CTB International Corp. Reports 1998 Results.MILFORD, Ind.--(BUSINESS WIRE)--March 10, 1999--CTB International Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CTBC CTBC Computer Take Back Campaign CTBC Cape Town Bridge Club (South Africa) ) today reported 35 percent sales growth for the year ended December 31, 1998, to $272.2 million compared with $202.1 million in 1997. Sales for the fourth quarter totaled $63.8 million compared with $48.2 million in the comparable prior year period. Net income for the year totaled $9.2 million (71 cents per diluted share) which reflects an after-tax charge of $1.9 million (14 cents per diluted share for the year) for impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of investment announced February 9 relative to CTB's Rota Brock brock n. Chiefly British A badger. [Middle English brok, from Old English broc, of Celtic origin.] joint venture, compared with $13.9 million ($1.43 per diluted share) in 1997 which reflects an after-tax gain of $1.1 million (11 cents per diluted share) from the sale of the Company's former Vinyl business. For the fourth quarter, the company reported a net loss of $0.7 million (six cents per diluted share) again reflecting the charge of $1.9 million (15 cents per diluted share for the quarter) for impairment of investment, compared with net income of $2.0 million (15 cents per diluted share) in the prior year period. The 1998 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 amount reflects a 34 percent increase in weighted average shares outstanding primarily as a result of the company's initial public offering and the conversion of all preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. to common stock that occurred on August 21, 1997. 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. for the year totaled $23.2 million, while 1997's operating income was $25.8 million. For the quarter, 1998 operating income was $3.5 million compared with $3.9 million in the same period last year. "We are pleased with our growth and progress in a year when we faced a number of challenges. We were able to increase our total revenue and grow our market shares in spite of the difficult global economic conditions," said Chris Chocola Joseph Christopher "Chris" Chocola (born February 24 1962) was a Republican member of the United States House of Representatives from Indiana's At-large congressional district (map) from 2003 to 2007. He was defeated in 2006 by Joe Donnelly. , president and chief executive officer of CTB CTB Council Tax Benefit (UK) CTB Coopération Technique Belge (French: Belgian Technical Cooperation) CTB Commonwealth Transportation Board (Virginia Department of Transportation) International Corp. "We also resolved the problems resulting from our integrated computer software system implementation and are moving forward with improving and enhancing the functionality of the system. As the extra cost associated with the implementation is behind us, we are positioned to tap into the system's resources and use them to our advantage." In the fourth quarter, the company continued to benefit from a favorable domestic market for its egg production equipment. It also saw market share gains in sales of its integrated package of products for the broiler broiler a young (about 8 weeks old) male or female chicken weighing 3 to 3.5 lb. industry and strong grain storage purchases which resulted from a delayed seasonal demand for grain bins in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Sibley Industries, Inc. and Staco, Inc., acquired by CTB in the second half of 1998, also made a positive contribution for the quarter. While these revenue contributions helped offset ongoing weakness in the U.S. and European hog markets as well as in Asia, there was a negative margin impact through the loss of these historically higher-margin sales. As stated in previous quarters, the ongoing Charoen Pokphand The Charoen Pokphand Group is the largest business conglomerate in Thailand. Its chief subsidiary is Charoen Pokphand Foods, which did 116.5 billion baht in revenue in 2005, earning a profit of 6.747 billion baht. (C.P.) project, which includes poultry building revenue at essentially no margin, continues to have a negative impact on margin percentage. "Our fourth quarter was in line with market expectations with the exception of the impairment of investment charge related to our Brazilian joint-venture. We are proceeding with the winding down and liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of the Rota Brock business," Chocola added. Due to the devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the Brazilian currency versus the U.S. dollar, CTB anticipates that its first quarter 1999 net earnings could be negatively impacted as a result of a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for unrealized foreign exchange losses. This potential charge is related to U.S. dollar-denominated intercompany debt owed to CTB by a Brazilian subsidiary that was established there in 1996. Because of Brazil's existing economic uncertainty, the company reports that it cannot accurately project the full impact of the currency devaluation Currency devaluation A deliberate downward adjustment in the official exchange rates established, or pegged, by a government against a specified standard, such as another currency or gold. in the first quarter of 1999 or for the full year. However, CTB currently estimates a non-cash impact of approximately one cent per diluted share for every 10 percent of devaluation in the Brazilian currency per U.S. dollar from December 31, 1998. While CTB continues to watch industry factors very closely, for the full year, the company anticipates high single-digit sales growth and bottom-line growth in the mid-teens, not including the possible impact of the Brazilian currency devaluation and exclusive of the 1998 Rota Brock joint venture investment write-down. Chocola concluded, "Looking ahead, we remain confident in our strategy and in the long-term outlook for our business. A growing world population with limited land resources Noun 1. land resources - natural resources in the form of arable land natural resource, natural resources - resources (actual and potential) supplied by nature will have an on-going need for more efficient production of food. Our progress in 1998 has enhanced our ability to provide our customers with an integrated, highest-value package of equipment for the poultry, swine swine, name for any of the cloven-hoofed mammals of the family Suidae, native to the Old World. A swine has a rather long, mobile snout, a heavy, relatively short-legged body, a thick, bristly hide, and a small tail. , egg production, and grain industries to help meet the food production demands of 1999 and future years." To date, in demonstration of its confidence in the company's future, CTB has repurchased approximately 1.2 million shares, or 80 percent of the total number of shares of stock authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: for repurchase by CTB's Board of Directors. CTB International Corp., based in Milford, Indiana Milford is the name of two places in the U.S. state of Indiana:
1. a person with an animal enterprise involving the multiplication of the herd, flock or group. 2. a female animal used basically for the production of saleable young. nesting systems. Founded in 1952, CTB serves the poultry, swine, egg production and grain industries. It operates from facilities in Europe and 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. as well as from U.S. plants in Indiana, Alabama, Arkansas, Missouri, and Pennsylvania. This document contains certain statements regarding the future, including, without limitation, sales growth, earnings growth, overall growth strategy, and impact of foreign currency fluctuations, and involves certain risks and uncertainties regarding CTB International Corp.'s business and operations and the agriculture industry. Please refer to the Company's Securities and Exchange Commission filings, including, but not limited to, the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filing, where specific risk factors that could cause actual results to differ materially from the 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. made in this news release are identified. -0-
CTB International Corp. and Subsidiaries
Condensed Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
For the Three Months Ended
December 31,
-----------------------------
1998 1997
-------- --------
NET SALES $ 63,800 $ 48,159 32.5%
COST OF SALES 49,744 36,336 36.9%
-------- --------
Gross profit 14,056 11,823 18.9%
22.0% 24.5%
OTHER OPERATING EXPENSE:
Selling, general, and
administrative expenses 10,093 7,541 33.8%
15.8% 15.7%
Amortization of goodwill 502 400 25.5%
-------- --------
OPERATING INCOME 3,461 3,882 -10.8%
5.4% 8.1%
OTHER INCOME (EXPENSE) - Net (4,414) (619) 613.1%
-------- --------
INCOME BEFORE INCOME TAXES (953) 3,263 -129.2%
INCOME TAXES (240) 1,306 -118.4%
-------- --------
NET INCOME ($713) $ 1,957 -136.4%
======== ========
-1.1% 4.1%
DILUTED EARNINGS PER SHARE:
Earnings per common share ($0.06) $ 0.15 -138.5%
======== ========
Weighted average common
shares outstanding (a) 12,658 13,360 -5.3%
======== ========
(a) Average number of common shares outstanding varies between
periods presented principally due to five million shares issued
in the Company's initial public offering, the exchange of all
outstanding preferred stock for 648 thousand shares of common
stock on August 21, 1997 and 858 thousand net treasury shares
repurchased by the Company.
CTB International Corp. and Subsidiaries
Condensed Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
For the Twelve Months Ended
December 31,
----------------------------
1998 1997
-------- --------
NET SALES $272,180 $202,063 34.7%
COST OF SALES 211,496 148,345 42.6%
-------- --------
Gross profit 60,684 53,718 13.0%
22.3% 26.6%
OTHER OPERATING EXPENSE:
Selling, general, and
administrative expenses 35,645 26,506 34.5%
13.1% 13.1%
Amortization of goodwill 1,837 1,373 33.8%
-------- --------
OPERATING INCOME 23,202 25,839 -10.2%
8.5% 12.8%
OTHER INCOME (EXPENSE) - Net (7,826) (1,441) 443.1%
-------- --------
INCOME BEFORE INCOME TAXES 15,376 24,398 -37.0%
INCOME TAXES 6,180 10,499 -41.1%
-------- --------
NET INCOME $ 9,196 $ 13,899 -33.8%
======== ========
3.4% 6.9%
DILUTED EARNINGS PER SHARE:
Earnings per common share $ 0.71 $ 1.43 -50.5%
======== ========
Weighted average common
shares outstanding (a) 12,999 9,716 33.8%
======== ========
(a) Average number of common shares outstanding varies between
periods presented principally due to five million shares issued
in the Company's initial public offering, the exchange of all
outstanding preferred stock for 648 thousand shares of common
stock on August 21, 1997 and 858 thousand net treasury shares
repurchased by the Company.
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