Concord Camera Corp. Announces Record Results for Third Quarter and Nine Months Ended April 1, 2000.
Business Editors
HOLLYWOOD, Fla.--(BUSINESS WIRE)--April 25, 2000--Concord Camera
Corp. ("Concord") (NASDAQ National Market: LENS) today reported
financial results for the third fiscal quarter and nine months ended
April 1, 2000 (See attached tables).
Net sales for the quarter ended April 1, 2000, were $32,717,000, a
new record, up $11,219,000 or 52.2% compared to the third quarter of
the prior year. Net income for the third quarter ended April 1, 2000
increased to $2,116,000 or $0.09 per diluted share, a new record, as
compared to net income of $150,000 or $0.01 per diluted share for the
third quarter of the prior year. The profit increase for this quarter
as compared to the prior year's quarter was primarily the result of
more favorable absorption of manufacturing overhead and labor
utilization which resulted from increased sales and manufacturing
volume and efficiencies. These factors also contributed to the
increased gross margin of 25.6% for the third quarter compared to
21.0% for the third quarter of the prior year.
Net sales for the nine months ended April 1, 2000, were
$118,477,000, a new record, up $34,872,000, or 41.7%, compared to net
sales of $83,605,000 for the comparable prior year period. Net income
for the nine months ended April 1, 2000 increased $5,594,000, or 113%,
to $10,530,000 or $0.43 per diluted share, a new record, as compared
to net income of $4,936,000, or $0.21 per diluted share for the
comparable prior year period. Gross margins for the nine months ended
April 1, 2000 increased to 27.1% compared to 25.0% for the comparable
period of the prior year.
Commenting on the financial results, Ira B. Lampert, Concord's
Chairman, Chief Executive Officer and President, said, "Concord posted
higher revenues and net income for the nine months ended April 1, 2000
than during all of the prior fiscal year. Our OEM business continues
to gain strength as witnessed by the two significant OEM agreements we
announced during the third quarter from world class leaders in the
photographic industry. Our third quarter revenue included the first
shipments of the Kodak APS cameras and we anticipate this product type
to be a large generator of revenue for Concord in the future. Our
retail sales and distribution business included the first shipments of
product from our new Keystonecameragraphics.com division located just
outside of Seattle, Washington. Shipments of the single-use instant
camera and the reloadable manual instant camera continue to be
strong." Discussing the third quarter, Mr. Lampert continued, "The
gross profit percentage increased 4.6% to 25.6% in the third quarter
of this year as compared to the prior year as a result of increased
sales and more favorable absorption of manufacturing overhead and
labor utilization. With the continued growth in our OEM and retail
sales and distribution businesses and the resulting increases in
sales, we were able to profitably realize manufacturing efficiencies
that resulted from these increased volumes. Product development costs
associated with new products were $1,179,000 and $1,149,000 for the
quarters ended April 1, 2000 and April 3, 1999, respectively."
Selling, general and administrative expenses for the nine months
ended April 1, 2000 as a percentage of sales were 15.9%, which is in
line with the prior year's percentage of sales. Selling, general and
administrative expenses were $18,893,000, compared to $13,209,000 for
the prior year period, an increase of 43.0%. Selling expenses for the
nine months ended April 1, 2000, were $7,819,000, compared to
$6,047,000 for the prior year period, an increase of 29.3%. General
and administrative expenses for the nine months ended April 1, 2000,
were $11,074,000, compared to $7,162,000 for the prior year period, an
increase of 54.6%. The increased expenses compared to the prior year
were primarily the result of increased costs associated with
substantially higher sales and a larger and growing business. Interest
expenses and other income for the nine months ended April 1, 2000,
were $2,525,000 and $775,000 respectively, as compared to $2,592,000
and $256,000, respectively, for the prior year period.
Potential New Products and Relationships
The Company is negotiating with existing OEM customers and
potential OEM customers for the development, design and production of
a number of new products, including cameras and image capture devices
incorporating digital, wireless connectivity and communication
technologies. If negotiations and development efforts are successfully
concluded, certain new products would be introduced in late Fiscal
2000 and Fiscal 2001, impacting results in Fiscal 2001.
Concord's Balance Sheet Remains Strong
Mr. Lampert continued, "Concord completed the third quarter with a
healthy balance sheet. Working capital was $45.8 million at the end of
the third quarter compared with $43.3 million at the prior quarter-end
and $37.4 million at July 3, 1999. As of April 1, 2000, we had only
$16.5 million in long-term debt and cash on hand of $32.0 million.
Cash flow provided by operating activities for the nine months ended
April 1, 2000 was approximately $11.0 million and EBITDA was $16.9
million. We have prepared Concord for the growth we are now
experiencing. We continue to invest in human resources, technologies,
manufacturing facilities, capital equipment and product development to
support ongoing growth and our transition to a technology based OEM."
Fiscal 2000
"We anticipate sales for Fiscal 2000 to be approximately $165
million, an increase of approximately $47 million over Fiscal 1999
sales of $118 million or 40% from Fiscal 1999. While many factors
outside the control of the Company can affect sales and profitability,
our expectation is that net income for Fiscal 2000 will be in the
range of $13.5 million to $14.0 million, or approximately $.56 to $.58
per diluted share, or 67% to 73% over Fiscal 1999. The Company should
continue to generate positive cash flow. The Company is positioned to
continue its growth in Fiscal 2001 and beyond. This growth will be
fueled by the Company's technical prowess and capabilities in the
development, design and low-cost manufacture of innovative electro,
optical, mechanical devices and apparatus, initially in digital image
capture and transmission for large branded international OEM's."
Investor Conference Call
Ira B. Lampert, Chairman, Chief Executive Officer and President,
will host a conference call today, Tuesday, April 25, 2000 at 1:00
P.M. Eastern Time, to discuss Fiscal 2000 Third Quarter and Nine Month
results. To participate in the live conference call with management,
please call (212) 231-6023 five to ten minutes prior to the start
time.
If you are unable to participate in the live conference call with
management or want to listen to a replay, "Postview" will be available
beginning, Tuesday, April 25, 2000 from 3:00 P.M. - 6:00 P.M. Eastern
Time, or Wednesday, April 26, 2000 from 8:00 A.M. - 6:00 P.M. Eastern
Time. The Postview dial-in number is (800) 633-8284 and the
reservation number is 15010465.
This press release contains forward-looking statements that
involve numerous risks and uncertainties. The Company's actual results
could differ materially from those anticipated in such forward-looking
statements as a result of certain factors, including those set forth
in the Company's filings with the Securities & Exchange Commission,
some of which are summarized under the caption "Risk Factors" in the
Company's Form 10-K Annual Report for the fiscal year ended July 3,
1999 and updated in subsequently filed reports. In particular,
expected sales increases could be adversely affected by production
difficulties or economic conditions adversely affecting the market for
the Company's products. To obtain the results expected from the
introduction of new products will require timely completion of
development, successful ramp up of full-scale production on a timely
basis and consumer acceptance of the products. In addition, the
Company's potential new OEM relationships will require successful
conclusion of negotiations, continued ability of the Company to meet
quality and performance tests and successful implementation of
production at greatly increased volumes, as to all of which there can
be no assurance.
Concord Camera Corp. is a global developer, designer, manufacturer
and marketer of high quality, low cost, digital, instant, Advanced
Photo System (APS), 35mm and 110mm format cameras and 35mm, APS, and
instant format single-use cameras. Concord markets its cameras under
the tradenames CONCORD(R), KEYSTONE(R), GOLDLINE(R), LE CLIC(R),
APEX(R) and ARGUS(R). A licensing agreement with the world famous
Crayola(R) brand name begun in the United States in 1995 has been
expanded to include Canada, the United Kingdom, France, Australia and
New Zealand. Today, Concord is one of the world's leaders in the
single-use camera category, the fastest growing segment of the camera
market, and the largest producer of single-use cameras in the world in
private label, corporate premium and original equipment manufacturer
segments of the industry. The Company sells and markets its camera
products worldwide through direct sales offices in the United States,
Canada, Germany, Hong Kong, United Kingdom, France and through
independent sales agents.
-0-
*T
Concord Camera Corp.
Consolidated Statements of Income
(unaudited)
For the quarter ended
April 1, April 3,
2000 1999
---------------- -----------------
Net sales $32,717,048 $21,497,763
Cost of products sold 24,340,818 16,987,800
---------------- -----------------
Gross profit 8,376,230 4,509,963
Selling expenses 2,308,566 1,454,926
General and administrative expenses 3,536,665 2,187,840
Interest expense 783,537 836,769
Other (income) expense, net (548,000) (123,944)
---------------- -----------------
Income before income taxes 2,295,462 154,372
Provision for income taxes 179,680 4,142
---------------- -----------------
Net income $2,115,782 $150,230
================ =================
Basic earnings per share $0.10 $0.01
================ =================
Diluted earnings per share $0.09 $0.01
================ =================
Weighted average shares
outstanding - basic 22,009,870 21,757,754
================ =================
Weighted average shares
outstanding - diluted 24,530,756 23,395,028
================ =================
*T
Note: Reported earnings per share amounts have been adjusted to
reflect a two-for-one stock split of Common Stock payable on April 14,
2000 to stockholders of record as of March 27, 2000.
Concord Camera Corp.
Consolidated Statements of Income
(unaudited)
For the nine months ended
April 1, April 3,
2000 1999
--------------- -----------------
Net sales $118,477,347 $83,605,175
Cost of products sold 86,388,923 62,713,625
--------------- -----------------
Gross profit 32,088,424 20,891,550
Selling expenses 7,819,386 6,046,959
General and administrative expenses 11,073,944 7,162,383
Interest expense 2,525,206 2,592,477
Other (income) expense, net (775,398) (255,866)
--------------- -----------------
Income before income taxes 11,445,286 5,345,597
Provision for income taxes 915,680 409,142
--------------- -----------------
Net income $10,529,606 $4,936,455
=============== =================
Basic earnings per share $0.48 $0.22
=============== =================
Diluted earnings per share $0.43 $0.21
=============== =================
Weighted average shares
outstanding - basic 21,921,176 21,980,790
=============== =================
Weighted average shares
outstanding - diluted 24,281,402 23,670,842
=============== =================
Note: Reported earnings per share amounts have been adjusted to
reflect a two-for-one stock split of Common Stock payable on April 14,
2000 to stockholders of record as of March 27, 2000.
Concord Camera Corp.
Consolidated Balance Sheets
===========================
(unaudited)
April 1, July 3,
2000 1999
------------- ------------
Assets:
Cash $32,014,947 $30,706,761
Accounts receivable, net 19,134,289 18,272,329
Inventories 27,521,884 20,620,556
Prepaid expenses and other current assets 3,177,677 2,404,400
------------- ------------
Total current assets 81,848,797 72,004,046
Plant and equipment, net 22,406,255 18,871,300
Goodwill, net 3,752,155 291,764
Other assets 4,659,654 5,480,342
------------- ------------
Total assets $112,666,861 $96,647,452
============= ============
Liabilities and Stockholders' Equity:
Liabilities:
Short-term debt $6,796,250 $8,088,901
Current portion of long-term debt - 2,100,000
Current obligations under capital leases 1,660,722 2,073,492
Accounts payable 17,095,257 16,224,538
Accrued expenses 8,138,638 4,985,789
Income taxes payable 1,810,549 896,142
Other current liabilities 557,045 188,058
------------- ------------
Total current liabilities 36,058,461 34,556,920
Deferred income taxes 795,055 792,358
Long-term debt 74,336 -
Senior notes payable 14,850,000 14,850,000
Obligations under capital leases 1,561,129 2,623,080
Other long-term liabilities 4,105,348 1,129,569
------------- ------------
Total liabilities 57,444,329 53,951,927
------------- ------------
Stockholders' equity:
Common stock, no par value,
40,000,000 shares
authorized; 23,657,234 and
23,259,184 issued
as of April 1, 2000 and July 3,
1999, respectively 41,860,955 41,117,335
Paid-in capital 1,069,608 1,033,553
Retained earnings 16,616,315 6,086,691
Notes receivable arising from
common stock purchase agreements (187,208) (2,163,542)
------------- ------------
59,359,670 46,074,037
Less: treasury stock, at cost;
1,542,526 and 1,351,726 shares, (4,137,138) (3,378,512)
respectively ------------ -------------
Total stockholders' equity 55,222,532 42,695,525
------------- ------------
Total liabilities and
stockholders' equity $112,666,861 $96,647,452
============= ============
*T
--30--bk/ny*
CONTACT: Concord Camera Corp.
Harlan I. Press, Controller
954/331-4200
or
LENS' INVESTOR RELATIONS COUNSEL:
The Equity Group, Inc.
Robert Goldstein, 212/371-8660
Tom Ennis, 212/836-9607
FAX ON DEMAND, 888/329-2802
KEYWORD: FLORIDA
INDUSTRY KEYWORD: MANUFACTURING RETAIL EARNINGS
COPYRIGHT 2000 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
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