CTB International Corp. Reports Record First Quarter Earnings.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)--April 26, 2001 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 record 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 the first quarter of 21 cents, slightly better than the year-ago quarter of 20 cents, despite a decline in sales. First quarter net income was $2.3 million, as compared to $2.2 million last year, while 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 the quarter were down eight percent to $53.2 million, compared to $57.8 million in 2000. CTB president and chief executive officer, Victor A. Mancinelli, attributed the sales 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. to difficult market conditions, particularly in the Company's Protein Group Segment. However, he noted, "We were pleased with our results for the quarter, thanks in large part to our continuing cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. efforts. These helped us achieve good earnings performance despite the soft market conditions that carried over from 2000 and the added competitive pricing pressures we began to face in the quarter." The majority of the decline in CTB's sales in the quarter came from the Protein Group Segment, which includes sales to the U.S. and Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. 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. , hog, and egg production markets. Sales for this segment for the quarter were $19.1 million compared with $23.7 million in 2000. This decline was driven primarily by softness in the U.S. poultry market that began to accelerate in the second half of 2000. The Company's Grain Segment had a strong first quarter in farm storage bins, but also felt the impact of the slow U.S. poultry market with declining feed bin sales as compared to the year-ago quarter. The segment, which focuses its sales 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 , had net sales of $12.6 million in the first quarter, down from $13.5 million in the prior year. Strength in many regions outside the U.S. and Canada helped the Company's International Segment to offset lingering lin·ger v. lin·gered, lin·ger·ing, lin·gers v.intr. 1. To be slow in leaving, especially out of reluctance; tarry. See Synonyms at stay1. 2. weakness in other areas. The International Segment recorded sales of $21.4 million, up four percent from last year's first quarter. The Company also saw net interest expense decline to $0.6 million dollars from $1.2 million last year, primarily as a result of settlement of interest rate swap Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. agreements in the quarter, lower debt balances and lower borrowing costs. "We continue to manage costs closely and to work on additional operational improvement," said Mancinelli. "We remain committed to our strategies to improve earnings for the year in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite market pressures. We are, however, mindful mind·ful adj. Attentive; heedful: always mindful of family responsibilities. See Synonyms at careful. mind of continued softness in certain markets and added pressure we face on pricing." 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 two weeks. About CTB 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 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. The Company's web address is www.ctbinc.com.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; achievement of earnings growth; execution of business strategies; and management of costs. 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
March 31,
--------------------------
2001 2000
---- ----
NET SALES $53,185 $57,752 -7.9%
COST OF SALES 38,625 41,620 -7.2%
---------- ---------
Gross profit 14,560 16,132 -9.7%
27.4% 27.9%
OTHER OPERATING EXPENSE:
Selling, general, and 9,364 10,692 -12.4%
administrative expenses 17.6% 18.5%
Amortization of goodwill 647 605 6.9%
---------- ---------
OPERATING INCOME 4,549 4,835 -5.9%
8.6% 8.4%
INTEREST EXPENSE - Net (576) (1,241) -53.6%
OTHER (EXPENSE) INCOME - Net (174) 152 -214.5%
---------- ---------
INCOME BEFORE INCOME TAXES 3,799 3,746 1.4%
INCOME TAXES 1,520 1,498 1.5%
---------- ---------
NET INCOME $2,279 $2,248 1.4%
========== =========
4.3% 3.9%
DILUTED EARNINGS PER SHARE:
Earnings per share $0.21 $0.20 5.0%
========== =========
Weighted average shares 11,087 11,479 -3.4%
========== =========
CTB International Corp. and Subsidiaries
Summary by Business Segment
(In thousands)
(Unaudited)
For the Three Months Ended
March 31,
2001 2000
---- ----
External net sales
Protein Group $19,128 $23,658
Grain 12,645 13,457
International 21,412 20,637
-------------- --------------
Total $53,185 $57,752
============== ==============
Operating income
Protein Group $3,531 $5,285
Grain 1,956 2,457
International 2,831 2,611
Other (a) (3,769) (5,518)
-------------- --------------
Total $4,549 $4,835
============== ==============
(a) Consists primarily of CTB's centralized and/or corporate functions
and includes inter-company eliminations.
CTB International Corp. and Subsidiaries
Condensed Consolidated Balance Sheet
(In thousands)
(Unaudited)
As of As of
March 31, December 31,
2001 2000
--------------- ---------------
ASSETS
Current assets $ 66,821 $ 62,368
Property, plant, and
equipment - net 49,023 50,399
Intangibles - net 79,513 81,848
Other assets 1,238 742
--------------- ---------------
Total assets $ 196,595 $ 195,357
=============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 33,965 $ 33,507
Long-term debt 61,616 62,505
Deferred income taxes 9,145 8,982
Accrued postretirement
benefit cost & other 3,284 3,350
--------------- ---------------
Total liabilities 108,010 108,344
Shareholders' equity 88,585 87,013
--------------- ---------------
Total liabilities and
shareholders' equity $ 196,595 $ 195,357
=============== ===============
CTB International Corp. and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
For the Three Months Ended
March 31,
2001 2000
------------- --------------
Net cash flows from
operating activities $ 549 $ (1,738)
Net cash flows from
investing activities (1,191) (683)
Net cash flows from
financing activities 599 2,520
------------- --------------
Net increase in cash and
cash equivalents (43) 99
Net effect of translation
differences (2) (409)
Cash and cash equivalents,
beginning of period 2,009 2,439
------------- --------------
Cash and cash equivalents,
end of period $ 1,964 $ 2,129
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