Ceradyne, Inc. Reports First Quarter 2006 Financial Results; Sales, Earnings, New Orders and Backlog Reach Record Levels; Margins Rise.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. (Company) (Nasdaq:CRDN CRDN Certified Restoration Drycleaning Network ) reported record financial results for the first quarter ended March 31, 2006. 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 increased 95.4% to a record $136.3 million from $69.8 million in first-quarter 2005. Net income, which increased 311.2%, was a record $24.6 million, or 90 cents per fully 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 $6.0 million, or 24 cents per fully diluted share, for first-quarter 2005. Fully diluted average shares outstanding for the quarter were 27.4 million, compared to 24.9 million for the same period in 2005. The average number of shares increased due primarily to the offering of 2,070,000 shares in December 2005. 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. was 39.6% of net sales, compared to 31.4% of net sales in first-quarter 2005. Provision for income taxes was 36.5%, compared to 38.2% in the first quarter of 2005. New bookings were $154.7 million, compared to $56.6 million in first-quarter 2005. 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. at the end of the quarter was $294.8 million, compared to approximately $186.7 million in first-quarter 2005. Joel Moskowitz, Ceradyne chief executive officer, commented: "The strong results for first-quarter were due in good part to the Company's new production capacity, particularly in 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. . This added capacity reflects continuing demand for E-SAPI and related 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 components, including initial shipments of enhanced side ballistic bal·lis·tic adj. 1. a. Of or relating to the study of the dynamics of projectiles. b. Of or relating to the study of the internal action of firearms. 2. inserts (ESBI ESBI Enhanced-Side Ballistic Inserts ESBI Enhanced Services Billing, Inc. ESBI Electricity Supply Board International (Ireland) ESBI Educational Subject Block Index ), or side plates, against the $70 million contract announced in January. The record backlog and positive first quarter book to bill ratio of 1.13:1 indicate continuing strength in 2006 operations. Good production yields and higher absorption of overhead on an increased sales base resulted in higher gross and operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: ." Moskowitz added: "Ceradyne management will continue to implement its strategy of maximizing opportunities from ongoing demand for body and other armor, and generating additional growth from opportunities for advanced technical ceramic products in industrial markets. We are also evaluating strategic acquisitions that would support future growth." 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 2006 first-quarter results, guidance for 2006, and outlook for armor in 2007. Investors or other interested parties may listen to the teleconference live via the Internet at www.ceradyne.com or www.earnings.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 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, 2005, as filed with the U.S. Securities and Exchange Commission.
Below is a summary of unaudited comparative results. Amounts in
thousands except per share data.
Three Months Ended
March 31,
2006 2005
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NET SALES $ 136,347 $ 69,791
Cost of product sales 82,362 47,894
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GROSS PROFIT 53,985 21,897
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Operating expenses:
Selling 5,774 4,799
General and administrative 6,996 4,545
Research and development 2,522 1,861
----------- -----------
15,292 11,205
----------- -----------
INCOME FROM OPERATIONS 38,693 10,692
Other income (expense):
Other income 1,078 364
Interest (expense) (1,028) (1,371)
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50 (1,007)
INCOME BEFORE PROVISION
FOR INCOME TAXES 38,743 9,685
Provision for income taxes 14,130 3,700
----------- -----------
NET INCOME $ 24,613 $ 5,985
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Earnings per share, basic $ 0.92 $ 0.24
Earnings per share, diluted $ 0.90 $ 0.24
Average shares outstanding, basic 26,801 24,494
Average shares outstanding,
diluted 27,385 24,930
Condensed Consolidated Balance Sheets (in thousands):
March 31, December 31,
2006 2005
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Cash, cash equivalents and investments $ 125,499 $ 99,381
Other current assets 183,592 155,836
Net property, plant and equipment 158,605 153,259
Other assets 21,745 21,717
------------ ------------
Total assets $ 489,441 $ 430,193
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Current liabilities $ 72,702 $ 42,908
Long term debt 121,000 121,000
Non current liabilities 11,834 11,229
Deferred tax liability 4,492 4,536
Stockholders' equity 279,413 250,520
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Total liabilities and stockholders' equity $ 489,441 $ 430,193
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