Cameron Ashley Reports Record Fiscal 1999 Third Quarter Results.DALLAS, Texas--(BUSINESS WIRE)--August 18, 1999-- Cameron Ashley Building Products, Inc. (NYSE NYSE See: New York Stock Exchange :CAB) today reported record results for the third quarter ended July 31, 1999. 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 third quarter of fiscal 1999 increased 26.7% to a record $315.8 million from $249.3 million in the prior year period. During the quarter, same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. grew 6.8% overall, 7.1% in the Cameron division, and 5.2% in the Ashley division. Net income for the third quarter of 1999 was a record $6.7 million, or $0.76 per share on a 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. basis, compared to $5.4 million, or $0.56 per diluted share in the third quarter of fiscal 1998. Third quarter results for the 1999 fiscal year included approximately $500,000, or $0.03 per diluted share after-tax, in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. associated with the systems development and business process re-engineering See reengineering. (business) Business Process Re-engineering - (BPR) Any radical change in the way in which an organisation performs its business activities. BPR involves a fundamental re-think of the business processes followed by a redesign of business activities to project in the Cameron division. Results for the 1998 third quarter included approximately $300,000 in system development expenses and about $1.4 million in pre-tax costs associated with the termination of Cameron Ashley Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. (CAFS CAFS Centre for African Family Studies CAFS Compressed Air Foam System CAFS Conotruncal Anomaly Face Syndrome CAFS Certified Air Filter Specialist CAFS Content Addressable File Storage CAFS Combined Acceleration Flight Simulator ) U.S. operations. Together, these costs impacted the 1998 third quarter's net income per share by $0.11 on a diluted basis. For the nine months ending July 31, 1999, net sales increased 31.7% to $807.9 million from $613.3 million in 1998. Same-store sales increased 8.3% overall, 9.0% in the Cameron division, and 5.1% in the Ashley division. Net income for the nine-month fiscal 1999 period was a record $10.1 million, or $1.15 per diluted share, compared to $8.8 million, or $0.91 per diluted share in the year-ago period. The nine-month fiscal 1999 period included approximately $1.6 million, or $0.11 per diluted share after-tax, in expenses associated with systems development costs. Results for the same period in 1998 included approximately $1.2 million in system development costs and the $2.2 million associated with losses at CAFS for a total after-tax impact of about $0.23 per diluted share. Ronald R. Ross, Chairman and Chief Executive Officer, commented: "We are pleased with our solid financial results this quarter with growth in net income of 24% from last year. Sales were quite strong across the Company, driven by robust performance from recent acquisitions and internal growth. Although we are pleased with our sales growth, expense control continues to be an issue, particularly during our busy season when we are rushing to fill customer orders. We continue our focus on improving branch operating performance as a key initiative with all our operating managers having a major portion of their incentive compensation tied to making improvements in this area." Commenting on the new computer system, Mr. Ross stated: "The U.S. deployment is going very well. We are on schedule for installing the systems in our U.S. branches, and remain confident that we will complete the project as previously reported by next April. We believe that the new system's improved functionality and productivity will assist us in improving our operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. and significantly enhance our long-term growth strategy." Cameron Ashley Building Products, Inc. is a distributor of a broad line of building products that are used principally in home improvement, remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling and repair work and in new residential construction. The Company distributes its products to independent building material dealers, professional builders Professional Builder (ISSN-1072-0561) is a trade publication and web site owned by Reed Business Information serving the information needs of the housing and light construction marketplace. , large contractors and mass merchandisers through a network of 162 branches located throughout 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 Canada. Product lines include roofing, millwork, pool and patio enclosure materials, insulation, siding, steel products, industrial metals and a variety of other building materials Building materials used in the construction industry to create . These categories of materials and products are used by and construction project managers to specify the materials and methods used for . . Certain statements in this release are "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. " that are made pursuant to the 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. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward- looking statements may be indicated by phrases such as "believes", "anticipates", "expects", "intends", "foresees", "projects", "predicts", "forecasts" or similar words and are subject to known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Among the key factors that could cause results to differ materially are: (i) business and economic conditions in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , (ii) business and economic conditions in the regional markets in which the Company operates, (iii) adverse homebuilding conditions including those related to weather and interest rates, (iv) the ability to make acquisitions at reasonable prices and achieve operating efficiencies upon integration, (v) reliable and cost-effective supply of products from manufacturers, and (vi) technology risks in implementing new and/or converting existing information systems. These risks are more fully described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake any obligations to update the information contained herein, which speaks only as of this date. Note: More information on Cameron Ashley Building Products can be found on the Wide World Web at http://www.cabp.com. -0-
CAMERON ASHLEY BUILDING PRODUCTS, INC.
(Unaudited. Dollars in thousands, except per share amounts.)
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months For the Nine Months
Ended Ended
7/31/99 7/31/98 7/31/99 7/31/98
NET SALES $315,768 $249,322 $807,901 $613,311
COST OF SALES 253,131 200,532 646,544 491,053
GROSS PROFIT 62,637 48,790 161,357 122,258
OPERATING EXPENSES 47,901 37,309 134,392 100,857
RE-ENGINEERING SYSTEM
& CONVERSION COSTS 500 300 1,562 1,223
INCOME FROM OPERATIONS 14,236 11,181 25,403 20,178
INTEREST EXPENSE 3,175 2,170 8,569 5,587
INCOME BEFORE INCOME
TAXES 11,061 9,011 16,834 14,591
PROVISION FOR INCOME
TAXES 4,399 3,646 6,741 5,835
NET INCOME $ 6,662 $ 5,365 $ 10,093 $ 8,756
NET INCOME PER SHARE:
BASIC $ 0.77 $ 0.57 $ 1.17 $ 0.94
DILUTED $ 0.76 $ 0.56 $ 1.15 $ 0.91
WEIGHTED AVERAGE SHARES
OUTSTANDING:
BASIC 8,662 9,363 8,652 9,345
DILUTED 8,821 9,648 8,807 9,621
BALANCE SHEET DATA
JULY 31, OCTOBER 31,
1999 1998
(Unaudited) (Unaudited)
CURRENT ASSETS $ 312,858 $ 257,610
TOTAL ASSETS 438,136 361,733
CURRENT LIABILITIES 138,213 107,348
LONG-TERM DEBT 169,452 135,051
TOTAL LIABILITIES 312,608 246,768
SHAREHOLDERS' EQUITY 125,528 114,965
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