Bell Sports Corp. announces second quarter fiscal 1997 results.SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Jan. 27, 1997--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 ;BSPTG) Monday 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 second quarter ended Dec. 28, 1996 increased 1% to $56.6 million from $56.2 million in the comparable fiscal 1996 period. Results of operations for the three-month period ended Dec. 28, 1996 were a net loss of $475,000 or $0.03 per share as compared to a net loss of $7.7 million or $0.56 per share reported in the three-month period ended Dec. 30, 1995. Second quarter results included pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $108,000 in fiscal 1997 and $670,000 in fiscal 1996. Additionally, the fiscal 1996 second quarter was negatively impacted by a $7.1 million charge related to 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 Dec. 28, 1996 increased to 28.3% of net sales compared to 27.7% of net sales (before the inventory write-up) in the previous year. 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. decreased to 25.9% of net sales during the fiscal 1997 second quarter from 28.1% of net sales 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 2.4% of net sales or $1.4 million for the three-month period ended Dec. 28, 1996 compared to a loss of $187,000 in the comparable prior year period. Net sales for the six-month period ended Dec. 28, 1996 increased 4% to $118.7 million from $113.9 million in the previous year. Year-to-date net income increased to $351,000 or $0.03 per share, before pretax restructuring charges of $1.5 million, from a net loss of $1.2 million or $0.08 per share, in the previous year before pretax restructuring charges of $1.1 million and the effect of the $13.1 million inventory write-up. Net loss for the year-to-date periods, including such charges, totaled $472,000 or $0.03 per share for the six-month fiscal 1997 period compared to a net loss of $13.1 million, or $0.94 per share in fiscal 1996 period. Terry G. Lee, chairman and C.E.O. stated, "Second quarter results reflect our progress on reducing selling, general and administrative expenses, and on increasing our consolidated gross margins. "Unfortunately, these positive improvements were diminished di·min·ish v. di·min·ished, di·min·ish·ing, di·min·ish·es v.tr. 1. a. To make smaller or less or to cause to appear so. b. by lower sales demand in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . We will continue our efforts to trim selling, general and administrative expenses and to increase gross margins in the third quarter. However, we remain cautious about the soft sales environment experienced in the second quarter." Lee continued, "On an international basis, our European and Canadian businesses Canadian Business is the longest-publishing business magazine in Canada. It was founded in 1928 as The Commerce of the Nation, the organ of the Canadian Chamber of Commerce. The magazine was renamed Canadian Business in 1933. reported a combined 9% increase for the quarter in net sales over the prior year. In addition, we began making our first shipments in November from our new Sydney, Australia operation. We will continue to look to the international markets for future growth." Certain matters discussed 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: 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. Headquartered 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. 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 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, 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 Cycle Products. -0-
Bell Sports Corp.
Financial Highlights
(unaudited; in thousands; except per share data)
Six Months Ended Three Months Ended
Dec. 28, Dec. 30, Dec. 28, Dec. 30,
RESULTS OF OPERATIONS: 1996 1995 1996 1995
Net sales $118,691 $113,890 $56,623 $56,215
Cost of sales 85,177 82,222 40,617 40,631
Inventory write-up 0 13,091 0 7,142
Gross profit 33,514 18,577 16,006 8,442
28.2% 17.6% 28.2% 17.6%
Selling, general and
administrative
expenses 29,926 30,360 14,647 15,771
Operating income
(loss) 3,588 (11,783) 1,359 (7,329)
Restructuring Charges 1,466 1,057 108 670
Amortization of
intangibles 1,729 1,181 867 594
Investment income (2,292) (1,962) (500) (930)
Interest expense 3,526 4,324 1,730 2,007
Loss before income
taxes (841) (16,383) (846) (9,670)
Benefit from
income taxes (369) (3,289) (371) (1,946)
Net loss $(472) $(13,094) $(475) $(7,724)
Net loss per share
- primary $(0.03) $(0.94) $(0.03) $(0.56)
Weighted average
common shares and
equivalents outstanding
- primary 13,759 13,944 13,764 13,757
Dec. 28, June 29,
Condensed Balance Sheet: 1996 1996
Cash and
marketable securities $28,424 $31,136
Accounts receivable,
net 67,190 75,651
Inventories 71,727 59,413
Property, plant
and equipment, net 26,044 24,722
Goodwill 70,202 71,245
Other assets 38,519 36,468
Total assets $302,106 $298,635
Accounts payable $9,742 $11,797
Accrued expenses 17,160 21,144
Debt and
capital leases 134,743 125,571
Other liabilities 4,177 4,082
Stockholders' equity 136,284 136,041
Total liabilities
and stockholders' equity $302,106 $298,635
CONTACT: Bell Sports Corp., Scottsdale Howard Kosick, 602/951-0033 ext. 231 Sondra Lehman, 602/951-0033 ext. 235 |
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