Bush Industries Announces First Quarter Results; Declares Cash Dividend.JAMESTOWN, NY--(BUSINESS WIRE)--April 22, 1999-- Bush Industries, Inc. (NYSE NYSE See: New York Stock Exchange : BSH BSH Bosch und Siemens Hausgeräte GmbH (Germany) BSH Bausparkasse Schwaebisch Hall (German Building Society) BSH Bourne Shell BSH Bundesamt für Seeschiffahrt und Hydrographie ), one of the leading furniture manufacturers in the U.S., reported results for the first quarter ended April 3, 1999. Sales for the first quarter of 1999 reached $111,585,000, up from $108,813,000 for the same period a year ago, a 2.5 percent gain. Earnings from operations before restructuring costs for the first quarter were $1,093,000, or eight cents per 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. The net loss for the quarter was $5,440,000, or 38 cents per diluted share which included an after-tax 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 approximately $6,533,000 ($9,672,000 pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern ), or 46 cents per diluted share. This compares to earnings in the same period a year ago of $5,464,000, or 37 cents per diluted share. "The previously announced restructuring is expected to save approximately $9.0 million on an ongoing annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. pretax basis," said Paul Bush, chairman and president. "Looking forward," he stated, "we are downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing our European operation to minimize the current dilutive earnings impact by year end, while simultaneously focusing the sales, marketing and product development efforts on new opportunities in the emerging channels of distribution. In addition, we are expediting cost reduction programs throughout the North American operation North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. , and subcontracting the delivery and assembly portion of our service company (TASC TASC The After School Corporation TASC The American Surrogacy Center TASC Treatment Accountability for Safer Communities TASC The Analytic Sciences Corporation TASC Transportation Administrative Service Center TASC Total Administrative Services Corporation ) to allow us to provide nationwide coverage sooner while reducing start-up costs." He continued, "The sales increase for the quarter resulted from new product placements at several key major retail customers in the U.S., and was partially offset by a decrease in sales from our German subsidiary, Rohr-Bush, These product introductions are a continuation of our aggressive new product program that commenced in the fourth quarter of last year and will continue into the second half of 1999." Bush concluded, "Our focus is on the growth of the company and strengthening our position in the industry by both the development and introduction of exciting new product and a major focus on serviceability (system) serviceability - The ease with which corrective maintenance or preventative maintenance can be performed on a system (e.g. by a hardware service technician). Higher serviceability improves availability and reduces service cost. Serviceability is one component of RAS. to our customers through a `supply chain' based approach." Bush also announced that the Board of Directors declared the regular quarterly cash dividend of five cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. payable May 21, 1999 to stockholders of record on May 7, 1999. -0-
BUSH INDUSTRIES INC. AND SUBSIDIARIES
Financial Highlights (Unaudited)
The following data set forth certain unaudited condensed
consolidated statement of earnings information for the first
three-month period of 1999.
For the Thirteen Weeks Ended
4/3/99 4/4/98
Net sales $111,585,000 $108,813,000
Costs and expenses:
Cost of sales 81,332,000 78,321,000
Selling, general and administrative 25,958,000 20,602,000
Restructuring cost 9,672,000 0
Interest expense 2,034,000 1,012,000
--------- ---------
118,996,000 99,935,000
----------- ----------
(Loss) earnings before income taxes (7,411,000) 8,878,000
Income tax (benefit) expense (1,971,000) 3,414,000
----------- ---------
Net (loss) earnings ($5,440,000) $5,464,000
------------ ----------
(Loss) earnings per share
Basic ($.39) $.40
Diluted ($.38) $.37
Weighted shares outstanding
Basic 13,877,000 13,721,000
Diluted 14,271,000 14,815,000
Except for the historical information contained herein, the matters discussed in this release may 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. which involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services and prices, and other factors discussed in the Company's filings with the Securities and Exchange Commission. |
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