Bush Boake Allen Reports Fourth Quarter Earnings of $.36 a Share.Business Editors MONTVALE, N.J.--(BUSINESS WIRE)--Jan. 25, 2000 Bush Boake Allen Inc. (NYSE NYSE See: New York Stock Exchange : BOA boa (bō`ə), name for live-bearing constrictor snakes of the family Boidae, found mostly in the Americas. This family, which also comprises the egg-laying pythons of the Old World, includes the largest of all snakes, as well as many smaller ) reported today that fourth quarter earnings were $.36 a share (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. ) compared to $.48 a share (diluted) earned in the fourth quarter of 1998. Net income for the fourth quarter 1998 included a non-recurring net gain of $2.3 million ($.12 a share) from the sale of a parcel of land and tenanted buildings adjacent to the company's Walthamstow, England site. 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 fourth quarter 1999 increased 4.0% to $128.3 million and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. advanced 5.1% to $13.6 million. For the year, Bush Boake Allen earned $1.24 a share (diluted) compared to $1.74 a share (diluted) in 1998. Net income in 1999 was $24.0 million compared to $33.7 million in 1998. Net sales for 1999 rose 2.8% to $499.0 million. &uot;We are encouraged by the stronger finish in our flavor and fragrance businesses and the start of improved operating results in aroma chemicals aroma chemical, n an odorous chemical with useful properties that is also legal and safe to use as a flavor or fragrance. as the year ended&uot; said Julian W. Boyden, chairman, president and chief executive officer. In the aroma chemical business, although sales revenue declined due to continuing price pressure, operating income improved during the fourth quarter resulting from increased volumes, improved operating efficiency and lower raw material costs. With the price of CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. , a major aroma chemical raw material, at its recent historic low of $.50 a gallon we began to see improved chemical margins as the year ended. In the Europe Region, which has been a problem area all year, a management reorganization is underway to reestablish our lead position in the UK flavor business. Several key management positions have changed and we are addressing an array of customer service issues. Overall regional sales improved modestly during the fourth quarter, however, operating income was adversely affected by significant redundancy and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs. In the International Region, India continued to reflect healthy sales growth and BBA's operations in Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. advanced strongly in the fourth quarter. Continued improvement in the Asia Pacific Region was paced by strong growth in China where sales advanced over 80%. In addition, Singapore, Malaysia, Thailand and Japan also registered satisfactory, double-digit growth. In the Americas, sales in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. advanced 19% with Mexico, Colombia and Argentina reporting solid gains. Canada's operations also reflected healthy growth in sales and operating income. In the company's U.S. business, flavors had a very strong quarter with double-digit sales and income growth. Also, the U.S. fragrance business continued to grow, but the seasonings business leveled off. Summing up the year, Mr. Boyden went on to say that &uot;1999 was certainly a challenging year but we are encouraged by signs that we weathered a severe down-cycle in the chemical business and saw a major 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 our flavor and fragrance businesses in the major growth markets of Asia Pacific and Latin America.&uot; Bush Boake Allen Inc., which conducts operations on six continents Six Continents is a large retail PLC in UK which split into Six Continents Retail known as Mitchells and Butlers plc. The hotels and soft drinks business of Six Continents PLC is now known as InterContinental Hotels Group PLC. , has 60 locations in 38 countries worldwide. The company supplies flavors and fragrances to the world's leading consumer products companies for use in foods, beverages, soaps and detergents, cosmetics, toiletries toi·let·ry n. pl. toi·let·ries An article, such as toothpaste or a hairbrush, used in personal grooming or dressing. toiletries npl → artículos mpl de aseo (= , personal care items and related products. Its aroma chemicals, natural extracts and essential oils serve as raw materials for a wide range of compounded flavors and fragrances. Statements in this press release, which are not historical, are 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. that are subject to risks and uncertainties which could cause actual results to differ materially. Such risks and uncertainties with respect to Bush Boake Allen's business include general economic conditions, customers changing flavor and/or fragrance formulations, pricing, availability and capacity of both materials which are purchased and products which are sold, potential disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. to operations from Year 2000 issues, the effect of the transition to the Euro and political and economic uncertainties, currency fluctuations, devaluations and/or revaluations in the many countries in which the company operates. The company assumes no duty to update any such forward-looking information.
BUSH BOAKE ALLEN INC.
Comparative Summary of Income (Unaudited)
Fourth Quarter Ended December 25, Percent
1999 1998 Change
-------------------------------------------
Net Sales $128,296,000 $123,356,000 4.0 %
Income from operations 13,569,000 12,913,000 5.1
Income before taxes 11,818,000 13,357,000 (11.5)
Net income $6,945,000 $9,224,000 (24.7)
Earnings per share:
- Basic $0.36 $0.48(a) (25.0)
- Diluted $0.36 $0.48(a) (25.0)
Weighted average
shares outstanding:
- Basic 19,299,534 19,283,462
- Diluted 19,375,969 19,401,626
Year Ended December 25, Percent
1999 1998 Change
---------------------------------------
Net Sales $499,037,000 $485,374,000 2.8 %
Income from operations 45,654,000 56,844,000 (19.7)
Income before taxes 38,984,000 50,666,000 (23.1)
Net income $23,983,000 $33,692,000 (28.8)
Earnings per share:
- Basic $1.24 $1.75(a) (29.1)
- Diluted $1.24 $1.74(a) (28.7)
Weighted average
shares outstanding:
- Basic 19,295,286 19,279,028
- Diluted 19,392,082 19,405,569
(A) Includes a non-recurring net gain of $.12 per share from the sale
of property in Walthamstow, UK.
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