Anthony & Sylvan Pools Corporation Announces Third Quarter Results and Favorable Resolution of Split-off Matters From Essef Corporation.MAYFIELD Mayfield, city (1990 pop. 9,935), seat of Graves co., SW Ky., in an area of farms and clay deposits; founded 1823. It is an agricultural trade center with a tobacco market. VILLAGE, Ohio--(BUSINESS WIRE)--Oct. 27, 1999-- Anthony & Sylvan sylvan emanating from or pertaining to woods. See also sylvatic. Pools Corporation (Nasdaq:SWIM) today announced results for its third quarter and nine-month period ended September September: see month. 30, 1999. For the quarter, 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 of $58,483,000 increased 10% from $53,038,000 for the same period last year. Net income for the fiscal 1999 third quarter was $1,972,000 or $0.52 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 compared to $2,248,000 or $0.60 per diluted share for the same period last year. For the nine-month period, net sales were $147,059,000, increasing 19% from $123,493,000 for the same period last year. Net income for the nine-month period of $1,864,000 or $0.49 per diluted share compared to net income of $3,334,000 or $0.88 per diluted share in 1998. "The sales increase for the third quarter was predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the acquisition of Pools by Andrews Noun 1. Andrews - United States naturalist who contributed to paleontology and geology (1884-1960) Roy Chapman Andrews completed in August 1998," commented Stuart D. Neidus, Anthony & Sylvan's Chairman and Chief Executive Officer. Mr. Neidus added, "While the acquisitions have contributed sales, they are not yet contributing to our profitability. The investments we are making in each of these new markets present good opportunities for profitable growth as we gain critical mass. In addition, we continue to experience some downward pressure on margins from a tight labor market labor market A place where labor is exchanged for wages; an LM is defined by geography, education and technical expertise, occupation, licensure or certification requirements, and job experience and our costs outpacing our ability to increase prices." Mr. Neidus also stated, "The year has been one of major transition with all the distractions and challenges created by the split-off The process whereby a parent corporation organizes a subsidiary corporation to which it transfers part of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the shareholders of the parent corporation in exchange for a portion of their from our former parent, a number of management changes in our various markets and integration of acquired businesses. Looking to the seasonally slower last quarter, our backlogs remain strong compared to last year." The Company also announced that it was not required to pay to its former parent company, Essef Corporation, any of the $17,000,000 dividend that might have been due under certain adjustment mechanisms related to the Company's split-off from Essef. As such, all of the Company's debt to Essef was contributed to the Company's capital, increasing shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $36 million. Mr. Neidus concluded, "The split-off into a free-standing free-standing Managed care adjective Referring to a physically and, often, financially discrete entity–eg, a surgical center, that is separate from, but may be affiliated with, a hospital; FS facilities may provide ambulatory surgery, emergency or public company during the quarter begins a new era in the 50+ year history of Anthony & Sylvan. With virtually no debt, low working capital needs, and an untapped $35 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility in place, we are financially strong and well-positioned to take advantage of opportunities as they arise." Anthony & Sylvan (http://www.anthonysylvan.com) is one of the largest installers of residential in-ground concrete swimming pools 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. with a network of 43 sales offices in 25 geographic markets in 16 states. The Company also is a provider of pool-related products and services, including renovation, pool supplies and replacement goods, commercial pool installation and pool servicing. This press release contains statements that are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , as that term is defined by 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 or by the Securities and Exchange Commission in its rules, regulations, and releases. The Company intends that such 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. be subject to the safe harbors 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. created thereby. All forward-looking statements are based on current expectations regarding important risk factors, including but not limited to: the costs of integrating acquired businesses; dependence on existing management; consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. and market conditions; weather; and year 2000 issues. Accordingly, actual results may differ from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by the Company or any other person that results expressed therein will be achieved. -0-
Anthony & Sylvan Pools Corporation
Balance Sheets
(Dollars in thousands)
September 30, December 31,
1999 1998
ASSETS ------------- -----------
------ (unaudited) (audited)
Current Assets:
Cash and cash equivalents $ 6,270 $ --
Accounts receivable, net 8,421 10,307
Inventories, net 6,173 4,336
Prepayments and other 2,525 2,052
Deferred income taxes 1,717 1,948
------- -------
Total current assets 25,106 18,643
Property, plant and equipment, net 8,483 7,258
Goodwill, net 27,728 28,052
Other 967 320
------- -------
$62,284 $54,273
------- -------
------- -------
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Current maturities of long-term debt $ 202 $ 244
Payable to Essef Corporation -- 29,361
Accounts payable 9,683 6,160
Accrued expenses 13,912 10,307
Accrued income taxes 1,321 --
------- -------
Total current liabilities 25,118 46,072
Long-term Debt 119 260
Other Long-term Liabilities 1,200 1,200
Commitments and Contingencies -- --
Shareholders' Equity 35,847 6,741
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$62,284 $54,273
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------- -------
Anthony & Sylvan Pools Corporation
Unaudited Statements of Income
For the Three and Nine Months Ended
September 30, 1999 and 1998
(Dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
-------- -------- -------- --------
Net sales $ 58,483 $ 53,038 $147,059 $123,493
Cost of sales 42,634 38,539 107,786 89,136
-------- -------- -------- --------
Gross profit 15,849 14,499 39,273 34,357
Operating expenses 12,500 10,228 34,427 27,299
-------- -------- -------- --------
Income from operations 3,349 4,271 4,846 7,058
Interest and other
expense 62 478 1,785 1,504
-------- -------- -------- --------
Income before
income taxes 3,287 3,793 3,061 5,554
Provision for income
taxes 1,315 1,545 1,197 2,220
-------- -------- -------- --------
Net income $ 1,972 $ 2,248 $ 1,864 $ 3,334
-------- -------- -------- --------
-------- -------- -------- --------
Earnings per share:
Basic $ .59 $ .67 $ .56 $ .99
-------- -------- -------- --------
-------- -------- -------- --------
Diluted $ .52 $ .60 $ .49 $ .88
-------- -------- -------- --------
-------- -------- -------- --------
Average shares outstanding:
Basic 3,351 3,357 3,351 3,351
-------- -------- -------- --------
-------- -------- -------- --------
Diluted 3,772 3,772 3,772 3,772
-------- -------- -------- --------
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