Bell Sports Corp. Announces Fiscal 1998 Second Quarter Results.SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Jan. 20, 1998--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) announced today the results of the fiscal 1998 second quarter ended Dec. 27, 1997. Net income increased to $322,000 or $0.02 per share for the three months ended Dec. 27, 1997 from a net loss of $668,000 or $0.05 per share for the three months ended December 28, 1996 -- when excluding the results of the Service Cycle/Mongoose business sold in April 1997, the results of the SportRack business sold in July 1997 and 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. . The actual net loss for the three month period ending Dec. 28, 1996 was $475,000 or $0.03 per share. 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 increased 10% to $42.6 million for the three month period ending Dec. 27, 1997 from $38.8 million for the comparable period ending Dec. 28, 1996 excluding the results of the Service Cycle/Mongoose and SportRack businesses sold. Gross margins remained consistent at 31% of net sales for the fiscal 1998 second quarter and the fiscal 1997 second quarter when excluding the results of businesses sold from the fiscal 1997 three month period. Selling, general and administrative expenses decreased four percentage points to 27% of net sales in the quarter ended Dec. 27, 1997 from 31% of net sales in the quarter ended Dec. 28, 1996 when excluding the results of businesses sold from the fiscal 1997 second quarter. Year-to-date net income increased to $959,000 or $0.07 per share for the period ended Dec. 27, 1997 from $455,000 or $0.03 per share in the comparable fiscal 1997 period excluding the results of businesses sold and restructuring charges. Net sales increased to $86.2 million for the six month period ended Dec. 27, 1997 from $85.4 million for the comparable fiscal 1997 period, excluding the results of the businesses sold. Gross margins remained consistent at 31% of net sales, with the prior year period adjusted for the results of the businesses sold. Selling, general and administrative expenses decreased to 26% of net sales during the six month period ended Dec. 27, 1997 from 28% of net sales during the comparable prior year period excluding the results of the businesses sold. 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 5% of net sales during the company's fiscal 1998 second quarter up from 3% of net sales in the comparable fiscal 1997 period, presented without the results of the businesses sold. During the fiscal 1998 second quarter, the company recorded an adjustment on disposal of product line, which increased income $1.3 million before income taxes, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Service Cycle/Mongoose business accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying . In April 1997, the company disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of the Service Cycle/Mongoose business but retained the related accounts receivables. At the date of the disposition, the company recorded a reserve of approximately $2.5 million for potential uncollectible receivables relating to the Service Cycle/Mongoose business. At Dec. 27, 1997, the company had collected a majority of the receivables and had utilized only $1.2 million of the reserve. Accordingly, the company reversed $1.3 million into income from the account receivable account receivable Any amount owed to a business as the result of a purchase of goods or services from it on a credit basis. Although the firm making the sale receives no written promise of payment, it enters the amount due as a current asset in its books. reserves during its fiscal 1998 second quarter. Offsetting this adjustment during the fiscal 1998 second quarter, the company formed and approved a plan to restructure its European operations. Pursuant to the plan, the Paris, France sales and marketing office was closed, resulting in the European cost structure being lowered by an estimated $1.0 million annually as well as providing more streamlined operations. The company recorded a one-time charge of $1.2 million related to this plan. Terry G. Lee, chairman and chief executive officer commented, "The second quarter results represent our eighth consecutive quarter of improved results. Operating income for the fiscal 1998 second quarter improved 300 basis points, to 4% of net sales -- progress which illustrates our ability to continue to successfully execute our strategic plans." -0- 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: possible increases in income, growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. and gross margins, uncertain 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. -0- 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 and offers snowboard snow·board n. A board resembling a small surfboard and equipped with bindings, used for descending snow-covered slopes on one's feet but without ski poles. intr.v. and ski helmets The ski helmet is an essential protection measure in skiing that is built and designed for multiple impacts. Similar to snowboard helmets, ski helmets are also insulated for cold weather. . 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)
Six Months Ended Three Months Ended
Dec. 27, Dec.28, Dec. 27, Dec. 28,
1997 1996 1997 1996
Results Of Operations:
Net sales $ 86,222 $118,691 $ 42,590 $ 56,623
Cost of sales 59,459 85,177 29,304 40,617
Gross profit 26,763 33,514 13,286 16,006
31.0% 28.2% 31.2% 28.2%
Selling, general and
administrative expenses 22,641 29,926 11,566 14,647
Net operating income 4,122 3,588 1,720 1,359
Restructuring charges 1,228 1,466 1,228 108
Disposal of product line
adjustment (1,300) -- (1,300) --
Amortization of intangibles 1,202 1,729 566 867
Investment (income) (905) (2,292) (476) (500)
Interest expense 2,350 3,526 1,183 1,730
Income (loss) before
income taxes 1,547 (841) 519 (846)
Provision (benefit) for
income taxes 588 (369) 197 (371)
Net income (loss) $ 959 $ (472) $ 322 $ (475)
Net income (loss) per
share - basic $ 0.07 $ (0.03) $ 0.02 $ (0.03)
Weighted average common
shares and equivalents
outstanding-basic 13,810 13,701 13,851 13,701
Dec. 27, June 28,
Condensed Balance Sheet: 1997 1997
Cash and marketable securities $ 36,992 $ 29,008
Accounts receivable, net 47,750 75,915
Inventories 49,143 46,549
Property, plant and equipment, net 20,426 23,738
Goodwill 55,220 56,471
Other assets 32,947 37,073
Total assets $ 242,478 $ 268,754
Accounts payable $ 9,083 $ 11,299
Accrued expenses 18,766 24,207
Debt and capital leases 89,689 109,023
Other liabilities 4,504 5,260
Stockholders' equity 120,436 118,965
Total liabilities and
stockholders' equity $ 242,478 $ 268,754
CONTACT: Bell Sports Corp. Sondra L. Lehman, 888/534-9500 (Director of Investor Relations Investor relations The process by which the corporation communicates with its investors. ) or Linda K. Bounds, 408/574-3436 (Chief Financial Officer) |
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