Brunswick Technologies Reports First Quarter Results; BTI Exploring Strategic Alternatives to Enhance Shareholder Value.Business Editors 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. , ME--(BUSINESS WIRE)--May 5, 2000 Brunswick Technologies, Inc. (Nasdaq: BTIC BTIC Baggage Tag Issuer Code (aviation) ) ("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 "), a leading manufacturer and innovative developer of composite reinforcements reinforcements reinforce npl (Mil) → renfort(s) m(pl) , today reported first quarter 2000 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 of $12.1 million, an increase of 5.9% over the same period last year and 16.1% over the fourth quarter of 1999. Gross profit was $2.4 million, down from $2.48 million during the same period last year. Net income was $268,000, or $0.05 per fully 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. share, compared with $365,000, or $0.07 per fully diluted share for the same period in 1999. "We were pleased with a rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in domestic sales, the continued strength of our international revenues and the increasing penetration of our unique next-generation carbon reinforcement reinforcement /re·in·force·ment/ (-in-fors´ment) in behavioral science, the presentation of a stimulus following a response that increases the frequency of subsequent responses, whether positive to desirable events, or product line, Black Steel(R), into the infrastructure and industrial industries." said Martin S. Grimnes, 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. of BTI. Sales of Black Steel(R), our next-generation carbon reinforcement product line, grew to $688,000 in the first quarter, about 150% over the past two quarters combined. Because Black Steel(R) represents tremendous revenue growth potential for BTI, we committed significant production capacity to the development and delivery of the product line, which unfortunately negatively impacted sales of our conventional glass fabric products in this quarter. Margins were also negatively impacted by raw material price negotiations with the major glass suppliers that extended through the last few days of 1999. This was too late for us to effectively pass these increases on to the marketplace until late in the first quarter." Commenting further on BTI's production commitment to the Black Steel(R) product line, Bill Dubay Dubay may refer to:
adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. processing of carbon-based fabrics." BTI also reported that operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were 16.2% of net sales for the first quarter of 2000, down from 17.2% during the same period one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants ago. Research and development costs as well as selling expenses were also down in comparison to the same period last year. The company reported that orders in the domestic plant were received and filled for wind-blades for the first time since the first quarter of 1999. Volume is expected to continue growing in this market throughout 2000. On May 3, 2000, the BTI Board of Directors recommended that BTI shareholders reject as inadequate an unsolicited un·so·lic·it·ed adj. Not looked for or requested; unsought: an unsolicited manuscript; unsolicited opinions. unsolicited Adjective $8.00 per share tender offer made on April 20, 2000 by Vetrotex CertainTeed Corporation, a wholly-owned subsidiary of France-based holding company Compagnie de Saint-Gobain Saint-Gobain is also a commune of the Aisne département, in northern France. Saint-Gobain SA (Euronext: SGO) is a French multinational corporation, founded in 1665 in Paris and headquartered just on the outskirts of Paris at La Défense. . Commenting on the Board's decision, Grimnes said, "After a careful review of the Saint-Gobain offer, with the assistance of our financial advisors, the Board determined that the offer is financially inadequate and does not recognize the inherent value of this company, especially given our strong emerging new technologies. The Board believes it is in the best interest of all shareholders at this time to aggressively explore strategic alternatives to enhance value for BTI shareholders, and has formed a committee of independent directors to oversee this process. We will promptly prompt adj. prompt·er, prompt·est 1. Being on time; punctual. 2. Carried out or performed without delay: a prompt reply. tr.v. report any developments resulting from these efforts." Examples of products manufactured with BTI engineered reinforcements include: ballistic bal·lis·tic adj. 1. a. Of or relating to the study of the dynamics of projectiles. b. Of or relating to the study of the internal action of firearms. 2. armor, boats, snowboards, railcars, truck panels, wind blades, airframe structures, automotive parts, marine pilings, bridges, and offshore oil and gas production equipment. BTI has manufacturing facilities 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. , Texas and the UK. 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. Statement under 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: Matters discussed in this news release, including any discussion of or impact, expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. , 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 of the private Securities Litigation Reform Act of 1995. The company's results may differ significantly from 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 expand new and existing markets, competition from competing product lines from both fiberglass and non-fiberglass suppliers, 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 December: see month. 31, 1999.
Brunswick Technologies, Inc.
Summary Financial Information
(in thousands except per share data)
For the Three Months Ending
March 31,
-----------------------------------------
2000 1999
------------------- -------------------
(Unaudited)
Net sales $ 12,147 100.0% $ 11,474 100.0%
Cost of goods sold 9,745 80.2% 8,990 78.4%
-------- --------
Gross profit 2,402 19.8% 2,484 21.6%
Selling, general and
administrative expenses 1,798 14.8% 1,740 15.2%
Research and development
expenses 165 1.4% 227 2.0%
-------- --------
Operating income 439 3.6% 517 4.5%
-------- --------
Other income (expense):
Interest income 10 0.1% 11 0.1%
Interest expense (6) 0.0% (8) -0.1%
Miscellaneous, net (8) -0.1% 40 0.3%
-------- --------
(4) 0.0% 43 0.4%
-------- --------
Income before income tax 435 3.6% 560 4.9%
Income tax expense 167 1.4% 195 1.7%
-------- --------
Net income 268 2.2% 365 3.2%
======== ========
Basic:
Earnings per share $ 0.05 $ 0.07
Weighted average common
shares outstanding 5,221 5,188
Diluted:
Earnings per share $ 0.05 $ 0.07
Weighted average common
shares outstanding 5,436 5,448
The notes to the financial statements can be found in the company's
Quarterly 10-Q and Annual 10-K reports filed with the SEC
Brunswick Technologies, Inc.
Summary Financial Information
(in thousands except per share data)
March 31, December 31,
2000 1999
----------- -----------
ASSETS
------
Current assets: (Unaudited)
Cash $ 989 $ 173
Accounts receivable, net of
allowance for doubtful accounts
of $130 in 2000 and 1999 6,641 5,766
Inventories 7,003 7,730
Refundable Income Taxes 55 220
Deferred income taxes 348 349
Other current assets 413 269
----------- -----------
Total current assets 15,449 14,507
Property, plant and equipment
Land and building 1,136 1,136
Furniture and fixtures 680 638
Leasehold improvements 138 133
Machinery and equipment 12,693 12,503
Machine under construction 285 383
Vehicles 106 106
Management information system 520 518
----------- -----------
15,558 15,417
Less accumulated depreciation
and amortization (4,340) (4,000)
----------- -----------
Net property, plant and equipment 11,218 11,417
----------- -----------
Due from shareholder 115 113
Investment in European technology,
net of accumulated amortization of
$329 in 2000 and $289 in 1999 2,013 2,047
Goodwill, net of accumulated amortization
of $935 in 2000 and $864 in 1999 4,697 4,770
----------- -----------
Total assets $ 33,492 $ 32,854
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank Overdraft $ - $ 1,351
Current installments of long-term debt 113 118
Accounts payable 3,863 2,064
Accrued expenses 985 969
Income taxes payable - 21
----------- -----------
Total current liabilities 4,961 4,523
Deferred income taxes 1,596 1,603
Shareholders' equity:
Common stock, $0.0001 par value;
20,000,000 shares authorized,
5,230,823 outstanding in 2000
and 5,210,891 outstanding in 1999 1 1
Additional paid in capital 24,984 24,969
Treasury stock at cost;
3,300 shares in 1999 and 1998 (5) (5)
Cumulative translation adjustment (147) (71)
Retained Earnings 2,102 1,834
----------- -----------
Total shareholders' equity 26,935 26,728
----------- -----------
Total liabilities and
shareholders' equity $ 33,492 $ 32,854
=========== ===========
The notes to the financial statements can be found in the company's
Quarterly 10-Q and Annual 10-K reports filed with the SEC
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