Bell Sports Corp. announces 1996 fiscal year and fourth quarter improved results.SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Aug. 14, 1996--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 and BSPTG) Wednesday announced improved results for the fiscal 1996 fourth quarter and for the 1996 fiscal year. Normalized net income for the fiscal 1996 fourth quarter totaled $679,000 or $0.05 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , before one-time charges and the related tax effects, compared to a net loss of $2.6 million or $0.18 cents per share, for the fiscal 1995 fourth quarter presented before one-time charges on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis (reflecting the effects of the American Recreation acquisition which was consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. in July 1995). Net income for the fiscal 1996 fourth quarter was $7,000, including one-time charges and the effect of a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. income tax benefit compared to a net loss of $7.5 million or $0.53 cents per share during the comparable prior year period presented on a pro forma basis and including consolidation charges. 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 fourth quarter ended June 29, 1996 increased 6 percent to $81.0 million from $76.3 million in the comparable fiscal 1995 period presented on a pro forma basis. The increase was attributable to the inclusion of sales for 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. (acquired January 1996) and SportRack (acquired May 1995) which were not included in the previous year. Gross margins increased to 27.4 percent of net sales for the three months ended June 29, 1996 from 20.5 percent of net sales for the three month period ended July 1, 1996 presented on a pro forma basis before one-time charges. Selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. remained constant at 24 percent of net sales for the three-month period ended June 29, 1996 and the three-month period ended July 1, 1995, stated on a pro forma basis. Normalized net income for the 1996 fiscal year totaled $119,000 or $0.01 cent per share, before one-time charges and the effect of the inventory write-up Write-Up An increase made to the book value of an asset because it is undervalued compared to market values. Notes: A write-up will increase a company's accounting book value without any expenditures. from the acquisition of Giro Sport Design and the merger with American Recreation. This compares to a net loss of $2.7 million or $0.19 cents per share, in the prior year presented before one-time charges on a pro forma basis. Net loss for the 1996 fiscal year increased to $12.4 million or $0.90 cents per share, when including consolidation costs of $5.9 million and the effect of the $14.1 million inventory write-up, from a loss of $7.6 million or $0.53 cents per share, for the 1995 fiscal year presented on a pro forma basis. Net sales for the twelve-month period ended June 29, 1996 increased 4 percent to $262.3 million from $253.3 million in the comparable fiscal 1995 period presented on a pro forma basis due to the inclusion of Giro and SportRack sales which were not included in the previous year. Gross margins for fiscal 1996 increased to 28.5 percent of net sales, before the effect of the inventory write-up, compared to 24.6 percent of net sales for the fiscal 1995 year presented on a pro forma basis. Selling, general and administrative costs for the twelve-month period ended June 29, 1996 were 25.5 percent of net sales, compared to 24.1 percent of net sales in the prior year period presented on a pro forma basis. Selling, general and administrative expenses increased primarily due to the inclusion of Giro and SportRack costs which were not included in fiscal 1995, as well as higher advertising spending related to introduction of the Bell Helmet helmet Public health A personal protective device of hardened plastic worn on the head to ↓ severity of injuries in the event of an accident. See Pro cap helmet. brand into the mass merchant trade channel. Terry G. Lee, chairman and chief executive officer, commented, "Fiscal 1996 will be viewed as an important milestone in the company's history in the years to come. Over the course of the year, we were able to complete the foundation building objectives which led to the creation of a larger, more diversified diversified (di·verˑ·s Bell Sports Corp. "I am confident that the effects of the strategic actions we took, will become more evident in fiscal 1997 and 1998. We have entered fiscal 1997 with the right strategic and operational focus and a more streamlined, cost effective operating structure." Separately, the company announced that it has amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. its Revolving Credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. Facility to increase the Canadian portion of the credit line to $35,000,000 and to modify certain covenants. In connection with the amendment, the company has granted to the Facility's Bank Group a security interest in its U.S. accounts receivables 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 and inventories. The security interest is subject to automatic release by the Bank Group upon the achievement of certain financial ratios after Sept. 1, 1997. With headquarters in Scottsdale, 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. , accessories, bicycles and auto racing helmets. Bell Sports markets its products under the brand names: Bell, Giro, Mongoose mongoose, name for a large number of small, carnivorous, terrestrial Old World mammals of the civet family. They are found in S Asia and in Africa, with one species extending into S Spain. , Rhode Gear, VistaLite, Blackburn, BSI BSI - British Standards Institute , Bike Star, SportRack, Advent, Cycle Products, 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 Bike Xtras. -0-
Bell Sports Corp.
Financial Highlights
(Unaudited)
Twelve Months Ended Three Months Ended
Pro Forma(a) Pro Forma(a)
06/29/96 07/01/95 07/01/95 06/29/96 07/01/95 07/01/95
RESULTS OF OPERATIONS: Net sales $262,340 $102,990 $253,251 $81,009 $28,803 $76,306 Cost of sales 187,514 74,407 190,948 58,783 23,774 63,088 Inventory write-up 14,107 0 Gross profit 60,719 28,583 62,303 22,226 5,029 13,218 Selling, general and administrative expenses 66,826 30,948 61,125 19,398 9,253 18,099 Consolidation costs 5,850 2,123 4,618 3,956 2,123 4,618 Amortization of intangibles 2,854 954 2,266 939 233 548 Investment income (2,877) (4,740) (4,427) (458) (1,214) (1,135) Interest expense 8,691 4,633 9,934 2,055 1,182 2,887 Income (loss) before income taxes (20,625) (5,335) (11,213) (3,664) (6,548) (11,799) Provision (benefit) for income taxes (8,250) (1,892) (3,589) (3,671) (2,346) (4,291) Net income (loss) ($12,375) ($3,443) ($7,624) $7 ($4,202) ($7,508) Net Income (loss) per share - primary ($0.90) ($0.42) ($0.53) $0.00 ($0.51) ($0.53) Weighted average common shares and equivalents outstanding - primary 13,740 8,178 14,284 13,717 8,173 14,286
Pro Forma(a)
06/29/96 07/01/95 07/01/95
Condensed Balance Sheet:
Cash and marketable
securities $31,136 $108,973 102,720
Accounts receivable, net 75,651 22,262 60,075
Inventories 59,413 15,184 68,277
Property, plant and equipment,
net 24,722 16,292 25,313
Goodwill 71,245 11,539 64,316
Other assets 36,468 12,184 29,134
Total assets 298,635 186,434 349,835
Accounts payable 11,797 8,604 10,028 Accrued expenses 21,144 8,243 28,241 Debt and capital leases 125,570 92,934 155,601 Other liabilities 4,083 837 2,937 Stockholders' equity 136,041 75,816 153,028 Total liabilities and stockholders' equity $298,635 $186,434 $349,835 (a) Presentation reflects the AMRE Merger as if it had occurred at the beginning of fiscal 1995. CONTACT: Bell Sports Corp., Scottsdale Howard Kosick, 602/951-0033 ext. 231 Sondra Lehman, 602/951-0033 ext. 235 |
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