Ceradyne, Inc. Reports 2004 Third Quarter, Nine-Month Results; Record-Level Results Continue.COSTA MESA Costa Mesa (kŏs`tə mā`sə), city (1990 pop. 96,357), Orange co., S Calif., on the Pacific south of Santa Ana; inc. 1953. It is a transportation, residential, and light industrial center. , Calif. -- Ceradyne, Inc. (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 :CRDN CRDN Certified Restoration Drycleaning Network ) today reported financial results for the third quarter and nine months ended September 30, 2004, including record sales, record net income and record new orders. Sales for the third quarter 2004 rose 108.3% to a record $56.3 million from $27.0 million in the third quarter of 2003. Net income for the third quarter 2004 increased to a record $7.3 million, or 44 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, compared to net income of $3.3 million, or 21 cents per diluted share, in the third quarter of 2003. Fully diluted average shares outstanding for the third quarter were 16,466,000 compared to 15,878,000 in the same period in 2003. Third quarter 2004 results include a pre-tax foreign currency gain of $0.9 million, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a forward exchange contract for a portion of the purchase price of ESK ESK Esperanto-Societo Kebekia (Quebec Esperanto Society) ESK Ekonomik Sosyal Konsey ESK Eisenschweinkader (German bicycle club) ESK Electronic SWO (Staff Weather Officer) Kit Ceramics ceramics (sərăm`ĭks), materials made of nonmetallic minerals that have been permanently hardened by firing at a high temperature, or objects made of such materials. . This gain was substantially offset by pre-tax expenses of $0.8 million incurred in connection with the acquisition of ESK Ceramics, which related primarily to the amortization of the backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. and step up of the inventory that was acquired from ESK. Operations of ESK Ceramics have been consolidated since September 1, 2004, and contributed $8.7 million to third quarter 2004 sales. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. increased to 31.9% of 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 in the third quarter of 2004 from 30.2% of net sales in the third quarter of 2003. Without the expenses relating to the step up of ESK's inventory and the backlog, the gross profit margin for the third quarter of 2004 would have been 33.4% of net sales. The provision for income taxes was 38.7% in the third quarter 2004, compared to 35.0% in the third quarter 2003. Sales for the nine months ended September 30, 2004 reached a record $132.2 million, up 93.5% from $68.3 million in the comparable period last year. Net income for the first nine months of 2004 increased to $18.8 million, or $1.15 per diluted share, on 16,328,000 shares, from $7.0 million, or 50 cents per diluted share, on 14,155,000 shares, for the nine-month period in 2003. Net income for the nine-months ended September 2004 was up 167.3% over the comparable period last year. New bookings for the third quarter of 2004 reached a record $63.9 million, compared to $52.3 million for the same period last year. For the first nine months of 2004, new bookings increased 30.9% to a record $131.7 million, compared to $100.6 million for the comparable period last year. Total backlog as of September 30, 2004 increased to a record $122.1 million (including $0.9 million of unexercised options) compared to total backlog at September 30, 2003 of $67.7 million (including $1.1 million of unexercised options). Joel P. Moskowitz, Ceradyne president and chief executive officer, commented: "The substantial increase in sales, net income, new orders and backlog is anticipated to lay the groundwork for a positive balance of 2004 and early 2005. Although much of the new business in the third quarter is for the Company's lightweight ceramic This article is about ceramic materials. For the fine art, see Ceramic art. The word ceramic is derived from the Greek word κεραμικός (keramikos). body armor Noun 1. body armor - armor that protects the wearer's whole body body armour, cataphract, coat of mail, suit of armor, suit of armour armet - a medieval helmet with a visor and a neck guard , we continue to implement a longer-range strategic plan intended to provide a more balanced product offering in the future. "The single most important accomplishment towards this diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. goal was the recent acquisition of ESK Ceramics (ESK) in Kempten, Germany. While Ceradyne (USA) had over 65% of its sales in defense products, ESK (Germany) had less than 3% defense product shipments." Moskowitz further commented: "Ceradyne is also expanding its defense related capacity and products, particularly in the field of military vehicle armor systems, as well as state-of-the-art body armor. This effort includes a Washington, D.C. area office and soon to be announced To be announced (TBA) A contract for the purchase or sale of an MBS to be delivered at an agreed-upon future date but does not include a specified pool number and number of pools or precise amount to be delivered. Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). vehicle prototype and engineering facility. "The Company's previously announced Lexington, Kentucky Lexington, Kentucky, United States, known as the "Horse Capital of the World," is located in the heart of the Bluegrass region. It is the second-largest city in Kentucky, after Louisville, Kentucky,[1] and the 68th largest in the United States. manufacturing plant expansion is moving forward with production of silicon nitride (Si3N4) A silicon compound capable of holding a static electric charge and used as a gate element on some MOS transistors. diesel engine components, as well as lightweight ceramic armor plates scheduled for later this year." Ceradyne will host a conference call today at 8:00 a.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT to discuss its 2004 third quarter results. Investors or other interested parties may listen to the teleconference live via the Internet at www.ceradyne.com or www.Fulldisclosure.com. These web sites will also host an archive of the teleconference. A telephonic playback Playback could mean:
Ceradyne develops, manufactures and markets advanced technical ceramic products and components for defense, industrial, automotive/diesel and commercial applications. Additional information can be found at the Company's web site: www.ceradyne.com. Except for the historical information contained herein, this news release contains 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. regarding future events and the future performance of Ceradyne that involve risks and uncertainties that could cause actual results to differ materially from those projected. Words such as "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions are intended to identify forward-looking statements. These risks and uncertainties include the ability of Ceradyne to successfully integrate the Ceradyne and ESK business and achieve anticipated operating synergies, and fluctuations between the value of the dollar and Euro. Other risks and uncertainties are described in the Company's Annual Report on 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. for the fiscal year ended December 31, 2003, and its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended June 30, 2004 as filed with the Securities and Exchange Commission.
Below is a summary of unaudited comparative results. Amounts in
thousands except per share data.
Three Months Nine Months Ended
Ended
September 30, September 30,
2004 2003 2004 2003
------- -------- -------- --------
NET SALES $56,329 $27,043 $132,240 $68,331
Cost of product sales 38,373 18,870 89,238 48,947
------- -------- -------- --------
GROSS PROFIT 17,956 8,173 43,002 19,384
------- -------- -------- --------
Operating expenses:
Selling 2,064 627 3,572 1,707
General and
administrative 3,698 1,984 9,028 5,489
Research and
development 858 575 1,881 1,506
------- -------- -------- --------
6,620 3,186 14,481 8,702
------- -------- -------- --------
INCOME FROM OPERATIONS 11,336 4,987 28,521 10,682
Other income (expense):
Other income 948 89 2,391 164
Interest expense (382) (4) (382) (32)
------- -------- -------- --------
566 85 2,009 132
INCOME BEFORE PROVISION
FOR INCOME TAXES 11,902 5,072 30,530 10,814
Provision for income
taxes (4,608) (1,775) (11,742) (3,785)
------- -------- -------- --------
NET INCOME $7,294 $3,297 $18,788 $7,029
======= ======== ======== ========
Earnings per share, basic $0.45 $0.21 $1.17 $0.51
Earnings per share, diluted $0.44 $0.21 $1.15 $0.50
Avg. shares outstanding, basic 16,202 15,485 16,063 13,763
Avg. shares outstanding, diluted 16,466 15,878 16,328 14,155
Condensed Consolidated Balance Sheets (in thousands):
September December
30, 2004 31, 2003
--------- ---------
Cash and Cash Equivalents $3,100 $11,462
Short Term Investments $10,158 $19,202
Other Current Assets 106,170 44,407
Net Property, Plant and Equipment 149,249 27,625
Other Assets 19,107 1,511
--------- ---------
Total Assets $287,784 $104,207
========= =========
Current Liabilities $53,797 $14,552
Long Term Debt 110,000 -
Deferred Tax Liability 3,418 2,878
Non Current Liabilities 8,598 -
Stockholders' Equity 111,971 86,777
--------- ---------
Total Liabilities and
Stockholders' Equity $287,784 $104,207
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