Applied Power announces record sales and earnings per share.MILWAUKEE--(BUSINESS WIRE)--June 20, 1996--Applied Power Inc. (APW APW All Pro Wrestling APW Altmar Parish Williamstown (School District; Parish, New York) APW Add-Printer Wizard (Microsoft Windows) APW Augmented Plane Wave APW Apparent Polar Wander - NYSE NYSE See: New York Stock Exchange ) announced today record sales and earnings per share for the third quarter ended May 31, 1996. Sales for the third quarter were $147.6 million, an increase of 6 percent over the same period last year. Net income for the third quarter was $9.1 million, or $0.65 per share, an increase of 25 percent over the $7.3 million, or $0.53 per share in fiscal 1995. For the first nine months of fiscal 1996, sales were $423.9 million, an increase of 9 percent over the comparable period in 1995. Earnings from 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 extraordinary charges were $24.5 million, or $1.75 per share, an increase of 38 percent over the $17.4 million, or $1.27 per share in the prior year period. Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a G. Sim (1) (Society for Information Management, Chicago, IL, www.simnet.org) Founded in 1968 as the Society for MIS, it is a membership organization made up of corporate and division heads of IT organizations. , Chairman 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. , commented, "We are pleased with the continuing improvement in our quarterly results. Sales growth in the third quarter, excluding the effect of the stronger dollar, was 8.5 percent, slightly lower than the 10 percent growth we experienced in the first and second quarters. Strength in our sustainable growth business units is being offset by softer market conditions in some of our cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. units. Our operating profit margins Operating profit margin The ratio of operating profit to net sales. continue to improve; the third quarter margin of 11.2 percent is the highest since November November: see month. 1991. The combination of sales growth and operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: improvement has allowed Applied Power to enjoy substantial year-over-year earnings improvement for the last ten quarters." All of Applied Power's business segments demonstrated positive sales growth for the third quarter as compared to the comparable prior year period. Wright Line continued to exhibit the strongest growth, with sales of $22.2 million, an increase of 27 percent. Distributed Products, with the addition of its recent acquisitions, grew 3 percent for the third quarter to $71.1 million. Engineered Solutions grew 3 percent for the quarter to $54.2 million, as strong growth in Barry Barry, Welsh Barri, town (1991 pop. 45,053) and port, Vale of Glamorgan, S Wales, on the Bristol Channel. Once a major coal-exporting port, its more diversified export products include cement, flour, and steel products. Controls was offset by the sale of the APITECH Mobile Equipment product line in the second quarter. Debt for the third quarter increased $7.3 million to $102.2 million as the increase in debt related to the CalTerm acquisition, completed in May, was partially offset by 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 . The Company's debt to total capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. has remained constant at 37 percent. Commenting on the future outlook, Sim stated, "We feel Applied Power is positioned to continue to deliver strong year-over-year improvements in operating results. Including the effect of the recent CalTerm acquisition, we expect the fourth quarter to have stronger sales growth than the third quarter, ending fiscal 1996 with sales between $570 and $580 million and earnings of $2.35 to $2.45 per share. Going into fiscal 1997, the combination of our sustainable growth initiatives, synergetic synergetic /syn·er·get·ic/ (sin?er-jet´ik) synergic. syn·er·get·ic adj. Synergistic. acquisitions, and improving operating margins should lead to continued improved financial performance for Applied Power." The above estimates for fiscal 1996 and fiscal 1997 represent forward looking statements subject 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. created 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. Management cautioned that these projections are based on current estimates of future performance and are highly dependent upon a variety of factors which could cause actual results to differ from these estimates. These factors include the economic environment in the industrial production, trucking, construction, aerospace, automotive, and defense industries in both 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. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . Applied Power's results are also subject
to continued market acceptance of Wright Line's technical
environment solutions, operating margin risk due to competitive pricing,
foreign currency and interest rate risk.
Applied Power is a global company comprised of three business segments. Engineered Solutions supplies components and systems based on hydraulic and vibration control technologies to a diverse group of OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers. Distributed Products provides a wide variety of industrial and electrical tools and consumables sold primarily through distribution worldwide. Wright Line provides technical environment solutions for offices and laboratories. -0- To receive a faxed copy of this or other recent Applied Power communications, please call the Company's "News on Demand" service at 800/549-0679. -0- Applied Power Inc. Comparative Statement of Earnings (In Thousands, Except per Share Amounts)
Three Months Ended May 31,
_________________________
1996 1995
_________ _________
Sales $ 147,569 $ 139,353
Cost of Goods Sold 92,124 85,717
_________ _________
Gross Profit 55,445 53,636
Engineering, Selling and
Administrative Expense 38,871 39,378
_________ _________
Operating Profit 16,574 14,258
Other Expense (Income)
Interest Expense (Net) 1,977 2,508
Amortization of Intangibles 1,096 611
Other (Net) 37 236
_________ _________
Earnings Before Income Taxes 13,464 10,903
Income Tax Expense 4,319 3,598
_________ _________
Net Income $ 9,145 $ 7,305
_________ _________
_________ _________
Earnings per Share $ 0.65 $ 0.53
_________ _________
_________ _________
Average Shares Outstanding 13,994 13,764
Applied Power Inc. Comparative Statement of Earnings (In Thousands, Except per Share Amounts)
Nine Months Ended May 31,
_________________________
1996 1995
_________ _________
Sales $ 423,919 $ 389,653
Cost of Goods Sold 262,727 240,553
_________ _________
Gross Profit 161,192 149,100
Engineering, Selling and
Administrative Expense 116,529 110,199
_________ _________
Operating Profit 44,663 38,901
Other Expense (Income)
Interest Expense (Net) 6,091 8,162
Amortization of Intangibles 2,804 2,656
Other (Net) (284) 1,650
_________ _________
Earnings Before Income Taxes 36,052 26,433
Income Tax Expense 11,547 9,049
_________ _________
Net Earnings from Continuing Operations 24,505 17,384
Extraordinary Loss from Early
Extinguishment of Debt,
Net of $2,423 Tax Benefit 0 (4,920)
_________ _________
Net Income $ 24,505 $ 12,464
_________ _________
_________ _________
Net Earnings per Share:
Continuing Operations $ 1.75 $ 1.27
Extraordinary Charge 0.00 (0.36)
_________ _________
Earnings per Share $ 1.75 $ 0.91
_________ _________
_________ _________
Average Shares Outstanding 13,968 13,685 Applied Power Inc. Comparative Balance Sheet (Dollars in Thousands)
May 31, August 31,
1996 1995
_________ _________
CURRENT ASSETS
Cash and Cash Equivalents $ 4,118 $ 911
Accounts Receivable 71,403 71,000
Inventories 116,028 103,358
Prepaid Expenses 15,556 15,195
_________ _________
Total Current Assets 207,105 190,464
Other Assets 6,264 6,274 Goodwill 59,001 57,346 Intangible Assets 31,349 10,427
Property, Plant & Equipment
Gross Property, Plant & Equipment 163,400 153,226
Less: Accumulated Depreciation (88,236) (84,791)
_________ _________
Net Property, Plant & Equipment 75,164 68,435
_________ _________
TOTAL ASSETS $ 378,883 $ 332,946
_________ _________
_________ _________
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term Borrowings $ 17,987 $ 12,620
Trade Accounts Payable 40,060 37,530
Accrued Compensation and Benefits 16,993 19,707
Income Taxes Payable 9,522 7,575
Other Current Liabilities 24,695 19,828
Current Maturities of Long-term Debt 0 187
_________ _________
Total Current Liabilities 109,257 97,447
Long-term Debt, Less Current Portion 84,188 74,156 Deferred Income Taxes 14,496 16,386 Other Long-term Liabilities 13,462 13,271
SHAREHOLDERS' EQUITY
Common Stock 2,714 2,681
Additional Paid-in Capital 32,828 28,328
Retained Earnings 117,578 94,285
Cumulative Translation Adjustments 4,360 6,392
_________ _________
Total Shareholders' Equity 157,480 131,686
_________ _________
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $378,883 $332,946
_________ _________
_________ _________
CONTACT: Applied Power Inc., Milwaukee Milwaukee (mĭlwŏk`ē), city (1990 pop. 628,088), seat of Milwaukee co., SE Wis., at the point where the Milwaukee, Menominee, and Kinnickinnic rivers enter Lake Michigan; inc. 1846. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. C. Arzbaecher, 414/781-6600 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion