BMC Reports Results for the Year and Quarter Ended December 31, 1999.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Feb. 1, 2000 Today, BMC (BMC Software, Inc., Houston, TX, www.bmc.com) A leading supplier of software that supports and improves the availability, performance, and recovery of applications in complex computing environments. Industries, Inc. reported an overall increase in annual revenues and net income. For the year ended December December: see month. 31, 1999, BMC revenues increased $18.7 million to $353.9 million, compared with $335.1 million in 1998. Net income for the year was $7.8 million, or $0.28 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 with a loss of $30.6 million, or ($1.13) per diluted share in 1998. For the quarter ended December 31, 1999, BMC revenues increased $6.0 million to $87.5 million, as compared to $81.5 million in fourth quarter 1998. Total fourth quarter 1999 income from operations was $2.5 million versus $10.9 million in fourth quarter 1998. BMC reported breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations performance, or $0.00 per diluted share, for fourth quarter 1999, compared to net income of $4.7 million, or $0.17 per diluted share, for the fourth quarter of 1998. Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. B. Burke The name Burke (from Irish Gaelic de Burca, of Norman origin). In English the meaning of the name Burke is "fortified hill." See also Berkley. Places Australia
Mr. Burke continued: &uot;The costs associated with implementing several initiatives aimed at renewing Vision-Ease's growth in sales and earnings negatively affected Vision-Ease's fourth quarter performance. These initiatives included polycarbonate A category of plastic materials used to make a myriad of products, including CDs and CD-ROMs. marketing and manufacturing process improvements, 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). the organization and the acceleration of the movement of production to low cost locations. We expect a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact from these initiatives in 2000.&uot; For the full year, BMC's Optical Products group (&uot;Vision-Ease&uot;) sales grew $12.9 million, or 11%, from $123.1 million in 1998 to $136.0 million in 1999. 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 for 1999 were $5.7 million, as compared to $10.2 million in 1998. BMC's Optical Products group generated sales of $29.2 million in the fourth quarter of 1999, down 3%, or $0.8 million, from the prior year quarter. Continued softness in the retail optical market, product transition issues and highly competitive promotional practices favoring favoring an animal is said to be favoring a leg when it avoids putting all of its weight on the limb. A part of being lame in a limb. two-for-one low-end low-end adj. 1. Cheapest in a line of merchandise: low-end subcompact cars. 2. Informal Of, relating to, or intended for low-income consumers; downscale: lens products affected fourth quarter earnings. Sales of high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. products (polycarbonate, progressive and polarizing sun lenses) increased 2% in fourth quarter 1999 from the prior year quarter and accounted for 54% of total fourth quarter 1999 Optical Products' revenues, compared to 52% in fourth quarter 1998. Consistent with management expectations, revenue from glass lenses was flat and revenue from plastic lenses declined quarter-over-quarter. Several factors contributed to the unfavorable change in Optical Products' earnings during the quarter. These factors included lower sales during the quarter, increased unit product costs primarily due to reduced production volumes, additional inventory write-offs, absorption of abnormally high year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. production cost from inventory sold, and product discontinuances and phase-outs related to product line integration. During the quarter, Vision-Ease stepped up its European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. expansion efforts by establishing a processing laboratory in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). intended to serve our growing European retail customer base. In addition, the progressive lens, Outlook(TM), made positive inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ into the higher margin progressive lens market. Major customer acceptance of Outlook(TM) translated into a 24% increase in sales from third quarter 1999. Both of these growth initiatives are expected to have a significant impact on sales and earnings in 2000 and beyond. Fourth quarter revenues from the Precision Imaged Products group (&uot;PIP&uot;, which includes both the Mask Operations and Buckbee-Mears St. Paul St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery &uot;BMSP&uot;) increased 13% to $58.3 million in 1999, as compared to $51.5 million in 1998. Sales of computer monitor masks increased 38% in fourth quarter 1999 as compared to fourth quarter 1998. Incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenue from the Cortland monitor mask line (restarted in first quarter 1999) and a continued migration to larger-sized monitor masks contributed to this increase. Sales of jumbo entertainment masks in fourth quarter 1999 increased 35% as compared to the prior year quarter. PIP experienced a slight decrease in sales of other entertainment masks, particularly sales of AK steel masks and lower revenues from its BMSP BMSP Backbone Multiservice Platform BMSP Brazilian Meeting on Simulational Physics BMSP Business Management and Sales Process BMSP Bonds Minimum Statistical Plan operation. For the full year, PIP sales grew from $212.1 million in 1998 to $217.9 million in 1999, a 3.0% increase. Operating earnings for the year increased substantially from a loss of $40.8 million in 1998 to earnings of $23.9 million in 1999. Improved product mix and strong performances by both mask manufacturing facilities caused PIP's operating earnings to increase over the prior year quarter. During the fourth quarter, BMC favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. settled a claim against Barth Industries for approximately $1 million. The benefit of this gain is included as other income on the consolidated income statement consolidated income statement An income statement that combines the income statements of two or more organizations. As with other consolidated statements, a consolidated income statement eliminates any funds owed to or due from firms within the same group. . The Company's higher fourth quarter tax rate is attributable to an increased percentage of earnings from the Company's foreign operations, which are taxed at a higher rate than domestically generated earnings. This press release contains 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. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are intended to be covered by 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. Statements made in this press release which are not strictly historical, including statements regarding future performance, are forward-looking statements and as such are subject to a number of risks and uncertainties, including, among others, ability to implement the Optical Products group's initiatives in strategic polycarbonate marketing and manufacturing adjustments; ability to grow European sales through the operation of processing laboratories; lower demand for televisions, computer monitors and ophthalmic ophthalmic /oph·thal·mic/ (of-thal´mik) ocular (1). oph·thal·mic adj. Of or relating to the eye; ocular. Ophthalmic Pertaining to the eye. lenses; further mask and ophthalmic lens price declines and imbalances of supply and demand; customer product qualifications; liability and other claims asserted against the Company; continued slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. at BMSP; ability to partner with new BMSP customers or transition development relationships into full scale production; new product development, introduction and acceptance, including the roll out of the polycarbonate wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. lamination lamination a laminar structure or arrangement. system; cost reduction and reorganization efforts; continued higher manufacturing costs; adjustments to inventory valuations; negative foreign currency fluctuations, including adverse fluctuations affecting cross-currency swaps; ability to recruit and retain key personnel; the impact of Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 information systems issues; the effect of the economic uncertainty in Asia; and a potential economic slowdown in other parts of the world. Certain of these and other risks and uncertainties are discussed in further detail in BMC's Annual Report 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. for the year ended December 31, 1998 and other documents filed with the Securities and Exchange Commission. BMC Industries, Inc. is a leading producer of polycarbonate, glass and plastic eyewear eye·wear n. 1. Eyeglasses, goggles, or other objects worn over the eyes. 2. Fashionable eyeglasses. lenses. BMC is also one of the world's largest manufacturers of aperture An orifice. It often refers to an opening in which light is allowed to pass in optical systems such as cameras and lasers. See f-stop and numerical aperture. masks for color picture tubes used in televisions and computer monitors. BMC's common stock is 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 BMC. For more information about BMC Industries, Inc., visit the companies website: www.bmcind.com.
BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31 December 31
----------------------------------------
1999 1998 1999 1998
----------------------------------------------------------------------
Revenues $ 87,549 $ 81,529 $ 353,854 $ 335,138
Cost of products sold 79,577 65,818 305,592 297,995
----------------------------------------------------------------------
Gross Margin 7,972 15,711 48,262 37,143
Selling 4,498 3,748 18,650 15,496
Administrative 990 1,107 4,702 5,179
Impairment of
long-lived assets -- -- -- 42,800
Acquired research
and development -- -- -- 9,500
----------------------------------------------------------------------
Income (Loss) from Operations 2,484 10,856 24,910 (35,832)
----------------------------------------------------------------------
Other Income and (Expense)
Interest expense (3,238) (3,887) (13,376) (13,537)
Interest income 122 64 277 163
Other income (expense) 1,466 1,454 1,036 522
----------------------------------------------------------------------
Earnings (Loss) Before
Income Taxes 834 8,487 12,847 (48,684)
Income Taxes 782 3,810 5,023 (18,049)
----------------------------------------------------------------------
Net Earnings (Loss) $ 52 $ 4,677 $ 7,824 $ (30,635)
======================================================================
Net Earnings (Loss) Per Share:
Basic $ 0.00 $ 0.17 $ 0.29 $ (1.13)
Diluted 0.00 0.17 0.28 (1.13)
======================================================================
Number of Shares Included in
Per Share Computation:
Basic 27,370 27,169 27,299 27,014
Diluted 27,668 27,405 27,710 27.014
======================================================================
BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
----------------------------------------------------------------------
December 31 December 31
1999 1998
----------------------------------------------------------------------
Assets
Cash and cash equivalents $ 1,146 $ 1,028
Trade accounts receivable, net 42,025 39,163
Inventories 82,312 82,853
Deferred income taxes 11,588 14,603
Other current assets 12,580 14,347
----------------------------------------------------------------------
Total Current Assets 149,651 151,994
----------------------------------------------------------------------
Property, plant and equipment 278,807 276,630
Less accumulated depreciation 127,569 114,036
----------------------------------------------------------------------
Property, plant and
equipment, net 151,238 162,594
----------------------------------------------------------------------
Deferred income taxes 9,221 5,431
Intangibles and other assets, net 73,443 79,446
======================================================================
Total Assets $ 383,553 $ 399,465
======================================================================
Liabilities and Stockholders' Equity
----------------------------------------------------------------------
Short-term borrowings $ 2,303 $ 1,929
Accounts payable 30,342 28,315
Income taxes payable 8,093 3,375
Accrued expenses and other current
liabilities 19,197 23,404
----------------------------------------------------------------------
Total Current Liabilities 59,935 57,023
----------------------------------------------------------------------
Long-term debt 165,959 187,266
Other liabilities 18,522 18,372
Deferred income taxes 2,715 3,547
Stockholders' equity
Common stock 49,077 47,714
Retained earnings 92,620 86,436
Accumulated other
comprehensive income (3,495) 1,113
Other (1,780) (2,006)
----------------------------------------------------------------------
Total Stockholders' Equity 136,422 133,257
----------------------------------------------------------------------
Total Liabilities and Stockholders'
Equity $ 383,553 $ 399,465
======================================================================
BMC INDUSTRIES, INC.
SEGMENT INFORMATION
(Unaudited)
(in thousands)
Three Months Ended December 31
------------------------------------------------------------
Precision Imaged Optical Consolidated
Products Products
------------------------------------------------------------
1999 1998 1999 1998 1999 1998
----------------------------------------------------------------------
Revenues $58,337 $51,522 $29,212 $30,007 $87,549 $81,529
Cost of products
sold 49,892 44,111 29,685 21,707 79,577 65,818
----------------------------------------------------------------------
Gross margin 8,445 7,411 (473) 8,300 7,972 15,711
Gross margin % 14.5% 14.4% (1.6)% 27.7% 9.1% 19.3%
Selling 1,176 829 3,322 2,919 4,498 3,748
Unallocated corporate
administration - - - - 990 1,107
======================================================================
Income (loss) from
operations $ 7,269 $ 6,582 $(3,795) $5,381 $ 2,484 $10,856
======================================================================
Operating income % 12.5% 12.8% (13.0)% 17.9% 2.8% 13.3%
Capital spending $ 4,099 $ 3,225
Depreciation and
amortization $ 6,334 $ 5,249
EBITDA $10,284 $17,559a
EBITDA % 11.7% 21.5%
a) Includes $2.5 million of non-operating items.
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