Bell Sports Corp. Announces Fiscal 2000 Third 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)--April 24, 2000 Bell Sports Corp. Monday Monday: see week. announced the results for its fiscal 2000 third quarter ended April 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 33% to $68.9 million from $51.7 million in the third quarter of fiscal 1999. Third 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 80% to $12.9 million from $7.2 million in the third quarter of fiscal 1999. The increase in sales is primarily attributable to strong North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. sales in the mass and specialty retail channels. Gross margins improved to 35.4% from 32.1% in the prior year period. This improvement was driven by the company's ongoing efforts to enhance and streamline its supply chain. Selling, general and administrative expenses improved to 18% of net sales from 21% in the prior year period. Interest expense, net of investment income, increased to $4.6 million from $4.3 million in the comparable prior year period. Net income for the quarter was $4.0 million, compared to net income of $188,000 for the third quarter of fiscal 1999. 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 25% to $166.7 million from $133.2 million for the first nine months of 1999. Year-to-date EBITDA improved 66% to $24.5 million from $14.7 million in the prior period. Gross margins improved to 35.0% from 32.4% in the prior year period. Selling, general and administrative expenses decreased to 22% of net sales, from 25% of net sales in the first nine months of 1999. Interest expense of $12.8 million increased over the prior year of $10.2 million principally due 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 $4.1 million versus a loss of $10.2 million for the prior year period. The prior year period included $8.2 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. Mary J. George, chief executive officer, commented, "As we have reiterated in past quarters, we have seen a substantial improvement in operating results due to a significantly lower cost structure in fiscal 2000. These supply chain initiatives have enabled us to realize solid net sales growth through focusing our efforts on sales, marketing, distribution and product development. "We are very pleased with the continued strong sales demand from our customer base. We look forward to continued strong sales and operating momentum." 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 bicycle, light, two-wheeled vehicle driven by pedals. The name velocipede is often given to early forms of the bicycle and to its predecessor, the dandy horse, a two-wheeled vehicle moved by the thrust of the rider's feet upon the ground. 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 In-line Used in the context of general equities. (1) An order or market in a specific security within the inside market; 2) any announcement (earnings) that adheres closely to Wall Street analysts' expectations. 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 and Spoke-Hedz.
Bell Sports Corp.
Financial Highlights
(unaudited; in thousands)
Results of
Operations Three Months Ended Nine Months Ended
March 27, April 1, March 27, April 1,
1999 2000 1999 2000
Net sales $ 54,306 $ 68,883 $ 140,245 $ 166,705
Cost of sales 36,873 44,441 94,749 108,298
Gross profit 17,433 24,442 45,496 58,407
Selling, general and
administrative
expenses 11,631 12,613 34,931 37,101
Foreign exchange
(gain) loss (34) (69) 1,905 (57)
Amortization of
goodwill and
intangible
assets 528 530 1,589 1,609
Operating
income 5,308 11,368 7,071 19,754
Other costs of
operations
Transaction
costs 703 0 8,207 0
Total other
costs of
operations 703 0 8,207 0
Income
(loss) from
operations 4,605 11,368 (1,136) 19,754
Net
investment
income (126) (83) (936) (258)
Interest
expense 4,411 4,644 11,153 13,065
Net income
(loss) before
provision for
(benefit from)
income taxes 320 6,807 (11,353) 6,947
Provision for
(benefit from)
income taxes 132 2,791 (1,177) 2,848
Net income
(loss) 188 4,016 (10,176) 4,099
EBITDA $ 7,179 $ 12,889 $ 14,706 $ 24,463
Bell Sports Corp.
Financial Highlights
(unaudited; in thousands)
Condensed Balance Sheet
July 3, April 1,
1999 2000
Cash and marketable securities $ 8,875 $ 14,447
Accounts receivable, net 58,634 83,149
Inventories 43,664 51,275
Property, plant and equipment, net 16,162 13,163
Goodwill 52,429 51,477
Other assets 39,170 38,633
Total assets $218,934 $252,144
Accounts payable $ 9,249 $ 15,388
Accrued expenses 34,262 27,479
Debt and capital leases 159,606 196,448
Other liabilities 9,352 1,071
Stockholders' equity 6,465 11,758
Total liabilities
and stockholders' equity $218,934 $252,144
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