Coleman Reports Record Revenues and Small Loss Before Restructuring and Other Charges.GOLDEN, Colo.--(BUSINESS WIRE)--Oct. 30, 1996--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., today reported record revenues for the third quarter and first nine months of 1996, and a small loss for the quarter before restructuring and other charges. Net revenues for the quarter ending September 30, 1996, were $269.6 million, a 27 percent increase from $211.8 million in 1995. In September, the company had announced it would take an after tax charge of approximately $50 million for restructuring and other purposes. During the quarter, the company recorded $44.5 million of such charges, which primarily relate to the restructuring of its worldwide recreation business, reflecting the integration of its Camping Gaz Camping Gaz is a brand of compressed butane[1] gas designed for use as a fuel whilst camping and caravanning. The fuel gas is compressed to a liquid and sold in characteristically blue metal containers. It was first introduced in the mid 1950s by The Coleman Company, Inc. acquisition earlier this year, its withdrawal from the entry level electric pressure washer A pressure washer is a mechanical device that uses high-pressure water to remove mold, grime, dust mud and dirt from surfaces and objects such as buildings, vehicles and concrete road surfaces. market and pending 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. matters. The balance of the charge will be taken in the fourth quarter. Despite strong revenues, third quarter results were soft due to a weather-related weak North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. camping season, decreased consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. in Japan and the anticipated dilution effect of the recent Camping Gaz acquisition. Before the charges, third quarter operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. were $7.9 million compared to $23.2 million in the like period last year and the loss was $4.0 million or 7 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. compared to a profit before extraordinary charge of $9.1 million or 17 cents per share in 1995. Last year's third quarter included an extraordinary charge of $0.8 million, or 1 cent per share, related to the write-off of deferred financing costs. After the charges, the third quarter net loss was $48.5 million, or 91 cents per share, compared to a profit of $8.3 million, or 16 cents per share, in 1995 after the extraordinary item. For the first nine months of 1996, revenues were $995.8 million, a 33 percent gain over the $747.1 million reported in 1995. Before the charges, operating profits were $100.8 million, versus $105.8 million, in the first three quarters of last year and income before extraordinary charge was $39.1 million, or 73 cents per share compared to $49.9 million, or 93 cents per share in the nine months last year. After the charges, the net loss for the first three quarters was $6.0 million, or 11 cents per share, compared to a profit of $49.1 million, or 92 cents per share, in 1995. The third quarter of 1995 includes an extraordinary charge of $0.8 million, or 1 cent per share, and the second quarter of 1996 includes an extraordinary charge of $0.6 million, or 1 cent per share, both related to the write-off of deferred financing costs. The company also announced that late last week Black & Decker initiated litigation against Coleman and others alleging infringement of a newly issued patent for certain lighting products. Coleman has suspended customer shipments of coil flashlights
Flashlights is the third record by the Atlanta-based independent rock band Y-O-U. while it assesses the validity of the patent and its potential effect. As a result the fourth quarter could see a 5 to 10 cent per share negative effect on net earnings. Michael Hammes, chairman and chief executive officer said, "These operating results are in line with the projections that we made in September. Although we had disappointments in North American Recreation and Japan, recreation product revenues in the quarter grew due to the positive impact of new products, 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" growth at Eastpak and the contribution of Camping Gaz. Our Hardware/Home Center business increased on the strength of its electric generator product line. "Coleman Safety & Security Products continued to post impressive results. Consumer response to the newly launched Sheltra product line of smoke alarms and carbon monoxide carbon monoxide, chemical compound, CO, a colorless, odorless, tasteless, extremely poisonous gas that is less dense than air under ordinary conditions. It is very slightly soluble in water and burns in air with a characteristic blue flame, producing carbon dioxide; detectors has exceeded expectations." He continued, "Geographically, 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. revenues were up 17 percent to $188.6 million and International grew 61 percent to $81.0 million. For the first nine months, revenues in North America increased 19 percent to $669.6 million and International grew 75 percent to $326.2 million." Hammes concluded, "In the fourth quarter, we will take the remaining balance of the restructuring and other charges and any additional charges resulting from the coil flashlight issue. These items and the Camping Gaz dilution aside, we expect to conclude the year with increased revenues and earnings in line with our historic pattern." Coleman is traded as 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 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 diversified (di·verˑ·s product lines for camping, leisure time, hardware/home center and home safety and security 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. -0- Forward-Looking Information: Information in this press release which is not historical 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 Act of 1995. All of such forward-looking statements involve risks and uncertainties including, without limitation, the potential for the patent issues with Black & Decker to result in inventory writeoffs or negative earnings impacts greater than anticipated, and the possibility that negative external factors like the adverse weather in North America and the consumer spending decline in Japan will continue to impact the business. -0-
The Coleman Company, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In Thousands, Except per Share Data)
(Unaudited)
Three Months
Ended September 30
1996 1995
Net revenues $269,607 $211,817
(Loss) earnings
before extraordinary item $(48,458)(a) $ 9,056
Extraordinary item (b) $ -- $ (787)
Net (loss) earnings $(48,458)(a) $ 8,269
(Loss) earnings per common share:
(Loss) earnings before
extraordinary item $ (.91)(a) $ .17(c)
Extraordinary item $ -- $ (.01)(c)
Net (loss) earnings $ (.91)(a) $ .16(c)
Weighted average
common shares outstanding 53,214 53,147(c)
Nine Months
Ended September 30
1996 1995
Net revenues $995,821 $747,122
(Loss) earnings before
extraordinary item $ (5,373)(a) $ 49,897
Extraordinary item (b) $ (647) $ (787)
Net (loss) earnings $( 6,020)(a) $ 49,110
(Loss) earnings per common share:
(Loss) earnings
before extraordinary item $ (.10)(a) $ .93(c)
Extraordinary item $ (.01) $ (.01)(c)
Net (loss) earnings $ (.11)(a) $ .92(c)
Weighted average
common shares outstanding 53,190 53,249(c)
(a) Includes after tax restructuring and other charges of $44,495 or
$.84 per common share
(b) Related to renegotiated credit agreements
(c) Adjusted to reflect a two-for-one stock split paid in July 1996
CONTACT: Coleman Co. Charles McIlwaine, 303/202-2446 |
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