Bell Sports Corp. announces first-quarter fiscal 1997 earnings.SCOTTSDALE, AZ--(BUSINESS WIRE)--Oct. 28, 1996--Bell Sports Corp. (Nasdaq: BSPT BSPT Bachelor of Science in Physical Therapy BSPT British Standard Taper Pipe Thread BSPT Bachelor of Science in Physics for Teachers and BSPTG) today announced 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 first quarter ended Sept. 28, 1996, increased 8% to $62.1 million from $57.7 million in the comparable fiscal 1996 period. Net income for the fiscal first quarter of 1997 was $3,000 or break-even on a per-share basis. This compares favorably with a net loss of $5.4 million or 38 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. in the fiscal 1996 first quarter. First-quarter results included pretax consolidation charges of $1.4 million and $400,000 in fiscal 1997 and fiscal 1996, respectively. In addition, the fiscal 1996 gross margin and pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. were negatively impacted by a $5.9 million charge for the inventory write-up arising from the acquisition of SportRack in May 1995 and the merger with American Recreation Company Holdings Inc. in July 1995. Gross margins for the three-month period ended Sept. 28, 1996, were 28.2% of net sales compared to 27.9% in the previous year (before the inventory write-up). 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. declined to 24.6% of net sales for the fiscal first quarter of fiscal 1997 compared to 25.3% in the comparable fiscal 1996 period. 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 3.6% of net sales or $2.2 million for the three months ended Sept. 28, 1996, from 2.6% of net sales or $1.5 million (before the inventory write-up) during the fiscal 1996 first quarter. Net investment income was favorably impacted by a $1.3 million recovery, net of related expenses and expected losses on certain remaining securities, from an outside investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and , who previously managed a portion of the company's investment portfolio. Terry G. Lee, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "We are pleased with the performance of our business this quarter in which some segments are beginning to show significant growth. Our U.S. specialty retail helmet sales increased 50% over the prior year, our strongest helmet performance in recent quarters. "The 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. bicycle line reported an 18% sales increase over the prior year. Overall bicycle accessories were flat for the quarter and U.S. mass merchant bicycle helmet 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. sales declined by 20% from the prior year due to one customer adjusting inventory levels; however, we are confident that our market share in this channel remained constant." Lee continued, "The first-quarter results reinforce our belief that the actions taken in fiscal 1996 to restore operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before are beginning to show the desired results." In separate news, the company reported the opening of a sales, marketing and distribution facility in Australia to service the sports-oriented Australian market and the developing Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. markets. Certain matters discussed in this news release are forward-looking statements 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: 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. With headquarters in Scottsdale, Bell Sports is a leading manufacturer and marketer of bicycle helmets and accessories as well as bicycles and auto racing helmets. 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. , Mongoose, Rhode Gear, VistaLite, Blackburn, BSI BSI - British Standards Institute , Bike Star, SportRack, Advent, Copper Canyon and Cycle Products. -0-
Bell Sports Corp.
Financial Highlights
(unaudited; in thousands; except per share data)
Three Months Ended
Sept. 28, Sept. 30,
1996 1995
Results of Operations:
Net sales $ 62,068 $ 57,675
Cost of sales 44,560 41,591
Inventory write-up 0 5,949
------- -------
Gross profit 17,508 10,135
28.2% 17.6%
Selling, general and
administrative expenses 15,279 14,589
Net operating income (loss) 2,229 (4,454)
Consolidation costs 1,358 387
Amortization of intangibles 862 587
Investment income (1,792) (1,031)
Interest expense 1,796 2,318
Income (loss) before income taxes 5 (6,715)
Provision (benefit) for income taxes 2 (1,343)
Net income (loss) $ 3 $ (5,372)
Net income (loss) per share - primary $ 0.00 $ (0.38)
Weighted average common shares
and equivalents outstanding - primary 13,754 14,131
Sept. 28, June 29,
1996 1996
Condensed Balance Sheet:
Cash and marketable securities $ 30,069 $ 31,136
Accounts receivable, net 60,428 75,651
Inventories 61,321 59,413
Property, plant and equipment, net 25,492 24,722
Goodwill 70,704 71,245
Other assets 37,946 36,468
Total assets $285,960 $298,635
Accounts payable $ 10,954 $ 11,797
Accrued expenses 17,123 21,144
Debt and capital leases 117,429 125,571
Other liabilities 3,952 4,082
Stockholders' equity 136,502 136,041
Total liabilities and stockholders'
equity $285,960 $298,635
CONTACT: Sondra Lehman, IR, 602/951-0033, ext. 235 Howard Kosick, CFO See Chief Financial Officer. , 602/951-0033, ext. 231 |
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