Ceradyne, Inc. Reports First-Quarter 2003 Results; New Orders, Backlog, Sales, Net Income Hit Record Levels.Business Editors 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.--(BUSINESS WIRE)--April 30, 2003 Ceradyne, Inc. (Nasdaq:CRDN CRDN Certified Restoration Drycleaning Network ) today reported financial results for the first quarter ended March 31, 2003. Sales for the quarter increased 31% to a record $19.2 million from $14.7 million in first quarter 2002. Net income was also a record at $1.5 million, a 161% increase from $579,000 for first-quarter 2002. Earnings per share this quarter were $0.17 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 vs. $0.07 per diluted share for the comparable year-ago quarter. The tax provision combining federal and state tax rates was 35% for both periods. New bookings for the quarter rose sharply to $29.1 million from $14.2 million in the first quarter of 2002. 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 also rose to $45.6 million, including $1.4 million of unexercised options, from approximately $27.5 million, including $1.7 million in unexercised options, in first-quarter 2002. Joel Moskowitz, Ceradyne president and chief executive officer, commented: "The recovery in gross margins to 26% from 20% a year ago, and substantial improvement in operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: to 12% from 6%, are the result of the Company's commitment to increase efficiency at all levels. The implementation of lean-measure initiatives, such as Demand Flow(R) Technology announced last year, has contributed to these positive results. "Looking ahead, we are seeing progressive activity related to sintered sin·ter n. 1. Geology A chemical sediment or crust, as of porous silica, deposited by a mineral spring. 2. A mass formed by sintering. v. sin·tered, sin·ter·ing, sin·ters v. reaction bonded silicon nitride (Si3N4) A silicon compound capable of holding a static electric charge and used as a gate element on some MOS transistors. (SRBSN SRBSN Sintered Reaction-Bonded Silicon Nitride ) diesel engine components, 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). missile radomes, and lightweight ceramic armor," Moskowitz continued. "This activity reflects our strategy to generate sustained growth through a diversified diversified (di·verˑ·s line of defense, industrial and consumer products with multi-year visibility. In response, management is reviewing various options for expanding current facilities and/or acquiring new facilities and equipment. We are especially weighing various factors to substantially reduce costs by locating new electric-energy intensive furnaces 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. , where utility rates are about one-third the rates in California." Moskowitz stated, "Due to the convergence of significantly higher flows of new orders in fourth-quarter 2002 and first-quarter 2003 totaling $54 million, record backlog, and, particularly, improving margins, management feels there is growing potential for 2003 sales and earnings to surpass earlier expectations." 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 2003 first quarter results. Investors or other interested parties may listen to the teleconference live via the Internet at www.ceradyne.com or www.CompanyBoardroom.com. These websites will also host an archive of the teleconference for 30 days. A telephonic playback Playback could mean:
Ceradyne develops, manufactures and markets advanced technical ceramic products and components for industrial, defense, consumer, microwave communications and automotive applications. Additional information about the Company can be found at www.ceradyne.com. Except for the historical information contained herein, certain matters discussed in this news release constitute 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 involve risks and uncertainties that could cause actual results to differ materially from those projected. The Company may use words such as "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions to identify forward-looking statements. Further 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, 2002, as filed with the Securities and Exchange Commission.
Below is a summary of audited comparative results.
Amounts in thousands except per share data.
Three Months Ended
March 31,
2003 2002
NET SALES 19,182 14,678
Cost of product sales 14,265 11,789
GROSS PROFIT 4,917 2,889
Operating expenses:
Selling 506 448
General and Administrative 1,636 1,138
Research and development 471 482
2,613 2,068
INCOME FROM OPERATIONS 2,304 821
Other income (expense):
Other income 32 82
Interest (expense) (10) (12)
22 70
INCOME BEFORE PROVISION (BENEFIT) FOR INCOME TAXES 2,326 891
Provision (benefit) for income taxes 814 312
NET INCOME $1,512 $579
Earnings per share, diluted $0.17 $0.07
Avg. shares outstanding, diluted 8,922 8,797
Condensed Consolidated Balance Sheets (in thousands):
March 31, Dec. 31,
2003 2002
Cash and Cash Equivalents $ 462 $ 350
Other Current Assets 37,341 34,773
Net Property, Plant and Equipment 18,561 18,660
Other Assets 1,511 1,511
Total Assets $ 57,875 $ 55,294
Current Liabilities $ 11,203 $ 10,354
Long term debt 33 58
Deferred Tax Liability 1,794 1,794
Stockholders' Equity 44,845 43,088
Total Liabilities and Stockholders' Equity $ 57,875 $ 55,294
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