Ceradyne, Inc. Reports Second Quarter and Six-Month 2005 Results; Sales, Net Income, New Orders and Backlog for Quarter, Six Months Reach Record Levels.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 Ceradyne, Incorporated, NASDAQ: CRDN is a Costa Mesa, California, USA, manufacturer of ceramics products traded on the NASDAQ Stock Market. Ceradyne researches and produces varieties of ballistic armor for both personnel and vehicles. , Inc. (Nasdaq:CRDN CRDN Certified Restoration Drycleaning Network ) reported financial results for the second quarter and six months ended June 30, 2005, including record sales, record net income, record new orders and record 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 continued improvement in gross margins. Sales for the second quarter of 2005 rose to a record of $89.9 million, up from $39.2 million in the second quarter of 2004. Net income for the second quarter of 2005 increased to a record $11.4 million, or 46 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. This compares to net income of $6.5 million, or 26 cents per diluted share, in the second quarter of 2004. Fully diluted average shares outstanding for the second quarter were 24,926,000 compared to 24,462,000 in the same period in 2004. The earnings per share have been adjusted for the three for two stock split effective on January 18, 2005. Operations of our 2004 acquisition 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. , which have been consolidated since September 1, 2004, contributed $28.1 million to second quarter 2005 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 36.2% 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 second quarter 2005 versus 34.1% of net sales in the second quarter 2004. Provision for income taxes was 38.1% in second quarter 2005, compared to 38.3% in second quarter 2004. Sales for the six months ended June 30, 2005 reached a record $159.7 million, up from $75.9 million in the comparable period last year. Net income for the first six months of 2005 increased to a record $17.4 million, or 70 cents per diluted share, from $11.5 million, or 47 cents per diluted share, for the first six-month period in 2004. New bookings for the second quarter of 2005 were a record $118.5 million, compared to $33.7 million in the year-earlier quarter. New bookings for the first six months of 2005 increased to a record $175.0 million from last year's $67.3 million. Total backlog as of June 30, 2005 rose to $215.6 million compared to total backlog at June 30, 2004 of $95.9 million. Joel P. Moskowitz, Ceradyne president and chief executive officer, commented, "We are very pleased with the significant increase in our second quarter 2005 financial performance. The expansion of production capacity at our new 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. technical 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). manufacturing facility allowed us to exceed our second quarter 2005 shipment commitments to the U.S. Army for the ESAPI ESAPI Enhanced Small Arms Protective Inserts (bulletproof vests) ESAPI Encryption Services Application Programming Interface ESAPI Enterprise Security Application Programming Interface (Open Web Application Security Project) 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 product line. Additionally, Ceradyne's ESK Ceramics subsidiary located in Kempten, Germany contributed over 31% of our record sales, mostly in its non-military advanced technical ceramic product lines." Moskowitz further added: "We continue to make solid progress with the integration and performance of our August 2004 acquisition of ESK Ceramics and look forward to expanding its current and recently introduced technologies to existing and new products and markets. Our focus will be to create a technology and market-driven management team that will continue to drive our Company to world class status as a developer, manufacturer and distributor of advanced technical ceramics for defense as well as industrial, energy, and automotive/diesel applications. "To accomplish this, we are reviewing our R&D areas of emphasis and are developing an organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. that will serve as a catalyst in achieving the Company's goals to become more efficient and responsive to market demands." 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 2005 second quarter results. Investors or other interested parties may listen to the teleconference live via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the 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 about the Company can be found at 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 businesses 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, 2004, and its Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. , 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 Six Months
Ended Ended
June 30, June 30,
2005 2004 2005 2004
--------- -------- --------- --------
NET SALES $89,903 $39,225 $159,694 $75,911
Cost of product sales 57,353 25,831 105,247 50,865
--------- -------- --------- --------
GROSS PROFIT 32,550 13,394 54,447 25,046
--------- -------- --------- --------
Operating expenses:
Selling 5,495 797 10,294 1,508
General and administrative 5,192 2,723 9,737 5,330
Research and development 1,743 582 3,604 1,023
--------- -------- --------- --------
12,430 4,102 23,635 7,861
--------- -------- --------- --------
INCOME FROM OPERATIONS 20,120 9,292 30,812 17,185
Other income (expense):
Other income 35 1,214 399 1,443
Interest (expense) (1,744) - (3,115) -
--------- -------- --------- --------
(1,709) 1,214 (2,716) 1,443
INCOME BEFORE PROVISION
FOR INCOME TAXES 18,411 10,506 28,096 18,628
Provision for income taxes 7,011 4,024 10,711 7,134
--------- -------- --------- --------
NET INCOME $11,400 $6,482 $17,385 $11,494
========= ======== ========= ========
Earnings per share, basic $0.47 $0.27 $0.71 $0.48
Earnings per share, diluted $0.46 $0.26 $0.70 $0.47
Avg. shares outstanding, basic 24,500 24,068 24,497 23,990
Avg. shares outstanding, diluted 24,926 24,462 24,960 24,383
Condensed Consolidated Balance Sheets (in thousands):
June 30, 2005 December 31, 2004
------------------------------------
Cash and cash equivalents $2,628 $4,521
Short term investments 7,944 10,041
Other current assets 134,015 120,085
Net property, plant and equipment 152,382 162,278
Other assets 19,198 19,429
------------------------------------
Total Assets $316,167 $316,354
====================================
Current liabilities $55,198 $56,258
Long term debt 108,075 108,625
Non current liabilities 9,933 10,735
Deferred tax liability 6,987 5,695
Stockholders' equity 135,974 120,085
------------------------------------
Total Liabilities and
Stockholders Equity $316,167 $316,354
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