Coastcast Reports First-Quarter Results.RANCHO ran·cho n. pl. ran·chos Southwestern U.S. 1. A hut or group of huts for housing ranch workers. 2. A ranch. DOMINGUEZ, Calif.--(BUSINESS WIRE)--April 16, 1998-- Coastcast Corp. (NYSE NYSE See: New York Stock Exchange :PAR) reported financial results for the quarter ended March 31, 1998. For the first quarter of 1998, sales were $45,321,000 vs. $29,001,000 in the same period a year ago, an increase of 56 percent. Net income was $4,018,000 compared with $1,198,000 in the first quarter of 1997, and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.44 compared with $0.13 a year ago. Commenting on the quarter, Dick Mora MORA, In civil law. This term, in mora, is used to denote that a party to a contract, who is obliged to do anything, has neglected to perform it, and is in default. Story on Bailm. Sec. 123, 259; Jones on Bailm. 70; Poth. Pret a Usage, c. 2, Sec. 2, art. 2, n. , President and Chief Executive Officer, credited the strong top- and bottom-line results to increased sales volume and product mix. "Gross profit continued to improve and our ongoing program of cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. led to an improvement in operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. ," Mora said. "With a strong 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. , we hope to see good operating results during the second quarter." Mora also reported that the Company recently took possession of a new 186,000 square-foot facility, first announced last September, in Tijuana, Mexico. Designed and built to the Company's specifications, it is expected to be fully operational in the fourth quarter and will add substantially to the Company's foundry A semiconductor manufacturer that makes chips for third parties. It may be a large chip maker that sells its excess manufacturing capacity or one that makes chips exclusively for other companies. capacity. As previously noted, most of the costs associated with the start-up of the new facility are not expected to have a significant impact on financial results. This addition will bring the total facilities under roof to 557,000 square feet. Over the years, Coastcast has grown to be a leading manufacturer of golf clubheads. It produces metal woods, irons and putters in a variety of metals including stainless steel stainless steel: see steel. stainless steel Any of a family of alloy steels usually containing 10–30% chromium. The presence of chromium, together with low carbon content, gives remarkable resistance to corrosion and heat. and titanium titanium (tītā`nēəm, tĭ–) [from Titan], metallic chemical element; symbol Ti; at. no. 22; at. wt. 47.88; m.p. 1,675°C;; b.p. 3,260°C;; sp. gr. 4.54 at 20°C;; valence +2, +3, or +4. . The customer list includes some of the finest names in golf including Callaway, Cleveland, Cobra, Daiwa, Odyssey Odyssey (ŏd`ĭsē): see Homer. Odyssey Homer’s long, narrative poem centered on Odysseus. [Gk. Lit.: Odyssey] See : Epic Odyssey , Taylor Made, Titleist, and Wilson. The Company also manufactures a variety of investment-cast orthopedic orthopedic /or·tho·pe·dic/ (-pe´dik) pertaining to the correction of deformities of the musculoskeletal system; pertaining to orthopedics. implants and surgical tools that are made to customers' specifications. Except for the historical information contained in this release, other statements in this release are 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. made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions 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. Actual results may differ materially from those projected in the forward-looking statements as a result of risk factors and/or factors affecting future results detailed in the Company's Securities and Exchange Commission filings. -0-
COASTCAST CORP.
FINANCIAL HIGHLIGHTS
($ in 000s, except share data)
(Unaudited)
Income Statement Summary
Quarter Ended March 31, 1998 1997
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Sales $ 45,321 $ 29,001
Cost of sales $ 35,672 $ 24,976
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Gross profit $ 9,649 $ 4,025
Selling, general & administrative expense $ 3,077 $ 2,184
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Income from operations $ 6,572 $ 1,841
Other income, net $ 356 $ 172
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Income before provision for income taxes $ 6,928 $ 2,013
Provision for income taxes $ 2,910 $ 815
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Net income $ 4,018 $ 1,198
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Net income per share - basic $ 0.45 $ 0.14
Weighted average shares outstanding
- basic 8,892,761 8,784,181
Net income per share - diluted $ 0.44 $ 0.13
Weighted average shares outstanding
- diluted 9,230,982 8,971,031
COASTCAST CORP.
FINANCIAL HIGHLIGHTS --- 2
($ in thousands)
Balance Sheet Summary
At March 31, 1998 Dec. 31, 1997
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Assets (Unaudited)
Cash & cash equivalents $ 30,585 $ 28,187
Accounts receivable --- net $ 17,985 $ 12,893
Inventories $ 20,419 $ 21,208
Prepaid expenses and other current assets $ 5,199 $ 4,527
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Total current assets $ 74,188 $ 66,815
Property, plant & equipment --- net $ 20,729 $ 19,079
Other assets $ 4,314 $ 4,131
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Total assets $ 99,231 $ 90,025
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Liabilities and Shareholders' Equity
Total current liabilities $ 13,188 $ 10,020
Deferred compensation $ 1,978 $ 1,614
Shareholders' equity $ 84,065 $ 78,391
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Total liabilities and equity $ 99,231 $ 90,025
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CONTACT: Coastcast Corp., Rancho Dominguez Dick Mora, 310/638-0595 |
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