Bell Sports Corp. Announces Fiscal 2000 Second Quarter Results.Business Editors 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)--Jan. 19, 2000 Bell Sports Corp. Wednesday announced the results for its fiscal 2000 second quarter ended Jan. 1, 2000. 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 continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter increased 20 percent to $51.0 million from $42.4 million in the second quarter of fiscal 1999. Second 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 66 percent to $6.0 million from $3.6 million in the second quarter of fiscal 1999. The increase in sales is primarily attributable to strong U.S. and Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. sales in both the mass and specialty retail channels. Gross margins improved to 33.1 percent from 32.2 percent in the prior year period. This improvement was led by lower costs on improved sourcing relationships, combined with improved manufacturing efficiencies generated from the manufacturing consolidations completed in the company's fourth quarter of fiscal 1999. Selling, general and administrative expenses improved to 23 percent of net sales from 27 percent in the prior year period. Interest expense, net of investment income, increased to $4.2 million from $4.0 million in the comparable prior year period due to slightly lower investment income. Net income for the quarter was $187,000, compared to a net loss of $2.8 million for the second quarter of fiscal 1999. The prior year period included $2.5 million of 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. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. net sales from continuing operations increased 20 percent to $97.8 million from $81.5 million for the first six months of 1999. Year-to-date EBITDA improved 54 percent to $11.6 million from $7.5 million in the prior period. Gross margins improved to 34.7 percent from 32.7 percent in the prior year period. Selling, general and administrative expenses decreased to 25 percent of net sales, from 27 percent of net sales in the first six months of 1999. Interest expense of $8.2 million increased over the prior year of $5.9 million due to higher interest expense in the first quarter related to the company's issuance of $125.0 million of new debt in August 1998, offset by the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of $62.5 million aggregate principal amount of its Debentures due November 2000 during the first quarter of fiscal 1999. Net income year-to-date was $82,000 versus a loss of $10.4 million for the prior year period. The prior year period included $9.1 million of expenses related to the company's plan of recapitalization and merger with HB Acquisition. Mary J. George, chief executive officer commented, "We are extremely pleased with the continued strong sales and operating results, and believe we are on the way to a very successful fiscal 2000. Sales have been strong across North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. mass and specialty retail channels, reflecting the strength of our brands and products. "We have invested several million dollars in product development and marketing initiatives to maximize our market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" . In addition, we continue 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 consolidations and enhanced sourcing relationships, combined with increased focus on supply chain management, which have provided gross margin improvements of two points. "The entire company is committed to focusing on providing superior products and services to our customers." 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 through out 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 and snow skiing 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.
BELL SPORTS CORP.
FINANCIAL HIGHLIGHTS
(unaudited; in thousands)
Results of Operations Three Months Ended Six Months Ended
Dec. 26, Jan. 1, Dec. 26, Jan. 1,
1998 2000 1998 2000
---- ---- ---- ----
Net sales $ 45,021 $ 50,972 $ 85,939 $ 97,822
Cost of sales 30,502 34,121 57,876 63,857
Gross Profit 14,519 16,851 28,063 33,965
Selling, general
and administrative
expenses 11,943 11,832 23,299 24,488
Foreign exchange
(gain) loss 330 (3) 358 12
Amortization of
goodwill and
intangible assets 499 552 1,061 1,079
Operating income 1,747 4,470 3,345 8,386
Other costs of operations
Transaction costs 2,505 0 9,086 0
Total other costs of
operations 2,505 0 9,086 0
Income (loss) from
operations (758) 4,470 (5,741) 8,386
Net investment income (209) (69) (810) (175)
Interest expense 4,204 4,223 6,742 8,421
Net income (loss)
before provision for
(benefit from) income
taxes (4,753) 316 (11,673) 140
Provision for (benefit
from) income taxes (1,949) 129 (1,309) 58
Net income (loss) (2,804) 187 (10,364) 82
EBITDA $ 3,638 $ 6,029 $ 7,527 $ 11,571
BELL SPORTS CORP.
FINANCIAL HIGHLIGHTS
(unaudited; in thousands)
Condensed Balance Sheet
July 3, Jan. 1,
1999 2000
---- ----
Cash and marketable securities $8,875 $6,559
Accounts receivable, net 58,634 59,830
Inventories 43,664 47,928
Property, plant and equipment, net 16,162 12,897
Goodwill 52,429 52,028
Other assets 39,170 40,932
Total assets $218,934 $220,174
Accounts payable $9,249 $14,763
Accrued expenses 34,262 22,148
Debt and capital leases 159,606 166,999
Other liabilities 9,352 8,244
Stockholders' equity 6,465 8,020
Total liabilities and stockholders'
equity $218,934 $220,174
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