BE Aerospace reports fiscal 1996 third quarter results; Burns acquisition proceeding now that Hart-Scott-Rodino waiting period expires.WELLINGTON, Fla.--(BUSINESS WIRE)--Dec. 27, 1995--BE Aerospace, Inc. (Nasdaq-NMS: BEAV BEAV Binary Editor and Viewer ) today announced results for the fiscal third quarter and nine months ended Nov. 25, 1995. 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 for BEA's 1996 third quarter were $55,188,000, down four percent versus fiscal 1995 third quarter sales of $57,281,000. Third quarter gross profit was $17,519,000, or 31.7 percent of sales, versus $18,668,000, or 32.6 percent, in the prior year. After inclusion of a one-time, pretax charge of $4,300,000 associated with the implementation of the Company's seating business integration plan in anticipation of the previously announced acquisition of Burns Aerospace Corporation, the Company reported 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 $(1,113,000) and a net loss of $(3,368,000), or $(.21) per share, in the 1996 third quarter. This compared with an operating loss of $(18,755,000) and a net loss of $(14,569,000), or $(.90) per share, in the fiscal 1995 third quarter, which included a one-time, pretax charge of $23,736,000 related primarily to the writedown of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and inventories associated with the Company's 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. business. Sales for the first nine months of fiscal 1996 of $168,233,000, were off one percent compared with last year's level of $170,045,000. Gross profit in fiscal 1996 was $54,493,000, or 32.4 percent of sales, compared with the prior year's gross profit of $55,963,000, or 32.9 percent of sales. The fiscal 1996 nine months showed a net loss of $(3,743,000), or $(.23) per share, versus a comparable 1995 net loss of $(12,531,000), or $(.78) per share. Both years' nine-month results were affected by the previously mentioned nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". . On Nov. 25, 1995, BEA's stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was $123,140,000, equal to a book value per share of $7.58. Sequentially, versus second quarter 1996 figures, the Company's working capital improved by $14,775,000, or 16 percent, to $106,758,000. The current ratio increased in successive quarters from 2.41:1 to 2.74:1. BEA BEA - Basic programming Environment for interactive-graphical Applications, from Siemens-Nixdorf. Chairman and Chief Executive Officer Amin J. Khoury stated, "Third quarter sales, which continued to be affected by the lingering softness in the airlines' level of cabin interior refurbishment re·fur·bish tr.v. re·fur·bished, re·fur·bish·ing, re·fur·bish·es To make clean, bright, or fresh again; renovate. re·fur and entertainment system upgrade activities, were further hampered by the effect of the Boeing strike-induced slowdown in new aircraft deliveries. Nonetheless, the increasingly positive signs in the external marketplace combined with our internal operating and strategic initiatives during the quarter, while not expected to positively impact the fourth quarter's operations, have reinforced our favorable outlook for the Company's prospects next year. Net new jet orders placed by the airlines in the most recent calendar quarter were the best since the fourth quarter of 1990, helping the airframe manufacturers' book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can improve to 155 percent. In November, BEA reported new seating program orders totaling $33 million from three major airlines, followed last week by the announcement of our intended acquisition of Burns Aerospace, a leading manufacturer of aircraft seating. Also during the quarter, the Company announced a $5-million first-phase video system order from Air New Zealand Parameter not given Error... ''Template needs its first parameter as beg[in], mid[dle], or end. Parameter not given Error... as well the beginning of revenue-producing service on the first 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. 747 equipped with BEA's advanced B/E 4000 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 interactive video system. All reports indicate that the system is working as expected with both the airline and customers expressing great satisfaction." Khoury continued, "Our backlog at the end of the third quarter was $369 million, up $24 million from the second quarter level and 10 percent from the third quarter of fiscal 1995. The trend of our recent seating program awards, the resolution of the Boeing strike, the growing levels of our own backlog and book-to-bill ratio, the anticipated Spring 1996 commencement of full-scale deliveries of our MDDS system, and the cost savings to be realized from our seating integration plan, including the impending im·pend intr.v. im·pend·ed, im·pend·ing, im·pends 1. To be about to occur: Her retirement is impending. 2. acquisition of Burns, all increase our confidence in calendar 1996 (fiscal 1997) as our turnaround year." BE 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 galley structures and inserts. BE Aerospace is the world's leading supplier of cabin interior products and services, serving virtually all the world's airlines. -0-
BE AEROSPACE, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
Nov. 25, Nov. 26, Nov. 25, Nov. 26,
1995 1994 1995 1994
Net sales $55,188 $57,281 $168,233 $170,045
Cost of sales 37,669 38,613 113,740 114,082
Gross profit 17,519 18,668 54,493 55,963
--Percent 31.7% 32.6% 32.4% 32.9%
OPERATING EXPENSES: Selling, general and administrative 8,504 7,922 25,247 23,898 Research and development 3,611 3,347 11,591 8,900 Amortization 2,217 2,418 6,910 7,627 Other expenses 4,300 23,736 4,300 23,736 Total operating expenses 18,632 37,423 48,048 64,161 OPERATING EARNINGS/ (LOSS) (1,113) (18,755) 6,445 (8,198) --Percent (2.0)% (32.7)% 3.8% (4.8)% Interest expense, net 4,237 3,758 12,386 11,080 LOSS BEFORE INCOME TAXES (5,350) (22,513) (5,941) (19,278) Income taxes benefit (1,982) (7,944) (2,198) (6,747) NET LOSS $(3,368) $(14,569) $(3,743) $(12,531) NET LOSS PER COMMON SHARE $(.21) $(.90) $(.23) $(.78) Common and common equivalent shares 16,118 16,103 16,111 16,075 CONTACT: Jay Jacobson 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 212/889-6362 |
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