CTB International Corp. Reports 2001 Earnings Per Diluted Share of $1.28; an Increase of 10 Percent Over 2000.Business Editors MILFORD Milford. 1 Residential city (1990 pop. 49,938), New Haven co., SW Conn., on Long Island Sound; settled 1639, inc. as a city 1959. Oysters and clams are gathered there for commercial use, and the city also has light manufacturing, such as the production , Ind IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. .--(BUSINESS WIRE)--Feb. 19, 2002 CTB CTB Council Tax Benefit (UK) CTB Coopération Technique Belge (French: Belgian Technical Cooperation) CTB Commonwealth Transportation Board (Virginia Department of Transportation) International Corp. (Nasdaq:CTBC CTBC Computer Take Back Campaign CTBC Cape Town Bridge Club (South Africa) ) today announced that its earnings 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 for 2001 increased 10 percent to $1.28 from $1.16 in 2000. The Company also reported net income for the year of $14.2 million, an increase of nine percent over the prior year. These improvements in net income and earnings per share were achieved despite a predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. market-driven 10 percent decline in 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 2001, CTB's net sales were $232.9 million compared to $259.1 million in 2000. For the quarter, CTB reported net sales of $46.0 million, up slightly from the prior year's fourth quarter sales of $45.5 million. Net income in 2001's fourth quarter totaled $830,000; or eight cents per diluted share, compared to a loss in the prior year's quarter of $139,000; or one cent per diluted share. Sales in the quarter and for the year were negatively impacted by persistent Permanent. See persistent data, persistent name and persistent object. persistent - persistence softness in certain markets, with the majority of the decline both for the quarter and for the year due to weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. domestic grain
market demand following two strong years. The Company attributed its
achievement of earnings growth despite declining sales to a variety of
factors including, principally, operational improvements, cost reduction
actions and reduced interest expense.Fourth quarter results in 2001 include a charge of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. six cents per diluted share relative to the previously announced settlement of various legal claims and proceedings. Fourth quarter results in 2000 included an unusual non-cash gain of approximately five cents per diluted share relative to curtailment Curtailment The act of contracting or reducing operations of a company in the hope of bringing it financial or operational stability. This management technique is often used when a company has grown too fast and is unable to effectively manage its operations. of postretirement medical benefits, nearly offset by a charge of approximately four cents per diluted share related to the cost of implementing expense reduction actions in December December: see month. , 2000. "We are very pleased with our progress in 2001," said Victor A. Mancinelli, president and chief executive officer. "This was a tough year in many of our markets, yet our team was equal to the challenge. We managed the company to solid profitability in a difficult environment, while we also continued and extended our program of internal improvement. Our International Segment was a strong performer throughout the year, and we also saw the poultry poultry, domesticated fowl kept primarily for meat and eggs; including birds of the order Galliformes, e.g., the chicken, turkey, guinea fowl, pheasant, quail, and peacock; and natatorial (swimming) birds, e.g., the duck and goose. market show some improvement in the fourth quarter." Mancinelli added, "We will continue our drive for operational improvements and cost reductions in the year ahead, while we prepare to meet the challenges of the mix of market conditions we expect to encounter. We currently anticipate some continued market improvement for the poultry and hog sectors, continued growth opportunities in many of our international markets, a grain market similar to last year's, though we have some new products to offer that market, and a continuation of the very poor egg production market conditions, though we hope we may see some recovery in that market late in the year." CTB will, as now required for all companies, adopt Statement of Financial Accounting Standards (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ," which is effective January January: see month. 1, 2002. This new accounting standard eliminates the amortization of goodwill and changes the manner in which goodwill is measured. Although the effects of implementing the new accounting standard have not yet been finalized See finalization. , CTB expects to record a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. , non-cash, goodwill write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. currently estimated to be in the range of $6.0 to $8.0 million during the first quarter of 2002. This anticipated charge would reflect the cumulative effect of adopting the accounting change in the income statement, but does not affect the Company's operations and has no impact on cash flows. Under the new standard, goodwill will be subject to an annual assessment 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. using a prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). fair-value-based test. Additionally, since the Company will no longer amortize amortize To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. goodwill, the Company's pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income, excluding any impairment charges, is expected to increase by approximately $2.3 million on an annual basis. For full year 2002, CTB reported that based on current market conditions, it expects 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 growth in the low- to mid-twenty percent range, which includes sixteen 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. for the elimination of goodwill amortization. The estimate can be impacted more or less by the speed of market recovery and does not include any goodwill impairment charges resulting from the implementation of SFAS No. 142, since the effects of that implementation have not yet been finalized. Through the end of 2001, CTB had acquired 2.5 million of the 3.0 million total shares of stock its board has 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 re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. . Segment Information The Company operates in three business segments. These include the Grain Segment and the Protein Group Segment, which each focus their efforts primarily in the U.S. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , and the International Segment, which focuses its efforts primarily outside the U.S. and Canada. Sales for the quarter for CTB's Grain Segment totaled $6.8 million, down 12 percent from the comparable 2000 quarter. Grain Segment sales for the year totaled $61.6 million compared with $86.3 million in 2000, a decline of 29 percent. The Company attributed the reduction to continuing weakness in grain storage demand, both on-farm as well as commercial. Fourth quarter sales for the Company's Protein Group Segment were $18.9 million, down slightly from the prior year's fourth quarter. For the year, CTB recorded Protein Group Segment sales of $84.0 million, down nine percent from the prior year. CTB reported that, as anticipated, egg production system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. in the quarter were below last year due to very weak market conditions. Fourth quarter sales of poultry and hog equipment were somewhat stronger than a year ago, but continued to reflect ongoing weakness in the U.S. poultry market and reluctance by hog producers to invest in capital goods Capital Goods Any goods used by an organization to produce other goods. Notes: Examples of capital goods include office buildings, equipment, and machinery. See also: Capital Expenditure, Disinvestment Capital goods . CTB's International Segment had sales of $20.3 million in the quarter, up eight percent from the prior year's quarter. For the year, the International Segment had sales of $87.3 million, up nearly nine percent over the prior year. Earnings Conference Call CTB is hosting a live webcast of its conference call on the investor section of its Web site (www.ctbinc.com/invest.htm) today at 11:00 a.m. Eastern Time. To listen to the call on the Web, please visit the site at least fifteen minutes early to download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. A replay of the call will also be available on the site for three weeks. About CTB CTB International Corp. is a leading designer, manufacturer and marketer of systems for the poultry, hog, egg production, and grain industries. Celebrating its 50th anniversary this year, CTB operates from facilities in the U.S.A., 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). 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
through a worldwide distribution network.CTB continues to focus on its strategy of emerging as the best cost manufacturer in the industries it serves, emphasizing its product-driven focus, expanding its global physical presence, extending its competitive advantage through accretive acquisitions Accretive Acquisition An acquisition that will increase the acquiring company's EPS. Notes: As they are expected to increase the acquiring company's future earnings, these acquisitions tend to be favorable for the company's market price. and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. other beneficial business arrangements, and enhancing its financial strength. Disclosure Regarding 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. In addition to historical information, this document contains certain statements representing the Company's expectations or beliefs concerning future events. These statements are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a 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. for such statements. The use of words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "projects," "could," "may," "will" or similar expressions are intended to identify these statements. The forward-looking statements contained in this document include, without limitation, statements related to implementation of operational improvements and cost reductions; changes in and impact of market conditions; achievement of anticipated earnings growth; and the impact of implementing new accounting standards. They also involve certain risks and uncertainties regarding CTB International Corp.'s business and operations and the agriculture industry. The Company's actual results could differ materially from those 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. by such forward-looking statements. The Company cautions that these statements are further qualified by other important factors, including, but not limited to those set forth in 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 and its other filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update this information.
CTB International Corp. and Subsidiaries
Condensed Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
For the Three Months Ended
December 31,
-------------------------------
2001 2000
---- ----
NET SALES $ 45,967 $ 45,518 1.0%
COST OF SALES 34,627 36,333 -4.7%
------------ ------------
Gross profit 11,340 9,185 23.5%
24.7% 20.2%
OTHER OPERATING EXPENSE(a):
Selling, general, and 9,368 7,922 18.3%
administrative expenses 20.4% 17.4%
Amortization of goodwill 591 568 4.0%
------------ ------------
OPERATING INCOME 1,381 695 98.7%
3.0% 1.5%
INTEREST EXPENSE - Net (435) (829) -47.5%
OTHER INCOME (EXPENSE) - Net 43 (99) 143.4%
------------ ------------
INCOME BEFORE INCOME TAXES 989 (233) 524.5%
INCOME TAXES 159 (94) 269.1%
------------ ------------
NET INCOME $ 830 $ (139) 697.1%
============ ============
1.8% -0.3%
DILUTED EARNINGS PER SHARE:
Earnings per share $ 0.08 $ (0.01) 900.0%
============ ============
Weighted average shares 11,064 11,112 -0.4%
============ ============
(a) Certain reclassifications have been made to conform Other
Operating Expenses from the prior year and prior quarters with the
current quarter's presentation.
For the Twelve Months Ended
December 31,
-------------------------------
2001 2000
---- ----
NET SALES $232,869 $259,115 -10.1%
COST OF SALES 166,220 189,894 -12.5%
------------ ------------
Gross profit 66,649 69,221 -3.7%
28.6% 26.7%
OTHER OPERATING EXPENSE(a):
Selling, general, and 38,558 40,853 -5.6%
administrative expenses 16.6% 15.8%
Amortization of goodwill 2,319 2,330 -0.5%
------------ ------------
OPERATING INCOME 25,772 26,038 -1.0%
11.1% 10.0%
INTEREST EXPENSE - Net (2,299) (4,349) -47.1%
OTHER INCOME (EXPENSE) - Net (249) (39) 538.5%
------------ ------------
INCOME BEFORE INCOME TAXES 23,224 21,650 7.3%
INCOME TAXES 9,053 8,660 4.5%
------------ ------------
NET INCOME $ 14,171 $ 12,990 9.1%
============ ============
6.1% 5.0%
DILUTED EARNINGS PER SHARE:
Earnings per share $ 1.28 $ 1.16 10.3%
============ ============
Weighted average shares 11,082 11,227 -1.3%
============ ============
(a) Certain reclassifications have been made to conform Other
Operating Expenses from the prior year and prior quarters with the
current quarter's presentation.
CTB International Corp. and Subsidiaries
Summary by Business Segment
(In thousands)
(Unaudited)
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
----------------------- ------------------------
2001 2000 2001 2000
---- ---- ---- ----
External net sales
Protein Group $ 18,881 $ 19,095 $ 84,038 $ 92,610
Grain 6,832 7,730 61,551 86,294
International 20,254 18,693 87,280 80,211
---------- ---------- ---------- ----------
Total $ 45,967 $ 45,518 $232,869 $259,115
========== ========== ========== ==========
Operating income
Protein Group $ 2,970 $ 1,761 $ 15,520 $ 17,820
Grain (685) (793) 11,356 19,325
International 2,311 121 13,987 7,805
Other(a) (3,215) (394) (15,091) (18,912)
---------- ---------- ---------- ----------
Total $ 1,381 $ 695 $ 25,772 $ 26,038
========== ========== ========== ==========
(a) Consists primarily of CTB's centralized and/or corporate functions
(shared services, profit sharing and bonus plans, and shared
manufacturing cost centers) and includes inter-company
eliminations.
CTB International Corp. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
As of As of
December 31, December 31,
2001 2000
---- ----
ASSETS
Current assets $ 53,478 $ 62,368
Property, plant, and equipment - net 46,412 50,399
Intangibles - net 77,527 81,848
Other assets 862 742
---------- -----------
Total assets $ 178,279 $ 195,357
========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 29,569 $ 33,507
Long-term debt 37,159 62,505
Deferred income taxes 8,782 8,982
Accrued postretirement benefit
cost and other 3,281 3,350
---------- -----------
Total liabilities 78,791 108,344
Shareholders' equity 99,488 87,013
---------- -----------
Total liabilities and
shareholders' equity $ 178,279 $ 195,357
========== ===========
CTB International Corp. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
For the Twelve Months
Ended December 31,
----------------------
2001 2000
---- ----
Net cash flows from operating activities $ 30,408 $ 23,020
Net cash flows from investing activities (4,835) (4,874)
Net cash flows from financing activities (24,454) (17,902)
--------- ---------
Net increase in cash and cash equivalents 1,119 244
Net effect of translation differences 114 (674)
Cash and cash equivalents, beginning of period 2,009 2,439
--------- ---------
Cash and cash equivalents, end of period $ 3,242 $ 2,009
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