Brown & Sharpe Announces Second Quarter Earnings.Business Editors NORTH KINGSTOWN North Kingstown (kĭng`stən, kĭngz`toun'), town (1990 pop. 23,786), Washington co., S central R.I., on Narragansett Bay; inc. as Kings Towne 1674, divided into North Kingstown and South Kingstown 1723. , R.I.--(BUSINESS WIRE)--Aug. 1, 2000 Brown & Sharpe Manufacturing Company (NYSE NYSE See: New York Stock Exchange :BNS Noun 1. BNS - a bachelor's degree in naval science Bachelor of Naval Science bachelor's degree, baccalaureate - an academic degree conferred on someone who has successfully completed undergraduate studies ) today announced a net loss for the second quarter of 2000 of $15.3 million ($1.11 per share) on sales of $70.6 million. This compared to a net loss, including a 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 $9.5 million, of $8.6 million ($.63 per share) on sales of $81.7 million for the same period in 1999. The 2000 net loss includes nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". amounting to $11.8 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc asset write-offs for its Electronics Division, which will be disposed of later in 2000, as well as fees related to the Company's refinancing efforts. Sales in the second quarter of 2000 decreased $9.1 million and $1.8 million for the Measuring Systems ("MS") and Precision Measuring Instruments ("PMI See Private Mortgage Insurance. ") Divisions, respectively, compared with the same quarter in 1999. $3.7 million of the decrease in sales is due to the effect of foreign currency translation. MS sales in 2000, after adjusting for the effect of foreign currency, are 11% lower than 1999 due to lower sales in the Aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. Services Business that was offset slightly by increased machine sales. A significant portion of the lower PMI sales was due to the effect of foreign currency translation. Kenneth N. Kermes ker·mes n. A red dyestuff once prepared from the dried bodies of various female scale insects of the genus Kermes. [French kermès, short for alkermès, from Arabic al-qirmiz , Brown & Sharpe's President and Chief Executive Officer said, "We are encouraged by the response to the Board of Directors' decision to pursue all strategic alternatives to enhance shareholder value. We are moving aggressively with the assistance of Chase Securities Inc. to identify a high-priority path to the resolution of our capital structure issues." This press release contains 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. , as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve a number of assumptions, risks, and uncertainties that could cause actual results of the Company to differ materially from those matters expressed in or implied by such forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, which are in some cases beyond the control of the Company and may cause the actual results, performance, or achievements of the Company to differ materially from anticipated future results, performance, or achievements expressed or implied by such forward-looking statements. Additional information regarding this risk factor and uncertainties is detailed from time to time in the Company's SEC filings.
BROWN & SHARPE MANUFACTURING COMPANY
STATEMENT OF INCOME (LOSS)
(Dollars in Thousands Except Per Share Data)
For the For the
Quarter Ended Six Months Ended
June 30, June 30
2000 1999 2000 1999
Net sales $ 70,632 $ 81,652 $ 143,105 $ 164,066
Cost of sales 48,702 56,940 98,023 118,183
Research and development 3,096 2,528 5,940 5,290
Selling, general and
administrative expense 19,602 22,601 38,711 44,151
Provision for
Impaired Assets 7,635 -- 7,635 --
Refinancing Fees 3,265 -- 3,265 --
Restructuring charges 0 6,440 (472) 17,202
Operating loss (11,668) (6,857) (9,997) (20,760)
Interest expense 2,263 1,625 4,414 3,036
Other income
(expense), net 370 199 739 549
Loss before income taxes (13,561) (8,283) (13,672) (23,247)
Income tax provision 1,734 271 1,695 354
Net loss ($ 15,295) ($ 8,554) ($ 15,367) ($ 23,601)
Net loss per common share:
Basic ($ 1.11) ($ 0.63) ($ 1.13) ($ 1.75)
Diluted ($ 1.11) ($ 0.63) ($ 1.13) ($ 1.75)
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