Benjamin Moore & Co. Posts Second Quarter and Six Months 2000 Results.Business Editors MONTVALE Montvale may mean:
Benjamin Moore This article is about the American bishop. For the British biochemist, see Benjamin Moore (biochemist). Benjamin Moore (1748 – 1816) was the second bishop of the Episcopal Diocese of New York. & Co. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:MBEN), a leading coatings manufacturer and retailer, today reported record 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 quarter and six months ended June June: see month. 30, 2000 of $231.8 million and $414.7 million, respectively, an increase of 12.5 percent and 10.1 percent, respectively, over the comparable 1999 periods. The growth in the second quarter was due to increased U.S Coatings Manufacturing and U.S. Retail Segment net sales. The increase in the six months net sales is primarily due to growth within the U.S. Retail Segment where the Company now operates 89 owned-retail stores as compared to 45 at June 30, 1999. Excluding the impact of acquisitions and divestitures, net sales for the second quarter and six months ended June 30, 2000 increased 5.2 percent and 3.6 percent, respectively, over the comparable 1999 periods. Excluding the restructuring charge 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 $38.6 million recorded in the first quarter of 2000, net income for the six month period ended June 30, 2000 was $42.1 million compared to $40 million in 1999, an increase of 5.3 percent. For the second quarter, net income was $28.4 million, an increase of 2.9 percent as compared to 1999. Including the impact of the restructuring charge, the Company reported net income of $19.2 million for the six months ended June 30, 2000. Excluding the restructuring charge, basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net income per share for the six month period ended June 30, 2000 was $1.58, an increase of $.07 and $.08, respectively, as compared to 1999, or 4.6 percent and 5.3 percent, respectively. Basic and diluted net income per share for the second quarter increased 2.9 percent and 3.9 percent, respectively, as compared to last year. Including the impact of the restructuring charge, basic and diluted net income per share for the six month period was $.72. Gross margin decreased in the second quarter from 47.0 percent in 1999 to 46.4 percent in 2000 primarily due to increased temporary warehousing and costs related to the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , as well as increased U.S. Retail sales which carry a lower gross margin than the Manufacturing Segments. Such costs related to the restructuring were planned and expected to occur in the second quarter and are expected to be offset in the second half of 2000. Gross margin for the six-month period ended June 30, 2000 was essentially flat as compared to last year. Selling, General and Administrative expenses ("SG&A") increased in the three months and six months ended June 30, 2000 as compared to last year by $9.5 million and $14.1 million, respectively. SG&A as a percentage of sales was 26.3 percent in the second quarter 2000 as compared to 24.9 percent in the second quarter 1999 and 28.2 percent in the first six months of 2000 as compared to 27.3 percent in the same period in 1999. The increase in SG&A and the percentage to sales is partially due to retail acquisitions over the preceding twelve months, which typically have a higher SG&A ratio as compared to the Manufacturing Segments. The increased SG&A also resulted from additional sales and marketing spending attributed to the Color Preview To see ahead of time. Page layout and word processing programs often have a preview function that lets you see how all the pages will appear before they are printed. In the days of character-based interfaces, a preview was absolutely necessary to see how different fonts would look or how (TM) System introduced in the U.S. as well as costs related to the restructuring that was announced in the first quarter of 2000. This press release contains certain 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. . These forward-looking statements are based upon management's expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company, that could cause actual results to differ materially from such statements. These uncertainties and other factors include such things as: general business conditions, strength of the economy and growth in the coatings industry; changes in the Company's relationships with customers and suppliers; unusual weather conditions; competitive pressures; and other risks and uncertainties described from time to time in the Company's reports filed with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or reverse any forward-looking statements, whether as a result of new information, future events or otherwise.
BENJAMIN MOORE & CO. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollars in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2000 1999 2000 1999
---- ---- ---- ----
(As Adjusted) (As Adjusted)
Net Sales $ 231,775 $ 206,076 $ 414,677 $ 376,601
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Costs and expenses:
Cost of products
sold 124,266 109,261 230,033 208,605
Selling, general
and administrative 60,875 51,401 116,738 102,653
Restructuring -- -- 38,598 --
Other income, net (1,295) (2,102) (2,531) (3,691)
--------- --------- --------- ---------
Total costs and
expenses 183,846 158,560 382,838 307,567
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Income before taxes
and minority interest 47,929 47,516 31,839 69,034
Income tax provision 19,280 19,422 12,810 28,354
Minority interest in
net income/(loss)
of subsidiaries 205 440 (210) 716
--------- --------- --------- ---------
Net income $ 28,444 $ 27,654 $ 19,239 $ 39,964
--------- --------- --------- ---------
Cash dividends
declared per share
of common stock $ .21 $ .17 $ .40 $ .33
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Basic net income
per share $ 1.07 $ 1.04 $ .72 $ 1.51
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Diluted net income
per share $ 1.07 $ 1.03 $ .72 $ 1.50
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