Printer Friendly
The Free Library
19,585,946 articles and books
Member login
User name  
Password 
 
Join us Forgot password?

Bell Sports Corp. Announces Fiscal 2000 First Quarter Results.


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.--(BUSINESS WIRE)--Oct. 26, 1999--

Bell Sports Corp. announced today the results for its fiscal 2000 first quarter ended October 2, 1999. 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
 from ongoing operations for the quarter increased 20% to $46.9 million from $39.1 million in the first quarter of fiscal 1999, (a net 15% increase including all operations).

The increase in sales is primarily attributable to strong U.S. sales in both the specialty retail and mass merchant channels. Gross margins improved to 36.5% from 33.1% in the prior year period. This improvement was led by production efficiencies resulting from the manufacturing consolidations completed in the Company's fourth quarter of fiscal 1999.

Selling, general and administrative expenses remained a constant 27% of net sales for the quarter. First quarter EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become  rose approximately 41% to $5.5 million from $3.9 million in the first quarter of fiscal 1999. Net interest expense, net of interest income, increased to $4.1 million from $1.9 million in the comparable prior year period.

Net loss for the quarter was $104 thousand, compared to a net loss of $7.6 million for the first quarter of fiscal 1999. The prior year period included $6.9 million expenses related to the Company's plan of recapitalization Recapitalization

Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable.

Notes:
Companies often want to diversify their debt-to-equity ratio to improve liquidity.
 and merger with HB Acquisition and the Company's debt tender offer for its 4 1/4% Convertible Subordinated Debentures subordinated debenture

An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before
 due 2000.

Mary J. George, Chief Executive Officer commented, "We are very excited about our positive sales and operating results, and believe these results are the beginning of a strong fiscal 2000 for Bell. The robust sales in the US specialty retail and mass channels reflects the market's enthusiasm for our new products, the strength of our brands, and the overall depth and quality of our product lines.

"Our entire company continues to be focused on investing in and creating superior products and meeting our customers' expectations. I am also proud of all the efforts that our employees have made to capitalize on Cap´i`tal`ize on`   

v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>.
 the manufacturing consolidation that we completed in the fourth quarter of fiscal 1999. A gross margin improvement of nearly three and a half points is tremendous.

"Finally, we completed the sale of Bell's European manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations.  in this quarter. We are now operating only one manufacturing facility worldwide, at a capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens.  of 90%, which should continue to bring us greater operating efficiencies."

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: expected sales, profitability, cash flow, 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.

The Company is the 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.  worldwide and a leading supplier of a broad line of bicycle accessories throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe, Australia, and Asia. The company also markets in-line skating skating: see ice skating; ice dancing; roller skating.
skating

Sport in which bladelike runners or sets of wheels attached to shoes are used for gliding on ice or on surfaces other than ice.
, snowboarding snowboarding: see under skiing.
snowboarding

Sport of sliding downhill over snow on a snowboard, a wide ski ridden in a surfing position. Derived from surfing and influenced also by skateboarding as well as skiing, snowboarding began to burgeon
, snow skiing and water sport helmets.

The Company markets its helmets under the widely recognized Bell, Bell Pro and 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.
 brand names, and its bicycle accessories under such leading brands as Bell, Blackburn, Rhode Gear, VistaLite, 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  Cycling and Spoke-Hedz. -0-
                           Bell Sports Corp.
                         Financial Highlights
                       (unaudited; in thousands)

Results of Operations                   Three Months Ended
                                  October 2,         September 26,
                                    1999                 1998

Net sales                          $46,850              $40,916
Cost of sales                       29,736               27,372

Gross Profit                        17,114               13,544

  Selling, general and
   administrative expenses          12,656               11,057
  Foreign exchange (gain) loss          15                   28
  Amortization of goodwill and
   intangible assets                   527                  562
Operating expenses                   3,916                1,897

Other costs of operations
  Transaction costs                      0                6,880
Total other costs of operations          0                6,880

Income (loss) from operations        3,916               (4,983)

Net investment income                  106                  601
Interest expense                     4,198                2,538

Net income (loss) before
 provision for (benefit from)
 income taxes                         (176)              (6,920)

Provision for (benefit from)
 income taxes                          (72)                 640

Net income (loss)                     (104)              (7,561)

EBITDA                              $5,543               $3,889


Condensed Balance Sheet
                                    July 3,             October 2,
                                     1999                 1999

Cash and marketable securities      $8,875               $7,981
Accounts receivable, net            58,634               50,047
Inventories                         43,664               36,911
Property, plant and equipment, net  16,162               13,201
Goodwill                            52,430               51,944
Other assets                        39,169               40,023
  Total assets                    $218,934             $200,107
Accounts payable                    $9,250               $8,730
Accrued expenses                    34,262               24,716
Debt and capital leases            159,606              149,581
Other liabilities                    9,351                8,249
Stockholders' equity                 6,465                8,831
  Total liabilities and
   stockholders' equity           $218,934             $200,107
COPYRIGHT 1999 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Geographic Code:1USA
Date:Oct 27, 1999
Words:783
Previous Article:ABIOMED Announces Completion of Human Fit Optimization of Its Implantable Replacement Heart.
Next Article:Wellman Reports Consistent Results From Operations.
Topics:



Related Articles
Bell Sports Corp. Announces Fiscal 1998 First Quarter Results.
Bell Sports Corp. Announces Significantly Improved Fiscal 1998 Third Quarter Net Income.
Bell Sports Enters Into an Agreement for High Yield Financing.
Bell Sports Corp. Announces Fiscal 1999 First Quarter Results.
Bell Sports Corp. Announces Fiscal 1999 Second Quarter Results.
Bell Sports Corp. Announces Fiscal 1999 Third Quarter Results.
Bell Sports Corp. Announces Fiscal 1999 and Fourth Quarter Results.
Bell Sports Corp. Announces Fiscal 2000 Second Quarter Results.
Bell Sports Corp. Announces Fiscal 2000 Third Quarter Results.

Terms of use | Copyright © 2012 Farlex, Inc. | Feedback | For webmasters | Submit articles