Brown & Sharpe Announces Third Quarter Results.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)--Oct. 25, 2000 Brown & Sharpe Sharpe , William Forsyth Born 1934. American economist. He shared a 1990 Nobel Prize for contributions to financial economics. 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 third quarter of 2000 of $9.5 million ($.69 per share) on sales of $64.3 million. This compared to a net loss of $2.5 million ($.19 per share) on sales of $72.7 million for the same period in 1999. The 2000 net loss includes a nonrecurring charge 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". of $5.7 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of its investment in a joint venture developing noncontact sensor A device that measures or detects a real-world condition, such as motion, heat or light and converts the condition into an analog or digital representation. An optical sensor detects the intensity or brightness of light, or the intensity of red, green and blue for color systems. technology. The 1999 loss included 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 $1.1 million. Sales in the third quarter of 2000 decreased $8.4 million compared with 1999 levels. $4.5 million of the decrease in sales is due to the effect of foreign currency translation with nearly all of the remaining $3.9 million decrease occurring in the aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. segment of the Measuring Systems Division. 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, "The operational results for the third quarter were not satisfying but were somewhat better than we had expected. Indications of a good order flow exist all around the world. We also continue aggressively to pursue with Chase Securities the evaluation of strategic alternatives for the Company, including a sale of all or parts of the business. These discussions with multiple interested bidders continue, and I am encouraged by the ongoing discussions." 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 Quarter For the Nine Months
Ended Ended
Sept. 30, Sept. 30,
2000 1999 2000 1999
Net sales $64,266 $72,712 $207,371 $236,778
Cost of sales 44,464 50,878 142,487 169,061
Research and development 3,873 2,582 9,813 7,872
Selling, general and
administrative expense 18,585 20,196 57,296 64,347
Provision for
impaired assets 2 -- 7,637 --
Refinancing fees 241 -- 3,506 --
Restructuring charges 0 824 (472) 18,026
Impairment of
partially-owned
affiliate 4,516 -- 4,516 --
Operating loss (7,415) (1,768) (17,412) (22,528)
Interest expense 2,489 1,911 6,903 4,947
Other income
(expense), net 784 182 1,523 731
Loss before income taxes (9,120) (3,497) (22,792) (26,744)
Income tax
provision (benefit) 411 (986) 2,106 (632)
Net loss ($9,531) ($2,511) ($24,898) ($26,112)
Net loss per
common share:
Basic and Diluted ($0.69) ($0.19) ($1.82) ($1.94)
CONSOLIDATED BALANCE SHEET
(DOLLARS IN THOUSANDS)
SEPT. 30 DEC. 31
ASSETS 2000 1999
Cash and cash equivalents 29,794 36,643
Accounts receivable net 68,993 88,300
Inventories 59,853 68,310
Other assets 5,853 5,553
Total current assets 164,493 198,806
Property, plant, and equipment net 38,659 47,319
Other Assets 42,796 56,052
$ 245,948 $ 302,177
LIABILITIES AND SHAREOWNERS' EQUITY
Accounts payable and accrued expenses 84,349 94,420
Current portion of short and long-term debt 91,678 94,695
Total current liabilities 176,027 189,115
Long-term debt 12,067 15,445
Other long-term liabilities 24,184 26,083
Shareowners' equity 33,670 71,534
$ 245,948 $ 302,177
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