Code-Alarm posts improved first-quarter profit; improved margins, cost-management yield earnings increase.MADISON HEIGHTS Madison Heights, city (1990 pop. 32,196), Oakland co., SE Mich., a suburb of Detroit; inc. 1955. With the decline of the regional auto industry, the city has become a technology center for companies from a number of industries. , Mich.--(BUSINESS WIRE)--May 15, 1997--Code-Alarm Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :CODL) today reported a return to profitability, posting a significant improvement in gross margin and higher net income in the quarter ended March 31, 1997. The Madison Heights, Mich.-based manufacturer of vehicle security products recorded net income of $113,000, or 5 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , on 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 of $15.8 million in the first quarter of 1997, compared with net income of $49,000, or 2 cents per share, on net sales of $16.6 million in the first quarter last year. "We are pleased with the progress we made in the first quarter, following the significant loss we posted in 1996," Code-Alarm President and 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. Rand Mueller said. "Our North American operation North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. posted one of its best-ever quarters of 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. on slightly higher sales in the first quarter. We are realizing immediate benefits from the recent decision to focus our operations in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , with global sales and product support through our U.S. staff and overseas distributors. This renewed focus is enabling us to manage the business more cost-effectively and provide better service to our core automotive and aftermarket customers around the world." Code-Alarm reported North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. sales were up slightly vs. the year-ago period, reflecting a 6.7 percent increase in sales to automotive original equipment manufacturers and a double-digit gain in direct sales to international dealers. The company attributed its decline in first-quarter net sales to weaknesses in the French market, which the company now supplies through North America. Code-Alarm said the 1997 first-quarter results include a writedown of approximately $1.0 million related to the company's European operations. As previously announced, Code-Alarm is divesting its European unit to focus resources on its profitable North American operations. Mueller continued, "We are currently negotiating with a buyer for the assets of one of our European operations, and have placed the remainder of our European assets in receivership. If we can successfully complete these transactions, this should minimize any future financial impact to Code-Alarm from further writedowns related to our European operations." Commenting on the financial results, Chief Financial Officer Craig Camalo said: "Gross margin increased 250 basis points to 38.2 percent in the first quarter, vs. 35.7 percent in the year-ago quarter, reflecting improved productivity and a change in product mix. Though operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was down slightly from last year's first quarter, due primarily to increased European writedowns and legal expenses, North American operating income rose to $1.5 million in the quarter. Additionally, our improved profitability helped generate an increase of nearly $1.3 million in cash flow from operating activities vs. last year's first quarter. Positive cash flow is allowing us to reduce borrowings and make the necessary investments to grow the business." Code-Alarm Inc. is one of the world's leading manufacturers of electronic vehicle security devices. The company manufactures factory-label vehicle security systems for Ford, Chrysler, General Motors, Subaru, Mitsubishi, Volkswagen-Audi, Peugeot, Citroen, Renault and other automakers. The company also sells vehicle security systems under the Code-Alarm and Chapman brand names at over 2,000 locations worldwide. CONTACT: Code-Alarm Inc. Rand Mueller or Craig S. Camalo, 810/583-9620 or Seyferth & Associates Inc. Brian Edwards or Jeff Lambert, 800/435-9539 SeyferthPR@aol.com |
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