Bell Sports Corp. Announces Fiscal 1998 First Quarter Results.SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Oct. 27, 1997--Bell Sports Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BSPT BSPT Bachelor of Science in Physical Therapy BSPT British Standard Taper Pipe Thread BSPT Bachelor of Science in Physics for Teachers )(NASDAQ:BSPTG) Monday announced the results of the fiscal 1998 first quarter ended Sept. 27, 1997. Net income increased to $637,000 (or $0.05 per share) during the fiscal 1998 first quarter from $3,000 (or 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 per share) in the comparable fiscal 1997 period. Fiscal 1997 results included restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $1.4 million mostly offset by investment income being favorably impacted by a $1.3 million recovery, net of related expenses and expected losses on certain remaining securities, from an outside investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and , who previously managed a portion of the company's investment portfolio. 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 the fiscal 1998 first quarter decreased to $43.6 million from $62.1 million in the fiscal 1997 first quarter -- primarily due to the sale of two businesses, Service Cycle/Mongoose and SportRack, during the fourth quarter of fiscal 1997 and first quarter of fiscal 1998, respectively. Gross margins increased to 31% of net sales during the fiscal 1998 first quarter from 28% of net sales in the prior year period. Selling, general and administrative expenses remained consistent at 25% of net sales. 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. increased to $2.4 million and 6% of net sales during the first quarter of fiscal 1998 compared to $2.2 million and 4% of net sales in the prior year period. Terry G. Lee, chairman and chief executive officer commented, "The first quarter results reflect the seventh consecutive quarter of improved normalized operating income. We have reduced the operating cost structure and strengthened our balance sheet. We are executing the strategic priorities we established for our business, and believe we are on track for continued success." Certain matters in this press release are 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. that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These include but are not limited to: seasonality, adverse weather conditions, market acceptance of new products, competitive actions, relationships with major retail customers, retail environment, economic conditions, currency fluctuations and other risks indicated in filings from time-to-time with the Securities and Exchange Commission. Headquartered in San Jose San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif., Bell Sports is a leading manufacturer and marketer of bicycle helmets A bicycle helmet is a helmet intended to be worn while riding a bicycle. They are designed to attenuate impacts to the head of a cyclist in falls while minimizing side effects such as interference with peripheral vision. , bicycle accessories and auto racing helmets. Bell Sports markets its products under the brand names: Bell, Giro giro Noun pl -ros 1. (in some countries) a system of transferring money within a bank or post office, directly from one account into another 2. , Rhode Gear, VistaLite, Blackburn, BSI BSI - British Standards Institute , Bike Star, Copper Canyon The Copper Canyon (Spanish: Barranca del Cobre) is a canyon system in the Sierra Tarahumara in the southwestern part of the state of Chihuahua in Mexico. This canyon system is larger and deeper than the Grand Canyon in the neighboring United States, although the Grand and Cycle Products. -0-
Bell Sports Corp.
Financial Highlights
(unaudited, in thousands, except per share data)
Three Months Ended
Sept. 27, Sept. 28,
1997 1996
RESULTS OF OPERATIONS:
Net sales $43,632 $62,068
Cost of sales 30,155 44,560
Gross profit 13,477 17,508
30.9% 28.2%
Selling, general and
administrative expenses 11,075 15,279
Net operating income 2,402 2,229
Restructuring charges 1,358
Amortization of intangibles 636 862
Investment income (429) (1,792)
Interest expense 1,167 1,796
Income before income taxes 1,028 5
Provision for income taxes 391 2
Net income $637 $3
Net income per share - primary $0.05 $0.00
Weighted average common shares
and equivalents outstanding
- primary 14,075 13,754
Sept. 27, June 28,
1997 1997
Condensed Balance Sheet:
Cash and marketable securities $46,117 $29,008
Accounts receivable, net 41,910 75,915
Inventories 44,546 46,549
Property, plant and equipment, net 20,718 23,738
Goodwill 55,688 56,471
Other assets 33,414 37,073
Total assets $242,453 $268,754
Accounts payable 8,538 11,299
Accrued expenses 19,763 24,207
Debt and capital leases 88,882 109,023
Other liabilities 5,065 5,260
Stockholders' equity 120,205 118,965
Total liabilities and
stockholders' equity $242,453 $268,754
CONTACT: Bell Sports Corp. Sondra L. Lehman, 888/534-9500 Linda K. Bounds, 408/574-3436 |
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