BMC Reports Third Quarter 1998 Results.MINNEAPOLIS--(BUSINESS WIRE)--Oct. 22, 1998--BMC Industries, Inc. reported a net loss of $2.0 million, or $.07 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, for the third quarter of 1998. This compares to net earnings of $0.31 per diluted share in the third quarter of 1997. Total third quarter revenues increased 12% from $79.1 million in 1997 to $88.6 million in 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
The absorption of stock by the public from a new issue. Notes: Underwriters hope to sell all of a new issue to the public. See also: Issuer, Underwriting Assimilation of the Orcolite acquisition, reduce costs and inventory at Mask Operations and generate solid cash flow. We successfully decreased our inventory balance by $11.0 million and reduced our debt balance $9.6 million in the third quarter. We expect further inventory and debt reductions in the fourth quarter as we continue our focus on cash flow and balance sheet management." BMC's Optical Products operation generated sales of $36.6 million in the third quarter compared to $24.3 million in the prior year quarter, an increase of 51%. On a proforma Proforma A financial projection based on assumptions. basis, revenues increased 9% over the combined Vision-Ease and Orcolite 1997 third quarter revenues. 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 A category of plastic materials used to make a myriad of products, including CDs and CD-ROMs. , high-index, progressive and polarizing sun lenses) grew 114% over the prior year quarter. On a proforma basis, high-end sales grew 23%. High-end sales accounted for 60% of total Optical Products' revenue in the third quarter compared to 42% in the year earlier period. Sales of glass and commodity plastic lenses were somewhat slower than anticipated. 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 increased 13% over the prior year quarter, even as the Optical Products division continued to invest heavily in the sales and marketing area, incurred expenses related to the integration of Orcolite and recognized amortization expense related to the Orcolite goodwill. Vision-Ease continued work on key strategic development initiatives during the third quarter. They will be launching a new polycarbonate progressive lens in the fourth quarter to meet significant demand in the marketplace for high-quality polycarbonate progressive lenses Progressive lenses, also called progressive addition lenses (PAL), progressive power lenses, graduated lenses and varifocal lenses, are corrective lenses used in eyeglasses to correct presbyopia and other disorders of accommodation. . The Company expects to see the sales impact from these lenses later in the fourth quarter and into 1999. They also continued development of their polycarbonate lens lamination lamination a laminar structure or arrangement. system. The system will be tested at various retail lens dispensing dispensing provision of drugs or medicines as set out properly on a lawful prescription. A prescription can only be filled, the drugs supplied, by a registered pharmacist, veterinarian, dentist or member of the medical profession. locations in the fourth quarter. The Company expects full rollout of the system in 1999. Third quarter revenues from the Precision Imaged Products division (PIP, including 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 ) decreased 5% from $54.8 million in 1997 to $52.0 million in 1998. Computer monitor mask sales were up 19% over the prior year period, moving from $6.2 million last year to $7.4 million in the current quarter. Total television mask unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. increased 13%. Television mask revenues, however, decreased 9% due primarily to lower invar Invar Trademark name for an alloy of iron (64% iron, 36% nickel) that expands very little when heated. Invar was formerly used for absolute standards of length measurement and is now used for surveying tapes and in watches and various other temperature-sensitive devices. mask sales and overall price declines. Sales of jumbo (30" and larger) and large (25" to 29") masks made of AK steel were up 18% and 9%, respectively. Sales of invar television masks were down 39% compared to the prior year quarter. As stated in previous earnings releases, the Company expects the soft market for invar television masks to continue through the end of the year. The PIP division incurred 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 $2.6 million in the third quarter primarily due to the extended shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down of three manufacturing lines at the Cortland Cortland (kôrt`lənd), city (1990 pop. 19,801), seat of Cortland co., central N.Y.; settled 1791, inc. as a city 1900. Light industries supplement the area's agricultural production; Cortland was long noted as the producer of Smith Corona facility and continued pricing pressure in the mask business. The Company estimates the extended shutdown of these lines negatively impacted profits by approximately $4.0 million, however, this shutdown was instrumental in allowing Mask Operations to reduce their inventory by approximately $10.0 million. One of the three manufacturing lines that was temporarily shutdown has now resumed operation. Restarting the remaining two lines (one television and one computer monitor) is contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent success in growing market share and improved market conditions in the future. Buckbee-Mears St. Paul (BMSP BMSP Backbone Multiservice Platform BMSP Brazilian Meeting on Simulational Physics BMSP Business Management and Sales Process BMSP Bonds Minimum Statistical Plan ) is continuing on course for another record year in 1998 for both revenues and earnings. BMSP is working on numerous product development initiatives with a variety of customers that could substantially increase revenues and profits in future years. Statements made in this press release which are not historical, including statements regarding future performance, are forward looking statements and as such are subject to a number of risks, including integration of the Orcolite acquisition, lower demand for televisions and computer monitors, further mask price declines, inability to penetrate the lead frame market, foreign currency fluctuations, successful customer part qualifications and the continued effect of the economic 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. in Asia. These and other risks and uncertainties are detailed in the Company's 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, 1997 and Form 10-Q Form 10-Q See 10-Q. to be filed for the quarter ended September 30, 1998. 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. 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. The Company 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. -0-
BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30 September 30
-----------------------------------------------
1998 1997 1998 1997
---------------------------------------------------------------------
Revenues $ 88,584 $ 79,086 $ 253,609 $ 236,470
Cost of
Products Sold 81,642 61,813 232,177 181,356
---------------------------------------------------------------------
Gross Margin 6,942 17,273 21,432 55,114
Selling 4,545 3,042 11,748 8,616
Administrative 1,213 1,006 4,072 3,634
Impairment of
long-lived
assets - - 42,800 -
Acquired
research and
development - - 11,000 -
---------------------------------------------------------------------
Income from
Operations 1,184 13,225 (48,188) 42,864
---------------------------------------------------------------------
Other Income
and (Expense)
Interest expense (3,949 ) (403 ) (9,650) (707)
Interest income 22 45 99 143
Other income
(expense) (399 ) 71 (932) 300
---------------------------------------------------------------------
Earnings before
Income Taxes (3,142 ) 12,938 (58,671) 42,600
Income Taxes (1,173 ) 4,063 (22,429) 13,853
---------------------------------------------------------------------
Net Earnings $ (1,969 ) $ 8,875 $ (36,242) $ 28,747
Net Earnings
Per Share:
Basic $ (0.07 ) $ 0.32 $ (1.34) $ 1.04
Diluted (0.07 ) 0.31 (1.34) 1.01
---------------------------------------------------------------------
Number of
Shares Included
in Per Share
Computation:
Basic 26,989 27,681 26,963 27,518
Diluted 26,989 28,619 26,963 28,524
---------------------------------------------------------------------
BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
September 30 June 30 December 31
------------ ------- -----------
1998 1998 1997
---------------------------------------------------------------------
Assets
Cash and cash
equivalents $ 2,742 $ 2,969 $ 2,383
Trade accounts
receivable, net 42,496 45,077 29,824
Inventories 84,856 95,881 70,111
Deferred income
taxes 11,315 8,724 5,881
Other current
assets 8,815 9,775 13,595
---------------------------------------------------------------------
Total Current
Assets 150,224 162,426 121,794
---------------------------------------------------------------------
Property, plant
and equipment 280,028 271,775 283,070
Less accumulated
depreciation 114,292 110,381 100,688
---------------------------------------------------------------------
Property, plant
and equipment,
net 165,736 161,394 182,382
---------------------------------------------------------------------
Deferred income
taxes 17,085 19,099 1,429
Other assets,
net 76,765 77,114 13,802
---------------------------------------------------------------------
Total Assets $ 409,810 $ 420,033 $ 319,407
=====================================================================
Liabilities and
Stockholders' Equity
---------------------------------------------------------------------
Short-term
borrowings $ 822 $ 979 $ 1,139
Accounts payable 25,566 24,458 25,623
Income taxes payable 226 415 2,830
Accrued expenses
and other current
liabilities 24,332 25,955 17,288
---------------------------------------------------------------------
Total Current
Liabilities 50,946 51,807 46,880
---------------------------------------------------------------------
Long-term debt 209,713 219,164 73,426
Other liabilities 18,559 17,570 17,718
Deferred income
taxes 2,738 3,757 2,631
Stockholders' equity
Common stock 47,662 46,543 62,263
Retained earnings 81,237 83,613 118,693
Cumulative
translation
adjustment 1,047 (1,350 ) (1,217)
Other (2,092 ) (1,071 ) (987)
---------------------------------------------------------------------
Total Stockholders'
Equity 127,854 127,735 178,752
---------------------------------------------------------------------
Total Liabilities
and Stockholders'
Equity $ 409,810 $ 420,033 $ 319,407
=====================================================================
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