Chemfab Corporation Announces Second Quarter Earnings Per Share Up 29% Revenues for the Quarter Up 11.5%.Business/Technology Editors MERRIMACK Merrimack, river, United States Merrimack, river, c.110 mi (180 km) long, formed at Franklin, S central N.H., by the junction of the Pemigewasset (rising in the White Mts.) and Winnipesaukee rivers. It flows S past Concord and Manchester into NE Mass. , N.H.--(BUSINESS WIRE)--Jan. 20, 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. ) today announced that its second quarter revenues were $31.1 million, up 11.5% over the same period in the prior year. Measured in constant foreign currency rates, sales for the quarter would have increased by 13.9%. Excluding revenues from 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. in the prior year, revenues for the current quarter were up 26% over the prior year. Gross profit for the quarter was 34.5% up from 33.9% in the prior year mainly as a result of product mix. Net income for the second quarter, which ended December December: see month. 26, 1999, was $3,054,000 or $0.40 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. , compared with $2,508,000 or $0.31 per share diluted, for the same quarter a year ago. For the twenty-six weeks ended December 26, 1999, the first half of fiscal 2000, net income per share diluted increased 9.8%, from $0.61 to $0.67, on net income of $5,204,000, compared with $4,901,000, in the prior year. Worldwide sales for the first half of fiscal 2000 increased 7.6% to $57.1 million from $53.1 million. Measured in constant foreign currency rates, sales for the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. increased by 9.6%. Excluding revenues from Tent City in the prior year, revenues for the first half of fiscal 2000 were up by 14.4% over the prior year. Gross profit for the year-to-date was 35.1% up from 33.7% in the prior year. Commenting on the results for the second quarter John W. Verbicky, Chemfab's President and Chief Executive Officer said, &uot;Our second quarter revenues benefited from growth across all our industrial product lines. In particular, we experienced strong sales growth in our Asia Pacific Business Group and Canton Canton, cities, United States Canton. 1 City (1990 pop. 13,922), Fulton co., W central Ill., in the corn belt; inc. 1849. It is a trade and industrial center for a coal and farm area. 2 Town (1990 pop. 18,530), Norfolk co. Biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. Business unit. Architectural sales were strong in the second quarter as expected, and more than offset the loss of $3 million of Tent City revenues from the prior year&uot;. Verbicky added, &uot;We continued to see improvement in 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. in the second quarter due to product mix and other efficiencies&uot;. Commenting on the outlook for the balance of the year, Dr. Verbicky stated, &uot;We continue to expect fiscal 2000 to generate record revenues despite the loss of nearly $20 million of Tent City sales recorded last year. As a result, we expect third quarter revenues to reflect an approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. 20% reduction in sales, relative to prior year. However, despite this revenue reduction we fully expect profit levels to be at or near last year's third quarter results. We also expect to see the continued strengthening of our gross profit margins in the second half of fiscal 2000 driven by our consolidation and productivity initiatives and an increased proportion of revenues from higher margin products&uot;. 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 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: finished articles from roll goods. Worldwide end-use applications are in medical, 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, protective clothing, electronics, communications, aerospace, architectural and other industrial markets and applications. 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, transition and assimilation Assimilation The absorption of stock by the public from a new issue. Notes: Underwriters hope to sell all of a new issue to the public. See also: Issuer, Underwriting Assimilation issues in the acquisition process, customer reaction to the acquisition, and operational and other risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the combination of separate businesses. Additional information concerning certain other 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
Second Quarter Earnings Announcement, Fiscal 2000
CHEMFAB CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands) Dec. 26, 1999 June 30, 1999
(Unaudited) (Audited)
Current assets:
Cash and cash equivalents $ 3,161 $4,783
Receivables:
Trade 27,454 25,020
Other 75 92
Costs and estimated earnings in excess of
billings on uncompleted contracts 2,134 958
Inventories 22,841 19,649
Prepaid expenses and other current assets 2,244 3,266
Deferred tax assets 1,248 1,248
Total current assets 59,157 55,016
Property, plant and equipment, at cost 61,281 59,418
Less: accumulated depreciation (30,713) (29,466)
Property, plant and equipment, net 30,568 29,952
------ ------
Goodwill, net of amortization 23,103 19,297
Other assets 2,114 2,103
Total assets $ 114,942 $ 106,368
Current liabilities:
Accounts payable and accrued expenses $ 17,411 $ 14,974
Short term borrowings 12,632 11,028
Accrued income taxes 3,000 1,209
Billings in excess of costs and estimated
earnings on uncompleted contracts 75 250
Total current liabilities 33,118 27,461
Other liabilities $ 1,115 $ --
Deferred tax liabilities 2,394 2,051
Shareholder's equity:
Common stock, par value 888 883
Additional paid-in capital 27,468 26,829
Retained earnings 75,176 69,972
Treasury stock, at cost (23,464) (19,012)
Accumulated other comprehensive income (1,753) (1,816)
------ -------
Total shareholder's equity 78,315 76,856
Total liabilities and shareholders' equity $ 114,942 $ 106,368
Second Quarter Earnings Announcement, Fiscal 2000
CHEMFAB CORPORATION
CONSOLIDATED INCOME STATEMENTS
Three Months Ended
Dollars in thousands, except
per share amounts Dec. 26, 1999 Dec. 27, 1999
(Unaudited)
Net sales $ 31,109 $ 27,892
Gross profit 10,728 9,462
Gross margin % 34.5% 33.9%
Selling, general and administrative expenses 5,496 5,070
Research and development 869 796
Other income, net (41) (36)
Interest expense (income), net 40 (25)
Income before taxes 4,364 3,657
Provision for income taxes 1,310 1,149
Net income $ 3,054 $ 2,508
Earnings per share of common stock:
- Basic $ 0.40 $ 0.32
- Diluted $ 0.40 $ 0.31
Weighted average common shares outstanding:
- Basic 7,597 7,839
- Diluted 7,726 8,087
Year-to-Date
Dec. 26, 1999 Dec. 27, 1999
(Unaudited)
Net sales $ 57,147 $ 53,125
Gross profit 20,044 17,899
Gross margin % 35.1% 33.7%
Selling, general and administrative expenses 10,797 9,324
Research and development 1,581 1,656
Other (income) expense, net 112 (160)
Interest expense (income), net 119 (128)
Income before taxes 7,435 7,207
Provision for income taxes 2,231 2,306
Net income $ 5,204 $ 4,901
Earnings per share of common stock:
- Basic $ 0.68 $ 0.63
- Diluted $ 0.67 $ 0.61
Weighted average common shares outstanding:
- Basic 7,648 7,828
- Diluted 7,795 8,096
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