CTB International Corp. Reports Increased Fourth Quarter and 1999 Earnings.Business Editors MILFORD, 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. 24, 2000 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 reported that earnings for the quarter ended December 31, 1999, improved to ten cents Ten Cents has several meanings:
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 from a 1998 fourth quarter loss of six 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 year, the Company reported 17 percent earnings growth to $0.83 per diluted share compared with $0.71 in 1998. Sales for the fourth quarter totaled $52.4 million, down from $63.8 million in 1998's fourth quarter. Sales for the year were up slightly at $272.6 million compared with $272.2 million in 1998. Net income for the quarter totaled $1.2 million compared to a loss of $713,000 in the year-ago quarter. For the year, the Company reported net income of $10.2 million, an 11 percent increase over last year. The fourth quarter of 1999 reflects the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). actions and cost controls despite lower sales. Results for 1998's fourth quarter included the impact of an after-tax charge of $1.9 million (15 cents per diluted share for the quarter) 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 relative to the dissolution Act or process of dissolving; termination; winding up. In this sense it is frequently used in the phrase dissolution of a partnership. The dissolution of a contract is its Rescission by the parties themselves or by a court that nullifies its binding force and reinstates each of CTB's Brazilian joint venture. Results for full-year 1999 included the impact of previously-announced charges totaling 15 cents per diluted share relative to foreign exchange losses, a 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. , and a purchase accounting charge, while results for full-year 1998 included the impact of the previously-mentioned joint venture dissolution. CTB noted that it has taken action to significantly minimize its earnings exposure to Brazilian 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 2000. "While challenging market conditions limited sales growth during 1999 and earnings were less than we would have liked, these factors helped motivate us to undertake the internal restructuring and the productivity initiatives we set in motion late in the year," said Victor A. Mancinelli, president and chief executive officer of CTB International Corp. "The benefits of our restructuring activities and our focus on cost controls are already making a contribution, and we expect they will enhance CTB's performance in the future." Factors impacting sales for the quarter included the weak worldwide hog market and the continued second-half 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. in the domestic egg industry as well as lower fourth quarter revenues for grain storage in 1999 compared with strong storage sales in 1998's fourth quarter resulting from the late U.S. harvest season in 1998. In addition, the Company noted that it had lower revenues from 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. buildings (a discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: activity) in 1999's final quarter, but it also had added revenue from its Roxell acquisition compared to 1998's fourth quarter. For the year, CTB reported that its grain business was strong due primarily to low grain commodity prices and high grain inventory levels. Demand for the Company's products was also subject to the weakness in the worldwide pork pork, flesh of swine prepared as food, one of the principal commodities of the meatpacking industry. Pork has long been a staple food in most of the world, although religious taboos have limited its use, especially among Jews and Muslims. industry and the second-half drop in the Company's egg production business noted above, as well as the ongoing negative impact of Asian economic problems. While there was a decline in export demand for U.S.-produced poultry meat during 1999, the Company reported that its poultry business was relatively unchanged for the year. Mancinelli concluded, "As we look ahead, we are confident in our strategy, our market position and in the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. fundamentals for our business. Demand for our products will continue to be driven by a growing world population, by the increasing requirements for dietary protein in developing nations, and by the need for more efficient production of food. The steps we have taken in 1999 have improved our ability to deliver value for our shareholders and to better serve our customers in 2000 and beyond." To demonstrate CTB's confidence in its future, to date, the Company has repurchased approximately 1.9 million shares of the total 2.5 million 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 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. by CTB's Board of Directors. CTB International Corp. is a leading designer, manufacturer and marketer of systems for the poultry, hog, egg production, and grain industries. Founded in 1952, CTB operates from facilities in the U.S.A., 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 through a worldwide distribution network. The company's web address is www.ctbinc.com. This document contains certain statements regarding the future, including, without limitation, sales growth, market trends, earnings growth, impact of restructuring activities, 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.
CTB International Corp. and Subsidiaries
Condensed Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
For the Three Months Ended
December 31,
--------------------------
1999 1998
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NET SALES $52,350 $63,800 -17.9%
COST OF SALES 39,139 49,744 -21.3%
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Gross profit 13,211 14,056 -6.0%
25.2% 22.0%
OTHER OPERATING EXPENSE:
Selling, general, and 9,050 9,882 -8.4%
administrative expenses 17.3% 15.5%
Amortization of goodwill 595 502 18.5%
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OPERATING INCOME 3,566 3,672 -2.9%
6.8% 5.8%
INTEREST EXPENSE - Net (1,330) (1,206) 10.3%
OTHER (EXPENSE) INCOME - Net (150) (3,419) -95.6%
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INCOME BEFORE INCOME TAXES 2,086 (953) 318.9%
INCOME TAXES 884 (240) 468.3%
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NET INCOME $1,202 ($713) 268.6%
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2.3% -1.1%
DILUTED EARNINGS PER SHARE:
Earnings per common share $0.10 ($0.06) 266.7%
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Weighted average common
shares outstanding 12,206 12,658 -3.6%
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For the Twelve Months Ended
December 31,
--------------------------
1999 1998
---- ----
NET SALES $272,603 $272,180 0.2%
COST OF SALES 202,534 211,496 -4.2%
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Gross profit 70,069 60,684 15.5%
25.7% 22.3%
OTHER OPERATING EXPENSE:
Selling, general, and 42,331 35,315 19.9%
administrative expenses 15.5% 13.0%
Amortization of goodwill 2,513 1,837 36.8%
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OPERATING INCOME 25,225 23,532 7.2%
9.3% 8.6%
INTEREST EXPENSE - Net (6,205) (4,153) 49.4%
OTHER (EXPENSE) INCOME - Net (1,984) (4,003) -50.4%
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INCOME BEFORE INCOME TAXES 17,036 15,376 10.8%
INCOME TAXES 6,820 6,180 10.4%
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NET INCOME $10,216 $9,196 11.1%
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3.7% 3.4%
DILUTED EARNINGS PER SHARE:
Earnings per common share $0.83 $0.71 16.9%
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Weighted average common
shares outstanding 12,273 12,999 -5.6%
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