Coleman Reports Full Year and Fourth Quarter Results;.WICHITA, KS--(BUSINESS WIRE)--February 19, 1998-- Restructuring Program is Virtually Complete With Sale of Safety & Security Business Improved Gross Margin Trend Expected to Continue New Products Well Received by Trade, Expected to Promote Growth in 1998 The Coleman Company This article is about the Coleman Company, suppliers of recreational equipment. For other uses of the word Coleman, see Coleman (disambiguation) Coleman Company, Inc. is a company that makes camping gear. It was founded by W. C. , Inc. (NYSE NYSE See: New York Stock Exchange : CLN CLN Clean CLN Community Learning Network CLN Colon CLN Celsion Corporation CLN Class Library for Numbers CLN Credit Linked Note CLN Comitato di Liberazione Nazionale (Committee of National Liberation) CLN Corn Lethal Necrosis ) today reported financial results for the full year and fourth quarter of 1997. Full Year Results Coleman said basic earnings per share, excluding restructuring costs and the effect of the inventory reduction in Japan, for the year ending December 31, 1997 were $0.44, compared to basic earnings per share, before restructuring costs and extraordinary charges, of $0.21 for the same period in 1996. The net loss after restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and the effect of the inventory reduction in Japan for 1997 was $2.5 million, compared to a loss, after restructuring and extraordinary charges of $41.9 million, in 1996. On a per share basis, the basic net loss after restructuring charges and inventory reduction for 1997 was $0.05, compared to a basic net loss after restructuring and extraordinary charges of $0.79 for 1996. 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 for 1997 were $1.154 billion, compared to $1.220 billion for 1996. Coleman said that net sales for 1997 declined slightly from the prior year as a result of a previously announced reduction in the number of SKUs (stock keeping units), previously announced slower sales in Japan, softness in Korea and other Asian countries Noun 1. Asian country - any one of the nations occupying the Asian continent Asian nation country, land, state - the territory occupied by a nation; "he returned to the land of his birth"; "he visited several European countries" and weather related conditions. Fourth Quarter Results In the fourth quarter of 1997, net sales were $222.9 million, as compared to $224.4 million in the same period of 1996. Net loss after restructuring charges for the 1997 quarter was $5.3 million, or a basic net loss of $0.10 per share, compared to a loss of $35.9 million or a basic net loss of $0.67 per share, in the fourth quarter of 1996. The fourth quarter of 1997 was adversely impacted by Southeast Asian economic conditions, particularly softness in the Korean Eastpak business. Sales in our Eastpak division were approximately $2.5 million below expectations, resulting in an earnings shortfall of approximately $0.02 per share. Restructuring Virtually Complete, Gross Margins Improve The Company said that the sale of Coleman's safety and security business to Siebe plc, announced yesterday, is the last significant piece of its restructuring program to be put in place. As a result of its restructuring program, which is now virtually complete, the Company has been able to improve gross margins while reducing SG&A expenses. In the 4th quarter of 1997, gross margins before restructuring charges improved to 27.3% from 19.5% in the same period in 1996. Coleman expects to continue benefiting in 1998 from the cost saving measures, including aggressive debt reduction, instituted as part of its 1997 restructuring program. Coleman announced that in the year ended December 31, 1997, it had reduced debt by more than $75 million. This figure does not include the use of any of the proceeds from the sale of its safety and security business to Siebe plc for $105 million. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from this divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). will be used for debt reduction and selective investments in the Company's core businesses. "1997 was a year of transformation for Coleman, during which we undertook significant steps to streamline our business, cut costs, considerably reduce our debt, and divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. non-strategic assets," said Jerry W. Levin lev·in n. Archaic Lightning. [Middle English levene, levin; see leuk- in Indo-European roots.] , Chairman and Chief Executive Officer. "We have a strong group of core assets in place and are now starting to reap the rewards of our restructuring efforts. "The last major step in the restructuring process is the sale of our safety and security business announced yesterday. All of Coleman's remaining businesses have a very sharp strategic focus and are well positioned to support our goal of growth through innovation and globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation ," Levin said. 1998 Outlook - New Product Introductions Expected to Promote Growth "Having taken these steps, we can now focus on growing the business with our improved product mix and a number of innovative new items slated for introduction throughout the Company in 1998," Levin added. Coleman has gotten an excellent response to a select group of products recently released to the trade and expects to introduce a broad array of new products to drive growth in the coming year. New products include: - A PowerMax series of stoves and lanterns using Coleman's unique lightweight, high-efficiency fuel system with recyclable re·cy·cle tr.v. re·cy·cled, re·cy·cling, re·cy·cles 1. To put or pass through a cycle again, as for further treatment. 2. To start a different cycle in. 3. a. canisters. - A new collapsible, recyclable, water-tight cooler that will expand distribution for Coleman in grocery, drug and convenience-store channels. - Coleman For Kids - a series of camping products designed for children. - New lightweight Powermate generator products and a consumer-friendly vertical compressor compressor, machine that decreases the volume of air or other gas by the application of pressure. Compressor types range from the simple hand pump and the piston-equipped compressor used to inflate tires to machines that use a rotating, bladed element to achieve . - A battery-powered Pack-Away lantern lantern held by Judas, leading officers to Christ. [N.T.: John 18:3] See : Passion of Christ . - Timberland travel bags from Eastpak. - New products - including barbecues, electric lights and a selection of soft goods soft goods pl.n. See dry goods. Noun 1. soft goods - textiles or clothing and related merchandise drygoods commodity, trade good, good - articles of commerce - with a new logo, packaging and advertising to support the rejuvenation Rejuvenation Aeson in extreme old age, restored to youth by Medea. [Rom. Myth.: LLEI, I: 322] apples of perpetual youth by tasting the golden apples kept by Idhunn, the gods preserved their youth. [Scand. Myth. of the Campingaz brand. - A Pro-Lock Cartridge Tool System, which includes a multi-plier tool and cartridges, for outdoor activities such as camping, hunting and fishing. Also, Camp Coleman, which opened its first retail outlet retail outlet n → punto de venta retail outlet n → point m de vente retail outlet retail n → store last November, will be expanded in 1998. This retail outlet chain will provide a distribution channel for overstocked or discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: merchandise, thereby benefiting the Company's working capital position. Coleman, the world's leading manufacturer and marketer of outdoor recreational products, is traded as CLN on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . It manufactures and distributes widely diversified product lines for camping, leisure time and hardware markets in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Canada and more than 100 other countries. Information in this press release includes 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. All such forward-looking statements involve risks and uncertainties. In addition to factors that are described in the Company's SEC filings, the following factors could cause actual results to differ materially from those expressed in the forward-looking statements: (i) unanticipated costs or delays in developing new products, (ii) a decrease in the public's interest in camping and related activities, (iii) economic softness in Japan, Korea and other Asian countries, (iv) weather conditions which are adverse to the specific businesses of the Company, and (v) significant adverse market or economic conditions which negatively affect demand for the Company's products. The Company assumes no responsibility to update the forward-looking information contained herein. -0-
THE COLEMAN COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Year
Ended December 31, Ended December 31,
----------------------------------------------
1997 1996 1997 1996
----------------------------------------------
Net revenues $ 222,882 $ 224,395 $ 1,154,294 $1,220,216
Cost of sales 161,740 191,074 840,330 928,497
---------- --------- --------- --------
Gross profit 61,142 33,321 313,964 291,719
Selling, general and
administrative expenses 61,172 76,715 266,283 291,669
Interest expense, net 9,258 9,932 40,852 38,727
Amortization of goodwill
and deferred charges 2,684 2,508 11,338 10,473
Other expense, net 367 (84) 1,867 1,151
Loss before income taxes,
minority interest,
and ------- ------ ------ -------
extraordinary item (12,339) (55,750) (6,376) (50,301)
Income tax benefit (7,314) (19,879) (5,227) (10,927)
Minority interest
in earnings of
Campingaz 251 2 1,386 1,872
---------- --------- --------- --------
Loss before
extraordinary item (5,276) (35,873) (2,535) (41,246)
Extraordinary loss
on early
extinguishment
of debt, net of
income tax benefit -- -- -- (647)
--------- -------- -------- --------
Net loss $ (5,276) $ (35,873) $ (2,535) $(41,893)
========== ========= ========= ========
Basic loss per share:
Loss before
extraordinary item $ (0.10) $ (0.67) $ (0.05) $ (0.78)
Extraordinary item -- -- -- (0.01)
---------- --------- --------- --------
Net loss $ (0.10) $ (0.67) $ (0.05) $ (0.79)
========== ========= ========= ========
Diluted loss per share:
Loss before
extraordinary item $ (0.10) $ (0.67) $ (0.05) $ (0.78)
Extraordinary item -- -- -- (0.01)
---------- --------- --------- --------
Net loss $ (0.10) $ (0.67) $ (0.05) $ (0.79)
========== ========= ========= ========
Weighted average common
shares outstanding:
Basic 53,425 53,219 53,344 53,197
========== ========= ========= ========
Dilutive 53,425 53,219 53,344 53,197
=========== ========= ========= ========
CONTACT: Press Contact: Investor Relations Investor relations The process by which the corporation communicates with its investors. Contact: Mary Ann Dunnell Marc R. Shiffman (212) 484-7797 (212) 527-4557 |
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