up The earliest stage of a new business venture. of a state-of-the-art plant in Phoenix, AZ, and work continues on another new plant in Columbia, SC. Along with revenue growth, these additions are expected to provide operating efficiencies in production and distribution. In the third quarter, Life Uniform continued to experience lower sales than the prior year, with third quarter fiscal 2004 sales of $21.4 million being 12.7 percent lower than $24.5 million recorded in the third quarter of fiscal 2003. For the quarter, Life had an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $6,000 versus earnings of $1.7 million in the same period last year. As indicated in Angelica's October 29, 2003 press release, an investment banking firm has been hired to review strategic alternatives for the under-performing Life Uniform segment. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses continues to be strong. At the end of the third quarter, total debt net of cash was only $757,000 even though capital expenditures for the first three quarters were $18.3 million compared with $10.2 million in the prior year period. Capital expenditures this fiscal year included $8.8 million for the new Textile Services plants in Phoenix, AZ and Columbia, SC. Commenting on third quarter results, Steve O'Hara, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Angelica, said, "As indicated in our press release late last month, earnings for this fiscal year are expected to be between $1.00 and $1.10 per share including $.15 per share of non-operating income recorded in the second quarter, and between $.85 and $.95 per share without this non-recurring item and excluding any potential writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. of Life assets as a result of the strategic review process." He went on to say, "Despite the current cost pressures at Textile Services, we continue to be excited by the revenue and earnings growth opportunities presented by this segment. We expect to share more of our vision for Textile Services at our December 4, 2003 analyst meetings, and copies of our presentation will be filed with the SEC at that time. Meanwhile, the strategic review process for Life Uniform with Morgan Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. Joseph & Co. has begun." Angelica Corporation will hold a conference call to discuss the third quarter results tomorrow, November 19 at 11:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy (8:00 a.m. PST PST Paroxysmal supraventricular tachycardia, see there ). The conference call will be webcast live and available in a listen-only mode to individual investors and to the public through CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network Company Boardroom, which may be accessed at www.companyboardroom.com, or through Angelica's website at www.angelica.com. For those unable to participate during the live broadcast, a replay will be available shortly after the call on the CCBN site for two weeks. 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 and 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. 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.
Unaudited results for third quarter and nine months ended
October 25, 2003 compared with same periods ended October 26, 2002
(dollars in thousands, except per share amounts):
Third Quarter
-----------------
Fiscal Fiscal Percent
2004 2003 Inc (Dec)
-------- -------- ---------
Continuing Operations:
----------------------
Combined sales and revenues:
Textile Services $70,576 $68,108 3.6
Life Uniform 21,422 24,525 (12.7)
------- -------
Total $91,998 $92,633 (0.7)
Income from operations:
Textile Services $ 4,729 $ 5,765 (18.0)
Life Uniform (6) 1,668 n/m
Corporate expense $(1,694) $(2,058) (17.7)
------- -------
Total $ 3,029 $ 5,375 (43.6)
Interest expense $ (117) $ (345) (66.1)
Non-operating income(a) $ 23 $ 49 (53.1)
Loss on early extinguishment of debt(b) -- --
Pretax income $ 2,935 $ 5,079 (42.2)
Income from continuing operations $ 2,184 $ 3,555 (38.6)
Earnings per share
- Basic $ .25 $ .41 (39.0)
- Diluted $ .24 $ .40 (40.0)
Discontinued Operations:
------------------------
Loss from discontinued
operations, net of tax -- $ (894)
Combined Continuing and
-----------------------
Discontinued Operations
-----------------------
Net income (loss) $ 2,184 $ 2,661 (17.9)
Earnings (loss) per share:
- Basic $ .25 $ .31 (19.4)
- Diluted $ .24 $ .30 (20.0)
Nine Months
-------------------
Fiscal Fiscal Percent
2004 2003 Inc (Dec)
--------- --------- ---------
Continuing Operations:
----------------------
Combined sales and revenues:
Textile Services $212,922 $203,284 4.7
Life Uniform 61,839 71,132 (13.1)
-------- --------
Total $274,761 $274,416 0.1
Income from operations:
Textile Services $ 15,842 $ 18,300 (13.4)
Life Uniform (725) 2,891 n/m
Corporate expense $ (5,825) $ (5,787) 0.7
-------- --------
Total $ 9,292 $ 15,404 (39.7)
Interest expense $ (510) $ (2,591) (80.3)
Non-operating income(a) $ 1,938 $ 462 319.5
Loss on early extinguishment of debt(b) -- $ (6,783) n/m
Pretax income $ 10,720 $ 6,492 65.1
Income from continuing operations $ 7,504 $ 4,707 59.4
Earnings per share
- Basic $ .85 $ .54 57.4
- Diluted $ .84 $ .54 55.6
Discontinued Operations:
------------------------
Loss from discontinued
operations, net of tax -- $ (6,302)
Combined Continuing and
-----------------------
Discontinued Operations
-----------------------
Net income (loss) $ 7,504 $ (1,595) n/m
Earnings (loss) per share:
- Basic $ .85 $ (.18) n/m
- Diluted $ .84 $ (.18) n/m
Footnotes:
(a) Includes in the nine months of fiscal 2004 a $1,857,000 pretax
distribution in connection with the liquidation of the parent
company of General American Life Insurance Company, which is
the issuer of various life insurance policies owned by
Angelica for funding benefits under supplemental pension and
deferred compensation plans.
(b) In the second quarter of fiscal 2003, a prepayment penalty was
paid to lenders in connection with the complete refinancing of
the Company's debt. In accordance with FASB Statement No. 4, that
prepayment penalty was treated as an extraordinary item. Under
FASB Statement No. 145, effective for fiscal 2004, the prepayment
penalty is treated as an ordinary rather than extraordinary item.
Accordingly, the results for fiscal 2003 have been restated to
reflect this change in accounting treatment.
Unaudited condensed balance sheets as of October 25, 2003 and
January 25, 2003 (dollars in thousands):
October 25, January 25,
2003 2003
----------- -----------
Current assets:
Cash and short-term investments $ 9,780 $ 18,166
Receivables, net 35,077 35,316
Inventories 12,563 13,395
Linens in service 33,558 32,520
Other 8,406 11,333
Net current assets of discontinued segment - 2,162
-------- --------
Total current assets $ 99,384 $112,892
Property and equipment, net 87,872 78,553
Other long-term assets 37,387 36,839
-------- --------
Total assets $224,643 $228,284
======== ========
Current liabilities:
Current maturities of long-term debt $ 184 $ 237
Accounts payable 19,496 19,905
Other 33,636 31,453
-------- --------
Total current liabilities 53,316 $ 51,595
Long-term debt, less current maturities 10,353 20,574
Other long-term liabilities 15,470 16,455
Shareholders' equity 145,504 139,660
-------- --------
Total liabilities and shareholders' equity $224,643 $228,284
======== ========
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 press release reflect Angelica Corporation'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 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. and healthcare benefits, the ability to attract and retain key personnel, actual charges to the 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). reserve significantly different from estimated charges, unusual or unexpected cash needs for operations or capital transactions, the effectiveness of certain expense reduction initiatives, 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/cgi-bin/photo.cgi?pw.111803/bb15 |
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