Brunswick Technologies, Inc. Reports on Operations for Fourth Quarter and Year End 1998.BRUNSWICK Brunswick, cities, United States Brunswick. 1 City (1990 pop. 16,433), seat of Glynn co., SE Ga., on St. Simon's Sound near the Atlantic coast; laid out 1771–72, inc. 1856. It is a port of entry with numerous container docks. , Maine--(BUSINESS WIRE)--Feb. 17, 1999--Brunswick Technologies Inc. (Nasdaq:BTIC BTIC Baggage Tag Issuer Code (aviation) ), a leader in developing and manufacturing engineered The profession of manufacturing engineer is defined as a person having the education and experience to understand and control manufacturing systems such as processes and/or automation, including industrial processes and equipment used to produce goods. reinforcements reinforcements reinforce npl (Mil) → renfort(s) m(pl) for the composite industry, today reported growth in revenue and earnings for the fourth quarter and year ending December December: see month. 31, 1998. Revenue in the fourth quarter grew to $11,096,700, up 48% from $7,501,600 for the same period last year. Net income rose to $352,600, or $.07, fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , compared to $97,200, or $.02 fully diluted earnings per share from the prior year's fourth quarter. Annual revenue grew 36% to $41,422,100 in 1998, up from $30,509,700 in 1997. Net income increased to $1,548,300 in 1998, up 21% from $1,275,400 for the year in 1997, or $0.28 per fully diluted earnings per share compared to $0.26 fully diluted earnings per share in 1997. Results in 1998 include 10 months of the international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. of Brunswick Technologies Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). Limited ("BTI-Europe"), which
was acquired on March 3, 1998.Martin Grimnes, BTI BTI Beverage Testing Institute BTI Boyce Thompson Institute BTI British American Tobacco (stock symbol) BTI Boston Theological Institute Bti Bacillus Thuringiensis Israelensis BTI BioTechnology Institute BTI Binding Tariff Information 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. , noted that fourth quarter results met management's expectations and that the stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. gross margin of 21% was largely due to: -- Improved margins in BTI-Europe associated with operating efficiencies and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. product mix; -- Lower domestic raw material pricing as year end rebates of $150,000 were earned; and -- Continued improvement in manufacturing efficiencies in the Maine Maine, ship Maine, U.S. battleship destroyed (Feb. 15, 1898) in Havana harbor by an explosion that killed 260 men. The incident helped precipitate the Spanish-American War (Apr., 1898). Commanded by Capt. Charles Sigsbee, the ship had been sent (Jan. plant. The manufacturing inefficiencies experienced in Maine last year depressed margins and greater quantities of second quality goods were produced. While the company increased reserves for these goods, plans to exploit new and existing outlets present an opportunity to recover the costs and to minimize future build up of these items. Grimnes also noted that fourth quarter net revenue increased 7.6% over the third quarter. This increase was driven by a 6.4% growth in net revenue domestically and 14.4% internationally. Grimnes stated, "Revenue growth in 1999 is expected to slow somewhat as the company concentrates on margin enhancements and earnings growth." Reflecting on the year, Grimnes commented that in 1998 BTI built and positioned the company to take advantage of future opportunities. "We now have a solid foothold foot·hold n. 1. A place providing support for the foot in climbing or standing. 2. A firm or secure position that provides a base for further advancement. foothold Noun 1. in the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. composites market through the successful acquisition of BTI-Europe. This provides us with the opportunity to continue our leadership position in this market and to selectively introduce process efficiencies and technology to an already strong performing operation in the UK," he said. In domestic operations, BTI added a new production line, upgraded an existing White Steel(R) machine, and completed building expansions in Maine and Texas. These expansions allow BTI to improve production efficiencies and also provide the company with necessary space for future capacity expansion. Other significant events during the year included the appointments of a new CFO See Chief Financial Officer. and a new Manufacturing Manager, and creation of a Corporate Controller position. "New financial management tools are being developed with the adoption of a new Management Information System and a new team oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. approach has helped stabilize stabilize See peg. the manufacturing workforce in Maine," Grimnes noted. Last year BTI also made changes in its distribution channels. The company replaced a regional distributor with one serving North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Recently, three of the company's major distributors, including the new North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. distributor, announced a consolidation, which will occur in the first quarter. While this consolidation will present significant market and operational challenges, management believes it will also offer new opportunities for BTI. The composites industry continues to evolve and push into new markets. "We are starting to see new commitments emerging for the offshore oil and gas industry as composites make further inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ to replace steel in topside offshore oil rigs," explained Bill Dubay Dubay may refer to:
Noun 1. ABB - an urban hit squad and guerrilla group of the Communist Party in the Philippines; formed in the 1980s to build weight saving composite topside structures for offshore oil rigs. This represents a new market for the company, and composites in general, where compliance with stringent fire and safety requirements have been limiting factors A factor or condition that, either temporarily or permanently, impedes mission accomplishment. Illustrative examples are transportation network deficiencies, lack of in-place facilities, malpositioned forces or materiel, extreme climatic conditions, distance, transit or overflight rights, ." Although accounting for less than 10% of total revenues, sales of White Steel(R) products increased by 91% in 1998 and the company is now developing opportunities for Black Steel(R) with more cost effective carbon heavy weight reinforcements from manufacturers such as Zoltec. BTI successfully manufactured and recently shipped its first glass/carbon hybrid marine pilings to Hardcore Composites. "BTI continues to take a leadership role in developing new opportunities for composites in partnership with large industrial companies and government agencies such as DOT for infrastructure applications. We believe these opportunities will provide significant growth for BTI and the composites industry in the years to come, though the timing of any significant revenue is difficult to determine at this stage," Grimnes concluded. Examples of products manufactured with BTI reinforcements include: ballistic shielding A ballistic shield or tactical shield is a hand-held shield that is capable of defeating handguns, shotguns and submachine guns. Less common are heavier and thicker rifle-protection shields that are mounted on wheels for ease of mobility. , boats, pipe, skis, snowboards, automotive parts, rail cars, marine pilings and fenders, bridges, storage tanks and offshore oil and gas safety production equipment. Matters discussed in this news release, including any discussion of or impact, expressed or implied, on the Company's anticipated revenue growth, operating results and future earnings per share contain 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. (identified by the words "expect", "estimate", "project", "plans", "believe", and similar expressions) that involve known and unknown risks and uncertainties. For these statements the company claims the protection of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. of 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. The company's results may differ significantly form the results indicated by such forward-looking statements. The Company's future results are dependent upon general economic conditions, the availability of supplies of fiberglass fiberglass, thread made from glass. It is made by forcing molten glass through a kind of sieve, thereby spinning it into threads. Fiberglass is strong, durable, and impervious to many caustics and to extreme temperatures. , the ability to continue to improve production capacity and scheduling, the ability to expand new and existing markets, competition from competing product lines from both fiberglass and non-fiberglass suppliers, the ability of major distributors to successfully merge operations, the ability to manage growth in inventory, the stability of its customers' capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. plans and the ability of the company to obtain necessary capital from time to time. These and other risks are detailed from time to time in the Company's SEC reports, including Form 10K for the year ended December 31, 1997. -0-
Brunswick Technologies, Inc.
Summary Financial Information
(in thousands except per share data)
For the Three Months Ending
December 31,
1998 1997
(Unaudited)
Net sales $11,097 100% $7,502 100%
Cost of goods sold 8,766 79% 5,805 77%
Gross profit 2,331 21% 1,697 23%
Selling, general and
administrative expenses 1,723 16% 1,425 19%
Research and development
expenses 185 2% 259 3%
Operating income 423 4% 13 0%
Other income (expense):
Interest income 15 0% 92 1%
Interest expense (1) 0% (43) (1%)
Miscellaneous, net 88 1% 72 1%
102 1% 121 2%
Income before income tax 525 5% 134 2%
Income tax expense 172 2% 37 0%
Net income 353 3% 97 1%
Preferred stock dividend -- --
Accretion of preferred
stock redemption value -- --
Net income attributable
to common stock $353 3% $97 1%
Basic:
Earnings per share $0.07 $0.02
Weighted average common
shares outstanding 5,173 4,964
Diluted:
Earnings per share $0.07 $0.02
Weighted average common
shares outstanding 5,414 5,325
For the Twelve Months Ending
December 31,
1998 1997
(Unaudited)
Net sales $41,422 100% $30,510 100%
Cost of goods sold 32,224 78% 22,807 75%
Gross profit 9,198 22% 7,702 25%
Selling, general and
administrative expenses 6,604 16% 5,244 17%
Research and development
expenses 623 2% 677 2%
Operating income 1,971 5% 1,781 6%
Other income (expense):
Interest income 92 0% 319 1%
Interest expense -- 0% (328) (1%)
Miscellaneous, net 324 1% 211 1%
416 1% 202 1%
Income before income tax 2,387 6% 1,983 6%
Income tax expense 839 2% 707 2%
Net income 1,548 4% 1,275 4%
Preferred stock dividend -- (51)
Accretion of preferred
stock redemption value -- (5)
Net income attributable
to common stock $1,548 4% $1,219 4%
Basic:
Earnings per share $0.30 $0.29
Weighted average common
shares outstanding 5,164 4,216
Diluted:
Earnings per share $0.28 $0.26
Weighted average common
shares outstanding 5,438 4,936
The notes to the financial statements can be found in the company's
Annual 10-K report to be filed with the SEC.
Brunswick Technologies, Inc.
Summary Financial Information
(in thousands except share data)
December 31, December 31,
1998 1997
ASSETS
Current assets: (Unaudited)
Cash $ 796 $ 353
Marketable securities available for sale -- 6,607
Accounts receivable, net of allowance for
doubtful accounts of $130 in 1998
and $46 in 1997 6,056 2,909
Inventories 4,807 3,308
Refundable Income Taxes 27 --
Deferred income taxes 274 179
Other current assets 531 354
Total current assets 12,491 13,710
Property, plant and equipment
Land and building 974 937
Furniture and fixtures 535 458
Leasehold improvements 116 81
Machinery and equipment 10,284 6,375
Machine under construction 280 231
Vehicles 92 92
Management information system 395 102
12,676 8,276
Less accumulated depreciation
and amortization (2,877) (2,003)
Net property, plant and equipment 9,799 6,273
Due from shareholder 111 70
Investment in European technology, net
of accumulated amortization of $87 in 1998 2,112 --
Goodwill, net of accumulated amortization of
$513 in 1998 and $322 in 1997 5,056 5,039
Other assets 70 124
Total assets $ 29,639 $ 25,216
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank Overdraft $ 474 $ --
Note Payable - Bank 261 --
Current installments of long-term debt 100 100
Due to stockholder 226 84
Accounts payable 1,886 538
Accrued expenses 579 514
Income taxes payable -- 130
Total current liabilities 3,526 1,366
Long-term debt, excluding current
installments 139 253
Deferred income taxes 1,034 370
Shareholders' equity:
Preferred stock, $10 par value;
1,000,000 authorized, none outstanding -- --
Common stock, $0.0001 par value;
20,000,000 shares authorized, 5,189,190
outstanding in 1998 and 5,146,606
outstanding in 1997 1 1
Additional paid in capital 24,838 24,715
Treasury stock at cost; 3,300 shares
in 1998 and 1997 (5) (5)
Cumulative translation adjustment 41 --
Retained Earnings (Deficit) 65 (1,484)
Total shareholders' equity 24,940 23,227
Total liabilities and
shareholders' equity $ 29,639 $ 25,216
-0- The notes to the financial statements Notes to the financial statements A detailed set of notes immediately following the financial statements in an annual report that explain and expand on the information in the financial statements. can be found in the company's third quarter 10-Q report to be filed with the SEC. |
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