B/E Aerospace Reports Record 1998 Second Quarter Results Net Income of $8.1 Million, or 35 Cents Per Share, On Sales of $119.8 Million.WELLINGTON, Fla.--(BUSINESS WIRE)--Sept. 16, 1997--B/E Aerospace Inc. (Nasdaq-NMS: BEAV BEAV Binary Editor and Viewer ) today announced record quarterly sales, 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 , net earnings and earnings per share for its fiscal 1998 second quarter and first six months ended Aug. 30, 1997. Fiscal 1998 second 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 were $119,843,000, up 16 percent vs. 1997 second quarter sales of $103,026,000, reflecting a 25-percent increase in product sales offset by a $5-million decline in service revenues. Second quarter gross profit of $44,149,000 was up 28 percent from the comparable prior-year level of $34,439,000 as a result of both the higher sales and a significant year-to-year increase in gross margin (36.8 percent in 1998 vs. 33.4 percent in 1997). Record operating earnings of $14,899,000 in the current period were $5,365,000 or 56 percent greater than $9,534,000 in the fiscal 1997 second quarter. As a result, the second quarter 1998 operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: expanded to 12.4 percent vs. 9.3 percent in 1997. Similarly, the company reported all-time high net earnings for any quarter of $8,077,000, up 334 percent vs. $1,863,000 reported in the fiscal 1997 second quarter. Second quarter 1998 earnings per share of 35 cents more than tripled the year-earlier level of 11 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , despite a 33-percent year-over-year increase in common and common equivalent shares outstanding to 23,344,000 in 1998 vs. 17,598,000 in 1997. Sales for the first six months of fiscal 1998 were $233,689,000, up 17 percent from the fiscal 1997 first half (again reflecting a 25-percent increase in product sales offset by a $10-million decline in service revenues as a result of the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of certain service offerings). Likewise, gross profit for the first six months of fiscal 1998 of $85,212,000 was up 27 percent vs. the prior year to $66,986,000, while the gross margin expanded to 36.5 percent of sales vs. 33.4 percent reported last year. For the 1998 first half, B/E reported net earnings of $15,020,000, or 65 cents per share, vs. $3,296,000, or 19 cents per share, in fiscal 1997. Second quarter performance also continued to strengthen the company's balance sheet. As of August 30, the company's working capital had risen to $144,686,000, a gain of 18 percent vs. the fiscal 1997 year-end level. The company's current ratio improved to 2.6 to 1 at the end of the second quarter compared with 2.3 to 1 at Feb. 22, 1997. Separately, British Airways British Airways in full British Airways PLC International passenger airline based in London. In 1936 British Airways Ltd. was founded through the merger of three smaller airlines. has notified the company that, for the time being, it intends to substantially scale back its individual passenger in flight entertainment program. British Airways has decided to equip its wide body fleet with a twelve channel distributed individual passenger video system throughout all classes of service. British Airways expects to fly a non-interactive twelve channel version of B/E's MDDS MdDS Mal de Debarquement Syndrome MDDS Medical Device Data System MDDS Multi-Domain Dissemination System (PACOM) MDDS Mission Data Distribution System MDDS Multimedia Digital Distribution System MDDS Maintenance Data Development System system on the trial aircraft through Dec. 15, 1997, at which time it will make a procurement decision. B/E Vice Chairman and Chief Executive Officer Robert J. Khoury stated, "Our second quarter results for fiscal 1998 were very solid and marked the sixth consecutive quarter in which the company has reported financial results which exceeded expectations. Clearly, our performance reflects the vigorous ongoing worldwide trends for airline industry refurbishment of existing fleets, upgrade spending, particularly for advanced individual-passenger entertainment systems, and new aircraft purchases. We continue to record substantial sales growth, which, when combined with the improvements in gross and operating margins we are achieving as a result of our productivity improvement efforts, have led to the new records in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , net income and earnings per share. "At August 30, 1997, B/E's backlog stood at $525 million, fueled by substantial new orders for seating and in-flight entertainment In-flight entertainment (IFE) refers to the entertainment available to aircraft passengers during a flight. After World War II commercial aviation flights became a daily event in which entertainment was requested by passengers to help the time pass. products from American Airlines American Airlines Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the and Asiana Airlines Asiana redirects here. There is also a British Asian magazine called Asiana. | Asiana Airlines (아시아나 항공 Asiana Hanggong KOSDAQ: 020560) (Formerly Seoul Airlines , respectively, offset by a substantial reduction in backlog related to British Airways' decision not to go forward with an interactive system at this time. The company believes that it has an excellent twelve channel distributed video system and is hopeful that it will be selected by British Airways on December 15." Khoury concluded, "We continue to be optimistic with regard to the overall market environment in which we operate. The number of requests by airlines for program quotations remains strong. We are also very bullish on the prospects for the joint venture we recently announced with Harris Corp. to produce and sell the equipment and services required to offer in-flight LiveTV(TM) to airline passengers. "We see the potential for LiveTV(TM), on domestic narrowbody aircraft Noun 1. narrowbody aircraft - a commercial airliner with a single aisle narrow-body, narrow-body aircraft airliner - a commercial airplane that carries passengers alone, as a significant new $3-billion market, which adds to the previously estimated $8-billion potential market for in-seat video entertainment systems on widebody aircraft. We look forward with confidence to the challenges of the future." B/E Aerospace Inc. designs, manufactures, sells and services a broad line of commercial aircraft cabin An aircraft cabin is the section of an aircraft in which passengers travel, often just called the cabin. At cruising altitudes, the surrounding atmosphere is too thin to breathe without an oxygen mask, so cabin pressurization adapts the cabin to atmospheric pressures. interior products, including seating products, passenger entertainment and service systems, and a complete line of food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. preparation and storage equipment. B/E Aerospace is the world's leading supplier of cabin interior products and services, serving virtually all the world's airlines. -0- This press release contains forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those anticipated; among these are the company's dependence upon conditions in the airline industry, the company's financial leverage, the size and resources of many of the company's competitors and the need for the company to continue to effectively integrate acquired businesses and successfully manufacture and deliver technologically advanced products. Additional information with respect to these and other factors which could materially affect the company is included in the company's filings with the Securities and Exchange Commission, including its most recent Form 10-Q Form 10-Q See 10-Q. , proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. and Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and the prospectus dated Dec. 12, 1996, relating to the company's recent common stock offering. -0-
B/E Aerospace Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
Aug. 30, Aug. 31, Aug 30, Aug. 31
1997 1996 1997 1996
Net sales $119,843 $103,026 $233,689 $200,328
Cost of sales 75,694 68,587 148,477 133,342
Gross profit 44,149 34,439 85,212 66,986
--Percent 36.8% 33.4% 36.5% 33.4%
OPERATING EXPENSES:
Selling, general and
administrative 15,032 12,669 27,935 24,254
Research, development
and engineering 11,542 9,430 22,550 19,157
Amortization 2,676 2,806 5,529 5,514
Total Operating Expenses 29,250 24,905 56,014 48,925
Operating earnings 14,899 9,534 29,198 18,061
--Percent 12.4% 9.3% 12.5% 9.0%
Interest expense, net 5,401 7,464 11,531 14,399
Earnings before income
taxes 9,498 2,070 17,667 3,662
Income taxes 1,421 207 2,647 366
Net earnings $ 8,077 $ 1,863 $ 15,020 $ 3,296
Net earnings per
common share $ .35 $ .11 .65 $ .19
Common and common
equivalent shares 23,344 17,598 23,209 17,446
CONTACT: Financial Relations, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Jay Jacobson, 914/722-2737 |
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