CTB International Corp. Reports Improved Second Quarter Earnings of $5.8 Million Compared to Year-Ago Period Despite Sales Shortfall.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)--July 23, 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 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 second quarter net income of $5.8 million, or 52 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, up 8 percent from $5.3 million, or 48 cents per diluted share, in 2001's second quarter. The Company also reported reduced second quarter 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 $63.7 million from $67.1 million in the year-ago period, primarily due to market conditions. Primary impacts on sales for the quarter included continued weakness in the U.S. egg production market and reduced domestic on-farm grain storage sales compared to last year, offset somewhat by sales added through the acquisition of Beard beard, hair on the lower portion of the face. The term mustache refers to hair worn above the upper lip. Attitudes toward facial hair have varied in different cultures. Industries and improvement in the domestic 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. The Company credited its earnings strength despite a sales decline to continued operational improvements. For the first six months, the Company earned $8.4 million in net income, or 76 cents per diluted share, up 10 percent from 2001's first half, before the cumulative effect of a required accounting change in the first quarter described later in this release. First half results after the required accounting change, and pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma results in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , are described below. Sales for the first half declined 6 percent to $113.4 million, compared to $120.3 million in 2001. "We think we are beginning to see the light at the end of the tunnel tunnel, underground passage usually made without removing the overlying rock or soil. Although tunnels are approximately horizontal, they must be built with sufficient gradient for proper drainage. regarding improvement in some of our markets," said Victor A. Mancinelli, president and chief executive officer. "We anticipate improving conditions in the second half in the U.S. egg production market and ongoing moderate strength in the U.S. poultry market. We also continue to make strides forward with internal improvements and to benefit from execution of our growth strategy." "Passage of the federal farm bill has settled one of the variable factors we cited last quarter, however, we continue to watch other factors that remain less certain. These include weakness in the domestic hog market, the status of Russian Russian associated in some way with Russia. Russian blue a breed of cats with short, dense, silver-tipped blue-colored coat and vivid green eyes. poultry imports from 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. , and the impact on our raw material prices of current volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the in the U.S. steel The United States Steel Corporation (NYSE: X) is an integrated steel producer with major production operations in the United States and Central Europe. The company is the world's seventh-largest steel producer ranked by sales (see list of steel producers). market. We also continue to monitor the improvement in U.S. export conditions stemming stemming - stemmer from the weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. U.S.
dollar, as well as the impact of weather on strong domestic corn
plantings. Despite these uncertainties, at the present time we still
expect to achieve our full year earnings per share growth goals,"
Mancinelli concluded.The Company reiterated its previously announced expectations for 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, before the cumulative effect of the accounting change, in the low- to mid- mid- pref. Middle: midbrain. 20 percent range for full year 2002, which includes 16 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. This equates to diluted earnings per share in the range of $1.54 to $1.62 for the year. The estimate is based on current market and business conditions and could vary more or less depending on the variable factors listed above. 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 142 In accordance with the required adoption of Statement of Financial Accounting Standards 142 (SFAS 142), CTB stopped amortizing goodwill as of January January: see month. 1, 2002. The accounting change from the adoption resulted in 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 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. by the Company in the first quarter of $7.6 million, or 69 cents per diluted share, 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 goodwill. The total charge reflects the cumulative effect of adopting the accounting change and represents 10 percent of the Company's total goodwill net of prior amortization. The Company's net income for the first half, after the required accounting change, totaled $807,000 or 7 cents per diluted share. To facilitate comparison of results, pro forma results exclude goodwill amortization from 2001, net of tax. On that basis, pro forma net income was $5.8 million, or 52 cents per diluted share for the second quarter of both 2002 and 2001. On the same basis, pro forma net income for the first half was $8.4 million, or 76 cents per diluted share, compared to $8.5 million, or 77 cents per diluted share, in the first half of 2001. 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. Second quarter sales for the Company's Protein Group Segment were $19.8 million, down 13 percent from the year-ago period. This downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. was due primarily to weak conditions in the U.S. egg market, offset somewhat by improved U.S. poultry 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. . For the half, Protein Group Segment sales were down nearly 12 percent to $37.1 million compared to $42.0 million in 2001. Sales for the second quarter for CTB's Grain Segment totaled $18.8 million, down 2 percent from the prior year's quarter, due primarily to weakness in on-farm grain storage sales offset somewhat by grain dryer sales from the Beard acquisition. For the six months, Grain Segment sales were up slightly at $32.0 million compared to $31.9 million in 2001. CTB's International Segment had second quarter sales of $25.0 million in the quarter, virtually unchanged from the prior year's quarter, while sales for the half were $44.4 million, a decline of 4 percent from 2001's first half sales of $46.4 million. 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 (10:00 a.m. in Milford). 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 market conditions; implementation of operational improvements; execution of the Company's growth strategy; conditions in the domestic hog market; Russian imports of poultry; raw material prices for steel; currency exchange rates; weather impact on grain production; and achievement of anticipated earnings growth. 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 undertakes no obligation to release publicly any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to forward-looking statements in this document to reflect new circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or unanticipated events as they occur.
CTB International Corp. and Subsidiaries
Condensed Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
For the Three Months Ended
June 30,
-------------------------
2002 2001
---- ----
NET SALES $ 63,694 $ 67,141 -5.1%
COST OF SALES 43,975 46,601 -5.6%
--------- ---------
Gross profit 19,719 20,540 -4.0%
31.0% 30.6%
OTHER OPERATING EXPENSE:
Selling, general, and 9,734 10,157 -4.2%
administrative expenses 15.3% 15.1%
Amortization of goodwill - 571 -100.0%
--------- ---------
OPERATING INCOME 9,985 9,812 1.8%
15.7% 14.6%
INTEREST EXPENSE - Net (321) (770) -58.3%
OTHER EXPENSE - Net (313) (132) 137.1%
--------- ---------
INCOME BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE 9,351 8,910 4.9%
INCOME TAXES 3,562 3,564 -0.1%
--------- ---------
INCOME BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE 5,789 5,346 8.3%
9.1% 8.0%
CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE - - N/A
--------- ---------
NET INCOME $ 5,789 $ 5,346 8.3%
========= =========
9.1% 8.0%
DILUTED EARNINGS PER SHARE:
Before cumulative effect of
change in accounting principle 0.52 0.48 8.3%
Cumulative effect of change in
accounting principle - - N/A
--------- ---------
Earnings per share $ 0.52 $ 0.48 8.3%
========= =========
Weighted average shares 11,119 11,078 0.4%
========= =========
For the Six Months Ended
June 30,
------------------------
2002 2001
---- ----
NET SALES $113,442 $120,326 -5.7%
COST OF SALES 79,632 85,226 -6.6%
--------- ---------
Gross profit 33,810 35,100 -3.7%
29.8% 29.2%
OTHER OPERATING EXPENSE:
Selling, general, and 19,316 19,585 -1.4%
administrative expenses 17.0% 16.3%
Amortization of goodwill - 1,154 -100.0%
--------- ---------
OPERATING INCOME 14,494 14,361 0.9%
12.8% 11.9%
INTEREST EXPENSE - Net (642) (1,346) -52.3%
OTHER EXPENSE - Net (301) (306) -1.6%
--------- ---------
INCOME BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE 13,551 12,709 6.6%
INCOME TAXES 5,149 5,084 1.3%
--------- ---------
INCOME BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE 8,402 7,625 10.2%
7.4% 6.3%
CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE (7,595) - N/A
--------- ---------
NET INCOME $ 807 $ 7,625 -89.4%
========= =========
0.7% 6.3%
DILUTED EARNINGS PER SHARE:
Before cumulative effect of
change in accounting principle 0.76 0.69 10.1%
Cumulative effect of change in
accounting principle (0.69) - N/A
--------- ---------
Earnings per share $ 0.07 $ 0.69 -89.9%
========= =========
Weighted average shares 11,113 11,083 0.3%
========= =========
CTB International Corp. and Subsidiaries
Summary by Business Segment
(In thousands)
(Unaudited)
For the Three Months Ended
June 30,
--------------------------
2002 2001
---- ----
External net sales
Protein Group $ 19,839 $ 22,837 -13.1%
Grain 18,819 19,270 -2.3%
International 25,036 25,034 0.0%
--------- ---------
Total $ 63,694 $ 67,141 -5.1%
========= =========
Operating income
Protein Group $ 3,695 $ 5,119 -27.8%
Grain 4,380 4,465 -1.9%
International 4,661 4,800 -2.9%
Other(1) (2,751) (4,572) -39.8%
--------- ---------
Total $ 9,985 $ 9,812 1.8%
========= =========
For the Six Months Ended
June 30,
------------------------
2002 2001
---- ----
External net sales
Protein Group $ 37,093 $ 41,965 -11.6%
Grain 31,960 31,915 0.1%
International 44,389 46,446 -4.4%
--------- ---------
Total $113,442 $120,326 -5.7%
========= =========
Operating income
Protein Group $ 6,382 $ 8,650 -26.2%
Grain 6,087 6,421 -5.2%
International 7,794 7,631 2.1%
Other(1) (5,769) (8,341) -30.8%
--------- ---------
Total $ 14,494 $ 14,361 0.9%
========= =========
(1) 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
June 30, December 31,
2002 2001
---- ----
ASSETS
Current assets $ 70,817 $ 53,478
Property, plant, and equipment - net 49,071 46,412
Intangibles - net 72,751 77,527
Other assets 871 862
---------- ------------
Total assets $ 193,510 $ 178,279
========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 40,057 $ 29,569
Long-term debt 39,808 37,159
Deferred income taxes 7,310 8,782
Accrued postretirement
benefit cost and other 3,832 3,281
---------- ------------
Total liabilities 91,007 78,791
Shareholders' equity 102,503 99,488
---------- ------------
Total liabilities and
shareholders' equity $ 193,510 $ 178,279
========== ============
CTB International Corp. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
For the Six Months Ended
June 30,
-----------------------------
2002 2001
---- ----
Net cash flows from operating activities $ 8,822 $ 10,347
Net cash flows from investing activities (8,680) (2,079)
Net cash flows from financing activities 437 (7,078)
---------- ------------
Net increase in cash and cash equivalents 579 1,190
Net effect of translation differences 327 (21)
Cash and cash equivalents,
beginning of period 3,242 2,009
---------- ------------
Cash and cash equivalents, end of period $ 4,148 $ 3,178
========== ============
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