Chemfab Corporation Announces Fourth Quarter Results of $0.29 Per Share Diluted as Compared to $0.10 Per Share in the Fourth Quarter Last Year.Business Editors MERRIMACK, N.H.--(BUSINESS WIRE)--July 25, 2000 Chemfab Corporation (NYSE NYSE See: New York Stock Exchange :CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. )(www.chemfab.com) today announced fourth quarter results of $0.29 per share 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. as compared to $0.10 per share in the fourth quarter last year. The prior year's earnings included a special charge that reduced earnings by $0.38 per share diluted. The full year earnings were $1.19 per share as compared to $1.11 for fiscal year 1999 and $1.49 excluding the special charge. Consolidated revenues for the quarter ended June 30, 2000 were $33.6 million as compared to $28.9 million in the prior year quarter, an increase of 16.3%. Architectural revenues in the quarter were $1.3 million, down $4.0 million from the same quarter a year ago. The decline in architectural revenues was offset by strong growth of 15.0% in industrial and fabricated fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: product sales and the incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. sales from the Bivona acquisition. For the year ended June 30, 2000, consolidated revenues were $124.7 million compared to $126.4 million in the prior year, a decrease of 1.0%. Excluding the $19.8 million in revenues from the Tent City The term tent city covers a wide variety of usually temporary housing made of tents. Tent cities may originate spontaneously or be planned. Tents may or may be not comfortable but usually lack plumbing and sanitary facilities which tend to be communal. project last year, revenues increased 17%. Excluding the revenues from the Tent City project in fiscal 1999 and the Bivona acquisition in fiscal 2000, and using constant currencies, revenues for the full year would have increased 10% over the prior year. Gross profit margins 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. were 36.8% for the quarter up from 35.1% in the fourth quarter of 1999. For the full year gross profit margins increased to 35.4% from 33.0% last year. The improvement in gross margins is a result of the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of Bivona, the low margins associated with the Tent City project in fiscal year 1999, and manufacturing cost efficiencies gained as a result of the consolidation of our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations and the utilization of more efficient equipment in both the U.S. and European manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. . EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the year was $22.2 million as compared to $18.6 million for fiscal year 1999. The Company repaid approximately $6 million of bank borrowings since the end of its fiscal third quarter, demonstrating its continued ability to generate cash. Commenting on results for the fourth quarter and the year, Dr. John W. Verbicky, Chemfab's President and Chief Executive Officer said, "We were pleased with the strong revenue growth in industrial and fabricated products in the quarter. The timing of architectural projects however masked A state of being disabled or cut off. that strong growth." Verbicky added, "Bivona Medical Technologies continued to be a positive contributor to earnings in the quarter. We were also very pleased at the strong improvement in gross profit margins for the quarter and the full year." Commenting on the outlook for fiscal 2001 Dr. Verbicky said, "Margins should continue to improve in 2001 as the full benefit of our European consolidation activities is realized and with the full year impact of the Bivona acquisition. Revenue growth in industrial and elastomer elastomer (ĭlăs`təmər), substance having to some extent the elastic properties of natural rubber. The term is sometimes used technically to distinguish synthetic rubbers and rubberlike plastics from natural rubber. products is expected to be very solid while architectural revenues are expected to soften somewhat in the upcoming year. We expect strong double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" earnings growth for fiscal 2001 over fiscal 2000." Chemfab Corporation is a leader in the design, manufacture, fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. and marketing of value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. polymer-based products, which deliver outstanding performance in severe service and highly specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. operating environments In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. . Chemfab manufactures a broad range of high performance polymer based, reinforced and unreinforced fluoroplastics, fluoroelastomers, silicone silicone, polymer in which atoms of silicon and oxygen alternate in a chain; various organic radicals, such as the methyl group, CH3, are bound to the silicon atoms. elastomers and adhesives. The Company's products include laminates, films, coated fabrics, and tapes. The Company also produces molded mold 1 n. 1. A hollow form or matrix for shaping a fluid or plastic substance. 2. A frame or model around or on which something is formed or shaped. 3. Something that is made in or shaped on a mold. polymer products and fabricated finished articles from roll goods. Worldwide end-use applications are in electrical, food processing Food processing is the set of methods and techniques used to transform raw ingredients into food for consumption by humans or animals. The food processing industry utilises these processes. , biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. , protective clothing, electronics, communications, aerospace, architectural, other industrial markets and applications, medical electronics, personal care, healthcare, and specialty apparel markets. NOTE: This press 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. within the meaning 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. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from those projected or suggested due to certain risks and uncertainties. Additional information concerning risks and uncertainties that could cause actual results to differ materially from those projected or suggested, is contained in the Company's other press releases and filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or the Company upon request. The forward-looking statements contained herein represent the Company's judgment as of the date of this release, and the Company cautions readers not to place undue reliance on such statements.
Fourth Quarter Earnings Announcement, Fiscal 2000
CHEMFAB CORPORATION
CONSOLIDATED BALANCE SHEETS
Dollars in thousands 30-Jun-00 30-Jun-99
(Unaudited) (Audited)
Current assets:
Cash and cash equivalents $ 7,619 $ 4,783
Receivables:
Trade 23,158 25,020
Other 327 92
Inventories 27,526 19,649
Costs and estimated earnings
in excess of billings on
uncompleted contracts 1,865 958
Prepaid expenses and
other current assets 956 3,266
Deferred tax assets 2,423 1,248
Total current assets 63,874 55,016
Property, plant and equipment,
at cost 65,346 59,418
Less: accumulated depreciation (32,133) (29,466)
Property, plant and
equipment, net 33,213 29,952
Goodwill, net of amortization 32,442 19,297
Other assets 8,193 2,103
Deferred tax assets 2,995 --
Total assets $ 140,717 $ 106,368
Current liabilities:
Accounts payable and
accrued expenses $ 15,959 $ 14,974
Short term borrowings 16,184 11,028
Accrued income taxes 2,795 1,209
Billings in excess of
costs and estimated
earnings on uncompleted contracts 132 250
Total current liabilities 35,070 27,461
Long-term debt 21,000 --
Deferred tax liabilities 4,118 2,051
Other liabilities 819 --
Shareholders' equity:
Common stock, par value $.10 888 883
Additional paid-in capital 27,715 26,829
Retained earnings 79,132 69,972
Treasury stock, at cost (24,344) (19,012)
Accumulated other
comprehensive income (3,681) (1,816)
Total shareholders' equity 79,710 76,856
Total liabilities and
shareholders' equity $ 140,717 $ 106,368
Fourth Quarter Earnings Announcement, Fiscal 2000
CHEMFAB CORPORATION
CONSOLIDATED INCOME STATEMENTS
Dollars in thousands, Three Months Ended
except per share amounts 30-Jun-00 30-Jun-99
(Unaudited)
Net sales $33,646 $28,899
Gross profit 12,380 10,149
Gross margin % 36.8% 35.1%
Selling, general and
administrative expenses 6,775 4,642
Research and development 1,357 639
Other expense, net 175 27
Special charge 66 3,986
Interest expense, net 650 35
Income before taxes 3,357 820
Provision for income taxes 1,140 20
Net income $ 2,217 $ 800
Earnings per share of common stock:
-Basic $ 0.30 $ 0.10
-Diluted $ 0.29 $ 0.10
Weighted average common shares outstanding:
-Basic 7,470 7,759
-Diluted 7,525 7,942
Dollars in thousands, Year-to-Date
except per share amounts 30-Jun-00 30-Jun-99
(Unaudited) (Audited)
Net sales $ 124,735 $ 126,480
Gross profit 44,214 41,772
Gross margin % 35.4% 33.0%
Selling, general and
administrative expenses 24,722 21,295
Research and development 4,291 3,568
Other income, net (69) (55)
Special charge 508 3,986
Interest expense, net 1,486 267
Income before taxes 13,276 12,711
Provision for income taxes 4,116 3,775
Net income $ 9,160 $ 8,936
Earnings per share of common stock:
-Basic $ 1.21 $ 1.14
-Diluted $ 1.19 $ 1.11
Weighted average common shares outstanding:
-Basic 7,572 7,806
-Diluted 7,685 8,038
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