Chemfab Corporation Announces Record Fourth Quarter and Full Year Fiscal 1997 Results.MERRIMACK, N.H.--(BUSINESS WIRE)--Aug. 7, 1997-- Montopoli to Step Down as CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. ; Verbicky to Succeed Him 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. ) today announced that sales and earnings reached record levels for its fourth quarter and full year ended June 30, 1997. Net income for the fourth quarter was a record $2,961,000, or $.36 per share, up 17% and 16%, respectively, over comparable amounts for the same quarter in the prior year. Worldwide sales for the quarter rose 11% to a record $25.3 million from $22.7 million in the fourth quarter a year ago. Year ago fourth quarter net income was $2,521,000, or $.31 per share. For the full year ended June 30, 1997, net income reached a record $9,105,000 or $1.10 per share, up 18% and 17%, respectively, over comparable amounts for the preceding fiscal year. Worldwide sales for the year increased 8% to a record $90.8 million from $83.9 million in the prior year. Year ago full year net income was $7,714,000, or $.94 per share. Commenting on the results for the quarter, Duane C. Montopoli, Chemfab's President and Chief Executive Officer, said, "The Company's solid fourth quarter performance caps off another excellent year. 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" sales growth was achieved for the quarter due to continued strong demand for the Company's 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: products worldwide and comparatively higher sales of architectural products. Also, our Canton Bio-Medical subsidiary again posted higher sales and substantially higher profits versus the same quarter a year ago." Commenting on the outlook for fiscal 1998, Mr. Montopoli added, "Demand for industrial and fabricated products is expected to remain strong, and the outlook for architectural product sales has improved considerably. Based on these factors, we expect a sales growth rate for fiscal 1998 that is higher than was achieved this past year and a strong double-digit percentage increase in earnings per share for the full year." The Company also announced that Mr. Montopoli has informed the Board of Directors that he intends to end his employment with the Company effective on or about December 31 of this year, and that the Board has named Dr. John Dr. John (also Dr. John Creaux) is the stage name of Malcolm John Rebennack Jr. (born November 21, 1940), a colorful pianist, singer, and songwriter, whose music spans, and often combines, blues, boogie woogie, and rock and roll. W. Verbicky, currently the Company's Executive Vice President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , to succeed him as President and CEO at that time. Mr. Montopoli will remain on the Company's Board of Directors and, effective with the CEO change, current outside director Nicholas Pappas will fill the newly-established office of Chairman of the Board. Commenting on his decision to end his tenure as CEO, Mr. Montopoli, 48, said, "I have long held the view that no one should be CEO of anything for more than about ten years, and I have now been CEO of Chemfab for eleven years. It's been a great run which I have thoroughly enjoyed. The Company is performing very well, its future prospects are bright, and John Verbicky is well-qualified and ready to take over the reins reins pl.n. The kidneys, loins, or lower back. of the business. This is the right time for me to move on to seek new and different challenges. I am pleased, however, that I will be able to stay close to the business, and continue working with John, through my participation on the Board." Dr. Verbicky holds a Ph.D. in organic chemistry from the Georgia Institute of Technology Georgia Institute of Technology, in Atlanta, Ga.; coeducational; state supported; chartered 1885, opened 1888. It is a member school in the university system of Georgia. Significant among its facilities and programs are the Frank H. . He joined Chemfab in 1993 as Vice President - Research & Development, after having gained 14 years of experience with General Electric. In April, 1994, Dr. Verbicky assumed the position of Vice President - U.S. Business Group, and in March, 1996, he was promoted to his present position of Executive Vice President and Chief Operating Officer. Commenting on his pending promotion, Dr. Verbicky, 45, said, "I am extremely pleased and excited at the prospect of leading Chemfab into the 21st century. Our challenge and focus going forward will be to accelerate the Company's rate of profitable growth while extending the range of products and markets that will shape the future of our business." Chemfab Corporation is a world leader in polymer-based engineered products and materials systems Materials system is an advanced type of texture mapping that allows for objects in video games to simulate different types of materials in real life. This makes it so that the texture not only contains graphical data, but references for sound data and physics data (such as density). for use in severe service environments. Chemfab's principal core competence Core competence Primary area of expertise. Narrowly defined fields or tasks at which a company or business excels. Primary areas of specialty. is in the design, manufacture and fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. of flexible fiber-reinforced fluoropolymer A fluoropolymer is a polymer that contains atoms of fluorine. It is characterized by a high resistance to solvents, acids, and bases. Fluoropolymers were discovered serendipitously in 1938 by Dr. Roy J. Plunkett. composite materials composite material or composite, any material made from at least two discrete substances, such as concrete. Many materials are produced as composites, such as the fiberglass-reinforced plastics used for automobile bodies and boat hulls, but the which comprise, in whole or in part, the majority of its products. The Company also produces and sells specialty fluoropolymer films and silicone-based products. Worldwide end-use applications are in electrical, environmental, 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. , architectural, aerospace, communications, protective clothing and other industrial markets. -0- 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 An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested due to certain risks and uncertainties including, without limitation, the impact of changes in currency exchange rates on sales and margins. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained 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 June 30, 1996 which has been filed with the Securities and Exchange Commission. The forward-looking statements contained herein represent the Company's judgement as of the date of this release, and the Company cautions readers not to place undue reliance on such statements.
Chemfab Corporation
Consolidated Income Statements
Quarter Ended
06/30/97 06/30/96
(unaudited) (unaudited)
Net Sales $25,272,000 $22,717,000
Gross Profit 8,863,000 7,931,000
Selling, General and
Administrative Expenses 4,075,000 3,637,000
Research and Development 634,000 540,000
Other (Income) Expense, Net (45,000) 36,000
Interest (Income) Expense, Net (92,000) 46,000
Income Before Taxes 4,291,000 3,672,000
Provision for Income Taxes 1,329,000 1,151,000
Net Income $2,962,000 $2,521,000
Earnings Per Share $0.36 $0.31
Weighted Average Common and
Common Equivalent Shares 8,304,000 8,244,000
-0-
Fiscal Year Ended
06/30/97 06/30/96
(unaudited)
Net Sales $90,783,000 $83,882,000
Gross Profit 30,944,000 28,109,000
Selling, General and
Administrative Expenses 15,539,000 14,157,000
Research and Development 2,498,000 2,270,000
Other (Income) Expense, Net (213,000) 51,000
Interest (Income) Expense, Net (180,000) 477,000
Income Before Taxes 13,300,000 11,154,000
Provision For Income Taxes 4,194,000 3,440,000
Net Income $9,106,000 $7,714,000
Earnings Per Share $1.10 $0.94
Weighted Average Common and
Common Equivalent Shares 8,278,000 8,199,000
CONTACT: Chemfab Corp. Moosa E. Moosa, 603-424-9000 x2302 |
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